When it comes to protecting the financial future of your family in your absence, term insurance is the preferred life insurance product in the market. Typically, the policy is known to provide a lump sum amount to the beneficiaries in case of the policyholder’s death. The amount received can be used by the dependents as and when needed.
You can buy term insurance in India through an online or offline process. The process of buying term insurance offline requires you to visit the insurer in person, fill out the application form, submit the documents for verification, and wait until you hear approval from the insurer. This certainly is a time-consuming process. So, to avoid the hassle of visiting the insurer in person and save time in due course as term insurance plans are easier bought online.
Below we have discussed the details on how you can buy term insurance online in India. Let us begin by understanding the benefits of buying term plans online.
Some of the key benefits of buying term insurance online are enlisted below -
Ideally, term insurance is the most affordable life insurance product. However, you can get the policy at a much cheaper rate when bought online. Since there is no agent involved in the process, it eliminates the commission fees of the agent that are otherwise added to your premium amount.
Buying term insurance online is quick and hassle-free. The premium payment process is also secure. Hence, you can buy the policy at any time and anywhere.
You get to compare term insurance plans online before buying the policy. That way, you can evaluate the different features offered by various insurers in the market and choose a term policy that fulfils your needs.
Buying term insurance online is more convenient than having to visit the insurer in person.
The features of buying term insurance online in India are as follows -
Term insurance is the most affordable life insurance product in India.
It comes with a low entry age that is 18 years old.
The policy has a long tenure. You can stay covered for up to 50 years with a term insurance plan.
You can extend the scope of the policy with rider benefits such as critical illness benefit, the return of premium benefit, accidental death benefit, and so on.
The policy also provides various tax benefits to the insured.
Ideally, term insurance offers death benefits only. But with the return of premium variant, the insurer will repay the premiums paid if you survive the tenure. The amount received acts like survival benefits.
If you are still not convinced, keep reading to know why term insurance is important.
The reasons why term insurance is an essential life insurance product are as follows -
Let us assume that you are a sole earner in the family. Have you thought about how your dependents will manage the finances if anything were to happen to you? Investing in a term insurance plan will ensure that your loved ones are financially protected in the most unfortunate life circumstances.
Life-threatening diseases can be acquired at any point in life. Having a term insurance plan with the critical illness add-on benefit will ensure that you can seek quality medical treatments if you were to suffer from any severe health condition in the future. The policy pays a lump sum amount from the coverage that can be used to take care of the said expenses.
The reason to invest in term insurance is the tax benefits it offers. The premiums paid towards the policy can be claimed for tax deductions under Section 80C of the old tax regime. The death benefits received by the beneficiaries are tax-free under Section 10(10D). Moreover, if you have critical illness cover on your term plan, you can claim additional deduction under Section 80D of the Income Tax Act.
In order to buy the most ideal term insurance plan available in the market, you have to consider a few things -
The claim settlement ratio is the ratio of the total number of claims settled by the insurer against the total number of claims received by them in the said financial year. Every year, the Insurance Regulatory and Development Authority of India (IRDAI) assesses this value and releases the results online.
Choosing an insurer with a consistently excellent claim settlement ratio will ensure that they follow a robust and instant claim settlement process. In other words, your dependents will not have to go through any hassle to receive the death benefits from the insurer.
Comparing several term insurance plans will allow you to gain insights into various features and benefits of policies available in the market, the premiums charged, coverage of the plan, exclusions, and more. You can use a term insurance calculator to determine the premiums charged on the chosen coverage and tenure. While you are at it, also consider answering the following questions -
What is your current financial situation?
What are your monthly expenses?
What are your future financial goals?
The answers to these questions will encourage you to invest in a term insurance plan that is affordable and secures your loved ones financially.
Having a reliable and trustworthy insurer is necessary when buying term insurance in India. Reviewing the existing customer experience of the insurer you have chosen will give you insights on how they function, what services they offer, the benefits and deals on the plans available, their customer service portal reliability, and more.
If it helps, take a look at the persistency ratio of the insurer that is provided by the IRDAI annually. The persistency ratio enables you to judge the insurer’s service quotient - that is the customer’s satisfaction and loyalty towards the brand.
Just follow the steps below to buy term insurance online.
Visit the insurer online and go to the term insurance section.
Fill the application form with the requested details.
Choose policy coverage and rider benefits.
Review the policy details.
Pay the premiums online.
The insurer will assess your application and issue the policy in no time.
Term insurance is the most reliable and affordable life insurance product to secure your family’s financial future. Buying the term policy online is beneficial to you in several ways, as explained above.
The term insurance plans available on Finserv MARKETS offer extensive coverage at a nominal price, swift claim settlement process, hassle-free online buying/renewal process, tax benefits, rider benefits, and so much more.
You can read more on term insurance benefits at Finserv MARKETS and expand your knowledge on the policy terms and conditions.