Buying a life insurance policy is one of the wise decisions you can make for the well-being of your family and their overall financial security. To buy an insurance policy, there are basically two ways to do it – online and offline. The latter option is when either you are approached by an insurance agent and you buy the policy or you actively do your research and buy a policy by going at your selected insurer to buy the same. Whereas, in the former mode of online, you buy your preferred insurance policy from either the insurance company’s app or website. The selection of plan, finalization of details and final payment is all done online or digitally.
Let’s understand why online is the best way going forward and the nitty-gritty of it, in this post.
What are the benefits of Buying an Insurance Policy online?
The following-mentioned are the various advantages of buying an insurance policy online, viz.:
It’s easy; comfort comes along
Buying things online is the easiest way that there is. And when it is an insurance policy, it is even more beneficial because the energy taken up by going to the office for multiple sessions is totally zeroed down. Everything from comparing policies, selecting sum assured, choosing premium payment mode to medicals, and final payment can be done online – without going anywhere.
Of course, when most things are present online, from buying your favourite clothes to getting your hands on those finger-licking delicacies, why should you have to graze your shoes all the way to the insurer’s office to secure the financial well-being of your loved ones?
It costs less
The cost of maintaining a field-force is always higher for insurance companies. When it comes to selling a policy offline, the provider needs to maintain the constant connect with the client or a potential client. For this, there must be enough work force and then these agents must be available for the maximum duration on any given day which is a difficult task. Thus, when you choose the online mode, the cost definitely goes down and then this benefits gets passed on to you in the form of cheaper premiums.
Many companies like Max Life Insurance and HDFC Life give 5% discount on premiums whereas LIC offers 1% cashback on online life insurance premium payments. So when it comes to choosing between offline and online mode for buying insurance, it’s cheaper when taken the latter route.
Going online always saves time
Buying an insurance policy can take days – sometimes even weeks. But with the digital window open, the whole process can be wrapped up in a day or two! Yes, that’s true. If all your documents are in place and the medical is also taken up via video or tele call, chances are that you’ll receive your policy document in the next few days only.
Comparison becomes easy
There is no need to visit every insurance company’s office separately and get their policy brochures for comparison. With the online option, you can easily get every company’s term plan details within a few clicks.
Let’s take a look at the following term plans by some of the insurers at the forefront:
|Name of the Plan||Entry Age||Max. Maturity Age||Claim Paid Ratio||Main Features|
|LIC New Tech Term Plan||18 – 65 years||80 years||98.74%||Death benefit; accident benefit rider, limited premium pay option|
|Max Life Smart Secure Plus||18 – 60 years||85 years||99.51%*||Covers COVID-19 claims; Up to Rs 1 crore payout of Critical Illness (64 illnesses covered); Permanent Total Disability Rider; Dedicated claims relationship officer; Claims usually paid in 1 day; Return of Premium option available|
|PNB Metlife Mera Term Plan Plus||18-50 years||80 years||97.33%||Spouse covered, Survival benefits and return of premium option at a higher premium|
|Aegon iTerm Comfort||18-65 years||70 years||99.37%||Accidental death & critical illness rider; premium payment term same as policy term|
|HDFC Click 2 Protect Super||18 – 65 years||85 years||98.66%||Return of Premium, early exit, etc.|
*for FY 2022-23
After analyzing the comparison table of the 5 online term plans available in the market, we can deduce the following:
- Entry age has to be a minimum of 18 years
- Return of premium option available in HDFC Click 2 Protect Super, Max Life Smart Secure Plus and PNB MetLife Mera Term Plan Plus
- Maximum number of critical illnesses covered are 64 – offered by the Max Life Insurance term plan (also offers Covid-19 claims)
- Highest claims paid ratio is of 99.51% which is again of Max Life
Various online services – on your fingertips
Taking the online option offers you more than mere buying of an insurance policy. For example, you can do a thorough comparison of any or all of the term plans available in the market. All 24 life insurance providers have their websites live and thus, you can check the basic as well as the intricate features and benefits of a term plan of your choice – at no cost. Additionally, you can do the following online:
- Tracking application
- Calculating premiums
- Renewing policy
- Payment of premium via netbanking, UPI, credit or debit cards
- Placing claims
- Updating nominee details
- Updating correspondence address
24×7 Customer Support
Gone are the days of insurance companies closing their doors for you every Sunday and every day after office hours. If you have bought your insurance policy online, there are companies like Max Life, HDFC Life, Tata AIA etc. that provides dedicated relationship officers for services like claim settlement, updating policy, renewal, etc. Also, you can enjoy 24×7 access to customer support via your insurer’s website and mobile app.
Cash and cheque payments are slowly becoming a thing of the past. There have been many cons that outweigh the pros, like standing in long queues for payment, cheque bounce, demand draft being lost and more. These can easily be tackled when you choose to pay your premiums online using any of these modes – UPI, internet banking, credit card/debit card and digital wallets etc.
With all these rich benefits, we’re sure that your journey of safeguarding your family and loved ones financially will become richer and more comprehensive.
Why Buy Term Plan Online: FAQs
The benefits of buying an insurance policy online include: time saving, cheaper premiums, discounts on online purchase, easy comparison and the ease.
Yes. Most of the companies offer some kind of discount on premiums when you buy their term plan online. So yes, buying an insurance plan online is definitely cheaper.
Some of the best term plan in India include: Max Smart Secure Plus Plan, ICICI Pru iProtect Smart Plan, HDFC life Click 2 Protect Plan, Tata AIA Sampoorna Raksha Supreme and Bajaj Allianz Life eTouch term plan.