5 Top Reasons to Buy Online Term Insurance in India
Buying things online nowadays has become so natural that even youngsters can purchase their cherished things in a flash. Moreover, items accessible online are a lot less expensive than their offline partners. Things that we used to buy from the retail locations after many dealings are currently accessible on the web and at a much lower cost. Indeed, even our financial items such as term insurance policy can now be easily accessible for investment on various online platforms like iiflinsurance.com. Presently we can look at different investment options under one roof, compare them and buy them at the same time if they satisfy our necessities.
Term insurance policies are pure protection plans known for offering high life cover at low premiums, a host of customizable features, benefits, and a long-term coverage option. In addition, term insurance is affordable because it does not have any investment component attached to it and comprises a few charges like administration and mortality charges. So, in case the policyholder survives the policy term, he or she does not receive anything.
Why should you buy an Online Term Plan?
As term plans are less expensive than various life insurance products, let’s understand why you should opt to buy online term plans.
- Comfort and Convenience: As the name suggests, an online term plan can be purchased online. You don’t need to meet an insurance agent to buy an online term plan. You can browse various sites related to term insurance from any place at any time and buy the right one based on your budget and requirements within minutes. You can also compare various term plans available in the market to check their premiums, sum assured, and benefits. Further, you can likewise modify the online term plan according to your necessities with no trouble and from available features, for example, different plan options, plan tenure, various premium payment options such as yearly, half-yearly, quarterly, and monthly along with premium payment terms like single, regular or limited. Whenever you have done customizing the plan according to your prerequisites, you can fill the proposal form online, make the payment through the secured payment gateway. If a medical test is required, you can pick a convenient slot from the choices accessible.
- Less Expensive: Online Term Plans are up to 25% less expensive than their offline counterparts. Indeed, you read it right, term protection plans are less expensive than different types of term insurance policies such as money-back plans, whole life insurance, and endowment plans. Let’s understand this through an example: In case you are a 30-year-old non-smoker male, then, at that point, the offline version of an Rs. 1 Crore term insurance plan will cost you Rs. 18,000 per annum. And the same term plan online will cost you Rs. 11,000 per annum. Along these lines, you will save around Rs. 7000 per annum.
- Contribute Your Savings: The money you save from your term insurance premium can be utilized to invest in other investment options like a ULIP, Equity Mutual Fund, or even a fixed deposit. For instance, from the above example, if you somehow managed to invest Rs. 7,000 for 30 years, then you would be saving around Rs. 2,10,000. If this amount is invested in an equity mutual fund that gives a normal return of 10%, then, at the end of the 30th year of the policy, you will get around Rs. 9-10 lakhs from your yearly investment.
- Comparing Online: The online term insurance purchasing process opens up an array of features for you apart from the savings bit. And one of the important ones is comparing various term insurance policies online. Insurance aggregators like iifinsurance.com let you compare different term plans from the top insurers on various parameters like premium, sum assured, policy term, and features based on your eligibility criteria and requirements.
- Ascertain Your Worth: It’s great that you decided to buy a term insurance plan to secure your family’s future financially in your absence. However, before deciding, you need to decide on the right coverage amount you require, which you can find out through Human Life Value Calculator (HLV), available online for free.
An online HLV calculator assists you with computing the specific coverage amount that you require. You should simply fill in the necessary information like:
- Current Monthly/Annual Income
- Current Monthly/Annual Expenses
- Pending Loans
- Present Value of your investments
- Remaining years of your service
Once you give all the details, the online calculator will show your present. For example, if the HLV calculator shows that your net worth is Rs 1 crore, you should purchase an online term plan with a sum assured of Rs 1.25 crores to ensure a financially secure future for your loved ones in your absence.
Term insurance is indeed a necessary financial tool for every individual. However, the online version of term insurance is much cheaper than the offline version and provides a host of benefits and features. Therefore, if you want to buy term insurance online, don’t delay and visit iiflinsurance.com to make the right buying decision.