Why Purchase Term Policy Online?
With growing inflation and living costs, it is important to have a financial plan in place that helps you manage your money better and also prepares you for the future. An important tool of financial planning is an insurance policy. Insurance policies provide financial protection from any unforeseen event that might lead to loss or damage to property or life. There are several options when it comes to insurance policies, one of them being Term Insurance.
Why Buy Term Insurance Online?
Before you make a decision to purchase a term insurance policy, it is important to know what it is. One of the most popular and simple forms of insurance, term insurance provides financial compensation to one’s family in the case of an untimely demise of the insured. An individual can avail this policy by paying an insurance premium for a period of 10 to 30 years. If the insured dies within this period, their family or beneficiaries receive financial compensation.
Buying a term insurance policy online is the process in which an individual can purchase a term policy without human intervention. There is no need to select an insurance agent or visit branch offices of insurance companies to buy the insurance policy. Regardless if it is offline or online, the policy remains the same. The insured gets the same coverage and benefits of the insurance by purchasing the policy online. Although purchasing term insurance online offers several benefits to an individual.
Benefits of Buying Term Insurance Online
Here are the benefits of purchasing a term insurance policy online:
One of the primary benefits of making an online term insurance purchase is the lower costs and premiums. This is possible due to the absence of intermediaries and reduced physical operational costs. This helps the insurance companies pass on the monetary benefits to the individuals availing the insurance policy online.
Aid in decision making
While purchasing term insurance online, customers can make better decisions due to the availability of information. An individual can do their own research and can compare several policies available in the market to find the best term insurance plan. Additionally, it helps raise awareness and knowledge about the importance and benefits of insurance.
Time is considered to be as important as money. Any service that would help a person save time is a valuable one. Purchasing a term insurance plan online helps save a significant amount of time and is convenient, quick and easy. The lack of paperwork makes it more effortless as all the process is digital.
Ease of access
The widespread availability of the internet and technological developments have made it possible for people in remote areas to get access to insurance policies as well. One can purchase a term insurance policy from anywhere and at any time.
How To Check the Best Term Insurance Plan Online?
One of the benefits of purchasing an insurance plan online is the availability to check and compare the various policies available. Some of the factors that an individual should consider while selecting a policy are:
- The benefits and coverage that the insurance policy is offering
- The premium that needs to be paid to get the insurance benefits
- Any additional costs attached to the policy
- The period of the policy
- Your financial plans and goals
- The insurance company’s financial background and market reputation
Keeping the above-mentioned things in mind, one can make use of several websites which act as an insurance policy marketplace to compare different policies. With the help of online calculators, an individual can also ascertain the premium amount that needs to be paid for a particular coverage.
Difference Between Buying a Term Insurance Offline vs Online
There are several key factors which differentiate purchasing a term insurance policy online and purchasing it offline.
While purchasing a term policy offline, the premiums tend to be higher compared to an online term policy. This happens because when you purchase a policy online, you are buying it directly from the insurance company. In an offline purchase, there are additional costs for intermediaries and insurance agents.
Help from agents
One of the key factors when deciding to purchase an insurance policy online or offline is the help that a customer gets from agents. Insurance agents are knowledgeable and can help someone understand the details of the policy. These agents can also guide and help customers in purchasing decisions. Although it is possible to research and get details online, some people may not be comfortable doing so. Having a trusted insurance agent can give more confidence to customers.
The offline purchase process is time-consuming as it involves insurance agents, visiting a local branch and also paperwork. The process of purchasing term insurance online is easier and hassle-free. There is no need for paperwork or intermediaries. It is convenient and quicker compared to purchasing a policy offline.
An individual should take the necessary steps to ensure the financial security of their loved ones. Term insurance is one of the best ways through which one can ensure that their family receives financial aid in the event of death. Purchasing a term insurance policy online is simple and offers several benefits.
Is it better to buy term insurance online?
Purchasing term insurance online is beneficial as it is cost-effective and helps in saving time.
Is it safe to take term insurance online?
Yes, it is safe to purchase term insurance online. The websites are secured and encrypted to ensure there is no leak of data.
Is insurance cheaper online?
Since there is no cost of intermediaries or insurance agents, the premiums are lower which makes online insurance cheaper.
Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.