Buying term insurance plan is important in order to protect your family’s financial future in case of any unforeseen events. But at the same time, the prolonged process, documentation, and formalities can put-off many from buying the term plan.
Thankfully, we live in an era where most of the things can be done online, which takes the lengthy process out of the picture. And one of them is an online term plan. You can now browse for term insurance plans, their benefits, compare, and buy the best term insurance that fulfills your requirements.
However, here are the key points to make you most out of buying online term plan:
Purchasing term plans at low premiums:
Buying a term plan online means you are directly buying it from the insurance provider. There’s no mediator as in insurance agent involved in the process. As you don’t have to pay the commission and other extra charges, getting term insurance online costs less than the offline version. Also, as you can explore the details and the features of term plan at the insurance company’s official website, the process of buying insurance policy becomes easier.
The annual premium for a term plan depends on the policy holder’s age, sum assured, gender, also whether the plan is bought online or through an insurance agent. If you buy term insurance online through an insurance provider’s website you may save 25% or more than its offline version. This means you can get the same benefits and apt coverage amount at a lower cost.
Save the savings:
Buying a term plan online can help you save on the plan’s cost. The difference between the online term plan and its offline version from the insurer can help you save at least 25%. You can put this saved to other use or invest the difference for a longer period to earn good returns.
Most insurance providers selling life insurance online offer tools like term plan premium calculator to help you calculate the apt coverage amount, the premium you will have to opt for, also the period of the term plan. According to a general thumb rule, you should buy a policy with coverage at least 8% of your current annual income. Also, one needs to review the coverage amount every five years. Online tools such as a term plan calculator help you determine the coverage amount based on your age, gender, and other important factors.
An online term plan provides more than a convenient procedure. With these key points kept in mind, you can now make the most out of buying a term policy online.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.