How to Buy Term Insurance Online & What are the Requirements?

What is an Online Term Plan?

Eligibility Criteria for Buying Term Insurance

Parameters Requirement
Age Limit 18 years to 65 years
Citizenship Must be an Indian citizen
Medical Examination You must take a medical test before getting term insurance. This helps the insurance company evaluate your health and the associated risks, as well as the premiums you will pay.
Job Profile Your job and income will be reviewed to check whether you can afford the premium.

Documents Required for Buying Term Insurance

The following are the important documents required at the time of buying a term insurance policy:

Document Type Documents
ID Proof Official identification proof includes Aadhaar cardVoter cardPAN card, passport, or DL.
Address Proof Aadhaar card, Voter card, Passport, DL.
Age Proof Age proof includes voter card, PAN card, Aadhaar Card, birth certificate, and 10th or 12th mark sheet. 
Medical Poof The insurer needs it during the policy processing.

 

Once you confirm your eligibility and have the required documents, you can go ahead with the purchase of the term insurance plan. Here are some points to be kept in mind:

  • You should decide the sum assured after assessing your and your family's financial requirements. 
  • You should also check the add-ons or riders offered by the insurance company that would enhance the benefits of your term insurance plan. 
  • Make sure to select your insurance provider after checking their claim settlement ratio. It depicts an insurer’s readiness when it comes to settling claims.

 

Steps to Follow While Buying Term Insurance Online

If you are confused as to how to buy term insurance online, here are some simple steps that you can follow:

Step 1

Log in to the insurance company's website and check all the available plans.

Step 2

Select the one that suits you the best and click on ‘Buy/Purchase’.

Step 3

Enter all the basic details like name, gender, date of birth, contact details, etc. You will also be required to upload the relevant documents for KYC verification.

Step 4

Select the policy tenure, sum assured and the riders you wish to add to the policy. 

Step 5

Fill in your medical details such as height, weight, smoking habits, critical illnesses, etc. The insurer might also request you to upload documents of health check-ups.

Step 6

Select your preferred premium payment method after checking the premium amount payable.

Step 7

Check all the terms and conditions concerning your term insurance policy and complete payment.

How to Calculate the Premium of Term Insurance?

Different Factors Affecting Term Insurance Premium

What are the Benefits of Buying Term Insurance Online?

With the advent of digitisation, you can now easily buy term insurance online. There are a number of reasons why online term insurance plans might be more beneficial than traditional insurance policies.

Transparency

Once you go through an insurer’s website, you can learn about all the features and benefits the term plans offer. This helps you make a better decision for your family's financial security.

Quick Comparison

The biggest benefit of purchasing term plans online is that you can compare different types of plans and choose one that suits your needs. Comparison is extremely important as you will be able to check the benefits, features and premiums payable for different plans at once.

Cost-effective

If you purchase a term plan online, you can compare several term insurances and choose the one that offers the most useful features at the lowest price. Therefore, you save a lot of money.

Lower Premium

If you purchase a policy online, you get it at lower rates than traditional plans. This is because online term insurance eliminates the need for an insurance advisor. Therefore, the insurance firm saves the cost of commission, and you get the advantage in the form of a reduction in premium.

Reduced Time

You can purchase a term plan online faster than traditional term plans. You do not have to visit the office branch multiple times. With just a click of a button, you can compare different term plans and pay for them seamlessly. This has become easier with mobile-friendly websites and applications.

No Intermediaries Involved

When you are buying a term plan online, all you need to do is fill out the required information, submit the documents, and complete all the formalities. You do not need to complete the purchase via an agent.

This gives you a clear understanding of what you are signing for. Further, you also get a proper understanding of the terms and conditions of the insurance policy.

User-friendly

Online term insurance plans come with various options for modifications. You can add some features and track the change in the premium amount in real-time. Further, you can personalise your plan and calculate the premium amount using an online term insurance calculator.

You can check all the combinations available and choose the one that fits your budget and suits your requirements.

Safe and Secure

The insurer websites offer safe payment gateways so that you can complete the payment process without any hassles of security.

Factors to Consider Before Buying Term Insurance Online

How to Choose a Reliable Insurer for Term Insurance?

Common Mistakes to Avoid While Buying Term Insurance Online

FAQs about Buying Term Insurance Online

How can I purchase a term insurance plan from your website?

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To purchase a term insurance plan from our website, go to the insurance section, use the comparison tool to select the desired insurance plan, fill out the application form, and complete the payment process to finalise the purchase.

What types of term insurance plans are available in 2024?

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The term insurance plans available in the market are level term plans, increasing term plans, decreasing term plans, ULIPS, endowment policies, etc., catering to different needs and financial goals.

What steps should I follow to purchase term insurance online?

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The processes that a person needs to do while buying term insurance online include researching the different plans available on the internet and comparing the various premiums and benefits, then filling up the application form with all your details, providing if any medical information is required, and completing payment.

Can term insurance be bought online?

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Yes, you can acquire term insurance very conveniently via the websites of insurance companies or aggregator sites. It will allow you to compare various plans from the comfort of your room, and you can make an informed choice.

Can I buy two term insurance policies together?

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Yes, you can purchase more than one term insurance plan at the same time. This may help you diversify your coverage and provide enough financial protection for diverse needs.

Do I get tax benefits if I opt for an online term plan?

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Yes, with term insurance plans, one can also get tax benefits on premiums paid for it in case it is purchased offline or online, as the Income Tax Act of India 80C offers a deduction from the total amount one pays within some limits.

What is the appropriate level of insurance coverage for me?

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The number of coverage generally has to be 10 to 12 times the annual income, considering your total financial liabilities, including debts, living costs, and future expectations such as children's education.

What is the sum assured in insurance policies?

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The sum assured is the amount the insurer would pay your beneficiaries if you die within the policy term. Therefore, it is an important feature that determines the financial coverage the policy promises.

Is it better to buy term insurance online or in person?

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Buying term insurance online is much easier and less expensive, as it would allow the comparison of policy terms and would have lower premiums on account of administrative cost-cutting. However, there's personal assistance with the service.

Is online term insurance safe?

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Yes, online term insurance is absolutely safe and also more affordable, as you can avail of many discounts. However, to have a hassle-free experience, it is recommended that you opt for a reliable insurance company.

Is a 3-year ITR mandatory for online term insurance?

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Most online term insurance providers will ask you to present your 2 or 3-year ITR as proof of income and a record of your financial stability.

What types of deaths are not covered by online term insurance?

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Online term insurance generally does not cover deaths from suicide within the first year, criminal activities, hazardous occupations, or undisclosed pre-existing health conditions.

What is the minimum income required to get online term insurance?

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The minimum income required to obtain online term insurance typically ranges from ₹15,000 to ₹25,000 per month, depending on the insurer and the coverage amount.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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