Source: newsilike.in

Buying an online term plan that is perfect for you involves some checks, especially if you are the primary earner of your family and your close ones are financially dependent on you. It is imperative to keep some points in mind so that you can choose a well-suited term plan.

Read on to learn more about online term plans, their benefits, and how to buy one.

Term Insurance is a life insurance policy that offers financial coverage to the policyholder for a fixed term. This certain number of years is known as the term of the policy. In case of the insured individual's untimely death during the policy term, beneficiaries receive the death benefit amount. 

An online term plan is an insurance policy that you can purchase via an online platform. You can compare the online term insurance plans offered by different insurers based on their features and benefits. You can even select the most appropriate one for you and complete the entire process online. As our lives are getting more hectic day by day, securing the future of your loved ones is more convenient this way.

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 decide to 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 policy online, you get it at lower rates than traditional plans. This is because buying 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 in much less time 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 up the required information, submit the documents and carry out 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 in an online term insurance calculator. You can check all the combinations available and choose the one which is in 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. 

Eligibility criteria:

• The lower age limit for applying for most term plans is 18 years, and the maximum age is set at 65 years. The premium of your policy will depend on your age. 

• You must be a citizen of India at the time of purchasing the term plan. 

• It is an obligation to go for a medical test before availing term insurance. This helps the insurance company understand your medical condition and risks involved. It also determines the premium that you might have to pay.

• Your job profile and income will also be checked to see whether you are eligible to pay the premium. For example, if you work in a high-risk environment, the premium will be fixed accordingly.

Documents required:

• Official identification proof like Voter card, Aadhaar card, passport, PAN card, or driving licence.

• Age proof like birth certificate, 10th or 12th mark sheet, voter card, Aadhaar Card, or PAN card. 

• Address proof such as voter card, Aadhaar card, passport, driving license.

• Medical proof in case the insurer asks for it at the time of processing the policy.

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 the financial requirements of you and your family. 

• 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.

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 website of the insurance company. 

Step 2: Check all insurance plans available, their features and benefits, and select the one that suits you the best. 

Step 3: Click on the ‘Buy/Purchase’ option. 

Step 4: Enter all the basic details like name, gender, date of birth, contact details, monthly details, etc. You will also be required to upload the relevant documents for KYC verification. 

Step 5: Select the policy tenure and sum assured. 

Step 6: If you want any additional coverage, select the riders you wish to add to the policy. 

Step 7: 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 8: After checking the premium amount payable, select your preferred premium payment method.  

Step 9: Check all the terms and conditions concerning your term insurance policy. In case of any doubt, feel free to connect with customer service for clarification. 

Step 10: After you are completely sure about all the aspects of the insurance policy, make the necessary payment. 

Step 11: After your payment is successful, a soft copy of the policy will be sent to you via email. A hard copy will be sent to your residential address.