Online Term Insurance Plans in India

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Online Term Insurance Plans in India
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Online Term Insurance Plans Become Cheaper
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Prices of most things have gone up in recent
years but not online term insurance plans, which
are actually available at steep discounts
compared to 2008, the year they were
launched.According to experts, factors like
competitive pricing within this category and the
segment involved in online purchases being
perceived as less risky have resulted in the
decline in premium amount.The first lot of
online term plans was launched in 2008-09 and the
pace gradually picked up as consumers latched on
to lower annual premiums and the convenience of
buying life covers with just a few clicks.
Currently, annual premiums for most of these
products work out to Rs 18-25 per day. Term
insurance is designed to provide cover for a
limited time period and come at a lower premium
than whole life plans, providing substantial
cover early in life.For a 30-year-old
Delhi-based non-smoker male looking to buy a Rs 1
crore health cover (30-year term), the cheapest
plan available in the market today is quoting
less than one-fourth the price of what it was in
2008.
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• Clearly, term insurance has gained popularity
  since the launch of online term plans and new
  product launches. Moreover, competitive pricing
  within this category has resulted in decline in
  premium amount. Meaning, you dont have to spend
  as much on premium as you would have had to back
  in 2008, said Yashish Dahiya, CEO and co-founder
  of Policybazaar.com.
• The companies have passed on the benefits of
  reduced offline marketing and distribution costs.
  Who would have thought in 2008, when online term
  plans were launched, that today term plans would
  cover people up to the age of 80 years.
• This segment has truly revolutionized the online
  insurance industry in India," he added. Almost
  all life insurers, be it private or state-run,
  now offer Online Term Insurance Plans in India
  through their websites.
• Experts say that besides agent commission not
  being applicable on online term insurance plans,
  the premiums are lower also because of the
  segment that is involved in online purchase.

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Presently, the segment which uses the internet
to buy insurance policies with ease is perceived
to be less risky. People in this segment belong
to a young age group hence are acceptable to any
life insurer. The risk profiling is based on lot
of other factors as well, said Saroj Satapathy,
CEO, Ideal Insurance Brokers Pvt. Ltd.For
example, the cheapest plan available in the
market today for a 40-year-old non-smoker male
looking to buy a Rs 1 crore health cover for a
20-year term is at nearly 77 per cent discount of
the price quoted in 2008. The fact is prices
offered have continued to go down with new
product launches in this category and entry of
new players.Satapathy added that while buying
online policy, one needs to be honest and declare
the minutest of details including belonging to
smoker/non-smoker category, life style diseases
(if any) etc. It is always advisable to involve
insurance advisor to understand the need for
declaring details so as to avoid unnecessary
delay/denial in settlement of claim. Source
http//www.mydigitalfc.com/news/online-term-insura
nce-plans-become-cheaper-013
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