Buy Term Insurance Online

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Your Guide To Personal Finance
Buy Term Insurance Online
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Online Term Insurance Plan
With the internet becoming a routine of our life,
the number of net-savvy insurance buyers is
gradually increasing. Non-life insurance products
such as personal accident, health, motor and
travel have fuelled the growth of online
insurance products. Now, while a similar trend is
yet to gain substantial momentum in life
insurance, online term insurance plan have been
in particular gaining popularity. As per
the statistics, one online term plan is bought
every 5 minutes in India! The online quote
systems and price comparisons on portals
like trucompare facilitate the insurance buyers
to buy a term plan easily and as best suited to
their needs.
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Aegon Religare was the first insurance provider
to introduce an online term insurance plan called
i-Term. Today, almost every insurance company
from LIC to MaxLife insurance offer online term
plans. Now, if you are wondering if you should
buy an online term insurance plan, how safe it is
compared to an offline version and what is the
process, here is a complete guide to simplify
your decision.
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Reasons to Buy Term Insurance Plan

1. Convenient and Quick  One click, anywhere and
   anytime buying thats what an online term
   insurance plan is about.

• You can do term plan comparison browse,
  research and compare the quotes, features and
  benefits of the online term insurance plans
  instantly across the websites of different
  insurance providers.
• You really dont have to contact or follow up
  with any insurance advisor(s) or fear misselling
  of any kind.

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• You can scan and submit the KYC documents.
• You can pay premiums by choosing any of the
  multiple payment methods available credit card,
  debit card, net banking and even IVR (Interactive
  Voice Response).
• The policy is processed and issued quickly, so
  your life cover does not get delayed much.
• You can renew the policy online as and when the
  premium due or if it lapses.

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2. Cheaper Cost The premium of online term
insurance plans is about 30 40 cheaper than
the offline plans. There is a misconception pertai
ning to economical cost of online term plans,
though. Most customers believe that lower the
premium, the higher is the probability of a claim
rejection or that there is some catch. Well,
thats not true. There are several reasons
why online term plans are more affordable. First,
there is no agent commission or channel sales
cost involved in the pricing. Second, insurers
consider an online customer a low-risk profile
he is educated, earns well and prefers to take a
life cover. Third, since an online transaction is
paperless, the processing and administration cost
also comes down significantly for the insurer.
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3. Transparent Process  One of the major
problems that an offline insurance buyer faces is
transparency right from meeting(s) with the
advisor to filling up the form. You usually rely
on the advisors advice to understand the key
offerings of the plan. There are also chances
that your personal details could be misspelled or
mentioned incorrectly in the physical form.
Whereas, in an online plan, you would be doing
all the formalities on your own. You have all the
information at hand to make a sound decision.
There is a step-by-step procedure to guide you,
so the error rate is considerably low.
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Drawbacks
Lack of Human Touch If you are someone who
prefers the face-to-face support and advice for
before (buying) and after (premium payment
reminders, claim settlement, etc.) insurance, you
may not be comfortable buying an online policy.
However, you must also note that the most
advisors do not stay for long with one single
insurance company. So, if you think that the
advisor who sold you policy will stay with you
till the end of the policy term (unless he is
someone who you know personally), you are
mistaken! The good side is that you really
dont need an advisors help to buy an online
term insurance plan for the reasons stated above.
These days, insurance companies send automated
text and email status updates / reminders for
your policy. And to ensure that the claim
settlement procedure is hassle free for the
nominee(s), it is advisable to choose a reputed
insurer with the best claim payout ratio.
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Insurance Lexicon While applying for an online
term plan, you may not understand the insurance
wordings on the website. You may have to either
dig up more information from the internet to
comprehend their meaning or rely on the insurance
providers customer support service.
Choosing the Right Online Term Plan
Now that you have decided to buy an online term
insurance plan, the question is how to choose the
right one. We have already written a detailed
post on this earlier. Read here to know more.
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Process
The process of buying an online term plan differs
from one insurance company to another. However,
the submission of personal details and KYC
documentation remain same. As far as medical
tests are concerned, you may have to undergo the
same if the insurance provider deems
necessary. We will take examples of two
insurance companies Max Life Insurance and HDFC
Life to explain the process of online purchase of
term policies.
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Max Life Insurance  When you log on to the Max
Life Insurance website, you would be requested to
fill your basic personal details like name,
mobile number, email id, nationality and status.
You will be then directed to a premium
calculator page. You will need to fill your
gender,date of birth, smoking status, sum
assured required and policy term to arrive at
the premium amount. The next page will take you
to an online application form to fill personal
details, contact details, previous policy
details, health details and nominee details.
Then, you will have to make the payment and
upload the scanned copies of your KYC documents
and any other document if required as per your
plan. You will get a payment acknowledgement,
which will act as your reference till the policy
is issued to you.
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HDFC Life When you log on to HDFC Life website,
you would be first equested to choose sum
assured, policy term and premium paying term
followed by your personal details such as age,
gender and smoking habit. After your premium is
calculated, the next page will take you to an
online application form, which would cover more
or less same details as any other insurance
provider. On successful completion of the
transaction, you will get an acknowledgement and
further procedure of issuance will be undertaken.
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Buying Tips
Buying online term insurance plans is reliable
and safe as long as you chose the right insurer
and the right plan. But, you should also keep a
few important points in mind to ensure smooth
processing of your application and effortless
claim settlement process for the nominee(s).

1. Understand the plan If required, consult your
   family, friends or an expert. You must also do
   term plan comparisons to make the right decision.
2. If you are using a comparison site to seek
   information, you should verify the information
   for its relevance and freshness.

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• Read all terms and conditions on the website
  carefully, especially the ones in the fine print.
• Do remember that most claim rejections result
  from non-disclosure, incorrect or misleading
  information. In order to ensure that the
  nominee(s) does not face any problem in the event
  of a claim, a precaution at your end while buying
  a plan is of the utmost importance. You
  mustbe honest about your disclosures. For
  example, you should mention your smoking or
  drinking habit. Or, if you have any previous life
  cover, that should be too declared. You may have
  to pay a higher premium, but it is worth your
  peace of mind.
• 5. The browser page address line should show a
  secured connection. That is, it should start with
  https instead of http.

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• Before making a payment, ensure that the website
  has Secure Sockets Layer (SSL) certificate so
  that your transactions are safe and secure.
• 7. Save the acknowledgement or reference number
  of the transaction, whether it was successful or
  unsuccessful. Ideally, keep a screenshot of the
  transaction page. This will act as a record till
  you receive the policy document by courier.

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Post Buying Tips
Your responsibility does not end after buying an
online term plan. You have to consider following
factors too.

1. As soon as you receive the policy document, read
   it thoroughly to verify that your personal and
   policy details (sum assured, term, premium
   amount, etc.) are correct. You must also read the
   terms and conditions as well as exclusions.
2. You have a right to return the policy to the
   insurer in the following circumstances.

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• There is any mistake in your personal or policy
  details. The insurer will rectify and send a new
  policy document to you.
• There is a freelook period of 15 days from the
  date of receipt of the policy document. In case
  you are unsatisfied with the plan, you can return
  the policy document within this period and claim
  a refund of your initial premium.
• 3. If the policy document is in order, show
  it to your spouse, parents, any other responsible
  family member or the nominee(s). Explain them the
  reason why you have bought a term plan and
  educate them on the features of the policy. You
  should also describe how a claim settlement
  process works and where and how to contact the
  insurer as and when such an unfortunate situation
  arises.

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• Keep the policy document in a safe and a secure
  place. At the same time, it is also necessary
  that your family members or the nominee(s) know
  where it is kept and how to access it.
• Dont forget to pay premiums on time! Whats the
  use of a term insurance policy if it lapses and
  cant serve the benefits it was taken for? You
  have an option to renew the policy, however, the
  insurer may ask you to undergo a medical test.
  And, if the medical test reveals an unfavourable
  health condition, you may have to pay a higher
  premium or your policy may not get renewed. These
  are the reasons why timely payment of premiums is
  necessary.

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Remember, that you are buying a term insurance
plan for the financial security of your family.
Online term plans are convenient and cheaper to
buy. But, these alone should not be the decisive
criteria. Choose an online term plan which meets
your financial goals and gives you peace of mind.
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Contact Us
Email  contact_at_trucompare.in More Visit at
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Thank You