Online Term Plan - A New Trend in Insurance Industry

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Online Term Plan - A New Trend in Insurance
Industry
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• The need of life insurance can never be ignored.
  Now that LIC has launched its online term plan,
  there would be increased awareness along with
  increased competition in the market. This change
  will force other insurers to launch similar
  plans. LIC online term plan is likely to have
  higher premium. But, it will help in
  understanding the need of life insurance and
  process of collecting investment products that
  would subsequently help the people in
  differentiating the need of insurance and
  investment.

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• Term insurance is the oldest and cheapest life
  insurance plan offering death benefit. These
  plans do not offer any maturity benefit at the
  end of the policy term. Death benefit i.e. full
  sum assured is paid to the nominee only if the
  insured dies during the policy term. It comes
  with easy understanding which does not require
  any calculation of returns and charges and
  premium is the only expenditure. Whether
  insurance or investment, one must not forget that
  nothing is available for free.

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• With the new trend of online term plans, an
  individual enjoys 40 discount on premium in case
  of online plan when compared to the regular
  offline term plans as these involve agents
  commission, office expenses and marketing costs.

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• The plan targets well educated people thus the
  mortality experience in online term plan is good.
  The targeted class offers genuine details about
  their family and themselves. The reasonable claim
  ratio is another factor that makes term plans
  availability at competitive rates.
• Term insurance is the best way of securing your
  familys future in case you die in your earning
  stage. Here are some points that can help you in
  the selection of the best term plan

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• Before finalizing the sum assured one should
  analyze the real need for life insurance. As per
  the thumb rule the cover amount should be at
  least 12 times of your annual income. Life
  insurance is basically for the earning member
  whose demise would bring economic loss to the
  family and not the non earning member like
  children. It is always profitable to have life
  cover till the age of retirement because the
  income source comes to an end after retirement.
  Before applying for online term plan it is
  important to check if your city lies in the list
  of selected regions where such option is
  available. It is advisable to mention all the
  genuine details when filling the form for term
  insurance like health history, existing insurance
  plans etc.

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Source https//www.policybazaar.com/life-insuranc
e/term-insurance/articles/why-go-for-online-term-p
lan/