What Is an Online Term Plan?

 What Is an Online Term Plan?

If you are looking for an investment instrument that can help you secure your family’s financial future, then investing in life insurance can prove useful. As there are various kinds of life policies available, choosing the right one can be an overwhelming task for you. A term insurance policy is an ideal form of life insurance plan to meet your objective at an economical rate.

If you are wondering about what is term insurance, let us explain it to you. A term plan is a pure life insurance policy that provides monetary assistance to the nominees in case of the policyholder’s unfortunate demise.It offers high coverage at an affordable premium when compared to other life insurance plans. Due to these benefits, a term plan has emerged as a reliable insurance policy. 

You can purchase this plan offline from an insurance agent or online through the Internet. There are various advantages of buying a term policyonline as compared to purchasing it offline. First, you end up paying a lower premium, as you are purchasing directly from the insurance provider and not from any intermediary. Apart from this, an online term plan has other benefits, which include:


  • Easy to purchase 


One of the plus points of buying a term insurance policy online is that you can do it from the comfort of your home. It is just like shopping from online portals or ordering food through digital platforms. All you have to do is visit the insurance company’s website, log in with your userID and password, read and understand the features of various policies, and select the one that suits your needs.


  • Pocket-friendly premium


The policy’s premium is influenced by factors like age, duration, lifestyle habits, and others. You must purchase an online term planduring an early stage of life if you want it at a nominal premium. The mode of purchase, online or offline is another important aspect that can affect the premium. Buying a term insurance plan online can help you save approximately 25% on the cost as compared to the premium when you purchase a policy through an agent.


  • Accumulation of savings 


Buying a term plan online helps you to save a lot on the premium.You can utilize the money saved to broaden the policy’s scope by adding appropriate riders to your insurance plan.Moreover, you can these savings to invest in other promising financial instruments, like Unit-Linked Insurance Plan (ULIP), and build a strong investment portfolio.


  • Access to various online tools 


While buying a term plan online, you have the facility to access multiple tools. One classic example is the use of a term insurance calculator. You can use it to ascertain the approximate premium for a particular sum assured. Besides this, you can compare the traits and benefits of various policies with the calculator’s help. This makes it easier for you to shortlist or narrow down the best term policy before buying one that meets your financial goals and requirements.


  • Rider benefits 


When it comes to comparison between the riders (add-ons) of an offline and online term plan, the latter is a better option. This is because online term policies offer newer riders, like premium waiver benefit, accidental death, and terminal illness, among others. You can add suitable riders as per your needs to reap their benefits, which are over and above your base term plan. 

Online term insurance policies have become quite popular in recent years. One of the reasons behind this is that they offer high cover at a budget-friendly premium. Besides this, the convenience of comparing and buying the right policy has grabbed people’s attention due to which an online term insurance policy has the edge over an offline plan. So,donot waste time talking to an insurance agent about the policy’s features and benefits when you can find them easily on the computer or smartphone. Invest in an online term insurance plan immediately and secure your family’s financial needs. 


Paul Petersen