Today online term insurance plans are available at very low cost. It will cost you even less than your monthly mobile bill. So, if you have not taken life insurance yet it is advisable to go for an online term insurance plan. A term insurance plan provides a risk coverage and financial stability to your family in your absence.
Also Read – Best online Term Insurance in India
Why Online Term Insurance policy are less costly
Online term insurance policy is 20-40% less costly compare to offline policy. The reason why there is big cost difference is between online and offline term plans are given below.
- As online term plan is purchased directly no intermediate agent is involved in between. So you will be saving big money on insurance agent commission. You may not be aware but agent takes 15-20% commission on every insurance payment.
- A mortality risk (unknown or hidden risk) associated with online term plan is almost zero because people who opt for online term plan are usually well educated and they are expected to take good care of their health so the insurance company is willing to provide them term plan at lower cost.
- A paperless process so further reduction in overall cost of policy.
Best way to purchase online term Insurance plan
You can purchase online term insurance plan in following two ways.
- Direct Online purchase – In this case you approach the insurance company directly from the insurance company website and purchase the policy online. No agent is involved and the entire process is completely transparent.
- Purchase from Insurance Web Aggregator – You can also purchase online term insurance plan from insurance web aggregator. Insurance Web Aggregator is web portal or search utility approved by IRDA. Insurance aggregator website provides you facility to compare several insurance policies and helps you to get the best deal. In this process also no agent is involved and the entire process is transparent.
Let’s take a look at comparison between these two methods –
From above comparison, it is quite clear that if you are intended to buy online term plan or any insurance policy you should use Insurance web aggregator website. Insurance aggregator method is the best way to buy online term plan as it will help you to take an informed decision.
Also Read – Comparison chart Term Insurance Plans
Insurance Web aggregators in India
In India, you will find several Insurance web aggregators. You should be careful while selecting right insurance web aggregator. Make sure that Insurance web aggregator is approved by IRDA. List of most popular Insurance web aggregator in India is given below
How to purchase online term plan from web aggregator?
- Visit the web aggregator website from where you wish to purchase your policy.
- Provide your details like your name, address, date of birth, sum assured, email address, mobile number, city, smoking habits etc.
- Press the ‘Continue’ button and you will get various term plan options along with premium and feature detail.
- Select appropriate term plan and make premium payment using Net banking, Debit Card or Credit Card.
- On completion of premium payment, the insurance company will send policy document. Congratulation now you are insured.
How insurance web aggregators make money?
Insurance web aggregators are not an agent and they don’t even take referral fees from the insurance company. So, how they make money?
As per IRDA guideline insurance aggregators are authorized to charge a flat fee not exceeding fifty thousand per year towards each product displayed by the web aggregator in the comparison charts of its website.
So the point here is they are not getting any benefit if you buy a policy from them or not.
Over to You –
Online term plan offers you multiple benefits including cost saving. So, always purchase term insurance policy online. You should keep certain important factors in mind before purchasing term plan such as sum assured, income, future expense, riders etc.
In order to help you here is comparison chart of Best Term Insurance Policy.
Remember – Buying term plan is an important decision of your life. Be cautious and purchase best term insurance policy based on your requirement.