HomePersonal FinanceLife InsuranceBest way to purchase Online Term Insurance Plan

Best way to purchase Online Term Insurance Plan

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 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 a big cost difference between online and offline term plans is given below.

  • As an online term plan is purchased directly no intermediate agent is involved in between. So you will be saving big money on insurance agent commissions. You may not be aware but the agent takes a 15-20% commission on every insurance payment.
  • A mortality risk (unknown or hidden risk) associated with an online term plan is almost zero because people who opt for an online term plan are usually well educated and are expected to take good care of their health so the insurance company is willing to provide them term plan at a lower cost.
  • A paperless process further reduction in the overall cost of the policy.

Best way to purchase online term Insurance plan

You can purchase an online term insurance plan in the 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 an online term insurance plan from an insurance web aggregator. Insurance Web Aggregator is a web portal or search utility approved by IRDA. The insurance aggregator website provides you the 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 the comparison between these two methods –

term insurance purchase

From the above comparison, it is quite clear that if you are intended to buy an online term plan or any insurance policy you should use the Insurance web aggregator website. The insurance aggregator method is the best way to buy an 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 the right insurance web aggregator. Make sure that the Insurance web aggregator is approved by IRDA. A list of the most popular Insurance web aggregators in India is given below

How to purchase an online term plan from a 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 the appropriate term plan and make premium payments using Net banking, Debit Card, or Credit Card.
  • On completion of the premium payment, the insurance company will send a policy document. Congratulation now you are insured.

Well, apart from an online term plan you can also purchase car insurance, health insurance, money back policy, a child insurance plan, and travel insurance from aggregators’ website.

How do 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 do 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 –

An online term plan offers you multiple benefits including cost savings. So, always purchase a term insurance policy online. You should keep certain important factors in mind before purchasing a term plan such as sum assured, income, future expense, riders, etc.

In order to help you here is a comparison chart of Best Term Insurance Policy.

Remember – Buying a term plan is an important decision in your life. Be cautious and purchase the best term insurance policy based on your requirement.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.