There is no doubt in saying that the concept of digital India is growing rapidly and we can see the changes in the growing penetration of the online presence in every sector of the entire industry. It is obvious that the traditional way of purchasing things is now evolving through the digitally driven world. Anyone can easily notice the new trend of buying things online, whether it is about products of daily use or the investment-related needs that include financial products with comprehensive protection and great returns.
Nowadays, many insurance companies and investment-related firms have started diversifying their online platforms to reach potential customers. They are using every possible technology to promote their online presence. With the use of the latest technology and tools, they are able to cater to different needs of customers and get a satisfactory response in exchange. When it comes to insurance or protection, nobody can ignore the importance of investing in a term insurance plan. Buying a term insurance plan is an important thing but before we proceed ahead, let’s understand the meaning of Term Insurance.
What is Term Insurance?
Term insurance is the most basic form of life insurance that provides comprehensive protection to the family of the insured in case of his/her demise. Under this policy, the nominee or the beneficiary (as stated in the document) will be liable to receive a lump sum amount (as death benefit) on the death of the insured that will help him/her to maintain the standard of living in the absence of the insured.
The term insurance policy allows the insured to decide the amount of the policy and the time period of the cover as well. To provide the appropriate cover, the insurance company can ask a few questions like the term of cover, gender, age, habits such as smoking or tobacco consumption. Under this plan, due to the unfortunate demise of the insured during the policy term, the company would be liable to pay the sum assured to his/her family.
The main aim of buying a term insurance policy is to provide protection to your family in case of your absence. It is true that the lump sum amount that your family will get during such a hard scenario of your demise will help them in living a financially stable life and also help them in clearing all their debts (if any).
Why buy term insurance online?
If you ever get a chance to save an amount on a purchase that is important for you, would you deny it? Of course not. It is human nature to save money wherever possible and the concept of buying a term plan online is something similar. If you compare, you would realize that online term policies are actually 40% cheaper as compared to offline plans which makes them very attractive.
On choosing the online method to purchase the effective term insurance plan, you would be saving more as there will be no unwanted charges such as paper-cost, agent’s commission, processing fees, etc. This also helps the insurance companies and that’s why they provide a huge discount on buying term insurance online.
Many people have the misconception related to online purchase. People think that they have to be tech-savvy to buy insurance online. To clear such misconceptions, insurance companies have come out with robust changes that make the whole process of buying term insurance online a user-friendly process. It facilitates smooth transactions as well.
Apart from this, online term insurance companies are offering great product customization and flexibility that allows them to cater to different needs of buyers. Those who want to invest in tailor-made term insurance plans should look for the online medium as they can get many options to explore.
Last but not the least, whether you are buying online or offline, you should make sure that you are comparing policies provided by different insurance companies before making any final decision for long-term benefits. But it is also a fact that the online medium is the first choice to compare term plans as there are many online insurance web aggregators who deal with free insurance quotes which can help you get the best out of all.
Term insurance or protection plan is simply the best investment option to secure the future of your loved ones even after your demise. In this fast paced life, term insurance can allow your family to deal with the growing inflation rate and your liabilities. Moreover, we never know what is waiting for us in future so it is better to prepare ourselves in advance and live peacefully. Invest in term insurance today and gift lifetime protection to your family.
Views expressed in this article are the personal opinion of Naval Goel (CEO & Founder of PolicyX.com).