Buying life insurance has just got easier. Insurers in India are now offering term plans that could be bought online. A hassle free and more affordable way, you could now get yourself a life cover without the help of any agent or pushy sales executives who otherwise force you to buy expensive ULIPs. Online Term Plans are here to stay and could be purchased from the comfort of your home or office. Read on to know all about it.
Online Term Insurance Plans- Preview
Online Term Plans have been gaining considerable popularity in the last few months. These plans are pure term protection plans and can only be purchased online. It offers you an instant life cover, for specific plan tenure. All that is required is an online application on the insurers’ website. Available only for Resident Indians, the main benefit of these plans is that the whole process is devoid of agents or sales executives, making them cheaper than the conventional term insurance plans.
Going about Online Term Insurance
Though these products are called” online”, in entirety they are not completely online. A bit of the process is to be done offline too. Here is how you go about applying for one.
Decide the sum assured and term of the policy that you desire. Before you start the application process, keep ready all details about your medical condition, pre- existing and family medical history.
The website of the insurer will seek your personal details, contact and occupation details, and nominee information. The websites generally guide you through the process gradually, so you need not worry about accidentally skipping any section.
Ensure you accurately fill in the health declaration section. Details pertaining to your life style, height, weight, and details of previous ailment, medications, pre existing conditions etc… need to be given. A word of caution, your policy is liable to get rejected, if there is any wrong or inconsistent information provided. So be careful and don’t hide any medical problem or issues. All information provided are scrutinised very closely by the insurance company.
Make the requisite payment. Payment modes generally accepted is credit card or through internet banking.
The offline bit involves a medical test and submission of documents. Generally medical tests are not required for individuals less than 45 years of age. However, depending on the general medical condition of the individual and the value of the sum insured, a medical test may be called upon. For the collection of documents, a representative from the company would assist you to complete KYC norms and collect proofs for identity, address and income.
Plans Currently Offered
Here are the plans and their key features, being offered by insurance companies.
Aegon Religare Life Insurance
Ø iTerm - Pure protection plan. Does not have any riders attached.
ICICI Prudential Life Insurance
Ø ICICI Pru iProtect Option 1 – Pure protection plan. No medical tests and requires minimum paper work up to a certain life cover.
Ø ICICI Pru iProtect Option 2 - Offers an additional amount on death due to accident.
Kotak Life Insurance
Ø eTerm - Life cover Step-Up option available at important stages of your life
Ø ePreferred – Additionally offers reduced rates for non-tobacco users and women.
Ø MetProtect – Pure protection plan with no riders.
Ø Future Generali Smart Life – Offers rebates on premium for higher sum assured.
Aviva Life Insurance
Ø Aviva iLife – Offers rebate for additional sum assured and for female lives.
Ø These plans are available only in select cities. So if you do not fall under the list of cities as mentioned by the insurer, you are not allowed to purchase these plans. However, some insurers such as ICICI Prudential Life Insurance provide an option to buy these plans in offline mode through agents for an additional charge of Rs 100 to Rs 500. Even in such cases, despite such a charge, the plan works out much lower than the conventional offline term plans.
Ø Most of the insurers do not offer riders with the plans.
Ø Poor customer service and delays in processing have been a concern. Many customers have faced delays after having purchased these plans online or have had to wait long for the medical tests.
Of course these could be just the initial hiccups owing to the plan still being at a very nascent stage. If you are planning to buy yourself a plan, do keep in mind that the cover and claim settlement from the company primarily depends on the authenticity and accuracy of information that you provide on the website. Facts such as pre-existing medical conditions, being a smoker etc… should be disclosed to pave the way for a smooth and quick processing.
Written by Ramya Ramachandran