A Complete Guide on How to Buy Term Insurance Online
Term insurance is the most basic form of life insurance but remains the most beneficial. The popularity of term life insurance is from the high maturity amount in return for a comparatively lower premium amount. This premium amount is also lesser than any other regular life insurance product. There is no wonder why anyone would like to have such a plan for themselves or their loved ones. Purchasing important products like insurance can be hard, especially online. But don’t worry, cause here you will find the complete guide to purchase term insurance online. Read on to know about all the involved processes in detail and save yourself from the trouble of offline purchasing.
Prerequisites for Term Insurance
The insurer will require a few documents from the customer to approve the term life insurance application. Common documents are proof of identity, residence proof, age proof, health certificate, bank details, nominee details, and contact details. These documents are necessary to know the life insured and their nominee.
Online Research
The next step will be to search for term insurance plans online. Searching term insurance plans from all 24 life insurers in India ensures that no beneficial plan is left out. A relief in the case of term insurance is that all insurers will only have one term insurance dubbed Saral Jeevan Bima Yojana. So, one only needs to gather 24 term life insurance plans.
Plan Comparison
Comparison ensures that the final selected plan has the maximum benefits among all the other plans. The comparison will include several criteria to avoid any risky or displeasing insurer facility. Given below are the required comparison criteria.
- Premium Amount
- Death Benefit Amount
- Premium Payment Modes
- Maximum Tax Deductions
- Policy Duration
- Riders
- Insurer Reliability
- Claim Settlement Ratio
- Optional Features
Plan Selection
The plan selection will be based on the comparison. After selecting the most suitable and beneficial plan, the next step will be to understand the plan correctly. In doing so, all the hidden clauses and liabilities of the plan are perceptible. The policy’s terms and conditions are the rules that the insurer and the life insured must follow. There are chances that the insurer adds extra clauses while underwriting the policy, which results in lower chances of claim approval. There can also be hidden liabilities or terms that reduce the term plan insurance’s final death benefit amount. To avoid these rip-offs, thoroughly reading and understanding the terms and conditions are important.
Application Procedures
The application procedure via online mode is very simple. The steps involved are visiting the insurer’s website, creating or logging into an account, entering details, plan selection, extra cover selection, uploading documents, reviewing payment, and receipt generation. There can be some extra steps based on the insurer, but these are the major ones.
Term Insurance Approval
The time required to approve the term life insurance application will depend on the insurer. Some provide same-day approval, and some require at least ten working days. If the insurer finds all the details and documents in order, they will send the policy papers via mail and e-mail. And the policy will commence from then onwards. But if they find any discrepancies or errors, they will reject the application while mentioning the reason for rejection. The insurance company will refund the money paid during the application. If the rejection reason is correctable, the customer can again apply for the term insurance with a fresh application.
Claim Procedures
The claim procedures will be necessary during the sad demise of the policyholder. The nominee must complete the claim procedures during the first 15 days in such a case. And for this, they should know about the existence of such a term life insurance in the policyholder’s name and that they are the nominee. The nominee must also have the policy papers in hard or soft copy to intimate the insurer regarding the policyholder’s death. The insurer will then complete the examination of the situation and, if all things are well, approve the claim request and process the funds to the nominee’s bank account.
Conclusion
This complete guide on buying term insurance will be extremely beneficial for potential term insurance buyers. It will be more beneficial to a person buying term insurance for the first time. If you find the information useful, use the knowledge to purchase term insurance the next time you buy one for you or a close one.
