Top 10 Reasons Why Online Term Insurance Suits You Best

Buying a Term Insurance Plan_2

February 12th, 2020   |   Updated on June 28th, 2022

Uncertainties hit you badly, sometimes emotionally and sometimes financially. Having a contingency plan becomes crucial in such circumstances where financial back-up doesn’t affect the lifestyle and your loved ones’ health.

Think of a situation where you meet an unfortunate demise, leaving your family behind with mental trauma and some debts. Would you ever want your loved ones to suffer? This is where the term ‘Sabse Pehle Life Insurance’ becomes the unspoken rule of your life.

A term plan is the most uncomplicated life insurance, which doesn’t offer any investment option or maturity benefits like what savings plan does.

When it comes to guaranteed returns, all we can say that the term insurance claim settlement ratio is the highest amongst all other life insurance plans; however, this is valid only in case of death benefits.

Today, almost all the insurers have introduced their online term insurance plans to offer more convenience and flexibility to their customers.

If you are planning to buy the best term insurance policy, get it online, and avail several benefits. Here is the list of top-10 reasons why online term insurance suits you best.

1. Affordability

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Term insurance online is affordable even than that of offline policies. Why so? Firstly, there is no cash value benefit, which reduces the cost of premium allocation.

Furthermore, term plans have a specified tenure during which, if the claim is not made, it is purely the insurer’s profit.

Here, most of the time, people end up not claiming by the end of the tenure, which becomes easy for the insurer to keep premiums lower than any other plan.

2. No Brokerage and Misselling of the Policy

There is no broker or agent while buying online term insurance. As a result, brokerage charges and several other costs like physical documentation are minimized. All this makes online term insurance the most affordable type.

3. Death Benefit

The biggest advantage of online term insurance is that you are covered with a considerably high amount. Usually, the sum assured can be chosen as high as Rs.1 Cr or even more. No other life insurance policy offers such significant death benefits.

4. Flexibility

You can buy online term insurance policies online at your convenience. Today, the internet has changed the world drastically. We all buy the necessary lifestyle stuff online, then why not insurance?

You can buy it on your laptop or even on a tablet, paying the premium amount online through credit/debit card or net banking.

5. Get Quotes Easily

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The best term insurance plan is decided based on the premium amount and the benefits you shall be availing through it.

Today, insurers and even aggregators also provide term insurance premium calculators on their websites using which you can get the right quote within a few minutes.

All you need to do is provide necessary information about your health and habits. You can manipulate the sum assured and the tenure to get the quote within your budget.

6. Couple Benefits

Joint term insurance plans are trending nowadays due to the affordability they offer, along with considerable sum assured.

If you are newly married or have a small child, a joint term insurance plan is the best suitable for you.

It covers both husband and wife, offering only one death benefit within the tenure of the policy. However, it is always better to get a joint policy than buying two separate plans and paying almost the double premiums.

7. Convertibility


Furthermore, if you are looking to get a comprehensive life insurance policy, such as a savings plan, you don’t need to undergo medical tests again.

The policy is converted based on term plan; however, premiums and sum assured may vary subject to the terms and conditions.

8. Claim Settlement Ratio

Not just online, but offline term insurance plans also have the highest claim settlement ratio amongst all.

For the year 2018-2019, the claim settlement ratio was recorded at around 98%, which is considerably high. This means chances of your claim getting rejected are least.

9. Riders

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If you think of getting coverage against a specific event such as accidental death, permanent or partial disability, loss of income, and so on, you can add a rider to your term policy.

Many insurance companies offer a list of riders online, which can be purchased at the time of buying the policy.

10. Tax Benefits

Identical to offline policies, online term insurance also offers tax benefits on the premiums paid and death benefits under Section 80C and Section 10(10D) of the Income Tax of India. Tax exemption capping is subject to the annual financial budget of the country.

To conclude, these top-10 reasons make it a perfect choice for you to get the term insurance online. It saves not only your money but also the time, offering several other benefits and calculator service. If you haven’t purchased yet, buy online term insurance today!