Finance

How to make the most of online term plans now?

If you are looking to buy an insurance policy, the most effective way to do it might be through an online term insurance plan. The premium paid the insured is generally on the lower side. On the other hand, in case of the insured’s untimely demise, the nominee receives an assured sum which is relatively higher. However, if the individual survives the term, there is no savings of the premium. The insurer uses the premium to cover mortality risks and hence if you survive the term, you do not receive anything from the money you invested. This is similar to paying a car insurance premium. If your car doesn’t face any damage during the term, you do not get the money back at the end of the tenure.

This does not mean that you should shy away from getting a term insurance plan. A term insurance plan is should a part of every individual’s financial portfolio because it gives you an opportunity to secure your family’s future in your absence.

Why go anywhere when you can buy a term insurance sitting at home?

Few years ago, we would shop going to the stores and malls, but now that has been taken over by online shopping. You do not have to physically visit any place to buy anything, everything happens from the comfort of your laptop or mobile phone. But did you know that apart from essentials, groceries, mobile phones, clothes and gifts, you can also buy financial products like a term insurance policy online?

All the information you need is available on the website of insurance agencies selling these term insurance. It becomes easier to evaluate, compare and choose from a wide number of investment options available and narrow down to a term insurance plan that suits you the most. You even have the option of renewing your insurance policy online, and a lot of individuals find this way more convenient than doing it the traditional way. All you have to do is visit the website of the insurer, make an online payment and download the soft copy of the payment receipt. No more running after agents or visiting the insurance agency which can be far away from your home.

Save more money by buying online

There are multiple factors including age, health, sum assured, tenure, gender, etc. while deciding on the premium of the person buying the term insurance. However, did you know that if you buy a term insurance policy directly from the insurance company rather than buying one through an agent, you can save more money? That’s true. An individual can save up to 25 percent if they buy a term insurance policy online rather than doing it through an agent. 

Make the most of online tools

Most insurance or aggregator websites offering life insurance online also offer tools to help insures get a rough idea of the amount of coverage they might need to protect their family. It is said that the sum assured should be calculated in such a way that it is at least eight times you annual income with a review every five years. Other factors like your current age, your child’s tuition and college fees, and the standard of living your family is accustomed to also play a huge role in deciding the coverage that you need to secure your family’s future. Do not forget to also take your existing liabilities into consideration while narrowing down to a final figure.

These are some of the ways you can make the most out of an online term insurance plan. However, do not forget to review your insurance needs every five years to make sure that you are going in the right direction in terms of fulfilling the monetary needs of your loved ones even in your absence.

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