Every millennial in the 21st century juggles with so much on his plate that one is not able to take cognizance of the thought of one’s demise. Although they are well educated, tech-savvy, and quite “woke” towards the latest developments, only 45% of millennials aged between 25-35 have heard of life insurance online policies, and barely 17% have purchased it. Contemplation of the future is often an evasive aspect, thanks to the hustle of day-to-day activities. Some of them do not have immediate liabilities, while others spend their lives amassing tangible pleasures that sure drive immediate gratification, but place ‘long term’ on the backburner. But you nṣever know when life throws you a curveball when all seems to be going smooth; which makes it all the more imperative to be prepared to face the worst.
Life insurance then comes to the rescue. In this regard, the internet is brimming with options and has scaled from being a mere information provider to a massive distribution channel for life insurance online providers. Armed with apt information, we can simplify the otherwise complicated decision-making process and avail the right term insurance. The online platform waives off the shortcomings of traditional insurance companies by ironing out time and cost inefficiencies.
A step-by-step guide to buying online insurance plans-
The basic steps involved in buying online term insurance remain constant across different companies and forums and can be summed up through the following steps.
- Log on to the desired company website and click on the banner or link advertising life insurance.
- Enter the assured sum and policy term.
- Select a suitable premium paying term.
- The premium amount is then calculated based on your inputs.
- Choose the bank for rolling out the premium amount.
- An acknowledgement then pops upon completion of a successful transaction.
- Your insurance company gets back to you after around three weeks on whether your insurance policy has been approved by its team.
- Subject to approval, you will be sent a soft copy of your policy, followed by a hard copy.
Popular experience says that the mark of a credible life insurance online company is lesser clicks and high website speed.
Top tips before getting your first life insurance online–
- Pay once or pay annually- Although costlier, single premium suits the potentially undisciplined ones who might miss renewal deadlines or may have difficulty sparing money later at fixed intervals, most people prefer rolling out premiums at regular intervals with a lesser amount. You may also condense the premium tenure, which hikes up the premium contains the risk of falling prey to increasing liabilities. Apart from these two common modes of payment, insurance companies have launched ample payment plans including limited premium payment plans, increasing cover plans, and even plans that reimburse the entire premium if one survives through the full term.
- Opting for the right term- Stretching the cover beyond one’s working span is favourable for reaping more benefits. It also puts morality on the blade since an individual’s death is thought to drive one to a big gain. The thumb rule is to be covered for around 8-10 times of your income and any outstanding debts and buy from a life insurance online company with a clean claim settlement record and good customer orientation policy.
- Go for medical tests- Companies are generally known to put buyers through extensive medical tests. Sometimes they do not stress for tests and settle for a declaration of good health instead. However, one must always go for medical tests, as the premium rates are lower if the buyer is in excellent health. It also fortifies the policy against claim rejection on the grounds of any existing ailment.
- The suitable tenure- The combination of the tenure of the policy along with the cover it offers can do wonders in offering lucrative profits to the buyer. Ideally, the cover should be until the age of 65 years.
- Accidental death rider- Very often, adding an accidental death rider pumps up the premium, but enhances the cover, since the waiver of the rider is very cheap.
- Plans to get the full premium back- Investing an additional amount of around Rs. 7,500 every year, even at a nominal return of 5% will grow to around 5 lakhs in 30 years. Since it is a common perception that life insurance plans are a waste of money with zero returns, companies have started designing policies aimed at returning the entire premium.
Thus, if you feel the need for insurance, life insurance online helps one channelize requirements and arrive at the most suitable plan after straining through one’s needs, assets, and liabilities efficiently. But the cover and kind of insurance is a personal choice. What might be suitable for others, might be a pitfall for your plan. After all, with investing, educating yourself is essential to stay aloof of future trouble and making the right choice.