We guide you on buying term plan online in just a few steps.

If the 20th Century was defined by path breaking inventions – the television, sliced bread, radio transmission and the telephone, to name just a few – then the 21st Century is surely the age of the Internet.

You’ve often heard the phrase ‘It’s a small world’. But the Internet aptly proves this adage. With increased real time connectivity, the digital medium has brought the global community much closer than before. Today, it is possible to do a variety of daily tasks online, especially with every person facing a paucity of time. From everyday commercial banking to shopping, and from watching live sporting encounters to buying insurance, you can do everything online in just a few minutes.

Let’s talk particularly about buying insurance. Though there are still quite a lot of people who continue to buy insurance through brokers, there are also many more who prefer to buy a variety of insurance products online. This is because insurance companies in India have removed the last mile in terms of direct communication with customers – earlier, you needed a broker to process your paperwork and explain the technical aspects of the policy to you. But with insurance providers displaying all their products on their websites and giving all relevant details along with premium calculators, you can easily find out all you need to know about the insurance product just by going online.

Buying term plans online

Of especial interest to those who wish to secure their families’ financial future in their absence, is the term insurance policy. It is one of the most affordable life insurance products in India, with a very high sum assured. Also, you can buy online term plans and get lower premium amounts – since operational costs are lower over the Internet, insurers are pleased to pass the savings on to customers. The online term plans are also cheaper because insurers don’t need to pay brokers any commission – these savings are also passed on to the customer. Other reasons for online term plans being cheaper include applicants being in their 20s, non-smokers and without any pre-existing illnesses.

These are the steps you need to follow to buy the term plan online:

* Research similar plans from leading insurance providers. Start by taking recommendations on the best term plans in India at the moment. An experienced insurance advisor, or a work colleague, or even insurance aggregator websites can give inputs on which term policies to buy. Shortlist the most suitable ones and then research them thoroughly by reading up about them on the respective insurers’ websites.

* Use the online term plan premium calculator. Once you have decided on which policies are most suitable, use online term plan calculators to find out the premium payments to be made vis-à-vis the desired sum assured amount. The calculator helps you determine which policy is more affordable and how much premium you must pay every year. This step will help you finalise the online term plan you need to buy.

* Look for insurers with high claim settlement records. Leading insurance providers in India have a good claim settlement record for term plans and indeed, all insurance products that they sell. But it is always better to partner with an insurer that has the best claim settlement record in the industry. Customer testimonials on the web can provide valuable insights into good companies to deal with. Also look up the claim settlement process – you will need to explain it in detail to your spouse and other family members in case they ever need to file the claim against your policy in the future.

* Find out all plan features. Next, download the policy document and go through all clauses carefully. Look for term plans that offer the option of increasing the sum assured coverage at a later date, as also flexible pay out options. You can ask the insurer any queries you may have by asking for a call back or emailing them.

* Initiate the purchase online. Now that you are certain about which term policy you wish to buy, you can proceed with buying the term plan online. Fill out the online application form as instructed and proceed step by step on each page. The insurer may ask for a medical test at the final step. Once the medical exam is completed, the results are sent to the insurer directly. If everything is found satisfactory, the insurer approves the term plan application. The policy is now live and you can pay the annual premiums online.

We hope this simple guide for buying term plan online was helpful to you. You can now take the first step towards protecting your family’s future needs with a term plan of your choice.

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