How is Online term insurance plan different from offline Term plan?

For now you have figured out you should buy a Term Life Insurance plan !  But The Million Dollar Question now is, Should I go for a Online Term Plan or an Offline Term Plan ? Many questions- I understand why you might be attracted towards purchasing a Online Term Life Insurance plan is due to its low Premium. But on the back of your mind are questions like, Are these Online term plans reliable, whats the claim settlement ratio?  Should I under go a Medical test ? Finally from which company should I buy The Online Term Plan.

Most of the people in India purchase Insurance for the sake of tax, And they rely on Insurance Agents who approach them during the period of Jan to march trying to sell the customers the policies which are good for the agent ( i mean - in the form of commission ) . I already have learnt and explained in one of my previous article that we should not combine investment and insurance. There are many positive points of Choosing a Term Life Insurance plan 

Are Online Term Plans Reliable?

After a thorough R&D , I could understand Both Online and offline Term plans are reliable, Reliability depends on the organisation which is selling you a term plan. It is important to see the track record and claim settlement ratio of the Insurance Company. 

One logical point is we started purchasing mobile phones, Shoes, Furniture, movie tickets, Vegetables - Tell Me What Not - We are purchasing everything online due to the convenience and the lower price they offer - We know that prices of many goods are lower online. Like wise Online Term Insurance Plan also. 

May be Insurance companies wants to cut down the Insurance Agents Commission, Office Space, Employees So that they can be competitive in providing Online Term Insurance plans at lower cost. For methere is nothing suspective about Buying Term Plan online. 

And if your Insurance Agent says - I will be there to help you guide you / your family through the process etc when needed. Next Question you should ask the Insurance Agent is - Will you not change the company for your life time?

Are Medical Tests required for Online Term Insurance Plan?

The Criteria for Medical Tests is decided by the Insurance Company based on your Age and The Sum Assured. So the Short answer is Be it Offline or Online Term Plan, Medical Tests may be called for.

After The Medical Tests, If any Illnesses are dicovered, They may revise the premium to be paid, If you are interested, You will purchase the policy by paying higher premium. Aand If you are not interested - you may have to pay for the Medical Tests conducted.

Customer Support for Online Term Plan Buyers. 

It is discussed in several financial portals that Online Term PLan Buyers have to take with Customer care / Helpline. Many of the insurance companies do not provide customer service at their offices. But I guess, That does not matter much. As most of us are going to pay premium online and only thing the necessity may come in case of any unexpected happening, The Nominee has to deal with Customer care and Helplines.

Riders Over your Insurance Policy?

What these Riders mean ? Just to keep it simple they are like special recharges you do to get the tariff down or enjoy a special feature. There are different riders, Following is the list and a brief explanation about the same.

1. Accidental Death Rider : If the Insurance Policy Holder opts for this Rider, He may have to pay few more premium , But If at all the Policy holders dies of a Accident, The Nominee will receive Sum Assured + Rider Sum Benefit.
2. Critical Illness Rider: If the policy holder opts for this rider,  The policy holder will receive a lumpsum amount to treat his critical illness like cancer, heart attack, kidney failure etc.

Different Companies are offering different type of Riders, Choose them wisely as per your needs.

Documents required to submit for Term Insurance Plan?

1. 3 Months Salary Slips.
2. IT Returns.
3. Form 16.
4. Address Proof.
5. Bank Statement for 6 Months.

My Final Words on Online Term Insurance plan:

Time has come when we should read All the terms and conditions !! Yes I am serious till date we have blindly signed or check boxed may times while registering for a website etc,, without reading terms and conditions. 

But You can make your smart choice of taking a Term Insurance plan more smarter and effective only by reading all the terms and conditions.. It is you who has to decide what term plan you should take.

Please don not come under the influence of Insurance Agent.