As term plans are cheaper than other forms of life insurance products, let's have a look at a few reasons why you should go for an online term insurance plan.
Online term plans, as the name suggests, can be bought online. You do not have to arrange for a meeting with an insurance agent to understand the product. All you have to do is go online on Coverfox, an online insurance broker website, and you can buy an online term plan instantly within minutes. You can also visit the website of the insurance company and buy a term plan online directly.
- You can also customize the online term plan as per your needs without any difficulty. You can select from available features such as:
- Plan options: Level, Increasing, With Critical Illness, etc.
- Plan tenure: Choose a plan that is equivalent to or higher than your remaining working years.
- Premium payment options: What are you comfortable with annual, half-yearly, quarterly, or monthly. You can even activate an ECS mandate of monthly premium deduction from your bank account.
- Premium Payment Term: Single, Limited, or Regular
Once you have customized the plan as per your requirements, you can fill the proposal form online, make payment through a secure payment gateway. If a medical examination is needed, you can pick a convenient slot from the options available.
DID YOU KNOW Online Term Plans are up to 25% cheaper than their offline counterparts. Yes, you read it right, term insurance plans are cheaper than other forms of life insurance plans like an endowment, money back, whole life. But, online term insurance plan is also less expensive than their offline counterparts. That's right, a term insurance plan's online variant is much cheaper than the same company's offline term insurance plan.
Let's say ABC Insurance Company has a term insurance plan. This plan has two versions online and offline.
If you are a 30-year-old non-smoker male, then Rs. 1 Crore term insurance plan's offline version will cost you Rs. 18,000/- per annum.
Now, the same plan's online term plan will cost you Rs. 11,000/- per annum. Thus, you will save around Rs. 7000/- per annum.
- Invest Your Savings:
You can use the money you save on your term insurance premium for investment in other avenues like a ULIP, Equity Mutual Fund, or even a fixed deposit.
Now, if you were to invest Rs. 7,000/- saved from the above example every year for 30 years, then you would be saving around Rs. 2,10,000/-.
Now, if this amount was invested in an equity mutual fund, and this mutual fund gave an average return of 10%, then also at the end of the 30th policy years, you receive around Rs. 9-10 lakhs from your yearly investment.
Apart from the savings part, the online buying process opens up a host of features for you. You can compare various online term plans from different insurance companies on a single screen. Online broker Coverfox offers you the facility to compare the benefits, features, policy term, premium of different term plans on a single page.
Congratulations on your decision to buy a term insurance plan for providing a happy life to your family in your absence. But wait, Do you know what is the right amount of coverage that you should buy? Well, arriving at the right cover amount is now no longer difficult, thanks to the online FREE Human Life Value Calculator (HLV).
- An online HLV calculator helps you to calculate the exact amount of coverage you need. All you have to do is fill in the required details like:
- Current Monthly/Annual Income
- Current Monthly/Annual Expenses
- Outstanding Loans
- Present Value of all your investments
- Remaining years of service
Once you have provided all the information, the tool shows you your current net worth. Now you can buy an online term insurance plan with a cover amount that is equivalent to or higher than your net worth.
Suppose, after providing all the information, the HLV calculator shows that your Networth is Rs. 1 Crore, then to be on the safe side; you must buy an online term plan with a sum assured of Rs. 1.25 Crores, this way, you are ensuring that there is a provision in case some emergency crops up in your absence.
