Rajat, a qualified insurance underwriter could not battle the odds of the metropolitan. He had to change jobs and move to his hometown. Soon, he got married and started with his family. The responsibilities took over him and Rajat had to think of financial planning. With great acumen, he planned things wisely. Rajat quickly purchased a life insurance policy, a motor insurance and started with Systematic Investment Plan (SIP). The intent of buying every financial product was different, but the main purpose was to be money ready whenever any emergency related to the car, life or any other emergency strike.
Rajat’s life was sorted. He found the way for himself. Rajat was the only son in the family so he had to be more responsible for securities in life. This is why he opted for a term plan. The insurance policy gave him a high sum assured protection and peace of mind.
If you are looking for financial planning, but have limited funds, choosing a term insurance plan will be a great idea.
Want to know why?
Let us explore further why picking a term insurance policy will be a good idea. And how should you buy a policy, online and offline.
What is term insurance?
Term insurance is a life insurance policy that provides life cover for a specified period of time. The insurance policy pays the sum assured to the nominee if the life insured passes away during the policy term.
Benefits of Term Insurance.
The term insurance is the most preferred life insurance policy as it offers these benefits :
- A high life cover: The term insurance policy offers high sum assured cover. You can get a high sum assured as high up to Rs.1 crore.
- Available at affordable premium: The insurance policy does not involve the component of investment that makes the premium affordable. The insurance cover for Rs.1 crore can comes at a low premium of Rs.480/month
- Gives tax benefit: A term insurance policy provides tax benefit under Section 80C of Income Tax Act, 1961. The maturity proceeds and the death benefit under the policy is also tax exempt under Section 10(10D). The maximum tax deduction in one year that can be claimed under term plan is Rs.1.5 lakhs.
When the term insurance policy is known to offer such wide benefits, making a choice to buy the policy online or offline becomes the next target.
How to buy the policy online or offline?
Once you have understood that your family needs a financial protection cover, it is finally time to buy one. But the next thing you can be stuck at is buying a term plan online or offline. Whatever mode of purchase you choose, one thing you should make a note of is that the term plan does not change in either case. Still, buying the online term insurance plan can turn out to be better.
Online or Offline: which term plan suits you?
Buying term insurance online vs offline can be a tough choice to make. These are the pointers that will help you decide which term plan is better.
|Online Term Insurance||Offline Term Insurance|
|Easy to purchase.||Comparatively difficult to purchase.|
|Comparatively cheaper.||It is costlier than the online term plan.|
|Directly deal with the insurance company.||Involves insurance agent.|
|You can close the deal yourself.||Everything is taken care of by the agent as per your requirement.|
- Less time and money: Saves you a lot of time and money, both. Online policies are easier to spot and understand. Once you are through with the policy term and conditions, you can buy the policy by making online payments quickly. In simple words, you do not have to depend on agents to provide you with the policy copy.
- Easy to understand: Online the process is simple and easy to understand. You can read about the term insurance policy online and decode the term and conditions. The buying process is also simple and clearly dictated on the web portals of the insurance companies.
- Transparency:The pricing is transparent,and you are aware of how much percentage of tax and the basic premium you have to pay.
- Cost of Insurance: The online premium is comparatively cheaper than the offline mode of premium. The offline premium comprises agents’ commission which can be saved in online mode.
- Online Discount: Often the insurance companies provide discounts of 4-5% when you buy the term insurance online. This again makes buying a term plan online a better deal.
- Free-look period: The online policy provides a free-look period of 30 days which is only 15 days in case of offline policies.
Well, apart from these benefits, the claim settlement process in both the scenario is same. It depends on the individual company’s claim settlement ratio and turn around time to settle the claim.
Best Online Term Insurance Plan.
If you are looking for best online term insurance plan, you can consider these:
ABSLI DigiShield Plan
- The ABSLI DigiShield Plan is an affordable plan that provides comprehensive financial security for your loved ones. The plan helps them to manage financial uncertainties when you are not around.
- The term insurance plan provides coverage to individuals up to age 100 years.
- The plan provides flexible death benefit payout like lump sum, monthly or both.
- You can choose to pay the premium annually, monthly, half yearly, and quarterly.
- The policy provides worry-free retired life if you survive till 60 years.
- ABSLI Life Shield Plan
- ABSLI Life Shield Plan is a term plan that gives you to make a choice from 8 different plans. It enables your family to not compromise their lifestyle.
- The plan options allow you to cover your spouse also.
- The policy comes with the inbuilt-terminal illness benefit. It pays the sum assured 50% of the applicable sum assured with a maximum limit of Rs.2.5 crore.
- With ABSLI Life Shield Plan you also get a return of premium option. It gives back to you all the premium paid over the years.
ABSLI Saral Jeevan Bima
- ABSLI Saral Jeevan Bima is a simple life insurance policy that provides a lump sum amount to your family as a benefit. The amount is to ensure that the family is protected financially and capable enough to fulfil their long term goals and aspirations.
- Simple and affordable plan.
- The insurance policy provides premium payment flexibility.
Buying term insurance plans is to ensure the financial security of the family especially when you are not there to take care of the family. The requirement of the term insurance plan depends on the family’s financial goals, your loan liabilities, the current living standard, etc. As soon as you get independent, buying a term plan early in life is better. It is because the premium for the individual at a young age is less. For example, the individual with 30 years of age who is a non-smoker can have a Rs.1 crore term insurance for Rs.7400/- annually. The same life cover for an individual of age 45 year is Rs.14,700/-. The premium increases with age. For more details on the term plan, you can visit the link here.
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.