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News & Views


Monday, Oct 23, 2017

Steps in buying an online term insurance policy

[Source : The Economic Times]

A term policy refers to a pure life insurance policy. There are two ways to purchase a term plan; offline and online. The offline process entails approaching the insurer or an agent or broker. Here is the process of buying a term policy online.

Options

One can buy an online term policy either by visiting the insurance company’s website or through a life insurance aggregator website. An aggregator website will allow the customer to compare terms, benefits, riders and premium of different insurers.

Basic details

The customer has to fill in basic details like name, date of birth, smoking habits, contact details, life cover expected and income. Once these fields are populated, a suitable term plan with features, benefits and premium will be displayed. After going through features of each policy, a customer can choose the most suitable one by clicking on suggested options.

Premium payment

Next, the customer needs to pay the premium online. The payment mode shall be as per frequency chosen. On successful payment, a confirmation will be sent to the registered email id of the customer.

Proposal form

Once the premium is paid, the customer will have to fill up a detailed life insurance proposal form. Various parameters need to be filled in—personal details, health details, existing life cover information, and lifestyle details and nominee details.

Furnishing documents

Next, the customer is required to upload identity, address proof and health-related documents and reports. The list of documents to be uploaded is conveyed to the customer at the form filling process.

Medical test

If mandated, the customer needs to go through a medical examination at the suggested medical centre. The centre sends the report directly to the insurer.

Issue of policy

Upon verification of proposal form and medical report, the insurance company will decide whether to issue life insurance policy or not. If policy is issued, confirmation and policy documents will be sent to the customer.

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