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News & Views

Monday, Sep 9, 2013

Things to know about buying an online term plan

[Source : The Economic Times]

Insurance companies offer individuals the facility to buy online term insurance through company websites. These can be the same as those sold through insurance distributors. The plans offer the benefit of lower premium rates for the insured. The insurance provider can pass on this benefit to investors because the online mode helps save the distribution costs.

Application form:The buyer must fill in the online application form and choose the sum assured as well as policy term. The premium applicable to the individual is disclosed based on age, gender, policy term and sum assured.

Health check-ups:The term insurance policies bought online may not require a health check-up for certain age groups, non-smokers, non-tobacco users or for a cover less than a threshold set by the insurance company.

Premium:The individuals who are eligible for non-medical processing pay the standard premium. In other cases, the premium payable can be increased depending on the results of medical tests.

Payment:The payment of premium for online policies may be made through debit or credit cards as well as the Net banking facility.

Points to note

> The free look-in period is available for online policies too.

> The individuals falling in the category that does not require health check-ups get the cover immediately.

> The premium for all online term insurance policies is also eligible for tax benefits under Section 80C.

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