Term insurance is a provision made by insurance companies for those who desperately need life insurance at possibly lower premiums, or for those who need life insurance for a specified period like as to achieve any goal. Online term insurance is trending nowadays because of a number of benefits offered by the insurers. Let’s have a look at some of them.
Low Premium Rates
Online term insurance premiums are prominently lower than offline insurance policies; this happens because of cost-cutting in several stages such as paperwork costs, agent/mediator costs, distribution costs, operational costs, and so on. Cud down in such costs brings the overall price down; hence the premium rates of the online term plans are considerably low.
High Sum Assured
It can also be observed that sum assured is too high as compared to offline plans. Cutting down some other costs helped insurers to offer slighter rise in the sum assured, which means a lot to the policyholder.
No Agents at All
Earlier, in case of the traditional way of purchasing term insurance, agents used to play a vital role because visiting the insurer’s office personally was not possible for everyone. Ultimately, people had no choice but consulting insurance agents for purchasing the policy. In such cases, sometimes, agents had to gain a commission, and they used to push the policies that they are interested in selling; not exactly what a customer needs. Hence, as a result, a wrong policy was sold to the customer. In case online term insurance, every stage of the process is online; thus you can think twice before hitting ‘buy’ button if you are not sure about the policy.
Transparency in Transactions
The terms of the policy are disclosed directly by the insurer; hence you need to worry about mis-selling of the product or any kind of manipulation in the terms. All the information provided by you is directly sent to the insurance company, and the deliverables are directly sent towards the policyholder. This brings particular transparency in all the transactions; from payment to policy nitty-gritty.
Considering all four points mentioned above, people often think that if all the conveniences are provided in online term insurance, why not to go with it! Similarly, the use of the internet is being widened, and people expect everything on a single click at their ease. Online term insurance has enabled a new way of purchasing life insurance with a hassle-free process; hence trending nowadays!