Is it safe to buy online term plan in India?

Most of the people are suspicious of online term plans. This is because of various reasons like they are quite cheap. Thus people think that they might not be safe. Read this article to find out if the online term plans are safe to buy or not.

Almost all the insurance companies offer online term plan at concessional rates. This means that by buying the term plan online, you will have to pay comparatively less premium than the offline mode. The insurance companies are even promoting their term plans aggressively and the premium rates have also become much competitive. However, there are some people who are still doubtful regarding the online term plan. In this post I will explain in detail regarding how safe the online term plans are.

Why are the premiums less in case of online plan?

A common doubt with most of the investors is that since the online plan is cheaper, there will be problem in getting claim. Let us examine why the premium is cheaper. Firstly, when you buy the term plan online from the website of insurance company, there is no agent involved. As a result, you get concession equal to agent's commission every year. Moreover, the cost incurred by the company in processing the insurance is also less. Finally, the target customers of these online term plans are young individuals that are health conscious. Thus the insurance companies are ready to provide higher cover with fewer premiums.

Will there be any problem in getting claim in online term plan?

If you have provided correct details while applying for the term plan, there should not be any problem in getting the claim. In fact, an important thing to note here is that whether you buy the term plan online or offline, the procedure to make the claim is same. However, it is recommended to teach your dependents about the whole procedure. This is because of the fact that you might be tech savvy but this does not apply to your dependents like parents. In case of death of the policy holder, it is the dependent/nominee who has to go through the claim process. In case, you have small children as nominee, you should teach your relatives or wife about the claim procedure so that they can help the children if something unfortunate happens.

Precautions to take while buying the term plan online

You need to take certain precautions while applying for the term plan. Firstly, you should fill all the details correctly. If you face any problem, you can contact the customer support of the insurance company. You should co-operate with the insurance company in all aspects. Also, you need to pay all your premiums on time so that the policy is not lapsed. In case, you do have net banking account or are still not confident about buying the term plan online, you can buy it offline. For this purpose, visit the nearest branch of the insurance company and they will help you out. It is advised to get the proceedings done through a professional agent who does this work full time. This will insure that he will be doing the work for long time and can help your nominee in getting the claim accepted.

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