-Samod Sarngan
A loud and unambiguous YES is the answer to the question. Why, you may ask? A tech-challenged person who use the computer only to check mails and to browse social networking sites, people may hesitate at the idea of buying term insurance online.
Adding to their problem; the fear of subjects like finance, investment and stocks; which seem like Greek and Roman to a layman. No wonder, we hand over the task to the friendly insurance sales guys. It took them a while to understand that the agents were actually selling stuff which earned them commissions. They never did and still never do talk about term insurance. It was as if someone spends a holiday in Switzerland and leaves you to foot the bill.
Another big lesson learnt the hard way – buying term insurance online is cheaper, way cheaper, than buying it from the friendly salesman. WHY?
First reason: The insurance company gets to save on agent commissions. You would be shocked and surprised to realize that commissions for a normal offline term plan is as high as 40 per cent. And the commission comes from the EMI that you pay. Someone is getting rich on your hard earned money when it should be used for your comfort or for your family.
Second reason: Online term insurance plan premiums are cheap as those who buy it online are perceived to be less risky. A net-savvy person is perceived to be less risky. And it is also perceived that net-savvy folks lead a healthy and better lifestyle and there are more chances of outliving his non-net-savvy counterpart.
Third reason: For insurance companies the overheads are reduced and the paperwork is less. It is able to service you directly without going through the insurance agent.
How to buy term insurance online?
First, browse the net to learn and understand about insurance companies, premiums, coverages, etc. Considering the advantages that insurance companies have, many are promoting online sales.
Fill the proposal form online by providing personal details like age, occupation, pre-existing ailments or diseases, etc. Insurance companies do ask for your habits like alcohol consumption and smoking as the premiums for alcohol consumers and smokers would be higher.
Once done, the website will provide illustration to show how your policy would perform year-on-year and the costs that you have to pay. If you find it ok, pay the premium and you get a receipt for it.
Just for your information, some formalities need to be completed still. The insurance company representative will come and collect your documents from you. You will have to provide proofs of your identity, address, income and date of birth. Once the documents are processed, the policy comes within three or four days.
