Buying term plans online? Keep these tips in mind

© Provided by The Financial Express
This is to factor in the changes of an individual’s financial obligations and responsibilities with time.

By Dheeraj Sehgal

Online term plans make it easy for you to adopt the ‘Research Online, Purchase Offline’ strategy. Using online and digital tools, you can conduct on your own thorough research on the plans available. One of the most prominent benefits of an online term plan is the lower rate of premium in comparison to the offline plan. With online tools and calculators that facilitate easy comparison of policies, you can instantly weigh your options and find the right term policy for your requirements.

Innovative products

With the rise in demand for online term plans, there has also been an increase in the scope for innovative solutions. Insurers now offer a wider gamut of new-age term plans that go beyond just a plain vanilla cover to include comprehensive benefits and additional covers. For instance, some term plans today offer child education cover, health protection cover through a critical illness rider, to ensure there are no roadblocks that derail customers’ life goals.

Another area where term plans have evolved is that one can opt for plans where the cover increases with changes in life stages such as marriage, birth of child, etc. This is to factor in the changes of an individual’s financial obligations and responsibilities with time.

Things to remember

Before you go ahead and buy a term plan online, there are certain essential things you need to keep in mind.

• Ensure that you have all documents compiled and ready to be submitted as soft copies. This will help get your insurance application processed sooner.
• If your insurer requires that you need to go through some formalities such as medical tests, you need to comply with these requirements. This irons out any potential roadblocks standing in the way of your insurance application being approved.
• It’s important to declare all details correctly when you apply for your insurance plan. Also, do keep your insurer updated about any changes in your contact information such as your address or phone number.
• At the time of purchase, you can opt for an auto-debit facility for paying premiums, so you need not stress about paying the renewal premiums on time.

The writer is chief distribution officer, Institutional, Bajaj Allianz Life Insurance