Online term insurance is a sub type of life insurance that acts as a coverage for the death of the insured. It covers the financial responsibilities that the insured person had for his families. Online term insurance has similar aspects as term insurance. The only difference a buyer experiences here is that there is no mediator when it comes to buying an online term insurance. It is a direct and definite deal between the policy buyer and the insurance company. Though they have become popular in the past few years, a lot of misconceptions pertaining to them still exist among the buyers which as a matter of fact, are all false.
Even though you are an online customer, you get the same service quality that a regular customer would get. The only thing that changes is the medium through which you buy the policy. When a policy is bought, there is no differentiation between the policy bought online and the one bought from an agent. All the insurance companies have to comply with rules laid down by IRDA. If anyone finds the company lacking in service, they can file a complaint with IRDA.
Online term insurance offers low premium rates that make many buyers apprehensive. But there is another side to this which in fact makes it beneficial to the customer. Since there is no agent involved, the commission is given to the customer. The online buyer poses as a low risk customer for the insurance companies; given to the fact that they are well educated, earn reasonably well and are concerned about protecting their lives. All these factors pose a lesser threat and hence reduce the risk involved.
Buying the policy online can be one of the smartest moves. But the worst thing will be to let it lapse. One tends to forget the renewal of the online term insurance since there is no agent to remind you of its renewal. A much higher premium will have to be paid for buying a new policy if the earlier one lapses. Companies usually offer a grace period of 15-20 days to pay the premium.
Insurance is the bulwark of the financial planning. It is very important to get things clarified and understood before you actually buy a policy online. However, online term insurance offers characteristics that are unique to this type of insurance. It is gaining a lot of popularity in the market and a lot of people prefer buying the policy online rather than buying it through an agent.
Edelweiss Tokio’s online term insurance offers characteristics that are unique to this type of insurance.