Generally, everyone knows about the benefits of investing in term insurance policies. As a child, you too may have watched your father make regular premium payments. Plus, you would have heard how it would ensure the family’s future protection.
If you remember, when he started his first job, he would have decided his first investment to be a term insurance policy. But to purchase one, he might have had to go to the insurance company’s office. If you ask him now, he might recall the entire procedure to be a bit tedious.
But now insurance companies ensure that your comfort and convenience is not compromised with their online term plans. Numerous insurance providers make sure that you avail of a seamless and transparent process completely online.
Online term insurance plans have emerged as the new-age alternative to traditional term insurance policies. You can now select the most appropriate plan online and can even calculate the premium you will need to pay depending on the coverage chosen. Moreover, you will find the following benefits that online term plans offer extremely beneficial:
Transparency
With online term insurance plans, you can easily fill in the details without going through an agent. It will ensure that you are aware of what you are signing up for if your details are entered correctly and know exactly how much you are expected to pay. You can read the policy wordings of the plan you choose in detail. Plus, if you can opt for the policy tenure and premium payment modes as per your convenience. Online term plans ensure increased transparency.
Convenience
An online term insurance plan offers much more convenience in terms of staying updated on the policy. You can browse the different online term plans available and opt for the required one from anywhere you are. You just need to have a secure internet connection, and then you can purchase a plan from any electronic device you have. Doing so saves a lot of time.
On the other hand, if you go through insurance agents, it will involve a more long-winded process which can be wrapped up by you quickly.
Ease of Comparing Options
All e-commerce portals have flourished owing to the ease they offer shoppers in terms of surfing for the best choices for the goods required. It is solely for this reason that online shopping has increased in popularity. And in a similar manner, browsing for a term plan becomes easier when it is done online.
If you opt to go through an agent, you might get misled as well. But if you choose an online term insurance plan, you can compare the different insurance providers’ different plans. Plus, you can compare the premiums to be paid using the insurance calculator and find the most suitable plan for yourself.
Hassle-Free Premium Payments
The online payment processing has come a long way over the last few years. Insurance companies have also evolved to keep up with these changes. And as a result, premiums for online term plans can now be paid online without any risks at all. Plus, you can pay the premiums automatically by linking it with your bank account.
Insurance providers make sure to keep their security processes upgraded to ensure a secure process. It will benefit you to finish paying your premiums in the shortest possible time.
While these are some online term plan benefits, there are other critical advantages that term plans offer in general like:
Critical Illness Coverage
One of the essential term insurance benefits is that you can opt for riders when purchasing a plan. For instance, if you suffer from any critical illness at any stage of life. Also, the treatment expenses incurred towards this illness could easily exhaust your savings. So, if you opt for a critical illness cover wherein, you will not need to pay for the medical expenditure. Instead, it is recommended to avail this benefit as you may be healthy now, nut nobody can predict the future.
Tax Benefits
According to the Income Tax Act regulation, you can avail of tax benefits if you opt for a term insurance plan. It can be availed from two various sections of the Income Tax Act: Section 80C and Section 10 (10D). As per Section 80 C, the premium paid towards the term policy up to the highest limit of Rs 1.5 lakh is eligible for tax exemption.
Moreover, if you opt for a TROP, you can avail the maturity benefit tax exemption under Section 10 (10D).
Today with the growing cost of living, you may be trying to cut down on your expenses in every way possible. And if you opt for online term plans, you will be able to cut down the expenses of going through an insurance agent. Since you will be opting for an online term insurance plan directly, you will not have to bear the agent’s compensation charges.
Thus, with so many benefits and especially as the security blanket for your family, a term insurance plan is a must-have to prepare for unexpected situations.