Two ways of buying term insurance plans India

A term plan allows an individual to take huge sum assured with small premium. For example: a 30-year-old man who wants to get his life insured for Rs.1 crore has to shell out only Rs.7,000 to Rs.8,000 every year to protect himself for next 30 years.

Ways to Buy Insurance: Nowadays, the popularity and demand of term insurance plans India are growing in a fast manner and you can buy insurance in two ways – Online and Offline

Online: When taking an online term insurance plan, the insured ties up directly with the insurance company and no agent is involved in the process. The individual uploads all his data online and submits the same to the insurance company. The insurance company does the necessary medical check-ups, accepts/rejects the proposal and informs the insured through mail. The premium is usually cheaper when buying term insurance online as the company saves on commission + other operating costs involved in issuing a policy offline. The only disadvantage is that this is a DIY (Do It Yourself) service and hence there is no assistance from an advisor.

Offline: Here, the individual interacts with a representative of the insurance company, which is usually an agent or advisor, and arrives at the right sum assured based on the agent’s advice. The advisor helps him fill the form and arrive at the correct premium amount as well. The client is also expected to get the after sales services like premium payment reminders, assistance in claim settlement, etc.

Conclusion: Term insurance provides a large death benefit for less premium. As a thumb rule, an individual should be insured for about 10 times his or her annual salary. One should buy term insurance at an early age (as and when one starts working) in order to get a higher sum assured at a lesser premium. The more you delay, the costlier will be the premium.