Term insurance policies have enjoyed massive popularity ever since their launch in India in 2009. However, starting with 2020 the sales of online term insurance policies have gone up by a staggering 35-40% due to the impact of Covid-19. What is behind this meteoric rise of online term insurance?
What is Term insurance?
Term insurance is a type of insurance in which the insured person enjoys coverage against premiums for a fixed period of time called the term. Once the term lapses, the client must either extend the coverage by negotiating different premiums or forego insurance coverage. As opposed to term insurance, permanent life insurance provides insurance cover for the entire life period of the insurance. As is to be expected, the latter is more expensive due to its longer cover. Term insurance is in fact, one of the most affordable types of insurance as it provides the greatest insurance benefits for the most nominal premium.
The Rise of Online Term insurance in India
Online term insurance in India arrived only in 2009 when Aegon Reliance I-term became the first term insurance product offering in India. The product soon caught the fancy of Indian investors and there was no looking back from there. The fact that term insurance was now being sold online, and an increasing number of Indians now had access to the internet and online banking services helped to propel the growth of the online term insurance industry in India. This has led to a larger number of people now preferring to buy term insurance online rather than through offline channels.
The Benefits of Buying Term insurance Online
The ability to purchase term insurance online was a definite factor in its popularity in India. Buying insurance online from a marketplace such as Finserv MARKETS has the following advantages over buying insurance online:
- Easy Comparison – You can easily compare the features and benefits of term insurance plans available in the market at a single glance online. This is not possible when you are buying insurance offline.
- Complete Transparency – When you buy term insurance online, you get complete transparency. There are no hidden costs or commissions charged by agents.
- Convenience – As with all things online, a major advantage of online term insurance is the ease of processing and payment. Within a few clicks, you can upload all necessary documents, pay your premiums, and receive your policy document in your inbox, all the while resting in the comfort of your own home.
- Easy Claim Settlement – With online term insurance policies, claim settlement is quick and hassle-free. You only have to upload the requisite documents along with the claim settlement form and your claim is credited to you within a few days.be
The Bottom Line
Online term insurance policies have garnered a lion’s share of the insurance market in India due to their affordability and their convenience. Term insurance plans offer among the highest insurance coverage per rupee of premium among all types of insurance. Being able to buy them online from trusted online marketplaces such as Finserv MARKETS adds an element of trust, transparency, and convenience to them.