Why More Indians Are Choosing Online-Only Term Policies?

Term Life Insurance: An Overview

Term insurance is a type of life insurance designed to provide pure life cover. Under term insurance, the insurer promises to pay a lump sum amount (known as the death benefit) to the appointed nominee in case of the death of the insured individual during the policy tenure. Unlike other types of life insurance policies, term insurance typically does not offer any maturity benefits. However, with the Return of Premium Rider, the insured can get a refund of the premium paid, in case they survive the policy tenure.

Term insurance plans are widely popular in India because they simplify life insurance. These plans offer a high sum assured at a very reasonable premium. Additionally, there are different types of term plans that come with flexibility in coverage, allowing for adjustments to changing life needs.

The Growing Reliance on Online-Only Term Policies

Online term insurance policies are those policies that are exclusively available on the respective insurer's digital platforms. The growth of online-only term policies is driven by several factors, such as:

Affordable Options At Fingertips

Purchasing an online-only term policy comes with the benefit of an affordable premium. Digital platforms make it easier for policy seekers to find affordable policies as the costs associated with traditional methods and paperwork are eliminated. Additionally, with the elimination of middlemen/agents, individuals do not have to worry about the commission cost.

Easy Evaluation of Features and Benefits

Traditionally, insurance purchase in India was often driven by agents who pushed policies that best suited their commission rather than the policy seeker’s needs. Online-only term policies solved this problem by offering:

• Evaluation of Features and Benefits: Individuals can evaluate all the features and benefits under a plan and pick the one that aligns with their needs.
• Quick Comparison of Plans: Digital platforms now allow a quick comparison of plans of different insurance companies as well.

Looking for a side-by-side comparison of term policies in India? Jio Insurance Broking brings you the best term insurance plans from the top insurance companies in the country.

Quick and Convenient

In a fast-paced world, with jam-packed routines, traditional buying needs a lot of time and patience. Online only term policies, on the other hand, are quick and convenient. Here’s how:

• Buy when you have the time; policies are available 24×7
• Reduced paperwork and approval hassle.
• Easy application, quick processing.
• Simple policy adjustment with changing times.

Access to Simple Customisation

Since one size doesn’t fit all, policy seekers are now looking for customisation while purchasing a term plan. Unlike traditional methods, digital platforms allow easy and simple customisation with different types of riders. Popular riders under term insurance include:

• Accidental Death and Disability
• Waiver of Premium
• Return of Premium
• Critical Illness.

The Overall Indian Digital Boom

In the last decade, India has witnessed a digital boom. Here’s how the digital boom has played a role in the growth of online-only term policies:

• Smartphone penetration increases in rural areas.
• Seamless digital transactions with UPI payment options eased online payments.
• Awareness and accessibility of term policies in both urban and rural India.
• The government’s encouragement towards digital adoption in India is evident through initiatives like Digital India.

Availability of Expert Help

For policy seekers and insured individuals who find term policies complex, insurance companies offer personalised financial advice tailored to each person's goals and needs, a feature that was previously lacking in traditional methods.

The Building Trust and Transparency

Online-only term policies addressed the issue of consumer scepticism and distrust stemming from misselling and hidden charges. Here’s how:

• Easy access to the Claim Settlement Ratio (CSR) of every insurance company.
• Aggregator platforms provide unbiased and true ratings and reviews of insurance policies.
• Pro-active measures taken by the Insurance Regulatory and Development Authority of India (IRDAI).

Despite the Benefits, Diligence Can’t Be Ignored

Despite all the benefits provided by online-only term policies, it is important to ensure diligence while purchasing a plan. Here’s a checklist to keep in mind before purchasing a term plan. Ensure that you:

• Explore and compare different policies available
• Carefully read the policy document to understand the inclusions and exclusions.
• Evaluate what kind of coverage is adequate for the needs of your loved ones.
• Disclose your information honestly, whether it is about your health, lifestyle, etc.

Closing Notes

The rise of online only term policies has benefited both the insurer and the insured. This transformation from traditional methods to a completely digital purchase has been driven by factors such as affordability, transparency, convenience and an overall digital boom in the country. These policies offer financial inclusion for all sectors of society.

As a policy seeker in Digital India, you must use such advancements to your benefit. Enter Jio Insurance Broking: A digital platform where you can compare, explore and purchase the best term insurance plans.