10 Lesser-Known Features of Online Term Insurance Plans

Insurance is no exception to the trend of shopping online. As there are so many online term insurance policies to pick from, it’s crucial to find one that meets your family’s needs.

There are many online term insurance plans that can protect your family’s financial future in the case of your premature death. If you are the primary breadwinner in your family, these plans may be especially beneficial.

Why Should You Purchase Term Insurance Plans Over the Internet?

Term insurance is a straightforward financial tool. You can, however, combine numerous perks and make use of the features to make life easier for you and your family.

Here are ten lesser known features of online term insurance plan that you should be aware of:

  1. No-Paper Process

You may recall seeing your parents or grandparents leafing through pages before purchasing an insurance policy. You’ll be bothered by the policy documents and formalities that must be completed to finish the process.

When you get term insurance online, you avoid having to deal with any paperwork. If any documents must be submitted as part of the process, you can scan them and upload them to the website. The paperwork does not need to be signed and mailed to the company’s headquarters.

  1. Increasing Life Insurance Coverage

Your responsibilities and liabilities may expand as you get older. You’ll need a term plan with expanding life cover to make sure your term plan keeps up with your rising liabilities. When you buy a term plan online, you have the option of expanding your life protection.

  1. Payment of Income Benefits on a Regular Basis

Each person’s financial situation is unique. As a result, if something happens to you, your family’s needs for the sum assured may differ from those of others. You can pick how you wish to receive your payment (monthly income, lump sum, or a combination of both) with the iSelect Star term plan:

  • You may prefer to receive the cash assured as a lump sum if you have outstanding liabilities.
  • If you were your family’s sole breadwinner, the family would prefer to receive the sum secured as monthly income.
  • If you want a mix of the two, you can choose from 25 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea} and 75 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea}, 50 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea} and 50 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea}, and 75 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea} and 25 {e4cc0beb5dd98af13eb34c0ae029980e343be918b455e10afea6fec3574e4eea}. The recipient will get a monthly income for 120 months or until the policy term expires if the beneficiary chooses the monthly option (whichever is earlier).
  1. Full Life Coverage

When you acquire a term insurance plan online, you’ll notice that all term insurance plans provide significantly more coverage. Many whole life insurance policy provide coverage up to the age of 99.

  1. Critical Illness Coverage

If you buy a term plan online and add the optional critical illness insurance, you will get a lump sum payment if you are diagnosed with a critical illness. The sickness, on the other hand, should be mentioned and covered in your policy.

  1. Accidental Death Benefit

In India, most online term plans let you to add an accidental death benefit to your policy. It provides financial security to your beneficiaries in the event of future misfortunes.

  1. Tax Benefits

If you do your homework before purchasing a term plan online, you will discover that you are eligible for several tax benefits. The Income Tax Act’s Sections 80 C and 80 D provide special considerations in the form of deductions. However, tax laws are subject to change from time to time.

  1. Various Premium Payment Methods

When purchasing a term plan online, you have several premium payment choices to select from. In India, term insurance policies come with a variety of payment alternatives to meet your needs. It is critical to consider this element before purchasing a term plan online. Monthly, bi-monthly, half-yearly, or yearly premium payments are available with the regular premium payment option. You can also choose a single premium plan, in which you pay for the complete subscription at once. Make your calculations ahead of time before purchasing a term plan online.

  1. The Ability to Choose Your Own Payout

Before you buy a term plan online, be sure you understand the various payout alternatives available. The option you select will affect your family’s financial security while you are away. Typically, you will have two payout options: monthly income and a lump sum payment. In the fixed monthly income plan, your family will be paid a set amount of money each month for a set length of time.

You give the nominee the option of receiving the entire death benefit as a lump sum payment. This approach will help your family deal with inflation.

  1. Strengthening the Policy with Additional Riders

When you buy a term plan online, you can add riders or add-ons to your policy to increase its coverage. This is a characteristic that almost all term insurance plans in India provide. With the waiver of premium rider, you can improve your policy. If you become critically ill or incapacitated, you won’t have to pay any more premiums.

If you are diagnosed with a disease, having a term plan that includes this coverage will come in handy. Because you can’t anticipate the future, it’s a good idea to add an accidental death benefit rider to your policy. When you are not present, it will ensure that your family is well cared for. Please note that riders are not mandatory and come with additional cost.

  1. Reasonably Priced

When you look into buying a term plan online, you’ll notice that it’s less expensive than other types of life insurance. In India, term insurance plans do not include an investing component, despite the fact that the premium is substantially cheaper than other insurance plans. However, because keeping your loved ones financially safe and independent in the event of a disaster is a key priority, investing in a term plan ensures that they are financially secure even if you are not around.

The term insurance calculator, which is available online, is a tool that will assist you in better understanding your requirements. When purchasing a term plan online, you will notice that most insurance providers provide this service. It will assist you with your financial planning.