Life’s uncertainties can often derail carefully laid plans. However, if you are looking for a solution to ensure that even in the face of uncertain circumstances, your loved ones can continue to live comfortably and achieve their life goals, you can always buy term insurance and secure your family’s financial future. If you are wondering about "What is term plan?" or "How to buy term insurance?" here is everything you need to know about offline and online term plans.
Let us begin at the basics -
What is term plan?
A term plan is an insurance policy that gives you a life cover. Term insurance is the purest and the simplest form of life insurance. Additionally, it is also the most affordable type of life insurance. Since the life cover offered by a term plan is valid and remains in force for a particular period or "term", it is named this way.
In a term plan, the insurer provides the policyholder with a life cover for a specific tenure in return for periodic payments. These payments, made to the insurer, are known as premiums. In the event of the unfortunate demise of the policyholder during the tenure of the plan, the insurer disburses a certain sum of money, also known as a death benefit, to the nominees or beneficiaries of the policyholder.
Now that you know the answer to "What is term plan?" and have understood how it works, it is time to look at how you can purchase one. Primarily, you can buy term insurance through online or offline channels. Let us take a closer look at online term plans and offline term plans.
What is an online term plan?
As the name makes it evident, an online term plan is a term insurance policy that can be purchased online. You can make your purchase directly from the website of the insurance service provider offering the plan of your choice.
The process of buying an online term plan is simple and hassle-free. Here is a systematic walkthrough of the general process involved –
1. Log into the website of the insurer from whom you wish to purchase the term plan online.
2. Select the plan you wish to purchase and submit the details needed. Ensure that you enter the correct and complete details regarding everything on the proposal form.
3. In case there are any variants of the plan you intend to purchase, make your choice of the variant.
4. Submit the duly filled in documents.
5. Make the premium payment online. Most online purchase channels support payment options like credit/debit cards, net banking, and more.
That is how simple it is to buy an online term plan.