Buying Online Term Plans- Things to know

Insurance companies offer individuals the facility of buying online term insurance through company websites. The plan offer the benefit of lower premium rates for the insured. The insurance provider can pass on this benefit to investors because online mode saves the distribution costs.

APPLICATION FORM: The buyer must fill in the online application form and choose the sum assured as well as policy term. The premium applicable to the individual is disclosed based on age, gender, policy term and sum assured.

HEALTH CHECK-UPS: The term insurance policies bought online may not require a health check-up for certain age groups, non-smokers, non-tobacco users or for a cover less than a threshold set by the insurance company.

PREMIUM:The individuals who are eligible for non-medical processing pay the standard premium. In other cases, the premium payable can be increased depending on the results of medical tests.

PAYMENT: The individuals who are eligible for non-medical processing pay the standard premium. In other cases, the premium payable can be increased depending on the results of medical tests.

-> The individuals falling in the category that does not require health check-ups get the cover immediately.

-> The premium for all online term insurance policies is also eligible for deduction under section 80C of Income Tax Act.

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