Literary genius Oscar Wilde once said that a cynic was 'a man who knows the price of everything and the value of nothing.' Drawing parallels with life insurance, ask those families who have lost their loved ones and received life insurance payouts as death benefits . Their stories are those of survival and how timely financial planning by the deceased helped steady their finances in a moment of grief. They wouldn’t label insurance as an expense, rather an ‘investment’. . Here are a few facts that will help understand what makes term plans affordable:
No Fund Management Charges
Term insurance plans unlike money-back plans, do not have a fund that needs to be invested and monitored. Hence, there are no portfolio or money management related expenses. This allows insurance companies to offer term insurance plans at highly competitive premiums.
Lower Distribution Expenses for Online Sales
Since term insurance is a simple insurance plan , it makes for a quick and hassle-free online purchase. The insurance company can save distribution charges for online sales, less paperwork, logistics and people cost and pass it on to the customers , making term insurance affordable .
No Hidden Comparisons
Online purchase also gives you opportunity for premium comparison between plans offered by various companies and within a company as well. In fact, people who have recently purchased offline term plan can use this online premium calculator and compare the quote with their existing policy and consider moving to an online term insurance plan.
However, a word of caution for those buying insurance plans online. Ensure that you have all the required personal, financial and medical details handy and fill them carefully. In the absence of an insurance agent or an intermediary, the onus for ensuring that you fill the right information and submit the required documents is with you alone.