Online Term Plan
With the increasing unpredictability of life, you cannot afford to be caught off-guard – at least financially. Insurance instruments like the online term plan are designed to help you plan your future eff...Read More
Understanding Online Term Insurance?
An term plan is a type of life insurance that you can buy over the internet. Unlike traditional term insurance, online term plans allow you to compare, analyse, and select the appropriate financial life insurance coverage from the convenience of your own home.
Term insurance purchased online allows you to:
- Examine the features and benefits of various term insurance policies.
- Determine how much of a premium you will have to pay for the term insurance coverage you want.
- Recognize the many rider alternatives available with these plans.
- Save money on premiums when compared to purchasing a normal term insurance plan offline.
- Significantly reduce the time it takes to buy something.
What to Look for in Term Plan?
Claim Settlement Ratio (CSR)
The Claim Settlement Ratio or claims paid ratio indicates how many claims have been settled out of the total number of claims submitted in a given year. You can figure out the likelihood of your claim being settled by looking at this number.
Ratio of Solvency
The solvency ratio indicates whether or not your insurer is financially capable of settling your claim if it becomes necessary. All insurance carriers must have a solvency ratio of 1.5, according to the IRDA (Insurance Regulatory and Development Authority).
Another important thing to check when looking for the best online term plan is whether the insurer offers rider benefits. Critical illness, premium back benefit, accidental death, and permanent disability insurance riders, among others, should be available to add to your term online term plan.
You should always examine if a product's features and benefits match your needs before purchasing it. To pick the best online term insurance plan for you, make sure you read the policy's terms and conditions, perks, and so on from various insurers.
Why Should You Buy Online Term Plan?
With the online world becoming increasingly user-friendly, many insurance firms now provide the option of purchasing coverage online. Traditional term insurance policies have been replaced by online term plans as the new-age alternative. Policyholders may now choose the best plan for them online, and even calculate the premium they will have to pay based on the coverage they need.
Simply put, online term plans provide greater convenience and allow policyholders to take advantage of the best features from the comfort of their own home.
Let's take a look at some other benefits of buying term insurance online:
1. Lower PremiumsWhile purchasing a term plan online, you get lower rates of premium as compared to offline purchase. This is mainly because when you buy term plan online , it eliminates the need of an insurance advisor. This essentially means that the insurance firm can save on the cost of commission and the benefits can be forwarded to the policy buyers in the form of reduced premium rates.
2. Time - SavingThis is a no-brainer when it comes to buying term insurance online. One of the significant benefits of buying term plans online is the time you can save which would be spent otherwise on multiple visits to the office branch. For online buyers, most insurance providers now have mobile-friendly websites and processes.
How to Choose the Right Term Insurance Plan Online?
When it comes to term insurance, there is no such thing as a one-size-fits-all solution. Your term plan should be tailored to your specific needs and ensure that your family is not financially disadvantaged in the case of your death.
So, when you are looking for suitable online term plans, the following considerations can assist you in selecting the best plan for your needs:
Make A Thorough Evaluation of Your Requirements
If you are the sole breadwinner of your family, it is best to figure out how much money is needed to ensure that the family can meet their living expenditures and maintain their level of life in case of an unfortunate event. To arrive at a figure, you should consider the family's living expenses as well as the rate of inflation. There are other factors such as your liabilities which should be factored in to estimate the ideal coverage when you are looking for online term plans. This will enable you to find the best online term insurance plans that fits your financial requirements appropriately.
Arrive at a Suitable Sum Assured
When you buy term plans online, look for the variety of payout options as well as the premium paying options available with the plan. Most importantly, you, as the policy buyer should have the ability to customize the coverage offered by the online term insurance plan.
Add Relevant Riders
Aside from the death benefit provided by a term plan, several riders provide additional coverage. You will find a variety of such riders when you buy term plans online. Common riders such as disability coverage, critical illness coverage, and premium waiver coverage can be added for a little additional price.
Steps to Buy Online Term Plan
We, at Max Life Insurance are committed to making financial security more accessible to people with diverse financial backgrounds. Hence, our term plans are available for hassle-free online purchase. With the help of an online term plan calculator, you can evaluate your insurance requirements in a few quick steps.Let’s follow the purchase journey of Abhay, a 33-year-old man looking for online term plan to understand how it works:
The first step for Abhay is to enter basic personal details such as his name, contact details, gender, smoking habits, date of birth and annual income range. These are crucial factors which will determine the coverage amount and duration when he is buying an online term plan.
Next, Abhay selects the nature of his occupation, which is salaried and his education level. Depending on these factors, the online term plan calculator may show varying results for coverage amount, duration and consequently, the premium rates.
At this stage, Abhay can see an estimated premium amount for a cover of Rs. 1 crore which will last till he is 60 years old. He has the option to pay the premiums till the maturity of the policy, which is 27 years, or to wrap up the premium liabilities within the first 10 years of the policy period. Depending on what he chooses, varying premium rates will be displayed.
Next step is to attach rider benefits to his policy. These riders will come with a nominal additional premium with the online term policy. Adding these will lead to a changed premium rate along with enhanced coverage benefits for Abhay.
Once he has decided the rider benefits to be added to his online term plan, he must provide other personal details such as email address, full name and click on proceed.
Lastly, he must select the payment method to complete the purchase of the online term plan, depending on the mode of payment most suitable to him.
Once this process is complete, he will receive a confirmation e-mail and message from Max Life Insurance with the policy document of the online term plan.
Why should you choose Max Life Term Plan?
(Source: Public Disclosure)Company of the year*^*
Over 2 Lacs+ Users
In force (individual) (Source : Max Life Public disclosure, FY 20-21)
Frequently Asked Questions
When you buy a standard term plan online, you will only be eligible to receive the death benefit. However, there are premium back option available with policies which can be added to receive a maturity benefit from the policy.
Term insurance is a life insurance policy, and insurance firms rely on risk assessments. Insurers charge you a greater premium if you are at a higher risk of contracting a severe illness. If you smoke, your premium will be more than if you are a non-smoker.
Yes, the policyholder can claim a tax benefit of up to INR 1.5 lakh under Section 80C of the Income Tax Act, 1961.The tax benefit are as prevailing tax laws subject to change.
Premiums for online term plans can now be paid safely and securely online. Insurers make it a point to keep their security systems up to date in order to provide a secure process that allows policyholders to pay their premiums in the shortest period feasible.
The following documents are required to purchase term life insurance online:
- Proof of age
- Proof of address
- Proof of income/Salary slips
- Passport-sized photos taken recently
- Necessary medical reports
Please keep in mind that an insurance company's paperwork requirements may vary from case to case.
ARN NO: PCP/OTP/090322
Online Insurance Plans by Max Life Insurance
- Max Life Smart Term Plan
Financial protection against critical illnesses, including heart attack, cancer, and kidney failure
Flexibility to choose the most suitable premium payment options that fits your budget and incomeKnow more
Life coverage along with return of premium option to get the premiums paid back as a survival benefit
- Max Life Cancer Insurance Plan
A comprehensive Cancer Insurance Plan that provides a payout at all stages of Cancer
Get 10% increase in original sum assured in case of no claims for the first 5 years
20% of Sum Insured - Waiver of premium, in early stage diagnosis
Lumpsum payout - annual income for 5 years in major stage diagnosisKnow more
Tax benefit under section 800 as per prevailing tax laws
- Short Term Income
Guaranteed income benefit at the end of the policy term based on the chosen frequency for the payout period
Lumpsum guaranteed death benefit payable to the nominee after the death of the life insured during policy termKnow more
Multiple premium payment tenure and policy period options to fit your profile and specific requirements
- Long Term Income
Guaranteed income benefit for 25 or 30 years after the policy period ends, as per the sub-variant selected
Terminal benefit which equals total premiums paid, post completion of the payout period payable to nomineeKnow more
Two premium payment options – 6 and 10 years to be chosen as per suitability of the plan for your needs
- Term Plan with Return of Premium
Option to receive the premiums paid back on successful survival of the insured till end of policy term
Death benefits for your family members in case of any eventuality leading to the loss of your lifeKnow more
Limited pay options to pay for term plans with return of premium - 5 Pay, 10 Pay, 12 Pay, 15 Pay, or 60 Pay
- Max Life Critical Illness and Disability Rider
Additional protection against upto 64 critical illnesses depending on the rider variant you select
Total and Permanent Disability Cover on the occurrence of disability arising from sickness or injuryKnow more
Wellness benefit to avail a discount on annualised renewal premiums as per healthy weeks you accumulate
- Max Life Waiver of Premium Plus Rider
Waiver of all future premiums in case of the covered dismemberment so that you can live worry-free
Future premiums waiver in case you suffer from critical illnesses as specified in the rider termsKnow more
Continued benefits of the base policy to give you peace of mind about maintaining various life expenses
Additional Benefits Through Riders| Max Life Insurance
Max Life Waiver of Premium Plus Rider (UIN: 104B029V04)
Max Life Waiver of Premium Plus Rider (UIN: 104B029V04) provides waiver of all future premiums in case of Critical Illness or dismemberment or Death (only when Life Insured and Policyholder are different individuals). This product doesn’t have an in-built Waiver of Premium benefit and thus rider benefit is an additional benefit. For more details on the Rider and various terms and conditions, please refer to the Max Life Waiver of Premium Plus Rider Prospectus/Brochure, Rider Contract, Rider Rates & Rider Leaflet
Max Life Critical Illness and Disability Rider (UIN: 104B033V01)
Max Life brings a comprehensive insurance plan that covers up to 64 critical illnesses along with total and permanent disability coverage. You can choose the best variant for you from the five available variants. You will be also be eligible for a discounted renewal premium based on the number of steps monitored on Max fit app. You can even choose to get a cover up to age 85 years. (For further details, please refer to Max Life Critical Illness and Disability Rider, UIN – 104B033V01, prospectus/brochure
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