For most millennials, buying life insurance is not on their priority list. ...
Insurance awareness among Indian consumers is on the rise and insurance companies are leaving no stone unturned to gain an edge over their competitors by launching innovative plans. A lot of insurance companies are breaking out of the old vanilla plans to introduce insurance products to cater to different customer needs.
Life insurance policies contribute close to 4.4% of the total insurance penetration of 5.1% in India. This clearly indicates that customers are more inclined towards buying a life insurance policy over others. Compared to other life insurance plans, a term plan is regarded as an affordable plan with maximum sum assured. Considered as an important product, it provides financial security to family members in case of death of the policyholder.
Online term plans are gaining popularity and catching up with internet savvy customers. The biggest reason for this is the price advantage. Online term insurance plans are cheaper than the ones that are traditionally sold offline.
“I was looking to buy a term plan and contacted an agent. An office colleague overheard my conversation and helped me calculate premiums online. To my surprise there was a huge difference in the premium rates and I eventually bought the online plan,” says one customer.
Companies like Aviva Life Insurance, Aegon Religare Life and a few others have brought about a much needed positive change in bringing down the premium rates of term plans. Aviva launched its online term plan i-Life which is the cheapest online term plan available in the markets. For age 30 years and a Rs 50 lakh cover, the premium rate for Aviva i-Life term plan is only Rs 4,550. The online term plan of Aviva is more than 60% lower than their offline term plan – Aviva Life Shield Plus.
For the same criteria, the premium for Aegon iTerm plan and ICICI iProtect term plan is Rs 6,177, while Future Generali Smart Life term plan will cost Rs 8,879. Other online term plans available in the markets are IndiaFirst Anytime Plan, Met Protect, Kotak e-Term etc.
The best part about buying term plans online is hassle-free and convenient process which is completely secure. There are no intermediary agents involved; company saves on distribution costs, which is passed on to their customers in the form of low-cost online term plans.