For most millennials, buying life insurance is not on their priority list. ...
Indian customers are now opening up to the idea of shopping online, be it for gadgets, clothes, accessories or even insurance. Consumers today, are more aware of the online distribution channel being used by various companies to sell their products. Fast-paced life and busy schedules are compelling customers to take the hassle-free online shopping route. More number of customers now book airline tickets, railway tickets, hotel accommodations online as it is much more convenient. Everything is accessible at the click of mouse and secure payments using internet banking, debit card or credit card. There are better deals and discounts available online as the seller is able to sell his products directly to the customer thereby reducing various overhead costs.
Insurance companies, realizing the potential of internet distribution channel, have taken the online plunge. There are eight insurance companies that are competing against each other with their low-cost online term plans. These companies are Aegon Religare Insurance, ICICI Prudential Life Insurance, Aviva Life Insurance, Bajaj Allianz Life Insurance, Future Generali, India First Life, Metlife Insurance and Kotak Life Insurance. Online term plans are cheaper than offline term plans as there are no agent commissions or distribution.
Aviva iLife, Aegon Religare iTerm Plan, IndiaFirst Anytime Plan, ICICI Pru ICare Term Plan are some of the options available for customers looking for low premiums and high coverage options. Aegon Religare was the first company to launch its online term plan in November 2009 and has sold over 17,000 policies. Aviva which launched iLife Term Plan in May this year has already sold over 4,800 policies. ICICI iCare is the latest policy launched last week replacing its previous online term plan iProtect.
Net-savvy customers look for information and comparisons online to get access to better deals from the comfort of their home or office. In India, one online term plan is sold every 18 minutes. The business done by private insurance players has caught the industry’s attention. Life Insurance Corporation of India (LIC) is also planning to launch an online term plan very shortly. As insurance companies compete against each other to offer attractive deals, customers are enjoying the benefits of lower premiums and instant life insurance coverage.
Also read - Online term plans gaining popularity because of low premiums