How to Purchase Term Plan Online?

Managing your family’s needs often means balancing daily responsibilities with long-term financial planning. Along with regular income, many individuals look for ways to create financial support systems that can help their dependants if something unexpected happens. Term insurance is a type of life insurance policies people consider when exploring ways to secure their family’s financial stability. It is known for being simple in structure and easy to buy online, which makes it accessible for many. In this article, we explore how online term plans work and how to buy term plan online.

Steps to purchase a term plan online

Here's how to buy a term insurance plan online:

Select a reliable insurer: First, research thoroughly to find a trustworthy insurer. Check their reputation and claim settlement ratio, which indicates how efficiently claims are settled. Also, choose an insurer that offers a smooth and convenient claim settlement process.

1. Enter your information
   Visit the term insurance section on the insurer's website and enter basic details such as contact information, gender, date of birth, tobacco usage, and monthly income.

2. Enter the policy tenure and sum assured
   Younger individuals may opt for a longer policy tenure, while middle-aged individuals might prefer a shorter term. Since premiums increase with age, buying early helps secure higher coverage at affordable rates.

3. Choose the mode of premium payment
   Select a payment frequency that suits your financial planning:

   • Monthly instalments
   • Quarterly payments
   • Half-yearly payments
   • Annual payments

   You will also need to choose the payment term:

   • Regular payment throughout the policy tenure
   • Limited payment term (pay for fewer years)
   • Single premium payment upfront

4. Choose the death benefit payout mode
   Policies offer multiple payout options:

   • Lump-sum payout to clear major liabilities like home loans
   • Part lump-sum with monthly income for a fixed period
   • Regular monthly payments for a set duration
   • Monthly income that increases over time

5. Choose term riders
   Enhance your coverage by adding riders for an additional cost. For instance, a critical illness rider or an accidental death rider can provide extra financial protection.

6. Fill out the KYC form
   Provide personal details and upload documents such as Aadhaar or PAN, income proof, address proof, age proof, and recent photographs.

7. Fill in your medical details
   Declare information related to height, weight, lifestyle habits, current health condition, occupation risks, and past medical history.

8. Health check-ups
   Based on your age and sum assured, medical tests may be required. Applicants above 50 years usually need more comprehensive health evaluations.

9. Carefully read terms and conditions
   Review policy exclusions such as deaths due to substance abuse or terrorism. After acceptance, you will be redirected to the payment page.

10. Make the payment online
    Complete payment via debit card, credit card, or net banking. Once approved, the digital policy will be emailed, and the physical copy will be sent later.

     

What is a term insurance policy, and how does it work?

A term insurance plan is a pure protection policy that offers life cover for a specific tenure in return for premiums you pay for the policy. In case of your unfortunate death during the tenure of the term plan, the insurance company will pay an assured death benefit to your nominee. 

The death benefit received from the term plan will enable your family and dependants to manage their expenses and maintain their standard of living in your absence. The sum will provide them with financial security and act as an income replacement when you are gone. Your family can use the money to also fulfil their financial goals, such as higher education for your kids, paying home loan EMIs, etc. 
 

Term insurance plans do not offer any savings component or cash-value benefit. However, since these plans are not affected by the market movements, term insurance benefits are guaranteed# irrespective of how the market is performing. This makes term life insurance plans less risky and one of the most reliable insurance plans to secure the future of your loved ones. Moreover, online term plans with riders¹ help you enhance your insurance coverage. By opting for additional riders¹ such as Accidental Death, Total Disability Rider, etc., you can improve your online term plan. 
 

For example, assume Ram buys an online term plan for 20 years at the age of 22 with a sum assured of Rs. 40 Lakh. Ram pays regular premiums (as determined under the policy), but unfortunately, he dies due to an accident at the age of 35 (before the tenure expiry). In this case, the insurance company will pay the defined sum assured to Ram’s nominee, as specified in the term insurance contract. This will help Ram’s family manage their expenses and maintain their standard of living in your absence.

Conclusion

Losing a family member can create both emotional strain and financial uncertainty for those left behind. Having a structured financial safety net may help your family manage essential expenses in such situations. Term insurance, along with optional riders¹, is viewed by many as a one the suitable investment options to create this kind of support. The key is choosing a plan that aligns with your needs, financial responsibilities, and long-term goals. With the right approach on how to buy a term insurance plan online, you can make a more informed decision about protecting your family’s future.