5 Features of Online Term Insurance Plans

When everything important in your life is going well, even thinking of a contingency can make you cringe. However, life may still surprise you, especially if your preparation is inadequate. More so, for the people you are responsible for, i.e., your family.

Term insurance plan is one of those investments you can have to ensure survival and stability in your dependent’s lives after you. A term insurance plan is the purest form of insurance. You pay the premium amount based on the coverage you want. In case of your death, the nominee gets the sum assured by the insurance company.

Term insurance is a simple financial instrument. However, you can add multiple benefits and use the features to make life easier for yourself and your family.

Here are five lesser-known features of online term insurance plans you should know about:

• Paperless Process: You may have seen your parents or grandparents going through pages before buying a policy. If you plan to buy a term plan offline, you may need hours to go through all the documents. You may have to sign a number of documents as part of the process. In short, you will be troubled with the policy papers and formalities to complete the process.
  
  When you decide to buy term insurance online, the process is 100% paperless. If you require to submit any document as part of the process, you can scan the document and upload it on the website. You don't need to sign and mail the documents to the company's office.

• Increasing Life Cover: As you grow old, your responsibilities and liabilities may increase. To ensure your term plan is in line with your growing liabilities, you need a term plan with increasing life cover. Canara HSBC Life Insurance iSelect Smart360 Term Plan gives you the option to choose increasing life cover when you buy the plan online.
  
  For example, as your children grow in age, the educational cost will increase for them. If something happens to you, you need to ensure they continue to have the best education. For that, your term plan cover should also increase correspondingly.
  
  When you select the 'Increasing' coverage option under the iSelect Smart360 Term Plan, your insurance cover increases by 5% per annum (simple interest) every policy year. The maximum increase will be 100% of the original sum assured. For example, if you would have bought term insurance with an initial cover of ₹ 50 lakh, in the 20th year of your policy, the sum assured will be ₹ 1 crore. Post that, it remains the same.

• Regular Income Benefit Pay Out Option: Every person's financial condition is different. So if something happens to you, the way your family would need the sum assured can differ from others. iSelect Smart360 Term Plan gives you the option to choose how you want to receive the payout (monthly income, lump sum, or combination of both):
  
  
  1. If you have existing liabilities, you may like to receive the sum assured as a lump sum
  2. If you were the only breadwinner in your family, the family would want to receive the sum assured as monthly income.
  3. If you are looking for a combination of both, you can choose the proportion - 25% and 75%, 50% - 50%, and 75% and 25%. With the monthly option, the beneficiary will receive the monthly income for 120 months or till the end of the policy term (whichever is earlier).
• Plan Your Legacy: If you select the Life Plus option of the iSelect Smart360 Term Plan, you get a life cover till 99 years of age. It is far above the average life expectancy in India. It means your family will receive the sum assured even in the case of your natural death. They can use the sum assured for any purpose - they can buy a property or gold to remember the legacy you have left behind for the future generation.
• Default Terminal Illness Cover: Another life event that can leave your family in financial turmoil is a terminal illness. One way to protect yourself from this is to buy a separate terminal illness cover. However, Canara HSBC Life Insurance iSelect Smart360 Term Plan comes with default terminal illness cover.
  
  You get a cover against terminal illnesses with a slight increase in premium amount. If you buy a separate policy, you may have to pay a much higher premium to receive a cover of the same amount. Under the iSelect Smart360 Term Plan, if you are diagnosed with a terminal illness, the sum assured is paid to you.
  
  Learn: if you should take a terminal illness cover with yout term insurance plan.

Benefits of Online Term Insurance Plan

You may have avoided term plan all this while assuming buying a term plan is a long and time-consuming process. You can shop your favourite products online in minutes and save both time and money. Similarly, you can purchase a term insurance plan online.

When you buy a term plan online, you get the following benefits:

1. You don't have to spend time travelling to the insurance company's office.
2. With online purchases, there are no brokers, and you buy directly from the company. Hence you save cost.
   
3. Easy to go through the policy details.
   
4. Making payments takes no time, and you can pay using your preferred payment mode.
   
5. You get the policy in your inbox, no headache of storing the original copy of it.
   

Buying a term insurance plan online is very easy. You have all the options in front of you. You can select the options as per your need, make the payment and receive the policy document within minutes in your mailbox.