Term insurance is one of the most basic and simple types of life insurance policies that are offered by life insurance firms. Unlike whole life policies, term insurance policies provide the policyholder coverage for the duration of the policy tenure. These policies provide a risk cover against death on the life of the policyholder. If the policyholder passes away during the policy tenure, a death benefit is paid to the nominee.
Although these plans do not provide a savings option to policy buyers, they offer a relatively high sum assured at a low price since there is no cash value attached to these policies. For this reason, term insurance policies are a popular choice for policy buyers. As a prospective policy buyer, you can choose to purchase your plan through offline or online channels. Here are the steps that you need to follow to purchase a term insurance policy online.
Insurance policies can be purchased through the insurer’s official website or through third-party websites. You will have to note that not all insurers will offer all insurance plans online. If you choose to buy the plan through a third-party website, you have the added option of comparing between insurance plans offered by various insurers.
You will have to enter certain basic details on the website, such as your name, contact information, date of birth, sum assured expected, income, etc. This information will help the insurer display suitable insurance plans. You can go through the benefits and features of each plan, and select the one that best matches your needs.
Next, you will have to fill up an exhaustive proposal form. All details about yourself including personal information, professional details, nominee details, and CKYC details will have to be entered into the website, on this form.
You will also have to furnish certain documents, such as a valid ID proof, address proof, PAN card, etc. to the insurer. You will be notified of what documents you need to provide during the form-filling process itself. These documents can be uploaded to the insurer’s website.
You will then have to pay your premium as per the premium payment mode that you have opted for, via the payment channels that are available on the insurer’s website. Once you have paid the premium, you will be sent a confirmation email to your registered email ID.
Certain individuals will be required to undergo a pre-policy medical screening in order to purchase the policy. The medical test will have to be conducted at a medical centre that’s recognised by the insurer, and the medical report will be sent to the insurer by the medical centre.
Upon the successful verification of all the documents and medical reports that were submitted to them, the insurer will issue the policy document, which will then be sent to the life assured. Post this, you can enjoy your policy coverage and continue paying the premiums in a timely manner, before the end of the grace period to keep your policy from lapsing.