Steps on How to Buy Term Insurance Online

• 26th Aug 2021
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Traditionally, most people relied on their insurance agents to purchase a policy. But, today, the insurance industry has evolved significantly. As most insurance providers offer online services, you can buy a policy of your choice with just a click of a button from the comfort of your home.

Buying a policy online is easy and convenient. However, if you are a first-time insurance buyer, the process may seem overwhelming. So, to help you, we list down a few mandatory steps that you must follow to complete the purchase. Read on.

● Assess your term insurance needs
The first is buying a term insurance policy is assessing your exact needs. You must take time to know how much coverage you need, the duration for which you need coverage, the maximum premium you can afford to pay, etc. Having this information will help you narrow down your choices and look for the right policy.
● Generate a quote for yourself
Based on your specific needs, you can start comparing the plans from different insurance companies and get a quote from them. Many online comparison sites allow you to compare different plans simultaneously. This will give you a clearer picture of what the plan offers.
Based on your initial comparison, you can shortlist a few plans and reach out to the specific insurer and get quotes from them. And, once you get the quote, it is advisable to make a detailed comparison of the plans in terms of the coverage offered, the premium applicable, payout mode, charges involved, medical test requirement, riders and additional benefits provided.
● Apply online and pay the premium
After you compare the quote, you would know the plan that best suits your needs and budget. Now you can proceed to buy term insurance online. Visit the insurer’s official website, fill the application form with necessary details, including name, age, sex, profession, income, etc., and submit the same along with the required KYC (Know Your Customer) documents.
While filling the form, you must be careful about entering the details. Make sure that you fill all the sections and provide correct information, especially regarding your health status. If you have any pre-existing condition, ensure that you mention its details. Also, don’t forget to provide nominee details. If you want to choose more than one nominee, you must enter details of the percentage of the payout each nominee receives.

Before you submit the form, it is a wise idea to re-check the form for any errors. And, once you submit the form and the documents, you may be directed to the payment page; pay the premium amount to complete the process.
● Medical test
After you submit the application form and pay the premium, the insurer will start the verification process. Based on the detail you provide; you may be directed to go through a medical examination. The insurer generally appoints the healthcare facility and guides you to the same for the test.
● Policy issue
After verifying your application form and the medical reports, the insurance company will decide whether to issue a term policy or not. If your application is approved, you will get a confirmation of the same through email, and you will get a physical and soft copy of the policy documents.

Final word

Death is one of the most stressful and traumatic events for the deceased person’s family. And, if the person is the breadwinner, the loss of income adds to the turmoil. So, now that you are aware of the steps to buy term insurance, make sure that you compare the details, buy a suitable term plan online, and protect your family from future financial hardships.

- A Consumer Education Initiative series by Kotak Life