How To Buy Term Insurance Online | Step-By-Step Process 

Term insurance, without a doubt, is one of the best ways to safeguard your family’s financial future. However, the buying process could be cumbersome - and if you are planning to buy it offline, the formalities can be a put-off, making you postpone your purchase.

Thankfully, we are living in a predominantly digital-driven age. Whether it is shopping, getting food at your doorstep, or talking to your loved ones - everything that once required you to step out of your house is now just a click away. The e-commerce boom has made insurance policies readily available at your fingertips too.

If you are confused about how to go about buying a term insurance policy online, this article will help you out!

Steps To Purchase Term Insurance Online

Interested in purchasing term insurance online but not sure where to start? Here's a simple step-by-step guide to help you navigate the process effortlessly -

• Step 1: You can easily find our website by searching for it in a search engine if you want to purchase a term insurance plan online.

• Step 2: You can view every term insurance plan we provide by selecting the "All Insurance" tab and dragging it in the direction of the life insurance type you want to purchase, like term insurance.

• Step 3: You can also review the brochure, policy wordings, and other crucial details to learn about the benefits each plan provides.

• Step 4: You can zero down on a plan and enter all your personal details as mentioned after making up your mind about the plan you want to purchase.

• Step 5: Next, you can tailor the plan according to your requirements to fit your demands and financial constraints. You can ensure by choosing the desired level of coverage, any add-ons, and policy terms according to your needs.

• Step 6: Lastly, you can proceed with the application by clicking on submit.

How To Choose Suitable Term Insurance Online?

Embarking on a journey to choose the most appropriate term insurance online? Here's a comprehensive guide to help you navigate the process seamlessly and make informed decisions tailored to your needs and preferences.

1. Deciding The Sum Assured
The very first step involves deciding how much sum assured to choose. The amount you buy should be sufficient to cover your family’s short and long-term expenses in your absence.

The best way to find out how much cover amount will be appropriate for your family is to calculate the gap between what you will leave behind and what your family needs are. In short, calculate the amount you owe (short-term expenses, long-term financial goals, loans, etc.) and the amount you own (savings, FDs, investments, etc.)

The difference between these two amounts is the financial gap you need to cover through the term insurance policy. Remember to factor in inflation of around 6-8%~ on this amount - to ensure the cover you buy today is sufficient for your family in the future.

2. Policy Features And Customisations
There are a variety of features, benefits, and customisation options available with a term insurance policy. With these options, you can design the policy exactly as per your and your family’s requirements. Here are a few common customization options-

3. Policy Tenure
This is the duration till which the insurance company will provide you with the term insurance coverage. Based on your future and on. based on your plans and goals, you can buy a policy for a duration of 60 years, 65 years, 70 years, and so on. Some insurance platforms also offer a term cover till the age of 99/100 years. You can select this if you want to buy a cover for your entire lifetime.

4. Premium Payment Duration
This is the period for which you will need to pay the term insurance premiums. The premium payment duration can either be less or equal to the policy duration selected by you.

Here are the three most common premium payment term options available with term insurance -

• Regular Pay Option, where you will need to pay the premiums till the end of the policy duration you select.

• Limited Pay Option, where you can finish paying off your premiums in a limited number of years.

• Single Pay Option, where you need to make the premium payment only once - at the time of buying the term insurance.

5. Premium Payment Frequency
In addition to the premium payment duration, you can also customize the frequency of premium payments under your policy. You can choose from the yearly, half-yearly, quarterly, and monthly payment options.

If you can afford to pay large payments, you can choose the yearly payment option. If you can’t, you can choose any one of the other options.

6. Claim Payout Option
Term insurance also allows you to configure how you want your family to receive the claim amount - if you pass away during the policy tenure. The three most common claim payout options include -

• Lump-Sum Payout Option: Here, your family will be paid the claim amount in a lump sum instalment in one go.

• Monthly Income Payout Option: Here, your family will receive the claim in monthly instalments for a specific period.

• Lump-sum + Monthly Income Payout Option: Here, a part of the claim amount will be paid as a lump sum. The remaining part will be paid in monthly instalments for a certain number of years.

7. Increasing Cover
If you choose this option, the sum assured of your policy will keep on growing automatically until it reaches a maximum limit specified by the insurance company. An increasing cover option is the best way to inflation-proof your term insurance cover. You can also select it if you are not eligible to buy a sufficient term cover for your family.

8. Riders
Riders are add-ons that offer extra protection and provide an additional payout under specific circumstances. An accidental death benefit rider, for example, will pay an additional sum of money to your family if you pass away due to an accident.

The riders you can select with your term insurance will differ across insurance companies. Here are few common ones which you may choose in particular or all together:-

• Critical Illness Rider
• Accidental Disability Rider
• Accidental Death Benefit Rider
• Surgical Care Rider
• Hospital Care Rider
• Waiver of Premium due to Critical Illness Rider
• Waiver of Premium due to Accidental Disability Rider

9. Find Matching Plan And Insurer
Next, you should search for a plan that offers all the features and customizations you want to buy. And, you should look for an insurer who has a strong and long track record and reputation in customer service and claims. You can go through the reviews of previous customers to find out if the insurer you are planning to buy from is good or not.

After you zero down on a plan and insurer, you can visit the insurer’s website and select the product you want to buy. You can fill in the basic details and select all the appropriate features, customization options, etc.

10. Read The Benefit Illustration
After you provide all the required details and select the customizations, you will get a benefit illustration, a document that will include details about your policy. You will either get an option to download this document from the insurance company’s website, or the insurance company will email it to you.

The benefit illustration will give you an in-depth understanding of the term insurance policy you are planning to buy - like the policy tenure, premium payment duration, features, riders, etc. that you select, surrender value and maturity benefit (if any), etc. So, it is important that you go through the benefit illustration carefully before going ahead.

11. Application Process
Here, the insurance company will ask you to provide several details that include -

• Personal Details: Your occupation, age, income, education qualification, temporary and permanent address, etc.

• Lifestyle-Related Details: Your smoking habits, alcohol consumption, hobbies, etc.

• Medical Details: Your medical history, family’s medical history, surgeries or treatments you may have undergone, and so on.

• Basic Body Measurements: Your blood pressure, height, weight, etc.

• Other Details: Related to your nominee, future travelling plans, etc.

Please note this is just an indicative list of the details you will need to provide at the application stage.

12. Documents Submission
The insurance company will ask you to submit certain documents to support your application. Some of the documents you may need to submit include -

• Proof Of Age: PAN Card, Aadhar Card, Passport, Voting Card, etc.

• Proof Of Income: Salary Slips of the last 3 months, Bank Statement of the last 6 months, Employer's Certificate, Income Tax Returns, Form 16, etc.

13. Paying The Premium
After the application process is complete and you submit all the necessary documents, you will have to make the first premium payment. The premium amount will be determined on the basis of several factors like your age, gender, lifestyle habits, the cover amount you choose, policy duration you select, features and customizations you opt for, etc.

To ensure your premiums are transferred to the insurer directly during your policy renewal, you should set up standing instructions on your bank account. Make sure you don’t put standing instructions on a credit/ debit card, as the cards come with an expiry date - so your payment might not go through smoothly.

14. Medical Evaluation Including Undergoing Medical Tests
You may also have to undergo some medical tests based on the declarations you make in the proposal form, your medical history, your family's medical history, etc. Some of the tests you may need to undergo include a blood test, a treadmill test (TMT), a drug test, an HIV test, an electrocardiogram (ECG), etc.

15. Underwriting
After this, your policy application will be evaluated by underwriters - a team of qualified professionals at the insurance company. They will do a complete financial and medical evaluation. Based on the income and other documents you submit to the insurer, they will assess how much coverage you are eligible to buy. They will also examine the details you provide on the proposal form as well as your medical test results to estimate the risk you provide to the insurance company.

After the underwriting is done, the insurance company may -

Accept your proposal and issue you the term insurance policy.

OR

Reject your proposal if your profile is too risky.

OR

Make a counteroffer - they may apply loading, i.e., ask you to pay a higher premium. If you pay the extra premium, the policy will be issued to you.

16. Free Look Period
After the term insurance policy is issued and you receive the policy document, you will be given a free look period of 30 days, during which you can check all the details in the policy document and review the terms and conditions, limitations, exclusions, etc. If you are not satisfied with the policy features or the terms and conditions, you can return the policy. The insurer will return the premium amount you paid if the policy is cancelled in the free look period - after deducting certain charges like stamp duty, administration fees, etc.

Where To Buy Term Insurance From?

ABSLI brings to you term insurance products that are flexible and completely tailored to your needs. We promise you a smooth digital purchase experience.

• ABSLI Salaried Term Plan [UIN: 109N141V03] The ABSLI Salaried Term Plan is a premium, all-inclusive insurance option specifically tailored for those with salaries. It offers you the flexibility to create a plan that best meets your protection needs. This plan provides the flexibility of a lump sum benefit and monthly income cover options. The plan has provisions for the Death Benefit, Terminal Illness Benefit, Maturity Benefit, Accelerated Critical Illness Benefit and more. Your family will be provided with necessary financial protection during times of need.

• ABSLI DigiShield Plan [UIN:109N108V13] What sets this plan apart from other term plans is that it provides you with a Whole Life Cover (up to 100 years of age). It offers a Death Benefit to your nominee if, unfortunately, you don’t survive the policy term. And a Maturity Benefit (with the Return of Premium Option) to you, if you survive it. It also gives you Limited Pay and Increasing Cover options. Plus, a variety of essential Riders will make your policy complete.

Wrapping up!

In conclusion, purchasing term insurance online offers convenience and flexibility, allowing you to secure your family's financial future with ease. By following the simple steps outlined above, you can navigate the buying process effortlessly and customize a plan that suits your needs perfectly. With options for sum assured, policy features, customization, and riders, you can design a comprehensive policy that provides the protection your loved ones deserve. Take advantage of the digital age and ensure peace of mind for yourself and your family by investing in term insurance today!