When you look back at life, wisdom tells us that the unpredictability of life is what makes it valuable. We all work hard to ensure we and our next of kin have a comfortable and safe life. Keeping just that in mind, multiple financial instruments help increase financial stability and create a notion of security. Some of these financial instruments are insurance policies, investment opportunities like the stock market, and other saving-based banking products.
One of the insurance products is a term insurance product. Let us study and understand how term insurance plans can be a smart product to purchase for the safety of your family in case of an unforeseeable and unfortunate event.
What is Term Insurance?
Term insurance is a life insurance plan that provides monetary coverage for your loved ones for a stipulated period. If the person who has been insured unfortunately passes away during the policy period, the family is liable to receive a death benefit. But unlike a life insurance plan, you will not be getting a maturity benefit if you opt for a term insurance plan.
Difference Between Term Insurance and Life Insurance
While term insurance is a type of life insurance, there are some significant differences you must know before investing. The primary and most significant difference between the two is that the former provides a death benefit in case the insured dies during the term period while the latter offers both death and maturity benefit to the insured.
Online Life Insurance
Going the traditional route for investing in life insurance is a long process and includes third parties. But when it comes to online life insurance, you are in direct contact with the insurance company and will be eliminating the need for an agent. Getting an online life insurance policy saves time, money and does not require physical documentation.
Benefits of Online Term Insurance
An essential step while purchasing a life insurance plan is to compare and find the policy that suits you and your family the most. When it comes to an online life insurance plan, there are aggregator websites that make it easier for you to compare. You can make a note of the basic coverage each insurance company is offering, the credibility of the insurance company, what is the premium rate, the reviews of the customers who have invested in these insurance plans and then accordingly make an informed decision.
Getting an online term insurance plan will be 20-30% cheaper than getting the same offline. When you buy it online, you are directly in touch with the insurance company and do need an agent. The additional 20-30% is the agent’s fee which gets eliminated if you choose to do it online.
Another great advantage of online term insurance is that everything is digital. You do not need to worry about getting printouts and hunting down physical copies of important documents when you can go paperless and buy an online term insurance policy. What’s more, it takes away the stress that comes with doing paperwork since the insured has to fill out 2-3 forms on their own and provide the absolute essential details to buy an insurance plan.
If you are getting the term insurance offline, there is a small possibility that the insured company will not maintain complete transparency. Also, you will not always have access to all aspects of the insurance policy. But if you choose for online life insurance, transparency and easy access to all information are guaranteed!
Getting term insurance will always prove to be beneficial in the long run. It will help you and your loved ones in securing a stable financial future. Getting term insurance online helps in making the process