Online exclusive term plans: All you should know

Due to Covid-19 pandemic, the Indian insurance industry witnessed dramatic changes. Now more and more companies have adopted advanced technology to improve customer services. One can buy an insurance policy online without any agent or point of sales person (POSP). A large number of term insurance policies are sold online.

Online sale of term plan is gathering more attention after Covid-19 pandemic. In the last financial year, one out of five term products being bought through online.

Benefits of online insurance

Online is one of the best ways to purchase insurance. Now one can buy it even from the comfort of his or her home. Some of benefits are:

– Online insurance is cost-effective. It saves you the distributor’s commission as the policy is bought directly from the insurer. No middlemen are involved to charge you further.

– While buying insurance online, the customer can simply choose to compare the prices from various insurers for the similar policy on offer.

– Online insurance comes with the benefit of free documentation and bare minimum paperwork compared to an offline purchase.

Online exclusive policies

There are some term insurance policies only available online. These policies are not available via an agent or adviser.

1) Sampoorn Suraksha

This is a group, non-linked, non-participating, pure risk premium life insurance product offered by SBI Life Insurance. It provides comprehensive insurance benefit package for formal and informal group. This plan can be renewed annually. Sampoorn Suraksha can be purchased by a minimum group of 10 people through the YONO app of State Bank of India (SBI).

Eligibility criteria

–  The minimum sum assured allowed is Rs 1,000 per member, while the maximum limit is Rs 50 crore per group member.

–  This policy to be renewed annually. The premiums are allowed for the frequency of monthly, half-yearly, quarterly, and yearly payments.

Death benefit

In case of any eventuality, nominees of policyholder are given a sum assured.

Rider benefit

The policyholder has an option of availing rider benefits by payment of additional premium.

2) Tech-Term

It is perhaps the country’s first online exclusive term insurance plan. LIC Tech-Term is a non-linked, without profit, pure protection policy.  One can only buy this plan through the LIC’s website or mobile app.

Features

– The minimum sum assured allowed is Rs 50,00,000. On the other hand, there is no maximum limit.

– Policy terms are between 10 to 40 years.

Death benefits

Death benefit is payable in case of admissible death claim during the policy term. Nominees will get a lump sum of money. The amount to be paid on death will depend on the death benefit option chosen at the time of purchase.

Tax benefits