Mumbai, December 6: Life insurance is a long term plan where we pay premium on a yearly, half-yearly or quarterly basis for decades. However, there are a few simple steps which would help us save a huge amount of money in the long run along with securing financial goals.
One of the most important steps is to buy the product online instead of relying on an insurance agent. There are multiple benefits attached to this step, firstly, buying an insurance plan can be done more conveniently and quickly through online portals. Secondly, it also allows us to save on the agent charges, thus helping us save money in the long run.
According to industry experts, premiums could be cheaper by 30 to 50 per cent when buying life insurance products online. Online insurance is cheaper than offline as no intermediary is involved during the process.
For instance, a 30 year old individual wants to buy a term life insurance plan for 40 years policy term for Rs 1 crore cover. If the individual is buying from online the annual premium would come around Rs 8,300 (without GST) or 8,300x40=33,2000. The same individual while buying life insurance from offline for Rs 1 crore cover could end up paying annual premium of Rs 11,350x40= Rs 4,54,000. This clearly shows that in the long term one can save Rs 1,22,000 simply by buying a life insurance plan from online.
The added advantage of using the internet services for life insurance buying is the control it gives us on our choice and decision making. It is impossible for any insurance agent to accurately gauge our requirement and our affordability. Through online buying, we could buy the most suited product to our needs and it also rules out the possibility of mis-selling which is a possibility in case of making the buying through an agent. On top of that, lack of communication with an insurance agent could lead to lapse of the product however, such a scenario could be easily avoided by buying and making renewal online.
So what are you waiting for? Get online and secure your financial goals by buying the right plan while also enjoying cheaper premium rates at the same time.