There is growing awareness about life insurance among Indians today. The country has some of the best insurance providers while the IRDA closely monitors the insurance sector for complete transparency in working.
Among life insurance policies, term plans are increasingly finding favour among people. Owing to their affordability and high sum assured, term plans are the most reliable insurance product today. Also, it is extremely easy to get term insurance: simply log on to the insurers website, fill out the application form and pay the first premium.
Pointers for Buying Term Plans Online
Benefits of Buying Online: The term plan is cheaper when purchased online directly from the insurer. There is no insurance broker involved in the transaction, hence the commission that the company would normally have paid the broker is passed on to the customer. Also, since operational and processing costs are much cheaper over the Internet, companies reduce the online term insurance plan costs further. It is also easier to process queries and file for claims online than offline.
Documents Needed When Purchasing Term Insurance: Since the premium payments are low, most insurers do not insist on a medical test at the time of accepting the term insurance application. However, some insurers deem the policy as purchased only when the applicant undergoes a medical test at a centre approved by the insurer. Apart from the medical test results (which are sent directly to the insurer), the company may ask for proof of income, residence and age, among other things. You will have to mention your medical history, family size and correct names and details of dependents in the application form.
Claim Filing Process: Normally, most good insurance providers simplify the claims filing process. They believe that families grappling with the trauma of a loved ones demise must not be made to run from pillar to post while filing for the insurance money. Insurers often have a ready form on their portals (or at their branch offices) which must be filled out while filing the claim. However, there are a few mandatory procedures to be followed while filing the claim, such as:
- State the policy number and other details as starting date, name of policy holder, etc.
- Furnish the death certificate as certified by a competent doctor/Government/Civic hospital/accredited private clinic, etc.
- Furnish FIR ratified by the local police station in case of accidental death of the policy holder
- Details of the premiums paid till the time of filing the claim
- Proof of relation to the deceased when filing the claim (you must be nominated as a beneficiary in the policy)
- Any other documents as requested by the insurance provider
If all details are correctly furnished, the insurance money should reach the beneficiaries within 15 days to one month of filing for insurance. The claim request may be accepted online, but hard copies of all documents must still be submitted to the insurer.