Online Term Insurance - Reliable or Erratic choice?

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  | Published: 06 May 2020 | Last Updated On: 08 February 2021

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Term Insurance in UAE
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When it comes to choosing the most affordable, flexible, and user-friendly form of insurance product the first thing that crosses our minds are online term insurance. These plans offer high coverage, low premiums, and adequate risk mitigation to safeguard your family and loved ones against the strokes of uncertainties on the trail of life. Online term plans are valid for a fixed period also known as the term of the policy if the policyholder survives the policy period then neither the nominee nor the policyholder is entitled to receive any benefit. Therefore, term plans are often referred to as risk protection plans that have no maturity benefit associated with them.

Just like all the other industries and line-ups of businesses the gravity of sales is shifting towards online platforms in recent years. The insurance industry is also trying to match the pace with other industries by shifting a major portion of their sales to online platforms. Now, when the industry has transitioned and most of the people are rushing to get Term insurance online in UAE there are still traces of ambiguity and fear in people’s minds when it comes to buying insurance online.

Will my claim be settled just the way it is settled in the case of offline application? Do I have to pay more? What benefit do I get when I buy an online term plan instead of getting it offline? And a lot of other questions arise in your mind when you think of purchasing term insurance online in UAE. So, to ensure you have a clear understanding of nuances of term insurance plans when you get them online, we will demystify some common myths and shed light on some important factors associated with online term plans.

Why Online Term Plans?

The very first thing that catches attention is the cost of online term plans when compared to offline plans. Typically, you end up saving 1-3% extra when you get term insurance online in UAE because you deal directly with the insurance provider instead of reaching them via middle-men. The middle-men aka life insurance agents charge a commission in case offline plans which is one of the major reasons one ends up paying more money.

Secondly, the overall user experience in the case of purchasing term insurance online in UAE is much more convenient and easier in comparison to an offline purchase. Insurance seekers don’t have to leave their homes and stand in queues to reach their bank. Moreover, as we all know the coronavirus outbreak has left the world immobilized opting for online term plans is not just safe for the budget but also safe for health. Insurance seekers can explore, shortlist, and compare a plethora of options that are suitable for them based on their requirements and budget.

The process of purchasing term insurance online in UAE is as simple as placing an order for dinner via online delivery services provided you need to be a bit more cautious. You can just simply login to the website of the provider look for various available options and choose your desired plan. Once you’ve chosen the plan all you need to do is to register on their website followed by filing the application form. The next step is to attach the required documents and you’re good to. By opting for online term plans you can get yourself insured without even stepping out of your door. 3

Benefits of Opting for Online Term Plans

There are several benefits of choosing to buy term insurance online in UAE, here’s a rundown on some of the major highlights-

  • Ease of Purchase: As mentioned earlier insurance seekers can easily purchase term insurance online in UAE without even stepping out of their house. The process is simple, less time-consuming, and user-friendly in comparison to purchasing term plans offline.
  • Pricing: The pricing in case of online term plans is cheaper when compared to offline plans as there is no involvement of insurance agents. Purchasing plans online allows users to save a considerable portion of their hard-earned money that would otherwise have paid off in the form of commission.
  • Investing the Saving: While insurance seekers purchase term insurance online in UAE, they can approximately save up to AED 6000 – 8000 per annum. If one wisely invests the amount in some other investment scheme or program, they can end up building a corpus for their future. The investment initiated by the savings of online term plans might appear to be small in the beginning but will eventually grow over time so that one could ensure financial security and leave a legacy for their loved ones. +
  • Online Tools: Online web aggregators and various other insurance websites offer free tools that can be used to determine the amount of coverage one would need to ensure a safe and secure future for their loved ones. Several online insurance calculators provide a precise idea of how much coverage one should exactly get for themselves followed by the time frame of insurance. If you get the same analysis done offline you might have to pay a consultation fee to the financial expert who would shed light on the various factors and figures.
  • Riders: Term insurance is quite basic plans and therefore often requires riders to enhance the protection quotient. Online term plans allow users and insurance seekers to stay updated about the various new riders available in the market. Moreover, there are several new riders that are only available with online term plans in the UAE. Some of the most important term insurance riders are Accidental coverage, critical illness rider, terminal illness rider, and waiver of premium.
  • Talk to the Provider: A lot of people misunderstand online term plans and think that there is no vocal communication between the provider and buyer which is not true. Insurance seekers can call the 24x7 online help service with their queries where a team of specialized customer service executives is designated to help them. These experts will clear your queries providing you a firm and clear understanding of your online term plan.
  • Stay updated about New changes and Features: Opting for term insurance online in UAE allows buyers to stay updated about all the various changes and features in the basic plan. For instance, a lot of online terms plan providers have made it possible for policyholders to get a series of payment at fixed intervals instead of one single payout. Another example is a custom feature where buyers can choose to grow their sum assured every five years of the policy period. Opting for online plans will keep the policyholder posted with the latest updates so that they can extract the maximum benefit out of their plan.
  • Formalities: Term insurance plans when purchased online make it very easy and convenient for customers to complete all the formalities in comparison to offline plans. For people who are elder in age and it is difficult for them to visit the insurer’s office multiple times, buying term insurance online in UAE makes sense.

In a Nutshell

Term insurance plans are an absolute must whether purchased online or offline. An important point to be kept in consideration while choosing term insurance is that buyers should not just entirely focus on the premium but also lay emphasis on policy period, death benefit, liabilities, and future expenses of their dependents.