Online Term Insurance Cheaper By 10%

If you consider insurance, then term insurance is the real insurance. It is the pure insurance plan where you have to pay very less premium and you get covered for a big amount. The best way to buy term plans is online. Term insurance sold online are much cheaper as compared to normal channels such as through agents as insuring companies pass-on the saved cost on distribution and are laden with good features.

Online term plans are 8% to 10% cheaper than those sold through normal channels because there is no mediator between the seller and buyer. Most of the life insurance companies have started customizing term plans particularly planned to be sold online. 

These plans are more and more becoming popular as there is an increase in awareness about the requirement for life insurance. To increase online sales, insurers are giving more benefits to make their plans more appealing to customers.

Survey Shows Indians Willing to Pay More for Term Insurance

In a survey conducted by Swiss Re in India, 80% of respondents are willing to pay more for term life insurance cover.

The study was done in eleven Asia Pacific markets, covering 13,800 users between the age group of twenty and forty. 

The study showed that approximately 78% Indian respondents are planning to purchase health or life insurance products in the coming twelve months.

The survey also found that Indians find Life insurance is not high-priced as is the common perception and Indians can afford to buy it.

It was also found that Indian insurers are more into investment products than protection plans and lack of customized products was another problem.

Insurance penetration in India is very low; it is 5.1%, in which life contributes 4.4% and 0.7% is from non-life.