If you are planning to buy a term insurance policy, consider buying one online. Close on the heels of Aegon Religare Life Insurance Company’s online term insurance plan, iTerm, ICICI Prudential Life Insurance has launched a similar plan — iProtect. Aegon Religare’s plan has been in the market for over a few months now.
Insurers claim such plans are much cheaper. “The cost associated with the distribution network, too, is saved when a person purchases a policy through the internet,” says Yateesh Srivastava, chief marketing officer, Aegon Religare Life Insurance Company.
Say, a 35-year-old male opts for Aegon Religare’s online iTerm. The premium for Rs 20 lakh sum assured, for a period of 20 years, comes to Rs 4,360 each year (excluding the service taxes). If this policy is bought from the distribution network, the cost will be Rs 5,020 (excluding taxes).
“However, this also means that during the claim, the family will have to go without the help of an agent. There could be problems in some cases,” says Kartik Jhaveri, director, Transcend India.
But the process is quite simple. Details about income, lifestyle, family history and medical history need to be filled in.
ICICI Prudential offers two options within the policy. While iProtect Option-I is a simple term insurance plan, iProtect Option-II has an accident insurance along with term plan.
If a 30-year-old male (non-tobacco user) opts for a Rs 25 lakh cover for a 25-year policy, the annual premium will be Rs 3,850. The same plan with an accident cover will come for Rs 4,875. The additional cover will be equivalent to the sum assured, that is, Rs 50 lakh (Sum assured = Rs 25 lakh plus accident cover of Rs 25 lakh)
ICICI Prudential Life Insurance asks a person to go for a medical test if he/she already has a life insurance cover. This is because the risk perception is higher when you are buying a second policy. For first-timers, no such test is required. But the company decides whether a medical test is required on a case-to-case basis.
In case of iTerm, there are three specific situations. One, if the total sum assured (even if it is through different policies) is Rs 50 lakh and above. Two, if the age of the insured is above 40, and three, if the applicant has any existing medical problem.
Here are a few things that insurance companies require you to declare before you buy insurance online:
Employment details
Your premiums can increase if you work in an organisation or an institution that poses threat to your life. Examples of such employment are working on a factory shop floor or in police or defence.
Insurance history
The applicant needs to declare if he holds any additional life insurance policy. This includes unit-linked insurance plans, traditional plans and terms plans. “That’s why a person needs to declare any policy that has life cover in it, because if he is over-insuring himself, we will like to be aware of the reason,” says Srivastava.
Lifestyle
Insurance companies assess future health of a person based on his/her lifestyle. Those who drink and smoke are perceived as risky. So, one will need to shell out more premium.
Family history
Here, the companies try to access the future health risk by asking questions about family’s medical history. Diseases like hypertension and diabetes are hereditary. Also, insurers check if anyone in the family has cancer or AIDS.
