Finance & Loans

Direct Term Life Insurance – Everything You Need to Know

Term insurance is a popular life insurance product. It allows you to receive coverage for your life and secure the future of your loved ones at a reduced premium rate. What is a term plan? It is a policy that offers coverage for a limited time period only. This may explain the lowered premiums. If an unfortunate event occurs during this limited term, the nominees get a pre-decided compensation. In the last few years, there have been various sub-categories in term insurance as well. One such kind of term policy is direct term insurance, which has been gaining traction for a while. What is it and what accounts for its popularity? Let’s take a look.

What is direct term insurance?

Traditionally, if one wanted to buy a term policy, they would approach an insurance agent in their vicinity. The insurance agent would then display the various policies that would suit the buyer’s needs. The buyer would then select a policy, undergo the tests that are required, submit the documents, and get their life insured. The money spent would include the cost of insurance as well as the insurance agent’s fee.

However, with the insurance landscape changing and becoming more digital, there has been the launch of tools, such as the term plan premium calculator. The conventional buying process, too, has paved the way for the DTC, or the Direct-to-Consumer, approach. Thus, any policy that you buy directly from the insurance provider without the intervention of any intermediary of an agent is called a direct term insurance policy. While there may be other ways of buying direct term insurance, the most common method is to purchase a term policy online.

Reasons to opt for direct insurance online 

  • You save your time 

If you are someone with a hectic schedule, then there is no better way to insure your life than with a direct term policy. While you had to remove time from your schedule and visit an insurance branch or an agent earlier, now you can simply make a few clicks and get your life insured. You can thus buy term insurance from the comfort of your home, office, or anyplace else with a decent internet connection.

  • It is easy and saves you time and energy

Some people may hesitate to opt for the online, direct term insurance plan because they think it might require them to be tech-savvy. This is simply a misconception. Insurers have kept their interfaces simple, and their purchasing process easy and straightforward. You will no longer have to make appointments with the agent or wait in line at the insurance branches.

Plus, you can access various tools right during the buying process. You may use the term insurance premium calculator to better understand the premium you may be quoted. Or, if you have a doubt, you can access the chatbot feature that most insurers provide these days.

  • You may be spared the medical tests 

If you are buying direct term insurance online, then there is a high probability that you may be spared the medical tests that usually take place during the term insurance purchase process. At most, you will have to answer a few health-related questions, upload certain medical documents, and you will be good to go ahead.

  • You get to buy exactly what you want 

Sometimes, when one is buying insurance under the supervision of an agent, one ends up opting for coverage they do not really require. The agent may promote certain riders or other products which may pressurise the buyer to buy more coverage. This can be avoided when one buys a term policy online.

Things to remember when buying direct term insurance 

  • If you are buying a direct term policy online, ensure that the Wi-Fi is connected to a private provider and not a public one, as the latter could be unsafe in terms of data security.
  • Remember to check the credentials of the insurance provider before selecting them. Some aspects to look for are the IRDAI registration number, the claim settlement ratio, the customer service provided, and so on.
  • Double-check the medical information you submit. Providing the wrong information may lead to the rejection of your claims.

Now that you know what a term plan is and what is meant by purchasing it directly, we hope you make the right decision and buy the term policy most suitable for you.

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