The premium for term insurance plans is expected to increase by 10 to 15 percent soon. While some insurers have increased the premium in recent months, some others are expected to do so by April 2021. Indranil Chatterjee, Co-Founder and Principal Officer, RenewBuy, said that most insurance companies post term insurance after April 1 due to increased demand after COVID-19 for term insurance plans for consumers and increased risk assessment by insurers. The premiums of the plans are going to increase.
Therefore, those who are thinking of buying a term insurance plan before the increase in premium, can choose the digital model to speed up the process. Many platforms such as social media, websites, emails and apps can be used to seek advice from insurers about choosing plans.
Chatterjee said that the role of digital here is big for those who want to buy a term insurance plan by the end of this financial year. There is no need to fill long forms and submit countless documents to buy insurance. Insurance purchased by digital media and agents helps consumers to buy the right insurance product according to the needs of the family.
According to experts, 65 percent of life or term insurance is purchased through traditional means of insurance procedures. It depends on the agent to meet, gather information, document the purchase of the policy, and the offline procedures of the claim and agreement. Chatterjee further said that the traditional, offline and branched insurance model makes it difficult for insurance to enter Tier 2 and 3 cities. About 700 million customers need insurance, but lack access.
How does digital model help in buying term insurance?
Experts say that digital insurance model helps customers to buy term insurance under a transparent, reliable, uninterrupted, personalized and less time-consuming process. There are some insurance aggregators who have adopted the insurance adviser-digital model. The insurance advisors of these companies are equipped with digital models, so that they can help policy holders with the right term insurance product. This reduces the consumer’s time to buy online as compared to offline.
The digital model run by insurance advisors helps in calculating the term insurance coverage of a person. The entire process from choosing an insurance policy to underwriting and claiming is easy for the policyholders.
New Wage Code: Your salary structure will not change from April 1, due to this, the Central Government will not implement the new Wage Code
How will the change in term insurance affect the existing policyholders?
Those who have already bought a term insurance policy for themselves, they will not need to pay the increased premium. Chatterjee said that the increased premium will be applicable only to those who buy the policy at the end of this financial year, i.e. after 31 March 2021. This means that if a person buys a term insurance policy before the end of the financial year, he can save about 10-15% in the premium.
(Story: Priyadarshini Maji)
Get Business News in Hindi, latest India News in Hindi, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.