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Guide to Buy Online Term Insurance in India

With leading life insurance companies offering their insurance plans online, and the growing preference for no-contact, online modes of transactions, the number of people buying insurance online is on the rise. The process of buying any form of life insurance online is seamless and hassle-free; however, it can get a little confusing for someone not used to online modes of purchase.

In this guide, we will see how you can buy the best term life insurance plan online.

What is a Term Plan?

A term plan is a pure life insurance product which is considered convenient and affordable. In a term plan, you pay a fixed amount to the insurance company known as a premium in return for which your life is insured. In the event of your untimely death, a lump sum amount (also known as a death benefit) is given to your nominee.

However, suppose the insured survives the policy term, he/she does not get any maturity benefit except in case of a return of premium policy, where the insurer receives a refund on the premiums paid as maturity or survival benefit.

How To Buy a Term Plan Online?

The process for buying the right term insurance plan online varies across different companies. However, it broadly involves the below-mentioned steps:

  1. Visit the official website of the insurer and navigate to the plan which you wish to purchase.
  2. Enter the sum assured.
  3. Choose the term of your policy.
  4. Select the insurance riders of your choice.
  5. You will see a premium amount generated, based on your inputs.
  6. Select the mode of payment towards the premium.
  7. You will receive an acknowledgement of a successful payment transaction.
  8. After payment of premium, you will have to fill a life insurance proposal form which would ask you to fill various details such as personal information, health details, existing insurance details, and nominee details.
  9. Next, you should upload your proof of identity and address, as well as health-related documents and reports, if any.
  10. If mandatory, you will need to visit the appointed medical centre for medical examination. The reports are sent directly to the insurer.
  11. Within three weeks, the insurance company will contact you and let you know if the insurance policy has been approved.
  12. Once approved, you will receive a soft copy of the policy followed by the hard copy.

Key Features of Term Insurance Plan

If you wish to buy a term plan online (or even offline), here is a list of features which you must look for in your plan:

  • Sum Assured: It is the maturity benefit which your family would receive in case of your untimely death. Ensure you choose an insurance with sum assured that matches your financial requirements.
  • Entry Age: If you are between 18-65 years of age, you are eligible for a term plan. It is advisable to buy term plans early as it ensures a lower premium.
  • Maturity Age: The age at which the term plan will expire is known as maturity age. Usually, the maturity age is 75 years, but in some plans, it can be extended even up to 100 years.
  • Claim Settlement Ratio: The claim settlement ratio is the percentage of successful claims made by the users of an insurance company. For example, if a company honours 80 out of 100 claims made, the claim settlement ratio is 80%. It would be best to opt for an insurance company with a high claim settlement ratio.
  • Riders: Riders are additional benefits offered by the insurer at an extra cost that help the policyholder to enhance the insurance coverage. For example, if you buy an accidental death rider, the nominee will be paid the sum assured as the death benefit and additional sum as rider benefits if the cause of your death was an accident.


Owning a term insurance plan is more important than any online investment which we make to accumulate wealth for the future. It is advisable to buy term insurance, especially if you have family and loved ones who are financially dependent on you. To safeguard the future of your family in your absence, make sure you thoroughly compare all plans online before you choose the best term life insurance which suits you perfectly.

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