The Pandemic has resulted in a massive increase in the demand for protection products. People now understand the importance of insurance and want to purchase comprehensive insurance products. The insurance industry has witnessed significant growth at a rate of 40%. Policybazaar.com has witnessed a traffic growth of 70-80%, which has resulted in the overall growth of the business by 50-60%. The reason why Policybazaar is growing faster than the industry is because, as an online platform it provides insurance products at the best price and takes care of the convenience of the customers.
The insurance policies until 2009 were sold focusing on savings and not as protection plans. The offline selling of term insurance policies was significantly low. In 2009, with collaboration with Policybazaar, the Aegon term plan was the first which was sold online. Progressively many other insurance providers came into the market of online term insurance. The online market of the term insurance industry composes 50% of the market share.
The online term insurance started with basic products and a few players. Initially, there were no added benefits offered by the online term insurance plan like accidental death benefit, critical illness, or premium waiver, as it is offered in new age term insurance policies currently available in the market. Also, back then the term insurance policies were available only up to 65 years of age. However, life expectancy in our country has gone up since then. Thus, the term life insurance products were introduced in the market which provides coverage for 100 years. With more and more insurers entering the market, the price of term plans has been reduced. Customers can consider investing in the term insurance policy to provide financial protection to their family in case of any eventuality. For a 30 years old individual, Rs.1 crore term plan which offers coverage up to 100 years can cost a premium of Rs.1000-3000 per month.
In an offline process of purchase, the buyers cannot make a fair comparison of all the products available in the market. Moreover, the agents only represent the policy of one insurer, and offline purchase results in added expenses for the customers as they need to pay the agent fees and commission. On contrary to this, the online method of policy purchase is easy, saves time and money. The online selling of policies shows more transparency and reliability as the customers can compare the extensive range of policies from different insurers and choose the plan which offers higher coverage at a lower premium rate. The online method also includes a simple documentation process and saves the customer from doing extra expenses.
At Policybazaar, the buyers can get a consolidated collection of insurance products, which can help them to make an informed choice. Purchasing an insurance policy through an online platform is 5-10% cheaper, so one can save up to approximately Rs 1lakh for a term insurance product. The claim assistant team of the company ensures that the customer gets the full support and help required during the critical moment. An individual can purchase a life cover of 1-1.5 crore through Policybazaar without undergoing the medical test.
The online process of claim settlement is very easy and can be done by following a few simple steps. The customers can download the claim form from the insurer’s website and fill the form thoroughly and submit the form to the website along with the required documents. There are many insurance companies that promise customers a 24-hour claim settlement.
Nowadays, most of the insurance companies offer a complete digital process of purchasing an insurance policy. The customers can purchase life cover up to 1.5 crores without undergoing a medical test, in this case, the insurance companies arrange telemedical for them. Under this process, the doctor calls the insurance buyer and does health-related queries, which is further used for the underwriting. Thus, the online process of policy purchase is very hassle-free ad easy.
The online term insurance plans have significantly evolved to cater to the requirement of the customers and offer a more seamless process at much lower premiums. The online platform is not only more convenient for the growing customers' need but it is also trustworthy and reliable.