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 Kovid-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.