Online terms plans gain popularity among retail investors

The life insurance business is said to consolidate, but at least one segment of the industry is gaining momentum. Online term plans have gain popularity among investors, according to media reports.

Around 55,750 term plans were sold in the past six months. In 2011-12, over 49,500 plans were sold in the entire year and the number is expected to increase more than twice this year, the reports added.

Most online term plans offer reasonable premium compared with many offline term plans. The online process is usually quick and requires less documentation. Also many life insurance companies such as Aviva India don’t ask for medical tests up to the age of 35 years depending on certain terms and conditions of the policy.

Usually on an average every 5 minutes an online term plan is sold. Some of the major online players include Aegon Religare Life, Aviva India, HDFC Life, ICICI Prudential Life and Kotak Life. Many other players have also launched online term plans.