Decoding The Journey Of Online Term Insurance In India: The Policybazaar Show

The overall demand for protection products has gone through the roof after the pandemic. People now understand the importance of insurance and buying a comprehensive cover. Policybazaar.com has seen traffic growth of 70-80% on its platform that has resulted in the growth of the business by 50-60%. The industry has also grown at a significant rate of 40%. However, Policybazaar is growing faster than the industry because online offers the best product, price, and convenience for the customers.

Insurance plans until 2009 were generally sold as savings and not protection plans. Offline term insurance selling was incredibly low. In 2009, Aegon’s term plan was the first to be sold online in collaboration with Policybazaar. Gradually, many players came into the online term insurance market. The genesis of the term insurance industry is digital and composes 50% of the market share. 

Evolution of term insurance 

Online term insurance started with a few players and basic products. There were no added benefits like critical illness, accidental death benefit, waiver of premium, unlike new age term plans which are currently available in the market. Also, term insurance plans back then were available only till the age of 65 years but life expectancy in India has gone up since then.

Therefore, term life products were introduced in the market which cover for 100 years. Customers can consider life insurance plans to aid in protecting one’s income and legacy planning. With more players entering the market, prices of term insurance plans have reduced. A Rs 1 crore term insurance cover which provides coverage for 100 years for a 30-year-old individual can cost between Rs 1,000-3,000 per month only.

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Policybazaar’s exclusivity to its customers  

Policybazaar presents a consolidated collection of available insurance plans which helps the customer to make an informed decision. Buying insurance through an online channel is 5-10% cheaper. So, the savings can be as much as Rs 1 lacs in absolute numbers for a life insurance product. Policybazaar’s brand promise to its customers stands tall. The organization’s claims assistance team ensures all support during the moment of truth. You can buy a Rs 1-1.5 crore term insurance cover through Policybazaar without undergoing a physical medical test or through telemedical. 

Online selling ensures transparency

An insurance agent represents only one insurer and won’t be able to give a comparison of all the products existing in the market. Banks provide a limited choice of only three products. Moreover, offline buying results in added expenditure for the customer. Policybazaar offers easy comparison options for the customer to choose the best product. They can purchase insurance conveniently sitting at home. The products are also cheaper and documentation is simpler. Online selling has helped in curbing misselling in the industry. There is meticulous record-keeping in online buying. 

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Seamless claims process

Policybazaar has a dedicated relationship desk that assists customers for claims. Customers can download claim forms through Policybazaar’s portal/app. They can then fill them up and send the forms through the website or Whatsapp. Policybazaar will facilitate the entire process for claim filing and the customer need not step out of the house. The organization promises customers of a 24 hour claim settlement time. 

Digital process of buying insurance 

Policybazaar has a completely digital process for buying insurance products. Customers can buy covers as large as Rs 1.5 crore without a medical test or at best, a telemedical will be arranged for them. A doctor will call and ask a few details about the customer’s health status and that information will be used for underwriting. 

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