What is Direct Term Life Insurance?
Direct term life insurance is a term insurance plan that you buy directly from an insurance company. There is no agent or broker involved. You can directly buy it online from the insurers website.
Term life insurance plans are pure protection plans meant to provide financial security to your family through the sum assured, in case of your unfortunate death during the policy term.
How Does a Direct Term Insurance Plan Work?
A direct term life insurance plan is just a regular term insurance plan. You decide how much coverage you need and for how many years. For example, you can choose to stay covered for 10, 20,30 years, etc.
You can calculate your premium using an online term insurance calculator. Premium is the money you pay to keep the policy active. You can pay monthly, half-yearly, annually , quarterly or at once, depending on what suits you.
You can also choose how your family receives the sum assured:
- As a lump sum (all at once)
- As monthly income
- A mix of both
If you pass away during the policy term, the insurer will give the money (sum assured) to your nominee. The funds can help them manage household expenses, EMIs, children’s education, or any other needs.
What Are the Advantages of Direct Term Life Insurance?
There are many benefits of choosing a term life insurance plan, even when you buy it directly:
- Convenience
- Direct term plans offer a convenient option, allowing you to research and select the plan that best suits your needs from the comfort of your home.
- Lower Cost
- Since there is no involvement of intermediaries it can make the plan affordable.
- Easy to Buy
- You can buy it online at any time.
- Quick Process
- Fill out your details.
- Upload documents.
- Submit the proposal form
- Once approved, pay the premium.
- Policy gets issued.
- Easy to Compare
- You can compare different term plans and make the right choice.
Eligibility Criteria for Buying Direct Term Life Insurance
You must meet some basic conditions to buy a term plan:
Criteria
| Details
|
Age
| 18 to 65 years old
|
Citizenship
| Must be an Indian citizen
|
Income
| Must have a steady income
|
Specific criteria may vary from one insurer to another. It's best to check the insurer’s website for detailed requirements.
Documents Required for Direct Term Insurance Policy
When you apply for Term Insurance directly, you should keep these documents ready:
Document
| Type
|
Identity Proof
| Aadhaar card,
Voters Id
card, Passport,
Permanent Driving License
|
Address Proof
| Aadhaar card, Voter card, Passport, Driving license
|
Income Proof
| Salary slips, bank statement, ITR
|
Health Reports
| As requested by the insurer
|
Photograph
| Recent passport-size photo
|
Conclusion
Life is uncertain. But with a good term life insurance plan, you can bring some certainty for your family’s future. Buying a term insurance plan directly can seem convenient for many. You can pick what sum assured you need, pay how you want to , and apply when you can.
If you’re someone who wants peace of mind without spending too much time, buying the plan directly may be a good option.
FAQs
Can you buy term insurance directly?
Yes, you can buy term insurance directly from the Insurer . You can go to the insurance company’s website , compare plans and and choose the plan that fits your financial goals and budget.
Do I get money back from term life insurance?
In most cases, term life insurance does not give any money back if the life assured survives the term. Some plans offer a return of premium feature, where you get back the premium amount paid.
Can I withdraw the amount before maturity?
No , you generally cannot take out money before the policy ends. It is made to provide money to your family only if you pass away during the policy term.
How long does a direct term life insurance policy last?
The length of the policy depends on the policy tenure you choose. Some people want coverage for 10 years, while others may go for 20, 30 years or more or even less. You can select the term that suits your needs.
What factors affect premium in term life insurance?
Premiums in term life insurance depend on factors like your age, gender, health, job, lifestyle, coverage amount etc .
Are there any riders or add-ons available with direct term life insurance?
Yes, many direct term life insurance plans, just like other term plans offer extra features called riders. Riders are like small add-ons you can include in your policy. Some examples are a critical illness rider, an accidental death rider, a waiver of premium rider.
