Bangalore: The online term plans have risen to great popularity for quite some time now. Apparently, there are many misconceptions among many people about these online insurance plans as they consider it unreliable.

Here is a list of some popular misconceptions about online term plans listed by ‘Economic Times’.

1. Low Premiums Don't Make Them Unreliable

An online term plan comes with lower premium rates and it has made people become apprehensive about it. However, a 30- year-old can buy a cover of up to 1 crore with a yearly premium of not more than 7, 000-8,000.

There are two main factors that have resulted in low premiums. One, there is no interference of agents and the amount of commission that goes to them is passed on to the customer. Also, many insurers consider online insurance buyers as low-risk customers.

Secondly, a person who is educated and earns big money is concerned about protecting himself and thus would have a health cover as well. These factors have led online term plans with lower the risk and results in low premiums.

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