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Most of the online term plans are available in selected cities only. Whether it is a condition to live in that city at the time of buying the policy or in that city for whole term of the policy. If after getting online term insurance if one moves out of the city, which is not covered for online option, what is the impact and status of onine term insurance policy?
As far as my knowledge goes it's talking about at the time of buying the policy. The reason for the same is that in case of any medical tests etc, they have offices in those cities. Plus the living condition and accessibility to medical facility etc. are same.
The main reason for online term plans available in selected cities is that the online buyer figures low in the risk matrix. He is young, well-educated, reasonably well-off and an urbanite. Insurance companies realise that the better access to health care in urban areas means that city dwellers have a longer life span than the average Indian. But I don’t feel anything change, even if he move out of that city – he will work in same job profile, so the risk profile is same. But I would double check with insurer’s customer care.
The reason for cheap online term plans are improving life expectancy figures in the country. Advances in medical science and improvement in health-care facilities have pushed up life expectancy in India. The average Indian now lives up to nearly 65 years compared to about 55 years in the 1980s and 58 years in the 1990s.