Lack of awareness on the part of
the customer and the agent’s motive to maximise his commission are two of the
reasons that led to rampant misselling of insurance products, says an article
published in MoneyControl in January 2014. Online policies have completely
changed the way we buy insurance. Premiums are calculated within 2 to 3 minutes
and if it is suitable, you can pay and buy a term
plan online within minutes.
Why Buy Term Insurance Online
Online policies are self-serviced
policies. Being self-serviced in nature, it becomes all the more necessary to
go through every minute detail before giving it your final go. You certainly do
not want your family to face claims rejection only because you did not provide proper
information or missed out a document. It is essential to read the policy
documents carefully to know more about the benefits and term and conditions.
This will help you make the right decision. Here are few reasons why you should
buy a term plan online:
- Lower Premiums – Online term policies tend to be 50 to 60 percent cheaper than their offline counterparts, mainly due to the absence of an agent involvement. While buying a policy, you deal directly with the insurance company. This would also mean that you can buy higher cover for the same premium amount as an offline policy or even pay lower premium for the same cover amount.
- Calculate Premium – One of the greatest advantages of buying a policy online is that you can calculate the premium yourself with the help of a premium calculator. You may have to fill your gender, DOB, cover amount, policy tenure, along with some personal details. You may also be asked whether you are a smoker or not. Even if you are an occasional smoker, you must click the smoker option. Hiding such information can become a cause of claim rejection at a later point. Premiums are lower for non-smokers and women. You can change the cover amount so as to calculate the most affordable premium amount.
- Hassle Free Procedure – Once you have finalised your premium amount, all you have to do is upload your KYC documents online, pay through net banking or a credit/debit card and you are done. You can practically buy a policy sitting on your couch in the middle of the night, if you wish to. You can even pay your premiums online. Although a medical check-up is not necessary in case of online policies, you might want to take one. Insurance companies reward individuals who maintain a healthy lifestyle.
- Customer Reviews – You can also go through customer reviews and ratings. This will help you know more about the company’s services and the product you are about to buy.
Make sure to fill in accurate and
complete information while you buy a term plan online. You must also check the
claim settlement ratio of a company before taking the final call.
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