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What are benefits of buying insurance policies online?

In contrast, many choose offline insurance because of their propensity toward receiving more personalized guidance and a sense of security.

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For people looking to buy a new life insurance policy, one of the main points of contention is whether to buy the policy through an intermediary or a website. Both offline and online purchasing methods are equally popular amongst customers. Many people prefer online methods for their convenience and flexibility. In contrast, many choose offline insurance because of their propensity toward receiving more personalized guidance and a sense of security. Here’s looking at some of these factors in a little more detail.

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The Benefits of Buying Life Insurance online

Here’s taking a closer look at the most significant benefits of digital life insurance purchases:

  • Better and more informed decisions – Buying your policy online means that you can get detailed information about all plans, their key features, benefits, premiums, and terms and conditions at your fingertips. You can take better decisions, especially since you can compare multiple plans on several key parameters. You can also use the internet to access information about the insurance company, its claim-settlement ratio, financial performance, etc. Online life insurance premium calculators can calculate the total payable premium amount.
  • Cost Savings – You can purchase insurance policies from insurance companies online at a relatively lower cost since the insurer does not need to pay any commission to  an agent or distributor. There is no paperwork, which also leads to lower customer premiums.
  • Sheer Convenience – You can swiftly access all necessary information anywhere and everywhere while checking premiums, and getting quotes from insurers instantly. This saves you long hours of going to insurance company offices, standing in queues for quotes, and going through a mountain of paperwork.
  • Instant Policy Documentation – Buying insurance offline means waiting until the final document arrives at your address. However, online purchases mean instant access to policy documents upon payment completion. You also get a longer free-look period in the case of online life insurance (30 days) as compared to offline insurance (15 days).
  • Quick service and support – You can get assistance with all your queries, courtesy of live chat and other quick service functions offered by some insurance providers. This is another significant benefit of buying insurance online.
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How does it compare to buying life insurance offline?

Buying offline life insurance represents a slightly different process. In this framework, people usually reach out to their insurance agents/brokers or representatives of insurance companies. Then, after choosing their desired plans, they submit their documents and filled-up application forms at the insurance company’s office or get this done via company representatives.

After that, the final policy document is dispatched to their addresses post verification and confirmation. Offline purchases may involve slightly more time and effort, although some people still consider this the best way.

What is the process of buying online life insurance?

There are some basic documents that you should keep in hand before venturing to buy online life insurance. These include the following:

  • Age Proof
  • Address Proof
  • Photo Identity Proof
  • Medical Reports
  • Photograph
  • Income Proof

The online purchase procedure differs slightly across insurers and websites. Here is an illustrative example:

  • Go to the insurance company’s website.
  • Go to the available insurance plans.
  • View all the plans and then select your category and policy.
  • Then view all the details.
  • Click on ‘apply online.’
  • Click on Plans on the header.
  • Submit all your information, including name, mobile phone number, email ID, birth date and more.
  • Choose your gender, and provide education, profession, income, pin code, and other details as required.
  • Submit policy information, including the life coverage sum, policy tenure, payment tenure, frequency of premium payment and more. This depends on your chosen plan.
  • You will view the due premium amount after that. You can modify some policy details if you feel the amount shown is higher. The premium will then change likewise.
  • Once you are okay with the amount, click on the confirmation option. You will then have to complete your payment accordingly.
  • The life insurance policy will be issued upon submitting and filling the proposal form, subject to meeting the terms and conditions.

This procedure varies from one company to another.

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Things you should keep in mind

While buying your insurance policy online, here are some things that you should keep in mind:

  • Always compare plans thoroughly and view all their terms and conditions carefully.
  • Understand inclusions and exclusions with care. These are the coverage elements included in/excluded from the policy.
  • Pay keen attention to filling up the application form without any errors. Always maintain transparency in disclosures.
  • Do not blindly go for a policy with the lowest premium or the longest tenure. Instead, choose a policy which is suitable for your specific requirements.
  • Take online support and guidance in selecting the right policy for your needs.

Wrapping Up

Buying your insurance policy online may prove more fruitful since it can save you time, energy, and money. That being said, if you are not very tech-savvy or want personalized assistance, buying the policy offline might still make more sense to you.

In either case, you should examine all policy-related information, compare policies, and check premiums before purchasing. Finally, it is paramount to be careful while filling up the information since incorrect information may lead to future claim rejections.

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