Detailed guide: Buy Life Insurance Online
Purchase life insurance online with ease. Compare plans, get quotes, and protect your loved ones' future today.
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When it comes to buying a life insurance plan, you have two options. You can either go for the offline option where you physically meet the seller and go through the details at an office or there’s the more convenient online option where you can buy life insurance online from your mobile phone. This article highlights the benefits associated with the online option, have a look.
Overview of life insurance plans
Life Insurance is an agreement between an individual and an insurance company where the individual pays a periodical premium of a fixed amount in return for financial security of his loved ones in their absence.
Life Insurance plans primarily are known for death benefits but sometimes also pay maturity benefits. A maturity benefit is the lump sum amount paid to the policyholder when they outlive the policy term, which they can use for other life goals, such as buying a house. Such policies are generally categorised as Pure Protection Plans and Savings Plans.
Pure Protection Plans, also known as Term Insurance Plans, assure a fixed lump sum amount to your family after a fixed period of time and provide the death benefit during that term.
Savings Plans are more like a long-term investment for life goals, like education, home ownership, etc., along with life coverage benefits.
How to buy life insurance online
With the booming digital economy in India, the insurance sector has adapted to digital services. Thus, you can now buy life insurance online easily by following the steps mentioned below. Note that this is a generic process, which can differ from insurer to insurer and policy to policy.
Decide on your goals before investing in a life insurance plan.
Compare the policies available that cover most of your goals or required benefits.
Compare the compensation ratios and the premium amounts of different insurance companies for similar policies.
Calculate quotations or find out about other plans by entering preliminary information, including age, city, investment amount, plan term, and preference of investment option, on the website/app of your preferred insurance company.
Select the best-suited plan for your needs and register with complete details, including name, age, address proof, photo ID, income details, health record, alcohol consumption and smoking habits, and any preexisting health conditions.
Know about specific medical examinations (if required) before buying certain policies, such as Term Insurance.
After submitting the proof documents required, you will have to submit the proposal form and pay the first premium amount of your policy.
You will receive a confirmation for your payment.
You can then go ahead and select nominees and beneficiaries for your policy.
Receive the policy document in your registered email ID’s inbox.
Benefits of buying life insurance online
Earlier, buying a life insurance policy would entail visiting the insurer’s office, submitting a bunch of documents and filling endless forms. These challenges have been reduced to a bare minimum because of the digital boom in the industry. Buying life insurance online comes with the following benefits.
1. Easy comparison
Owing to digitisation, it is now easier to compare different policies and select the one that best suits your needs, as it can be done conveniently via a website/app. Moreover, in order to compare policies from different companies, you had to rely on agents from different companies. Here, the information available was limited by the agents. Now, every insurance company provides all essential details on their website making it easy to compare and select a suitable plan.
2. Lower premium
The premiums to be paid are lower when you buy a policy online due to lower operational costs of online insurers and non-reliance on agents.
3. Easy tracking
Carrying all the documents along with you on every visit to the insurer’s office to check the status of your application or claim request is a tedious task. However, you can now check the status of your application or claim settlement process online very easily and quickly. This saves a lot of time, as there is no need for multiple visits to the office.
4. Checking the Claim Settlement Ratio (CSR)
The CSR of different companies can be checked on the official website of the Insurance Regulatory and Development Authority of India (IRDAI).
5. Transparency
The whole process of buying an Insurance policy online is safe and transparent. You can easily track your transactions; you will get a confirmation email for each of your payments, you will be reminded of your due payments; and, most importantly, you can revisit any step and any detail anytime you need to.
For instance, the sum assured under a policy and all other relevant details are presented very clearly on the official websites of the insurance companies. There is no fear regarding lack of transparency.
6. No tedious paperwork
Buying an insurance plan online saves you from the tedious job of managing physical paperwork. All proof documents are submitted online, so there is no need for tedious paperwork.
7. No trust breach
As you can read all the details about the plan and you are submitting your documents directly to the insurance company, there is no breach of trust or misuse of your confidential documents.
8. Safe payment
Through the web portal of the insurance company, you can make direct payments, and no intermediaries or agents are required thereby ensuring safe and secure transactions.
9. 24x7 customer support
Most digital-first life insurance companies now offer 24x7 online customer care. Moreover, the claim settlement process has become easier too.
10. Reviews
The best thing about buying a plan online is that you can read reviews about the company from verified customers. You can then choose a company based on the reviews about the claim settlement process, customer handling, and turnaround time as mentioned by the customers.
Frequently Asked Questions (FAQs)
Here’s a list of common questions and answers related to buying life insurance online.
Can I buy life insurance online?
Yes, you can buy life insurance policies online directly through the website of the insurance company.
Is it safe to buy life insurance online?
Buying insurance policies online is completely safe and systematic as the process is transparent, less time-consuming, and easy to track.
What are the factors that affect life insurance premiums?
The factors that can affect life insurance premiums are age, gender, medical history, alcohol consumption, smoking habits, profession, and other lifestyle choices.
What are the eligibility criteria for any investment plan?
The eligibility criteria for any investment plan in India is that the individual should be an Indian citizen and at least 18 years of age.
What are the factors that should be considered before selecting a life insurance investment plan?
There are several factors that you should consider and compare before investing in an investment-based life insurance plan. Some important factors are CSR, company licence, financial strength, reliability of the company, premium amount, coverage and benefits, and customer support.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.
