 "Online, offline policies offer same service")
Online insurance policies are slowly beginning to gain popularity. Today, one can not only buy life insurance policy online, but also hold it in demat form. This is more convenient for customer since it means less paperwork.
Online term plans are similar to regular term plans as they ensure that in the event of the policy holder's death, the family gets the sum assured. The difference is only in the mode of distribution. The customer can buy the policy with a simple 'click'.
Online term insurance policies are best suited for working individuals who have dependents and are looking for a substantial coverage against the various uncertainties of life such as death, illnesses, accidents, etc, at a fairly low price. The term insurance plans fulfill the basic purpose of life insurance by providing financial security for the applicant and his family. Online, as a medium, works best for those who have convenient access to internet and are comfortable transacting online.
Today, there are various websites which provide data about insurance policies. Thanks to them, customers can now view and compare various insurance plans available online and choose the best term plan for them, all without having to leave their desk.
Another advantage of online term cover is that all the benefits of regular term plans are available, albeit at a lower price. Insurance companies are able to offer lower prices in case of online policies, since there is no intermediary involved and due to the reduction in overhead costs like paper work. The reduction in cost, such as agents' commissions, is passed on to customers in the form of lower premia.
Besides, insurance companies view online customers as 'lower risk' clients. It has been seen that clients who purchase insurance online are generally well educated and well-to-do individuals, who are generally aware of the benefits of an insurance product. They also tend to be healthier since they have better access to healthcare facilities. All these factors combine to lower the risk and, therefore, the premium is lower.
Although online term plans make it easy for people to invest in and monitor their insurance policies, many customers have misconceptions about these plans, mainly due to the perceived risks of online transactions. Also, many people prefer to meet the insurance agent, and physically fill out forms.
Perhaps, the only drawback in case of an online term policy is that customers should monitor it and renew it on time. In case of an offline policy, often the agent will not only remind the customer to renew the policy, but also complete the renewal process on behalf of the customer. But online customers do not have this luxury. If the policy lapses the customer has to buy it afresh, and often, at a much higher premium. If it is a term policy, then the customer will have to undergo the mandatory medical tests and check-up, all over again. Most insurers offer a grace period of 15-30 days, but it is better to ensure that the premium is paid on time, and if possible to try and automate this process.
One should also ensure that all the information is given correctly and honestly while filling the form online. For example, if you smoke it is advisable to let the insurance company know before paying the premium. If one hides crucial information, the insurance cover is liable to be made null and void and claims made later on, even if genuine, could be rejected.
In case of policies bought through agents, there have been cases where agents have advised customers to withhold information in order to reduce the premium. But remember, this can backfire.
It is important to keep in mind that although the insurance is taken online, the service quality remains the same, with the insurance company expected to provide the same service offerings to both online and offline clients. For this, customers should check the track record of the concerned insurance company in paying claims.
If the customer is not happy with the service, healways has the option of filing a complaint with Insurance Regulatory Development Authority.
In general, online is the cheapest and most convenient way to buy term plans, since it saves the customer both time and money.
BUY POLICIES ONLINE AND REDUCE PREMIUM
* Online insurance enables one to look for and buy new policies at the click of a button
* Costs of online policies are lower since there is no intermediary & administrative overheads
* Service levels are the same for both online and offline policies
* Instantaneous policy cover in most cases
* Do not hide any crucial facts as it could affect the insurance cover and any claims
Online term plans are similar to regular term plans as they ensure that in the event of the policy holder's death, the family gets the sum assured. The difference is only in the mode of distribution. The customer can buy the policy with a simple 'click'.
Online term insurance policies are best suited for working individuals who have dependents and are looking for a substantial coverage against the various uncertainties of life such as death, illnesses, accidents, etc, at a fairly low price. The term insurance plans fulfill the basic purpose of life insurance by providing financial security for the applicant and his family. Online, as a medium, works best for those who have convenient access to internet and are comfortable transacting online.
Today, there are various websites which provide data about insurance policies. Thanks to them, customers can now view and compare various insurance plans available online and choose the best term plan for them, all without having to leave their desk.
Another advantage of online term cover is that all the benefits of regular term plans are available, albeit at a lower price. Insurance companies are able to offer lower prices in case of online policies, since there is no intermediary involved and due to the reduction in overhead costs like paper work. The reduction in cost, such as agents' commissions, is passed on to customers in the form of lower premia.
Besides, insurance companies view online customers as 'lower risk' clients. It has been seen that clients who purchase insurance online are generally well educated and well-to-do individuals, who are generally aware of the benefits of an insurance product. They also tend to be healthier since they have better access to healthcare facilities. All these factors combine to lower the risk and, therefore, the premium is lower.
Although online term plans make it easy for people to invest in and monitor their insurance policies, many customers have misconceptions about these plans, mainly due to the perceived risks of online transactions. Also, many people prefer to meet the insurance agent, and physically fill out forms.
Perhaps, the only drawback in case of an online term policy is that customers should monitor it and renew it on time. In case of an offline policy, often the agent will not only remind the customer to renew the policy, but also complete the renewal process on behalf of the customer. But online customers do not have this luxury. If the policy lapses the customer has to buy it afresh, and often, at a much higher premium. If it is a term policy, then the customer will have to undergo the mandatory medical tests and check-up, all over again. Most insurers offer a grace period of 15-30 days, but it is better to ensure that the premium is paid on time, and if possible to try and automate this process.
One should also ensure that all the information is given correctly and honestly while filling the form online. For example, if you smoke it is advisable to let the insurance company know before paying the premium. If one hides crucial information, the insurance cover is liable to be made null and void and claims made later on, even if genuine, could be rejected.
In case of policies bought through agents, there have been cases where agents have advised customers to withhold information in order to reduce the premium. But remember, this can backfire.
It is important to keep in mind that although the insurance is taken online, the service quality remains the same, with the insurance company expected to provide the same service offerings to both online and offline clients. For this, customers should check the track record of the concerned insurance company in paying claims.
If the customer is not happy with the service, healways has the option of filing a complaint with Insurance Regulatory Development Authority.
In general, online is the cheapest and most convenient way to buy term plans, since it saves the customer both time and money.
BUY POLICIES ONLINE AND REDUCE PREMIUM
* Online insurance enables one to look for and buy new policies at the click of a button
* Costs of online policies are lower since there is no intermediary & administrative overheads
* Service levels are the same for both online and offline policies
* Instantaneous policy cover in most cases
* Do not hide any crucial facts as it could affect the insurance cover and any claims
The author is CEO & Founder Right Horizons