The Growing Demand of Online Life Insurance Policies in India
Posted: Dec 26, 2016
Just like the online market is increasing by leaps and bounds for all kinds of products, starting from clothes and accessories to birthday gifts and cakes, the market for online insurance is also growing at a tremendous pace. The insurance companies are increasing their number of online insurance services. Though this mode of insurance buying seems much more hassle free and generally come with the added advantage of low premium, but as customers you might be having a thousand doubts in your mind regarding the security of your money that you are investing in an online life insurance or whether there is more probability of claim rejection by the company if the insurance is bought online. These fears are very normal to occur since a life insurance is a very long term affair and who would want glitches after so many years of online premium payment. Read on to find the pros and cons of these online insurance services and take the right decision.
1. The lack of an agent: This is one primary difference between offline and online insurance. There is no agent in online insurance to guide you through the various features and procedures of the insurance that you are about to buy. There is no one to scan through all the policies and come up with the one best suited for your needs. In case of online life insurance, it is entirely up to you to scan through the details of the various policies and online premium payment procedures and decide the one that is custom-made for you. But the online insurance companies take care of this issue quite well. They understand the fact that an online life insurance has to put in a lot more effort than an offline buyer. That is why, the companies keep their online insurance products greatly transparent. The buyer has every little detail regarding the insurance and the online premium payment procedure so that he knows exactly what he is buying.
2. Misguidance by the agents: The lack of an intermediary in case of online insurance payment is beneficial in a certain way. There is no way of being misled by the agents to buy wrong products. The agents try to sell those products more from which they earn a higher commission. More than what suits the customer's needs, the agent's prime focus remains on the commission he is earning. So, there are many instances of agents misleading the customers to buy the wrong products so that they can earn a higher commission. This problem is totally absent in case of online insurance buying as there is no intermediary at all. The buyer, however, will have to do a lot of research on his own.
- False notions about online insurance payment: There are many notions among people that in online life insurance, the buyers don't get any service at all as there are no intermediaries. However, this isn't true at all. The fact behind such canards is that the online life insurance is a big threat to the livelihood of the insurance agents who live on the commission earned by selling the insurance policies. In such a situation, they spread a lot of false ideas among the general public against online insurance payment.
- The fear of claim rejection: When you are about to buy any online life insurance, one of the most basic thoughts that may occur to you is the fear of claim rejection. However, you should keep in mind that most of the claim rejections occur due to incorrect details and missing information in the application form. Being careful about these points while filling up the online insurance application form greatly minimizes the chances of a claim rejection.
5. Awareness: A little awareness can go a long way in ensuring that you donot face any glitches while buying an online life insurance. Online insurance generally comes with many low premium policies. But your main concern should be whether the online insurance would cover up all your needs. If covering up your needs requires a higher online premium payment, you should decide in favour of it. You should also consider the tenure of the online life insurance and whether renewing it at the required time would cost you more in the long run.
Finally, go through the details well and pick a reliable insurance company. Being a little careful and aware can make online insurance a great bet – safe, secure and hassle-free.
Share this article & your thoughts with us in the comments below!
I'm one of the skilled and experienced presenter, my talks focus on life insurance for insurance carriers, agents, customers and vendors that service the insurance industry.