A Checklist to Avoid Mistakes When Buying Insurance Online

Do you have a list of things you want to buy this month? Most likely, several items on the list can be purchased online. Likewise, financial products have also made the shift to the digital space. While you may not have imagined buying online insurance plans a few years ago, the convenience today is undeniable.

It can be a hassle-free and cost-effective alternative for policy buyers looking for more autonomy in the insurance purchase process. However, there are certain legitimate concerns among policy buyers when looking for online insurance plans.

Online Insurance
                                                                Image Source: Shutterstock

It is understandable because purchasing online insurance plans is a relatively new practice. Not everyone may feel confident in buying online insurance plans. And, when it comes to major financial decisions, no one likes to leave room for error.

Therefore, creating a checklist to buy online insurance plans can help you put these worries to rest. Here are some of the critical things you must include in your checklist:

  1. Use The Insurance Calculator 

Buying online insurance means you have more control over the process. Traditionally, if you were to buy an insurance plan, you would need to meet an insurance agent or visit the insurer’s branch office. They would ask for certain personal details and arrive at the amount of sum assured suitable for your profile.

But, when you buy online insurance plans, you can do this by yourself, using the insurance calculator. Most insurers have an insurance calculator available on their website, which can be used to estimate your insurance needs. You can adjust the sum assured amount, premium payment frequency and policy term according to your preference and see the results.

Moreover, you can also add the relevant riders to check how it impacts online insurance costs. The insurance calculator will enable you to make accurate projections of your financial requirements.

  1. Choose The Required Features 

Finding the right financial instruments for your investment portfolio is crucial. Amidst several types of insurance policies offered by insurers, you must choose one that aligns with your demands properly. For that purpose, you should map your financial needs for the foreseeable future.

This will help you compare the policy features of different online insurance plans appropriately. For instance, there are online insurance plans that offer an investment component and life cover, such as ULIPs. It can work well for policy buyers looking for insurance and investment benefit under one plan.

Choosing online insurance also allows you to expand your options and discover the benefits that you may have overlooked previously. Additionally, you might also find reviews from existing customers that can be of help.

                                                        Image Source: Shutterstock
  1. Get Adequate Sum Assured 

Finding the right sum assured is crucial to optimize the benefits from your online insurance plan. You may feel inclined to get lower coverage to reduce the premium charges or higher coverage to increase the death benefit. It is vital to remember that the sum assured has to be tailored to your financial profile.

Consider the purpose of buying online insurance and other factors such as future financial needs based on lifestyle standard. Apart from this, your income, occupation, health issues affect the insurance cover significantly. If you end up overestimating the life cover, it may end up adding to your present financial burden.

On the other hand, underestimating the life cover can result in insufficient death benefit for your nominees. Hence,assess the sum assured amount based on important parameters to avoid mistakes when buying online insurance.

  1. Read The Policy Document Carefully 

A common mistake that policy buyers make with insurance is not reading the policy document carefully. This can result in disappointment in the future when your expectations are not met. Therefore, when buying online insurance, make sure to double-check everything before going ahead with the purchase.

Understand how life cover works and go through the exclusions cautiously. You can also seek the help of an insurance agent or contact the customer service of the insurer to get rid of any doubts.

  1. Provide Correct Personal Details 

Providing incorrect details for your online insurance might lead to claim rejection at times. When buying online insurance, you may be asked to provide identification proof, address proof, income details, name, age, etc. Ensure that the necessary information is updated on time and review them before submitting to avoid any mistakes.

Make sure that the nominee details are correct and submitted to the insurer with the necessary documentation. In cases where the nominee passes away before the policyholder, it is crucial to update the new nominee details on time to ensure smooth claim settlement when the time comes.

Sometimes, there are instances of policy buyers intentionally hiding relevant information such as existing medical conditions. This can be detrimental to your online insurance plan in the future when you need financial compensation.

In case any discrepancies are found in the provided information, the insurer can reject the claim made by your nominee or yourself, depending on the insurance type. As per the IRDA annual report, 0.26% out of the total number of claims were rejected. Although the number is not alarming, it is better to be cautious and reduce the chances.

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