We are living in a digital age. Whether you are talking to your loved ones on the phone or shopping online or even booking a movie ticket, everything these days is only a click away.
Your smartphones powered by the internet make it possible for you to do most of your essential tasks from the comforts of your home, buying life insurance is no different.
Things to Keep In Mind While Buying Insurance Online
Thanks to the evolving technology and robust security systems in place, transacting online is not only simple but also immensely secure. From firewall protection to personal information safety, the service providers leave no stone unturned in ensuring your data safety.
Still wondering why you should buy online insurance when your trusted agent is just a phone call away? Well, for starters, it is easy, quick, and convenient. Buying insurance online is also cheaper.
There has been a steady increase in the trend of buying online insurance. All the leading insurance providers these days offer the best online insurance plans to you through their online portals. All you need to do is go online, study the available options, compare policies, and then choose the one that suits you best.
But before you jump on to the online insurance bandwagon, here are some things you need to keep in mind to ensure you make the most of this experience.
1] Research different plans
With so many insurance companies providing multiple plans, it is common for people to experience decision fatigue. Subsequently, they often end up choosing the cheapest option that comes their way.
However, the best thing about buying online insurance is that you can review all the policies and their benefits side by side to identify the one that suits you best.
In the digital world, you have full access to all the information and articles about insurance plans and available offers.
Therefore, you must use this feature available to you while choosing the best online insurance. Active comparison helps you put pros against cons to pick the one that provides you with maximum benefits at a minimal premium.
2] Understand the benefits
Another important thing about shopping for insurance policies online is to choose the one that offers you maximum flexibility. While you may have a clear idea of the protection you want now, it is fair to say that life can be pretty unpredictable and you never know what the future has in store for you.
This is why you must have the freedom to upgrade your policy at different life stages and also supplement it with add-ons to expand its scope of coverage. For instance, you can pick accidental death benefit riders or critical illness riders that offer you increased protection against life’s uncertainties.
So, before you commit yourself to a lifetime investment of online insurance, be sure to understand the benefits and flexibility options fully.
3] Opt for automation
Online insurance is all about simplifying the process of buying and maintaining your policy for a long time. The best online insurance policy gives you the option of automating specific options, such as sending you timely reminders to pay your premium on time to set up auto payments to help you stay current.
There are all kinds of benefits that are available to you when you buy insurance online. You can also seek assistance from their online agents via live chats who can help you in making an informed investment decision if you are feeling overwhelmed with all the choices.
In addition to this, the automated system can also make this process more stress-free by sending you timely reminders about your renewal dates.
4] Review the claim settlement ratio before choosing an insurer
Claim settlement ratio is derived by dividing the number of claims paid by the insurance provider against the number of claims raised in a year.
This ratio should be in the high 90s, which indicate that the company honoured more than 90% of its claims. You can quickly check this figure on the Insurance Regulatory and Development Authority (IRDA) website.
At the same time, you can also check the solvency ratio that measures the financial stability of a company. It reflects that the insurance provider is capable of settling long term debts and that your investment is in safe hands. The mandatory solvency ratio to be maintained by insurers is over 150% which indicates a stable financial standing.
Online insurance has gained traction over the years due to its hassle-free process and minimal paperwork. There is no need to run around with your documents anymore. If you are planning to buy life insurance for your financial portfolio, then consider checking the available options online.