Is Online Insurance Safe
by Jessy Jose An Insurance AdvisorJust 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.
3. 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.
4. 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.
Like what you’ve read? Feel free to share on Twitter or Facebook by using the super-easy share buttons below!
Sponsor Ads
Created on Dec 31st 1969 18:00. Viewed 0 times.