How safe is it to buy an Online Term Insurance Plan?

Today all companies have an online selling channel for the convenience of their tech savvy customers. Online banking, shopping for clothes, booking holidays and tickets, today internet has become an integral part of our life. People who are not tech savvy are also learning how to use the internet to take advantage of this amazing technology. It can be rightly said that after the industrial revolution, internet revolution is the next big thing that has changed our living style and made it better.

Term insurance plan is a pure risk plan available at a very low cost. You decide the tenure of the plan and pay the premium for the agreed term. If you die in that period, the sum assured is paid to your nominee, if you survive the term then nothing is payable.

Today all insurance companies are selling their term plan online. As it is a new thing for people to buy insurance online there is a certain fear as well. Here are a few questions that are sure to come to your mind. Is the online insurance plan genuine?Who will guide me in filling the form if there is no insurance agent to help?Will my family get the compensationif something happens to me?What are the benefits and how secure is this channel?

The answer to above apprehensions and benefits of getting term insurance online are explained in the following points:

Online policies are genuine

All policies that are bought online are genuine and are from the company’s own website. The features of the policy will be same as the one purchased from the company branch office. Every company is having multiple channels these days to increase their sales and one of the medium is selling term insurance plans online.

Get online or telephone support if needed

While filling the form there is a good chance you might come across a doubt. For the convenience of its customers today, companies have online chat support and telephone support available to clear any doubts or difficulties of the buyers. If you have any doubt or need further information you can always contact their customer service team and get your queries answered. The customer service advisors are trained and have good knowledge about the plans. They will answer all your doubts and queries.

Blessing in disguise since theinformation is filled by the policyholder himself

One of the better things of online policies is that we fill the information ourselves. This ensures that there are no errors in our personal information. Having said this, we need to ensure the information we give is honest and can be verified if questioned by the insurance company. For example: If you are a smoker then mention that you smoke, filling wrong information can create trouble and may be the reason for the claim rejection.

Benefit of comparing plans online

There are online comparison websites which will show you personalised term insurance quotes which you can compare. You can also compare the features of the plan and choose the plan which is ideally suited to you.

Claim settlement ratios of different companies available at your fingertips

Claim settlement ratio lets you understand the total number of claims settled by the company. This is one of the important information you should look before purchasing a plan with any insurer. Make sure the insurer from where you are getting your term plan has a good claim settlement ratio. A healthy claim settlement ratio is anything above 90% and above. The data for claim settlement ratio of the company can be fetched from IRDA website. Some insurers display their company’s claim settlement ratio on their own website for their customer’s information.

Honest disclosure about health

Insurance form will ask you questions about your past health record. If you have any pre-existing illness,disclose all the information honestly and correctly to avert any future disputes arising out of this previous health record information. Also, as the term insurance offers a huge cover for a nominal premium, make sure you have a proper medical check-up and test done to avoid any disputes during the claim process.

Getting term insurance plan online is gaining so much momentumthat there are many companies who have come up witha specific term insurance plan which is available only online.As the entire process is carried out in the virtual world, the cost of agent and paper work is reduced. As the distribution cost is cut by allowing customers to buy directly, the benefit of low pricing is transferred to the customer. This is reason whyonline term plans are cheaper than the offline ones.

Like with any other e-transactions, there are also someprecautions that one can take while buying online policies. Check for the websites security certificate (SSL) to verify that the site is legitimate. The customer should also keep a screenshot of the transaction page, especially the page that shows you have made the payment. If at all there is any miscommunication or denial on part of the insurer, the customer should have some proof of the successful transaction. You can also call the customer service to make sure you have made the successful transaction and the same is reflected in their records.

Buying term insurance online is definitely becoming one of the best ways to get a term insurance plan. Check out for yourself and become a part of the contemporary way of buying term insurance.

Recommended Read:

Myths about term insurance plans

How Can I Select the Best Term Insurance Plan?

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