To be useful and convenient for their consumers, the majority of life insurance firms have embraced digitalisation. Purchasing a life insurance product online is quick, simple, and hassle-free. Online life insurance policy purchases not only save time and money but also make it easier to evaluate different policies and select the most comprehensive one that best suits one’s needs. Here are 6 strong arguments in favour of purchasing a life insurance policy online.
A life insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs.
Reasons for online life insurance purchase
The top 6 compelling reasons to purchase a life insurance policy online are as follows:
- Lower Price
The insurance policy‘s premium rate is the first consideration for customers when buying a life insurance policy. This is due to a few factors. First, the policy can be purchased straight from the insurer’s website, negating the need for an intermediate fee. Second, insurance companies operate under the assumption that online buyers have a lower mortality risk than clients who opt for the traditional manner of buying a life insurance policy.
As a result, compared to offline life insurance plans, online life insurance products have cost-effective premium rates. Moreover, savings are provided to internet insurance purchasers.
- Simple research
Online research is far simpler than offline research in terms of locating information and the appropriate plan. Moreover, through the internet mode of policy buying, the policy purchasers can also compare different plans and check for policy reviews. Policy buyers can research the claim settlement rates of several insurers online and select a reputable company before purchasing a life insurance policy.
- Increasing Consumer Power
The insurance companies websites give comprehensive details about the policies, including their advantages, features, riders, duration, etc. Customers who want to pay for life insurance policies online can readily obtain this information and make an informed choice as a result. The necessary information can be sent to insurance buyers directly without the need for additional brokers or middlemen.
- Plan customisation
Online plan buyers have the option to modify their plans to meet their needs and suitability. Consumers might opt for a bigger sum assured or add riders to the policy to expand its coverage. Moreover, the online procedure of policy acquisition also allows numerous premium payment methods to pick from. The policyholder can pay the premium in a single payment, a limited payment, or a continuous payment.
- Guaranteed Higher Sum
Online life insurance policies give a bigger sum assured amount than offline life insurance products because there are fewer costs associated with them. Also, the majority of insurance providers use sophisticated marketing strategies to display the daily cost of an insurance policy in their advertising. One can, for instance, pay just Rs. 411 each month to get a term cover worth Rs. 1 crore. Consequently, by purchasing a policy online, policy buyers can select a policy with a bigger sum assured amount without breaking the bank.
- Consistent Transparency
The likelihood of being duped or choosing the incorrect goods is quite slim because insurance consumers can find comprehensive information about life insurance products online. Yet, in the offline process, buyers are frequently duped by the salespeople and wind up purchasing the incorrect item at a larger price. As one can find comprehensive information about the insurance’s features, life insurance tax benefits, inclusions, and exclusions on the insurer’s website, the online process of purchasing a policy demonstrates complete openness. But, in order to make an informed choice, the customer should first compare internet quotations for several plans and select the one that best suits their needs.
The majority of life insurance providers give their clients the option of paying for life insurance online for convenience. Simple and convenient online purchasing of the policy is possible using a variety of online payment methods, including debit/credit cards, net banking, mobile banking, etc. By instructing the bank to withdraw a predetermined premium amount from the bank account on a specified date in accordance with the conditions of the policy – yearly, half-yearly, quarterly, or monthly – the policyholder can also choose the auto-debit option. The payment deduction can be made through NEFT, ECS, or another method.
A life insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.
Online life insurance purchases have several advantages. But, it’s crucial to consider all the many aspects of purchasing insurance, including the desired level of life insurance, dependents, premium cost, policy length, etc. Hence, before settling on the idea, be sure to conduct an adequate study. They are also a great way to avail of life insurance tax benefits.