6 Compelling Reasons to Buy Life Insurance Policy Online

bySurobhi BoseLast Updated: August 19, 2022
Reasons to Buy Life Insurance Policy Online

Most life insurance companies have adopted digitalization to be relevant and convenient for the customers. Through an online medium, buying a life insurance product becomes quick, easy and hassle-free. Purchasing the life insurance policy online not only saves time and money but also helps to compare various plans and choose the most comprehensive plan as per one’s requirement and suitability. Here are 6 compelling reasons why insurance buyers should buy an online life insurance policy.

Reasons to Buy Life Insurance Policy Online

The following are the top 6 compelling reasons to buy a life insurance policy online:

Lower Cost

While purchasing a life insurance policy, the first thing that comes to the customers’ minds is the premium rate of the policy. Most online life insurance products are 30-40% cheaper as compared to offline life insurance policies. This is because, firstly, the policy can be purchased directly from the insurer’s website; thus, there is no intermediary cost applicable. Secondly, the insurance companies work on the belief that the mortality risk of online buyers is less as compared to the customers who choose the conventional method to purchase a life insurance policy.

Therefore, online life insurance products are offered at a lower premium rate as compared to offline life insurance policies. Moreover, discounts are also offered to online policy buyers.

Easy Research

Checking for information and finding the relevant plan is much easier online as compared to the offline process. Moreover, through the online mode of policy purchase, the policy buyers can also compare different plans and check for policy reviews. The policy buyers can check for the claim settlement ratio of the insurance companies online and choose a reliable insurer to purchase a life insurance plan.

Empowering the Customer

The insurance companies provide detailed information regarding the products, their benefits, features, riders, tenure, etc. on their website. Thus, the customers who are willing to make life insurance policy payments online can access this information easily and make an informed decision. The insurance buyers don’t need to depend upon any other intermediaries or agents to provide the relevant information.

Customize the Plan

While purchasing the plan online, buyers can customize their plan as per their requirements and suitability. They can choose the riders to enhance the coverage of the policy or go for a higher sum assured. Moreover, the online process of policy purchase also provides different premium payment options to choose from. As per one’s convenience, the policyholder can choose to pay the premium as single pay, limited pay, or regular pay.

Higher Sum assured

Due to the lower cost involved, the online life insurance policies offer a higher sum assured amount as compared to the offline life insurance products. Moreover, most insurance companies advertise clever marketing tactics by showing the per-day cost of buying an insurance policy. For example, an individual can purchase a term cover of Rs. 1 crore at just Rs. 411 per month. Therefore, by buying through the online mode, the policy buyers can choose to purchase a policy with a higher sum assured amount without burning a hole in their pocket.

Overall Transparency

As insurance buyers can get detailed information about life insurance products online, the chances of getting fooled or purchasing the wrong products are negligible. On the other hand, in the offline process, the buyers are fooled many times by the agents and end up buying the wrong product with a higher premium rate. The online process of policy purchase shows overall transparency as one can get thorough information about the policy features, benefits, inclusion and exclusion on the insurer’s website. However, before making an informed decision the buyer should compare the quotes of various plans online and choose the plan as per their requirement.

Life Insurance Online Payment

Most life insurance companies offer the convenience to the customers to make life insurance online payments. The policy can be purchased online simply and easily through different online payment platforms such as debit/credit card, net banking, mobile banking, etc. The policyholder can also opt for the auto-debit option by giving the bank the mandate to deduct a predetermined premium amount from the bank account on a specific date as per the terms of the policy- yearly, half-yearly, quarterly and monthly. The payment deduction can be through Electronic Clearing Service (ECS), NEFT, etc.

Wrapping it Up!

Buying life insurance products online comes with many benefits. However, it is important to keep in mind the various aspects of buying insurance, the amount of life cover one wants, dependents, premium amount, policy tenure, etc. Thus make sure to do proper research before zeroing in on the plan.

What is a free-look period in a life insurance policy?
A free-look period of 30 days is offered for the online policies by the insurance company during which the insurance buyers can cancel the policy from the time of policy initiation if he/she is dissatisfied with the benefits offered by the policy.
How does the online process of policy purchase save money as compared to the offline process?
In the online process, as there are no intermediaries or agents involved between the insurer and the insurance buyers the insurance companies offer a comparatively lower premium rate to the policy buyers. Moreover, many life insurance policies also offer a premium discount to non-smokers and female insurance buyers.
What are the online modes of premium payment?
The premium amount of the life insurance policy can be paid online by following different methods like net banking, mobile banking, debit/credit card, ECS, NEFT, etc.

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