Nowadays, people are buying houses and booking vacations across the world online but are skeptical about buying an insurance product online. People are not very comfortable to go online and purchase insurance. This is not your mistake; the community of offline insurance agents in India is huge and strong, that it is very difficult to get past them to take a decision for your own good. In this article, we have discussed buying insurance only directly through the insurance companies' website. In my article 'What are the insurance aggregators and are they really helping you?', please read about my reasons to avoid them generally. To help you do the same, we have listed below a few lies/myths which are often told to you and thus, you believe in them while buying insurance online. They are as under:
You can read details about term insurance in our article http://www.wealthcafe.in/things-to-note-before-buying-a-term-insurance/
Myth 1 - Buying policy online is too difficult. There are many complicated terms that you will not understand Buying policy online does not involve too many steps anymore and there is an explanation for each step. If that does not help you, there is a chat box or help guide on each website which shall answer most of your questions making it a very simple process for you to buy the policy online. There are features like premium calculator, payment of premium monthly, some discounts etc, which are generally not offered to you by your offline agents as that would reduce their commissions.
Myth 2 - You will not be able to cancel your policy if you buy it online. The terms and conditions of a policy document remain constant whether you buy it online or offline. You will always get a free-look period of 30 days to decide whether you want to cancel the policy or not. You can use it irrespective of the mode of purchase of the policy. We have specified about the same in our article - Free-look period in Insurance.
Myth 3 - If you are buying online, your claim will not be settled. Recently, when I was hospitalized, my agent did not help me with anything for the claim adjustment but gave me the number of my relationship manager (who is an employee of the insurance company) who helped me file my claim and go through the entire process of claim settlement. Thus, there is no guarantee that your agent will be able to do anything extra for your claims. Most of the insurance companies have a very robust customer care service nowadays. Where your claim is genuine and you have all the required documents, it should not be a great problem to claim your money from the insurance companies.
Myth 4 - My personal information and payment details are not secured. When you are booking international hotels, expensive electronics, even your house through the internet and not worry about the payment so much. then why such worry for buying insurance online. All the insurance companies also have a reputation and clientele base to maintain, they cannot risk developing an insecure online platform for the purchase of insurance.
Myth 5 - There is no guidance on which policy is apt for you Our blogs have enough content to guide you on which insurance policy you need and how much cover is apt for you. Refer to our Article. If required, consult a financial advisor to understand the same. An insurance agent is not an advisor and he/she may not sell you what is apt for you but what will get them a higher commission. This is why insurance agents do not sell Term plans but are always selling endowment plans. At least when you buy online, you do some research yourself and then take a decision on what is good for you but are not influenced by marketers. Buying an insurance product is so easy and it does not take much time. In fact, some insurance companies, give additional discounts when the insurance is bought online (as they do not have pay commission to anyone on the same). All your bank details get verified easily, you don't have to go through the hassle of giving a cheque, sign so many documents or the worry of incorrect details going anywhere. Next time when you are renewing your premium, or are planning to buy insurance, take that plunge and purchase it online to experience the benefit of the same.