How easy is it to buy the best life insurance policy?

2024-08-02

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Life insurance is an essential financial commitment. One which you should ensure sooner than later. However, many keep on waiting for the right time and age to buy a life insurance plan, or simply find the process too complicated.

If you also have the same impression, worry not, the reality is exactly the opposite. Buying a life insurance plan is easy, especially when you want the protection, i.e., a term insurance plan. Since other life insurance plans also follow a similar process, buying them is also a simple process.

Who Provides Life Insurance Policy and How?

All types of insurance plans are provided either by insurance companies or brokers. Anyone selling a life insurance plan needs to be licensed by the Insurance Regulatory and Development Authority of India (IRDAI).

If you are looking to buy a life insurance plan, there are many channels for buying it. If you are a fan of DIY, buying online would be a better choice. Otherwise, you can receive help from an insurance advisor or visit the nearest office of the insurance company.

Six Benefits of Buying the Best Life Insurance Plan Online

You can buy a life insurance policy from any channel mentioned above but buying online has an edge over other options. Below are some of the benefits of buying a life insurance policy online:

1. Save Time

When you are dealing with brokers and plan to buy policy offline, you will have to spend a lot of time traveling to the sales office or broker's office. When it comes to online buying, it is hassle-free and time-effective. When you buy online, there is also fewer papers to go through, and whatever documents are, you have all documents in one place.

2. Save Money

When you buy online, you buy directly from the insurance company, and there is no distributor cost. This saving comes back to you in form of a lower premium amount.

3. Easy Access to Policy Documents

There are many instances in which policyholder have lost their policy document (offline buying). If this happens to you, you will have to go through a cumbersome process to get the duplicate copy from the insurer. The situation does not occur if you go through the online mode - you get a soft copy of the document, and if you lose it, you can get a new version with just a few clicks of a button.

4. Transparency

Online channels need to reveal all information, including the tentative policy document with all the terms and conditions. Thus, you can expect unparalleled transparency while buying life insurance online.

5. Run Multiple Simulations

You also get to quickly compare multiple situations and combinations of benefits. The online life insurance calculator will suggest the possible premium cost and outcome for the same before you proceed to buy.

6. Fully Understand the Benefits

The inevitable transparency means you can look through all the policy benefits and how they will work or not work. In case of confusion, you can also check with the available experts online through chat or call.

Steps To Buy the Best Life Insurance Plan Online

You can follow the below steps and get a policy in no time.

1. Identify Your Goal

The first thing you need to do is identify your goal - what are you are looking to achieve through your plan?

For example, if you have a home loan and your goal is to protect your family from the financial burden of the loan, if something happens to you, you will need a term insurance plan. If you want to secure your future or create a retirement corpus, you will need a guaranteed plan or a ULIP plan.

2. Choose A Plan

a) Protection

Term insurance, Critical health cover ~ Cancer & Heart Covers.

b) Wealth Generation Plans

Unit Linked Insurance Plans (ULIPs), Child Education Plans

c) Wealth Preservation Plans

Guaranteed Savings Plans, Endowment and Moneyback Plans

d) Retirement Plans

ULIP Plans, Long-term pension plans, Lifetime pension plans

3. Estimate Premium or Investment Amount

If you buy an investment plan, you have to decide how much you can invest per month or annum (depending on payment term). If you are buying term insurance, decide the premium based on the sum assured you already figured you need.

4. Add Other Benefits

Instead of buying separate plans for different needs, you can add riders like accidental death benefit, critical illness rider to the plan. This way, you save on the premium cost. You have to pay an additional premium, but it is comparatively lower than buying a separate policy with the same benefit. When you buy a policy online, all the rider options are available. You can select the ones you need with few clicks.

5. Complete the Application Form

Once you have finalized the riders you need and the premium amount looks good to you, you can fill in the other details in the application form.

6. Pay the Premium

Once your application is 100 per cent, you can go ahead and pay the premium. When you pay online, you have many options to make payments. You can pay through credit card, debit card, internet banking, etc.

7. Appear for Medical

Some policy especially life insurance policies may require you to go for a medical test. If your policy mandates you to appear for medical, you can do the same.

8. Change in Premium

Post medical checkup, if there is an existing medical condition, there can be a change in the premium amount. If not, the premium frozen earlier gets locked.

9. Policy issued on E-mail and Mailing Address

You receive your policy or investment plan on your e-mail address as well as on your mailing address. There is no tension in keeping the document secured in the house. If you misplace the physical copy, you can get a new copy from e-mail or download it from the insurance company website.

Pretty much all the life insurance plans you can buy online follow the same process. So, worry not and start your intended life insurance protection or investment as soon as possible.

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Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.