Sins Thou Shall Not Commit While Buying An Online Life Insurance Policy

Written by : Knowledge Centre Team

2018-12-16

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Buying an insurance policy online is a faster and stress-free task and it has made the entire process simpler and easier for both the insurance companies and the buyers. All you require to purchase a suitable online insurance policy is the basic know-how of internet & access to, payment mechanism (ie credit card or internet banking. Still, many first time buyers commit mistakes while undertaking this simple task. Here are some common sins that you must not commit while purchasing an insurance policy online.

Inadequate Research

The two major factors that influence our decision of buying a particular policy are the cost of the policy and the claim ratio of the company. However, if you don't conduct a thorough research before buying a policy, you might get stuck with a mediocre plan which might not meet your objective. Therefore, it is highly crucial that you to research about various plans offered by different companies before finalising one.

Providing inadequate or incorrect information

When you fill an online insurance form, there are no agents present to look into the accuracy of information provided by you. However, when it comes to the process of claim settlement, the role of this information remains the same. If the insurance company gets to know that the information provided in the form is inadequate or incorrect, it can reject your claims. Some life insurance companies can deny the policy entirely if the information provided by the policy holder was deliberately misled. Even a minor or seemingly insignificant lie can lead to the rejection of your claims and therefore, you need to be extra cautious and get all the facts right while filling up the form.

Avoid The Following Mistakes When Buying Online Policy

Buying less insurance than required

As explained above, people sometimes don't invest enough hours in researching about insurance policies and as a result end up buying a life cover that is not sufficient to fulfil the requirements of their families. Needless to say, this will lead to various financial crunches for your family once you are gone. Hence it is important that you spend time in estimating the amount that your family would require to fulfil the various milestone needs during their life time (like marriage, child education etc). Knowing how much life insurance you need is the first step towards a prudent financial planning exercise.

Forgetting about

Unlike in traditional method of buying a policy, when you buy a policy online, there is no agent to remind you about your due date of making the renewal payment. Insurance companies do contact you via e-mails, text messages & phone calls to remind you about the due date, but do remember, ensuring that you pay the premium on time is your sole responsibility. Who notices those? Therefore, you are required to remember all the dates on your own and make the premiums and renewal payments on time so that the policy does not lapse. The best way to ensure you do not miss the payment date is to give a Standing Instruction of the renewal premium to the Insurance company so that you do not miss the date. However, you need to ensure that you have sufficient funds in your account for this to work.

Now that you are aware of the common misses buyers tend to make while purchasing an insurance policy online, you are ready to make a smart and educated purchase. Check out the life insurance plans offered by Canara HSBC Life Insurance.

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