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Online Life Insurance Policy Buying Mistakes to Avoid

Online Life Insurance Policy Buying Mistakes to Avoid

Buying an insurance policy online is a faster and stress-free and it makes the entire process so much simpler for both, the insurance company and the buyer. All you require to purchase a suitable online insurance policy is the basic know-how of internet & access to a payment mechanism (credit card or internet banking). However, any of us can make a few unintentional mistakes, no matter how simple or convenient the process is. Here are some common slip-ups that people tend to commit while purchasing an insurance policy online.

Conducting 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 thorough research before buying a policy, you might get stuck with a mediocre plan which might not meet your objective. One of the most important things you must consider are your life goals as there are several policies, like term plans, child, health, retirement and even savings plans available. Therefore, you must research about various plans offered by different companies, their features, benefits aligning to your goals as well as premium options before finalizing one.

Providing Incomplete Or Incorrect Information

When you fill an online insurance form, there are no agents present to look into the accuracy of the 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 policyholder was deliberately misled. Even a minor or a 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.

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Buying Less Insurance Cover Than Required

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

Forgetting About Your Premiums

Unlike in the traditional method of buying a policy, when you purchase online, there is no agent to remind you about your due date for premium payment and renewal. Insurance companies may contact you via e-mails, text messages and phone calls as reminders, but it is your responsibility to ensure your premiums are paid in time. 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 Oriental Bank of Commerce Life Insurance.

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