Most of the things you do are to make sure that those who depend on you stay happy and comfortable. Whether it is building a house, investing money or buying insurance all of these actions have one common objective. Nowadays, you can order almost anything online, even large assets like furniture. Investments and insurance are also available online. However, there are also risks of online.
So, can you take the chance of getting something as important as term insurance online? Is it possible that online term insurance makes life easier for your family? Or are there other reasons you should buy a term insurance plan online?
Here are three ways of buying term insurance online will help your family:
1. Easy to Manage Your Policies Online
Insurance, especially life insurance is a long-term commitment. In India, more than 50% of the policyholders end up missing the instalments after 2 to 3 years into the policy term. Online policies help you avoid this misstep.
As per the surveys, most of the policyholders reported that they end up forgetting the premium payments as there was no reminder from the policy. Buying your policy online resolves this issue in two ways:
- You can enable auto-debit on your debit or credit card for the premiums
- You can receive alerts on your email if you need to for the due premiums
If you are investing in multiple life insurance policies, you can use an Electronic Insurance Account (EIA) and manage them all from a single window. Managing the policy through EIA means you can do any of the following:
- Change your details
- File nomination changes
- Manage investment instructions
- Assign administrator to manage claim filing if you are no longer there
Thus, online term insurance plan will make more sense for your dependents.
2. Next-Generation is a Digital Generation
Another important reason why online will make life easier for your dependents is that they are more digitally savvy. With almost everything from shopping to schools moving online, the next generation will definitely feel more comfortable operating online.
Term life insurance is no exception to the rule. If you use the e-insurance account, you can appoint one of your grown-up children to manage the account and claims after you.
3. Simpler Claim Process for Online Policies
Online policies are very transparent for both insurer and policyholder. Thus, at the time of claim, the insurance companies can usually process the claim faster for online term insurance plans.
Your family will have a better chance of faster claim settlement if you buy the term plan online and from an insurer who promises fast settlement. For example, Canara HSBC Oriental Bank of Commerce Life Insurance has the InstaPromise feature for term insurance plans.
InstaPromise allows the policies to receive the claim settlement within one day if they meet a few simple criteria:
- The policy has completed more than three years
- All the premiums have been paid before the claim
- The total sum assured of the policy does not exceed Rs. 1 crore
Even if your sum assured is higher than Rs 1 crore, the insurer can process the claim within five working days if your term plan is an online plan.
How to Avoid Fraud while Buying Online?
The greatest risk of transacting online is the possibility of transacting on the wrong portal. However, you can easily overcome this drawback. Use any number of the precautions given below to ensure that you are in the right place:
- Check for SSL Certificate: When you access the page, you will see a small pad lock with the website’s address
- Use the online chat feature to connect with insurer’s representatives
- E-mail insurer for the link to buy an online term insurance plan
- Provide correct e-mail ID to ensure you receive updates and application status on email
- You may complete your application in stages. The insurers generally save your application form if you have to leave without completing. So even if you close the browser and come back after a while you can get to the same step you left at.
With these simple steps, you can ensure that you transact without falling prey to online fraud. Also, you can easily secure the life of your loved ones with a life insurance cover, which will help them financially in your absence.