Following are 7 key tips that one should keep in mind before investing in a policy online because though this might seem to be ideal, it is not without a few drawbacks:
• Extra money
Online insurance plans are mostly set packages and cannot be changed to suit any individual need that you might have. If you have special requirements etc. such as a cover for critical illness or wish to include rider options such as an accidental disability benefit, then you will probably gave to pay extra for them.
• Room for error
If you are new to buying insurance policies then you might make a mistake while either filling in the forms or in choosing the right policy for yourself. Thus only those who are well informed about this matter should confidently buy insurance online.
• Online glitches
It is very important to make sure that the site does not have erroneous information and isn't faulty - especially on the sites which allow you to compare, since the information might not have been updated. It is always a good idea to check the security certificate of the website to confirm that it is legit and it can safely encode the files. The S in HTTPS denotes that the site is secure. Take a screen shot of the transaction so that you have proof that you made the payment.
• How much to buy
Buy only as much insurance as you need, do not get swayed by package deals etc. and prior to that, gauge how much you need by calculating your HLV or Human Life Value. There are online calculators which help you do this, wherein after you fill in the necessary information, they will tell you how much insurance you need to invest in.
• Background check
Don't invest depending on how good the website is or how quickly the process is completed and most certainly don't go for the first company that pops up on your internet search. Check key points such as ratio of claim settlements and background and history in the world of insurance before settling on one. Customer service reviews should be taken note of.
• Check features
Once you have zeroed in on what you want and which company you want to buy from, check features of the policies such as the term to pay premium, date of maturity, benefits, investment on a yearly basis etc.
• Check for availability in your city
Many online insurance plans are only available in select cities, so before settling on one, check that it is an available option for you.
Insurance companies sell their products directly online and there are also sites where you can compare different policies and make an educated decision before buying. Research thoroughly and keep the above tips in mind before buying insurance online and if you are new to this, it is advisable to take the help of an agent or go to an insurance company.
Written By: Deepak Yohannan
The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal
For more articles by Deepak Yohannan, please visit MyInsuranceClub.comYou may write to the author at Deepak@myinsuranceclub.com