How to Buy A Life Insurance Policy Online?
Updated On Apr 23, 2021
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The Internet has progressed from being a simple database provider to a primary delivery platform for providers of services such as insurance. It provides a quick, reliable, cost-effective, and seamless distribution mode. Although insurance companies have historically relied on consultants, agents, and brokers as well as their own in-house sales support, this has proven to be both costly and ineffective. The turnaround time for having a person insured is high and there is a responsibility to pay the agent through regular commissions over the policy's life
The Internet has helped insurance providers work out inefficiencies in both time and expense. Now they actively approach insurance-seekers via company websites. Insurance is 'provided' effortlessly and there is no commission to be paid because there is no agent involved. This makes selling life insurance affordable and the policy buyer benefits by paying a lower premium compared with a similar policy sold offline.
How to Buy Life Insurance Online?
It is an easy, seamless experience to purchase life insurance plans online in India that will make you question why it was not explored earlier. Although the method of obtaining online life insurance differs across insurance providers, the following steps are broadly involved:
- Log on to the company's website and click on the online insurance advertisement display.
- Enter the "sum assured"
- Choose the term for the policy
- Select the term for the premium payment
- Based on your inputs, you can see the premium sum, that is, the premium quote
- To make the premium payment, select your bank (mode of payment) and make the payment
- You will see a confirmation of a successful transaction.
- The insurance provider will get back to you within a specified time to let you know if or not your insurance policy has been accepted by its underwriters
- After that, you would get a soft copy of the policy, that will be accompanied by a hard copy, subject to acceptance.
Online Insurance Payment
Among life insurance providers, online payment options for making online life insurance premium payments can differ. This online payment can be done by logging into the life insurance company's official website or via the bank's Internet banking platform. Payments can be done using the following methods:
- The available online payment platforms are Net Banking, Debit/credit card, and Mobile banking
- Auto-debit option by authorizing your bank to deduct from your savings account on particular dates the predetermined premium amount, according to the policy terms – annually, half-yearly, quarterly, or monthly
- The payment deduction can be done through National Electronic Fund Transfer (NEFT), Electronic Clearing Service (ECS), and eCMS (electronic cash management), and Standing Instructions (SI) mandate.
Take Away
Given a multitude of options in front of you, buying life insurance can be overwhelming and tedious. Buying life insurance necessitates enough time and commitment. The process of purchasing an online life insurance policy is much easier and quicker. With the advanced technologies, all the details are available in one click and the whole process of comparing the proposal, choosing the policy, reviewing the terms and conditions, and initiating the payment can be completed in just a few minutes.
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