Why Buy Life Insurance Online?

While the Indian Insurance industry distribution is still very much focussed on the Agency and Bancassurance channel, Digital distributors like Web Aggregators and Online Brokers are starting to make an impact in the industry and is one of the fastest growing channels in terms of the number of policies sold each year…how they still have a long way to go to catch up with the other channels, but they are now being seriously evaluated as a channel with customised processes and products being introduced by the Life insurance companies specific to this channel. Many Online Brokers are also offering the POS distribution model to expand their reach across the Metros as well as Tier II and III towns across India, this is also being pushed aggressively by the IRDAI, the Indian Insurance Regulator, given that technology is being used to reach out far and wide into the Indian heartland. With Payment solutions and UPI interface services integrated through most distribution websites, coupled with their offering of various payment modes including Credit and Debit cards and Internet Banking, the customer is also able to not only choose and appropriate insurance plan, they are able to pay for the same online and complete purchase transactions. In Life Insurance, Term Insurance plans are the most popular online buys, but Investment Plans are also gaining traction.

So what are the Benefits of Buying Life Insurance Online for the Customer? Why should they explore this channel really seriously when wanting to purchase a Life Insurance policy?

• Saves Time and Effort – Unlike an offline purchase, which can be time consuming and inconvenient since the customer may have to meet the Agent or Bank multiple times, Online Life Insurance can be done anytime from anywhere with a few clicks of the mouse. Most Insurance distribution companies have made the process of buying life insurance automated and easy to follow, to save time and hassle free.
• Easy Comparison Process among Plans / Insurers – Searching for information about insurance companies and their Life Insurance plans, Information about their Financial strength and Claims Settlement capabilities, Promoter groups and their standing in India’s Corporate world are so much more easier online than offline. Thus, finding the best life insurance plans online is simple because most online websites including eindiainsurance offer a comparison between similar plans/policies that the customer can review before making a final decision. One can check out for the benefits, features, coverages and exclusions before making a decision.
• Transparent and Secure Payment Process – Post deciding on the optimum insurance product to buy, when the customer is paying insurance premiums online, all websites have a variety of fast and secure payment alternatives to choose from, including net banking, debit cards, credit cards, UPI payments etc. All of these payment gateways which are integrated with these websites are secure and certified by the corresponding banks which are digitally integrated with them as well. Hence most payments are simple, quick, and secure, and you will receive an instant online premium receipt, which can be submitted to claim tax exemptions.
• Premium Calculation Tools (Calculators) – Many customers are always confused in terms of how much Sum Insured / Coverage they need under their Life Insurance policy. Some of them have existing plans, while some are buying policies for the first time…So a few websites offer calculators, which based on some Input information like Age, Occupation, Lifestyle habits, Location can recommend Optimum Sum Insured for the proposer. One can also add and remove features /add-ons and see how they impact the policy premium using these calculation tools. Many customers also have a budget in terms of premium and would like to buy the best possible cover within this budget, and these tools will help.
• More Competitive Premiums – Buying Life Insurance online is relatively cheaper than the offline process since the costs associated with intermediaries and a few other fixed costs are negligible or removed in the online model, which is then passed back to the customers. Buying term insurance plans offline usually necessitate a number of meetings and time spent meeting agents/banks etc, which is done away with in an online process, saving time and money. Another important reason for more competitive premiums is the profile of the online customers, are generally assumed to be educated and informed, tech savvy, upper middle class with higher disposable incomes and given this better risk profile, premiums are more competitive.
• Manage Policies Digitally – The online customer wants everything at their fingertips and at the click of a button. Buying online insurance also gives the customer added comfort of managing their policies online…many website have a Digital Locker where the customer can upload their policy copies, medical records etc so that everything is in the virtual world and can be accessed from anywhere in the world, if required. Online customers also prefer to transact for their Investment Plans in a simplified manner. Customer can also file claims if required online by submitting the requisite documents for speedy processing.

These reasons clearly indicate that customers can find merit in purchasing Life Insurance online without any hassles and in a convenient, transparent and secure manner.