Rohan MathawanNot everyone is aware of what insurance exactly is. Some consider it as an investment, while for some, it is an unnecessary expenditure. Some find it a bit difficult to understand, and get caught in the web of features, benefits, plan inclusions and exclusions. However, Insurance is way ahead of all these!
In modern times, insurance is just a prudent way of sharing risk. Though it doesn’t yield profits like a mutual fund or stocks, it certainly covers financial losses in case of emergencies and unexpected events in life, like, death, disease and disaster.
Below we present some tips to assist you in buying the right insurance policy. This will not only save you the hassle and pain of hours of insurance review and paperwork but also save hours of discomfort in standing in queues to get your insurance policy. Apply these tips to choose the right insurance option and stay secured in life.
How to Buy the Best Insurance Online?
Insurance of any type, whether it is for life, health, vehicle, or travel, gives you financial protection to face unexpected contingencies in life. In today’s world, securing the right insurance plan becomes an integral part of your financial planning. With most of the insurers offering their policies on their websites, it has become very convenient and easy to secure an insurance policy. Gone are the days when you had to stand in lines to meet an insurance agent and get your policy work done. Now you can easily purchase an insurance policy online in a few clicks on your computer or smartphone.
First, Identify Your Insurance Requirements
This identification is important because many people buy insurance in a hurry or anything that is suggested by their friends or insurance agent. We all have different insurance needs, depending upon our available financial resources, family members, or type of insurance required. The one shoe fits all doesn’t go aptly in case of choosing the right kind of policy. When buying an insurance policy, you first have to assess your insurance needs. If you are in a stage of life where you are financially well-off, you can go ahead with a long-term high insurance cover. However, those who have some financial constraints would like to go ahead with affordable short – term plans.
Second, Comparison is the Main Mantra
The online world offers plenty of websites that offer review facilities of all kinds of insurance plans. In an increasing number of insurance companies in the insurance sector, most of them have official websites where you can have sufficient information about the required plan or insurance policy. From a detailed discussion of the features and benefits of the plans to their eligibility criteria, inclusions and exclusions, these websites give complete information, along with FAQs rich in details. Most of your queries can get solved online if you have the time and patience to scan through the website pages.
Given the vast number of policies available, you need to compare similar plans, so that you can find out the best one as per your needs. You just need to go through the features, tenure, premium rates and additional benefits, which are provided as a detailed comparison of many financial review sites.
Third, Fix Your Insurance Budget
Once you have ascertained your insurance needs and made up your mind to buy a specific insurance policy, you have to act as per your budget. Try not to exceed your financial budget while deciding insurance premiums. Sometimes, the availability of specific plans can prove costly for you if you have not done your homework correctly.
It is for this reason that plan comparison is a must. When you are able to get a series of benefits for a lower cost, there is no need to go for high-end plans whose premiums well-exceed your financial limits. However, here prudence has to be exercised that in trying to stick to the budget, your general well-being and quality of service that you will get from the insurer should not be sacrificed.
Fourth, Read the Brochure for the Fine Print Carefully
All insurance websites or the review sites provide you with comprehensive information about a myriad of plans. When you decide on a particular plan to buy it, there are a number of “terms and Conditions” also mentioned. Many people ignore this part as they think it is just a waste of time to go through the fine lines of the online policy documents and hurry to click “I agree.”
Restrain from making a hurried reading of the fine print when you buy an insurance policy online. This area is where the main coverage features, inclusions and exclusions, provisions, and any exceptions to the policy lie. Carefully go through the rules related to cashless hospitalization, critical illnesses covered and coverage for disability. You should be clear about what your policy provides for your premium amount and what it does not.
Fifth, Opt for the Right Riders
Buying rider insurance is generally a preferred choice. These riders act like an add-on cover to your primary insurance policy and enhance the coverage or the number of features for an extra premium amount. While some insurance companies offer in-built riders with the plans at no additional cost, some other insurers charge nominal premiums for providing extra benefits.
The best part of purchasing riders is that the payment is made once, but you can avail of the multiple benefits to cover risk at minimal costs. However, it would be best if you were specific about your need for riders when you buy an insurance policy online. Premium waiver riders and riders that provide accidental benefits or family income in case of permanent disability or terminal illness of the policyholder are a wise choice. However, not all riders are the same. Some riders may not be required by you or prove to be more expensive than the primary insurance policy.
It’s always wise to understand the terms of the rider plans and accordingly make a choice.
Sixth, Familiarize Yourself with the Purchase Process
This is the last step before buying your insurance policy. The online process is different from the offline one, where a real insurance agent does all your paperwork. Here you have to make a careful selection of your plan, premium type, frequency as well as the payment mode when making an online purchase. If you are used to online buying and selling, this process will be just a matter of a few clicks.
However, those who do not find themselves that much internet-savvy, can either sit and study the steps in detail, till they are ready to make a confident online purchase; or take help from friends. Better still, you can always call the insurer’s customer care or sales number or chat for assistance.
Final Note!
These are just some of the tips to assist you in making a wise choice. The scope of insurance policies and their features does not limit to these tips alone. You have the entire internet at your disposal to check websites, study reviews, compare and seek information. Just make it a point to do some study before jumping on to buy an insurance policy.