It is convenient, quick, and easy and in all odds will cost you less. This is the reason why online insurance purchase in gaining popularity and bears all the ingredients to become hit with today’s technology-savvy generation who like to do everything at the click of the mouse and get the things in a few seconds.
Usually one can buy a policy from the service provider company agents, which is known as offline way of buying the policy while some companies also sell the policy online. The online policy can be availed via the site of the service provider where the documents are also sent online in soft copies and payment is also made via online channels such as net banking.
The trend of purchasing online insurance is steadily and slowly gaining popularity. To fix an appointment with the insurance agent or call a broker or visit the insurer’s office is now fast losing ground.
Nowadays, the entire range of insurance products whether it is the motor, health, life covers and travel you will find all these available on the net. Of course, many insurance companies have made exclusive offers available online term plan that is not otherwise available with their agents or at their branches that aggregate websites
There are online general insurance and life products, in addition to insurance companies directly selling their products. These insurance companies hawk insurance plans and assist you in comparing products under the same category. You know your options easily due to these sites, and you are well informed while buying a cover. This is the reason people opt for buying insurance policy online.
These online policies at first look appear to be a win-win proposition for both the consumer and the insurer, but it has its drawbacks.
Advantages of e-shopping
With respect to both premium and charges, online insurance plans are proving to be value for money products. The major advantage of it is that you can do a perfect comparison of prices and features of various companies. To know pros and cons and then purchase what suits you the best.
The online shopping of insurance plans cuts down the distribution costs thus allowing consumers to purchase directly thereby bringing down the distributor’s margin and this allows you to compare insurance plans. The cost can be further cut down if this entire process is carried in the virtual world.
Drawbacks of online purchase
Theoretically, the online purchase of insurance plans appears attractive, but it has certain limitations. The insurance plans that are fed on the net are preset to a very large extent. Only vanilla versions of the policies are given on the net that cannot be modified to the needs and requirements of the customer. It lacks customization of plans to suit your needs, and you cannot negotiate your premium with the company or the insurer. Online exclusive term plan doesn’t have the option to select rider like critical illness, accidental disability benefit, and premium waiver covers and you have to pay extra money for them.