Mistakes To Avoid While Buying An Online Life Insurance Policy

Buying an insurance policy online can appear as a faster and hassle-free task. Well to be true, it is. Online process has made insurance buying much simpler and easier. Basic know-how of the internet and a decent connection is all you need to get yourself a suitable policy. However, there are still a few things which one must keep in mind before making the purchase.

Here are a few common mistakes that we do while buying an online policy –

• Provide Incorrect Information: 
  While filling an online form, there might be an agent around you to look into the accuracy of your details. However, the role this information plays during the claim process remains the same. If the insurance company finds out that the information provided is deliberately misled or is entirely incorrect, then there are high chances of your claim being rejected. Some insurance companies can also deny insurance altogether if the policyholder provides wrong information. In the worst cases, there can be the allegation of fraud if the policyholder has lied to a large extent. Even a minor lie can lead to rejection of your claims. Hence, be extra careful while providing your details. Ensure that every detail is correct. Get all the facts correct before filling the form.
• Inadequate Research Before Buying: 
  While buying life insurance policies, our decision is usually based on two major factors — the cost of the policy and the claim ratio of the insurance company. However, in the case of inadequate research, you might settle down for an average plan. Research about not just one, but various plans which are offered by the companies as well as which are listed on the aggregator’s sites and then finalise the most suitable one.
• Forget to make the renewal payment: 
  Unlike in traditional insurance, when you buy an online policy, there is no agent to remind you about the premium renewal dates. As there is no one to remind, you are required to remember the dates and pay on time in order to save your policy from lapsing. The best way is to have your bank do it at every scheduled date and month. However, for this, you need to ensure that you have enough money in your account.
• Buy an unsuitably large cover: 
  Online insurance policies are quite popular for their costs. Most of the online policies offer low premium rates which are definitely an advantage unless the policyholder gets carried away. In many cases, the buyer tends to take a cover much larger than they require as the premium rates are low. However, one must look into the amount he/she is investing in premiums. Premium, however less, if paid for a cover which is not needed, is a waste. Don’t let the amount of premium be the deciding factor in choosing a policy or a cover for yourself and your family. Evaluate every influencing factor and then buy a policy.