The term "Online Insurance" is not new for anyone, we all are familiar with this.As insurance can be described as an agreement under which a company undertakes to provide a guarantee of compensation for particular loss/damage in return of payment(consideration) called 'PREMIUM'.
In present situation where everything is available on the INTERNET from household goods to clothes, furniture, gadgets etc, we can also buy insurance policies online.Now market is fully fleshed with online policies. The companies are introducing online insurance plans so as to make the insurance process easier and simpler.The one exciting feature is that it means more savings as plans are offered at lower rates.However, the price isn't the only factor to be considered.But to some extent, it attracts new buyers.
Thanks to the technological advancement, that now we are able to purchase policies over the Internet. We can buy it by simply log into company's website.Providing large range of policies to its clients, we can easily choose the one best suited to our needs.Along with this, it brings more transparency as all the regulations and clauses are mentioned in the policy.That enables you to compare various policies of companies so as to go for the best deal.
Online Insurance V/S Offline Insurance
!! Is low premium the only criteria for choosing insurance plans??
Not always, the premium must not be the sole determining factor for insurance.You should not fall for the charm of the cheaper insurance policies, in fact, you need to look at its fine side.Sometimes, for beginners, the cheap premium paid for the plan often jumps up to certain high percentage after the prospective buyer undergoes medical treatment.Also, in case if company make refund to customer, then it will deduct the amount of medical test that has been borne by the company itself.In some cases, few companies have started offering online plan without conducting any medical tests of the prospective customer.This is especially for those policies that contain sum assured of $50,000.And also, insured has to disclose his medical history to the company that can be used as an evidence in the process of the claim.
!! Claim Settlement Ratio:
In Online Insurance, claim settlement ratio is not required to be disclosed by insurance company to IRDA(INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY).According to the guidelines of IRDA, this ratio is the combination of both online and offline insurance plans.Further, due to the lack of data on claim ratio of online policies hampers its clarity.As the companies have started providing online policies from the last 4-5 years, before the claim is settled, early claims will go through high scrutiny.
!! Customer Support:
The objective of the plan is to get sum assured when the policyholder dies.In case, of Online Insurance, the insured's nominee has to communicate with the specified call center for the claim settlement.Where as in offline insurance, the broker/agent is the one point contact.He will work on the behalf of an insured person to get compensation.
As per the law of insurance, agent is the first underwriter to the customer.Thus, insurance is said to be the contract based on the principle of 'Utmost Good Faith'.Even missing of small details at the time of filing an online application form by individual may lead to cancellation of claim proceeds.
The premium of online policies may differ from company to company and sometimes it creates confusion in the mind of the buyer.Some of the factors that determine premium money are mortality rate, cost of medical tests, marketing costs etc.While some insurance companies are decreasing their rates by offering plans without any medical test of the buyer.But such online plans in some cases don't offer additional-services like accidental death, Permanent Disability Benefit(PDB) coverages to insured customers.
WHY WE SHOULD GO FOR ONLINE INSURANCE ?????
With the passage of time, we have witnessed development in all fields.Now we have upgraded version in almost all sectors like healthcare, automobile, education, employment, communication sector etc.Today we are equipped with all the latest infrastructure that are meant to offer best services to people.Even we need not go anywhere to purchase insurance plans for us. We have a large variation over the internet.The only thing required is that your knowledge to access the internet.So that, you must able to explore numerous plans offered by the companies in order to go for a right decision.
In consideration with all the formalities and long process, individuals can buy through online means.Or it can be said that the online insurance is one of the biggest examples of technological advancement.It simply reduces the time required in the buying process, thus clearing all its complications.
When it comes to highlighting the benefit of online insurance, the first point that clicks in our mind is, we can sit comfortably in the home and involved in the buying process.Some more features of online policy purchase are given below, that will help you to know more about this:-
1.Being user-friendly, it understands the problems of the user and hence works in a simpler way.
2.Interested individual can immediately purchase the policy after having selected it.
3.The amount of information present on company's website regarding various policies is another benefit of online insurance.These online portals are rich in information.They display all the required details to people that help them to decide accordingly.
4.By simply visiting the site, you can get familiar with company's different plans.
5.The prospective buyer can personally perform a research in order to unfold every aspect of policy to ensure better selection.
6.The individual can decide the plan after comparing premium of various plans.This brings more transparency and lucidity to the insurance process.
7.You need not wait in long queues to get policy document in hand, you can get it by simply operating through website links.
8.Online insurance gives you immediate investment proof by providing instant coverage.
9.The payment can be made in a simple way by using debit/credit card.
10.It works with all sorts of precautions so as to avoid any issue regarding safety and security.Also making the insurance process faster, it keeps it protected.
11.The policies are available at comparatively lower rate accompanied with maximum advantages.
When you seriously want to purchase insurance for health/auto/family or any other purpose then there will be nothing better option than buying it online.We can find out the answers to questions like Which medical conditions does health insurance company cover, what are the co-payments required, can policyholder select a doctor, what is out of pocket limitations etc. in just a minute on the company's-website.
Here is the list of insurance companies based in the United State Of America.These are those companies that are having strong national as well as a regional presence in the insurance sector.
- Admiral life insurance
- Cigna health spring
- The Hartford
- Liberty MUtual
- Mass Health Insurance
- Transamerica Corporation
Now insurers are offering countless plans of insurance that sometimes create confusion in the mind of insured.But that confusion can be got rid by first estimating your requirements (that what you actually want to cover).This will lead to right choice.For further benefits, one must not forget to make comparison, as it will provide you with the view of benefits about other similar policies.So that you may choose coverage accompanied with a long list of benefits at an affordable price.
In short, instead of sparing large amount of investment/savings to meet unexpected costs, it is better to utilize the time by purchasing online and also at cheap rates.