The Indian Insurance regulatory authority of India (IRDAI) has made several efforts to keep the insurance process as transparent as possible. Still, many myths surround the online buying process of life insurance. Let us try and debunk some of them in this article.
Myths Surrounding Online Life Insurance
There are still many people who hesitate before buying an insurance policy online and prefer to get it through offline channels. A few myths responsible for this hesitation can be enlisted as follows:
- Myth#1: It is a complicated and tedious process
- Truth: Contrary to popular belief, online life insurance buying is a very simple process. It can be done anywhere and at any time. Just log in and start. Not only does it save precious time, but it also sets the customer free of any hassles regarding meeting with an agent or visiting insurance offices. It can be easily bought by anyone with a basic knowledge of the internet and computer.
- Myth#2: Online Life Insurance is costly
- Truth: Buying an online life insurance plan is quite less costly than traditional policy buying. This is because of two main reasons- no involvement of the agent, thus resulting in you saving on his commission, and secondly, fewer infrastructure costs. The amount saved by the company is passed to the customer in terms of reduced prices.
- Myth #3: Takes longer time in getting the documents
- Truth: On the contrary, the policy documents along with the policy number of online life insurance are mailed as soon as the payment is done. You can take a printout of the same too. In case you miss or misplace any paper, you can just log into your account and reprint the same.
- Myth #4: Lesser Chances of Fraud
- Truth: Several online portals help you in comparing different plans. However, when you zero in on one, you have to buy it directly from the insurance company’s website. This reduces any chances of fraud. There is always a chance of getting duped by insurance agents who use different tactics to lure customers.
- Myth#5: Online Insurance puts your privacy at stake with no personal assistance from the company
- Truth: All the online transactions are done over a secure network with complete security of your privacy. This is done as per SSL-certified protocols. If still, there is any problem, all the insurance companies offer online personal assistance in real-time which is much better than waiting for your agent’s call or going through the insurance company’s intricate IVR for telephonic assistance.
Though online insurance buying is still in its primary stage in India, it is quite competitive with companies engaging in a price war against each other. This puts you in a unique position to enjoy the benefits offered by them on their online platforms rather than offline insurance channels. Subscribe to our newsletter that gives you an insight into what our financial experts think about the same to get better clarity and information.