You must have at some time or the other bought a product or service online. These days it could be any out of a movie ticket, a train or air ticket, a book, clothes and even groceries. Then why not insurance? – you may ask. Well, some of us are still not comfortable because even today, insurance, unlike any of the products/services I mentioned earlier, is largely a product which is sold and not bought.
Here’s why all that is changing now.
Following are the myths about buying Online Insurance.
1. “It is not easy to understand insurance products online”
This is completely opposite of the truth. In fact, insurance products are better understood online because they are shown transparently. When insurance is sold by an intermediary (agent, banker, broker, etc.), they showcase the product in a way that will make the customer either buy the wrong product, or buy it without telling all the features of the policy to the customer. Online insurance products, on the contrary, become easy to understand.
Not just that. Especially when you buy online, it is very easy to compare insurance plans from various companies. If you try to do it offline, you have to physically check and understand each product. Online Insurance buying process is easy and you get the confidence that you are indeed making the best choice among all options in the market.
2. “Nobody will help me if I buy insurance directly”
Again, completely opposite of the truth. When you buy offline, yes, you would have an agent to help you but most agents are ill-equipped to answer your queries immediately. They typically get in touch with their company and check with them. Sometimes, they can come back with a half-answer and may need to check with the company again. Why do all this? Just get in touch with the company directly. Online Insurance, in fact, offers additional contact techniques such as chat and email to get a response from the company.
3. “Family may not get the claim if I buy online insurance”
Not true. The way you buy has got nothing to do with the way a claim is processed. The claim depends solely and entirely on what you have mentioned on the application form (physical or online) and medical test (if any).
I would go on to add that in the case of offline, an agent may cut short some important details that may affect the claim. When you buy online, you have the full chance to mention everything clearly (and you should) so that claim is not a issue. So online buying is actually better than physical (or offline).
4. “My information is unsafe if I give it online”
When you use a physical application form, the information can actually go anywhere intentionally or by mistake of the agent carrying your form. You may also hesitate to mention certain confidential information that is important for the issuance of the policy.
When you fill up an online form, the information goes directly into the company’s computer database. No chance of any leak or misuse. Nothing can be safer than that.
5. “Online insurance payment is difficult and risky”
Payments are as good or not as any other product that you buy online. No insurance company takes your information directly. They all use the same payment systems (gateways) as other product/service websites (such as airlines, etc.) to process your payment. If you can share your bank account / credit card for other products, why not for online insurance?
And remember, Online Insurance is the Green way to buy! No paper, no traveling, all from the comfort of your home, making it a nature-efficient way to get protection for your family, your family’s health, your car, your house, your travel, etc. through online insurance products.
No wonder in the last year FY 2012-2013, nearly 5,00,000 policies were bought by customers online.