Over 70% of global organisations have a digital transformation strategy set in place. This means that as long as you have an active internet connection, you can find any service or product you need with ease. For many businesses, a successful digital presence means improving the customer service experience, which is why it would not be out of place to believe that you can buy important financial assets and insurance products online without any hassles. 

Of course, having said that, the act of purchasing something as important as insurance online might feel a little counter-intuitive. What if you make a critical mistake that negatively impacts your cover? What if you pick a policy that only looks great on paper, and doesn’t do much else?  

We’re here to help settle the debate on whether you should buy insurance online or through an agent!   

6 Benefits of buying insurance online (vs. through an agent)!

As is the case with most online shopping experiences, buying insurance online can be quite beneficial. The following are some of the advantages of the same: 

• Unbiased information: Here’s something many insurance brokers won’t tell you – insurance companies and banks pay brokers a commission on selling their products. When a broker, therefore, recommends a product to you, the percentage he/she can earn as a commission is always a factor in the recommendation process. In other words, the information that you will be presented with may not be entirely biassed. Most online insurance aggregators simply display the pertinent information on their websites, letting customers decide which policy suits their needs the most. 

• Convenient experience: No one likes salesmanship. When you’re out looking for a certain item, unless you’ve specifically asked a question, you rarely want someone to come up to you and start pushing products on you. The same holds true for insurance products too. When you use a website, you have all the time in the world to browse the best insurance policies, read through brochures at leisure and answer your questions before picking one policy. 

• Multitude of payment options: One of the biggest advantages of buying insurance plans online is the sheer number of payment options that you have at your disposal. You can choose UPI payments, netbanking, and app-based options (like Paytm) to enjoy various cashback offers. You can also set your policy to ‘autopay’ and ensure that you never miss a premium.  

• More Affordable: While it is recommended to choose your policy based on multiple factors, many people  prioritise the premium amount when picking their policies. Now, when you buy an insurance policy through an agent, you end up paying more money due to built-in costs (such as the cost of a financial advisor). This cost can be anywhere around 30-70%, which can represent a large chunk of the premium. In other words, even if you stick to the same budget, you’ll be able to get a better policy and more comprehensive cover when you buy a policy online. 

• More Transparency regarding the claim settlement ratio: The claim settlement ratio shows you how often a company approves insurance claims. For instance, if a provider’s claim settlement ratio is 90%, it means that 9 out of 10 claims are approved. You can use this information to surmise that your claims will be approved too (as long as it doesn’t fall under the exclusions)  No agent in the world will undersell his own company by admitting that the claim settlement ratio is low. However, a website has no such obligation to any company. You’ll find all the pertinent information, like the claim settlement ratio, displayed on the policy’s page.  

• Easy Comparisons: Finally, a huge perk of buying insurance online is that you can compare various policies and identify the one that suits your needs the most. Most websites like CarePal Secure offer a comprehensive table that lets you compare features such as waiting periods, sum assured, exclusions, inclusions, term period and so on. When you’ve got all the information you need right in front of you, it becomes easier to pick the policy.  

How to buy an insurance policy online?

 Buying an insurance policy online is extremely simple – all you need is a steady internet connection and a payment gateway. However, when you’re about to buy insurance online, you must keep a few things in mind to ensure that you have a positive purchase experience. These are: 

• You must assess your needs: The first thing you need to do, before narrowing down a few suitable policies, is assessing your needs. If you’re buying health insurance, for instance, you must take stock of your and your family’s needs. Keep one eye trained towards the future when buying a health insurance policy. Let’s say you’ve got a family floater policy that covers your dependent parents and spouse. However, you did not buy a maternity rider on time, and now, all hospitalisation expenses related to childbirth must be borne out of pocket. Understanding where your future is headed, and how you picture your life is very important when buying insurance of any kind.  

• Research different policies and features: Understand what different policies in the market have to offer. Sometimes, you may not consider a certain need, but on reading about it, you may realise that a policy’s feature sets it apart from the rest. For instance, let’s say you have an ageing grandmother who lives with you. When buying a family floater policy, you read that a certain policy supports AYUSH treatments, while the others you’ve narrowed down don’t do so. This makes the policy superior (based on your needs) as older people are often directed towards AYUSH treatments as they don’t take a toll on the ageing body.  

• Check the claim settlement ratio: As mentioned earlier, a high claim settlement ratio indicates that the provider typically settles claims and does not leave its customers in a lurch. A low claim settlement ratio indicates the opposite. Be careful while choosing the policy as this factor can mean the difference between a favourable and unfavourable experience.  

• Don’t forget about the free-look period: A free look period is like your safety net – during this period, you can cancel the policy without any consequences. Every policy has its own free look period, however, most commonly, this is a 15-day window for customers to commit to the policy. If you happen to find a better health insurance policy like CarePal Secure during this period, do not hesitate to switch. After all, it’s about your family’s health and happiness!  

• Make sure you understand the exclusions: Exclusions are instances that negate the policy’s coverage. For instance, many health insurance policies do not cover treatments for conditions arising due to AIDs. The list of exclusions is important to understand so that you do not have any unrealistic expectations from the policy. 

Final Thoughts

 While insurance agents have been helping customers pick the right insurance for decades, we must admit that times are changing! With insurance providers like CarePal Secure now adopting digital transformations, you can bank on quick and easy purchases,  good customer care services and speedy claims!