Buying a term insurance online offers several benefits, including security and cheaper rates. Since there is no agent commission involved, buying a term plan online can be about 20%-40% cheaper than the offline mode. Moreover, you don’t need to run from company to company to get their quotes, you can just compare and analyse benefits provided by various insurance companies sitting at home. However, the absence of an agent makes you responsible for your choices.
Here are 4 common mistakes that you should avoid when you buy a term plan online.
1. Avoiding Proper Research
Before deciding on the purchase, it is important to do thorough research on various plans and their features. While the policy’s premium and claim settlement ratio of the insurance company might be major deciding factors, you can also look for other features, such as flexibility, coverage, options to add riders, etc. Also, it is imperative to read all the policy documents, understand the terms, check for discounts and then decide if it is suitable for you.
2. Not Comparing Various Plans
Evaluating and comparing various insurance plans will help you make an informed decision and get a better policy at a lower premium. The same company will offer various plans, suited for various needs. Make sure to compare these different policies, as well as the tenure of the plans before deciding.
3. Submitting Inaccurate Details
You need to be very carefully while filling your details in the insurance application form. Also, it is very important that you remain honest about your lifestyle, financial liabilities and medical conditions while filling an insurance form. Filling insufficient or inaccurate details can lead to the insurance company rejecting your claim. Moreover, the insurance company can also levy fraud allegations against you for hiding important health or financial facts from them.
4. Buying Inappropriate Cover and Tenure
Before zeroing in on a particular plan, first analyse what your medical conditions and financial liabilities are. Don’t get enticed by low premiums and end up buying higher coverage than what you actually need. According to your affordability, choose a plan with the right premium. Another big mistake while buying an online term plan would be buying an inadequate cover for a short tenure. You might believe that a certain cover is appropriate at this moment of time, but even an insignificant inflation of 4%-5% can lead to a financial crisis.
So, you need to consider important factors, such as your age, inflation, financial responsibilities, etc., while choosing a suitable term plan. If you are still confused regarding which is the right term plan for you, it is best to contact the insurance company and get them to answer all your queries.
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