prpri 8 Misconceptions about Buying Online Term Insurance 8 Misconceptions about Buying Online Term Insurance


Buying term insurance offline is starting to become a thing of the past! With increased access to the internet, it has now become possible to buy everything online, even your term insurance!

Over the years, the insurance sector has stepped up its game and started offering online term insurance to its prospective buyers so that they can make the purchase, from start to finish, on their own. Even though more and more people are now buying online term plans, there are still many myths that make one second guess themselves. Let us address each of these misconceptions to help you buy online term insurance confidently.

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#Misconception 1: Buying online term insurance is a complex process, especially if you are not well versed with the internet. 

Contrary to popular belief, buying online term insurance is incredibly easy. It has fewer steps that have been simplified to facilitate anyone with very basic knowledge of the internet.

Furthermore, insurance providers often have a robust customer support system in place to help you get through these steps with ease. If you find yourself stuck at some point, feel free to call their customer care helpline number to get immediate help. It is really as simple as that!

#Misconception 2: Online policies may not have their claims settled by the insurance provider.

When you buy online term insurance, you are buying directly from the insurance provider. Therefore, you don’t have to worry about your valid claim being rejected. The claim settlement process is the same for all policies, regardless of how you bought them. The only thing you need to do is provide accurate details at the time of buying the policy, which will ensure that you are eligible for the claim.

#Misconception 3: You are unable to cancel a policy that you bought online.

All the transactions that happen online are duly recorded and validated. Therefore, there is no risk whatsoever for your online term insurance to be portrayed as non-existent. You will be able to cancel your policy as per the rules applicable, similar to policies bought offline. You have up to 30 days to return or surrender the policy if you do not like what you bought.

#Misconception 4: Life insurance does not offer enough returns on their investment.

When you buy a life insurance policy online, it turns out to be cheaper and more affordable due to the low-cost premium. You can save more money if you invest in online term insurance at a young age. The main purpose of a life insurance plan is to provide financial security to your loved ones in case something happens to you.

If you are worried about return on your investment, you can consider buying a term plan with a return on premium (TROP) option. As per TROP, you can enjoy maturity benefits if you outlive the policy term, unlike term insurance that only pays you death benefit in case the policyholder dies within the term duration.

You can check the benefits and features of both these plans online, compare them side by side, and then make an investment decision.

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#Misconception 5: Buying insurance online is a complicated process.

This cannot be farther than the truth. Most insurance providers have made their websites as user-friendly and interactive. Just keep all the information handy and enter the details in the proposal form, as requested. The process will not take more than 30 minutes, and you don’t even have to be tech-savvy for that!

For instance, if you want to buy Max Life online term plan, just log on to their website and generate a free quote using the online form. All this information will help you make an informed investment decision.

#Misconception 6: Claim settlement can be rejected for online policies.

The claim settlement process for offline and online policies is the same. If you have entered all the details correctly and accurately, then you don’t have to worry about your claim settlement being rejected.

Additionally, it would help if you considered buying your online term insurance from an insurance provider with a claim settlement ratio in the high 80s to 90s. It means that the company settled more than 80-90% of the claims that were raised in a given year.

#Misconception 7: You get limited options when you buy insurance online.

The fact is that online platforms allow you to check all the available term insurance options on a single page. This helps you make an objective decision after comparing these policies for their features and benefits. In fact, you are unable to compare policies objectively when you buy them offline.

#Misconception 8: It is not safe to share personal information online.

The insurance companies these days maintain a high level of information security to give you a safe platform to enter your personal data and make payments safely.

When you buy online term insurance, you can expect to get assistance at every step of the way. You can also refer to the IRDAI website’s FAQ section to get answers to the most basic questions. So, don’t hesitate to try the online experience.

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August 2021