It is a no-brainer that online insurance has become popular in recent times. A lot of it has to do with the fact that more people are now using smartphones, and they are finding it easier to compare and purchase online insurance without having to visit the insurer’s local branch or consult with brokers/advisors. However, while the purchase process is considerably easier today, you should still know some of the key parameters with which you can compare insurance policies. Some of them are listed here below for your benefit.
Tips for Online Insurance Comparisons- Major Parameters
While buying online insurance, here are the key things that you should not forget to compare from the outset.
- Coverage- Always check the coverage amount promised by multiple insurance plans and companies. This should be adequate for covering your family’s needs in the future if you are not around. Of course, you should also have a proper coverage amount in mind (as per inflation and future needs), and this should closely match what is being offered in a particular insurance policy.
- Premium Amount- You may feel that choosing a policy that requires a lower premium amount is a good idea. But it is important to ensure that the coverage offered is sufficient. This principle can be followed by comparing multiple insurance policies based on the premium amounts that you are expected to pay for the same coverage. It will help you find the best deal without compromising on the coverage (don’t go for a lower coverage amount just because it is cheaper, since it may cost your family in case of any unprecedented future situation).
- Duration- Check whether the policy tenure is matching with your own needs. This can be anything between 10-30 years. It can be even more if you opt for a whole-life online insurance policy.
- Features and Terms- The terms and conditions of multiple plans should be examined with care, looking out for added benefits, inclusions and exclusions, claims process. You should also check for applicable fees and charges.
- Insurer’s Financial Conditions & Claims Settlement—These are also two key factors that you should not ignore. The insurer should be in sound financial health in terms of its revenues and overall growth. It should be well-rated and reviewed positively by most customers while having a high and healthy claim settlement ratio. This should be checked carefully before you make your final decision.
- Rider Options- Many insurers have riders attached to their policies that you can choose for a nominal increase in your premium. Common riders include critical illness coverage and accidental death benefits. Go through the lists of these riders and find the plan that offers you all the add-ons you want at the right price.
Once you’ve looked at all these parameters, you can safely go ahead and make an informed decision after comparing multiple insurance policies online. All you need is a little time and effort to make it work in this case.