Authored by Parag Raja

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The global pandemic brought about a host of changes, a large part of which included transitioning everything online, from workstations to the purchases of everyday essentials, insurance too was not left far behind. This transformation on the back of fast-paced technology has made the purchase of insurance as simple as a click away. There are numerous companies offering insurance online with facilities to analyze and choose as per one’s suitability.

The pandemic indeed brought things to a standstill but instilled the importance of having insurance benefits, be it life, health, or non-life.

The current situation has significantly highlighted the security aspect among people especially the millennials and Gen Z, who perhaps formerly didn’t think that insurance was important for them by virtue of their being young.

Over the last year, the insurance sector has experienced an influx of customers opting for insurance for themselves as well as for their families. Not just that, but the perception and preference of buying insurance online have also changed since the pandemic. The millennials are looking for smarter insurance solutions over complex paperwork and prefer online medium to buy protection and health cover.

The online insurance buying process has alerted customers about the online frauds and scams that occur. Rising awareness on safeguarding against online frauds and 24x7 availability of information has given customers the much-needed confidence to purchase insurance online. There are multiple aspects to be taken into consideration while buying policies online.

Below is a checklist that can be referred to before buying an insurance policy online:

Ask questions

It is always advisable to speak to one’s financial advisor, customer care executives to get a thorough understanding of the product and its features that one plans to opt for. They should try and get a thorough sense of the policy term, their premium payment commitment as well as the life cover and benefits that they might receive, if any, at maturity.

Transparency is key

It is necessary to be absolutely truthful while filling out details once you have selected the policy online to ensure the smooth issuance of your policy. Insurers validate the information one provides through medical records, drug prescriptions, other reports, etc.

Analyze your Financial Situation

It is imperative to have a reality check on one’s current financial health before opting for any insurance. This will help you arrive at the right life cover value to ensure the financial protection of your dependents while ensuring you have the means to pay for the premiums for the entire duration of the commitment.

Look for the best rates but without compromising on features

As mentioned earlier, online buying has become easy and convenient. It gives the users several options to use from which includes buying policies as well. Users can compare and evaluate the best-suited policy that gives the most beneficial coverage at affordable prices.

Analyze Premium and sum assured cover

Don’t just focus on the premium, but also assess the company, study their financial ratings, growth aspect. Consider Sum assured, Sum assured computed in terms of expenses, at least 12-15 times the annual expenses with debt obligations, such as a home loan, also accounted for. It is always better and advisable to analyze and select the best. Insurance companies provide their ratings on their websites, one can also refer to the IRDAI website and rating agencies for fund information

Plan for goals

Your goal consistently makes the way towards easy planning. This implies your financial plans as well. Setting life goals is the key contributor that drives you to achieve them. In different stages of life, needs such as education, buying a home, marriage are goals that require proper financial planning in order to achieve. Different plans are available for children planning, retirement plans which you can consider according to your financial stability.

The move to digitization is unavoidable and the above checklist acts as a stepping-stone while selecting an insurance policy online. Increased internet penetration and an easy and hassle-free buying process have resulted in a surge in insurance inquiries and purchases online. It is believed that the digital wave will bring about huge changes in the sector making way for new expectations in the area of information, marketing, product offerings, service delivery and, claims.

The aim is to provide customers the best in class products with uncomplicated applications in both life as well as general insurance.

Parag Raja is MD and CEO at Bharti AXA Life Insurance. Views are personal