In today’s day and age, people are spoilt for choices, as there are numerous options for every need that may arise in life. The same theory also applies for insurance. Thanks to internet, one can browse, research and analyze every possible variant of insurance available. Hence, it is highly prudent to first understand an individual’s own requirements and budget constraints before making the plunge.

Factors to Consider

Here are some of the major factors to consider when buying insurance online:

  • Individual Needs: There are many different types of insurance available in the market. It is important to know if one needs Home insurance, Vehicle insurance, Term insurance, Health insurance, Liability insurance, Guarantee insurance or Fire insurance. For instance, health insurance and term insurance are quite basic and is essential for every citizen of India. Businesses can opt for property insurance, liability insurance and fire insurance depending on the need.

  • Due Diligence: There are many insurance companies available who sell online and offer a wide variety of coverage. To buy a policy, it’s imperative to check more than one site when doing thorough research. Some of the factors to investigate before settling in on an insurance company and its policies are: scope of network, customer service capabilities, reputation and financial health of the insurance company, policy terms and conditions, maturity date and charges, etc.

  • Easy Claim Registration and Settlement Processes: One of the main reasons to buy insurance online is that it saves both time and money. When purchasing an insurance online, the online application process should be simple and user-friendly. Same goes for claim process. If documentation and claim settlement processes are minimal and hassle free, then availing the policy becomes easy.

  • Financial Limits: Be sure to buy insurance policy that does not put a strain on the existing financial resources and maintains an individual’s current lifestyle. Also note that deferring payments can lead to higher rates and lead to premature cancellation of the policy. Hence premiums must be affordable and sustainable for a long period.

Comparing Insurance Online

There are many insurance comparison websites available online and different insurance companies appear on different sites. Comparison websites are quite popular in India. These websites provide details on the available policies, their offerings, historical data on different insurance companies and competitive prices based on an individual’s income. With just a few clicks, one can get all the available information in just a couple of websites instead of skimming through dozens of individual sites. Price comparison websites offer highly competitive deals and quotes. It is however not recommended to use these websites only to get competitive quotes or to choose the cheapest policy available.

Comparing Term Insurance Online

A term insurance or life insurance policy is usually taken when the family is financially dependent on one member. This promises financial security when the bread-winner of the family dies prematurely or meets with an accident or gets critically ill/disabled.

Key Factors to Consider:

One should consider the following factors while comparing a term insurance policy online.

  • Critical Illness Over: Critical illness cover is usually taken as an additional cover along with the life insurance cover. This plan covers the cost of critical illness like stroke, heart attack, cancer or brain surgery, which can cost a lot of money. Expenses such as diagnosis, hospitalization, doctor’s consultation, medicines and loss of income can cripple the family’s finances. Critical illness insurance will cover all the hospital expenses and ensure that the family has enough to sustain their normal lives.

  • Claim Settlement Ratio: When choosing an insurance company, one should check the claim settlement ratio of the company. The claim settlement ratio is the percentage of settled claims to the number of filed claims. When comparing term insurance online, one should check the claim settlement ratio and the number of claims that the company has settled in a year.

  • Payout Method: Any term insurance policy should give options to the nominee to choose his/her preferable payout method. Some families may prefer a lump sum amount at a single shot while some may opt for monthly income to sustain their lifestyle.

  • Premium Waiver: Check for insurances that will waiver the premium and continue providing cover in case of permanent disability.

Comparing Car Insurance Online

It is mandatory to buy insurance policy in India for both commercial and personal vehicles. A car insurance reduces the loss and damage that an individual sustains in case of accidents, theft, fire or any other third-party liabilities. Third party car insurance is the minimum legal cover needed for a car owner. It covers any legal and financial liability when an individual’s car is involved in an accident with a third party. On the other hand, Comprehensive car insurance covers damages caused to one’s own car as well as damages to third party vehicles. Buying and renewing a car insurance online is simple and easy.

Key Factors to Consider

No doubt buying car insurance is a hassle-free option, however, one must consider a few factors while doing the same:

  • Reputation of the Insurance Company: It is important to understand the quality of the insurance company when comparing online. Reviews and Testimonials on several comparison websites as well as reviews on social media sites can help in accessing the company. A buyer can check for user reviews on customer service, average response time and claim settlement ratio.

  • Insured Declared Value (IDV): In case of car theft or damages beyond repair, IDV will be the approximate amount of money that the insurer will pay to the car owner. When comparing car insurances online, it is advisable to choose an insurer whose IDV number is closer to the market value.

  • No Claim Bonus (NCB): NCB discounts have to be taken into consideration when comparing insurance policies. It is the bonus on premiums that can be availed when claims have not been raised during the policy year.

  • Add-on Covers: Car owners can choose a comprehensive car insurance that offers end-to-end coverage. Several add on benefits like passenger cover, zero depreciation cover, engine and gear-protection cover or roadside assistance can help the person to maximize his/her financial benefit.

Comparing Health Insurance Online

Choosing the best health insurance plan can be a daunting task. There are a variety of health insurance policies in the market – family floater policy, senior citizen policy, critical illness policy, personal health insurance, etc. Many individuals prefer to buy health insurance online due to its numerous benefits like - accessibility, price comparison, transparency, ease of transaction, convenience and 24/7 assistance.

Key Factors to Consider

Factoring the below-mentioned, one can ensure the right type of health insurance policy:

  • Network Hospitals: Every insurance company has tie-ups with a large number of hospitals where the individuals can avail cashless services. When choosing an insurance plan, the buyer has to check the network of hospitals listed under the policy and the proximity of these hospitals in his/her area.

  • Sub-limits: Some health insurance policies may have limits on certain medical expenses like room-rent, doctors consultation fees, health check-ups, bed charges, etc. It is preferred to choose an insurer with no sub-limits or higher sub-limits.

  • Waiting Period: Most health insurers have a waiting period clause in their plan where individuals have to wait out before making a claim especially for pre-existing illness. A health insurance plan with minimal waiting period is usually recommended. Alternatively, there are a few insurers who offer cover from Day 1.

Final Word!

When comparing insurance policies online, most factors like pricing, financial stability of the insurance company, claim to settlement ratio, No Claim Bonus, Cover offered, etc. are applicable that need a close consideration. Apart from these basic factors, there are some added components that need to be analyzed to buy insurance policy online.

(The above story first appeared on LatestLY on Oct 14, 2020 05:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).