Frequently Asked Questions About Online Insurance

Thanks to the technological advancement, customers can buy anything online – from products to services. Today, the insurance industry has upgraded to online services, simplifying both insurers and policyholders’ work. Believe it or not, when it comes to buying insurance online, people step back due to various risk factors and doubts.

So here comes a list of frequently asked questions about online insurance:

– What is online insurance?

– What are the benefits of online insurance?

– Why is premium low in online insurance?

– Do online term plans come with additional riders?

– How to buy insurance online?

– Is it safe to purchase online insurance from an insurer?

– What are the available types of insurance plans in India?

– Which documents are required to purchase online insurance?

What is online insurance?

Online insurance is nothing but buying an insurance policy online from the insurer’s company website. You can buy life insurance online with simple few mouse clicks within the comfort of your home or office. Compared to traditional insurance purchases from a local agent or by visiting the branch, online insurance is a super-easy and cost-effective method of buying insurance plans.

What are the benefits of online insurance?

Next time you seek to buy an insurance plan, you know that purchasing it online can save your money and time. The following are the benefits of buying online insurance plans:

– Cost savings with a lower premium

– Calculate the amount of premium payable for desired term insurance coverage

– Easy comparison of different plans with different insurers

– Easy to purchase within a few clicks

– Simple documentation and fast processing

– Transparency

Why is premium low in online insurance?

No matter how much your financial goal is, every policyholder wants to buy an insurance plan that involves less cost. Online insurance is cheaper than buying the same policy through agents or middle-men. This is because, when you buy online, you directly pay to the insurer eliminating the absence of agent fees, commission, and brokerage charges. There are no additional costs involved, which lowers down the premium payable.

Do online term plans come with additional riders?

Yes, you can add suitable riders that are available with these plans. An online term insurance plan lets you choose different riders/ add-ons available on payment of additional premium. To maximize insurance benefits, it is advised that you choose the rider that perfectly meets your requirements. You can choose from multiple options like critical illness rider, disability waiver, accidental death coverage, etc.

How to buy insurance online?

– Visit the insurer’s website and click on “Calculate Premium.”

– You will be redirected to an insurance calculator page to find your appropriate life cover on clicking.

– Enter your personal information like your name, date of birth, phone number, smoker/non-smoker, annual income, and click the “Calculate Now” button.

– By submitting the details and verification, the insurer representatives will contact you through phone, SMS, WhatsApp, or any other mode. You can choose your benefits and get a quote.

– Once you have finalized the benefits under the insurance plan, pay the premium, and fill the additional details.

– After filling the form, submit the relevant documents required to complete the online insurance purchase process.

Is it safe to buy online insurance from an insurer?

While buying online insurance, you are directly purchasing from the insurer, eliminating any intermediaries in between. Since all your data is kept confidential on their secured servers, and your premiums are paid through secured payment gateways, it is safe to buy online insurance plans.

Also, you can be assured of your money going to the safe hands. The premium payment for insurance is tax-deductible, and the returns on the premium paid are tax exempted under the Income Tax Act.

What are the available types of insurance in India?

General and life insurance are two different types of insurance in India, which is then sub-categorized as follows:

– General insurance – further classified as health insurance, motor insurance, home insurance, fire insurance, and travel insurance.

– Life insurance – also categorized as term life insurance, whole life insurance, endowment plans, unit-linked plans, child plans, and pension plans.

What are the required documents to purchase online insurance?

Online insurance purchase requires a set of valid documents that can be uploaded to their online application form. When buying a term online insurance, you need t upload the attested copy of the above documents.

– Passport

– Voter’s ID card

– Job card issued by NREGA duly signed by a State Government officer

– Aadhaar card

– NPR (National Population Register) showing the details of name, address and Aadhaar number or any other valid document notified by the Central Government.

– PAN card/ Form 60

For income proof of salaried individuals:

– Recent three months bank statement showing salary credit

– Income Tax Returns filed for the last two years

– The updated Form 16

For income proof of self-employed individuals:

– Last 2-year Income tax returns not filed in the same year

– CA certified audited balance sheet and profit and loss account of your business over the previous two years.

– Form 26 AS