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5 benefits of buying insurance online

By Parag Mathur
September 27, 2016 10:00 IST
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One in four kids harassed by friends online

The digital era has made buying goods and services online easy and more transparent, says Parag Mathur

Illustration: Uttam Ghosh/

Gone are the days when buying insurance meant discussing your insurance needs with an advisor and then opting for the plan suggested to you even if you did not understand it fully.

Growing financial awareness and access to digital technology has meant you can now buy insurance online even if you are not a financial whiz kid.

Every insurance company offers multiple plans online along with a 24/7 helpline that can help you choose the right plan without having to worry about any mis-selling or other drawbacks associated with traditional insurance purchase.

So the next time you are seeking to buy an insurance plan, know that opting for online insurance purchase is far more beneficial and cost effective.

Here are the five major advantages of choosing online insurance over traditional method:

1. Cost benefit with lower premium

No matter how financially aware an insurance seeker is, the final cost of insurance remains a high priority on their list. Buying insurance online can help you get lower premium, making your insurance plan easier on your pocket.

Since insurance premium is something that you pay out every year, the benefits of cheaper premium hold good for your entire premium paying tenure.

If you are wondering why insurance plans are cheaper online, it is due to the absence of any intermediaries or insurance agents, and absence of advertising costs.

Buying insurance online means you are buying directly from the insurer and there are no escalated costs in between. The insurance company hands over the cost benefit to the buyer, leading to cheaper insurance plans with a lower premium.

2. Easy comparison options to get the best deal

With so many insurance companies and each company having multiple plans on offer, how do you choose the best one for your need?

The answer lies in active comparison of all shortlisted plans.

With online insurance purchase, you can easily compare pros and cons of all your shortlisted plans and then choose the one plan that offers you maximum protection and associated benefits.

3. Convenience of purchase

Online purchase comes with an ease of purchase that is unparalleled. You can buy insurance round the clock from the comfort of your home or office, or even while on the move. Insurers have an online chat module that can help you pick the most effective insurance plan for your needs.

All details of the policy you choose are well documented, allowing you ample time to study in detail and then pick the right policy as per your insurance needs.

Moreover, you fill in all personal information yourself, which means that the chances of error are much lower. Even if there are errors, the online nature of the application makes it easier to revise and update information.

With the IRDA making e-Insurance Accounts (eIAs) mandatory for several types of insurance in the near future, the KYC process also becomes one-shot, making the purchase even more simple.

4. Simple documentation and paperwork

Online purchase of insurance comes with the advantage of easy documentation and simplified paperwork. Being part of a digital purchase, your policy is serviced automatically with the documentation being managed electronically.

This means no more running around for photocopies of your ID or address proof or other documents for your insurance purchase. You can simply upload your desired KYC documentations, which are updated in real time.

Even if you are not net-savvy, the insurance company will update you on your insurance purchase using their helpline numbers, making buying insurance an easy and enjoyable experience.

5. Say goodbye to mis-selling

Insurance has been notorious for many insurance buyers being sold wrong policies in the past mostly by intermediaries just to get a higher commission. When buying insurance online, you are dealing directly with the insurance company and there are no intermediaries involved.

The insurance company helpline can guide you in picking the right policy, ruling out any mis-selling woes. With online insurance purchase, you get exactly what you see online so that you get maximum protection without having to worry about claim denials arising from mis-selling.

The digital era has made buying goods and services online easy and more transparent. Buying insurance online comes with many essential advantages apart from easy of buying and a transparent purchase system in place.

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Parag Mathur