How Can You Purchase A Life Insurance Policy Online?

A few years ago, buying a life insurance policy would mean standing in queues and multiple visits to the insurer’s office. Bulky documentation had become the hallmark of the buying process. With the advent of digital technologies, all that has changed. One can easily buy a life insurance plan in a few clicks of the mouse. Before diving into the details, let us take a look at what life insurance is.

Life insurance is a contract between an individual and an insurance company, under which the insurer promises to pay a pre-decided amount to the person chosen by the insured in the event of the insured’s death. The execution of the contract is conditional on the policyholder making timely payments to the insurance company, which is known as premiums. All life insurance plans pay death benefit, but some life insurance plans also pay maturity benefits. If a policyholder outlives the policy tenure, the insurance company pays a lump-sum amount as maturity benefit. The amount can be used to fulfill life goals like buying a house or children’s education.

How To Buy A Life Insurance Policy Online?

1. Buying Options

There are various types of life insurance plans available in the market. Almost all insurance companies operating in the country have made some of the life insurance plans available online. Buying a policy online is convenient and simple, but where should one buy from? Online life insurance plans can primarily be bought in two ways. You can either buy it through an aggregator or directly through the insurance company’s website. Aggregators list policies from different insurers at the same place while exclusive websites will have life insurance plans from a single insurer. Aggregators may also levy a nominal fee for their services, which may slightly increase the cost of the policy.

2. Finalize The Product

Once you have made up your mind to invest in a life insurance plan, finalize the type of life insurance. If you just need a life cover without any maturity benefit, opt for a term plan. One can choose other life insurance plans like endowment plans, unit-linked insurance plans or savings plans, if the aim is to receive a lump-sum amount at maturity.

3. Provide Basic Details

After finalizing the medium of purchase and the type of policy, you will have to provide your details. Fill in basic details like name, date of birth, smoking habits, contact number and the amount of coverage sought. Depending on your age, smoking habits and the coverage sought, the premium will be decided.

4. Premium Payment

The premium is a critical aspect of a life insurance plan. If you fail to pay a certain number of premiums, the policy will lapse and you will not get any benefits. After providing the details, the premium will be displayed. Pay the premium online to purchase the policy. The life insurance company will send a letter to confirm the payment.

5. Proposal Form

Post payment of the premium, you will have to fill a detailed life insurance proposal form. It will ask you for personal details, medical details, nominee details and lifestyle details. The process of uploading relevant documents comes next. You will have to provide documents such as address proof, identity proof and health-related documents. The list of documents to be uploaded is given after the proposal form is filled.

6. Medical Examinations

If the insurance company is satisfied by the documents provided, it will issue the policy. In some cases, the insurer asks for a medical test. If asked, you will have to visit a medical center for a medical examination. After the verification of the documents and medical report, the insurance company will decide the issuance of the policy.

Conclusion 

While a number of insurance companies offer online services, not all have a seamless process. Large portions of critical sectors have been digitized. The insurance sector too has adapted to the digital age. It has led to profound changes in the way life insurers interact with customers.

Also read - 7 Things You Should Know About Life Insurance Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.