compare insurance plans
Finance

Mistakes to avoid during the course of buying an insurance policy

December 15, 2017

In the last few years purchase of insurance via the online platform has become extremely popular. The main reason for it has to be the convenience aspect and lower costs along with compare insurance policy rule the roost. The best part is that less paperwork is also needed when you opt for an online method of purchase. All one needs is a basic knowledge about internet and they are ready to purchase policy in a matter of seconds. But it is not that easy when you are about to purchase a life insurance policy as there are some other pointers to consider as well.

Less research

The premium along with claim settlement ratio are two tilting factors on the choice of an insurance policy. The rest is same in terms of features in case of all other policies. When you are about to buy an insurance policy it is suggested that you compare insurance plans that are offered on most websites. This will help you to choose a cost effective and a suitable policy as per your needs. It would also avoid you to choice an average insurance plan this is one of the major mistake people make while purchasing online insurance.

Large cover and long tenure

One of the reasons why online insurance has been popular is low cost of premium. But this can work as a disadvantage as well. In the quest for low premium, people often end up purchasing policies than what they really need. This extra amount of money which they shell out becomes unnecessary that could be put to productive use elsewhere. Premium should not be a criteria for a choice of a policy and instead evaluate what you are looking from a policy in the first place.

Short cover coupled with a short term

This mistake is just an opposite of the first. When you are purchasing an insurance policy, do consider the prevailing inflation rates. One of the common mistakes on course of an insurance policy is opting for too short a term. Say for example if a policy elapses once you touch the age of 40, there is no point in purchasing the policy. The cost of insurance should be adjacent to the age of an individual. Higher the age, higher the cost has to be and this needs to progress with age.

Information accuracy

Be it any purchase of insurance policy, online or offline, you would need to fill in an application form. When you are filling an insurance policy online, there is no agent to guide you pertaining to the accuracy of information. Ideally you would want all the information to be accurate and filled to perfection. This assumes a lot of importance during the course of claim settlement. An insurance company has an outright liberty to reject the claim of a policy if any form of wrong information is being provided. So be honest about yourself along with your family records as well.

Leave a Reply

Your email address will not be published. Required fields are marked *