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Save money by buying insurance online

business Updated: Jun 09, 2015 16:56 IST
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India has about 243 million active internet users today. Broadband internet connectivity, which was once a luxury in India, is spreading fast, through mobile phones, and is set to overhaul the country’s digital economy.

With such exponential growth, it is not surprisingly that the relatively new online insurance industry is witnessing momentous growth. In fact, technology being a great leveler has helped online insurance grow popular among the young and the net-savvy. But the other key reason that has driven this growth of online insurance policies is the lower costs and the opportunity for investors to buy them without much hassle. But does one really save money by buying an insurance policy online?

Term Policies: A product category that was introduced for online buyers of insurance, the term policy has seen growing competition. This has resulted into competitive pricing. And the prices continue to go down with new products being launched in this category. By sheer volumes, it is beneficial for insurance-providers to lower costs and therefore help us save more. But it is important to check for the claim settlement record of the company one chooses to buy the insurance from, since prices overall will be competitive.

Payouts: Like prices, the payout plans of the online policies are easier to understand and more transparent. Unlike a broker intervening through the process, here, you can choose the most suitable form of payout you need for your portfolio. Whether it is lump-sum or annuity or even pre-death benefits, online insurances help you save money easily by providing access to choose your investment goals—whether you want a payout for your children’s education, or whether the plan should include a pension for your spouse.

No brokers: More often than not you were sold policies that a broker has vested interest in, like his commission or his performance. Online insurance purchases remove the middle-man and you can decide for yourself without any bias. This makes your policy best suited to your needs and reduces any risk of investing in a rather risky proposition. For insurance companies, this is a major reason why the cost of your online term policies can be lowered, helping you to save more money! You also save money by investing less time and with ultimate convenience while exploring plans and prices for yourself online.

Online insurance policies are the best bets for the internet-savvy investors of today to make their investments choices with complete transparency and while doing so, save on a lot of time, effort and money!

Source: HDFC