Checklist for First-Time Online Life Insurance Buyers

FPJ Web DeskUpdated: Wednesday, May 12, 2021, 01:15 PM IST

If you've decided to buy life insurance recently, you couldn't have taken any wiser and better decision than this. With the growing number of people suffering from life-threatening diseases, it is crucial to get yourself and your family covered.With all the available facilities, you can comfortably sit at home and apply for online insurance after making a fair and satisfactory comparison.

Different insurance agencies provide several types of insurance policies, from which you can choose the best plan according to your needs and circumstances.Buying a life insurance plan is vital to fight uncertain times and unexpected diseases that can even risk your life. In such unfortunate times, it would be difficult for any family to suffer from a financial crunch along with the sorrow of the breadwinner's absence.

As a first-time insurance buyer, you might find the process quite complicated and confusing, and challenging to choose the right policy. We have prepared a simple and straightforward checklist to help you throughout the process.

  1. Assess Your Financial Status

You should assess your financial position on a priority basis before choosing any online insurance. As you will have to pay premiums at regular intervals, you need to calculate your expenses and earnings.

Also, you need to make a comprehensive evaluation of your assets and liabilities to know what all you have and what else needs to be done for your loved ones.

  1. Check for How Much Coverage You Need

This depends on all the financial needs of your spouse, children, or dependent parents. Generally, while making calculations, people consider their debt repayment and do not think about the dependent family members' sustenance.

Therefore, after carefully analyzing, you should choose a plan that will cover the debt amount and provide financial support to your family in your absence.

  1. Compare Different Plans

After you're done with the basic analysis, now comes the comparison of different plans. There are several online insurance plans provided by different insurers, but you need to choose the best one for you.

You should compare the benefits, terms and conditions, and other specifications amongst different plans offered by various insurance providers.Thorough research is needed at this stage.

4. Premium Comparison With Income

Now that you have made the required comparison, you should find out the premium you need to pay regularly. You should compare the premium amount with your income and check if you can comfortably pay that amount along with managing other regular expenses. It will help if you are calculative enough such that the premium amount does not seem to be a burden later.

  1. Insurer's Reputation

Before signing up for online insurance with any insurer, you should carry out full-fledged research about the insurer. You should thoroughly check all the policies, terms and conditions, analyze insurers' financial strength to know if they'll be able to pay your claims on time. You should also go through the genuine reviews and the service quality to check the quality and speed of their process.

To stay away from fraudulent Insurers, you should take time to research about the insurance company and decide wisely.

  1. Use Online Premium Calculator

To make near to accurate calculations, you can use an online premium calculator to calculate the premium that you'll have to pay regularly for availing of online insurance. You'll just have to fill in your necessary details depending on the needs and fund availability to get your estimated premium payment.

  1. Be Truthful on the Application

You should be careful not to miss out on any vital information while filling the application form. The insurance company may cross-check your data with any third party sources if you grant them permission for the same.

  1. Online or Through Agents

Earlier, agents used to sell insurance policies, and they sold the companies' policies with whom they were associated. They did not provide a fair comparison amongst different policies across various insurance providers.

With online insurance being made available, a person can easily compare different insurance policies and their specifications. Also, as mentioned above, you can even calculate the premium amount online. Buying online insurance is a cheaper and more affordable option because it eliminates the agents from the process.

Having gone through the checklist, you must've had a fair idea by now about the process of buying a life insurance plan. Being a first-time insurance buyer, you should thoroughly research and check with insurance providers for the different types of insurance plans available. In case there's any confusion regarding any clause, you should clarify it well in advance.With all this information, you are ready to buy an insurance plan.

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