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There are about 100 million internet users in India. Over a period of time it is becoming one of the most widely used mediums of communication. Many use internet for communication, many use to network, many people buy stuff online. Financial services these days are also offered online and it all started from a humble beginning in the banking sector with online transactions and account management. Now its moved to financial products being available online at a click. Insurance companies are also rapidly moving towards selling products (term plans) online. The India growth story for e-commerce is on a fast track. The market for e-commerce grew from 8,146 crore in 2007 to 46,520 crore in 2011. The main reason why e-commerce is picking up is because of competitive pricing which is a result of competition.
Buying an Insurance Policy Online:
Buying insurance policy online is simple. One gets various benefits of buying an insurance policy online. You can compare various insurance policies and buy the one which best suites your needs. By comparing insurance policies across the companies you can get a clear picture of what’s the best available deal in the market for you. Time saving is again a benefit which an end consumer gets.
Buying an insurance policy is also a hassle free process and is secure, hassle free as you don’t have to visit your insurance agent or your financial advisor. When you buy an insurance policy online there are clear instructions visible on the website which you need to follow. The servers where these websites are hosted are secure so you don’t need to worry about the transaction process.
Premiums are cheaper for online term plans:
One of the biggest benefits of buying term plans online is that the premiums of online term plans are cheaper compared to the offline term plans. The main reason for this is that there are no middlemen or an agent’s involved when you buy insurance policy online. Also the quality of life insured is perceived to be better by the underwriters as you are opting for the policy yourself after doing your need analysis.
One of the negative parts of buying an online term plan is that customers may often unintentionally or to lower the premium, withhold any medical condition or other critical information that will result in complications or rejection of claims in future. It is advisable to disclose all the facts before hand to avoid unnecessary rejections.
To sum it all buying insurance online is simple and hassle free and saves money too!
This is a guest post written for Aviva India.