The world is a global village, and almost everything you need is now at your fingertips. Technological advancements have made most things online and only an order away. Insurance is not left out of this trend, as you can now get online insurance in only a few clicks.
Buying insurance online is usually a mixed bag for people. It is a mixture of both pros and cons. So, is online insurance worth it? Is it safe and effective as the traditional insurance types? Find out in this article.
Records have it that the pros of online insurance far outweigh the cons in recent times. Buying a policy is no longer restricted to those days of consulting with insurance agents or financial advisers who would showcase a bouquet of plans and explain all the features. The customer would choose the most suitable plan based on advice and often personal relationships.
Indeed, quite a few people still prefer to use the traditional method of buying insurance. Reasons are best known to them. But it could be that they haven’t heard about online insurance.
Now let’s delve into the list of Pros and Cons of Online Insurance.
Pros of Online Insurance
- More Affordable
Getting your insurance online is often cheaper and more accessible. The process doesn’t harm your pockets, and you don’t have to settle intermediaries. Online insurance is cheaper because they don’t have to pay agents and run more inexpensive advertisements. Hence, buying directly from the insurance is an added advantage as you don’t have to pay all the other avoidance costs.
- Insurance at your Fingertips
Moving to the online space to make your insurance purchase is smart. Right there, in your comfort zone, you’ll buy your insurance and get all the benefits you deserve. You don’t have to spend hours with an agent that will tell you stories, all in a bid to get his cut from the augmented fees. Buying online insurance comes with the added advantage of convenience. You don’t have to sweat to get it, just do your research and make a few clicks on your device.
- Easy to Compare Plans and Packages
While buying online, you’ll easily compare all insurance plans in a particular category. Something that’s not possible online. You’ll check out all the listed features and rates and then decide accordingly. You can also leverage the online chat box to ask questions about various packages available.
- Keeping Mis-selling Firmly At Bay
Mis-selling may be a significant problem in insurance, and buying online helps prevent the same. This is often a scenario where agents sell you plans with higher commissions but no real benefit for your specific needs. However, this is avoided when you buy online insurance. Since you’re dealing directly with the insurance company, the company will grant you proper guidance, which will help you choose the right policy based on your needs since there is no agent’s commission involved here.
- Seamless Documentation Process
You do not need to worry about the mountain of paperwork that usually accompanies insurance plans offline. You’ll easily upload documents electronically and verify them, submit application forms online, and even make payment online.
Cons of Online Insurance
- Proper Guidance May be Missen
Buying insurance online means you have to figure out many things independently. Be sure to verify all necessary information before making your purchase. It is not possible to ask an insurance agent when filing a claim. This is a limitation of online insurance.
Although the platform may have an integrated chat support system, this may not work when needed.
- You may miss Cheaper Alternatives.
If you’re buying insurance online, you buy directly from the insurer. This implies that you’ll likely be compelled and enticed to click the buy button. If you don’t do your homework, you may miss out on cheaper alternatives. This is another area where the necessity for an advisor or impartial financial guide is often felt. They help you when it comes to comparing insurance companies and the features of their products.
- No Bundle Coverage
Buying online insurance means you have to stick to specific coverage plans. You wouldn’t be able to bring your insurance plans under one bundle to enjoy discounts.
- Rejected Claims
Rejections of claims are some things that every insurance customer dreads. However, insurance claims are sometimes rejected in online purchase cases where the customer might not have entered everything correctly, or some information has been skipped due to a lack of proper guidance. Buying from an experienced intermediary or advisor offline may facilitate your deal better with these aspects.
- You May Not Know All Your Coverage Entails
Buying online insurance may be easy, but one downside is that you may miss out on vital information. It is possible you wouldn’t fully comprehend the nitty-gritty of a particular overage or insurance plan before buying.
Buying insurance online has more pros than cons, but for equity, we highlighted five for each. It would interest you to know that a significant fraction of people is embracing online insurance, and you may be missing out on all it offers.
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