5 hazardous mistakes one should avoid while buying online insurance

Life Insurances 192 views

Buying online products is much in trend, be it shopping for clothes, gadgets, watches or anything else. The same trend is changing the buying habits in financial sector as well. People are visiting different banks's and other financial website to get information or to buy product online. This trend is gaining popularity because of lower chances of getting trapped as most of the information is available there. You can compare different plans, get more information about them and can make your decision accordingly. It is reducing the interference of agents and even reduces the chances of buying the wrong product. Buying online product is something like you get what you see. Though there is availability of higher level of information and transparency,  you make some mistakes in buying the online policies. If you haven't buy any policy online, these points can help you in avoiding some common mistakes during online buying.

Filling wrong information: Don't submit wrong information while filling up the form or buying the policy. The insurance company can reject your claim if it finds out that certain key facts are wrong or have been intentionally hidden by the policyholder. The main objective of buying the policy would go in waste if your claim is being rejected by the company because of false information. Always give the right and authentic information in the form. Even give right information of the medical tests as well. In any uncertain situation if your family will claim the policy benefits and you have quoted wrong information, there are chances that their claim might get rejected.

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Buying the wrong policy: This is another mistake, which you do while buying online product. If you are looking for some health insurance policy or life insurance policy and you buy a term plan instead of them, it is totally waste of money. You find some other policy which is way too attractive, you end up buying that without thinking much about benefits. You should be clear about your financial goals and future needs. Don't mix and match your requirements and buy a policy because of attractive advertisement or marketing tricks.

Not comparing all the available options: It is very necessary to compare different insurance  plans available in the market before buying it. However, the features of term insurance plans are more or less similar in most of the policies. But, the features of life insurane, endowment policies or health insurance may differ from insurer to insurer.  So, before buying any plan it is important that you do good research about the plan and compare it with different available plans on the basis of premium and other benefits. It is always good to buy after comparing different plans.

Choosing higher cover for longer duration: When you are searching for the policy and covers one thing, which entice you a lot is taking higher cover with longer duration at a minimum premium. This is one of the common mistakes one does. You should always priorities your goals. Don't buy for big covers unless or until you are really looking for the same. There are many companies, which offer you lowest premium with highest covers, always keep your requirements in mind before buying them. You should always choose a plan, which is very much affordable for you and offers you desired amount in future. Select the amount and tenure according to your financial goals.

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Choosing the shorter tenure: This is another mistake, which one generally make is choosing the shorter possible tenure. Choosing the too short tenure will not provide you higher returns on your invested money, though you complete the tenure soon, but it is not suitable if you are looking forward to higher returns. If your policy ends at the age of 40, this means it will not provide you any kinds of cover or benefits when you are at higher risk in your life. So such kind of term plans and other policies are waste of money.

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