FINANCIAL THOUGHTS
What Is The Aftermath Of Buying Life Insurance Online?
With the advancement of technology and also the enhancement of Insuretech, that has led in many different ways for consumers to buy insurance. It makes it easier and faster to get insurance coverage.
But by gaining the convenience of it, are you losing any pros of buying insurance offline? Scroll down and find out the consequences of buying your life insurance online.
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Benefits of buying online
- Controlling the premiums and sum assured
You are able to decide on the sum assured that you want. With that, you are also able to control the premiums.
It is a great feeling that you can alter the price of a product. Imagine you can do that when buying a smartphone.
- You can control the application process
Applying for insurance requires you to declare almost everything about yourself. From your personal particulars, financial wellness and definitely your health status. Thus there is some kind of privacy there.
- You can almost get insured instantly
Upon the completion of the application form, normally all that is left is for the payment (with condition that you are healthy). After making the payment, you will be issued your policy.
Yes, it is that fast.
Complication as a consumer
After buying the insurance policy, you might think that it might be the end of it. You are right if you do not have any problems, issues, claims or even clarification.
You may not see it now as things might be smooth sailing for you in life. It may be a different situation when things do not go your way.
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The terms used might be confusing
Do you understand what constitutes as Total & Permanent Disability (TPD)?
Will you get the sum assured on both the Death and TPD or do you only get only one of them?
What is renewable term insurance?
If you do not understand and know the answers to the questions above, you might be purchasing insurance “blindly”.
On the other hand, if you have a financial adviser, you can get the explanation as soon as you asked them.
You can Google and they have loads of answers but that is just time-consuming and inconvenient in a certain way. You may not even get the answer that you want and need.
How much is needed?
Buying insurance is an exchange of paying premiums consistently and eventually getting back a lump sum of money upon an unfortunate event that happens to you.
The question is, how much is enough to compensate for that unfortunate event?
Out of the blue, you will definitely to get a million dollars of coverage. You will be a millionaire just like that.
But, like everyone, we all have a limited budget. Thus, you may not be able to afford a million dollars. But at the same time, do you really need a million dollar coverage?
With that, you would need to evaluate your needs. Look at your income, liabilities, and dependants. It is a lot of calculations and analysis involved and not everyone has the time for that.
But if with a financial adviser, they can do that for you. Assessing your protection needs would make your purchase what you only need.
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Who to look for when things go sour
Imagine this, you got into a bad accident and unfortunately, you become severely disabled. You would want to claim the disability benefit from your insurance but there is no one, in particular, to help you with that.
If you have a financial adviser, out of goodwill, they can assist you in the claims process.
They would know what would be needed to make a claim, they would know whom to contact when making a claim and you might even get the cheque hand delivered to you at home, where you are recovering.
Are you sure what you are looking out for?
At some point in your life, there will be someone depending on you for food and money. At some point in your life, you need a replacement of income when you are no longer able to work. And definitely some point in your life, you want to accumulate your money.
With that, you would need a financial product to help you with all that. Nonetheless, with loads of products out there, do you know which would suit you?
Even if you think that you have found the product that you want, how sure you are that the product is the best for you? Or is there a better one out there?
There are some unanswered questions and maybe some uncertainty.
You do not want to wrongly buy an insurance policy, as it is different from buying jeans from a retail store.
Hence, do extensive research prior to coming down to a decision.
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One need, many choices
With that, you are in the best position as a consumer. You have choices whether it being online or offline.
Neither of it is a wrong way to get insurance coverage. With that being said, go with the one that you are comfortable with.
Well, that’s the end of this article. Do share it if you think this is beneficial to your friends and family.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
