Benefits of Choosing an Online Term Insurance

In the times gone by, innovative marketing strategies to sell insurance to customers were either through brokers or through call centres. As the market entered the “Era of the Consumer,” connecting and networking underwent a major shift. The World Wide Web became a game changer. And thus came about a marketing outlook shift, where instruments like insurance went from “being sold to each customer” to “being bought by numerous customers,” via the internet. Did you know that from 2012 to 2014, the online term insurance policy purchase in India grew by over 200%? Even after a surge in the use of the internet, online sales constitute only 2% of the total sales. Nonetheless, the purchase of online insurance in India is expected to follow the growth trajectory of the foreign markets soon. For instance, in Europe and the UK, internet sales of insurance started with an aggregation model. Currently, almost 70% of motor insurance in such countries is bought online.

Key Factors that makes the Online Term Insurance Option Feasible

The online channel offers efficient, fast, transparent and low-cost services to the consumer. Traditionally, companies need to pay commissions to distributors like brokers, agents and other banks. Through the online term insurance model, they can avoid such hefty commissions. The savings made due to this is then transferred to the customer in the form of reduced premium rates. Here are a few other advantages of the virtual medium.

1. More Information: The internet is a storehouse with vast information on financial services and products. This was otherwise unavailable even in physical management.
a. It helps your review, compare and validate information from various financial providers. This can be extremely useful to sort out the rotten eggs while buying online term insurance.
b. You can read testimonials from other customers, check market ratings and read expert advice to make an informed decision.
c. You can also be a more informed customer. You can thoroughly research and understand the various related terminologies, like compulsory excess, no claim bonus and others.
2. Economical: A surge in the internet trend has led to huge competition amongst online term insurance providers. This stiff competition is beneficial for the consumer because different insurers are vying for their business via lower premiums, percentage of compulsory excess and range of coverage, among other attractive offers.
3. Convenience and Expediency: Through web connectivity, you can access a whole range of add-on products, irrespective of where the insurance company is located and its working hours. You can make easy and fast additions and deductions to your policy. You can put forth queries and also initiate a claim process online.