Guide to buying life insurance online

These days, people are well aware of the importance of life insurance. Despite that, India still ranks among the countries with the lowest penetration rate in life insurance. According to the latest annual report of the Insurance Regulatory and Development Authority (IRDA), the penetration rate of life insurance in India is only 2.82 per cent. With the growing popularity of various e-commerce platforms, it is now possible to buy a life-insurance policy directly from the company without any agent or broker, that too at the comfort of your home. Also, buying insurance policies online is a cost-effective option, with their premiums being 5 to 10 per cent lesser than those purchased through insurance agents. This is because the company saves on the commission. Besides, it is better to avoid the agent route, as most agents lure their customers to buy expensive products so that they can earn higher commissions. Even at the time of buying a policy online, you may receive calls from the company's marketing team as soon as you enter your contact details. But be careful and do not get swayed by their sales pitch. Here we help you through a buyer's experience and the most important questions that you would encounter while buying a life-insurance policy online. Choosing an insurance product The simplest answer is to go with a pure term plan. While going through various products, you will come across many types of insurance policies, such as an endowment plan, a money-back plan, a unit-linked insurance policy (ULIP) and so on. Broadly, all insurance policies can be divided into two categories. In the first category, the insured receives some amount of money either during the policy term

This article was originally published on October 14, 2021.