With so many players entering the market as insurance sellers, it has got more difficult to get the right policy.
However, with the introduction of online purchase facility in the insurance industry, consumers’ work has just been made easy. From the comfort of their homes, they can do their own research, compare insurance quotes online, use their analytics, and get the right policy. But is it that easy? Yes, if you have got some of the basics right. In this article, we will be discussing the basics of insurance, or rather the things that you need to check when you compare insurance online. Read on!
Market Reputation of the Insurer
This is the primary aspect that you need to consider before you set out to compare and buy insurance online. You can evaluate the market reputation of the insurer with the help of the following criteria:
- Claim settlement ratio – the higher the ratio, the better
- Financial stability of the insurer
- Efficient customer service
If the insurance company you’re considering buying your policy from successfully ticks all of the mentioned criterions, you can go ahead with it.
Cover – Cover or coverage amount of an insurance policy is a certain sum promised by the insurer to the policyholder if a stated uncertain event (like death) occurs in the life of the latter. This sum can be called either Sum Insured or Sum Assured.
Sum Assured – When the amount to be paid by the insurer is pre-determined-in case of a life insurance policy, for instance-it is referred to as the sum assured amount.
Sum Insured – When such an amount is not pre-determined (although a maximum ceiling may be put) -in case of a health insurance policy, for instance-it is referred to as the sum insured amount.
To come to the point, when you buy insurance online, go for a plan with a higher coverage amount.
Premium – In exchange for the risk taken by the insurer to provide you financial assistance in case of unforeseen events, you pay a certain amount regularly. This amount is referred to as the premium amount. While comparing insurance policies online, go for a plan with affordable premiums. However, do not opt for a plan mainly because you have to pay lower premiums. The priority when choosing a plan should be the coverage you require; only then should you check whether the premium under that plan is affordable. Choosing a plan with affordable premiums will help you stick with the plan.
Riders – Riders provide additional benefits/coverage along with your basic insurance policy. For example, with a life insurance policy, you can opt for a critical illness rider to cover yourself against life-threatening illnesses. Other sought-after riders are:
- Maternity Cover (usually offered with a health insurance policy)
- Personal Accident Rider (offered with both life and health insurance policies)
- Room Rent Waiver Rider (offered with a health insurance policy)
- Critical Illness Rider (offered with both life and health insurance policies)
Exclusions – Exclusions form an inseparable part of insurance policies. They eliminate the extension of the coverage against a certain type of risk. While there are a few common exclusions across all insurance policies, some may vary from product to product and insurer to insurer. While comparing insurance quotes online, you must check the exclusions list. Here are some of the commonly listed exclusions:
- Self-inflicted injuries
- Involvement in wars and military operations
- Suicide within a year of commencement of the policy
And that’s about it. These are the major aspects that you need to focus on while making an online comparison.
Now, the question is: what is the procedure to get the desired policy? Well, it is very simple. Just go to your desired insurer’s online portal and you will soon be able to help yourself. Websites are very intuitive these days. In case of difficulty, note that they must have left their contact details somewhere on the home page. Go ahead and give them a call.