Here’s Why You Should Be Buying Insurance Policies Online, Not Via Agents

In these challenging times of tough competition and high pressure, it’s not easy to find time to research on what type of policy that one must opt for. Usually, many people prefer to get in touch with an insurance agent to buy an insurance policy and be done with it. Many make the mistake of not checking out clearly how much premium they should actually be paying and what they finally end up paying. Also, many get drawn in by the sops and freebies some policies offer without taking into account the actual benefits in terms of covering all types of risks. But with the ingress of the internet and changes in insurance sector, an online option can save you time, the trouble of documentation and additional costs. Plus buying a policy via an online aggregator is a more transparent process as it does not have any hidden costs and you can compare premiums, disadvantages and sops of other insurers. Even so, an online platform for buying insurance may not always be the right answer in case specially customized solutions are required and if the insurance product is complicated and needs further explanation. This is where the traditional insurance agent is still invaluable. This blog explores what you should watch out for while hiring an agent to buy your policy: 

1.       Buy plans now, or they maynot be available later

This is the most common marketing gimmick. Even if an insurance policy is withdrawn from the market by the insurer, it will be replaced with a more customer friendly policy. This includes the possibility of the premium being scaled down as well. So, don’t fall for this trick. Instead, do a research of the market and call the insurer to check all facts. Thereafter you decide whether you need this policy at all or should you buy another policy.

2.       Conning in the name of IRDA

It may be claimed that a 'bonus' has accumulated with respect to their policies and which is being allegedly polished off by their agents. The client is then instructed to deposit some amount with the 'representatives of IRDA' to ensure that the bonus is transferred to the policy holder. This is a fraudulent practise.

3.       Buying apolicy in your name without your consent

This is the most shocking practice which is why you must thoroughly check the credentials of your insurance agent. There have been instances where agents collected money from prospective policy holders but bought a policy which the client did not know of or need. This caused a lot of harassment to these clients as these policies could not be cancelled.

4.       Circumventing the freelook period

After an insurance policy is issued to the policy holder, the latter can exercise the right to opt out of the insurance policy within 15 days of its issue. This time period is known as the ‘free look period.’ By taking this option not only will you be fully refunded but you will also not have to pay any extra costs. This also means you can opt for another insurer after opting out. The modus operand adopted by some agents is that they send policy documents after the free look period is over. So if you anticipate a delay in receiving your policy, its best to opt for an immediate cancellation,

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