Behavioural biases that damage your investments!
In matters of investment, the sooner you acknowledge your mistakes, the sooner you'll find help in getting out of the soup. To break free from biases, the first step should be to identify those biases, says, Balwant Jain, Tax and Investment Expert.
Even a few years ago life insurance policies were mainly bought offline via intermediaries such as individual agents. But now customers are increasingly showing interest in buying life covers online. It is an easy, quick, safe option. After the outbreak of Covid-19 pandemic, insurance companies have also strengthened their digital outreach. Many insurance companies in the country including Life Insurance Corporation of India (LIC) offer rebate on online purchase of policies. For the customers, comfortable with online purchases, buying life insurance online is a viable option.
While buying life insurance online, it is important to understand some basic rules. Otherwise, it may create complications at the time of claim. Let’s have a look at some basic do and don’ts while buying a life insurance online.
Research
If you are buying a life insurance policy, research is essential. It will help you select the best cover. It will also help you to understand the terms and conditions, surrender value and charges levied under policies such as Ulips.
Compare
Life insurance companies offer a wide range of policy options for buyers. So, it is necessary to compare the features and other benefits between different products available in the market. Without comparing, don’t take any final decision.
Right information
When buying a life insurance policy it is important to disclose all information, including medical history, lifestyle habits etc. Do not hide any illness while filling up the proposal form online. It could lead to disputes at the time of claim.
Check claim settlement ratio
The claim settlement ratio signifies the percentage of settled claims by the insurer out of the total claims received. Before you buy a policy, you must do a proper research about the claims experience of the insurer from which you are buying the policy.
One way to check it out is the claims settlement ratio. The higher the claims settlement ratio, the better the insurer is in terms of settling the claims.
According to insurance regulator Irdai, a percentage of above 95 is considered as a satisfactory claim settlement ratio stating the insurance company is committed to resolving claims.
Choose riders wisely
When we buy life insurance, it is also most important to buy certain key riders along with the base policy. A rider is an additional cover along with basic insurance policy by paying extra cost. They allow policy buyer customisation and can provide several kinds of protection.
According to experts, don’t forget to buy a rider with life insurance according to your need and choice.