From buying mobile phones to placing orders for clothes, fashion accessories and even grocery items we Indians are getting largely dependent on online shopping. Till a few years ago life insurance was mainly bought offline from intermediaries such as- individual agents, corporate agents (banks) or insurance brokers but now customers are also showing increasing interest in buying life covers online reason being the policies available online are significantly cheaper than their offline counterparts. For almost all insurers, the premium of an online term plan is lower by 25 percent or more than its offline version because it does not involve any intermediaries cost.

Another potential reason for buying policy online is that you can compare the features of the plans offered by various companies and choose the most suitable one. There are various web insurance aggregators through which you can easily compare different life insurance policies or you can also do it through the online web portal of insurance companies.

So, here is the process of buying Life Insurance Policy online:

• Choose the plan that will meet your future financial requirements:

It is the first step in purchasing Life Insurance. It is very important to wisely choose the plan which will meet your future financial requirements to the maximum extent from the various choices available. You may choose from whole life insurance, term insurance, level term insurance, annual term insurance, whole life insurance, endowment insurance, ULIPs, pension plans etc. as per your requirements.

• List the companies that suit you the best and request quotes online:

After choosing the plan, you need to decide the company from which you are going to buy the insurance. For this you may visit the websites and gather information – comparing the products of various companies available in India with each other and then select the best and the most trustworthy ones among them. Now you invite quotes from those companies online.

• Compare cost, term and other details:

Now you need to analyze the insurance cost, term, sum assured, premium paying term etc. of the policy. For this you need to visit the websites of the selected companies and compare the policies keeping in mind your age and working years that you have in hand before your retirement. Accordingly, settle down with the company that serves you well and register yourself on the portal of that company.

• Formalities and Documents required:

It is very important to ask for the formalities and documents which would be required when you opt for the policy. Generally, your ID proof, Address Proof, Pan Card, Photograph and 3 years IT return along with a duly filled form. Although, documents may vary from company to company. These documents are to be uploaded to the company website or can be couriered as well.

• Take a medical test, if required:

Although, buying life insurance policy online does not require any medical tests. But sometimes if you are buying whole life policy your insurer asks you to take medical tests. It usually involves a questionnaire, blood samples, height and weight measurements, and a request for medical records. It’s typically done at a time convenient for you, at your home, and is really quick. The expenses incurred over the medical test is generally covered by the insurance company.

• Filling the form:

While buying policy online you need to be very comfortable with the internet and possess the basic technical know-how. You need to fill up the form online all by yourself, no agent will be there to help you. In case you are stuck at any point, the insurers will offer you an online help. Either a representative is available for an online chat or the insurer may get back to you within a day or so.

• Determination of premium and sum assured by the insurance company:

An underwriter is a person working for the insurance company who decides if they can ensure you and how much it will cost to do it. The determination is based on the details provided by you. The biggest factors that come into play are obviously age and health.

• Pay your Life Insurance Premium:

Finally, when the underwriter is done, you’ll be sent your policy and information to make your payment via e-mail. You can pay your premium through debit card, credit card or net banking facilities available with the insurer. Once payment is received, you’re insured.