Wednesday, September 19, 2012

Do NOT buy online term insurance through agents

Online term insurance are the cheapest – everyone knows that. There are hundreds of articles on the web, including this website, explaining different features of online term insurance plans. And it is a well known fact that the main reason for low online premium is because of non-involvement of agent. It reduces company's cost as it does not pay have to pay any kind of commission, bonus, contest prizes etc. to either agent or sales manager.

Buying online term insurance is as easy as 1-2-3. Just visit the official website of the life insurance company, fill-up the form, make online payment of premium and submit your documents online. That's it. The company may ask you to go for medical tests.

Isn't it simple?

But some people find it difficult or rather I should say, hesitate to start this buying process. So, they generally call company to send executive or fill-up online forms on different websites, with their personal details. In this process, most of the time, these details get passed to some life insurance agent. He/She will come to your home/office of your choice and will help you to fill-up online form. 

But why they're helping, if they're not getting any commission? Have they started any social service?


Let's look inside this process. Whenever agent comes to help you, he/she will instruct you to enter their agent code first on the web and then start filling up the form. They may also give you form to fill-up instead of filling it online. In this process, you've to pay HIGHER premium throughout the tenure; including the first year. They may also sell you offline term insurance plan, instead of online term insurance plan. They may even try to convince you to buy some ULIP / retirement plan / child plan / money-back plan instead of term insurance plan.


Remember the following points: 

  • Agents are also given ID card and visiting cards by the company, just like to employees. 
  • For any problem/query on filling up the form, you can always call customer care department of the company to assist you. Generally, they've separate staff to help you on phone itself.
  • Even if you've bought the wrong policy through agent, you can return it back to the company in free-look period; which is of 15-days, starting from the date of receiving of policy bond by the customer.


Got any query/doubt on this article? Just mention it under comments section below.

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