Life insurance is a financial product that provides various monetary benefits to the buyer/ policyholder of the life insurance plan in exchange for premium payments. There are several types of life insurance plans that give different coverages.
For instance, the best term insurance plan provides coverage only against death and pays the policyholder's family with a death benefit. On the other hand, an endowment life insurance policy offers the dual benefits of wealth creation and financial security.
A Unit-linked insurance plan offers the triple benefits of goal-oriented savings, market-linked income creation, and life insurance protection. While buying life insurance, it can seem like every life insurance policy has a lot to offer, but it is easy to end up with one that gives inadequate coverage.
If you are buying life insurance online especially, you have to be even more careful as the entire process is behind a screen.
Here are five common traps to avoid while shopping for a life insurance policy online -
One of the first traps to avoid while buying a life insurance policy is solely buying it on the basis of its features on the surface level. It is not wise to believe everything that the life insurance website shows or the insurance agent claims, however rosy it might appear.
A sincere life insurer and their agent will always recommend you to read the fine print of the life insurance policy in detail before finalizing a purchase. The fine print or the terms and conditions (T&C) will contain all the details, inclusions, and exclusions of the life insurance policy, which you need to be aware of before buying it.
Choosing a life insurance plan with a high cover amount (or sum assured) just because the life insurance plan or agent advises in favour of it is one of the biggest buying mistakes you can make. Of course, it is another thing if the insurer or assigned agent assesses your financial needs, life goals, and budget and makes a recommendation. But if they don't have any idea of your unique requirements, it is best to take the ball into your court, assess your financial necessities and preferences, and then make a call.
It is crucial to research and verify the credibility and trustworthiness of an insurer before buying a life insurance policy from them. Getting a life insurance plan requires entering into a contract with the insurer, the payment of money, and a whole lot of trust. So make sure you check the past performances of the insurer, their brand reputation, and customer reviews. You can also check the claim settlement ratio, i.e., the number of insurance claims settled by an insurer in a year, to see how committed they are to their customers.
There are other fish in the sea – similarly, there are always other life insurance plans available other than the first one you come across. Comparing the different life insurance plans is crucial to finding the life insurance policy suited to your needs and financial capacity. It is something that even insurers encourage so that you don’t have any regrets about purchasing a specific life insurance policy later.
One of the most common and unintentional traps is hiding information from your insurer just because you are getting a life insurance policy online. It is necessary to mention all correct and relevant information, including your personal details and medical history. This is so that the insurer does not reject giving the benefits at the time of claim settlement, and you don't lose out on your hard-earned invested money.
Buying life insurance online can feel risky, but the many pros outweigh the cons to it. You can compare the various life insurance plans in seconds, save time, and get discounts on premium rates. Just refrain from the mistakes mentioned, and you will make a wise choice. To know more about term plan, ulip plan, retirement plan, long term savings and more visit PNB MetLife website.
Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
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As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.
PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance Plans, Term Plan, Protection Plans, Long Term Savings Plans , Retirement Plans & Child Education Plan.
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