E-insurance plans are proving to be value for money products, with regard to both charges and premium.
While, theoretically, the online facility looks good, there are a few drawbacks of the e-distribution channel. The insurance plans available on the net are mostly pre-set. That means, only the simple versions of the policies, which can't be modified to suit individual needs. So, it won't be possible to customise a plan to suit your special requirements or negotiate your premium with the insurer.
Also, a majority of exclusive online term plans will not have the option to select riders, such as accidental disability benefit, critical illness or premium waiver covers.
So, in case you had planned to bundle these products, it won't be available in an online sale. You will have to shell out extra for these protections.
When buying an e-policy, customers fill up the application form themselves, thereby, reducing the chances of mistake or a case of being mis-sold by a distributor.