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Is Buying Term Insurance Online Safe During This Coronavirus Period

Under the current crisis of the COVID-19 scenario, the world has changed drastically. Some say that it will never be the same again. In the current scenario, many of us are more aware of our mortality rate than ever before. Hence, having some form of life insurance in place seems to make sense.

You can pay for your insurance or buy a new policy online. However, your financial details may be at risk if not entered securely. Let's take a look at the issues you could face, and then we will discuss how to buy term insurance online without any hitches.

What Is Term Insurance?

Term insurance is a life insurance plan that covers a particular number of years, which we call the "term." The plan offers a "death benefit," which is an amount that gets paid out in case the insured dies during the term of the policy.

Security Risks for Buying Term Insurance Online

Term insurance is one of the cheapest and most straightforward types of insurance policy to buy. However, you need to be aware of certain risks before buying term insurance online. Here are a few issues that you should watch out for: Phishing

Fraudsters send emails posing as individuals from well-known companies. They win your confidence to get your personal information like your bank account details. Once they have your details, they use it to commit fraud on your account. This process is known as phishing. Hence, always be wary of suspicious-looking emails. A bank or term insurance provider will never ask you for your password details. Data Theft With billions of dollars being lost through data theft every year, you don't want to be part of that statistic. Always keep your data secure and only buy products and services through trusted websites.

Malware and Spyware Malware is a software that is designed to damage or disable a computer system. Spyware is a software that enters your computer and records and transmits the data that it detects. This data is then used by fraudsters to commit cybercrime. Hence, never click on an online link that looks suspicious as it could bring malware or spyware to your computer, laptop, or handheld device.

Fake Online Reviews

If you want to know about a product, even a term insurance policy, you can quickly go online and take a look at the reviews. However, be aware that the product provider themselves posts some reviews. Be wary if you see a review page that has only five-star reviews about a particular product.

Counterfeit Products

When you shop online for products and services, most of the stuff is genuine. However, many operators are peddling counterfeit goods and services. Once you make a payment, you may either get defective products or not receive anything at all. Ensure that you are dealing with a registered insurance company who are what they claim to be.

How to Buy Online Term Insurance

With the above advice, you can have a safe online buying experience. You need to realize that you will be buying a term insurance plan directly through the insurance companies website, online insurance broker or aggregator. An online sale means that you are buying without taking advice from a licensed insurance agent. Hence, you would do well to follow these steps:

  • Choose adequate cover
  • Select your term carefully
  • Pick a reliable insurance company
  • Compare plans from different insurance providers
  • Check for riders and other terms and conditions
  • Take a look at additional covers available

The Process of Buying Online Term Insurance

Now that you have some idea what to look for, follow the steps below to buy your term insurance plan online. Remember, you will be covered from as soon as you pay your first premium:

  • Step 1: Estimating the Sum Assured Estimate the amount required to support your family's expenses if you are no longer there. Use an online life insurance calculator to arrive at an appropriate figure.
  • Step 2: Comparing Companies Once you are aware of the required amount, which is the coverage you need, you can compare the plan and premiums from different providers for the same coverage. Also, look at the track record of various insurance companies. It is always better to buy term insurance from a well-established company.
  • Step 3: Looking for Riders Before going to the payment window, check for riders, which can widen the risk coverage of the term insurance policy. If you include riders, you can get more extensive coverage with a nominal increase in your premium.
  • Step 4: Checking All Details

Ensure that all the details you have keyed in are correct. Also, adding nominees is an essential aspect. In the unfortunate event of your demise, you don't want there to be any ambiguities regarding which of your loved ones will get the claim amount.

  • Step 5: Make Your Payment Once you have done the above necessary checks, then you can make the payment for your term insurance policy. Ensure that you follow all the security measures mentioned above.

Setting up a monthly Electronic Clearing Service (ECS) payment that debits directly from your bank account to pay for your term insurance policy is a good idea. That way, you will never miss a premium payment – you only need to ensure that you have enough balance in your bank account every month. Bingo! You are now covered, and you need not worry about what will happen to your loved ones after you're gone.

Conclusion

Buying term insurance makes a whole lot of sense when you have a family to support financially, especially in these troubled times when COVID-19 has raised its ugly head to threaten our very existence.

Is buying online term insurance safe during coronavirus? Yes, of course, it is. Nothing has changed in the way online payments systems work in the current COVID-19 scenario. However, more people than ever are online today because of the lack of physical access to places.

So, if you take care to follow all the precautions required to make online payments, you can apply for online term insurance and make online payments easily. Get covered today and ensure the financial security of your loved ones when you are no longer there to take care of them financially.

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