Online Insurance 101: About Application, Renewal, Coverage, & Claims

Life is full of risks that are out of our control. That's why people look into insurance to secure their assets, future, and protect their family members in case of an emergency.

As you may know, insurance is a contract made with an insurance company that guarantees financial support when faced with challenging situations, such as health issues, accidents, and death. It is bound by certain terms and conditions that depend on the company and policyholder. 

Admittedly, applying for insurance coverage can be a tedious process due to the various requirements needed and commitments you need to make. However, nowadays, in the digital age that we’re living in, applying for and claiming your insurance is simpler and more accessible than ever.

You can easily apply and claim your insurance with only a few clicks or taps on your computer or smart device. Here’s what you should know about online insurance and how to apply for it.

What Is Online Insurance? 

Online insurance is essentially the sale of insurance covers online. It is a modern, advanced, and cost-effective method of buying insurance policies using the power of internet.

Insurance companies introduced this service to sidestep intermediaries and bring down the cost for customers. Getting insurance used to require working with an agent, but today you can easily do so online. As such, online insurance is a lot more convenient than traditional insurance. 

Basically, customers can apply for the coverage they need, such as life insurance, or process a claim with an insurance company over the internet. Since you conduct the application, renewal, or claiming online, you can deal directly with the insurance company instead of an agent. 

With fewer fees, intermediaries, and more efficient processes and paperwork, settling your insurance coverage application online is more cost-effective and convenient for both the customer and insurer.

What's more, online insurance allows customers to easily browse through and compare various plans available online so that you can make an informed decision on the best policy for you.

It is much easier to compare the benefits of various insurance plans, policies and coverage terms online as everything you need is accessible at the click of a button on your internet connected device.

How to Apply for Insurance Online

Here is a step-by-step guide on the typical process followed when applying for insurance online to help you start the journey towards an insured future.

1. Choose an insurance policy

There are different types of insurance policies you can get, depending on what you need. One main type of insurance is life insurance, which provides death benefits or a lump sum to beneficiaries for associated costs in case of death. 

Other types of life insurance policies experts highly recommend that you can get besides life insurance include health, auto, and long-term disability insurance. You can even get whole life insurance, group life insurance, and variable universal life insurance.

2. Determine your budget

After choosing the insurance type you want, you must then determine the level of protection you need and how much you want your insurance to cover based on your budget. Paying insurance premium for a plan can be tough and stressful if it's out of your budget. 

Consider your financial capabilities, monthly premium required for the cover, and benefits you get with the cover to make sure you get the best deal and are not underinsured.

Before choosing your plan, remember to read through the terms and conditions carefully and consider all factors, including the recurring expenses and income that you and your family have.

3. Check the terms and conditions

Carefully review the terms and conditions of the insurance policy within your budget range. For example, in a life insurance cover, you usually have two policy choices: either opt for term life insurance or a permanent one depending on your needs. 

Depending on the coverage, the typical term life insurance policy may offer at least two years or more. It includes applying for insurance if you want to ensure funds for your children's education or if you're not quite ready for a long-term commitment. 

If you want insurance that will last for as long as you live, you can opt for permanent life insurance, so you don't worry about whether or not you still get death benefits. Aside from the terms, check the various insurance coverage offered and choose what matches your needs. 

4. Review coverage policy options 

Review your insurance policy before and regularly after applying for it. Read the fine print and double-check the content of the plan documentation, especially as it pertains to the coverage, exclusions, and premium required. 

To help you remember, create a summary form of your insurance by recording the policy numbers, date issued, expiration date, the premium, and the benefits and beneficiaries. 

Even after applying, it is important to review the policy regularly. For short-term plans, you wouldn't want to think that you're still covered with insurance when in fact it has already expired. So, check your plan regularly to avoid such oversights that may be costly later.

In case of expiration, some insurance companies automatically renew the policy at the end of the term, provided that you pay the premium on time. However, some may require renewal of the cover by applying afresh for a new insurance online. Be clear on what happens always.

Once you've decided on a reputable insurance company, a suitable insurance plan, and are satisfied with all the terms and conditions of coverage, get in touch with the insurance company online to process your application.

Insurance websites present online forms to fill and make an application. Fill the forms and don't be afraid to ask the insurer any questions and concerns you have before submitting the forms and completing the online insurance application.

How to Claim the Insurance Online

Just like applying for online insurance, claiming your insurance online is easy. Visit the insurance company's website and find the personal insurance claims option to file a claim. 

Fill the claims forms informing them of your loss or damage. Make sure to prepare the necessary paperwork and ensure all information is accurate before submitting the forms. The insurer will get back to you, assign a surveyor to evaluate the loss, and validate and process the claim.

If you get stuck anywhere and don't know how to proceed, call an agent or email the insurance company to assist you with the claim. Generally, however, applying and making an insurance claim online is usually pretty straightforward.