A research conducted on buying behaviour of policyholders carried out by Coverfox.com, an online insurance distribution platform found that too many choices on term insurance could delay buying decision of customers.
In a press release, the company said that while the demand and awareness for term insurance is increasing, the increased number of options available require the customer to understand each customization option clearly. Comparison on the existing online portals are not adequate which has resulted either in procrastination or customers being completely dependent on assistance from call centre advisors to make a decision.
To bridge this gap, the platform has launched new interface, which would recommend policy based on algorithm (robo advisory). The new feature will help customers choose the right insurance product, said the company.
Premanshu Singh, CEO of Coverfox.com said, “While a user may know the way his income impacts his policy, death coverage etc., what he might not know are the inclusions and exclusions under a term plan. Our revamped platform guides a user through the same and the customer can himself buy the insurance within 10 minutes.”
Other key findings on term insurance are 70% of the policies are bought by users under 40 years of age, 80% of the users like to pay the premium for the policies on monthly basis, 70% of the policy holders opt for 1 rider while buying the policy.