Buying online term plans is becoming very common these days; most of the financial planners including me are suggesting their clients to buy online term plans. Why?? Because if you are getting identical product at lower cost it definitely makes some sense. Even cost benefit is not small & it ranges between 2-5% every year – sorry I missed out ZERO. Difference between online term insurance plan & offline term insurance plan is ranging between 20-50% depending on choice of your policy. But let me clarify that premium should not only be the criteria to select a term plan. Read: How to choose best term plan?
Couple of day’s back I wrote review of HDFC Click 2 Protect online term insurance plan & I think I used all good words available in the dictionary to praise this product. (No, I am not an agent of HDFC Life Insurance or for that matter I don’t hold insurance agency of any other insurance company – general or life.)
You can read what people have shared & also add your experience in the comment section.
Buying online term insurance plan – bitter experience
Insurance comes under service industry so one of the selection criteria must be the quality of service people are getting. But I am shocked by looking at the comments that people are adding regarding services of HDFC life insurance. Harhsit Said…
“I have tried purchasing one of this online term plan through HDFC and let me tell you, the Customer service is just pathetic. I have completed the application and even completed the medical test, everything went well… I also sent my documents across 3 times but they again and again keep on asking me to send some document again. Suddenly 1 day I got the premium paid was reversed into my account without any notification given and my application was rejected. Upon calling the Customer service, even they were not sure what happened & why my application was rejected. I Than tried Kotak E-Preferred for buying, here the problem was with filling up the application on their website, one the First screen itself where i have to enter my personal details, when i click save it is not accepting and returning some error. Contacted the Customer service and still they are unable to find out what the problem is? Still kotak CS is better than HDFC Life.
Just Wondering if applying for this policies can be so stressful for a tech Savvy person like me, what will happen during claim settlements for our Family Members.”
Sunil rubbed salt in the wound by replying
“Thanks for sharing your experience Mr. Harshit. It would surely be helping others to finalize their insurance company. I must congratulate you on receiving your money back else I am still struggling to get it back.. I would rate them as – WORST AMONG THE WORSTS.”
This comment forced me to add this post.
Rajeev added similar comment
“I had applied for this product on 21 Dec-2011 & paid the premium online through net banking. Since then I received no response from HDFC life through any of the channels (mail, phone, email or otherwise). I tried to contact them on phone, email, web complaint form, but they gave me replies like we will contact you in 24 hrs, 48 hrs which never happened. In the end of Jan-12, I received a verification call from them which was responded & then I received an email for submission of documents which were also submitted and acknowledged by them in first week of Feb-12. Again after that no response from them , so I sent them emails & also contacted on phone (helpline), I was told every time that they will call me back with status within 24/48 hrs , which never happened.
So, after getting no response from HDFC Life, even at proposal stage, comparing when other companies are issuing policies in minutes & also others are responding properly in time, I decided that taking policy from HDFC will be unwise decision. If these people are so unresponsive even at proposal stage, where everyone normally responds well, what will happen in case a claim arises?
So I sent them a notice for refund of my premium amount on 25/02/2012 & also made a complaint to IRDA.
Still worse, I have not got any response from them & they are also not responding to IRDA notice in time, deadline for which was 11/03/12, and providing IRDA false information.
Therefore, my advice, based on this experience, is not to purchase policy from unresponsive company HDFC Life, because it is a matter of security of your loved ones.”
These are not the only comment there are lot of them & don’t think that I am bashing HDFC Life because in most of other online term insurance plans people are facing similar things.
Insurance Advisor’s view on Offline Vs Online Term Insurance Plans
Dhawal Sharma is insurance advisor with Kotak Life Insurance & last year he also shared his experience. Read: Story of a Life Insurance Advisor
Dhawal shared couple of logical comments
“Wanted to share a real-life incidence with you. About 3-4 days back, I was sitting and discussing insurance with one of my prospect. He was inclined towards ONLINE TERM PLAN (HDFC click2protect). He told me that he will be saving A LOT OF PREMIUM plus all the hassles. Plus, his wife is educated and smart enough woman to handle the matters on her own.
I asked him how many times his wife has gone to the insurance branch and submitted the premium. Let alone this COMPLICATED MATTER, does she even know which is the servicing branch for their policy?? How easily can she fill up forms for getting DRAFTs made or doing STOP PAYMENT of some cheque?? How is the experience for her to stand in the government offices to stand in the queue to get BIRTH CERTIFICATE/DEATH CERTIFICATE etc.. And not surprisingly, his well-educated wife has NEVER done any of these things..
..and suddenly he realized the importance of “HUMAN FACTOR” in this entire transaction, and now is going ahead with me for OFFLINE TERM PLAN.
May be that I am an insurance agent will portray that I am selfish or something, but I do request everybody to think objectively before taking up such plans.
..And I shudder to think of the scenario where wife would not even know that such a thing called ONLINE TERM PLAN existed in the cupboard??”
He also added
“OFFLINE and ONLINE claim settlement procedure as the same does not mean in both cases, the operations will be taking the same interest in doing the work. An agent has a FAMILY BONDING with the client over a period of time and for him, getting the claim settlement is personal matter unlike ONLINE thing where it will be a routine job, to be carried out in 9-to-6 manner..”
It will be great if you can share your experience in buying online term plan – this will be of immense help to other readers.