[Buying Insurance Online] Essential Reading for Socially Anxious Individuals: Understanding the Features of Online Insurance Applications

The MBTI 16 personality type test is popular in society, with some individuals being more extroverted "E" types, while others are more introverted "I" types. When purchasing insurance, people may also be divided into "E" or "I" types. Some prefer to seek help from insurance advisors, while others avoid contact with advisors, fearing they might become targets of "hard sell" tactics.

The insurance industry in Hong Kong is highly regulated. Some products with complex structures must be purchased through intermediaries, but simpler products, such as term life and critical illness insurance, allow policyholders to apply online independently. This article will guide you through the key features of online insurance applications. 

Since most insurance advisers primarily earn their income from commissions, under the pressure to meet sales targets, some advisers tend to promote products with savings components and higher premiums to earn greater commissions.

Over time, even those who are interested in purchasing insurance may be deterred by the fear of being subjected to aggressive sales tactics. However, readers who are considering insurance can opt to purchase coverage-focused products online, allowing them to remain in control of the process.

Advantages of Online Insurance Purchase

• Applying for insurance is straightforward, as policyholders can complete the entire process online. Unless there are special circumstances, insurance advisers are generally not involved.
• For simpler products, the approval process with some insurance companies is relatively uncomplicated. Policyholders typically only need to provide personal information and answer a few health-related questions, with the online platform completing the approval in a short time.
• Some online insurance products occasionally offer promotions, resulting in lower premiums. 

Term life insurance provides life coverage, ensuring that if the insured unfortunately passes away, the beneficiary will receive a lump sum compensation to address the immediate financial needs of the surviving family members. It is worth considering for property owners or breadwinners. Moreover, term life insurance does not include a savings component or cash value, meaning every penny paid by the policyholder goes towards life coverage, making the premiums relatively affordable.

Term critical illness insurance provides critical illness coverage to the insured, with common coverage periods of 1 year, 5 years, and 10 years. Such policies do not include savings components or cash value.

In terms of product coverage, there are three common types in the market: coverage limited to cancer (also known as term cancer insurance), coverage for the three major critical illnesses (cancer, heart disease, stroke), and coverage for multiple illnesses (the three major critical illnesses plus other critical illnesses). Most products allow only one claim for a severe illness, after which the policy terminates. However, recently, a small number of products in the market have started to offer multiple coverage options.

Further reading: 【Critical Illness Insurance 2024】Whole Life Critical Illness vs Term Critical Illness! Full Comparison of Premiums, Coverage, and Savings Components 

Although the process of purchasing insurance online is convenient and does not involve an insurance advisor, it is precisely because of the absence of an advisor that some important considerations for policyholders are easily overlooked.

Important Notes for Online Insurance Purchase

• Online insurance also follows a standard underwriting process. When answering health-related questions, policyholders must truthfully declare personal information and medical history. This allows the insurance company to assess the underwriting risk based on the policyholder’s “material facts”. Failure to do so may affect future claims.
• Before purchasing, policyholders should carefully read the policy terms and conditions to understand the coverage scope and associated risks of the product.
• The premium for regular insurance generally adjusts as the policyholder’s age increases and risks rise. 

Answer: The beneficiary can apply for a claim online or contact the insurance company’s customer service or claims specialist (if available) to proceed with the claim. The insurance company will process the claim according to the policy terms, so policyholders should carefully review the policy details before purchasing to fully understand the scope of coverage.

Depending on individual circumstances and needs, the coverage amount for insurance purchased by policyholders may vary. For more details, you can visit 10Life’s 《Insurance Decoder》 to learn more.

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Note: This article was last updated on 30th October 2024

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.