Simplifying Life Insurance in India
Online vs Offline Term Insurance: Understand Which Will Work for You Better
source: livemint
Term insurance policies are now considered an indispensable inclusion as there is no certainty on how long a person will live. Thus understanding the particulars related to the policy correctly is mandatory both for new policyowners and those who intend to renew their plans.
It is essential to perceive overall aspects regarding online vs offline term insurance before buying one from a reputed company. Though an individual receives one-on-one insights while procuring insurance offline via an agent, they may miss the online discounts.
What Are the Benefits of Buying Online Term Plans?
Buying term plans online from reputed brands guarantees maximum transparency as no mediator is aiming to grab extra commission.
Moreover, when you buy an online term plan, you can compare its offerings alongside similar plans. To put it in brief, following are a few advantages associated with purchasing an online term plan:
Increased Flexibility: Chances of claim settlement are solely influenced by the activities of the policy seeker. As no agents are involved, you gain full authority to provide the details and guide the insurer regarding your financial standpoint.
Reduced Costs: Overall cost declines as there is no question of associated commissions. Moreover, the processing fees are nominal compared to offline insurance.
Higher Settlement Ratio: The settlement ratio is a vital component every policy buyer must check before accepting services from a specific insurance provider. As customer reviews and feedback back the metrics published by the online marketplaces, they are more reliable and help make better purchase decisions.
No Instances of Fraud: 100% online transparency offered by insurance companies in terms of policy regulations eliminates fraud risks. In addition, as no agent is involved, concerned individuals can compare the terms and decide whether the plan would benefit them and proceed likewise.
What Are the Benefits of Buying Offline Term Plans?
Offline term plans are purchased from a local agent working for an insurance company. People choose this method of buying term plans as they feel safe when guided by a market expert while selecting the best possible plan.
Here are some benefits of buying term plans offline:
- Guidance from Experts: Experts can spot the possible mistakes people are prone to making while filing an insurance application form. Thus relying on them can be helpful in the long term, especially in future when there can be a scenario of encashment of the term plan.
- Selection of Sufficient Cover: As term plans are affordable, people often choose the cheapest option. Instead, they must complete planning and evaluating the family's future financial needs and liabilities before finalising on a policy. Insurance agents can help you fix an adequate budget for securing enough life insurance coverage.
- Ready Access to Customer Support: Waiting for executives to reach out or drawing a customer care ticket can be exhaustive, especially during an emergency. Thus many prefer keeping in touch with an agent who handles all the formalities in exchange for a professional fee.
Differences Between Buying Online And Offline Term Insurance Plans
|
Parameter |
Buying Term Insurance Plan Online |
Buying a Term Insurance Plan Offline |
|
Privacy |
Particulars of the insurance policy are more confidential as nobody other than the policyholder is aware of the plan details. |
Agents are aware of every minute detail of policy applicants as they need to fill the form on their behalf. Thus privacy gets compromised. |
|
Premiums |
Online life insurance plans come with lower premiums for the same coverage. |
Offline life insurance plans involve brokers who keep a certain percentage of the premium as commission; thus, the premium costs are generally high. |
|
Claim Settlement Ratio |
In online marketplaces, a policy seeker can review a particular company's claim settlement ratio and check its customers' reviews. |
For every vital metric, such as the claim settlement ratio, the consumer needs to rely on the insurer's local agent. Therefore, offline term plans offer low transparency. |
|
Additional Riders |
The insurance company usually guarantees only death benefits to the policyholder. However, extra features like accident cover, disability benefits, or critical illness cover come at an extra cost. |
Term plans packed with additional riders are marketed at a single package price. |
|
Assistance |
You have to do everything independently, from filling up the application form to document verification and submission. |
A designated agent representing your preferred insurance company does everything on your behalf. This person is also responsible for taking care of procedures related to the claim settlement process. |
Which Term Plan Is Better in Terms of Benefits: Online or Offline?
Here is a quick way to summarise the individual benefits that will eventually help you obtain a clearer picture of online vs offline term insurance.
|
Benefits of Online Term Plan |
Benefits of Offline Term Plan |
|
Chances of grabbing a more customised deal are higher when you compare multiple plans online and take a well-informed independent buying decision. |
In the offline mode, a professional helping hand takes you through the entire process. Thus chances of committing an error while providing personal information are less. |
|
For insurance seekers who wish to deal with the insurer directly, the online mode is the best option. |
The agents ensure you know all the necessary details before finalising a particular plan. |
|
Premiums generally come at a lower rate while purchasing term plans online, as no commission is involved. |
During the claiming process, your chosen agent takes care of all necessary paperwork, so you do not need to worry about the hassle. |
FAQs on Buying Term Plan Online and Offline:
Why is buying life insurance online considered to be a hassle-free process?
Which form of buying, online or offline, involves a more informed buying decision?
Why is online insurance cheaper than offline?
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Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
