Life Insurance

Term Insurance: Online vs Offline

One of the most popular choices of coverages among families is Term Insurance. The vast popularity is due to the presence of high cover with low premiums and added benefits. With the rising trend of…

One of the most popular choices of coverages among families is Term Insurance. The vast popularity is due to the presence of high cover with low premiums and added benefits. With the rising trend of term insurance, another trend that has picked up at a faster pace is online insurance shopping. The Internet has empowered the process of digitalization, and people have indulged themselves in buying things and making payments online. It can be bought online, as it is affordable, timesaving, and saves you with a pile of paperwork.

Let’s discuss the reasons why buying the term insurance plan online is a better option than offline.

Why buying term insurance plan online is better than offline?

1. Cost Effective:

What is the top factor that people consider while investing their money in an investment plan? Cost! It is one reason that term insurance plans are popular as they charge you with low premiums and provide you with high coverage. Buying a term insurance plan online can lead to saving even more. Term life insurance plans over the web are 30 to 50 percent cheaper than those available offline. This happens because the insurance company sells the product directly to the customer, which saves the company the cost of agents. The cost cuts in between leads to a cheaper term life insurance plan with lower premiums.

2. Convenience:

Online shopping brings a lot of convenience. It gives you the privilege of choosing from a variety of products that fall under the same price range, It gives detailed information for easy comparisons, all while browsing through the choices at home. It is the way of quick, easy, and hassle-free policy purchase at any time. You don’t have to worry about fixing appointments with the agent, waiting for your turn at the branch, or losing interest in the pile of paperwork.

3. Transparency:

Buying anything online provides you with access to lookout for multiple options all at once. You can thoroughly check all the details and information along with the terms and conditions of the policy. You can browse through the company’s websites, read reviews from the customers, and have a direct conversation with the insurer. This enhances transparency in the buying process as no details are left out, leaving no room for errors. However, buying a policy online involves a third person between the buyer and the seller that may result in reduced chances of transparency. 

4. Customer Support:

Another benefit of buying a term life insurance plan is the 24x7 access to customer care and support. The automation in websites provides you with answers to your general queries, whereas you can talk to the customer care executive at a toll-free number. The online portal provides you with alerts and notifications of the policy. This may not be the case in offline mode as you have to keep a check manually on such things.

5. Clam Settlement Ratio:

The claim settlement ratio is explained as the number of claims received by the insurer to the number of claims honoured by the insurer. This is a crucial piece of data for customers as it provides them with an idea of the claim settlement process. Customers have full access to this information when they buy the insurance policy online. However, it is not readily available to customers who buy the system offline. This ratio tells you a lot about the company’s reputation. It will help you choose the better option amongst the others as compared to the offline mode, where the information may get manipulated.

Buying Term Insurance Plan Benefits

However, buying a term insurance plan also accounts for some advantages over the online mode. 

1. Higher Value:

To attract customers, many insurance companies make clickbait titles that assure higher amounts. You must have gone through several advertisements where the companies claim insurance cover of a total Rs. 1 crore at a premium of just INR 500 per month. In such scenarios, companies prefer to sell the policies through offline mode to make more sense. 

2. Illness Coverage Benefits:

Term insurance plans over the web provides cover for casualties like accidents. Any other coverage requires you to pay more money along with the premium. These plans also do not offer cover for disabled persons. But, the policy in the offline modes accounts for all these benefits and coverage. This is a significant aspect for people who are confused about buying the plan in online or offline mode.

Term insurance online vs offline conclusion

Now that you know about the benefits and disadvantages of buying the term insurance plan from both the modes, you can decide without any confusion. Call the company’s customer care and have a better perspective of the process so that you can choose yourself, or there is a need for an agent. Opt for the mode of buying that suits your requirements and enjoy the benefits.

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