Purchasing Term Insurance: Online v/s Offline

Posted by amrina alshaikh on April 24th, 2018

Life may present unexpected things to us anytime; and when it does, you don’t have enough time to set up the backup plan. Therefore, we always tend to have at least a primary life insurance, such as Term Insurance Policy. Usually, Indians have a hereditary habit of purchasing a life insurance policy that it covers the life, and at the same time, it allows to save on taxes. In this article, we aim at discussing the approach of purchasing insurance online and offline.

Life insurance policies have various types such as Whole Life Policies, ULIPs, Pension Plans, Term Pans, and Endowment Plans etc. Amongst all these, Term Insurance Policies are the simplest and easy to purchase, thus are offered online by almost all the insurance companies.

Term Insurance

Terms plans are the life insurance plans that come at reasonably cheaper rates and cover the life insured for the specific period. Since these plans do not generate cash value at the end of the term, maturity or survival benefits are not offered. If the life insured gets deceased within the policy tenure, the death benefits are paid to the respective beneficiaries.

Term Insurance Plans can be purchased in two ways – online and offline. Purchasing the plan offline is nothing but the traditional way of purchasing the policy through an insurance agent or visiting the insurance company’s branch.

Though it’s been a lot of time internet is introduced in India, some people still hesitate to buy costlier things online. They don’t find it safe as compared to the traditional way. Also, there are some misconceptions that online policy may not showcase the clear picture of the policy that you can get through an agent. Thus, to clear this confusion, you must read the following comparison to get a clear picture of the way of purchasing the policy.

Premium Rates

When it comes to purchasing an insurance policy, costs matter a lot. You can compare several plans online and find out which plan offers you the life cover at considerably cheaper rates. But choosing the low-priced policy should not be the only criteria to choose the perfect plan; you need to consider several other factors too, such as the benefits offered by the plan. Since many other costs are cut down in online presence, the premium rates for online policies are low as compared to the offline plans.

Consultation Costs

When the traditional or offline way is considered, the commission of insurance agent is very high, that adds an extra cost to the policy; whereas, in the online process, agent commission is not applicable. Typically, agent’s commission includes briefing the policy, premium collection, medical tests co-ordination, and other services.

Transparency

Insurance agents do all the necessary paperwork in case of an offline purchase, but the question arises whether they disclose all the information regarding the policy or not. In case of online purchase, there is no intermediate, and all the information is provided by the insurer. You get all the fine prints about what the policy offers exactly. Sometimes, non-disclosure of the information may lead to misinterpreting the policy terms, and can sometimes result in the rejection of the policy.

Greater Benefits at Lower Premiums

As online plans come at cheaper rates and offer the same sum assured as to offline plans, it is always beneficial to purchase the insurance online.

Flexibility

Online term plans are more flexible as compared to offline ones as they can be purchased from the comfort of your choice. Be it your office, your house or in travel; you can buy the insurance policy from any internet enabled device in just one click. You get your policy at your doorstep, and even the premium can be paid online at your ease.

With the use of the internet, you can not only choose the best suitable policy but also can buy and renew it. With this convenience, you save more on the premiums and get more significant benefits by opting for the insurance online. All you need to do is get your hands on the internet and save more on your insurance.