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Traditionally, most people in India relied on their insurance agents or advisors to purchase a policy. However, over the years, the trend has changed significantly. Today, with the advent of online services, many people prefer buying things online, including life insurance policies. Purchasing a policy online has multiple benefits. Let us compare online vs offline term insurance purchase and know how both works.
- Cost
It is a known fact that a term insurance policy has the most affordable premium compared to other types of life insurance policies. But did you know that buying a term plan online is much cheaper than buying the same plan offline? Let us tell you how.
When you buy a term life insurance policy online, you directly deal with the insurance company. There are no agents or intermediaries involved. On the other hand, when you buy a policy offline, you may rely on your agent, who charges a commission for their services. This increases the overall policy cost.
- Knowing the policy-related facts
When you buy term insurance online, you would invariably do your research to find out more about the policy features and benefits. You can know all the information you want by browsing through the insurance company’s website and referring to their brochures or FAQs section. Thus, you can make an informed buying decision.
In contrast, when you buy offline, you may have to rely on your agent to provide your complete information about the policy, or you must visit different insurance companies, speak to the representatives, and get the information you need. Either way, there is a risk that the person may hold back certain critical information or forget to mention it to you. Consequently, you may end up with a coverage that you are not happy with or that does not suit your needs.
- Fraud risk
One of the most significant benefits of buying term insurance online is that it eliminates the risk of fraud. When you buy a policy online, you can go through the terms and conditions and then decide if you want to purchase the same or not. You can also document the terms and conditions for future reference. Thus, there is complete transparency in the process.
Whereas, when you purchase a term plan offline, there is a high possibility that the advisor may try to manipulate specific terms and conditions in a way that you feel is favourable to you. But you may end up in a legal hassle later when you renew the policy or file a claim.
- Information about the claim settlement ratio
The claim settlement ratio is a critical factor that all insurance buyers must consider before choosing the right insurance company. It is the ratio of the number of claims the company has successfully settled in a year against the number of claims they received in the said period. Typically, the reputed insurers have a high CSR, and you can easily find this information online on their website or the IRDA website.
When you buy a policy online, you can find out the claim settlement ratio of different insurers and choose the right insurer accordingly. When you purchase offline, you must rely on the representative or agent for this information.
Buying term insurance online vs offline – which is better?
The overall convenience in the buying process, lower cost, high transparency and easy paying and renewal makes the online mode of buying term insurance a better choice than offline purchase.
