Online vs Offline Term Insurance: Understand Which Will Work for You Better

What Are the Benefits of Buying Online Term Plans?

What Are the Benefits of Buying Offline Term Plans?

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.

Once you realise your family's end goals and start saving for their bright financial future, choosing a perfect term plan, online or offline, becomes easy. All you have to do is compare various plans and combine the riders you feel can be of the most help to you.

FAQs on Buying Term Plan Online and Offline:

Why is buying life insurance online considered to be a hassle-free process? up-arrow

Buying a term plan online can quickly eliminate unnecessary processes that would otherwise involve lengthy paperwork and approval-seeking activities at multiple office outlets. Now, as everything is monitored and controlled online, one can compare several term plans from the comfort of their home and choose one that best meets their purpose.

Which form of buying, online or offline, involves a more informed buying decision? up-arrow

People can read other policyholders’ reviews while buying life insurance online. Also, they can see a particular company’s claim settlement ratio, various rider options etc. and eventually decide whether the plan aligns with the family's long-term goals. Thus, online term plan buying is considered a more well-informed financial decision.

Why is online insurance cheaper than offline? up-arrow

When you buy an online insurance you can eliminate all the intermediary costs which would have otherwise passed onto you. Also you get to compare various policies that allow you to get the most profitable deal at low premiums.