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.

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.

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.