Life
General
Quick Services
Resources
Digit Glow Term Life Insurance
I agree to the Terms & Conditions
Comparing Online vs Offline Term Insurance & Which is Better?
Term insurance has become a popular financial product in recent years, as it is a pure risk coverage plan that provides financial protection to your family in the event of your untimely death during the policy tenure. However, when it comes to buying term insurance, one of the most debated topics is whether to purchase it online or offline.
While both methods aim to provide the same product, they differ in cost, process, and convenience. In this article, we will discuss the differences between online and offline term insurance and their advantages, disadvantages, and processes to help you decide which suits your needs.
Table of Contents
What is Online Term Insurance?
What is Offline Term Insurance?
Differences Between Buying Online vs Offline Term Insurance
Benefits of Buying Online Term Plans
The following are a few advantages associated with purchasing an online term plan:
Cost-Effectiveness
Online term insurance policies are typically cheaper than their offline counterparts. Since there are no intermediary commissions or overhead expenses, insurers pass on the savings to customers through lower premiums.
Convenience
You can purchase online term insurance from the comfort of your home anytime, 24/7. The process is quick and eliminates the need for in-person office visits or completing lengthy paperwork.
Transparency
Online platforms provide all the necessary information about the policy, including features, benefits, exclusions, and terms. This ensures you can make an informed decision without relying solely on an agent’s advice.
Comparison Tools
Online platforms and aggregators allow you to compare multiple policies from different insurers side by side. This helps you choose the best plan based on coverage, premium, and other features.
Customisable Options
Online platforms often allow you to customise your policy with riders (add-ons like critical illness or accidental death cover) to suit your needs.
No Instances of Fraud
100% online transparency offered by insurance companies in terms of policy regulations eliminates fraud risks. In addition, since no agent is involved, concerned individuals can compare the terms and decide whether the plan would benefit them, then proceed accordingly.
Challenges of Online Term Insurance
Challenges of Online Term Insurance
Here are some common challenges associated with online term insurance:
- Self-Reliance: Buying term insurance online requires you to independently research and understand the policy details. This can be overwhelming, especially for first-time buyers.
- Limited Personal Assistance: While online platforms offer customer support, the absence of a dedicated agent may make it difficult to get personalised advice.
- Technical Barriers: Not everyone is comfortable with online transactions or navigating websites, especially those less tech-savvy.
Benefits of Buying Offline Term Plans
Here are some benefits of buying term plans offline:
Personalised Guidance
Agents or brokers provide one-on-one guidance, explaining the policy’s features, benefits, and exclusions in detail. They can help you choose a plan that aligns with your financial goals and responsibilities. Also, they can spot the potential mistakes people make when filling out an insurance application form.
Trust and Assurance
Many people feel more comfortable dealing with a human intermediary, as it adds a layer of trust and reliability. Insurance agents can help you create an adequate budget to secure enough life insurance coverage.
Ease of Process
Agents handle the paperwork, medical tests, and other formalities, making the process less cumbersome for the policyholder.
Post-Sale Service
A dedicated agent can assist with policy renewals, claims, or any issues arising during the policy tenure.
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 to keep in touch with an agent who handles all the formalities in exchange for a professional fee.
Challenges of Offline Term Insurance
Challenges of Offline Term Insurance
Here are some common challenges associated with offline term insurance:
- Higher Premiums: Offline policies are generally more expensive due to agent commissions and additional administrative costs.
- Lack of Transparency: Agents may sometimes withhold certain details or promote specific policies to earn higher commissions, which could lead to bias.
- Time-Consuming: The offline process involves meeting agents, attending discussions, and completing paperwork, which can be time-consuming.
How to Buy Term Insurance Online?
Buying term life insurance online is a straightforward process. Here are the steps to guide you through it:
Step 1
Visit the insurance website and use term insurance calculator to estimate the ideal sum assured and premium based on your financial profile
Step 2
Enter your age, income, and coverage amount and compare plans based on premium, benefits, and features.
Step 3
Select a policy, customise it with riders, and proceed to payment.
Step 4
Complete any required medical tests and upload the necessary documents.
Step 5
The policy will be issued and sent to your email once approved.
How to Buy Term Insurance Offline?
Buying offline term insurance involves a few key steps. Here is a detailed guide to help you through the process:
Step 1
Contact an agent or visit the nearest branch office of the insurance company.
Step 2
Discuss your needs and financial goals with the agent.
Step 3
Review the suggested policies and select the most suitable one.
Step 4
Fill out the application form and submit the required documents.
Step 5
If applicable, undergo medical tests. The agent will handle the paperwork and issue the policy.
Which Term Plan is Better - Online or Offline?
Both online and offline term insurance have their unique advantages and limitations. While online policies are more cost-effective, they offer convenience and faster processing but lack personalised advice.
Offline plans provide personal assistance from agents, offering tailored advice and a sense of security through face-to-face interactions. However, these plans come with higher premiums and a slower process.
FAQs about Online vs Offline Term Insurance
Why is buying life insurance online considered to be a hassle-free process?
Which form of buying, online or offline, involves a more informed buying decision?
Why is online insurance cheaper than offline?
Is term insurance better online or offline?
Is it safe to buy term insurance online?
What are the benefits of buying term insurance online?
What are the benefits of buying term insurance offline?
How do I compare different term insurance plans online?
Can I trust online term insurance plans?
What documents are required to buy term insurance online?
How does the claim settlement process differ between online and offline?
Can I get a refund if I cancel my online term insurance policy?
Is a ₹1 crore term plan available both online and offline?
Other Important Term Insurance Guides
Other Important Articles Related to Term Insurance
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
Latest News
Read More
Renew & Download Policy Document, Check Challan, Credit Score, PUC & more
Anytime, Anywhere. Only on Digit App!
Rated App
Rated App
Scan to Download
