Term Insurance: Online v/s Offline

Term Insurance Online vs Offline

Life insurance is essential to secure the lives of your loved ones in your absence. With several types of life insurance plans, it can become overwhelming to choose one. Term insurance is popular amongst policyholders since it offers significant life cover at an affordable premium. When you are planning to buy one, you may wonder, how should you go about it? Should you buy the term insurance online or offline? Read further to understand the key differences between online and offline term insurance plans:

Differences between online and offline term insurance

1. Easy to buy

Online term insurance is way easier to buy than offline ones. You can buy online insurance from the comfort of your home. Also, when you are doing the research and comparing several term insurance plans, you can do so comfortably from anywhere. You can also use tools like a term insurance calculator and find the premium amount for your term plan. While buying the same plan offline would be a tedious task. You would be required to go to the nearest branch of your insurance provider, wait to be attended to, fill everything manually, and submit necessary documents.

2. Transparency

When you are buying life insurance offline through an agent, he might lure you into plans that might not be in your best interest. The agent might also manipulate you by hiding certain important facts regarding the plan and even the insurance company. Instead, when you buy an online term plan, you will find every information that you need regarding the plan you want to purchase in writing. You can read the fine print, and understand every word of the plan before buying one.

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3. Premium amount

When you compare online versus offline term insurance plans, you often find that the online one is much cheaper. When you are buying term insurance through the online mode, your premium is lower as the commission and paperwork cost is eliminated. Using a term insurance calculator, you can find the exact premium you have to pay and the same when you inquire offline, it would probably be more. When you buy through an agent, he gets the commission and there is a lot of paperwork, which increases the administration costs. For online plans, everything is digital, and you buy directly from the insurance company.

4. Accountability

When you buy term insurance offline, you contact an insurance agent. The insurance agent is the middleman between you and the insurance company. The agent takes care of everything regarding your policy. You have fewer things to worry about, but also some agents might misuse your trust. When you buy a policy online, you directly buy through the insurance company. Since there is no middleman, coordinationis direct with the insurance company. Be proactive and pay premiums on time, update any information, and file any claim if needed. Buying a policy online requires the individual to be self-reliant.

5. Add-on benefits

When you buy an online term plan, you will find the options to add riders to your existing base plan. Riders are additional covers that you can choose by paying an additional premium. The common riders most insurance companies offer include critical illness riders, disability benefits, and accidental death riders. When you buy online, you can easily choose these plans and find their details. An insurance agent may or may not inform you about the add-on riders available. It would lead to you missing on additional benefits that your plan offered.

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Term insurance plans are now bought more online than offline. When you take the above reasons into consideration, it is obvious that buying online is better than buying offline. When you buy a policy online, its purchase, as well as its management, can be made from the comfort of your home. Further, the premiums are lower than that of offline plans, and hence, become an affordable option. Also, there is no agent involved, and you deal directly with the insurance company.

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