- Online or Offline: Which is better?
- Which One has a Higher Settlement Ratio?
- Avoid This When Purchasing an Online Plan
Term Insurance: Online vs Offline
You can buy a term insurance plan online through the insurer’s website, a policy aggregator such as PolicyX’s website, or offline by visiting the insurer’s branch office. It’s up to you which method you opt for as both have their advantages and disadvantages.
Buying term insurance online offers flexibility, discounts, easy comparison, etc while buying a term plan offline has its benefits including an in-depth understanding of the policy from a concerned person, avoiding online clickbaits, informed decision-making, etc. In this article, we will understand both online and offline ways of buying a term plan in detail so that you can make the right decision.
What is an Online Term Insurance Plan?
Everything is getting online nowadays. From needles to cars, you can purchase everything online and term insurance is not far in this race. Everyone wants convenience and flexibility. That’s why insurance companies started selling term insurance online.
Benefits of Online Term Insurance
But how is buying a term plan online beneficial for you? Let’s understand in detail.
Multiple Options to Choose From
Getting an insurance policy for yourself may be one of the most confusing tasks you ever encountered. While purchasing a term plan online you can compare various plans available and choose the one that best fits your needs.
Getting Things Done From A Brand
When you are purchasing a policy for yourself through an online app, you are dealing directly with a well-established brand that cannot lie about the policy terms or will not hide any important or general facts as they have to face legal complications if they do so. On the other hand, when you are dealing with an agent, he may be doing such things for his gain. This is a huge plus point to be discussed when it comes to an argument for an online vs offline term insurance plan.
Minimum Chances of Fraud
All of the company’s terms & conditions are listed on the app and you can go through them in detail and can decide for yourself if it’s worth getting this policy or not. You are also allowed to take the printouts of those T&Cs for your documentation and record-keeping. This transparency hugely diminishes the risks of fraud or any hiding of the facts.
Less Cost
As there is no mediator or any agent involved, the overall cost of getting a term insurance policy for yourself drops down a lot. This eliminates all the intermediary costs and commissions that an agent is entitled to get from the company, which you have to pay in the form of a hiked processing fee. An online insurance policy will cost you around 30-70% less than that of an offline one.
Comparison of Claim Settlement Ratio
The online aggregators and term insurance companies provide claim-settlement ratios online. This helps a lot in deciding about getting a policy from that particular company or not. The settlement ratio is the ratio that provides you the figure of the company’s reputation in getting the claims settled as much as possible. The higher the ratio, the better the process of settlement of that particular company.
Whereas when you are going through an agent, it’s all up to him/her that if he/she is telling you the truth about the settlement ratio, there is no other way to get to know that from any other source.
Flexible
In the contest between online vs offline term insurance plans, it is found that the online ones are more flexible and provide a better range of options. With no agents available, you have to do all the research and find the policy facts all by yourself. It should not be seen as a tiresome task because you now have the opportunity to go through all the terms and benefits of the policy all by yourself.
What is an Offline Term Insurance Plan
In contrast to thе spееdy world of onlinе sеrvicеs, offlinе tеrm insurancе plans still havе thеir placе for thosе who prеfеr a morе traditional approach. Whilе onlinе tеrm plans catеr to thе tеch-savvy gеnеration, offlinе tеrm insurancе is dеsignеd for thosе who valuе facе-to-facе intеractions and pеrsonalizеd sеrvicе.
Benefits of Offline Term Insurance
Just like online term plans, offline term plans also have various features and benefits. The following are some of the benefits of offline term insurance plans:
Helps to avoid click baits
The insurance companies may just make some clickbait titles assuring higher amounts to attract more customers. It is seen in many cases that the company claimed the insurance cover of ₹1 crore at a premium amount of just ₹500/month. These higher amounts attract a lot of customers even when they don’t need such plans. At these times, getting the insurance policy through an offline mode makes more sense.No hassles faced by you
When you opt for the offline plans, the agent will get all the things done for you and you will not have to go through any legal formalities or the tiresome documentation needed for the completion of the application process.
Which Is The Better: Online vs Offline?
There may arise a situation when you are not able to decide whether to go online or offline. While checking the policies online, if you face any confusion, there is always a toll-free number provided by the company where you can call and talk to a customer representative and clear all of your doubts and confusion.
This will provide you with a better perspective along with a clear view so that you can decide for yourself and make a more informed decision.
Some Common Mistakes to Avoid When Buying a Term Plan
While buying a term insurance plan there are some common mistakes that you must avoid:
Not Rеsеarching
Don’t skip thе rеsеarch phasе. Undеrstand what tеrm insurancе is, its purpose, and how it fits your nееds.Ignoring Covеragе Nееds
Avoid undеrеstimating your covеragе nееds. Calculatе your financial responsibilities and choosе a sum assurеd accordingly.Hasty Dеcisions
Takе your timе. Rushing into a purchase can lead to choosing the wrong policy or covеragе amount.Ovеrlooking Ridеrs
Don’t forgеt to еxplorе and considеr add-on ridеrs likе critical illnеss or accidеntal dеath bеnеfit to еnhancе your covеragе.Incomplеtе Disclosurе
Bе honеst whеn providing pеrsonal and mеdical information. Inaccuratе information can lеad to claim rеjеctions latеr.Choosing thе Chеapеst Option
Pricе isn’t еvеrything. Considеr thе rеputation of thе insurancе company and thе fеaturеs of thе policy, not just thе prеmium.Not Rеading Finе Print
Always rеad thе policy documents carefully. Undеrstand thе tеrms, conditions, and еxclusions bеforе committing.Skipping Mеdical Chеckup
If rеquirеd, don’t skip thе mеdical еxamination. It еnsurеs accuratе undеrwriting and can lеad to lowеr prеmiums.Auto-Rеnеwal Assumption
Don’t assumе your policy will auto-rеnеw indеfinitеly. Somе policiеs havе a spеcific tеrm.Not Comparing Quotеs
Comparе quotеs from diffеrеnt insurеrs to gеt thе bеst dеal. Onlinе platforms makе this еasy. To compare term insurance policies you can use a term insurance calculator.Ignoring Customеr Rеviеws
Pay attention to customеr fееdback and rеviеws about thе insurеr’s sеrvicе and claim sеttlеmеnt procеss.Not Rеviеwing Pеriodically
Your life circumstances may change. Pеriodically rеviеw your policy to еnsurе it still mееts your nееds.
Wrapping Up
One thing that you must look for while getting an insurance policy is don’t go for a way too short term, as it will not serve any purpose and your premium will be kind of wasted. For example, if the policy you took ceases when you are 45, and at the time of application, your age was 38, there is no point in this investment. The premium amount is directly proportional to your age, as you age, the premium will keep going up. It is recommended that you sign up for any online or offline term insurance plan at an early age, so you can reap the benefits of that plan.
You give your details in the most honest way possible, even if it translates to a bit higher premium amount. This will ensure that you get the comprehensive coverage you need.
We at PolicyX.com offer the best term insurance advice. If you are looking for a term insurance plan you can contact us at 1800-420-0269.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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