Online Term Insurance vs Offline Term Insurance Plans

A term insurance policy not only provides financial security to your family after your demise, but it also offers advantages like tax benefits and covers the treatment cost of a disease or an illness while you are alive. Hence, it is essential to understand the significance of an insurance plan and buy the most appropriate one after carefully assessing your current needs and future requirements and comparing different policies offered by various insurance providers. The next step includes purchasing the policy wherein the individual is provided with two options - online through a website or offline in the insurance company office. The following article offers a comparison between both options that will help you choose a suitable alternative for yourself.

Online Term Insurance vs Offline Term Insurance Plans

Here is a comparison between an online term insurance plan and an offline term insurance policy.

1. Sum Assured

An online term insurance policy offers a higher sum assured than the offline term insurance policy due to a high premium price charged with the additional costs of the agent’s commission in the offline term insurance policy.

2. Convenience

Extensive paperwork and commission payment make an offline term life insurance policy quite burdensome and time-consuming compared to an online term insurance policy, which is a lot more convenient. In the online term insurance policy, the costs saved on administration and agent’s services are paid back as discounts to the policyholder.

3. Flexibility

Online websites and portals can help you compare terms and conditions, approximate premium and the sum assured offered on various policies offered by different insurance providers from the comforts of your house. However, in the offline term insurance policy, the policyholder must physically meet with the insurance agent to choose an appropriate policy. 

4. Claim Settlement Ratio

The claim settlement ratio of different insurance providers can be calculated and compared quickly in the online mode that consequently helps to select a credible insurer with the highest percentage. On the other hand, in the case of an offline term insurance policy, the facts can be manipulated by the agent to mislead and trick you into buying a policy from them, even if the company has low credibility.

5. Frauds

As discussed before, the terms and conditions of different term insurance policies can be easily compared through online portals and websites. However, you have to rely on the insurance agent in the offline mode who might or might not reveal all the necessary details about the plan. Therefore, a term insurance policy bought online has low chances of being in the wrong and deceiving.

What Plan Should You Choose?

It must be noted that although these arguments show an online term insurance plan as a better alternative, it is highly likely that an offline term insurance policy proves to be more advantageous for the individual than an online term insurance policy. Thus, you should avoid selecting a plan under anyone’s pressure or influence and on mere recommendations from your agent friends, relatives, acquaintances. Instead, it would help if you compare the perks and drawbacks of both the alternatives according to your needs. 

Endnotes

An entrusted insurance agent or a credible financial advisor can be consulted to help choose between an online term insurance policy or an offline term insurance plan. Moreover, factors like affordable premium rates, adequate coverage, proper policy tenure should be considered before purchasing either of the plans. Furthermore, it is wise to disclose all the critical personal, professional and medical information to get a suitable term insurance policy designed specially to meet your needs. 

You may also like to read:-

• 4 Things to Consider While Buying Term Insurance Plan
• What Is The Maximum Age Limit To Buy Cover Under Term Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.