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Difference Between Offline and Online Term Insurance

Updated On Aug 12, 2021

Besides providing financial protection against any unforeseen emergency, a term insurance plan also offers benefits such as tax savings and coverage for the expense of treatment for a critical disease or illness while you are alive. Therefore, it is crucial to comprehend the significance of a term insurance policy and choose the most appropriate plan after carefully examining your current and future demands and comparing various policies offered by different insurance providers. The next step is to purchase the policy, which the individual can do either online through a website or in person at an insurance provider's office branch. The following article compares both alternatives to guide you in selecting the best option for yourself.

What is the Difference Between Offline and Online Term Insurance Plans?

An online term insurance policy and an offline term insurance policy are compared below.

  • Convenience

    In comparison to an online term life insurance policy, which is far more convenient, an offline term life insurance policy is highly demanding and time-consuming due to extensive paperwork and commission payment. Interestingly, the savings on administration and agent services are returned to the policyholder as discounts in an online term insurance policy.
  • Flexible

    From the comfort of your own home, you can compare terms and conditions, approximate premiums, and the sum assured offered on various policies offered by various insurance providers using online websites and portals. On the other hand, in an offline term insurance policy, the policyholder must engage with the insurance agent in person to select an appropriate coverage.
  • Coverage

    Due to a higher premium price charged with the additional charges of the agent's commission in the offline term insurance policy, an online term insurance policy offers a bigger sum assured than an offline term insurance policy.
  • Claim Settlement Ratio

    In the online mode, the claim settlement ratio of various insurance providers can be easily computed and compared, facilitating the selection of a reliable insurer with the greatest percentage. In the case of an offline term insurance policy, on the other hand, the facts can be changed by the agent to mislead and persuade you into purchasing a policy from them, even if the company has a bad reputation.
  • Frauds

    As previously mentioned, online portals and websites make it simple to compare the terms and conditions of various term insurance policies. In the offline form, however, you must rely on the insurance agent, who may or may not give all of the necessary details regarding the plan. As a result, a term insurance policy purchased online has a minimal risk of being incorrect and misleading.

Which Plan Should You Pick?

It should be highlighted that, while these points suggest that an online term insurance plan is a preferable option, it is quite likely that an offline term insurance policy will prove to be more beneficial to the individual. Hence, you should avoid making a decision based on the pressure or influence of others or the advice of your peers. Instead, you should weigh the benefits and downsides of each option in light of your specific requirements.

Endnotes

To facilitate your decision between an online term insurance policy and an offline term insurance plan, a trusted insurance agent or a credible financial counsellor could be consulted. Furthermore, before acquiring either of the plans, considerations such as economical premium rates, suitable coverage, and proper policy duration should be evaluated. In addition, it is prudent to disclose all pertinent personal, professional, and medical information.

Also read: 

Which is the Best Term Insurance Plan For You – Regular Term Plan or Smart Term Plan?

Term Life Insurance: Myths Vs Reality

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.

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