There are two options for buying a term insurance policy. The first option is to invest in a term insurance plan through an agent, which is an offline mode, while the second alternative is to purchase it online. The online option has gained significant popularity but many people are very sceptical about the security with regard to it. If you are one of those, here is a detailed comparison of purchasing a term plan through insurance agent vs online.
Benefits of buying term insurance online
You are provided with various benefits while investing in an online term plan. A few are discussed below.
- Make quick comparisons
When you buy term insurance online, you can make quick comparisons between different insurance providers. You can also use online to calculate your premium. This will help you choose the best policy. However, you cannot make a detailed comparison when you rely on an agent while purchasing an insurance cover.
- Connecting with the brand
When you purchase insurance online, you are actually connecting with the brand that is accessible to you 24X7. On the other hand, you cannot reach the agents except during the working hours.
- No chances of fraud
This is a major concern when comparing offline vs online term insurance. At the time of purchasing insurance online, you can log on to the website of the company and understand the terms and conditions of the policy. This will reduce any chances of fraud. In contrast, when you buy insurance from an agent, there are chances that he could manipulate the terms and conditions to influence your decision in favour of the company.
- Sum assured and cost
Many online term insurance plans work out to be much cheaper as compared to an offline term plan. This happens because there are no agents involved in the purchase thereby resulting in a reduction of the commission amount. Hence, there is a lower premium cost involved.
- Flexibility
When you make an online purchase, you enjoy higher flexibility and a wide range of options that help you decide on a plan that is a perfect fit for you. You need to do your own research and find a plan that suits you because there will be no agent guiding you through the process. Once you purchase a plan, you can log in to your account and renew the plan with ease.
The benefit of offline insurance
Now let us consider the benefits of buying a term plan offline.
- Sum assured
Due to marketing tactics, insurance companies tend to lure customers into buying insurance with a higher sum assured. You could end up with a cover that you do not actually need. This is when an agent can make a difference and help you choose the right cover for your needs.
How can you choose between online and offline mode?
If you are not sure about buying an insurance policy online, you need to begin by checking the policy details. There are customer executives available on toll-free numbers who can help you clarify your doubts. You need to get a clear picture before you buy a policy. Undoubtedly, it is very convenient to buy a policy online because of less paperwork, ease in payment and renewal, and higher transparency. No matter what you prefer, it is advisable to identify the correct sum assured amount you need before you go ahead with the purchase. Check out the policy details thoroughly before making a decision.
