Buying an insurance plan is an important decision that should not be entered into lightly. When buying your insurance it is important that in addition to choosing the most suitable policy, you also use the ideal method of purchase. While traditional offline purchases may seem reliable because they have been tried and tested, many companies have introduced attractive plans on the online platform that will give you much greater benefits.
When purchasing a policy however, it is important that you consider both the risks and benefits inherent in any plan. The following comparison will help you to choose the right method while buying an insurance plan.
- Premiums:
The premium offered in online insurance plans is lower than the premium offered in offline plans. Cost should not be the only criteria to pick a plan. Ensure that you read the terms and conditions, and all the fine print before opting for a policy. In some cases, the premium increases after the medical tests are done. Check all the conditions before you commit to any plan.
- Claim Settlement Ratio:
Insurance companies do not need to disclose the claim settlement ratios of online plans. The ratio which they give to the Insurance and Regulatory Development Authority (IRDA) is a combination of both online and offline claims. Unlike offline plans, there is no clarity on the claim settlement for online plans.
- Claim Settlement:
In an online term plan, a nominee claims for the settlement amount if the policyholder dies, while in an offline plan, this is done by the agent or the broker. In online plans, the nominee will have to get in touch with the company directly, through calls or other means for claims. Managing such responsibility can be challenging when you are already coping with an unfortunate event. In offline plans however, the agent takes care of settling the claim. The agent becomes the first underwriter. He is knowledgeable and helps in faster settlements. On the other hand, if you miss minor details while filling the online form then it may cause problems at the time of settlement.
- Check the Conditions:
The premium in different online plans can vary considerably, especially in the case of term plans offered by different insurers. The premium is decided on factors such as mortality rates, marketing costs, and medical tests, among others. The best online insurance plans offer a cover more than INR 50 lakhs. However, most of these term plans do not cover accidental death, critical illness, or Permanent Disability Benefit (PDB). Read the plan carefully before selecting one. Do not just consider the cost of the plan.
Do not get taken up with any single benefit, but consider the various features of the plans. It is also important that cost is not the only determinant, as in some cases offline plans may be more beneficial, despite the higher premiums. Only buy the online insurance plan once you are completely sure of your choice.
Know more about online insurance plans at 5 Paisa Insurance.
Disclaimer: It is sponsored post.
