Term Insurance – Buy Online or Offline?

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Buying a term policy is always a good decision. You can either get yourself insured through the aid of an agentor go about purchasing insurance by yourself on your personal computer, which is the online way. However, the debate over buying term insurance online or offline has been around for quite some time now. Before delving into the major influential factors that determine whether to buy term insurance online or offline, it is vital to know and understand the meaning of a term policy.

What Is Term Insurance

A term insurance or term policy is broadly viewedas the most fundamental form of insurance thatacts as financial security to your family/loved ones. The premium is to be paid for the fixed term for which the insurance policy is taken. In case of the policyholder’s death, the sum assured is paid to the nominee.

As term insurance can be bought online and offline, here’s a comparison between the two methods that can help make your decision a lot easier.

What are the benefits of buying a term insurance policy online?

  • Ease of buying: An online term plan can be purchased from the comfort of your own home. It allows you to compare different sets of plans and choose the option best suited for yourself.
  • Flexibility:With an online term plan, there is also a lot more flexibility as you will not require an agent to complete your work. As there are no mediators or agents involved, the overall cost of getting a term insurance policy online will be less in comparison to the offline method.
  • Transparency: A lot of people worry about the security and reliability surrounding the online method while purchasing term insurance. However, you can still go through allthe terms and conditions that are listed online and decide for yourself on the policy that best suits your need. You can also document those terms and conditions for future reference and this transparency eliminates the risk of fraud.
  • Customer support: Despite all the information available online, some people might have a few doubts and raise questions over buying a term policy online. An online term plan offers access to customer support 24/7 with regular updates on the policy.
  • Higher settlement ratio: The settlement ratio is the figure of the company’s reputation in getting the claims settled for the nominee. Online aggregators provide the ratios and they are based on existent customer feedback and reviews, and hence, there are fewer chances of the figures getting manipulated.

What are the advantages of buying term insurance offline?

  • Riderbenefits: Although rider benefits are available in both online and offline plans, while purchasing term insurance online, there are chances that you may not be aware of certain add-ons and miss out on an opportunity to protect yourself against accidental deaths or disabilities. Online insurance plans only cover casualties such as death or accidents when you pay an extra amount along with the premium. These plans do not cover any illness or extra benefits for those who are permanently disabled.
  • No hassle: While buying a term insurance offline, or through an agent, you need not worry about presenting documentation or any legal formalities. The agent will perform most of the work, including the tedious method of filling out forms or applications. All you need to do is provide him with the required information.

Despite knowing the advantages and disadvantages of buying term insurance online, you may still face a dilemma on which method to use while purchasing a term policy. In general, buying term insurance online seems to be the most convenient way to get yourself insured. However, irrespective of the chosen mode, it makes perfect sense that you work out the correct insurance amount that is required before buying a term policy.

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