Term Insurance – Offline vs Online


Term insurance is one of the most attractiveforms of life insurance policy, as it offers high life coverage at pocket-friendly premiums. With the help of a terminsurance plan, you can secure the financial future of your family in case of your untimely absence. The advent of technology has allowed people to buy products online from the comforts of their homes. Similarly, purchasing a term life insuranceplan online has gained momentum, as the younger generation is tech-savvy. Investing in a term plan through digital means is quite easy, as it saves you from the tedious paperwork.

Advantages of buying a term plan online 

Here are a few reasons as to why buying a term policy online is more beneficial than the offline method of purchase.

  • Cost-effective

Purchasing a term plan through the Web can help you save a significant sum when compared to the offline method. It is because many insurers provide amazing discounts and offers on the purchase of online term plans. You can expect a difference of 30 to 50 percent when compared to investing in a term plan through the offline route. The primary reason behind the affordability of buying an online term insurance policy is that the insurer sells the policy directly to you.Therefore, this allows the insurance company to save on the agent’s commission. This cut in the agent’scosthelps you to get a term plan at a budget-friendly premium.

  • Convenience

Shopping online is much more convenient in comparison to visiting the insurance provider’s office, especially in today’s times, when social distancing has become the new world order. You can buy term insurance plans via online mode. One of the major advantages of buying an online term plan is that you can compare the features, premiums, and benefitsof various policies easily. This makes it simpler for you to purchase the policy that suits your requirements. By buying a term plan online, you eliminate the hassles of waiting in a queue at the insurer’s branch office, taking appointments of insurance agents, or undergoing the cumbersome paperwork.

  • Transparency

Buying a term policy online allows you to check its terms and conditions. You can get all the necessary details about the company on its website. Besides this, you can read the reviews ofcustomers about their experience of dealing with the company. One of the best advantages of buying a term plan online is that you are having a one-on-one conversation with the insurer.This ensures transparency, which enables you to build trust in the insurer. Conversely, insurance agents are involved when you are buying a policy offline, which can reduce the transparency.

  • 24X7 Customer Care

One of the added benefits of investing in a term plan online is that you have 24X7 access to customer support. You can go through the frequentlyasked questions (FAQs) on the insurer’s website to get rid of all your doubts. Besides this, you can speak with a customer service representative on the helpline number.

  • Claim Settlement Ratio (CSR)

The CSR refers to the number of claims that the insurer has settled from the number of claims received by them in a year. It is denoted in percentage form. It is essential to check the CSR of an insurer before buying a term insurance plan from them. You can find out about the insurer’s CSR on the website of the Insurance Regulatory and Development Authority of India (IRDAI). Doing this lets you select an ideal insurer out of the numerous options available in the market.

So, these points indicate that buying a term plan online has various advantages over the traditional method. Many people buy term insurance plans in India just for the sake of it. However, it is vital to ascertain the sum assured based on your financial goals and expenses. The sum assured should be able to secure the financial future of your family members by taking care of all their monetary needs in your absence.

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