July 15, 2024

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Online vs Offline Term Insurance – Which is the Better Option to Buy

Term insurance is one of the most popular insurance plans in India. The affordable premiums and high cover make them the most preferred choice of insurance among Indian buyers. Having term insurance not only provides you with protection against the risks but also gives you peace

of mind that your family is financially secured in case of your untimely death.

You can buy term insurance both offline as well as online. There is a slight difference in the cost of buying the term insurance plan depending on you choose. If you are confused to buy the term insurance plan online or offline, here is a detailed comparison that will help you make the right decision.

  1. Premium

When you buy insurance, the premium tends to be higher than if you buy the same policy online. This is because, when you buy online, the process is automated, and there is no operational cost involved.

  1. Claim Settlement Ratio (CSR)

It is not necessary for insurance companies to disclose the claim settlement ratio of online term plans. The claim settlement ratio provided by insurance companies to the Insurance and Regulatory Development Authority (IRDA) is a compilation of both online as well as offline claims. When you buy online, you can know the CSR of the insurer, which will help you make the final buying decision.

  1. Coverage

There are various companies offering term plans, and each one provides a different premium. The online plans generally do not cover accidental death, chronical illness and permanent disability benefit. Insurance plans available offline cover deaths and permanent disability benefit.

  1. Settlement Process

In case of offline plan, the agent or the broker is responsible for claiming settlement. Whereas in case of online method, the nominee has to himself request for the settlement amount. This can be done by getting in touch with the insurance company through email or call. The online process is easy and quick, and there are zero dependencies on the broker.

  1. Commission

Offline plans come at a relatively higher rate than the online plans. This is because online plans don’t involve any agent as it connects you directly to the insurance company. Hence, the cost of the commission paid to the agents is saved.

  1. Convenience

Offline buying is a lengthy and time-consuming process as it involves coordinating with the agent and standing in queues. Online buying excludes all the hassle of waiting for agents and other procedures.

  1. Transparency

Online platform for buying insurance policy allows you to browse through different options available and compare them before deciding. This provides total transparency and reduces the chances of errors. In offline buying, clarity depends on how efficiently your agent delivers the details of the policy to you.

  1. Customer support

One of the major features of online purchase of a policy that is not available on buying a plan offline is 24×7 customer support. The online platform provides you with various facilities like live chat tabs, regular updates on your term insurance policy status, toll-free telephonic customer service and more. All these services are not available if you buy a plan offline.

Buying a term insurance plan is a crucial step as it is a significant investment. It is necessary to have a convenient experience while buying it. Weigh the benefits and disadvantages of both the online as well as offline platforms and then decide the one that suits you best.