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Online vs Offline Term Insurance - A Comparison

Online vs Offline Term Insurance - A Comparison

Buying term insurance for loved ones is a significant financial decision in everyone’s life. It involves careful selection of sum assured, premium payment tenure, and policy period. Specifically, in terms of mode of purchase, it is important to explore the options of buying online vs offline term insurance.

Know what is difference

Disclaimer :

Max Life Smart Secure Plus Plan. A non-linked non-participating individual pure risk premium life insurance plan| The premium calculated as per Standard premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 years premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan and is rounded off from Rs. 3,27,782 . ~1 Condition for special exit value: Option to receive all premiums paid back at the age of 55 years and post which the life cover also gets terminated. Total premiums paid towards the policy (excl. GST) will be the Special Exit Value payable at the age of 55 years in case the policy holder wishes to completely exit the policy. Benefit available with special exit value -Total premium paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies & modal extra. the total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums exclusive of all applicable taxes, cesses or levies. This value shall be applicable on the base cover premium only and not to additional optional benefits like ACI, Accident cover, Joint life cover and Voluntary Sum Assured Top-Up.

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What is an Online Term Plan?

An online term plan refers to term insurance bought online rather than choosing insurance agents or insurers’ local branch offices for this purchase. At its core, the policy essence remains the same, i.e., it helps safeguard your family financially in your absence.

Online term insurance do not require human intervention (through agents) during the insurance purchase process. However, there are several differences between buying term insurance online vs offline. By considering the benefits of online vs offline insurance, you move a step closer to zeroing in on a plan that is most suitable for you.

Benefits of Online Term Insurance Plans

1. Informed Decision Making

Although the penetration of insurance is quite low in India, more people now prefer to understand term insurance benefits before buying any plan. They look for informative resources online to decide on selecting a term plan with an adequate cover. This increasing level of awareness also empowers them to opt for term insurance online vs offline.

After gaining the required know-how related to buying an online term plan, they choose to buy it on their own. s, and the insurer covers your life for a fixed duration to offer the term insurance benefits.

2. Cost Savings

When people compare term insurance online vs offline, the first thing that they notice is comparatively lower premiums. The reason for the premium reduction is quite clear –

With a clear understanding of what is difference between online and offline insurance policy, a customer buys directly from an insurance company. Since there is no intermediary or agent involved, there is no commission to be paid.

In other words, life insurance companies pass the monetary benefits of direct purchase of term insurance online to their consumers. You should also know that even a small reduction in annual term insurance premiums can make a huge difference when summed up for the entire premium payment tenure.

3. Time Savings

In the rush hours of life, we do not have much time left for things that matter a lot. Our priorities often get shuffled because of various hard-to-deal situations. Many people fail to buy term insurance because they think the purchase process is time-consuming.

Online term plans stand tall as a solution in this aspect. The buying process is quite simple and straightforward, making you save a lot of time buying term insurance online as compared to offline.

At Max Life Insurance, we facilitate our customers with a quick online term insurance purchase. Use our term plan premium calculator to get an estimate.

Offline Term Insurance Plans

Offline term insurance plan purchase refers to buying the plans via local agents or by visiting the nearest branch offices of insurance companies. By opting for this mode, you choose to deal with the agents who can guide you towards selecting the best plans for your needs.

In offline insurance, you get to interact with agents who help you to make an informed decision. This is particularly helpful when the policy buyer is not aware of various terms and benefits of insurance policies.

When the online mode was not available, buying term insurance plans offline was the only option. This can be considered one reason why some people prefer connecting with an agent for their life insurance needs, be it purchase, renewal, or claims.

Benefits of Offline Term Insurance Plans

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1. Helping Hand of Local Agents

When it is about filling term insurance application forms, there are plenty of details to be filled. In case you are not aware of various insurance-related terms, you may find it difficult to do it on your own. With offline term insurance purchase, you can rely on the agent to fill the form on your behalf and the specifications or benefits you choose.

Since the agents are experienced in helping their clients with application filing, they also know well about the mistakes people make. Relying on them also helps in avoiding such mistakes. Furthermore, you should make sure you provide accurate information and be transparent while applying for term insurance.

Also Read: What Are the Documents Required for Term Plan?

2. Selection of Right Sum Assured

Sum assured selection is one of the most significant aspects people consider while thinking about buying term insurance online vs offline. Some of the most common choices of sum assured are Rs. 50 Lakhs, Rs. 1 crore, or Rs. 2 crores. Since term insurance plans are easily available at lower premiums, some people find it confusing to make the final decision.

Buying term insurance offline helps in this regard. The insurance agents will help you make the right selection based on your needs. You can also ask them questions related to the sum assured choice.

3. Quick Access to Customer Support

For an individual who is not tech-savvy, visiting local branch offices of insurers or calling the agents for queries seems like an easy task. They need not worry about raising a ticket for customer support services or wait for the executives to respond.

Offline term insurance purchase necessitates quick meetings with the agents, which help resolve your queries in less time, be it of nominee change, premium payment, policy benefits, or claim settlement ratio.

Online Vs Offline Term Insurance Purchase – Which One is Better?

As explained above, term plans are available online as well as offline. The availability of these two modes makes many people confused about buying term insurance online vs offline. Given below are certain pointers that can help clarify such doubts:

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1. Cost

Online vs offline insurance comparison explains that online term plans are lower in cost than buying the same plan offline. If the premium cost is a concern for you, you should buy term plans online. Also, make sure you look into the fine print of the policies and avoid making the decision based only on price factor.

2. Insurance Product Understanding

The decision to choose between term insurance online vs offline also depends on an individual’s understanding of the product. While some people find it easier to research about term insurance online, others prefer asking a local agent they rely on. Since a term insurance plan can be bought in any of these two ways, it is up to you to decide which way you would like to choose.

The recent India Protection Quotient 6.0 survey conducted jointly by Max Life Insurance and Kantar recorded an increase in the Knowledge Index of Indians regarding life insurance. In IPQ 6.0 the Knowledge Index was recorded as 61 a 4 points increase from the earlier 57 in IPQ 5.0. This can potentially emerge as a key driver for online and offline term insurance purchase in the coming years.

3. Complexities Involved in the Purchase Process

Buying term insurance online vs offline is quite easy and takes less time to fill the application. You can easily get a quote online, fill the form by entering the required details, and pay a premium to buy the policy.

Why Should You Buy Term Plan Online?

In the contemporary world backed by Internet usage, it is a no-brainer that you should buy a term plan online. There are many reasons to support that decision.

Ease of comparing policies
Simplified process to buy term insurance
Lower premium
Availability of multiple payment modes

Things to Look for While Purchasing a Term Plan

Term plan premium is not the only factor you should consider while deciding to buy term insurance online vs offline. You should also consider:

Insurer’s reputation
Insurer’s claim settlement ratio
Insurer’s claim settlement ratio

FAQs

ARN NO: Oct22/Bg/12P

Sources:

Disclaimer: **Healthy non-smoking male, 24 years, 2 cr cover,25 years policy term,25 year premium payment term, exclusive pf GST for Max Life Smart Total Elite Protection Term Plan (UIN:104N125V02)

*^Savings mentioned are indicative of the maximum premium difference when the same plan/variant is bought offline

Online vs Offline Term Insurance - A Comparison

Insure your future, start now.

What is an Online Term Plan?