Partly due to the COVID-19 pandemic and owing to other reasons as well, there has been a rise in the usage of digital procedures. From children to senior citizens, many people are now waking up to the benefits of online processes. Buying things online has now become commonplace. The life insurance industry, too, has seen an increase in the number of policies bought online. Despite the popularity of online term insurance, many people are still sceptical about whether they should continue with the traditional route or opt to buy term insurance digitally. Let’s understand the benefits of online vs offline term insurance, to get a better look.
What is term insurance?
A brief understanding of term insurance is vital before moving ahead. Term insurance is a kind of insurance policy that provides life coverage to the policyholder for a particular duration. If the policyholder passes away during this period, the person/s he has chosen as the beneficiary receives the sum assured of their term policy. This helps the policyholder achieve better peace of mind during their lifetime and assures them that their loved ones will get to live a life of financial well-being even when they are no longer around.
Understanding online term insurance and its benefits
Online term insurance refers to an insurance policy or the process of buying the term insurance policy digitally. Instead of physically visiting the branch or dealing through an insurance agent, one rather logs on to a website and buys the insurance policy online. The information required is entered digitally, and the payment is done through a safe portal.
Benefits of online term insurance
- Lower premiums – One of the best benefits of online term insurance is that one has to pay lower premiums than what one has to pay after an offline purchase. This is largely because of the low costs that the insurer incurs when they sell insurance online due to the lack of involvement of any middlemen, insurance agents, or brokers. One can also use a term plan premium calculator to get an idea of the premium for different plans.
- Convenient and time-saving – One can buy a term insurance policy online while at their home, their office, a cafe, or any place where one can access a decent internet connection. This is very convenient for time-strapped individuals, who do not have to make trips to the insurance branch or agent’s office.
- Better decision-making – When you buy term insurance online, there are a dozen tools and resources at your disposal to help you reach a wise, well-informed decision. For instance, you can use the term plan premium calculator, which gives an estimate of the premium based on certain variables you enter, right from the website they are buying. Other tools, such as the Human Value Life calculator, can also be of great help. You can also compare different plans based on their coverage, benefits, premium, and so on.
Understanding offline term insurance and its benefits
Offline term insurance refers to the process of buying term insurance from an insurance agent, or at a branch. This is the traditional way of buying insurance and is still largely preferred by many.
Benefits of buying term insurance offline
- The benefit of personal touch – When one goes to an insurance branch or approaches an agent to buy insurance, they are more likely to get a more suitable term insurance policy. As compared to buying online, the offline process has a personal touch, which can make a big difference, especially when one is buying insurance for the first time. The agent or the officer will personally assist you and help you understand the various nuances of term insurance.
- Suitable for all types of people – Buying insurance offline is suitable for all kinds of people. Online procedures may not serve those who are not inclined toward digital processes. Some may even have issues with making online payments for their own reasons. These individuals can opt to buy insurance the conventional way.
As can be observed, each mode of buying term insurance has its benefits. Which one would be preferable for you depends on your subjective needs. If an affordable policy and a time-saving process are a priority to you, then the online method would be the wise option. However, if a nuanced understanding of insurance and personal touch are more important for you, then the offline way would be the better route.
Now that you are aware of the benefits of online vs offline term insurance, use the knowledge to make the right decision!
