Term insurance is a simple and pure kind of life insurance policy that offers substantial life cover at pocket-friendly premiums. It insurers the life of the policyholder and provides much-needed financial protection to his or her family in case he or she dies during the policy period.
Term insurance plans ensure a solid foundation for your financial portfolio, and if you do not want your family to suffer from monetary hardships, it is advisable to invest in a policy as early as possible.
You can buy a term plan via the traditional approach or offline method through an insurance agent or by visiting the insurer’s branch office. Conversely, you have the facility of investing in a term plan through digital means. Due to the widespread of Coronavirus (COVID-19) pandemic, which led to a nationwide lockdown along with the imposition of social-distancing norms, there was a steep rise in the demand for online term plans.
COVID-19 has made people realize the importance of having an insurance plan. As term plans offer high sum assured at an economical rate, they are among the most favored policies. If you are looking forward to buying a policy, but are unsure whether to purchase it online or offline, then you need to understand the benefits of both modes.
Plus points of buying a term plan online
One of the core advantages of buying online term insurance is that this route will provide better transparency. Here, you can easily compare the features, prices, and the term insurance age limit of various plans offered by different insurers. With this, you can get the best rates.
Additionally, you can get a term plan at a cheaper cost compared to offline channels, as you are dealing directly with the insurance company. So, you save considerably on the agent’s commission. Online term plans are approximately 20% cheaper than purchasing them offline.
Convenience is another factor that influences the sales of online term plans. You can purchase it from the comfort of your home. So, buying online term insurance saves your valuable time, as you need not commute in traffic to visit the insurer’s office and wait for your turn to meet the agent.
Benefits of purchasing a term policy offline
You may want to buy a term insurance plan offline because you trust your insurance advisor. He or she may have a better understanding of your needs. The agent may know about your financial position and can help you learn about the different aspects related to your policy. He or she may advise you on the plans that you can select. Moreover, in the offline method, the agent can initiate the death benefit claim on behalf of your family in case of an untoward event. Investing in a term plan through the offline method is ideal if you and your family members do not have much knowledge about the procedure involved to file a claim. Here, the agent does the needful. This facility is not available if you buy a term plan online.
Which mode should you select?
If you need any assistance, it is better to purchase the policy from the insurance agent, as you cannot take a risk of the claim being rejected. However, if you and your family members are well-versed with the features and claim settlement process, it is advisable to purchase the policy online, as you can save a significant sum on the premium. Both the methods have their pros and cons. Therefore, it depends on your perception and needs. Buy a term plan from the mode that suits you the best.