The current age of consumerism has spoilt people for choice. Whether you are shopping for a pair of pants or buying a home, the more choices you have at hand, the easier it can be to pick the right product. The process is no different for a life insurance plan either. There are various types of life insurance products these days, such as savings insurance plans, term insurance plans, unit-linked insurance plans (ULIPs), etc. Moreover, the choice does not end here. You can also choose to buy insurance policies online or offline. Both methods can have their share of benefits and advantages, some of which have been discussed in this article.
 

Here’s a complete comparative guide between offline and online life insurance plans:
 

What are online life insurance plans?
 

Online life insurance plans are plans that you buy online. There are no middlemen involved, and you deal with the insurance provider yourself. You can select a plan, add riders^*, and make the premium payment on the internet from the comfort of your home.
 

What are offline life insurance plans?
 

Offline life insurance plans are plans that you buy through an agent. In this case, you need to reach out to an insurance agent and select a plan that the agent recommends. The payment is made to the agent who acts as a middleman between you and the insurance company.
 

What are the differences between offline and online life insurance plans?
 

Sr. no.	Point of difference	Online insurance plans	Offline insurance plans
	Cost	When you buy life insurance online, you do not have to deal with any middlemen. You directly pay the company for the plan and riders* you purchase. This reduces the overall costs as the agent charges no service fees. As a result, you only pay for what you purchase and nothing else.	Offline insurance plans are bought through insurance agents, who may charge a service fee or commission for themselves. This increases the cost of insurance for you.
	Security	There have been several incidents of scams where miscreants have posed as insurance agents and duped people of thousands of rupees. However, an online insurance purchase eliminates this risk. Online plans can be bought from the insurance company’s official website. Moreover, you can use the internet to check customer reviews and the insurer’s claim settlement ratio@. This can help build trust in the insurance provider. In case of any issues, you can always hold the insurer accountable.	When you buy a life insurance plan offline, the chances of fraud are increased. It is hard to gauge the authenticity of the insurance agent or the company they represent. Moreover, you have no access to customer feedback. In addition to this, you do not know the insurer’s claim settlement ratio@ or past performance. You must trust the agent’s word.
	Choice	The virtual world offers infinite choices. You can browse through different plans as well as insurance companies. Compare the premium rates, sum assured amounts, riders*, policy tenure, etc., and then select a plan that offers you the most value. You can also choose different options with the Tata AIA policy, such as regular income and regular income with an in-built critical illness benefit. Such flexibility can only be found with online plans.	Insurance agents usually recommend plans to clients. These recommendations can be biased based on several factors, such as personal commissions, affordable  premiums, suitable sum assured amounts, etc. Sometimes agents may push a certain product only to gain more money in the transaction. This limits the number of choices for the purchaser. It is also extremely time-consuming to compare different plans offline. As a result, most people tend to pick the first insurance plan they find.
	Transparency	Online plans offer a lot of transparency. Since you deal with the insurance company yourself, your information always remains safe and secure. Your personal information, identification proofs, payment details, etc., are all securely stored on the insurer’s website. The chances of misuse are practically negligible. Moreover, insurance companies publish annual data, such as their claim settlement ratio@, solvency ratio, financial history, etc., online for customers to review.	Offline plans may lack transparency depending on the company and insurance agent you choose. Some insurers share their annual data with customers. However, many others may not. There is also always a scope of your personal information being misused by the insurance agent.
	Ease	Buying an online plan is simple and straightforward. All features and services are clearly mentioned on the official website. There are videos, brochures, FAQs, etc., to help you understand how the policy works. You can compare plans like a savings plan, ULIP, term plan, money saving plan, etc., and pick the one that is most suited to your requirements.	Offline plans can be a little tedious. You have to meet the insurance agent and submit copies of your documents instead of uploading the same on the internet. Moreover, it can be hard to choose from different plans. In this case, you may have to rely on the insurance agent’s advice.

 

What is the verdict- should you buy life insurance online or offline?
 

 

It is true that online plans can provide you with much more convenience. However, offline plans are not all that bad. Buying an offline insurance plan can be the only option if you do not have an internet connection. Offline plans are also good for people who want the agent to do all the work for them, like submitting documents, filling out application forms, etc. In the case of online plans, this responsibility falls on the customer.
 

Having said that, when it comes to security, affordability, and transparency, online life insurance plans clearly win over offline policies.
 

To sum it up
 

Life insurance plans are essential to secure your financial future and safeguard your family. Hence, no matter which method you choose, make sure that you have a life insurance plan with a reasonable sum assured, premium, and tenure that aligns with your needs.
 

L&C/Advt/2023/Mar/0793