Offline vs. Online Term Plan: Which One You Must Choose

Choosing the right term insurance plan is not child’s play. If the dimension of online versus offline is added to the discussion, finding answers becomes an entirely complicated process. To arrive at a conclusion, it is required that we assess term plans based on certain insurance criteria.

Both offline and online term plans have their pros and cons. Knowing the merits, demerits, and distinct characteristics of these plans could make it easier for you to make the right choice.

 

What is Term Insurance

A term insurance plan is a life insurance product that generates a fixed sum for the policy for a specific “term”. That’s about it! However, if you thought buying a term insurance plan offline will be the same as buying online term insurance, you are in for a surprise!

Starting with the basics

An offline term insurance plan is one in which the insurer is physically present, and the involvement of an insurance agent can be expected. It can take place at an insurance branch office or the policy buyer’s home. Some might deem this process time-consuming, while others may think of it as a more reliable method.

On the other hand, online insurance allows anyone to buy term plans online directly from an insurance company. To purchase term plan, you can refer to our term life insurance buying guide. In other words, we can say that there is no involvement of a third party, and you can save additional costs. In the present time, a rapid shift has been observed from buying offline term insurance plans to online term plans. Several reasons can be summed up to answer your question. 

 

Choosing the Right Option

Now that we have a clear idea of what offline and online plans are, the next step is to take a closer look at how these plans are different and how they suit the different sections of our society. 

 

Criteria	Online Term Insurance plan	Offline Term Insurance plan
Difficulty level	It is easier to go through various plans and make a purchase on your own.	It is a tedious task and can take up more time and effort than online term plans.
Privacy	It offers greater privacy as the facts are documented by the buyer.	Lower privacy, since the agent fills in the buyer’s personal details on behalf of the buyer.
Sum assured	The sum assured ranges from ₹5 Lakh to ₹5 crores, but the only difference lies in the premium costs. Online terms plans offer the sum at lower premium costs.	The sum assured ranges from ₹5 Lakh to ₹5 crores. Offline term insurance plans offer the sum assured at higher premium costs because a certain percentage goes to the broker every time a premium is paid.
Cost	Online term plans are cheaper and involve no brokerage.	Offline term insurance plans are expensive as they need the buyers to pay insurance premiums, agent brokerage, commission, etc.
Independence	The buyer is independent to take any action and perform any movement.	From the preliminary stage till the end, everything is taken care of by the insurance agent.
Extra benefits	The buyer only gets the death benefit. They can avail of other benefits if they choose to purchase the riders1 too.	You can avail larger benefits like disability benefit, critical health benefit, and death benefit.
Duration	It is time-saving and flexible.	Buying an offline term insurance plan is often more time-consuming.
Being aware of the information	You could browse various websites and reviews to know more about your term plan. It gives you flexibility and a greater pool of information to dive into.	The buyer has no option but to place their faith in the agent’s recommendations.
Customer Support	The insurance company has a designated call center that is required to be contacted for customer support.	The insurance agent, who helps the buyer throughout, also acts as the chief mode of customer support.
Physical Presence	If you buy insurance online, you may be handled by a new representative every time, as there is no fixed contact person.	Your insurance agent or broker will be your point of contact, who will also help you understand the plan at your pace.
Claim Settlement	The online process involves filling and submitting the form online, and you will be contacted by the insurance company.	You can just call your insurance agent, and he will take care of it.

 

This tabular representation provides us with comprehensive details of both types of plans and helps us analyze them based on relevant criteria.

 

If you are looking for an online term plan, you could also check out the Tata AIA term plan online.

 

The Key Takeaway

So, what is the right choice, online or offline? If you are still not sure, the following section will help clear your doubts. Nowadays, buying term insurance plans in India is not a difficult choice anymore. People are shifting from offline to online, and here are some reasons why we think it is wise to buy term plans online.

Cost-Effective

Since there is no involvement of an insurance agent or mediator, the overall cost of buying a term plan online reduces dramatically, especially compared to an offline term plan.

Claim Settlement Ratio 

Since the figures presented online are hard to manipulate (they have to be backed by reviews and customer verifies), the claim settlement figures can be trusted. On the contrary, offline claim numbers can be rigged.

Zero Chances of a Fraud

An online platform gives you the power to explore the terms and conditions of a scheme, its rules, and underlying information in-depth at your convenience. That means the chances of falling prey to fraud are low when you buy a plan online.

Helps You Make the Right Choice

Purchasing an online term plan enables you to compare, scrutinize, and choose the appropriate insurance coverage from the comfort of your home, without any time limitations. This way, if you are doubtful about your choice, you can always research and get answers to all your questions. 

 

Final word

Despite the various benefits you have seen above that favor online insurance purchases, there is no one-size-fits-all approach here. But the consensus is that buying your life insurance policy online would be much less of a chore. However, if you are not comfortable with the entire procedure being online, you could always opt for the offline models.

L&C/Advt/2021/Jun/1012