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

24-June-2021 |

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. 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 lakhs 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 lakhs 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

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Disclaimer
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • 1Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.