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Online Vs. Offline Term Insurance Purchase - Which Is Better?

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Online Vs. Offline Term Insurance Purchase - Which Is Better?
September 21, 2022

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As a responsible adult, you want to look after your family and their finances. A term plan allows you to safeguard your family’s financial future in your absence. Several term plans are available in the market, and you can choose to purchase the policy online or offline. Before you buy a plan, you must understand whether you should opt for online vs offline term insurance. Let’s explore both options to help you make a decision.

What is Online Term Insurance?

Online term insurance allows you to purchase your policy directly from the insurer through a digital platform. You do not have to deal with third-party agents during the process. Instead, you can buy the plan from the insurance company’s website or mobile application.

Benefits of Online Term Insurance

  • Informed Decisions

    When you look for a plan online, you can quickly do some researches to better understand the policy. You can check whether the plan offers adequate coverage for your needs and even compare plans to see whether some offer better riders or add-ons than others. Online term policies allow you to browse multiple plans before you find the best one for your needs.

  • Lower Cost

    If you compare the premiums of online vs offline term insurance, you might notice that online policies have lower premiums. Since you buy an online policy directly from the insurance company, you do not have to worry about third-party agent costs. When you buy insurance offline through an agent, your premium increases to help cover the agent’s fee.

  • Saves Time

    You can purchase an term insurance plan within a few minutes from the comfort of your home. Online plans help you save precious time by minimising your paperwork and allowing you to pay online. The moment the company receives your first premium payment, they issue a soft copy of the policy. The entire process should not take more than five or ten minutes.

What is Offline Term Insurance?

Some individuals prefer to manage their finances face-to-face. They may purchase term plans offline through an agent or by visiting the insurance company’s branch or office. When you choose offline insurance, you contact individuals who are knowledgeable about the market and can help you identify the ideal policy for your needs.

Benefits of Offline Term Insurance

  • Professional Help

    Not everybody understands how a term plan benefits them or their families. Agents can explain the importance of a term plan and help you identify the best plan for your requirements. Additionally, they help you fill out your application form, ensuring you don’t miss any crucial details.

  • Picking the Right Sum Assured

    Many purchase term plans with very high sum assured amounts since they can afford the premiums. However, unnecessarily high life coverage only increases your premium payments. When you purchase your term policy offline, an agent will help you understand what kind of coverage you must select.

  • Easy Customer Support

    Purchasing term plans offline provides direct access to agents and customer support officials. You do not have to worry about raising a ticket online or waiting for executives to get back to you. Instead, you can contact your agent and quickly address your issue.

What Should You Choose – Online Vs. Offline Term Insurance?

  • Cost

    First things first – terms plans are about costs and saving for the future. Online policies are cheaper than offline ones, making them the clear winner. Of course, you should never purchase a policy simply because it’s more affordable. Always check the fine print and make an informed decision.

  • Understanding of the Product

    If you have adequate knowledge about term plans, you can purchase a policy online. However, if you aren’t really aware of how these policies benefit you or what you need to choose, the offline approach might suit you better. You should choose between an online or offline policy based on your understanding of these policies.

  • Purchasing Complexities

    When you buy a term policy online, you have to fill out an online application and submit minimal paperwork. Online forms alert you in case you miss filling in any crucial information. They make it easy for you to complete the paperwork and submit your documents quickly. The offline process, on the other hand, might take more time. You have to fill up a physical form and submit it. If you miss crucial information the first time, you might have to go through the process again.

Why Should You Buy Term Policies Online?

In today’s digital world, online term plans allow you to:

  • Quickly compare policies online
  • Complete the application online within minutes
  • Enjoy lower premiums as compared to offline policies
  • Pay through multiple online modes, facilitating quick payments

What Should You Look for While Purchasing Term Insurance?

After deciding to buy your plan online or offline, you also need to think about the following factors before making a payment:

  • The insurance company’s reputation
  • The insurer’s claim settlement ratio
  • The availability of customer support services

Irrespective of whether you purchase term plans online or offline, you must identify the ideal policy for your financial needs. Ensure you check the insurance company’s reputation in the market and their claims paid ratio before selecting a policy. While browsing for plans, try to find policies that offer additional riders and benefits to enhance your coverage.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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