Why Should You Choose Term Plan Online over Offline
Neil bought a book online, shut his laptop down, and whispered, “This is much convenient, else it would have taken a couple of hours all the way visiting the book store and get it”. Trisha, Neil’s wife, who was listening to him, responded- “Don’t shut the laptop, we have much more to buy, even a life insurance policy”. Neil, however, was convinced with the online book purchase, was not sure whether to buy an online term insurance plan or an offline one. Seeing him confused, Trisha understood his dilemma and started convincing him how term plan online is beneficial. Here is how she explained-
The Internet is a tool that allows you to complete your desired task within minimal time. It has enabled the way of getting information related to the product or service you are looking for at just a single click. Taking advantage of this, you can sit on your chair, roll your mouse pointer over several sites, and compare different insurance products. Today, you can get exact quotes of different term life insurance plans that you have shortlisted, and choose the best suitable one. Furthermore, comparative analysis can also be done based on premiums, the sum assured, tenure, and other benefits.
The term plan online is purchased directly through the website, where there is no insurance executive to explain to you how to calculate the premium in person. This is where term insurance premium calculators come into the picture. You can get different quotes for a specific plan by changing the sum assured and the tenure. The calculator analyses the information you have provided and shows the best suitable quote. Traditionally, the agent may feel heckled up if you come up with N number of queries. Agents bring in the limitation of efforts, timings & combinations. While, in online term insurance, don’t feel bored even if you check the premium combinations multiple times a day or 24/7.
Fraud of Mis-selling of Product
Traditionally, buying any life insurance, even if it is a term plan, needs an agent through whom we can understand the nitty-gritty of the plan. However, there might be a few possibilities of misselling the product by the agent/broker, intentionally or unintentionally.Agents may push particular policiesto fulfill their own interests and later retract from any promises made in the past. While buying a term plan online, there is no agent/broker,and you are the decision-maker by analyzing the facts. In such a case, you can buy the product if and only if you are convinced.The insurer cannot deviate from the product features as they are regulated directly by IRDAI, and displayed on the aggregator/insurers’ websites.
Premiums and Sum Assured
Term plans online often come with lesser premiums than offline plans. This is beneficial as you get the same sum assured with a comparatively lower cost. Several costs are associated with offline processing such as document handling, paperwork, brokerage charges, etc. term plan online not only comes with the lower premiums but it is the same tax-saving insurance plan that helps you avail benefits under Section 80C and Section 10(10D) of the Income Tax Act of India, 1961. It is often seen that online term insurance plans are 30-70% less expensive than offline policies.
Claim Settlement Ratio
The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for all insurance companies to disclose the claim settlement ratio on their website. IRDA also showcases the same data. By determining the claim settlement ratio for different insurers, you can choose the best suitable one for you.
Term plans online come with greater flexibility, such as you can pay premiums using your credit/debit card or even using netbanking credentials. Not just purchases, but policy renewals are also done online. Here, you don’t need to carry a bunch of cash in your pocket. Furthermore, cash outflows from your account can be deferred along with availing several discounts by using credit cards.
Similarly, choosing a suitable rider, choosing the premium payment term, and keeping track of all the transactions becomes easier when compared to offline plans. Not just online plans, but term insurance overall comes with greater flexibility of converting into any other life insurance plan without undergoing any medical test.
“Well, if this is the case, we must get our term life insurance online!” said Neil. Trisha continued the sentence, “Of course, because, sabse pehle life insurance, that too online! Books and all can come later”. Neil nodded and opened his laptop again.