Are Online Term Policy Services Better?

Nov 03, 2017 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

If you are wondering how will you secure your family’s future, then buying a term insurance will be a good choice today. Thanks to the combination of low premiums and long life coverage, a term policy is what you need to invest your monies in to make sure your family is well looked after in case of an unforeseen event.

Earlier, a term insurance policy could only be purchased from an insurance agent. However, today you can buy a term plan online. Apart from being affordable, buying a policy online gives you more transparency and also saves time.

If you are still wondering whether it’s the right thing to do, here are seven reasons that will convince you to buy a term policy online:

Are Online Term Policy Services Better?

Low price

A term insurance policy that is purchased online is cheaper than an offline one. The price difference may range between 30 percent to 50 percent. This difference in price between the two is mainly because, in an offline policy, your agent charges you a high commission for his services like activating the policy, collecting premiums, coordinating your medical check-ups, servicing your policy, and much more. On the other hand, an online term plan allows you to do all of this online and from anywhere. Therefore, you save on the commission you would otherwise have to pay an agent.

Accurate information

Quite often while buying a term policy from an agent, you may not read the fine print, trusting your agent. However, many-a-times, agents do not disclose all the terms and conditions of the policy. On the contrary, when you buy term insurance online, all policy details are available in the product brochure, which ensures complete transparency.

Policy comparison

One of the major benefits of buying a term plan online is that you can compare the prices and benefits of different insurance companies. This is more complicated when buying insurance from an agent; thus, leaving you with little or no choice.

Flexibility

Buying a term plan online provides you with the flexibility of buying it while sitting in the comfort of your home. No fixing appointments with agents or follow-ups are needed here. Also, the payment towards the policy may be made only after you are convinced with the terms and conditions that you read online. Apart from this, the policy document is delivered to your home and all your premiums and renewals are paid online.

Claims and settlements

While purchasing a term plan online, you instantly get an idea of the claim settlement ratio of different insurers. This gives you a clearer idea of which policy to buy. In the case of an offline policy, there is a high chance that the agent will mislead you with respect to the claim settlement ratio.

Direct interaction with the insurer

While buying term insurance online, you may easily compare policies from online aggregators and then go directly to the company’s website to purchase the policy. This ensures that you engage with the brand directly, thus leading to lesser chances of any kind of fraud. On the other hand, in the case of an offline insurance policy, you interact with the agent and not the brand directly. Therefore, there is a high chance of the agent making false claims in order to upsell a policy.

So, the next time you’re looking to buy a term insurance plan, remember that a flexible, hassle-free and cost-effective plan is just a few clicks away—even closer than your agent.


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