Offline vs. Online Insurance Plans: Which is Better?

Dec 12, 2017 | 11 months ago | Read Time: 3 minutes | By iKnowledge Team

Today we live in a digital age, where everything is available at our fingertips and insurance is no exception. A number of policy seekers are turning online for their insurance needs. Although the last few years have seen a rise in the number of online insurance buyers, a lot of people still have their doubts about buying a policy online. If you too are wondering whether to buy insurance online or offline, this is for you:

Offline vs. Online Insurance Plans: Which is Better?

  • Value for money

Online policies generally cost less since there is no middleman involved. Therefore, companies are able to provide you online insurance policies at reduced prices. Apart from this, you too save on commissions you may otherwise pay an agent. If you look at the bigger picture, an online insurance plan is about 30 percent to 50 percent cheaper than an offline one. Therefore, buying an insurance plan online ensures complete value for money.

  • Disclosure of facts

When you buy insurance offline, you are mostly dependent on your agent with regards to the terms and conditions and important policy information. It may happen that the agent does not thoroughly update you regarding the policies. However, when you buy an insurance policy online, there is no intermediary involved. This means that you need to thoroughly read the fine print of the policy, which in turn keeps you well informed of what you are about to invest in.

  • Claim settlement ratio

Having access to information on an insurance provider’s claim settlement ratio is helpful as it gives you a clearer idea of how smooth your claim process might be. When you buy insurance online, you have easy access to the company’s claim settlement ratio. On the other hand, when you buy offline insurance, there is a high possibility of the agent tweaking this information in favour of the insurance company.

  • Being able to compare

One of the best ways to compare online insurance is with the help of an aggregator. This is a tool that compiles information regarding different policies, their costs, their premiums, and benefits and presents it to you under one portal. This makes your online insurance selection process much easier, as you are able to compare different policies. However, when you buy insurance offline, the information you have is limited to only what your agent tells you.

  • Flexibility

Buying insurance online is one of the most flexible processes as you are able to do so from any corner of the world and at any time of the day. All you need for this is access to the Internet. On the other hand, offline plans do not offer you this flexibility. 

  • Interacting with the insurer

Purchasing an insurance plan online allows you to interact with the insurer directly. From live customer assistance chat tabs to regular updates on your policy premiums and renewal, the whole process of buying insurance online is interactive. You also have access to the insurance provider at any time of the day. However, with regards to offline policies, the agent may be unreachable at times.

  • Less frauds

Buying an insurance policy online eliminates the chances of a fraud, because you directly get it from the company. In offline, there is no such certainty due to the possibility of being given bad information or a third party submitting incorrect information.

  • Documentation

The best part of buying insurance online is that the whole process is paperless. So, you do not have to worry about safeguarding your documents in fear of losing them as all your policy details are available online. 

  • Customer reviews

Word of mouth is the best form of advertising. This especially holds true in the case of online insurance policies, where you have access to varied customer reviews about different policies. However, when you buy an offline policy, all you have to rely on is the agent’s word.

Buying an insurance online is hassle-free, wherein you get all your policy related queries solved while on the go and even get authentic information. That’s why, when you it comes to securing the future of your loved ones, online is the way to go.

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