Term Insurance Online Vs. Offline

by SMCIB on Wednesday, 12 April 2023

Term Insurance Online Vs. Offline

Let’s start with a small question - what do you do when you need to buy something, say a packet of bread? You may go to your local grocery store or order it online with the help of instant delivery services.

Digitalisation has brought around a massive shift in the buying behaviours of people. From food to movie tickets to electronic gadgets to even insurance - everything has shifted to the online world. You can shop for literally anything from the comfort of your own home.

Online purchases can be summarised in three words - convenient, simple, and effort-saving. On the other hand, offline purchases are more personal and reliable in a way.

So, what option should you choose if you want to buy a term insurance plan? Online or offline? Which one is better? Let’s see!


First, What is Term Insurance?
Everybody wants their loved ones to stay safe and secure in times of emergencies. But what if you pass away and all your financial responsibilities get transferred to the shoulders of your family members? What can you do to prevent that from happening?

Term insurance to the rescue! While you certainly can’t change the tides of fate, you ensure a financial life jacket for your loved ones to help them stay afloat.

A term plan is a simple and affordable product that acts as a financial safety net for your loved ones. If you pass away while the policy is active, your family will get a fixed sum of money called the ‘sum assured’ which can be used to meet all their financial obligations. They will receive the money as per the payout option chosen by you during the policy purchase.

However, since term insurance is a pure risk cover, you won’t get any benefits from the policy, if you survive the policy term.


Term Insurance Online vs. Offline
You can either purchase term insurance online or offline. However, the process and experience might differ, depending on how you choose to buy it. Let’s have a look.

1️⃣ Cost
Buying term insurance online is a cost-effective method. You can get a lower premium from online insurance providers and they may also give you offers or discounts.

On the other hand, buying it offline can be comparatively expensive since it involves an intermediary/agent. And, there will be no discounts or offers. You will be required to pay the premium amount as set by the insurance company.

2️⃣ Convenience
Buying term insurance online is highly convenient. You do not have to visit the insurer’s office physically to get quotes and buy the plan. You can easily compare plans, calculate premiums, and purchase one from the comfort of your home.

If you want to purchase a policy offline, you might have to schedule appointments with insurance agents and physically visit their offices to meet them. This process can be time-consuming and inconvenient.

3️⃣ Claim Settlement
The claim settlement process for both online and offline term insurance is the same. However, the experience of filing the claim and tracking it may differ.

Even if you buy a term policy online, the claim process may still be offline. You will have to submit the forms and documents to the branch office physically - even if certain online claim services are provided by your insurer. To get the claim processed, your family members may have to interact with the branch office.

When it comes to offline insurance providers, you can directly communicate with your insurance agent and get personalised assistance during claim settlement.

4️⃣ Transparency
Buying term insurance online is a quite transparent process as you can easily access every bit of information related to different term insurance plans, premiums, claim settlement processes, etc. on the insurance provider’s app or website - without anybody’s influence.
Buying term insurance offline may sometimes be comparatively ambiguous if the intermediary is sales-driven.

5️⃣ Product Comparison
While buying term insurance online, you can easily compare various plans online from the comfort of your home. You get online comparison tools to compare plans based on various parameters like features, premiums, benefits, etc. You can avail of all the information you need in just a few clicks.

On the other hand, if you plan on buying term insurance offline, you will have to visit various offices of different insurance providers, physically read through all brochures, and make a comparison. This can become tedious and time-consuming.

Both modes of purchase have their own advantages and disadvantages. However, buying a term insurance plan online can be easier and hassle-free as compared to buying it offline. But, the claims process of offline insurance providers might be more personal. At the end of the day, it boils down to your personal preferences and priorities. Make a choice that suits you best.



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