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Human life does not come with a guarantee. Therefore, it is advisable to secure the financial future of your loved ones.
If you are considering purchasing a life insurance policy, then investing in a term insurance plan is an ideal option. If you have no idea about the term plan meaning, then read on.
A term plan is one of the most popular life insurance policies. It provides life cover to the policyholder for a specific duration. If the policyholder passes away during this tenure, the insurer pays the sum assured to his or her family members. A term plan provides a high sum assured at an affordable premium.
You can buy a term plan online and via the conventional way of purchasing it from your insurance agent.
Let us compare which one out of the two modes is more beneficial based on various aspects.
Cost-Effective
When compared to the offline option, purchasing a term plan online is more economical, as it comes at a lower premium. Online term plans are nearly 30-50 percent cheaper than the traditional method of buying them offline.
It is because you are directly purchasing the plan from the insurer. So, the commission of the insurance agent does not come into the picture.
Also, due to the intense competition online, many insurers offer various deals and discounts that can help you find a term plan with lower premiums. Therefore, online term plans have nominal premiums.
Convenience
When you buy a term plan online, you do not have to go through the hassles of taking the appointment of the insurance agent or visiting the insurer’s office.
However, when you purchase through the offline route, you may have to manage time to meet your agent. Moreover, when you go to the insurer’s office, you will have to wait for your turn to come, as there are many other policyholders like you.
Thus, investing in a term plan through digital means is easier and flexible. You can do it from the comfort of your home.
Transparency
When you buy term insurance plans online, it becomes simpler to compare the features, benefits, sum assured, and premium of various policies. It is not possible when you do it offline.
Here, you will have to depend on the insurance agent for all the information about a particular plan. Therefore, the online option ensures transparency. You can make a wise decision and prevent the chances of making any mistakes while buying a term plan.
Moreover, you can use a term plan calculator to get an idea about the premium you need to pay for a particular sum assured within a couple of minutes.
Customer Care
When you buy a term policy online, you can get 24/7 customer care support if you have any doubts about the policy. Today, insurers have embraced technology.
Their state-of-the-art websites have chatbots and live agents that can help you solve any query about the policy within minutes.
However, if you buy term plans offline, you will have to be dependent on your insurance agent.
Claim Settlement Ratio (CSR)
When you buy a term plan online, you can quickly check the CSR of a particular insurer. You can log on to the Insurance Regulatory and Development Authority of India (IRDAI) website and search for the CSR chart of insurance companies.
Buying term plans offline is a good option as you trust your insurance agent. However, this mode is slow and more expensive. You need to be on the move to invest in term insurance through the traditional route.
However, when you are investing in term plans online, you exactly know what you are buying, instead of being dependent on your agent.
Thus, an online term plan scores over an offline one. You can consider using a term plan calculator and search for a policy that suits your family’s financial aspirations and requirements.
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