The digital age allows people larger access to financial products and support, which was never seen in the offline modes. But when it comes to important life decisions such as term insurance, the debate between online and offline purchasing intensifies. There are several reasons to justify both. If you, too, are indeterminate on purchasing term insurance online or offline for a successful purchase of a better term insurance plan, you will get a final answer over here. So, read on to know the pros and cons of each mode in detail and know which one proves to be the better option.
Term insurance is one of the most basic forms of life insurance with the least amount of premium necessary. A policyholder can easily provide for their family with such plans even after their untimely demise. So, they are beneficial in times of need. When it comes to purchasing a plan, most insurers give the facility to purchase a term insurance plan online or offline. But since there are so many factors included in each mode, you can only decide on the better option after a thorough comparison.
Advantages and Disadvantages of Buying Term Insurance Online
To understand purchasing term insurance online, you must know its pros and cons. Otherwise, you will not have a clear picture of how it specifically helps or troubles a potential customer. Given below are the advantages and disadvantages of an online purchase.
Purchasing term insurance online is an easy procedure. It does not require extra skills other than web browsing and a basic understanding of term insurance.
You can also purchase a plan very fast compared to waiting in lines for consulting with an insurance broker. The application procedure and payments are also fast.
Online mode is also very convenient. You can purchase a term insurance plan from anywhere and at any time of your convenience.
Several offers and discounts:
The major benefit of online purchasing is the extra relaxation you get from online payments. The insurer usually has some extra discounts for paying online. Several payment gateway applications and mobile wallets also provide discounts and offers for paying through their channel.
No consultation from an agent:
The major drawback in purchasing term insurance online is the lack of direct conversation with the agent. You cannot personally discuss your financial conditions with them and get a perfect plan based on your situation. As agents know all the plans available, they know which plan can be the best as per your requirements.
No detailed information on plan:
There is also no detailed information regarding the plan you are about to purchase.
Delayed policy papers:
The policy papers of online purchase are mailed to you rather than instant printouts of the offline purchase.
Sometimes, some fake websites or mobile applications can lead to confusion or loss of money.
Advantages and Disadvantages of Buying Term Insurance Offline
Given below are the advantages and disadvantages of purchasing term insurance offline.
Direct consultation from an agent:
You can directly talk with an agent and describe your finances. And based on it, they will give you the perfect term insurance plan.
Detailed brochures of several plans:
At an insurance agent’s office, you can get a hard copy of the brochure of every plan. So, you get detailed information on every plan.
The payments in offline mode are also reliable, as you can directly pay through cheque or cash and get the receipt of payment.
No online discounts:
The lack of online discounts is the only major disadvantage in buying term insurance offline.
Limited payment options:
There are also very few payment options as it is not necessary that you have so much cash on you or have a cheque book ready.
Final Verdict on Buying Term Insurance Online or Offline
After studying the advantages and disadvantages of purchasing term insurance online and offline, it is quite evident that both modes have contradicting features. This means one mode’s advantage is another’s disadvantage and vice versa. But based on the ease of purchase and several options to select from, purchasing term insurance online is the best method.
Now that you know that purchasing term insurance online is the way to go, what is stopping you from purchasing term insurance? If you have worries about the payments and plan details, you can invest in reputed insurers.