Life insurance is the one policy that every family needs for a better future. Life insurance gives you an edge in life’s uncertainties and helps your family be financially safe even if you pass away. Life insurance is an important part of giving your family financial security, so you should be careful when you buy it.
First, let’s discuss what life insurance is.
Life Insurance is defined as a contract between an insurance company and an insurance policyholder, where the insurer vows to pay a sum of money after a set period of time or upon the demise of an insured person in exchange for a premium. However, you should note that maturity benefits are not available for all types of life insurance.
When we talk about buying life insurance, we can do it in two ways: online or in person.
Let’s talk about things that affect both buying a life insurance plan online and offline. This will help you make a better and smarter choice.
Buying life insurance online vs offline
| Offline Life Insurance | Online Life Insurance | |
| Cost-effectiveness | Agents who work for the company sell life insurance plans in person. Since the agents take care of your application, they get a commission, which makes the life insurance cost more overall. However, sometimes you can buy one without an agent too. | Buying life insurance online is a much better deal. Since there are no middlemen or agents, the overall cost is much lower because the insurer doesn’t have to pay a commission. |
| Sum Assured | Offline life insurance also has a high sum assured. Still, because premiums and agent’s fees are so expensive, most people choose a low sum assured. | Online life insurance comes with low premium costs due to the lack of middlemen. This means that the sum insured can be higher even with a low premium. |
| Flexibility | When you buy life insurance through a company’s agent, he or she comes to you. It can take a lot of work and time. | Life insurance plans that you buy online are, without a doubt, much more flexible. You just have to go to the websites, compare all the companies that offer life insurance, pick the best one for you, and pay the premium with one click. |
| Frauds | Offline, the agent tries to convince you and change your mind so that you may end up buying coverage you don’t really need. | Fraud is less likely to happen when you buy life insurance online. You can read all of the terms and conditions of the plan before buying it. |
| Transparency | Offline insurance purchases might end up happening through unauthorized sources. Such individuals or entities can sometimes mislead or manipulate you to meet their own needs. Most of the time, you only get the information that they want you to have. This makes things less clear. | Since you read and fill out all the paperwork for life insurance yourself directly from the insurance provider, there is no room for fraud because everything is clear. |
| Claims Settlement Ratio | When you buy offline, every bit of information is only available to you when you ask for it. Hence, there is a higher chance that you might end up making that purchase with the proper claims-related information. | When you buy life insurance online, it’s easy to look up the number of claims paid by each company and choose the one with the highest number. |
| Hassle-free | In-person, however, the agent handles all the forms and paperwork. Just sit down and take it easy. | Buying life insurance online is entirely up to you. Before investing, you have to fill out all the forms and read them carefully. |
You can buy life insurance either online or in person, depending on what you want. Given above are a few things that will help you understand how the system works. When looking for life insurance, whether online or in person, the most important thing to remember is not to let anyone sway your decision. Instead, choose a plan based on your own needs and preferences. A life insurance premium calculator can help you find a plan best suited to your needs and your purchasing budget.
Conclusion:
Even though the online mode is always better than the offline mode, you decide to pick a plan after carefully weighing the pros and cons of each. But no matter how the plan works, it’s a good idea to tell the insurance company everything they need to know about your health and the health of your family, even if it makes your premiums a little higher.
