HOW ONLINE TERM INSURANCE PLANS TRUMP OFFLINE PLANS

HOW ONLINE TERM INSURANCE PLANS TRUMP OFFLINE PLANS
Buying an online term insurance is becoming increasingly popular in India. The virtual plan in its most
basic form is different from its offline counterpart on account of the customer being in direct contact
with the company. This is unlike an offline plan, which involves a mediator or an agent, who sells you the
policy and takes care of the entire process, with the promise of keeping your best interests in mind. So,
without the aid of an agent, why is an online term plan gaining more traction?
Reasons Why They Are Popular
Freedom to Take Decisions: With term insurance online plans, you are the sole actor, there is no
intermediary from a company who is trying to sell you his company's product. You can go through the
fine print to understand all the nuances of the terms and conditions, so that there is no confusion and
misunderstanding related to any aspect of the policy. If any clarity is required, you can connect with the
customer care representative, who will answer all your queries.

Cost Effective: The absence of any agent also brings down the cost of getting an insurance plan. An
article on NDTV Profit claimed that the difference in pricing could be much as to 50% to 70%. This is
partly due to the lack of agent participation and other overheads. In addition, general policies under Rs
50 lakhs rarely require a medical check-up.
Lesser Probability of Fraud: As you are the person undertaking the entire process of filing for an
insurance, there is no chance of getting duped, which could be possible with an unscrupulous insurance
agent. Moreover, since all the formalities are filled up and submitted by you online, you have the entire
transaction history on record. You can use the same in case of any issue at a later point.
Clarity about Rejections: Gauging an insurance company's online claim settlement ratio can be difficult,
as the online and offline data is generally clubbed together. Many people feel that the risk factor of
rejection becomes higher online. But the IRDA's regulations make the process more secure. According to
the IRDA guidelines, the company must reject a plan (if needed) within 2 years of purchase.

Convenient: With the availability of the entire process online, you can make your purchase whenever it
is convenient for you. Not only can you compare among different plans to choose one that suits you
best, but websites also offer features like application status and insurance premium calculator, which
help you understand the costs involved and choose accordingly. Whether day or night, you can just go
to the website, read the details and be done with filling the application form in just 30-40 minutes.

With so many advantages, buying an online insurance policy is possibly the easiest thing you could do!

Source: https://www.bharti-axalife.com/know-your-insurance/advantages-of-online-term-insurance