How Online Term Insurance Plans Trump Offline Plans?

Online Term Insurance 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 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!