Should you buy term insurance online or offline?

buy term insurance

As the sole earner of your family, how would you ensure the financial safety of your family during emergencies, especially during your absence? For many, the answer would be to increase their wealth through savings or investments. While they are options you can consider, it is vital to provide your loved ones with a long-term option. One option that you can consider in such situations is a term insurance policy. In recent years, the number of people opting for this insurance has risen. When it comes to buying this policy, you have two options: online and offline. Which option is better? Read on to know more about this.

Term insurance: What is it?

A common question among people is this: What is term insurance? Among the different types of life insurance policies that are available to you, term insurance is a policy that provides financial protection to your loved ones for a specified period of time. For example, if you purchase a term policy of 30 years and if you were to pass away due to unfortunate circumstances during the policy term, the insurer will compensate your family with the death benefit assured in the policy. As a policyholder, you are required to pay premium for the duration of the policy. Do keep in mind that there are no maturity benefits in this policy after its expiration.

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Online or Offline: What’s the difference?

Usually, when people are considering buying a policy, their first option will be to approach an insurance agent. Easy accessibility, trust factor and personal services are some of the reasons why people prefer an offline purchase. However, due to the accessibility to the internet, many people have started opting for online purchases. Listed below are the major differences between these two:

1. Option of comparison

There are instances where an insurance agent may try to sell you a specific type of policy. This is done in order to gain more profit for themselves. However, this also means you could end up buying a policy that might not suit your needs. This could cause financial loss for you. On the other hand, you have the option of comparing policies from different insurers online. There are websites that allow you to compare different insurers and their products. This helps you in comparing two or more different policies on different factors. The benefit of online comparison is that you can select the policy that ticks all of the boxes as per your requirements.

2. Helps you save money

One of the major concerns when it comes to insurance agents is that they tend to charge extra for the policy you purchase from them. Apart from the commission that they earn, agents may forget to inform you about any other charges that could later escalate the cost of your policy. Many agents also tend to charge consultation fees from clients. This means you end up paying more than the intended amount. This is not the case when it comes to online purchase. When you choose to buy your policy online, you do not have to pay anything extra for it. You can select the policy as per your requirements and pay for it online in an instant. As there’s no middleman involved, there are no hidden charges. Additionally, you can use the term insurance calculator on the website of your insurer. This will help you get an idea about the cost of your policy.

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3. As per your convenience

One of the major benefits that you get to enjoy with online purchase is that you can purchase the policy whenever you want. For example, if you were at your office and were looking to purchase a life insurance, you can easily do so without any hassles. And you can purchase it at any time you want. You can purchase your policy at midnight or early in the morning without any time restrictions. This is not the case with offline purchases. You will be required to make an appointment with the insurance agent before you get to purchase your policy.

Conclusion

While an online purchase of your term insurance policy is better when compared to offline purchase, there are many who still prefer getting their policies through an agent. It would help you to weigh the pros and cons of both before making a final decision.

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