6 Reasons Why Online Term Plans Are Less Expensive Than Offline Plans

Here's Why You Need A Robust Life Insurance Plan

Life insurance term plan is one of the most well-known policies available in the market today as it offers a high sum assured at a substantially low premium. The high-sum assured acts as a safety net for the family of the policyholder. It can replace the income of the policyholder in case of any unfortunate incident. Therefore, it allows the policyholder’s family members to live a financially independent life and meet all the long-term financial aspirations. 

You can buy a term insurance plan via various modes, which include online, via an agent, or by visiting the insurance company’s branch. It is advisable to buy a term plan online, as doing this offers multiple benefits. Here is a list of reasons why should buy term insurance online instead of the offline route.

  • Comes at  a lower premium 

One of the significant advantages of buying an online term plan is the low premium. You are purchasing the policy directly from the company, which allows you to save on the broker’s commission and the hiked policy underwriting fees. On average, you can save at least 30 to 40 percent on the premium when you buy your term insurance plan through the Internet.

  • Offers a high sum assured 

As the broker’s commission and associated costs are eliminated, the insurer provides a higher sum assured as compared to an offline plan. Therefore, buying your term policy online helps you save on premium and allows you to reap the benefits of a high sum assured.

  • Reduces the agent’s influence 

Usually, an agent influences you to buy a plan that can benefit him or her personally. While you are purchasing an online term plan, you are buying it directly from the insurance company, so the chances of being influenced are out of the question. You can buy the term plan considering your family’s monetary objectives.

  • Negates the possibility of a fraud 

Here, you do not have to be dependent on your agent. Therefore, there is no need to hand over the premium to the agent, and instead, you can pay it directly to the insurance company. You can also opt for an Electric Clearing Service (ECS) or pay the premium online. In ECS, the premium is deducted directly from your bank account, making it is one of the safest ways of paying the premium.

  • Ensures better claim settlement 

It is essential to check the Claim Settlement Ratio (CSR) of the insurance company before buying a term insurance policy. When you purchase the policy through an agent, there are chances that he/she might not divulge the CSR details of the insurer. As you trust your agent, you may not even ask about the CSR of the insurer. While buying the term policy online, you can easily compare the features, benefits, and CSR of various insurers to select the company with a high CSR ratio.

  • Provides convenience 

If you are buying a term insurance policy online, you can do it from the comfort of your home or office. You do not have to worry about getting ready, heading out to meet your insurance agent, or standing in the long queue at the insurer’s office. Therefore, you can save a considerable amount of time and money that you will spend on your commute. Moreover, it is convenient to compare the various features, benefits, and premium when buying your term insurance policy online.

Invest in a term plan is necessary as life is unpredictable and uncertain. So, do not take a risk when it comes to your family’s monetary stability. It is time to take a wise decision and purchase an online term policy that can meet your needs.