Offline or Online: Which term plan is best for you?
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If you do not yet have an insurance policy, chances are, you’ll want to start off by looking for the most affordable kind of life cover. This may be particularly true if you are a beginner. Alternatively, even if you already have a life cover, you may want to increase the coverage you enjoy. And at such junctures, a life insurance plan that offers a significant amount of coverage at nominal premiums may be just what you are looking for.
A term insurance plan fits the bill perfectly.
What is a Term Plan?
A term plan or a term insurance plan is the simplest kind of life insurance plan. It is a pure life cover that offers death benefits to the nominee in case the policyholder's demise occurs during the policy term. If, however, the policyholder survives the policy term, they receive no payouts at all.
It is for this reason that term insurance plans are the most affordable kind of insurance covers. In return for the cover, you need to pay a nominal insurance premium to your insurance provider.
Let's now take up an example to understand how a term insurance policy works. Say you purchase a Rs. 1-crore term plan with a policy tenure of 30 years. In return for this cover, you pay a premium of Rs. 10,000. Now, in case of your unfortunate demise during the 30-year period, your nominee will receive the death benefit payouts of Rs. 1 crore. However, if you outlive the policy, no payouts are made by the insurer.
What is an Online Term Plan?
An online term insurance plan is simply a kind of term insurance policy that you can purchase online. The features and benefits of the policy remain unchanged. It is simply the mode of purchase that is online. You can buy an online term insurance plan directly from the insurance provider's website, or through an insurance aggregator's platform.
What are the Benefits of an Online Term Plan?
An online term insurance plan offers several benefits to the policyholder. If you are looking for some reasons to get term insurance online, here is why this can be beneficial to you.
Before you purchase your term plan online, you can go through the features and benefits of the policy and understand what’s in store for you. You can even compare different term insurance plans online to find the right policy for your needs.
Since online purchases do not involve any massive paperwork or intermediaries, these cost savings are passed on to policyholders in the form of affordable premiums. That's another reason to consider buying your term insurance plan online.
Convenient and time-saving
Buying your term plan online is also more convenient and saves a lot of time. All you need is a smart device like a laptop or a smartphone as well as a stable internet connection. Then, you can make your purchase from the comfort of your home or when you're on the move.
What is an Offline Term Plan?
An offline term plan, as the name suggests, is a term insurance plan that you buy offline. You can buy term plans offline either from your local insurance agents or from the nearest branch office of the insurance provider of your choice. Earlier, insurance plans could only be purchased offline. It is only now that online plans have become available.
What are the Benefits of an Offline Term Plan?
Buying a term insurance plan offline comes with its own set of advantages. Here are some upsides to buying your term plan through an agent or via a branch office of the insurer.
Helpful for first-time buyers and beginners
If you are a first-time buyer and a beginner to the concept of insurance in general, it can be helpful to have an agent who can explain the fundamentals to you real-time. They will also ensure that you fill out the application forms accurately and without any mistakes.
Easy access to customer support
You can also reach out to your insurance agent to clarify any doubts you may have about your policy at a later point in time. If you are very tech-savvy, this may be more convenient than sending an email or raising a ticket.
Online vs Offline Term Insurance: A Comparison
Before we wrap up, let’s take a quick look at the differences between buying term insurance online vs offline.
|Particulars||Online term plans||Offline term plans|
|Cost||More affordable||Slightly more expensive|
|Privacy||Greater privacy with regard to your personal information||Lower levels of privacy since the insurance agent fills in the details|
|Level of buyer independence||Buyer is more independent and is in control of the purchase process||Buyer depends greatly on the insurance agent for assistance with the purchase process|
|Claim settlement||Online claim settlement possible||Claim settlement process assisted by the insurance agent|
As you can see from the details above, both online and offline term plans have their own advantages. If you are fairly familiar with how term insurance works, you can go ahead and purchase the right policy for yourself online. On the other hand, if you need more assistance, or if you are not quite comfortable with online processes, offline purchases may suit you best.
Read next: WHAT IS THE BENEFIT OF TERM INSURANCE WITH RETURN OF PREMIUM?
Whether you choose to buy your term insurance plan online or offline, you need to be aware of the features and benefits that come with your plan. And the ‘return of premium’ feature is one such advantage that some term plans offer. Interested in finding out more about what this feature is? All you need to do is check out our blog on this subject.
ALREADY HAVE A TERM PLAN? WHY NOT INCREASE YOUR COVER AND ALSO EARN SOME ADDITIONAL INCOME IN THE PROCESS?
If your existing term insurance coverage is not sufficient, you can always increase your coverage with another life insurance plan. And the ABSLI Assured Income Plus plan makes for a very good contender.
This life insurance policy gives you the advantage of a life insurance cover over the entire policy term. So, you can rest assured that your loved ones have adequate financial coverage.
Plus, in addition to the income benefit, you can also invest in it for a short period of time to enjoy the benefit of regular income over the long term. You see, the income payout period for this plan can be as long as 20, 25 or even 30 years!
ABSLI Assured Income Plus (UIN: 109N127V05) is a non-linked non-participating individual life insurance savings plan.
IN ULIP POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
ABSLI Life Shield Plan
A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V06
- Choice of 8 plan options
- Cover your spouse under the same policy
- Longer Life cover till age 85
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