Should I Go For An Online Or Offline Term Plan?

Should I Go For An Online Or Offline Term Plan?

Term insurance plans are considered an important part of every financial portfolio. Compared to other policies undifferentiated as ULIP, Endowment or Money Back Policy, which stake the identical financial cover, the premium in a term plan is much junior.
A term plan does not have an investment attached to it and the entire premium is used to ice the risk. All these factors have contributed to the laurel of term insurance plans in India.
In order to capitalize on this demand, insurance companies in India offer various types of term plans to customers. While some companies offer these plans only offline, most companies have jumped on to the e - commerce bandwagon and offer online term plans. The main discongruity between an online and offline term insurance plan is the premium, which is minor by 30 to 40 percent in online plans. The premium in an offline term plan is loaded with agents commission and office expenses which gets saved when you purchase a policy online. Typically an agent earns a commission of around 30 percent in the first year of the policy and around 2 to 7 percent thereafter in an offline term plan.
In revulsion of the premium in an online plan being cheaper than the offline one, investors have a lot of apprehension in purchasing policies online. The concerns mainly revolve around claim settlement, customer support and servicing of the policy. While these are all valid concerns, they are equally congruous even if you pull the policy offline.
Mentioned subservient are a few factors, which you should evaluate before purchasing a term life plan:
Claim Arrangement Ratio
This is a good darner of how quickly claims are obstinate by the insurance company. The ratio depicts the number of claims determined by an insurance company out of every hundred claims well-known. Accordingly, a high ratio implies that a majority of the claims are being brick wall by the insurance company.
Customer Reviews and Customer Service
There are various plutocrat and insurance related discussion forums on the internet. Do memorialize to check reviews from customers who have either purchased the twin policy or more policy from the equivalent company. Twin with reviews on customer service, this is a good thorn on how the company services its customers and treats claims.
Compare Various Policies
Finally, visit websites which compare the features and premiums of all insurance policies available in the market. This will go a long way in detail you make an informed declaration.
Whether you purchase an offline or online term plan, keep forever to research various products properly, so that you do not demur your the call subsequent.