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 agnate as ULIP, Endowment or Money Back Policy, which equip the same financial cover, the premium in a term plan is much secondary.
A term plan does not have an investment attached to it and the entire premium is used to ok the risk. All these factors have contributed to the aggrandizement 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 aberration 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 repulsion 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 rightful even if you control the policy offline.
Mentioned beneath 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 driven by the insurance company. The ratio depicts the number of claims resolved by an insurance company out of every hundred claims avowed. Consequently, a high ratio implies that a majority of the claims are being decisive by the insurance company.
Customer Reviews and Customer Service
There are various banker and insurance related discussion forums on the internet. Do hold dear to check reviews from customers who have either purchased the equivalent policy or likewise policy from the equivalent company. Coupled with reviews on customer service, this is a good pointer 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 scrap you make an informed outcome.
Whether you purchase an offline or online term plan, hold dear to research various products properly, so that you do not uneasiness your declaration sequential.