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It is the digital age that we live in. Everything is available at our fingertips. So why should Insurance be an exception? To facilitate customers, now all insurance companies are posting the details of their products on their official websites. Although in the past few years have seen a rise in the number of online insurance buyers, many people still have their doubts about buying a policy online.
With the help of the facility of finding agents online, customers can compare and choose the best insurance product that suits their financial requirements. As well as buy at a lower premium.
But many people are still skeptical about the reliability and safety of online transactions. Many people still prefer taking the help and advice of an Insurance Agent. If you are one among such people. If you too are confused about online vs offline insurance agent, whom to approach. This article is for you. It presents the benefits of buying either from an online vs offline insurance agent. And helps you decide which model is best suited for you
Benefits of Buying Insurance Online
Convenient: You can buy an insurance plan online. From the place that is comfortable for you. And at a time that is convenient for you. Whether home, office or on the move. You just need to visit the official website of the insurance company. Provide your complete KYC details. Make an online payment either via debit/credit card or net banking. And you have bought your insurance policy.
Easy Comparisons: If you buy insurance, online, from an agent or an aggregator, you can easily compare the features of all policies. You don’t get this benefit when buying from even the best Insurance Agent. They will insist you buy the policy of their company only.
Cheaper: An insurance plan works out to be almost 30-70% cheaper if you buy from online vs offline insurance agent. The reason for this is because no financial advisors are involved, which eliminates agent commissions and other intermediary costs.
This benefit is passed directly to customers resulting in cheaper premiums. Also, while purchasing insurance online, the sum assured tends to be higher, because of the lower costs and nil mortality risks.
Direct Dealing: When you buy insurance online, you are dealing directly with the brand. The company is accessible to you at all times. Whereas, an insurance agent may not be reachable at times. An Insurance Agent may go back on their promises. On the contrary, the companies are regulated by IRDAI and cannot afford to do so.
No Misselling: At the time of purchasing insurance online, you log on to the company’s website and directly go through the policy’s terms and conditions in full detail. You can download the terms, conditions, payouts, all other possibilities. Or you can take screenshots or keep printouts. So you have significant proof. On the other hand, when purchasing insurance from an advisor, it is quite likely for the agent to manipulate or misrepresent the terms and conditions. Just to try and influence your decision in buying the plan from him. There have been many complaints filed by the customers about their disappointment. As they expected quite a lot because of the manipulations of their Insurance Agent.
Higher Settlement Ratio: When you purchase insurance online, you first tend to check the claim settlement ratio page. This helps you decide on the policy and the company to buy a policy from. Whereas, in the case of offline insurance purchase, you will have to depend on the agent to furnish true information about the company’s claim settlement ratio. But, mostly, agents try to hard-sell the company they work for. Whether that company has a good or bad claim settlement ratio.
Fewer Errors: The online mode offers higher flexibility and a wider range of options to help you choose your life insurance plan. However, as the Insurance Agent is not there to guide you, at the time of buying online. You need to do your research yourself. This way, someone else doesn’t fill the form on your behalf. There have been incidences where the agents have mistakes in the forms, whether intentionally or not. Such mistakes cause difficulties at the time of claim settlement.
Benefits of Buying from the Offline Agent
Marketing: The higher sum assured that is shown in online insurance policies can sometimes be an eyewash. It might be a marketing strategy for insurance companies, only. The advertisement may say that you can buy an Rs. 1 crore life insurance plan, by paying only Rs. 500 a month. However, when it gets calculated, the premium amount comes much more. Conditions are applied. Or a person may get tempted and purchase this life cover. Even without any requirement for such a high cover. This is one of the reasons how an insurance policy purchased offline could be a more reasonable choice.
Benefits of Riders: Online term plans only offer a death benefit. And accidental death coverage at an additional premium. They, usually, do not offer riders like critical illness coverage, accidental death benefit, Permanent Disability Benefit, etc.
Understanding the product: Checking the insurance plan online doesn’t necessarily mean we completely understand the insurance product. As, generally, most of the individuals do not understand the complex terms used by financial institutions. We tend to select an insurance plan based only on the premium amount and the insurance cover. Whereas there are many more clauses in insurance policies that we need to completely understand before buying an insurance product.
Personal Service: Sometimes, we don’t feel confident enough to opt for purchasing through online agents. We may feel there is some cache about all the good things that the company is showing online. Besides, if we buy offline, the services of Insurance Agent. whether in keeping us informed about the status of our policy, or help out at the time of claim settlement, will not be available.
Online vs Offline Insurance Agent: Which is Better
If you are looking to be assisted by a person coming to your doorstep. Patiently listen to all your insurance needs. Then offer an insurance product suitable to your needs. In such a situation, you should approach an offline agent. Because the agent will not only give you the complete details about the insurance plan but also collect the form, KYC documents, and the cheque from your place. And, finally, deliver the policy documents at your doorstep. Even at the time of the claim, your agent will help you get the maximum claim and in lesser time. But for all this service, you will be paying some commission which will get deducted from your premium.
On the opposite side, if you, and your family, understand the basic terms of the insurance policies. And you can put in the time and effort, required to search the best policy on the online portals, Then you should save your premium by purchasing your insurance policy online. Besides that, it will let you compare various insurance policies available in the market. Here, it is very important that at least one other member of your family understands it too. For ease at the time of the claim process. Because then that member will be able to contact the insurance company for claiming the insurance.
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