The age old question from where one should buy a term insurance policy – insurance agent or online?
Which of the above mentioned option is better when it comes to clearing the insurance related facts, helping in buying a right term insurance policy, and of course, guiding in buying a pocket-friendly plan?
Digital India has come a long way. Now, right from shopping for groceries, buying a home and opting for a room on rent, to buying medicines, you can do everything at the click of your mouse. That’s not all, you can now even buy an insurance on the go.
Let’s end the tug of war that’s happening inside your head – online or old friend-cum-insurance agent.
If you are looking for short direct answer, then buying a term insurance through an insurance agent is goodbut it is far from being a great option! It is old school, time consuming, and not to mention, cumbersome.
In the good old days, when there was no internet, buying from an insurance agent was not only a good option but also the best possible answer to all your insurance needs. And it was much easier to reach out the agent at the time of claims.
However, the question is, is buying from an agent still the same and best way to buy term insurance?
Let’s untwist for you, the right way to buy insurance – Online or Agent
There are people who know the benefits of buying a term insurance plan online.For instance, you can compare different term insurance policies and hit the bull’s eye when you finally search and fix on a cheapest, customized, and the right plan. However, for those who are not aware or wish to know more benefits of buying term insurance online, look no further. As the below mentioned reasons will help you to see the real world picture of buying a term insurance online.
So, before you put your hand in your pocket, finish reading this and then, make a concrete decision.
- Brand Awareness
Online– Brand awareness, from whom are you actually buying, how the company performs financially, what their employees say about the company, how they stand out in market, how they differentiate from the pool of other insurers, and so on.
Buying a term insurance plan online helps you to know more about the brand immediately. You can call them to ask all the questions and clear your doubts. Check out their social media platforms.
You can compare term policy quotes, check reviews online, and then make a decision whether to opt for a particular policy or not! You have an opportunity to know about the company and product directly as no one is involved between you and the company, which means there is little or no room for frauds.
Insurance agent – When you buy a term insurance from an agent who you feelis the face of the company and the one who represents theinsurance company, you won’t have a chance to interact with the brand directly.
Besides, chances of selling a product based on the higher commission is high rather than the right policy. You are at the mercy of the insurance agent, which means complete dependency at the time of claims, and not just while buying. If your agent falls sick or if something goes wrong, it’s difficult to handle things on your own as one is accustomed to agent for everything.
Take charge and change the way you buy term insurance.
Online – Who doesn’t like to save money? And when it comes to insurance premiums, you would prefer to save money as much as you possibly can.
You may not be aware, but buying term insurance online saves a lot of money on the premium that you pay monthly, quarterly, half-yearly or annually. Since, the cost distribution, paperwork, and commission are all saved when you buy online, insurers prefer to pass on these benefits to the customers directly by reducing the premium amount.
And that’s how you end up buying the same term insurance policy at a lower premium.
Insurance agent – Don’t tell me, you didn’t know that an agent is paidcommission on the number of policies sold. Insurance companies pay a good amount of money as commission and other intermediary costs, including paperwork. Buying aterm insurance through an agent is a costly affair. Besides, asking and scheduling meeting with an agent is another issue you face.
- Claim settlement
Online – Is the claim settlement good, average, or extraordinary?
Don’t you want to know about the company from whom you are buying a term insurance policy? When you buy a term insurance policy online, you have an access to see the claim settlement ratio of the insurance company from whom you wish to buy.
Always, always, and always check claim settlement ratio. It says a lot about the company. And this helps in knowing the chances of your claim getting settled.
Insurance agent – Possibly, the insurance agent won’t even know what is claim settlement ratio. And if the agent does know, the possibility of sharing it with you is quite less, which is not a good way to buy a term insurance policy. You should know claim settlement ratio.You might end up buying a term plan erroneously from an insolvent insurance company!
- Convenience of buying
Online– Who doesn’t love comfort? Why run and chase agent, when you can simply buy term insurance on the go while sipping coffee with your partner?
The whole buying process is hassle-free. And can be even done using your mobile.Something you would prefer rather than running, scheduling, and re-scheduling with an agent. You save your precious time and energy filling lengthy insurance forms, which in turn travels to the local hubs and further travel for underwriting. The underwriter may deny or approve your file after a detailed scrutiny.
Buying term insurance was never this convenient as it is now.
Insurance agent– For instance, to buy a term insurance plan through offline mode or through a traditional insurance agent, you have to physically be present to fill up the lengthy form, which is an exhaustive and inconvenient process.
Online – Since, online purchase means you personally would buy the term insurance policy online, you would do your research. Then, buying term insurance wouldn’t be forceful, but would be based on unbiased decision, made after doing analytical and statistical study about the product and the company.
You have an access to view the list of inclusions and as well as exclusions. So, chances of getting miss-sold is far from reality.
Insurance agent– Your agent may lie or run around the bushes to hide things from you or probably sell you some other product to earn a higher commission. Promising something, and selling you something. And eventually, you will end up having a non-essential plan. There have been many cases where a policyholder holds a wrong policy that has a significant impact on their families when a claim arises..
When you go online, you can compare various term insurance policies and choose the right one that suit your needs. Comparing different term plans online is so much simple, easy, and quick than reading different policies and comparing offline.
Time to wrap up:
In spite of sharing the above scenarios, many people are still reluctant to buy a term insurance plan online. But you must know that buying a term insurance plan online is hassle-freeand quick with 24*7 accessibility.
Today, when the whole country has moved to a whole new digital era, why not take advantage of the new age world. Why sit behind and cry over buying a wrong product or let your family suffer at the time of claims (I pray that day never comes!), when you can check and compare different term insurance plans online before you buy one.