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Online Insurance vs Offline Insurance Policy – Which Is Better & Why?

With plethora of insurance companies in the market, with a variety of policies to offer, people often get confused, due to which buying an insurance policy is not that easy as before. But to facilitate customers, now insurance companies are posting all the details regarding there products on their official websites. This online facility not only helps customers to compare and choose the best insurance product which suits there needs but also lets them buy the same at lower premium.

Selling insurance products online removes the agents cut which makes insurance companies offer the same insurance product at lower premium. But whenever we plan to buy an insurance plan, the very first thing that comes to our mind is whether we should contact the insurance agent or buy it online.  We often get confused that which one shall we opt for – online insurance vs offline insurance. Thus, to give some assistance regarding this question we have listed some advantages and disadvantages of online insurance plans, so that you can make an informed decision.Online Insurance vs Offline Insurance Policy

Benefits Of Online Insurance Policies

1. Convenience :- The online offerings of insurance companies allow customers to get insurance at the convenience and privacy of their home. You can visit the official website of the insurance company and provide your complete details and make online payment either via debit/credit card or net banking to buy the policy.

2. Instant & Secure :- This is one of the fastest and most secured way to get your insurance product. You can anytime visit the website i.e 24×7, from anywhere in the world and get the insurance policy.

3. Cheaper Premium :- With competition growing intense, insurance companies are creating their space online by offering cheaper premium than offline policies. Most of the insurance companies offer insurance policies at around 30-40% cheaper premium compared to offline policies. This is because online policy purchase transactions happen between insurer and customer which reduces the intermediary’s or agent’s commission and paperwork cost. Companies pass this benefit directly to customers resulting in cheaper premiums.

4. Higher Sum Assured :- Most of the companies selling insurance products online also offer higher sum assured.

5. Compare :- Online details of insurance companies allow you to get all the information about all the insurance plans available in the market. Some websites even offer you tools to compare deals of multiple insurance companies, to help you shortlist the one with acceptable terms and conditions and low premium.

6. Saves From Misselling :- Consumers can directly visit the official website of the insurance company to check the available online plans and buy the same from online portal. This not only reduces cost but also reduce the chances of misselling which usually happens in case of buying insurance products from insurance agents.

7. Policy Reviews :- People can get the details of the insurance policy online. Number of websites review different insurance plans available in the market which can help you take the right decision. Other than that, you can also discuss about policies on online forums to get suggestions from existing policy holders and insurance experts.

8. Online Insurance Claims :- With online presence, most of the insurance companies also allow their online customers to make their insurance claims online. This is one of the most useful and convenient processes initiated by few companies which allows customers to get their claim money easily.

Best Selling Online Insurance Products Available In The Market:

  • Life Insurance
  • Endowment & ULIP’s
  • Health Insurance (Mediclaim)
  • Car Insurance
  • Travel Insurance

Disadvantages Of Online Insurance Policies

1. Lesser Understanding Of The Insurance Product :- Buying insurance plan online may not give you the complete understanding of the insurance product you are buying. As all individuals do not understand the terms used by financial institutions, this make you buy insurance based on the premium amount and the insurance cover against the premium whereas there are lot more clauses in insurance policies that you need to know and understand before buying an insurance product.

2. No Personal Service :- Buying insurance policy online will make you interact directly with the insurance company and eliminate the role of insurance agent. And the service of insurance agent which keep you informed about the status of your policy, help you in claim settlement will not be available.

3. Online Scams :- Apart from other cons of buying online insurance, you better be sure the insurance product you are buying is genuine and the platform you are using if official. Buying insurance product online involves submitting your financial information on the company website so better be careful in selecting the online insurance website and make it sure that it is a secured site before disclosing your personal and financial information.

 Conclusion: Online Insurance vs Offline Insurance Policy: Which Is Better?

When you want a service where a person i.e agent comes to your doorstep, understands all your insurance needs and offers an insurance product which suits your needs, then you should go for offline insurance over online. As agent will not only give you the complete details about the insurance product but also collect the papers and cheque from your place and deliver the policy documents at your doorstep. Even when you claim your policy, the agent will help you get maximum claim and in lesser time. But for all this service, there is going to be some commission which you as a policy holder have to pay in the form of premium.

On the other hand, if you and your family understand the basic terms of the insurance policies and you have time to search the best policy on the insurance portals available online then you can save some premium by purchasing your insurance policy online. Besides saving some premium, it lets you compare various insurance policies available in the market. Here, it is very important for at least one member of your family to understand the claim process. As in case of claim on your policy, a member of your family will have to contact the insurance company for claiming the insurance.

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Also Read: Insurance Guide: Get Protected Against Insurance Fraud By Knowing Your Rights

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