As the sole earner of your family, the responsibility of ensuring your family’s safety in your absence falls on your shoulders. However, at times, savings, on its own, may simply not be sufficient enough. Savings might get spent on managing the costs of living and emergencies, which could exhaust them. It is vital to provide your loved ones with a long-term option. One option that you can consider in such situations is a life insurance policy.
One of the best ways to get the policy you need and to save money spent doing it, is to go for online life insurance. How is this different than purchasing the insurance offline from an agent? Keep reading to know about the differences between online and offline purchase of your life insurance.
Life insurance: What is it?
A question people should definitely have an understanding of is: what is life insurance? A life insurance policy is a type of policy in which you, as a policyholder, get into an agreement with your insurer. As per this agreement, your insurer will financially compensate your loved ones in the event of your sudden demise during the term of the policy you purchased. Life insurance plans such as term plans offer only sum assured to the insured. Other products such as ULIPs offer maturity benefits to the policyholder, given that they survive the policy term. These amounts are based on the policy you purchase and the duration of the policy.
Online or Offline: Which is better?
When people are considering buying a policy, their first choice will be an insurance agent. Easy accessibility, trust factor and personal services are some of the reasons why people prefer an offline purchase. However, due to the accessibility to the internet, many people have started opting for online purchases. Listed below are the major differences between these two:
1. Makes comparison easier
In many instances, an insurance agent may try to sell you a specific type of policy. As they gain commission from the sales of the policies, they might push for certain policies to gain more profit for themselves. However, this also means you could end up buying a policy that might not suit your needs, which could cause potential financial loss for you. When you opt to purchase a policy online, you have the option of comparing policies from different insurers. There are websites that allow you to compare different insurers and their products. This helps you in comparing two or more different policies based on different parameters. The benefit of online comparison is that you can select the policy that ticks all the boxes as per your requirements.
2. Saves money
A major concern about insurance agents is that they tend to charge extra for the policy you purchase from them. Apart from the commission, there are other hidden charges that the agents might either forget to or deliberately might not inform you about. Many agents also tend to charge consultation fees from clients. These extra costs could put a burden on your pocket. This is not the case when it comes to an online purchase. When you choose to buy your policy online, you do not have to pay anything extra for it. You can select the policy as per your requirements and pay for it online. With the absence of an agent, there are no hidden charges. Additionally, you can use the life insurance premium calculator on the website of your insurer. This will help you get an idea about the cost of your policy.
3. Convenience in your hands
A major benefit that online purchase offers you is that you can purchase the policy whenever you want. For example, if you were at on-road on a business trip and were looking to purchase a life insurance, you can easily do so without any hassles. There is no time constraint either. This means you can purchase the policy you need either late at night or any time of the day. This is not the case with offline purchases. You will be required to make an appointment with the insurance agent before you get to purchase your policy.
These are the benefits you can enjoy when you purchase online life insurance. Always make a list of things to look for in the policy before you purchase. This helps you in selecting the policy that suits your needs the most.
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