Insurance markets are expansive and you will find more plans than you could possibly imagine. Unfortunately, this wide choice also makes it harder to sift through the various available options. In addition, consumers often have to deal with agents, who at times misrepresent data, selling plans with features that are not really needed.
Today, insurance can be purchased both online and offline. When deciding on a medium by which you wish to purchase a policy, you should consider the following factors.
- Cost
When availing term insurance, costs become an important consideration. Very often, online plans are cheaper because insurance companies also save money. Elimination of intermediaries and diversion of precious human resources to more productive tasks allows insurance companies to lower the premium on your term policy.
- Flexibility
There is no denying that online insurance offers greater flexibility in comparison to the offline method. To enjoy these benefits however, you will need to invest some time into research and comparisons, as you will not have an agent to assist or advise you. This can be beneficial though, as it also means you will not be misinformed. You can also purchase the policy, pay your premium, and make claims online. There is less chance of any mistakes or distortion of information, when you make disclosures directly to the company.
- Documents
Unlike offline insurance policies, online term insurance plans do not need attaching physical copies of supporting documents. You can simply upload these documents to avail the term policies. This offers great convenience to buyers.
- Forms
Many buyers are unsure about receiving the physical copy of their insurance plans if they buy it online. However, you can rest assured of receiving the same form that you filled out, both as a soft copy, as well as a physical copy.
- Dependency
Individuals can eliminate dependence on insurance agents, when they choose to buy term insurance policies online. This will ensure there are no errors that can hamper claims at a future date. Moreover, you do not have to depend on agents for reminders about premium renewal payments.
- Claim Settlement Ratio
When you consider buying an insurance policy online, the first thing you will see is the claim settlement ratio. It will be helpful to understand what the claim settlement ratio means before making your choice. Opting for an insurance company with a higher settlement ratio will be helpful. On the other hand, if you avail an insurance plan through an agent, you will have to rely on information he provides, which may not be accurate.
In light of all of these considerations, it becomes fairly obvious that online insurance is the more practical option, especially if you are comfortable using a computer. The flexibility, ease of applying, and lower costs make online insurance more beneficial than traditional methods of purchase.
