All of us know the importance of having a life insurance policy, but not everyone affords to have whole life policies or other life insurance plans. In such cases, Term Insurance stands to be a perfect match for the need for life insurance. Considering the need and demand for the term insurance, nowadays almost every insurance company offers term insurance online along with the traditional offline way of purchasing the policy. However, there’s always a question whether is it secure to buy online term insurance or not? The security isn’t always concerned to the costs. It can also be considered in terms of benefits and other essentials.
While buying term plan offline, intermediary costs are included, hence on an average; the premiums are 40% expensive than that of online plans. In the offline plan, some percentages of your premiums are given to the intermediaries, whereas, in the online term insurance, you are directly in contact with the insurance company; hence the brokerage and agent charges are saved.
In the offline process, the intermediary or the broker aims to sell the plan, and may not disclose some facts about the plan which are adverse in your case. It is not in the case of online term insurance. The insurers disclose almost all the information about the plan on their websites; hence the chances of getting misinformed are too low.
Disclosure of the Information
Disclosure of your health-related information is necessary while purchasing the term plan. If found providing any fraudulent details, the insurance company may not pay the death benefits to the beneficiaries even on the unfortunate demise of the life insured. When purchasing offline, in most of the cases the form is filled by the broker. In the online process, it is you that fill the form and provide the information, which is true, at your best. This ensures your claim would not be rejected due to false information.
The broker or the intermediary may answer all your queries, but when you purchase online term insurance, there is always a guarantee of your query being solved. Almost all the insurers provide chatbots and 24/7 customer helpline through which you can get answers to your questions.
The claim settlement ratio doesn’t vary whether you buy offline or online term insurance. According to IRDA mandate, insurance companies are not allowed to reject the claims due to non-disclosure of the information. It becomes mandatory to pay-out the death benefits to the beneficiaries on the unfortunate demise of the life insured. Thus, it can clearly be said that buying online term insurance is absolutely secure.