Online term plans are good. However, to get the best out of it understand how buying term insurance online works.
Harish wanted to buy a term insurance plan. He had just started working and insurance was a new sphere for him. Unaware of how to go about it, he logged on to an online insurance comparing portal and checked out a few term plans. He was happy with what he saw, but with his limited knowledge about how insurance worked, he was unable to choose the perfect plan.
Fortunately, he asked for help using one of the assistance medium offered by the company. This cleared all his doubt and he landed with a decent policy.
I personally think that buying insurance through self-awareness is better. Why not make maximum use of internet and choice available online. Here is how you can make buying term insurance online a right choice.
Buying term plans online
One cannot deny the fact that buying term insurance online has become very easy. You can buy the plan in a matter of a few minutes.
But…
There are some limitations of the online term plans too. First of all, you need to understand the insurance business well enough to be able to carry out the transaction yourself. Harish needed help with sorting the plans. He could not decide which was best simply because he did not understand how term insurance works. If you too are in a similar boat, you may need the assistance of an insurance broker.
Cost is a factor, but a lower cost should not be the only reason why you buy an online term plan. When you buy an offline plan from an agent, he assures you of providing all the help you need even after the sale is completed. So if you feel you would need help with renewals, claims, etc. later on, stick to an offline term plan.
Also, there is a risk of falling into an insurance scam when buying a term plan online. Unfortunately, there are many fraudulent insurance portals that always target the unsuspecting proposers. If you are not vey conversant with the online world, you may fall prey to these frauds.
Lower awareness
There still is very little awareness about the online term plans. As a result, a majority of the people do not know about the convenience of these plans. This is a major factor that holds many people back from buying the term plans over the internet. If you have a proper understanding of how insurance plans work and are comfortable dealing with the plan yourself, go online and buy a term plan from a reputed insurance provider. Awareness is the need of the hour!
The bottom line
So as we see, term plans are available online for everyone. However, the system only works well for those people who know how the online sphere works. It is convenient, but it makes you work by yourself, something that may be intimidating at times. The online plans therefore are best suited for people well conversed with the digital space as well as the insurance industry. If you do not happen to fall in these categories, then stick to the offline term plans. You can always look for the suitable plans, compare them and read some reviews about them online. But stick to an offline purchase till the time you are more aware and better placed to complete the deal online.