Benefits of buying Insurance online than through an agent

To begin with, purchasing an insurance policy is not a one-step process. There are various factors associated with it, the analysis of comparison which can often cause confusion among buyers. One of the many doubts that people generally have with regards to insurance policies is where to purchase one from – Online or Agent??

The best way to find an answer to this question is by understanding their differences.

Purchasing an insurance policy online saves you from several additional charges related to intermediary services. To state it more clearly, the absence of these extra charges in turn reduces the cost of premium that you pay for the insurance policy.

In comparison, buying an insurance policy from an insurance agent actually involves cost for paperwork, commission, distribution and so on, most of which fall under the intermediary charges. Hence, an insurance purchase through an agent will come with higher premiums.

Interaction with the brand

Purchasing an insurance policy online lets you interact with the brand directly. Having complete access to the company not only gets you first-hand information about the company and its product, but also request for quotes and read reviews online. The option to compare and buy an insurance plan onlineis its biggest advantage. In totality, you can make a well-informed decision when buying an insurance policy online.

Conversely, when an insurance agent is involved, you do not get to interact with the brand directly. And since you do not have accessibility to company details, your only way out in this case is relying on what your agent says.

Claim settlement ratio

Claim settlement ratio is an essential aspect (or some would say KPI) that can largely affect your insurance purchasing decision since it defines in %age the insurance company’s financial capacity to settle all claims. Now, this is something that you would generally come across when going through the company’s website, while purchasing a policy online. However, when it comes to an insurance agent, there is no guarantee that such crucial information will be shared with you. As a result, you might even end up purchasing a policy from a company that is in-solvent.

Safer payments

Insurance companies take strict measures to ensure that all purchase payments made online are safe. When you make payment for a policy online via debit card/credit card/net banking, your payment passes through a secured payment gateway, and the transactions can be easily tracked.

Whereas, when buying policy through an agent, you hand over the premium payments, be it cash or cheque, to the person. There is always a chance of human error in the form of the cash/cheque getting misplaced and thereafter misused*.

*In case of cheque, it can happen when the payee is not mentioned.

Sum Assured

When buying a term insurance policy online, you directly come across the various sum assured options, right from let’s say ₹10 lakh to one as high as ₹5 crore. You can then select an insurance plan that aptly meets your requirements.

But when you opt to buy the plan from an agent, the individual might just tell you about a select few options where the commission is higher. In a scenario like this, you might end up agreeing to a health insurance cover which isn’t adequate or apt for you.

Convenience of buying

Convenience is one of the biggest points of difference between making online insurance purchase and buying a policy through an agent.

Buying insurance online gives you the same ease that any other online purchase has to offer. You can make the purchase at your own preferred time and from the comfort of your home. And the best part is that an insurance purchase online is amazingly time saving. Whereas, you will have to free up time and meet an insurance agent to buy a policy from the individual. Needless to say, the offline process is more tedious and time-taking. You will have to fill in a detailed form which will then be forwarded to various local hubs and later on sent for underwriting. This is the stage where the decision concerning whether or not to approve the policy is taken.

Fraudulence

It is not unusual to come across cases of fraud related to purchase of insurance policy from an agent. Often at times, insurance agents may skip on the terms and conditions, and influence the decision of the customers in favor of a particular insurance company. These manipulations lead people to expect highly from the insurance company only to find out later on that the plan they have is not all that suitable.

When buying online, since you yourself go through and verify all details during online purchases, cheating does not come in the picture. In here, you must take the responsibility to read through the terms and conditions. Moreover, when you can compare and buy aninsurance plan online, you will do so based on your requirements and conveniences. Here you do not have people misguiding you or influencing your decision.

If you are still confused about which way to go when it comes to purchasing an insurance plan, you need to consider the key factors stated above. You would obviously need to go with the process which is securer, more convenient, more beneficial, well within your budget, and quicker – buying insurance online ticks all the boxes.