Term plans are one of the best types of insurance, owing to the low premium cost and high-value cover. Such plans offer financial security to your loved ones in the case of your sudden demise.
If your current term plan is reaching its maturity, you may renew it either from an insurance agent or through the Internet. However, the latter option has become increasingly popular.
With the advent of e-commerce, numerous life insurance providers have developed an online presence. These websites contain comprehensive information on various plan features and benefits. Besides, you may opt to purchase as well as renew the policy online.
Making comparisons between renewing insurance online versus renewing it from an agent will help you decide the best-suited mode for you. You may take the following six aspects into consideration while making your choice.
Renewing your policy through the Internet is a convenient and flexible option. All you have to do is visit the insurance provider’s website and enter details of your policy. You may make premium payment through National Electronic Fund Transfer (NEFT), Electronic Clearing Service (ECS), Internet banking, debit or credit card, besides other options. You may also renew the policy through an agent. However, it becomes necessary to make arrangements to meet at a time and place suitable for both.
2. Probability of a fraud
While renewing your policy through the Internet, you are rest assured of the authenticity of the service provider. Hence, the chances of fraud are negligible. The same is not the case with an agent. While purchasing or renewing your policy from an agent, there is a high probability that he may swindle customers by promising high benefits. You cannot ignore the chances of the agent being a fraud.
3. Ability to draw comparisons
The Internet contains a plethora of information regarding various term plans. Hence, you may compare numerous options based on their features and benefits, such as policy term, premium amount, renewal policy, claim settlement ratio, and much more. The same is not the case with an insurance agent. As agents work on commission basis, they may push only certain plans. These plans may not be best-suited for your needs.
Purchasing or renewing a policy online gets you in touch with a fully functional company. An insurance agent, however, may go missing or may even retrace the promises made. In order to ensure that there are no issues during your renewal or purchase process, you may opt for the online mode.
Most online term insurance plans have a lower cost as compared to offline plans. This is because there are no agents involved in the process. Hence, there is no agent commission or intermediary cost, thereby providing a better deal. Additionally, the cost of paperwork involved while renewing plans online is negligible. Insurance providers, therefore, pass on this benefit of reduced costs to customers.
6. Information on claim settlement ratio
Claim settlement ratio refers to the number of death claims honored by the insurance provider to the total claims received by them. Greater the claim settlement ratio, better will be the chances of your claim being settled in the future. You may obtain information about the claim settlement ratio on the insurance provider’s website. Agents, however, may manipulate this information. They may hard-sell plans of the company they work for, irrespective of the claim settlement ratio.
All of the aforementioned plans point out to the fact that renewing a term policy online has greater benefits. You may, therefore, take these advantages into consideration and renew your plan through the Internet.