Should You Buy the LIC Term Plan Online or From an Agent?
A few years ago, LIC triggered a small revolution in its system by launching LIC online term plan. This is known as LIC e-Term and you can easily buy it from the site of LIC Direct. The LIC e-Term has evolved as one of the game changers in the insurance market as it is approximately 35% cheaper than the offline term plan of LIC but is slightly expensive than most of the online pure protection plans of various private insurance companies. However, the brand value of LIC has made the e-Term plan as one of the most preferred choices for most of the insurance buyers.
There are two main reasons responsible for the low cost of the LIC online Term plan than purchasing it offline. One is the absence of intermediary like an agent and the second is – if you are purchasing a term plan offline, you are perceived as one of the low-risk customers by the insurance company. This is because the commission of agent is given to you and being educated you must be having health insurance and should be taking care of your health.
However, despite the lower premium and cheaper rate of LIC e-Term plan, many people still call an LIC agent and purchase a policy through him/her. If you are also one of them, then here we are discussing which is better. Should you buy the LIC Term plan online or from an agent?
Online Purchase of Term Plan vs Purchase from an Insurance Agent:
India has become a net-savvy country and in past one decade you can purchase everything online. Even then there are people who believe in the concept of buying after touching and this is the reason people do not trust the online transaction for term plans. Let us explore more reasons to make you realize that online purchase of term plans is comparatively better than buying it through an insurance agent:
Communication with the Brand:
- Insurance Agent: Buying an insurance policy from the insurance agent does not allow you to interact with the insurance company directly. Instead, chances of being misled are high. Moreover, the details of the company are not easily accessible and you have to be dependent on the insurance agent for everything.
- Online: On the other hand buying online term plan gives you freedom of interaction with the LIC directly. Moreover, you can get the first-hand information about LIC and its term plan. You can easily compare the quotes of different term insurance providers online and can check the reviews of the company online without investing much time and energy. In this way, the online purchase of the policy enables you to make the most informed decision about the product. Apart from this, you cannot be fooled in online mode or there are very little chances of fraud.
The Cost of the Product:
- Insurance Agent: Purchasing a LIC term plan through agent includes his/her commission and other intermediary charges. Resultantly, the premiums become costlier than if you purchase it online. Moreover, in this fast-paced lifestyle, you cannot afford to run behind the insurance agent and call him/her again and again. The agent, on the other hand, comes with a pile of documents that you need to fill or sign for taking a plan, which again is a headache.
- Online: The Life Insurance Corporation (LIC) of India saves the cost of paperwork, distribution, and commission of the agent when you purchase online. As a result, LIC passes these benefits to you in the form of discount or low cost of the premium. In this way, you end up getting an LIC term plan at lower premium rate online.
Safer Mode of Payment:
- Insurance Agent: The insurance agents most of the times take the payment of the premium either by cheque or cash. Even though the cheque payment is safer than cash payment, but it requires at least 2 to 3 working days to get the cheque honored. This delays the policy issuance process. Moreover, with a cash payment, there are higher chances of fraud as well.
- Online: Your transactions made through online modes such as credit card, debit card, or net banking goes through the process of secure payment gateway. Additionally, it can be tracked very easily and hence saves you from frauds as well.
A Convenient Mode to Buy:
- Insurance Agent: You have to chase the insurance agent physically for purchasing a plan. Additionally, you have to fill up the form and wait for the plan to get issued. In this way, the entire process is really time-taking starting from contacting the insurance agent to issue of the policy.
- Online: When you plan to purchase LIC term plan online, you do not have to do much physical moment. Instead, all you need to do is to go to the website of LIC and purchase the plan online without much hassle.
- Insurance Agent: The insurance agent informs you about the various sum assured available and you may select the one that is suggested by your insurance agent only. Moreover, this selected sum assured can be the lowest.
- Online: On the other hand, selecting an insurance plan online gives you an opportunity to see the various options of sum assured provided by LIC. You will be able to see the sum assured from Rs.10 Lakh to Rs.5 Crore and it will entirely be your choice to select the most suitable sum assured.
- Insurance Agent: Most of the insurance agents hide a few details of the term plan that you take. For example, the instance of suicide is covered in the term plan only a year after the policy. However, your insurance agent may hide this information from you.
- Online: Contrary to the above details, purchasing a term plan online, you will get to know complete details with all the inclusions and exclusions. So, there are hardly any chances of miss-sold.
Over to You!
Gone are the days when purchasing an insurance policy from an agent was in trend. Probably, your parents were doing the same as there was no internet and the mode of payment used to be in cash or cheque.
At that time, running behind the insurance agents and bearing their tantrums was the only way to get the policy.
However, in this modern era where you are online, all the times and e-commerce is used extensively, Check LIC latest plans and purchasing online is recommended. This is because, neither would you pay some extra hidden charges, nor you would be unaware of the inclusions and exclusions of your taken plan.
Author Bio: Pankaj Singh is a senior digital marketing executive having 2 years of experience in SEO, SMM, SMO, blogging, etc with a wide range of content marketing skills. He is well qualified literate in this field.