Buying Insurance Online vs Offline-What’s the difference?

In India, insurance penetration has increased from 2.7% in 2000 to 4.2% in 2021. This percentage is estimated to increase further. In the past, people used to buy health insurance through offline channels. Agents would meet with you, assess your needs, and recommend a policy.

However, online insurance platforms are available now to simplify things. You can go through different policies and choose one yourself. But which is the best way to buy insurance – online vs offline? You will find a clear answer in this article.

Online vs Offline – How to Buy Insurance?

Both online and offline purchase methods are suitable for buying insurance. However, most modern consumers prefer buying health insurance online. Here’s why –

It offers convenience, transparency, accessibility, and often cost-effectiveness. Buying insurance online allows you to compare multiple plans, customise coverage according to your needs, and complete the process from the comfort of your home.

Online platforms often provide educational resources and tools to help you make well-informed decisions. So, even if you are new to certain insurance terms, you can educate yourself to choose what’s right for you.

Cutting out the middleman translates to lower premiums. Online buyers might get additional discounts for online purchases.

Buying Insurance Online

It is a straightforward process for health insurance purchase online. Here’s what you can expect:

• Visit the Insurance Platform: Visit the insurance platform where you can explore different plans.
• Get a Quote: Provide basic information and the type of insurance you need. The platform will then generate quotes for plans based on your profile.
• Compare Plans: Take your time to compare coverage details, deductibles, and premiums for different plans offered by the insurer.
• Customise Your Coverage: Many platforms allow you to adjust coverage levels and add-ons to tailor the policy to your specific needs.

Purchase and Activate: Once you choose a plan, follow the online instructions to complete the purchase and activate your policy.

Pros and Cons

Buying Insurance Offline

The traditional method of buying insurance involves contacting a health insurance agent. Here’s a breakdown of the process:

• Contact an agent: Find a licensed agent who represents multiple insurance companies. They can offer personalised advice based on your needs.
• Needs Assessment: The agent will discuss your coverage needs, risk factors, and budget with you.
• Plan Recommendations: Based on your assessment, the agent will recommend plans from various companies they represent.
• Policy Review: The agent will explain the details of the proposed plan, including coverage, exclusions, and costs.
• Policy Purchase: If you agree with the plan, the agent will handle the application and policy purchase process.

Pros and Cons

Difference Between Online and Offline Insurance Policy

Let’s discuss the difference between online and offline insurance policy.

• Cost: Online policies are generally cheaper due to lower overhead costs.
• Interaction level: More interaction is involved in buying offline insurance.
• Customisation: Online platforms give many customisation options to design the policy to fit your needs.
• Support: Agent can support you in filling out the paperwork and clear any doubts while doing so.
• Research: More research is involved on your side while buying online.
• Discount: Online insurance comes with exclusive discounts given only to online purchases.

Key Takeaways

Whether you buy insurance online or through an agent ultimately depends on your individual preferences, priorities, and comfort levels. While online purchases offer significant advantages in terms of convenience, cost-effectiveness, and transparency, offline methods provide personalised guidance and assistance.

If you are comfortable with health insurance reviews on your own, it’s best to cut the agent out and buy online. If not, an agent can help you choose the right policy.