At different stages of our life, we have different goals. After the birth of your child, you would want to save enough for their education. Before your retirement, you want to have ample savings for a financially secure retirement. If you purchase a home with the help of a loan, you will need a corpus to settle the loan. This can be achieved by investing in a financial instrument that offers you guaranteed returns on maturity.
One such instrument you can go for is an endowment plan. It is easier nowadays to purchase this plan online. However, you can also opt for the offline purchase option as well. So, which option is more beneficial for you? Read on to know more.
What is an endowment plan?
This plan is a type of life insurance policy offering dual benefits of investment and insurance. The investment is done in a particular fund of your liking. The returns that you get from this investment can be used to accomplish life goals and live a financially independent life. On the other hand, the insurance provides life cover to your loved ones from different life risks in your absence. If you were to pass away suddenly during the tenure of the policy, the insurer will pay death benefits to your family to help them stay financially stable.
What are the differences between online and offline purchase?
The following are the factors that will help you explain the main differences between these two types of purchases:
- Pricing
One of the main factors that people consider before purchasing a life insurance policy is the cost. How much would the policy cost them and what would be the impact on their expenses? When you opt for online purchase of an endowment plan, you will notice a huge difference in the cost of the policy when compared to offline purchase. When you purchase the policy offline, you purchase it from an insurance agent. Many times, these agents tend to charge more for a policy. There are also different hidden fees that they charge to the customer.
This is not the case with online purchase. As you are directly buying from the company, there are no middleman, and you are charged considerably less. This helps you save money.
- Comparison
There are different insurers offering different types of plans. This means the cost would be varying. Online purchase helps you compare these plans first before you make a selection. This also helps in understanding how the service of that insurer is based on their claim settlements, pay-outs, and more. You also get real-time customer reviews to get a clearer picture.
On the other hand, an agent might try to sell you a policy that might not benefit you, but, could profit them. As many agents belong to a single insurer, which means, you might not get a variety of policies to select from.
- Convenience
With online purchase, you have the option of convenience. You can purchase this plan from the convenience of your home or office or even while on the road. This convenience is further enhanced by the fact that there is no time restriction when it comes to online purchase. You can purchase it any time of the day.
On the other hand, you are required to book an appointment with the insurance agent in order to purchase your policy. Unavailability of the agent means more delay in purchasing the policy.
- Information
While it is easy to find information about the policy online, the technical information and jargon might confuse a buyer. Also, you might not know which plan is suitable for you; this could lead you into buying the wrong plan. An insurance agent can be helpful in such situations as they are aware of the technical information of a policy. They might also help you in selecting the policy that would correctly suit your needs.
While these are just a handful of differences between online and offline purchase, the final decision is based on your preference. If you were to purchase the policy online, do use the life insurance calculator before you opt for the policy.
