Should you buy retirement insurance plans via Online or Offline mode?

admin | July 27, 2022 | 0 | Insurance


Planning your finances is an important step to ensure you have a financially stable retired life. While it is necessary to save and invest your money while you earn, it is also important to make the right choice of investments. If you end up taking high-risk bets, there are chances you might end up losing your money. On the other hand, taking only safe bets may not fetch you expected returns that may be sufficient for your golden years. Hence, the balance of risk and rewards is an essential consideration when planning your finances for retirement.

Among the several alternatives to choose from, a retirement insurance plan is a smart choice. It not only provides financial stability once you retire, but also certain post-retirement benefits like tax savings and coverage for medical treatment while alive. For retirement planning, a pension plan is a commonly used investment product. This plan provides a consistent flow of income just like a regulated form of pension provided to employees in the past.

Selecting a suitable pension plan requires you to consider your present, as well as future requirements. Only after a comparison of the pay-out and other features offered by different insurance companies, you can make a decision. In this process, a retirement calculator is a nifty tool that comes in handy. Once you have decided which plan provides sufficient coverage, it is important you decide whether you should buy it online or offline.

This article details which can be the ideal mode of buying your pension plan. Continue reading to know more.

With the popular use of digital technology in all walks of life, from shopping your groceries to carrying out high-ticket financial transactions, online has become the new normal. Hence, retirement plans are also available online. If you are confused about whether you should buy them online or offline, here are some points basis which you can decide:

  • Buying convenience

Shortlisting and buying life insurance plans, in general, can be a tedious and time-consuming activity.  Considering the paperwork that is involved along with any medical tests, it can be a lengthy process when bought offline. However, an online policy can be bought from the convenience of your couch, office, or even your smartphone, squeezing all your life’s important decisions between a busy schedule. You need not visit the insurance company’s office to submit your application and complete long documentation requirements. Further, online plans are cost-effective in comparison to offline policies, since they eliminate the middlemen that are otherwise involved in selling your policy, and thus, bringing down overhead costs for the insurance company. These savings are passed on to you, the policyholder, as a discount on your premium.

  • Flexibility in purchase

During retirement planning, online purchase helps a user compare several policies. This comparison is not just possible for its premium, but also other factors like the terms of the policies, the features provided by the insurance plan and even the amount guaranteed. To facilitate an online comparison, insurance companies provide free tools like a retirement calculatorthat helps in deciding which policy checks all the right boxes for you.

However, if you are not familiar with technology, you can still choose to visit an insurance company’s office or schedule an appointment with your insurance agent. They can help select a favourable policy based on your needs.

  • The policy’s sum assured

There are commissions involved when it comes to offline retirement plans. These costs, at times, offer plans with a lower sum assured as compared to online plans. Some insurance companies even offer online-exclusive insurance plans that have a higher sum assured for the same premium

  • Comparison of important metrics of the insurer

When buying a pension plan, it is important you look at several company ratios such as the claim settlement ratio. This metric denotes a reputable insurance company basis the pay-out. While these important numbers can be found online, it is difficult to know the ratio of the insurer when buying a policy offline.

These are some different pointers to consider when buying your retirement plan. Online is definitely a preferred choice for new-age buyers whereas traditional offline plans may be a choice for people that aren’t well-versed with technology. Hence, make a rational choice considering the above advantages and limitations and do not base your decision based on the advice of family and friends.

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