What is the better way to buy term insurance, offline or online?

,Name withheld on request

The advantage of a family floater is that it is usually 10% to 15% cheaper than buying an individual policy. You can use these savings to increase the sum assured of the family floater. Chances of both the spouses making a claim and ending the entire sum insured are slim. However, if either of you has a chronic illness, it is better to buy an individual cover. This will ensure that the underwriting decisions for you will be independent of each other, and if one person makes a claim, the other person’s no-claim bonus will not be affected. Your son can be the proponent of your health insurance, where you will be the insured. Product formulation will not change. In the proposal form, the relationship between the insured and the proposer needs to be declared. Under section 80D, your son will be able to claim a deduction for the premiums paid for your health insurance. The deduction limit allowed for parents is higher than the limit allowed for self, spouse and children. Considering your age, your son will be able to claim deduction up to 50,000 towards your health insurance premium.

I am 35 years old, I want term life insurance. Offline agents are bidding at a lower price than what I am getting online. Should I buy online or offline?

—Nilesho

The channel through which you make purchases, whether online or offline, will not change the basic product structure. While choosing a channel, you should build your convenience regarding the following aspects. Firstly, the application process should be transparent and truthful. The moderator should encourage you to make full disclosure about your medical history and smoking status. Second, the payment should be made directly to the insurer and not to the intermediary. There have been some cases, even online, where payment is accepted by an intermediary. This is a strict number. Your rights as an insured are affected when you make payments to the intermediary instead of the insurer. Third, there must be clearly identified procedures established with the arbitrator for making a claim. For term life, the claim will be made by your family members. Therefore, it is important that the arbitrator is easily accessible to the nominee. Moreover, term insurance is a relatively straightforward product. In individual term insurance there is no exclusion except suicide in the first year. So, assuming that you are okay with the insurer, you can choose to shop offline when the premium is low.

Abhishek Bondia is the Principal Officer and Managing Director of SecureNow.in.