Discarding Existing Term Plans For Cheaper Online Alternatives - Greyfont

Discarding Existing Term Plans for Cheaper Online Alternatives


Nowadays, a lot of individuals consider buying term insurance policy even with the underlying fact that it provides higher insurance coverage in affordable premium rates with no returns. With the increase in popularity of term insurance plans, most of the insurance providers offer online term plan which has a simple and hassle-free process of purchase.


There are numerous benefits of purchasing an online term plan. Let’s take a look at why the insurance seekers should ditch existing term plans for cheaper online alternatives.


What makes the online Term Plan Affordable?

The offline purchase of term plans includes a lot of processing fees and paperwork which is reduced if the plan is bought online. As the whole process of purchasing is done online, these benefits are offered to the customers in form of discounts. Moreover, the buyers also do not need to give any type of agent fees. Besides this, the profiles of online buyers are better than offline buyers, therefore, the mortality cost of online buyers are lower.


When to Discard the Existing Plan for an Online Plan?

An individual can consider purchasing an online term plan, if he/she wants coverage at a lower rate. However, it is important to keep certain important factors in mind:

  • Age- The age of an individual is one of the important factors to consider while purchasing a term insurance plan. Making a switch at an early stage makes total sense because the premium amount of an online term plan bought at an early age costs cheaper as compared to the premium amount of plan bought at old age. 
  • Digitalization- If an individual is comfortable with the online process then he/she can make a switch from offline term insurance to online term insurance. Moreover, the buyers can also compare the plans online and choose the most beneficial plan according to one’s own requirement and suitability.


When should you make the shift?

Purchasing an online term insurance policy or making a switch from offline to online term plan while being young is beneficial as for young buyers the premium rates of the policy are cheaper. This is because young people are less prone to health risks. Thus, for individuals, 45 years and above it is better to stick to the old plan as shifting to new plan even online can prove to be more expensive than the existing plan.


Benefits of Purchasing an Online Term Plan

  • Purchasing the policy online helps the buyers to know the detailed information about the plans.
  • They can compare the plans online and choose the most beneficial plan according to their own suitability.
  • Moreover, online term plans are more cost effective as compared to the offline plans.
  • The process of purchase of online term plan is simple and hassle - free.
  • The online process also helps the insured to be updated with the policy status, so that they do not miss to pay the premiums of the policy on time.



Understanding all the advantages and disadvantages, an individual can always sift to online term insurance if he/she thinks that they are paying too much for their existing policy. However, it is important to keep the important aspects in mind like age and policy tenure while making a switch.  


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