Difference Between Online and Offline Term Insurance Plans
Updated On Apr 26, 2021
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Life insurance plans are of paramount importance in securing the financial security of the family of the insured in the event of their sudden demise. But getting an insurance policy can be a confusing task and it can be obtained either online or offline. While buying the plans online, it is possible to compare different insurance plans and buy from an established brand. While choosing to buy offline, the policy details can be procured from the agent.
Also Read: Term Vs. Whole Life Insurance: Which is Right for Me?
Online Vs Offline Term Insurance Plans
The online term insurance plan is considered more flexible than the offline term insurance plans, as they do not involve any agents in-between. But the hassles of securing an offline plan is easy as everything is handled by the agent. The key difference between the online and offline term insurance plans are as follows:
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Term Insurance Plans |
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Basis |
Online plans |
Offline plans |
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Ease of buying |
This can be purchased at the comfort of one’s home. The plans can be bought after comparing the different plans online |
Offline plans are tedious to purchase when compared with online plans. |
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Involvement |
With online plans, the insured will have direct dealing with the insurance company. |
The insurance agent comes as a middle man between the insurance company and the insured. |
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Cost |
Online insurance plans are comparatively cheaper to buy. |
The insurance company will offer a small commission for the agent, which will be added to the cost of the insurance. |
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Benefits |
Online plans cover only death benefits. Additional riders such as disability benefits, critical illness cover, and accidental death rider comes at an additional cost and can be chosen easily from the online website. |
The agent may or may not inform about the additional riders that can be bought with the term insurance plan. |
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Responsibility |
With online term insurance plans, the sole responsibility of the plan vests with the individual policyholder. |
As everything about the plan is taken care of by the agent, it involves fewer hassles. |
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Zero Fraud |
The terms and conditions listed on the company’s website will be assessed by the individual and they can also hold the document for reference in the future. As the terms are transparent, there is less chance of fraud. |
There are high chances of the agent manipulating the terms and the facts regarding the plan. |
Reasons Why Online Term Insurance Plans Are Better Than Offline Term Insurance Plans?
Term insurance plans are capable of rendering high cover for the families of insured at low premiums. The reason why online term insurance plans are better than offline plans are as follows:
- Online plans are at least 30% cheaper than offline plans.
- There is no agent involved in the online plan and the insured is connected directly with the insurance company.
- Buying the insurance plan online is easy, quick, and also hassle-free. There is no need to wait for the agent or stand in long queues.
- It is possible to compare multiple plans and mitigate errors.
- Online plans offer access to customer support 24/7 with regular updates on the policy.
Check: Difference Between Money Back and Term Insurance Plans
Tax Benefits Under Term Insurance Plans in 2021
Bottom Line
The Claim-settlement ratio is an important aspect to be looked for, before choosing an insurance company. This information will be easily available while buying plans online. Thus Online policy buying is much more beneficial than buying through an agent.
