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Online Vs Offline Term Insurance Plans - Know the Difference

Updated On May 03, 2021

Term Insurance is a type of life insurance policy which provides high coverage at low premiums for a specified period of time. If the life assured dies during the specified term of the policy, a benefit known as death benefit is paid to the nominee. A term insurance plan can be bought online (via internet) or offline (via agent). Differences between these 2 can assist an individual to make the best purchasing decision.

Key Differences Between Online and Offline Term Insurance Plans

Below mentioned are some differences between online and offline term insurance plans:

1. Cost Efficiency 

Buying an term insurance via internet levies less cost as the individual does not need to face any mediator or agent for buying the policy. The customer deals directly with the insurance company and the commision applicable on an offline plan does not exist in an online plan. Therefore, the premium amount is less in online plans as compared to offline plans. Also, travelling expenses and other expenses levied during the branch visits are borne by the customer in case of offline purchase. 

2. Purchase Process

In an offline plan, a claim is filed by the agent (allocated by the company) after communicating with the assured whereas in an online plan, the information is purely filed by the assured itself. The chances of occurring an error in the information is higher in case of offline plans as the agent may not be familiar with all the details. The information you put in the forms must be transparent and complete.

3. Convenience of Buying

The online plans just need an internet connection on a device whereas in case of offline plans, the customer has to visit the company’s branch various times. Online plans are more convenient as compared to offline plans as the customer has to go through the whole process of buying the policy which takes up more time and resources. 

4. Plan Comparison

In case of online plans, the customer can research the plans of various companies beforehand to get a better understanding of the available plans. However, the plan comparison is often not possible or is not that easy when one goes for offline life insurance plans.

5. Claim Settlement Process

The claim settlement under offline process is generally undertaken by the company’s agent whereas in online mode, the nominee has to  get in touch with the company via calls or emails. 

 6. Sum Assured

Online plans tend to offer higher sum assured for lower premiums as compared to offline plans where premiums are high and the sum assured is comparatively low.  Online plans may offer sum assured ranging from INR 5 Lakh to INR 5 Crore based on the life assured’s lifestyle and income. 

7. Customer Support

Customer support of online plans is highly efficient . It is active 24x7 with options like web chat, toll free mobile numbers and email service. Offline plans may not have the same customer support service as online plans.

8. Possibility of Frauds

In case of online mode the customer is the one filing the information or making the premium payments so, the possibility of frauds is lower here as compared to offline mode. In offline mode, there may occur frauds because the whole process is supervised by the agent.

9. Grace Period 

The grace period for making the due premium payment is 30 days in case of online plans and 15 days for offline plans. 

10. Free-look Period

If you are dissatisfied with the terms and conditions of the policy, a free-look period of 30 days is given in case of online plans and 15 days for the plans purchases via the offline mode. 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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