Claiming A Term Insurance Plan Online: Is There A Catch?


Claiming A Term Insurance Plan Online: Is There A Catch?

Term insurance policies are a type of life insurance, paying out the sum assured if the insured passes away during the policy’s term. Individuals can purchase a term plan through an agent or an offline channel. One can also opt for online term plans if they are looking for a more convenient way to purchase this kind of financial protection. Most insurance providers offer policies via online as well as offline channels. We examine the advantages of both channels.

Term insurance plans: online vs offline

Because no agents are involved, online term insurance benefits are considered more flexible than offline ones. However, securing an offline plan also requires minimal hassle because the agent often handles everything. The following are the key differences between online and offline term insurance plans:

Based on Online application Offline application
Buy with ease This can be purchased from the convenience of one’s own home. After comparing the various plans online, the right one can be purchased. When compared to online plans, offline plans are more difficult to purchase.
Involvement The insured will have direct contact with the insurance company with online plans. The insurance agent acts as a go-between for the insurance company and the insured.
Price Online insurance plans are less expensive to purchase. The insurance company will pay the agent a small commission, which will be added to the insurance cost.
Advantages Online plans cover only death benefits. Additional riders, such as disability benefits, critical illness coverage, and accidental demise coverage, are available for a fee and can be selected easily from the online website. The agent may need to inform you about the additional riders available with the term insurance policy.
Responsibility The individual policyholder is solely responsible for handling the plan with online term insurance benefits. There are fewer hassles because the agent handles everything about the plan.

Are online term insurance plans better than offline term insurance plans?

Term insurance plans can provide high coverage for insured families at low premiums. The following are the reasons why online term plans can be better than offline plans:

  • Online plans are less expensive than traditional plans.
  • An online plan usually does not involve an agent; the insured is connected directly with the insurance company.
  • Purchasing insurance online is simple, quick, and hassle-free. There is no need to stand in long lines or wait for the agent.
  • Multiple plans can be compared, and errors reduced.
  • Online plans provide digital customer support as well as policy updates regularly.
  • Term insurance tax benefits are available as much with online plans as with offline plans.

Advantages of term insurance online:

Reduced price:

When comparing online and offline term insurance premiums, you may notice that online policies have lower premiums. Because you purchase an online policy directly from the insurance company, you avoid paying third-party agent fees. When buying insurance through an agent, your bonus increases to help cover the agent’s cost.


You can buy an online plan from the comfort of your own home in minutes. Online plans help you save time by reducing paperwork and allowing you to pay online. When the company receives your first premium payment, a soft copy of the policy is issued. The entire procedure should take a few minutes.

Advantages of offline term insurance:

Expert assistance:

Not everyone is aware of the advantages a term plan offers them or their family. Agents can explain the value of a term plan, the term insurance tax benefits you can enjoy, and assist you in choosing a plan that ideally suits your needs. They also assist you in completing your application, making sure you don’t omit any essential information.

Choosing the correct sum:

Many get term policies with considerable sums promised because they can pay the premiums. Unnecessarily high life insurance coverage, however, will only result in higher premium payments. An agent will assist you in choosing the right type of coverage when you buy your term policy offline.

Note that some term insurance tax benefits may be applicable only to those who are paying taxes under the old regime.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘

Tax benefit is subject to change in prevalent tax laws

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