How an Online and Offline Term Plan Differ from Each Other

November 05, 2018

Please note, these are just methods of buying the insurance. The policy in essence remains almost similar, barring a few differences mentioned below. 

• Premium:

  The premium offered in offline plan is higher.

  The premium offered in online plans is lower.

• Claim settlement ratio.

  There is no clarity in case of offline plans.

  Insurance companies do not need to disclose the claim settlement ratios of online plans. The ratio, which they give to the Insurance and Regulatory Development Authority (IRDA), is a combination of both online and offline claims.

• Conditions:

  Most of the insurance plans cover accidental deaths and PDB. (offline)

  The premium in different online plans can vary considerably, especially in the case of term plans offered by different insurers. Most of these term plans do not cover accidental death, critical illness, or Permanent Disability Benefit. (online)

• Claim settlement: 

  This is done by the agent or the broker. He becomes the first underwriter. (offline)

  A nominee claims for the settlement amount if the policyholder dies. The nominee will have to get in touch with the company directly, through calls or other means for claims.(online)

   It is advisable to weigh the advantages and disadvantages of both the methods when looking at buying. Only after careful consideration, take a decision as per your convenience. 

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