One of the most important parts to maintain your financial
planning is to opt for Life Insurance coverage. Indians have historically
considered insurance as one of their primary investment tools.
Insurance typically have quite a few variants especially in the
life segment. Term Plans being one of the easiest and simplest one as it
provides for high Coverage at a very reasonable cost. Term Insurance Plans are
the cheapest way to opt for high coverage at a very low premium.
You must be aware of two types of term plans available – one is offline, the old fashioned way and other is
online. There is confusion about which is better. To clear the confusion we
take a step ahead to compare between these two types so that you can choose the
one which best suits your needs.
Protection is key to opt for high coverage and Term Plans are the
best to secure your family by covering your risk. In case of the policy
holder’s death, the nominee would get the sum Assured money. Now let’s consider
all the major factors of both of the variants in order to weigh the pros and
The Cost factor
I strongly believe cost is a very important factor when it comes
to choose a suitable plan for you but it must not be the one and only criteria.
You need to give a close look on the fine prints. The Term Policies that are
available online are 30% - 50%cheaper compared to the offline variants.
This is primarily because of offline policies have a very high
agent commission built in which is not applicable to the online variants. So,
all life insurance policies, including Term, is cheaper when bought online. This
is because the agent or the advisor has no role to play in the online purchase
and does not provide the services like Premium collection, medical test
co-ordination, Policy servicing, etc. as well.
Disclosure of facts
In offline policies, your agent does all the paper work for you
and updates you about the progress of work. But on other hand, the
responsibility of disclosure of all material facts lies with you in the online
variant as there is no one acting as an intermediate.
Thus, you get to read all fine prints and are aware of what your
insurance policy can offer you. Always remember
that non disclosure or Misrepresentation of material facts, knowingly or
unknowingly can lead to rejection of Claim and nullification of the policy in
High Sum Assured at low cost
Since online plans are cheaper, they obviously offer higher sum
assured at a lower cost than the offline version of term policies. The new age
term policy that is available online only are offered with a coverage of Rs 5
Lakhs to Rs 5 crores and beyond, subject to underwriting.
In offline mode higher sum assurance is also provided but it is
much more expensive, especially for higher coverage.
The revolution of eTailing has opened doors or online shopping.
Online Term Plans are more flexible as it can be purchased from the comfort of
your house, just at the click of a button. Moreoever, you can view all the
terms and conditions before payment and get your medical tests done, if
applicable at the comfort of your house, except certain tests which needs to be
carried on in the medical centres only. Even the policy bond gets delivered to
your doorstep and renewal premium can be paid online for years to come.
This flexibility is not always available with Offline Term
Policies. Most companies had only offline ones till the revolutionary online
variants started about 8-9 years ago. Now, you can check http://www.easypolicy.com/ to get
the comparisons of all online Term Insurance Policies and purchase it now.
Usually the online
version of Term Policies do not have too many attached Riders or options like
their offline counterparts. They come with only death and accidental death
coverage with additional premiums but in offline mode, there are some rider
benefits like permanent disability, partial disability, and critical illness
With the newer egeneration, we have more screen time than social
dates and so anything available online is also cheaper and can be well
researched before purchase. Thus, with this convenience, we at Easy Policy
could recommend an Online Term Insurance Policy if you are more comfortable
with the internet and savvy. Offline would be better if you are not too
internet savvy and wish to have someone following up with you for the
associated service. Choice is simple and completely yours!