Home Virtual Life Insurers vs. Life Insurers with Country Wide Presence?

Virtual Life Insurers vs. Life Insurers with Country Wide Presence?

In the insurance market, companies are increasingly introducing online term plans for lesser premiums to customers. On one side, it is exciting news as it means more savings. However, price should not be the main criteria for choosing something as vital as term insurance. You need to analyze the pros and cons of the online and offline methods and select the best term insurance plan suitable to your needs.

Below are a few points that will help you make the right decision between online and offline term insurance:

Premium Cost

Online term plans are on an average 40% cheaper than the offline options. This drop is because there is no intermediary involved in the procedure. You are in direct contact with the company via their website. Hence, there is no room for any commission to broker or agent.

In an offline plan for every premium paid, a certain percentage goes to the broker. However, when you buy an online term insurance policy, you can save all the costs and the company passes on these benefits directly to you in the form to lower premiums.

However, low premiums should never be the criterion for choosing the best term insurance plan for your family. Before you fall in the trap of insurers offering low premiums, look carefully, and do not forget to disclose your medical history to avoid claim rejections.


Imagine going to different insurer’s branch office each time to know your insurance quote and compare term insurance plans manually. This will undoubtedly be an inconvenient way of going about to purchase insurance. It becomes effortless to compare term insurance plans online.

Also, there are various web aggregator sites available as well that will help you compare policies and find the best term insurance plan. Even an individual comparison of insurance policies is not a big task online.

Time Involved

Time is money, and therefore, time saved is money saved. When you buy a policy online, you can complete the purchase process within few minutes. You can buy the best term insurance plans online anytime suitable to your schedule. It is not time-bound.

The offline process is time-consuming. You must visit the insurance company’s branch office to buy a car insurance policy. Even if an agent is involved, the agent will come to your place at a pre-decided time, and then the process shall move forward.


In an offline purchase, you meet an executive or an agent who sells you the policy. The chances are that you might purchase something that you might not need, such as an unnecessary add-on.

In the online method, the control lies in your hand. There is no agent involved. If you face any problem, you can speak with the insurance company executives who will provide you all the information about the inclusions and exclusions of the policy so that you can make an informed decision regarding the purchase of term insurance plan online. A fully informed decision will ensure the best term insurance plan for you and your family.

Claim Settlement Ratio

When it comes to claiming settlement, there are specific guidelines set by the Insurance Regulatory and Development Authority, (IRDA). For any insurance claim within the first two years, insurers have a definite timeframe of six months to investigate and settle the application after that.

It doesn’t matter whether you have taken the policy online or offline in this case; the claim settlement will go through the same procedure. There is nothing a broker can do too. Keep in mind that the claim settlement ratio mentioned on the insurance company website is a combination of both online and offline plans.

Claim settlement is of most concern to the buyer as nobody would like trouble while claiming the life cover. 

Term insurance is the most affordable life cover that protects your family in case of death of the bread earner. Reputable insurers such as Max Life Insurance offer Online Term insurance plans in easy steps, which financially secures your family in times of crisis. 


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