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Online Vs Offline Term
Insurance Plan

Online Vs Offline Term
Insurance Plan

When we talk about Life Insurance plans, the market in India offers many options. Of the various life insurance options available for buyers, Term Insurance Plans are considered the best for two reasons.

  • Low Premiums
  • High Risk Coverage

If you are in the preliminary stage of financial planning, then you must be aware that there are two ways of buying term insurance - Offline and Online. With online buying still considerably new in India, people generally tend to buy term plans in the traditional offline way (face to face sale) through an agent. However, buying insurance online has many benefits. In this article, we do a step by step comparison of various factors affecting online and offline mode of buying to give a perspective of how both work.

Cost

Online term insurance plans are cheaper as compared to the offline options as a customer deals directly with the company without the mediation of any intermediary or agent. Offline insurance, on the other hand, is sold by agents and their commission leads to an increase in premiums for the customer.

Disclosure of facts

When it comes to filling the form of online policies, the buyer has to fill all the details himself, whereas in offline plans customers can rely upon the agents to fill up the forms. If the agent makes a mistake while filling up the form, the insurance company can reject your claim in the future. This is a risk you should not be willing to take. Alternatively while filling up the form in an online sale, you should make sure that you give accurate and complete information. Be transparent with the Insurance Company

Sum assured

Online plans offer sum assured of 5 lakh to 5 crores and above at low premium costs. Offline plans also offer the same, but due to the high cost of premiums, people generally opt for low sum assured. An Online term plan with low sum assured works well for the individual since there are multiple options to choose from.

Claim settlement ratio

While buying online life insurance plans, you can easily research about the claim settlement ratio of various providers and then select the company which has the best claim settlement ratio. In an offline buying you are however solely relying on the insurance agent.

Flexibility

All it takes for you to buy a policy online is a computer with internet connection and a credit/debit card. Just go online, evaluate the policies available, choose the best available option, pay the premium and you are done with the purchase process. . On the other hand, buying an offline insurance policy will necessitate multiple meetings with the agent which might not be necessary at all in an online process. All these factors favour an online purchase as it is cheaper, negate the probability of fraud, offers high sum assured at low premiums and is a more convenient procedure.

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Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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