Why Online vs Offline Term Plans Have Different Premiums?

Written by : Knowledge Centre Team

2025-11-02

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The cornerstone for your financial planning should be to avail a term plan whether it is offline or online. Simply put, a term insurance plan is a life insurance plan which protects your family from any unforeseen eventuality. This means that the financial future of your family is secure even if you are not around. What’s more, with the advent of online term plans, you can easily get a term plan at affordable rates. Now, if you have wondered why online plans are more affordable than the traditional offline ones, read on to find the reasons explained below:

Cost of doing business: These days a large number of people want to avail a term plan online, which is easier and hassle-free. As the number of online clients increases, the insurance companies have better and more affordable offers. At times, you have noticed that the plan which is sold by an offline agent is more economical when it is compared online. This is precisely because of the reduced cost of doing business.
Life insurance companies do not have to invest in tedious documentation: In the offline process, the insurance company has to physically verify the documents of clients and then upload in their system. This is quite time-consuming. Alternatively, in the online process, the client easily uploads the documents along with the client’s credentials online. Thus, the insurance companies save operational costs – there is no need to maintain physical thick bundles of copies,
nor there are additional costs for upkeep and maintenance.
Insurance companies save on agent fees: Insurance agents or commissions charge up to 30% of their fees while selling you the offline term plan. In the case of online term plans, there is no requirement of paying an agent's fee, and thus you end up saving on your premiums.
Life Insurance companies save on underwriting process: The underwriting process allows the insurance company to assess whether you are suitable for receiving the insurance policy. This process, in the offline mode, can take a long time – as files travel from one office to another. But in the online mode, this process can be completed within days, even in the case of additional documents, or medical tests being required. Thus, you save on your hard-earned money on premium payments.

Benefits of Online Term Plan:

All information at your disposal: Once you visit an online term insurance company’s website, you will get complete details about the product, right from the premium payments to any additional benefits or top us, if any. This transparency is rarely available while purchasing an offline product. Thus you should visit the online insurer’s website before purchasing an online term plan.
Easy claim processing: Another benefit of online term plans is that you get access to hassle-free claim processing, without making rounds of physical offices. You can easily complete the steps required to avail any claim online.

How much term insurance claim do you need?

According to market experts, your term plan should be more than 15-20 of your total annual income. This will ensure that your financial dependents will have a secure financial future. For instance, if your annual salary is Rs 8 lakh, then you should at least get an online term insurance of Rs 1 crore.

Conclusion:

If you are looking to avail an online term plan for your family, you can zero in on the iSelect Smart360 Term Plan by Canara HSBC. It is a highly flexible term plan that can be aligned to your life stage through different options for not only coverage, but also for premium payment and benefit payouts. Checking premium payment for the plan is also easy. If you want to check out the premium quote, go for the iSelect Smart360 Term Plan. It gives a premium amount based on your age, gender, habits, education, and annual income. You can get a wide slew of benefits to customize your plan, like 100% return of premium, limited pay option, whole life coverage – up to 99 years - and terminal illness cover.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.