You’re sipping chai on a lazy Sunday and scrolling through your phone when a flashy ad screams, “₹1 crore life cover for the price of two pizzas!”
Tempting, right?
Moments later, your neighbourhood agent rings the bell:
“Beta, those online offers are risky. Let me handle it”
Whom do you trust?
How can the same term plan be dirt-cheap online but pricey with an agent?
Grab that chai and let’s decode the drama, bust a few myths, and pick the path that truly protects your family and your wallet.
Why are online term plans so much cheaper than offline ones?
Buying online cuts out the agent’s commission (often 10–20% of the premium), so the premium drops. In fact, online plans can be around 30–40% cheaper.
For Example: A ₹1 crore cover might cost around ₹14,000/year via an agent, but just ₹9000 to 10,000 online.
Anita discovered that her ₹50 lakh cover was nearly ₹3,000/year cheaper online than the same plan through an agent. More money goes into your cover, not someone else’s pocket.
Tip: Compare the same coverage and riders. The cheapest plan isn’t always best if it skips key benefits.
Is paying extra for an agent’s really worth it?
Offline means an agent and their commission, so premiums are higher. Think of it as paying for a guided tour. The benefit is that an agent can explain terms in your language, help with paperwork, and advise on coverage. Some people value that.
For Example: Mahesh knew nothing about sum assured and forms. His agent Hema held his hand through every step. Mahesh paid about ₹3,000/year more for that help, but the personal touch calmed his nerves.
Tip: Ask for a cost breakdown. Agents may push add-ons to fatten their pockets. Only pick riders you actually need.
Who’s responsible for all health disclosures – Me or My agent?
When you buy online, you answer every health question truthfully. No agent is there to spot missing info. Skipping or lying about tobacco use might seem clever, but insurers can check later and lead to Claim rejection. Claim denied equals family in trouble, and yes, hiding smoking is considered fraud.
Tip: Have your IDs and health records at hand. Double-check every entry so there’s no “oops, forgot” defence.
Do online and offline term policies offer identical benefits?
The truth is a 30-year ₹50 lakh cover is the same 30-year ₹50 lakh cover, online or offline. Only how you buy changes:
- Process:
- Online: Fill digital forms and e-sign.
- Offline: Paper forms and in-person signatures.
- Speed:
- Online can be instant (minutes).
- Offline might stretch days or weeks of follow-up.
- Advice:
- Offline: Gives personal guidance (and upsell risk).
- Online: You rely on FAQs or chatbots.
Either way, policy details and claim rules stay the same.
Bonus: Your Section 80C tax break on premiums works the same whether you choose Online or Offline
Tip: Read the policy wherever you buy. Watch for waiting periods or exclusions. It’s very crucial, not optional.
Which buying route suits me best: DIY online or agent-guided offline?
Some love doing their own research. If you trust online reviews and comparison charts, online is like shopping on Amazon, quick and solo.
If you prefer in-person chat over chai, an agent is your comfort zone.
For Example: Priya, a software engineer, chose online and saved money on her policy, and her uncle Rajan used an agent and paid more just for peace of mind.
Tip: Many insurers let agents help you buy online. Get advice and low online rates. Best of both worlds.
Will my family’s claim get paid the same way?
When you file a claim, nobody cares how you bought the policy. IRDAI reports that almost 96.8% of life insurance claims were settled within 30 days in FY 2023-24. Most claims succeed because people played by the rules.
If you told the truth and kept paperwork in order, you’ll likely get paid whether you tapped the app or handed forms to an agent. If you lied about smoking or hid a medical issue. Expect trouble because claims can be denied as fraud.
Tip: Maintain a claims folder. Keep premium receipts, ID copies, and updated beneficiary info. Good organisation speeds things up.
Conclusion:
Online term plans are cheaper and faster, but you do all the work (Great if you’re independent and informed).
Offline is more expensive, but you get hand-holding (good if you need guidance).Both routes get your family the same safety net. The biggest difference is your style. If you like clicking and comparing, go digital. If you want someone to explain things, go agent and remember, Honesty is your best policy. Don’t avoid questions just to save a penny.
