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Why Online & Offline Term Plans Differ on Premiums?

Jun 14, 2018 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

More and more insurers are focusing on selling their products online instead of the offline mode. This benefits both – the insurer and the policy buyer too. You may have noticed that an online term plan sold on the company’s website is more economical than the one sold by an insurance agent. Here’s how they differ on the price:


You can upload a scanned copy of the required documents and enter all details online.  The insurer then verifies your details online. In this manner, the insurer saves costs involved in the documentation process. Besides, the insurer also reduces operational costs as the policyholder’s documents are maintained electronically. The need to physically manage policy documents is thus eliminated, and with it the costs involved.

Agent fees

An insurance agent charges a certain fee as commission while selling an offline term plan. The commission rate can be as high as 30% of the premium. What you may not know is that you bear this cost as part of the total premium. Hence, you end up paying a higher amount in the offline mode.


The underwriting process allows the insurer to assess the risks involved in issuing an insurance policy. It helps the insurer to decide whether a term plan should be issued. The entire process may take days or weeks in the offline mode as documents travel from one office to other. The insurer may ask for additional documents or request you to undergo certain medical tests before issuing the policy. On the other hand, the process is quick when done online. You can directly communicate with the insurer on any queries you might have.

Let’s look at some of the benefits on purchasing an online term plan:

Product information

If a life insurance agent tries to sell you a term plan without providing complete details, you might fall into a trap. Not disclosing important details may cause you to surrender the term plan or stop paying the renewal premium. On the other hand, when you purchase an online term plan, all details are available on the insurer’s website. You can go through the terms and conditions before purchasing a policy.

Claim processing

As the entire process is done online, you save a lot of time from purchase to claim processing. The insurer provides steps that need to be completed in the event of a claim. The documents can be directly uploaded online with the help of their customer care. The scope for sending documents physically through courier is minimal.


Avoid all hassles involved in purchasing a term plan offline. Purchase an online term plan. Aegon Life iTerm Plus Insurance Plan secures your family against any uncertain risk associated with your life. You can also opt for additional riders such as like disability benefit and terminal illness benefits. Besides, the premium paid can also be used to claim tax benefit.

Advt. no.: IA/May 2018/4019

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