April 16, 2013 8:21 pm
What is difference between a policy purchased online and via an agent in case of pure term (20Y++) life insurance.Is there any difference?
Dear Bhanu, yes is the answer.
Dear Bhanu, apart from the front end cost of Agent’s commission, there is back end cost saving also, in terms of no front end physical office involvement i.e. brick & mortar office in each city. By keeping the online team at a single location, the insurer can service all over India & keeping the cost of real estate in mind + the office staff there in each city, these savings are also involved to bring down the prem. down.
According to you as well the difference is of only premium amount. All clauses with respect to policy (TLI) shall be same in online as well as via an agent.
However, I did not find any good reason to avoid online plans if they are cheaper and only difference between them is about premium amount.
Great. Whatever makes you comfortable. To each his own.
Superficially only there is no agent commission and therefor online plans are cheaper.
Saying this is the only reason is naive.
However there is a section of life insurers who believe that the way in which premium is calculated for online plans is not correct and the difference is not just due to commission difference. There is another argument that online plans assumes internet savvy individuals are health conscious and therefore can be insured for lesser premium.
Personally for above reasons I am not comfortable with online plans.
It is a cheap option for those who cannot afford offline plans.
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