Is it better to buy Term Insurance offline or online?

5 min read | Updated on July 15, 2025, 13:54 IST

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SUMMARY

Mr. Saxena, a bank employee in Jaipur, has a 21-year-old son studying at IIT Jammu, preparing for campus placements next year. Seeking term insurance, Mr. Saxena received online quotes from his son but distrusts online transactions, fearing scams. He prefers conventional methods and a reliable insurance agent to create a personalized plan. His son assured him that online portals offer secure transactions, detailed information, and tailored options, making the process efficient and reliable.

Buying term insurance through online or offline modes is an individual’s decision depending on several factors, including comfort and preference. In today's digital age, the options have broadened, with online platforms offering quick and easy access to insurance policies. On the other hand, conventional (offline) insurance methods have a personalised touch and reliability factor due to direct interactions and tailored advice.

Let’s explore the benefits and limitations of both modes to help you make an informed decision related to offline or online term insurance.

Benefits and limitations of buying term insurance online

Coming back to the example, Mr Saxena tried browsing for term insurance plans for his son after his insistence. However, he soon got miffed due to the number of constant and incessant phone calls, WhatsApp messages, and emails he received within a few minutes of providing his details to different aggregators and insurance companies. He thought that he made a mistake by making a simple inquiry online.

However, there are numerous benefits of buying insurance online and safer ways to look for insurance plans online. We have listed down benefits and limitations in the following table:

Benefits	Limitations
Buying insurance online directly from an insurer or aggregator can result in lower premiums due to lower operational costs.	There is less to no personal interaction, which may be limiting for those seeking face-to-face advice.
The convenience of purchasing insurance online is unparalleled, allowing comparison anytime and anywhere without visiting an office.	Complex requirements, like personal insurance needs and debt assessment, are difficult to address online.
Online portals enable quick comparison of salient features, helping users evaluate and make informed decisions.	A large number of options can overwhelm individuals, and aggressive marketing can be a significant limitation.
Online buying offers greater transparency with access to policy details, reviews, and customer ratings.	Not everyone is comfortable with online platforms or tech-savvy enough to navigate digital processes.
Online insurance is available 24/7, crucial for fulfilling last-minute requirements.	Internet-related issues, especially in rural and remote areas, can pose challenges.

Benefits and limitations of buying term insurance offline

Just like online modes, offline modes have both pros and cons, which are discussed in the following table:

Benefits	Limitations
You receive personalised advice and support from experienced insurance agents who tailor policies to fit your specific needs.	You often pay higher premiums due to additional operational and service costs.
Direct interaction allows you to ask questions and have all your queries resolved instantly.	The process is more time-consuming, and last-minute requests are often not addressed.
Assistance in paperwork and KYC ensures a hassle-free experience.	There is little scope for comparing policies between different insurance companies.
Immediate clarifications are provided for unique issues such as retirement planning, loans, and liabilities.	Your experience depends heavily on the availability and expertise of the agent.

Comparing offline vs. online term insurance buying experience

The most critical thing is to have term insurance, and you can choose any of the modes for purchasing a policy that suits your unique needs. Here is a detailed comparison between online and offline term insurance:

Aspect	Buying Online	Buying Offline
Premium	Typically lower	Generally higher
Convenience	Highly convenient due to 24/7 support	Requires physical meetings and might be less convenient
Personalisation	Standard solutions are more common	Highly personalised
Comparison of Plans	Easier through online tools	Difficult
Customer Satisfaction	High: in terms of ease of purchase and speed	Depends on the quality of the agent
Claim Settlement	Competitive ratios, but the process is less personal	Generally good with personal agent support
Service Quality	Efficient and quick but lacks the human touch	Higher quality with a better understanding

Summing up

You can select any mode depending on your personal preferences. You should be, however, aware of the myths around online insurance. It is a highly safe and convenient way of securing your future. Online purchasing offers lower premiums, ease of comparison, and 24/7 accessibility.

On the other hand, offline buying provides personalised advice and hands-on support and might better serve those who prefer direct interactions and guidance.

FAQs

Is it cheaper to buy term insurance online or offline?

Buying term insurance online generally results in lower premiums due to reduced operational costs.

Can I get personalised insurance advice if I purchase online?

While online purchases offer standard solutions, some platforms may provide personalised advice through digital tools.

How does the claim settlement process compare between online and offline purchases?

Online claim settlements are efficient and quick, while offline settlements offer more personal support through agents.

What are the main advantages of buying insurance offline?

The main advantages include personalised advice, direct interaction, and immediate assistance with paperwork and queries.

About Author

Upstox Desk

Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.