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Purchasing a Life Insurance policy online or through an agent – how are they different?

Purchasing a Life Insurance policy online or through an agent – how are they different?


There are multiple ways you can buy a Life Insurance policy. You can either buy one through a licensed insurance agent or broker, through a bank acting as an intermediary or you could get yourself a policy online. If you are wondering where you should buy Life Insurance from, here are a few factors that differentiate between buying a policy online or through an intermediary. This simple comparison between the two will hopefully help you decide which method is best suited for you:


It’s transparent

When investing in Life Insurance online, you can directly go through the policy’s key features, benefits, terms and conditions, etc. in detail and take the decision yourself.

It’s cheaper

Life Insurance plans bought online have lower premiums due to lower operational costs, absence of commission costs and other intermediary costs, less paperwork, etc. As there are no intermediaries between you and the company when buying online, you have ease of payment, quicker access and high transparency.

It’s flexible

Purchasing Life Insurance online gives you higher flexibility and a broader range of options to choose from. However, to compare policies you will have to do all research on your own. When buying Life Insurance through an advisor or agent, you can trust them to suggest you a few select policies based on your specific needs. This helps make the decision simpler for you.

Get 24/7 support

When you are unable to take a decision on which Life Insurance policy to buy online, you always have the option to call the insurance companies on their toll-free numbers to clarify your doubts and queries. It’s important to get all your queries answered to make a better-informed decision.

Do check the claim settlement ratio

While checking for Life Insurance policies, make sure to check the claim settlement ratio page of the company. A higher claim settlement ratio is always a good sign. It helps in making your purchase decision easier.


Interact personally

Speaking to a financial expert helps answer all your specific queries so you can be assured of your decision. Also, you have the option to directly call your advisor to clarify your queries and doubts. This is important so that you remain stress-free and make a more informed decision.

Choose the sum assured you need

A higher sum assured in online Life Insurance policies can sometimes tempt you into paying more than how much you need. An agent helps you choose a Life Insurance policy purchase that best suits your specific needs and requirements and thus help you make a reasonable decision.

Rider Benefits

Online plans normally do not offer riders such as critical illness coverage, permanent disability benefit, accidental death benefit, etc.

To compare the two, each mode of buying has its own set of benefits. While buying, one should be clear about the need and objective of purchasing a policy and take a decision based on their own comfort level.

However, whether you choose to purchase a Life Insurance policy online or via an Insurance agent, make sure to get life coverage enough to meet your requirements, and sincerely disclose all details about yourself and your family as required.

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