Why online Insurance policy are cheaper than offline? Do they have any difference in type of cover they give?

-It is observed premium paid on life insurance term policies are Much cheaper than offline. Is it only because of agents commission or there is difference in type of coverage?Simple by online no any agents cost , less paper work and lesser employee work load.

No any difference in type of cover.But one thing remember premium can`t be changed either you buy online or through agent.

HAVE A NICE DAY.Online term policies are cheaper because here buying is direct between the client and the insurer, and no agents are involved. So such savings as agent's commission etc are passed on to the client/policy holder, hence they are able to offer a lower premium. Some insurers offer term plans upto Rs 50 Lacs, without medical. On the other side, policy holders are supposed to fill in true information in the proposal form with regard to their medical history. There is always a possibility for increase in the premium in case his health history is not satisfactory.Important factor in term insurance is claim settlement. It is always wiser to by a term insurance policy from a company whose track record in claim settlement is the best. In the present scenario, LIC tops the chart with about 98%.
Although many insurance policies purchased online are less expensive than those purchased through an agent, not all are, and in quite a few cases insurance through a major carrier and administered by an agent can be less expensive.



Working with an agent also brings other things to the table. You always get to speak to the same person rather than taking a chance with a call center. The agent gets paid by the policies he has in his book of business, so he works more for you rather than someone who is paid salary by the company. An agent also will get to know you better and can give better advice on how to be properly covered.



Don't automatically assume that insurance is less expensive online, and also don't fall into the trap of buying the cheapest insurance. No one who has the need to use their insurance is happy they went with the cheapest company.
The life insurance companies publish their rates with each state's department of insurance. If you are getting a (for example) 10 year term life insurance quote for $100,000 with New York Life, the premium online versus buying it in person should be the exact same. The usual advantage to online is that you can get many proposals from different carriers for the same product. Normally a broker only represents a few carriers.
I think because of agent commission..there can be several other reasons as well. I also prefer online transactions..saves lots of time. I find online transactions pretty simple when it comes to pay different bills, fund transfer and yeah sometimes online shopping too :) Recently bought medical insurance online at Max Bupa.. they have very good mediclaim plans available.
offline have a different procedure than online and online are better and they just need to fill on the forms and so on