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Advantages and disadvantages of online insurance plans

As you will have no agent to help you out, you should read the policy document carefully and understand its implications fully

Can we buy life insurance policies from LIC without agents (only LIC) if yes then what are the advantages and disadvantages?
- Vilson

Yes, LIC also has online insurance plans. However, LIC term plans are more expensive when compared to other insurers with a good claim settlement ratio. Purchasing insurance online is convenient and cheaper than using an agent. Pure term covers are also simple products. Websites of insurance aggregators also allow you to compare quotes from all leading brands and find the best deal. Online insurance purchases have their share of shortcomings, too. Since no agent is involved, you should read the policy document carefully and understand its implications fully.

There are some points that you need to remember while making online purchase of insurance plan. Ensure that you make a comparison of policies from various companies. You may do so by either going to companies' websites or to aggregator sites such as policybazaar.com. Once you have chosen the policy you will be required to provide personal details such as date of birth, address, sum assured, medical history, your present state of health, etc. Ensure that you provide exact and correct details.

Do remember that the objective of an insurance cover is to acquire the sum assured amount when there's a claim. In the case of an online term plan, your nominee has to coordinate with the insurance company directly for the claim settlement. But in the case of an offline plan, the advisor/broker is a one point contact and will work on your behalf to help you get the claim from the insurance company.

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