Where Can You Buy A Life Insurance Plan From?

Mehak and Sanya are colleagues who plan to purchase life insurance policies. After some research, Mehak buys a term plan from an insurance website and Sanya buys a whole life plan from the bank she has an account with.

1. Mehak gets an extra discount on her policy premiums, since she buys the policy from an insurer's website.

2. Sanya has to go through less documentation since many of her documents like Aadhar card, PAN Card, etc. are already on the bank’s records.

So, as you can see every option will have their own benefits. Even if all of them offer seamless buying experiences, you should weigh the pros and cons - to figure out which one you should choose for your long-term investment.

Is buying from an insurer's website directly a wise idea? What about other options like banks and insurance aggregators? Let's have a look at how these options compare, so you can make an informed decision!
 

So, Where Can You Buy A Life Insurance Plan From?

Life insurance plans can be purchased through the following channels -

1. Online from any insurance company's official website
2. Online insurance aggregator or broker
3. Banks
4. Financial advisors
    

The Pros And The Cons

To help you make a well-informed choice, here is an in-depth analysis of each option -

1. Online From The Insurer's Website

   Life Insurance Plans can be purchased easily and quickly through an insurer's website or app(if available). All steps, including completing forms, submitting documentation, and more, can be done through the site.

   Pros

   • Insurance websites allow you to buy insurance from the convenience of your home without having to visit an insurer's branch office.

   • You may be able to take advantage of additional perks and discounts on these websites.

   • You'll have solid institutional support at every step of your insurance journey since you're working with an organisation.

   • Insurers usually get access to the latest products before other parties.

   • First-hand information about the company and product will be available.

   Cons

   It is not possible to compare policies between different insurance companies on an insurer's website. To do so, you will have to visit numerous websites, download brochures, examine them, compare features, prices, benefits, etc., and then decide - which might make the process tedious.

2. Online From Any Web Aggregator

   On aggregator websites, you can compare policies from different insurers on the same page, and then select the one that aligns with your needs.

   Pros

   • Web aggregators allow you to browse through insurance policies offered by a variety of insurance companies on one website.

   • It is possible to compare the features and prices of several insurance policies holistically.

   • You may also qualify for exclusive discounts and offers on insurance products.

   • A majority of aggregator websites incorporate the latest technologies and enhancements to provide the best possible user experience.

   Cons

   • If you have a policy-related query, it will be handled by a call centre agent who in turn might refer you to a different insurance agent every single time. As a result, your query may go unanswered.

   • Some insurance aggregators prioritise sales targets over claims management. Hence, it is imperative to check the claims history of the aggregator before investing your hard-earned money.

3. Offline From A Bank

   The rising insurance demand has led banks to sell life insurance products, including endowment plans, child plans, whole life plans, etc.

   Pros

   • You feel more secure when dealing with a bank since you'll be working with an existing relationship manager.

   • You'll have less paperwork to deal with as your bank may already have records of your ID proofs such as your Aadhar card or PAN card, which are needed to purchase insurance.

   Cons

   • IRDAI regulations restrict banks from selling non-life, life, and health insurance policies from more than one insurer. As a result, you have limited options to choose from.

   • The bank may assign claim handling to the insurer. In this case, you may need to deal directly with the insurer during the process of filing a claim or if you require any assistance.

4. Offline From A Financial Advisor

   A financial advisor handles your entire insurance experience from policy research to the claim process. They will act as your single point of contact with the insurer.

   Pros

   • A reliable financial advisor will help you through all the stages of the policy process right from assisting you with the purchase, providing you with a form to fill out, preparing and submitting all the paperwork on your behalf to ensuring that your policy reaches you on time.

   • They will evaluate your goals, needs, priorities, finances, and other factors before suggesting a policy.

   • During times of claim, they will assist you or your nominee with claim settlements by contacting the insurance company on your or your nominee's behalf, to facilitate a quick resolution.

   • Their primary focus is to maintain a solid profile and positive reputation, so they'll be eager to build a cordial relationship with you.

   Cons

   • Financial advisors are only permitted to recommend products of one insurer for each of the categories of life, non-life, and health insurance under IRDAI guidelines. As a result, you will have fewer choices.

   • You won't receive any discounts or special offers from a financial advisor.

   • The importance of choosing a good insurance advisor cannot be overstated. Some financial advisors are concerned with establishing long-term relationships with you and providing effective service, while others look for commissions and sell products that are of no benefit to you. Hence, invest some time in researching the track record of financial advisors.
      

Summing up!

We hope this article has shed some light on the merits and demerits of buying life insurance online - through an insurer's or aggregator's website or offline - from a bank or financial advisor. Ensure you take some time to research each of these options before you shell out your money for a life insurance policy.