If you are one of the thousands of knowledgeable people who have realized the need to buy term cover to protect your family from any financial hardships, as a next step you would be contemplating buying the term cover. We will help you understand various channels, which can help you, procure this valuable cover.
Various channels to buy term insurance policies
In order to increase penetration of Insurance the regulator of insurance sector, IRDA (Insurance Regulatory and Development Authority) has allowed various entities to source the policy. These entities could range from large bank to your insurance agent next door. There could be some merit and demerit in using these channels.
Insurance agent act on behalf of the insurance company they are enrolled for. The insurance company would be responsible for their training the advisor. It would also be responsible for any acts of the agent. Normally, if you and your family know the agent, you can buy the term plan from him provided the insurance company with whom he/she is emplaned offers term plan that meets your requirement. If your agent changes the insurance companies frequently, servicing may become an issue.
Insurance brokers offer term plans from invariably all the companies that offer the term cover. The advantage is that he can help you compare various policies that meet your requirement and arrange the policy for you. Since the number of brokers is limited and highly regulated, their reach though may not be as good as that of next-door agent.
Officer of bank or Corporate Agent
Most banks nowadays, have tie up with insurance companies and offer plans. However, like individual agents they too can sell only one life insurance companies term plan. Since banks maintain your finances and understand your needs, they would be in a position to offer plan that suits your needs.
Directly from the Insurance company website using internet.
Due to changes in technology and tech savvy young people many life insurance companies now offer term plan that can be bought online. It has become very popular with the young generation who can buy this product online with the comfort of his home or office. Although, these products are slightly cheaper than offline term plan, it has to be borne in mind that it is for people who have basic understanding on insurance. Further, the pricing is yet to stabilize. More and more life insurance companies will offer this product.
IRDA guidelines now regulate the telemarketing of Insurance policies. It even puts a restriction on types of insurance policies that can be solicited, such as ULIPs above certain thresholds and variable insurance plans. You can hear a call from some person explaining benefits of term plan and if you like the features you can even purchase on phone. However, like online term plans medical examinations and tests would still need to be conducted and insurance company would arrange the same for you.
There is not much difference in term plan regardless of what channel you use, all are there to protect your family. What is more important is that you buy the right product with features that are relevant to you. As with other purchases you make, remember, there is a difference between the cost and the price .What separates two entities offering similar product is the services.