Ch. 15: Where to Buy ULIP Plans From?

When it comes to books, some prefer renting books from the library or buying them from online stores, while others wish to read e-books. With the advent of the Kindle, many people switched from reading paper books to e-books. The major advantage of the Kindle is that you can carry more than 1000 books anywhere and read them anytime. Although this may be the case for some, there are still loyal paper book lovers. And, as opposed to screens, paper books pose no strain on the eyes. Anyway, both have their own benefits and drawbacks.

The same applies to Unit-Linked Insurance plans, which are available both online and offline. But, is it wise to buy a Unit-Linked Insurance Plan from an insurer’s website? Do offline purchases provide any discounts or offers?

We discussed the things to keep in mind while purchasing a policy in the previous article. This article will outline the available options from where you can purchase the policy, as well as its pros and cons.

Both online and offline options are available for purchasing Unit-Linked Insurance plans. You can purchase ULIPs through the following means:

Online from any insurance company's official website:
The process of purchasing a ULIP through an insurer's website or app (if available) is simple and doesn't require much time. You can fill out forms, submit documents, etc., on the website or app. Please make sure you enter all the details accurately on the form.

Online from any Insurance aggregator or broker:
Web Aggregators have a plethora of products from diverse brands. All the brands and products can be seen on a single screen. After comparing the products based on their features and other aspects, you can zero in on the one that matches your needs.

Offline from Banks:
Banks started offering a wide range of insurance products due to the booming insurance market. They sell a range of products from multiple insurance companies, including ULIPs.

Offline from financial advisors:
A financial advisor is someone who will stay by your side throughout the entire process, from the inception of policy purchase to the settlement of claims.

The following is a detailed breakdown of each option to help you make an informed decision:
Online Purchase

Insurer’s website
Advantages

• The major benefit of an insurance website is that you can buy the policy comfortably from home or anywhere by making a few clicks, rather than visiting the insurance company's branch office.
• A range of first-hand information will be displayed on the website for your perusal which may not be available with other brokers or aggregators.
• You will have access to additional discounts and other benefits on the insurer's website.
• New products will be available first to insurers before they can be accessed by other agents.

Disadvantages
Policies from different insurance companies cannot be compared on an insurer's website. A number of websites exist for this purpose where you can compare products based on their prices, features, benefits, and drawbacks. With all this information, you can make a knowledgeable decision.

Web Aggregators
Advantages

• Web Aggregators offer various discounts and perks. Depending on the product, you may receive a discount on premiums or additional benefits.
• All products from different insurers can be viewed on one page. You can see the features and specifications of the various products by scrolling down the page.
• Web Aggregators provide a convenient comparison of features, prices, and policies so that you can easily make a mindful decision. The comparative analysis shall encompass drawbacks and benefits of each policy too.
• These websites constantly upgrade their user interface by incorporating new technologies to provide a more efficient end-user experience.

Disadvantages

• If you have questions concerning your policy, you may be directed to a call centre that shall connect you to a different agent each time. This will lead to confusion and inconvenience, and your query may remain unresolved.
• Some insurance aggregators are more concerned about maximising their sales than managing claims. Hence, it is imperative to verify the claim history of the aggregator before purchasing a policy.

Offline means:
Banks
Advantages

• Dealing with your existing relationship manager instils a sense of trust, thereby solidifying your bond with the bank. You will also feel more secure because you already know the officials.
• The documentation process is straightforward at a bank. Some of your documents may already be available with the bank, such as your ID proofs like Aadhar card, PAN card, etc. The process of purchasing your policy will be a lot simpler once they verify your paperwork.

Disadvantages

• IRDAI regulations stipulate that banks can only sell health, life, and non-life insurance policies from one insurance company. This restricts your range of options.
• Banks may not assist you with your claims. Your claim may be assigned to the insurer, and you may have to coordinate with them during the claim settlement process or if you need any sort of guidance.

Financial advisor -
Advantages

• A good financial advisor will keep you informed throughout the entire process - they will facilitate the process as smoothly as possible. They shall assist you with the purchase, provide you with the form to fill out, collect and submit your documents on your behalf, and ensure that you receive your policy on time.
• At the time of claim, a financial advisor will aid you or your nominee with claims settlements by dealing with the insurance company on your or your nominee's behalf for a fast resolution.
• Before suggesting any insurance policy, your advisor will evaluate your preferences, necessities, pursuits, finances, and other factors. Based on these aspects, they shall suggest a plan that precisely meets your expectations.
• They are committed to building a long-term relationship with you in order to maintain their reputation and good profile. By doing so, they can sell products via referrals.

Disadvantages

• You cannot expect any discounts or special offers from a financial advisor.
• The IRDAI guidelines say that financial advisors can recommend only one insurer for each of the categories of health, non-life, and life insurance. Thus, you have fewer options and comparison opportunities.
• It is crucial that you select a reliable insurance advisor. While there are some financial advisors who are keen on establishing a long-term relationship with their customers by providing exceptional service, there are other advisors who only eye incentives and may sell you products that are not up to mark. Hence,iIt is prudent to review a financial advisor's past track record.

Thus, these are some of the advantages and disadvantages of purchasing a Unit-Linked Insurance plan online via an insurer's or aggregator's website and offline from a bank or financial advisor. It is imperative that you weigh each of these options before deciding on the one that addresses your needs.