Ch. 14: From Where Can You Buy Child Plan?

Once you've decided on the cover amount of the Child plan, the features and customizations to pick, and the riders to opt for, you reach the next bridge to cross. Where should you buy the policy from?

Should you buy directly on the insurance company's website? Or from a financial advisor? What about the many discounts and offers that web aggregators are providing? How do you choose the best platform for you?

Well, just like every coin has two sides, each of these options too, has its own pros and cons - which you should carefully weigh in before you narrow down on an option.

So, without any further ado, let’s take a look at the pros and cons of buying a Child plan from each of these outlets.

You can visit the insurance company’s website or download their app (if available), and make the purchase directly.

Pros

• There is a sense of comfort buying from the insurer’s website directly, as there are very few chances for fraud.
• You can get first-hand information about the company and the product you’re purchasing.
• You might also get exclusive benefits and discounts that no agent or web aggregator may offer.
• Since you’re dealing with an organisation, you will have institutional support throughout your insurance journey - even if the person who sold you the policy retires or leaves the company.

Cons

• You won’t be able to explore several insurance products across insurers on one page. If you want to make a comparison, you will have to download brochures of different insurers, manually scan them, compare features, benefits, costs, etc. and then arrive at the best Child plan for your kid.

Aggregator platforms are like an online marketplace for insurance where you can explore, compare and buy insurance.

Pros

• You get access to several products - across categories and insurance companies on one page.
• With several insurance policies listed side-by-side, you can easily compare features, prices, and value across all of them.
• The experience on most aggregator platforms is smoother, and the systems are more robust, as they are often quick to adopt new technologies and innovations that improve user experience.
• For certain products, you can also get exclusive discounts and offers.

Cons

• When it comes to resolving queries and other issues, web aggregators may often redirect you to the insurance company’s infrastructure.
• There are chances that the aggregator you’re purchasing the Child Plan from, may not be good at claims management. So, ensure you check the aggregator’s claims track record before going ahead.

With time, as the industries have evolved, banks, too, have started offering a variety of financial products, including insurance policies.

Pros

• There is a sense of comfort in purchasing from banks as you will be dealing with an existing banking relationship.
• Banks would already have some of your documents, like an Aadhar card, PAN card, etc. that are required for the purchase of the Child plan. So, the documentation process would become relatively hassle-free.

Cons

• Banks work as corporate agents of insurance companies. The IRDAI website states that banks can represent one life, one non-life, and one standalone health insurer. Your options, hence, will be very limited.
• There are chances they would leave the entire policy and claim management to the insurer. Meaning, you might have to work with the insurance company directly during the claims process or in case you need assistance with something else.

Lastly, you can buy a Child plan from a financial advisor too.

Pros

• A good financial advisor will understand your financial background, goals, etc., and then recommend a product based on your needs, budget, and preferences.
• Advisors have a reputation to live up to as they are likely to build long-term relationships with families - and sell multiple products over years through references. Hence, they will be interested in building a good relationship with you and are inclined to provide exemplary service.
• A good financial advisor will be there with you throughout - before, during, and after you make the purchase. And at the time of claim, they will follow up with the insurer on your or your family’s behalf and ensure that you and your family have a seamless experience.

Cons

• Financial advisors may not be able to offer you any discounts or special offers.
• As per IRDAI norms, an advisor can sell insurance from only one insurer each in life, non-life, and health insurance categories. You might, hence, not have a lot of variety or scope for comparison.
• There are advisors who will suggest a poor-quality product just because it brings them a good commission. Therefore, you must carefully select your advisor - choose someone who has your best interests in their mind. Understand whether you’re dealing with an advisor who’s on your side, or simply a salesperson - who just wanted to earn a commission.

Now that you’ve seen the possible pros and cons of all the outlets - we’re sure you’ll be able to make an informed decision on where you should purchase a Child plan from.