Ch. 10: Where to Buy Pension Accumulation Plans: Know The Pros and Cons

Now that you have understood how a Pension Accumulation plan works, the various customisation options you can choose, the exclusions, and other aspects - the next step is to figure out where you should buy the plan from.

With the insurance industry constantly evolving, you have a wide variety of insurance companies, online aggregators, banks, and financial advisors to choose from!

This is one of the most important decisions you can make while purchasing a policy. Firstly, because a retirement plan has significant implications on both you and your family’s future. Secondly, the option you pick will determine how easy and efficient your insurance journey is - whether it’s the buying process, the customer service, and finally, the claims process.

You can buy a Pension Accumulation Plan online or offline. They can be bought from the following channels -

• Online from any insurance company’s official website
• Online insurance aggregators
• Banks
• Offline via financial advisors

Let’s have a look at how each option fares - so you can make an informed decision.

Buying insurance online is fast and simple, it can be done with a few clicks and within mere minutes. A majority of the insurance companies in India allow you to purchase their insurance plans directly from their official website. Every bit of the process, from filling the form to making the payment, happens on the portal.

What are the pros?

• Buying directly from the insurance company will give you first-hand and legitimate information about the plan.
• The latest products and features will be listed on the website, before they are distributed through other channels.
• You are also likely to get offers and discounts on the premium amounts.
• You are in for a smoother experience, since no third party is involved.

What are the cons?

• There’s no option to compare products with those of other insurance companies on one screen. You’ll have to manually pore over different websites and jot down important stuff to do so - which might get confusing!

Online aggregators will make your task of finding the right insurance plan easier, since they list multiple products from various brands on the same page. You can seamlessly examine, compare, and choose the plan you feel is the best.

What are the pros?

• Ease of comparison and choosing a plan across different insurance companies.
• They may be able to provide effective customer support for each plan and insurance company.
• Other intermediaries may have relatively limited plan options.

What are the cons?

• There is a chance that aggregators may have a primary focus on sales, which can result in a not-so-great post-sales and claims service. Make sure you check the claims track record of the aggregator before selecting one.

The demand for insurance plans is ever-growing. As a result, banks have stepped into the insurance space - offering a gamut of retirement plans.

What are the pros?

• When you buy insurance from a bank where you hold an account, you deal with the same representative. This makes the process more comfortable and trustworthy.
• The documentation process, which usually is tedious, becomes simpler. The bank already has a number of your documents which will also be used during insurance purchase. For example, Aadhar card, passport, etc.
• Many banks have begun streamlining out the tech side of things, trying to make the purchase trouble-free.

What are the cons?

• Banks may not be able to provide effective claims support, and may redirect you to the insurance company.

Lastly, you can also purchase a plan offline - from a financial advisor.
Finally, you also have the option of buying your policy offline from a financial advisor.

What are the pros?

• A good advisor will handhold you through the entire process - right from purchase, form filling, documentation to after-sales support and claims management.
• You can expect holistic assistance from them, since their business depends on goodwill and positive reviews. The better their reputation, the bigger clientele.
• Buying offline ensures personal touch and trust. You can communicate your needs and requirements clearly.
• They will be the single point of contact between you and the insurance company, which is especially useful for when you encounter a problem or during the claims process.

What are the cons?

• You should be careful before selecting a financial advisor for your insurance needs. Some advisors may be incentive-driven and hence, may end up selling you a product that’s not the right fit. Ensure that you check and confirm the track of financial advisors before buying a plan from them.
• As per IRDAI regulations, an agent can sell insurance from only one insurer each in Life, Non-life, and Health insurance categories. Your options will be limited.

So, we hope this article helped you understand the pros and cons of each option. Assess each one of them carefully, and zero down on the one that’s right for you. An insurance plan is a long commitment that goes on for many years, if not your lifetime, and you should make the experience seamless and hassle-free for both you and your family.