Should You Buy Health Insurance Online vs Insurance Agents, What’s Best?

When you are in good health, you might not feel the necessity of purchasing health insurance. However, it is wise to be prepared for unforeseen circumstances. For instance, if a medical emergency arises and you are not financially ready to cover the medical expenses, your only options would be to deplete your hard-earned savings or take out a new loan to settle the hospital bills. On the other hand, having health insurance can safeguard your savings by taking care of medical costs. Hence, buying adequate health insurance coverage is essential to ensure access to quality treatment without the burden of rising healthcare expenses.

Benefits of buying a health insurance policy through an insurance agent:

1. Personalised Guidance:

When purchasing a health insurance policy through an insurance agent, you can benefit from personalised guidance and expert advice. Insurance agents are trained professionals who can assess your specific healthcare needs, financial situation, and family requirements. They will recommend policies that best suit your circumstances, ensuring you get the coverage you need without unnecessary expenses.

2. Understanding Complexities:

Health insurance policies can be complex and filled with technical jargon that may be confusing for a common man. Insurance agents can simplify these complexities for you, explaining the terms, conditions, and coverage details in a way that is easy to comprehend. This helps you make informed decisions and fully understand what your policy covers.

Here are some recent articles on health insurance that can help you comprehend the nuances of health insurance better:

A Comprehensive Guide to Buy a Health Insurance Policy in India

10 Amazing Benefits of Buying Online Health Insurance

Health Insurance vs Mediclaim: 9 Crucial Differences You Need to Know

Tips to Make the Most Out of Your Health Insurance Plan

8 Ways to Keep Your Healthcare and Health Insurance Affordable

5 Things You Must Consider Before Health Insurance Renewal

Here's How to Port Your Health Insurance for Better Benefits

Pre-existing Diseases in Health Insurance Plans: How You Can Cover Them in Your Policy

Disadvantages of buying a health insurance policy through an insurance agent:

1. Biased Recommendations:

Insurance agents may be influenced by commissions or incentives from specific insurance companies, leading to biased recommendations. They usually prioritise policies that benefit them financially rather than finding the best option for the customer.

2. Limited Access to Options:

Working with an agent might limit your access to the full range of health insurance policies available in the market. Some policies that could better suit your needs might not be presented to you.

3. High-pressure Sales Tactics:

Some insurance agents might employ high-pressure sales tactics, such as a discount on the premium on immediate purchase, to push you into buying a particular policy quickly. This can lead to hasty decisions without fully understanding the policy's terms and conditions, leaving you with inadequate coverage or unexpected costs.

4. Lack of Transparency:

There is always a risk of not having complete transparency regarding the policy options and their features, as the insurance agent might not disclose all the details. This can make it challenging to make a fully informed decision about the best policy for your individual requirements.

5. Added Costs:

Purchasing insurance through an agent might result in additional costs or fees, which could shoot up your overall health insurance premium.

Benefits of buying a health insurance policy online:

1. Abundance of Options:

There are numerous health insurance plans available in India from various companies. Offline, through an agent, you may be limited to only those plans the agent is associated with. However, online, you can easily explore and compare hundreds of plans in just minutes, allowing you to select the most suitable one for yourself or your family.

2. Convenient Comparison:

Comparing shortlisted plans is much simpler online, with financial websites offering tools to compare plan offerings, premiums, and customer reviews. However, verifying information on official insurance provider websites for up-to-date details is essential before making a decision.

3. Cost-effectiveness:

Online health insurance plans are often more affordable than offline options as they eliminate middlemen, agents, and associated expenses. The absence of such costs helps keep online health insurance premiums lower.

4. Ease And Flexibility:

Purchasing health insurance online offers the convenience of buying from home anytime, regardless of holidays or business hours, making it a 24/7 accessible option. Offline purchases may require visits to insurer offices and coordination with agents, taking up more time and effort.

5. Transparency:

Online health insurance plans provide clear and transparent information about features, benefits, terms, inclusions, exclusions, and policy exemptions. In contrast, offline agents or distributors might not offer the same level of transparency and could withhold information for their benefit.

6. Time-saving:

Selecting the right health insurance plan is quicker online, and the application process is faster as well. Offline purchases involve physical proposal forms, verification, and processing, leading to lengthier procedures compared to the instant delivery of online policies.

7. Customer Support:

Online buyers can access quick assistance from customer support teams or live chat options, making it easier to resolve queries during the buying process. This eliminates the need to wait for an agent's response for after-sales services.

8. Enhanced Security:

Online health insurance plans ensure greater privacy as information is directly shared with the insurance provider without third-party involvement, reducing the risk of information misuse.

9. Instant Coverage:

Online health insurance purchases offer instant coverage unless a medical examination is required. However, take note that both online and offline plans may have specified waiting periods for certain claims.

10. Automated Renewals:

Online health insurance plans offer automated renewals, where premiums are deducted automatically from the registered bank account on the policy renewal date. Furthermore, online platforms allow users to access instant premium quotes and policy brochures and file and track claims, among other services.

Disadvantages of buying a health insurance policy online:

1. Limited Human Interaction:

Online purchases lack face-to-face interaction with an agent or representative, which could leave some individuals feeling uncertain or less confident about their choices. When purchasing health insurance online, you may miss out on personalised guidance and expert advice that an insurance agent can offer. Without direct interaction, you might find it challenging to get tailored recommendations based on your specific healthcare needs and financial situation.

2. Overwhelming Options:

The availability of multiple health insurance plans online can be overwhelming for some individuals. Without proper understanding or guidance, it can be challenging to go through the various options and choose the most suitable plan for your family's needs.

3. Difficulty in Understanding Fine Print:

The fine print of health insurance policies is crucial, as it contains important details about coverage and exclusions. Reading and comprehending this information online can be challenging for some individuals.

4. Potential Security Concerns:

Sharing personal information online may raise security concerns for some people. Although most reputable insurance websites have security measures in place, some individuals might still be hesitant about providing sensitive data online.

Should you buy health insurance online or through an insurance agent?

Buying health insurance online is undoubtedly a wise choice as it offers convenience, saves time, ensures transparency, eliminates paperwork, and results in lower premiums. Moreover, it facilitates easy policy comparison, allowing you to secure the best possible deal. Unlike the offline method, there is no need to wait for several days to receive the policy. Once you have made your decision, simply visit the insurer's website, provide the necessary information, make the payment, and your policy will be issued instantly.

To conclude:

Whether you opt for the traditional offline approach or embrace the convenience of digitalisation, getting adequate health insurance coverage is essential. Emphasising the ease digitalisation brings, purchasing health insurance online is highly advisable due to its numerous advantages. If you find yourself undecided between the two methods, the points mentioned above should aid you in making a well-informed decision.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.

Disclaimer: This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision.