Policy matters are subject to expert guidance!

In the volatile financial times that we are living in today, where misguiding and mis-selling have become a norm, identifying and buying the right insurance policy can be a herculean task. It is a good idea thus to seek expert guidance who can take you through the evaluation process before you sign on the dotted line

Taking lessons from the pandemic, people have realised the need to get themselves and their families covered and protected against any unforeseen crisis, which in turn, has given boom to the world of insurance which is expanding at an unprecedented pace. The panic button that was hit during the pandemic has given birth to innumerable insurance companies who claim to offer the best of plans and policies, which are hard to decode by a common man.

Besides, there are numerous platforms that sell policies and plans online, which offer huge generic pool of information but limited human interaction. Such online policy-selling platforms part information in simple and user-friendly manner to attract people who are not even aware of their own specific goals and needs. And this can prove fatal for such investors who have limited knowledge of the insurance policies and plans, and are also not aware of what can be their right-fit plan or policy.

Here comes the role of an insurance expert or a professional who can prove to be a saviour for a layman and help him identify and select the right policy as per his individual needs. Besides, there are many other reasons why it is important to seek expert help while finalizing the matters of policy:

‘Insuring’ the right sell'

The insurance industry operates on one basic principle that ‘insurance is not bought, but sold’. Insurance is an investment not many are willing to invest in, thanks to its unpredictable and long-term returns which don’t go too well with investors who seek short-term gains. Besides, investors are fed either with too much information or none at all. In such a scenario, insurance is mostly sold by an insurance expert and not bought straightaway! An insurance expert explains, follows-up, sells, and then helps investors sail through the entire process of buying insurance policy. On the other hand, a policy bought online is just like a dart in the dark where no one is there to take the onus. Your ’personal’ guide When each one of us are different and so are our needs, why should we pick a policy that’s generic in nature, and doesn’t fulfill our needs? Yes, having a customized and personalized policy and plan is important – one that fits in as per ours and our family’s needs and financial goals. The same holds true for general insurance policies as well, like health, household, motor or vehicle insurance, etc. These policies must be in sync with our specific needs and should be evolved with the changing times. And to identify all such needs, it is important to seek guidance of experts who are well-versed and updated about the latest features and offers, and can offer tailor-made solutions for our individual needs. 

A relationship of trust and comfort

In the yesteryears, insurance was bought through a known resource. And then came a period of ‘problem of too much’, where every second person was selling insurance, where each one claimed to be better than the rest, leaving investors in the state of utter confusion. Soon, investors were smart enough to realise that taking insurance from a reliable source or a professional is always a good idea to ensure that the post-sale services can be handled without any hindrance. Insurance is a long-term contract where issues, especially claims-related, need special handling. During the time of crisis, an insurance expert can reach out, assist and help investors sail through the cumbersome claim processes. On the other hand, the digital platforms and other financial intermediaries might lack such expertise and personal touch to handle claims and post-sale services.

Making the right choice

With the insurance industry seeing a major boom, post-pandemic, a new league of intermediaries is emerging. IRDAI has introduced many kinds of mediators in the industry - brokers, web aggregators, corporate agents and many such entities – who have been licensed to operate in the market. In such situations, it is critical to make the right choice by understanding the need and then deciding the kind of intermediary required. The decision to choose the agency entirely depends on the kind of insurance portfolio one wants to build for self or the family. The right choice would ensure the right services and the right result.

‘Pushing’ away to victory

While insurance is very important, ironically, the entire industry operates on the push-mechanism. One can hardly see an investor approaching an insurance expert or company; it is vice versa. It is the insurance intermediaries who approach their potential clients through various modes of marketing and push their clients to buy a policy. The push factor involves chasing and follow-ups to help close sales, i.e., convincing the potential clients to commit to purchasing the policy. Those who presume they can buy a policy without assistance might find themselves in tricky situations to decide on the right product from amidst the oceanic world of insurance. Besides, with a constantly evolving insurance market, it is only viable to seek expert guidance to keep the portfolio updated to have a great financial health in future!