Best Ways to Buy Health Insurance

Health insurance safeguards you and your family against medical expenses that may arise due to an accident, illness, or critical disease.

If you're planning to buy health insurance, there are multiple ways to purchase a suitable plan. Both online and offline methods are available. However, some companies might offer a digital approach, while others might not offer certain plans online. Therefore, you must thoroughly research if the plan you wish to buy is available online or offline.

If the desired plan is available both online and offline, choosing either medium depends on your convenience.

What are the Different Ways of Buying Health Insurance in India?

While earlier insurers relied on traditional or offline modes (i.e., agents) to distribute health policies, many health insurance companies now connect directly with customers through user-friendly websites. This helps policyholders and potential buyers review, compare, and buy health insurance plans online.

This section sheds light on the popular ways of buying health insurance in India.

1. Offline Mode

   Offline purchase has traditionally been the preferred way of buying insurance for a significant portion of the population in India.

   Insurance can be bought offline in two different ways:

   • Branch visit: Every insurance company operating in India has established a pan-India presence with several branches across cities. If you are planning to buy insurance and are not comfortable purchasing it online, you can visit your nearest branch to initiate the purchase. The relationship manager at the branch will assist you with the buying process.
   • Agent Network: Before the digital age, companies largely depended on their agent network to promote and sell insurance policies; this method is still prevalent in the country. In return for selling policies, agents are entitled to a commission for each successful sale. These agents also act as your primary source of information and as a mediator between you and the insurance company for the duration of your policy.

2. Online Mode

   You can also purchase your plans online using your computer, mobile phone, or laptop. This is the fastest way to purchase any form of insurance, given that there are no intermediaries or third parties involved. Anyone with an internet connection can purchase it from the comfort of their home.

   It can involve multiple methods, such as:

   • Official Websites / Apps: Buying insurance through the official online platforms or channels of insurance companies is a reliable mode of purchase. Insurance comparison websites help you find suitable online insurance plans at competitive premiums. There is an in-built feature, a Premium Calculator, which calculates accurate premiums based on parameters like age, income, and policy tenure.
   • Insurance Aggregators: Insurance aggregators compile and provide information about insurance policies from various companies on a single website. These aggregators offer a wider perspective and unbiased opinions, allowing you to compare insurance providers and their respective plans. You will find details of every insurer on their online platforms, which helps you make an informed decision. Web aggregators allow you to compare different policies based on important factors like premiums, coverage, policy term, claim settlement ratio, and more.

3. Bancassurance Mode

   Bancassurance is the selling of insurance by banking institutions in the country. Most insurance providers have bancassurance partnerships with leading banks to distribute their products and widen their customer base. In India, employers often purchase Group Health Policies through the bancassurance network established by various health insurers, by paying a collective premium.

   For instance, Star Health Insurance entered into a bancassurance partnership with the Bank of India through a corporate agency agreement to market Star Health Insurance products across the bank's pan-India branches. The objective was to reach a greater number of people.

Which is a Better Way of Buying Insurance: Online or Offline?

Both modes have their own pros and cons. However, choosing either mode depends on your convenience.

For clarity, we have enlisted the points of comparison on some basic parameters.

Considering the above points, buying a medical insurance policy online is more hassle-free, quicker, and time-saving for a policyholder.

Advantages of buying Health Insurance Online

While both ways of purchasing health insurance are valid and come with their own set of benefits, online purchase is often considered superior for several reasons:

• Policy Comparison
• Brand Value
• Fewer Chances of Errors
• Fewer Chances of Fraud
• Lower Costs
• Flexibility
• Less Paperwork

• Policy Comparison: Web aggregators make it very easy to review and compare various health insurance policies. Buyers have complete access to all information about policy features and premium costs. You can compare premiums and policies of 29 health insurance companies and purchase the plan that best suits your requirements. On the other hand, a person using the offline mode to buy health insurance may have limited access to information and must depend solely on the information shared by the health insurance agent.
• Brand Value: When buyers purchase a policy through an online app, they are essentially dealing directly with a well-established brand. Under the strict supervision of IRDAI, the brand cannot display false policy terms or features.
• Fewer Chances of Errors: When purchasing a policy online, the chances of errors are reduced as the customer fills in the details themselves. When opting for the offline mode, agents complete the formalities on your behalf. In such cases, even a minor error on their part can lead to policy cancellation later, and your benefits may be invalidated by the insurer during claim settlement.
• Fewer Chances of Fraud: All of the insurance providers' terms and conditions are listed on their apps and/or official websites. This transparency significantly reduces the risks of fraud and eliminates any possibility of miscommunication.
• Lower Costs: As there are no third-party mediators or agents involved, the overall cost of purchasing a health insurance policy is reduced. This eliminates intermediary costs and commissions that an agent would receive from the insurer for making a sale.
• Flexibility: The online mode of buying offers a significantly higher degree of flexibility in plan selection and customization compared to offline purchases. When purchasing health insurance online, a customer can compare policies from different companies. You can also add or remove riders to check premiums and then choose a plan as per your requirements and budget. Hence, customers have a lot of flexibility when buying a plan online. On the contrary, the offline route solely depends on the agent and the policy they wish to sell. This limits your options for finding a more suitable plan.
• Less Paperwork: One noteworthy advantage of opting for medical insurance plans through the online mode is the lack of paperwork. With this mode, you can get health cover in a matter of a few clicks. It eliminates the need to visit the insurer's office and fill out forms, thus saving valuable time. Choosing a suitable policy, paying the premium, and tracking the status of claims – all of these can be done online.

Conclusion

Ultimately, the best way to buy health insurance in India depends on your convenience, but online methods generally offer more options, flexibility, and transparency.

Buying insurance online is faster, more convenient, and offers a range of options to policyholders. While offline modes come with their own benefits, today's tech-savvy generation is more likely to make purchases online through insurance aggregators, apps, and other digital platforms.

However, irrespective of whether you select the online or offline mode for buying medical insurance plans, it is always advisable to make an accurate estimation of your healthcare needs and understand the various policy features to make the right decision. The right medical insurance plan will help secure your family's future and finances even if a medical emergency strikes without warning.

To learn about the best health insurance companies in India, or how to buy the right health insurance plan, schedule an appointment with us today.