Buying Insurance Online vs an Agent

As we have evolved to a more digital age, it only makes sense for everything else around us to follow suit. The insurance industry is no exception and has taken measures to make insurance available through online channels. For a very human centric business, it makes sense as to why this progression took longer for the industry. We have covered the opportunities and benefits of each, online and traditional insurance in our previous posts. On top of identifying the right plan and the amount we need, going through the right channel plays an equally important part in determining the after sales we will get. Let’s explore the differences between both of these channels.

Buying Insurance from an Agent

There are many advantages when you buy insurance from an agent. A good agent will provide that human touch to understand your financial needs and recommend the best products for you and your family. They know the ins and outs of the insurance processes and requirements and will efficiently guide you with specific instructions to make a successful claim as long as it is a valid one.

Insurance associations conduct qualification exams covering different types of products for agents. The more qualified an agent is, the wider the range of products they are licensed to sell. These agents can be your one stop shop for all your insurance and takaful needs. If you choose to buy multiple insurance products, an agent may be able to help you out with a deal by bundling or adding riders to the products which could reduce your monthly premiums.

While there are many benefits of buying from an agent, there are also some negatives. Agents need commission to generate income. That adds on additional fees to the customer’s insurance premiums each month. While this may not be a huge increase, it can definitely increase your average cost each month. It simply means, you are paying for the extra service you get by working with an agent. Not all agents work full-time, and they may not be around to sever you long term which is why it is key to getting an experience qualified insurance or takaful agent to serve you and your family.

Buying Insurance Online

Most insurance companies allow you to get a quote and purchase simple, easy-to-understand insurance products directly online. This can be a fast, convenient and an economic option. However, due to the simplicity of the plans, the benefits provided may not be as comprehensive as those provided by traditional policies purchased through an agent. The customer should do a clear comparison and pay attention to the exclusions that apply when buying these plans online.

When you buy direct from the insurance company you are simply a policy number to the insurance provider. Each time you call the customer service hotline, you will deal with someone new and you will lose that personal human touch that is required from insurers to give you comfort.

There are many online comparison sites in Malaysia which provide a quick comparison of the main online products. You should take the time to research and pick one that provides adequate coverage while meeting your financial needs.

Online versus Agent – The Conclusion

Always keep in mind that online plans are mainly starter pack insurance plans with limited coverage and added exclusions. It is a convenient option when you are young or have a young family but once you start building a family and wealth, you will need to purchase products which provide more comprehensive levels of coverage and that can only be purchased through agents.

The comparisons above are by no means exhaustive but we hope it gives you an idea of the things to look out for when purchasing insurance or takaful online or through an agent. As with any purchase, you as a customer need to understand what you are getting for the price you pay. There are advantages and drawback with both online and agents.

At GoInsurans we understand the convenience of online channels and the better personal benefits that come with a good agent. We are investing in technology to bring the agents and the insurance industry to the digital age. You can conveniently search for a good agent who will provide you with more comprehensive coverage at GoInsurans.

Find an agent near you or feel free to hit the chat button or leave us a comment.

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