Buying Insurance: Agent vs Brokers – What’s the Difference?

Life is a roller coaster, and there are a lot of ups and downs people go through, from buying their dream bike or car and going on a vacation around the world to facing medical emergencies or accidents. 

But one can’t stop enjoying their life just because of these risks. They must make the best out of every moment and fight back. This has been made possible by availing insurance. Insurance offers financial and otherwise protection to help you live your best life worry-free. 

But for those looking to purchase health insurance, what kind of insurance is right for your needs, and whether you should buy one from an insurance agent or an insurance broker? Keep reading to learn all you need to know about buying insurance. 

What kind of health insurance should one get?

Over the years, more and more people worldwide have been facing growing health problems and a rise in the cost of medical treatment year after year. This has left a lot of people worried about their futures. But you do not need to worry, as health insurance is here to protect you from these risks. 

Not only does it financially safeguard you so that you don’t incur a loss, but it also enables you to receive the best treatment available for you or your loved ones. This is why getting the right insurance for you and your family is vital. 

But with different plans and numerous insurance providers, what are the different types of insurance, and which should you choose?

• Individual health plans

  Individual plans cover only a single individual for the sum insured.

   

• Family floater plans

  Floater plans for families are an excellent way for people to insure their entire family for a single sum insured. This is typically cheaper than purchasing an individual plan for every family member. This also allows every family member to avail of insurance claims for the entire sum insured. 

   

• Senior citizen plans

  Senior Citizen plans are specific plans for people over the age of 60. This plan offers the protection and coverage necessary for senior citizens. 

   

• Disease-specific plans

  Disease-specific plans are designed to counter the risks of specific diseases or ailments. Typically this type of coverage is offered for cancer, heart-related disorders, and related, among others. 

   

• Critical illness plans

  Critical illnesses are plans that offer lump sum payment of the entire sum insured if diagnosed with these illnesses. These typically include a fixed benefit where the whole sum is paid regardless of the treatment cost.

   

• Top-up and super top-up plans

  This type of plan is gotten on top of an already existing plan to get more comprehensive coverage and protection. These typically come with a deductible limit.

   

• These plans can be availed at different times, but this should help you choose the right type for your specific needs and requirements. 
  
  Read More: 7 Qualities That Make a Good Insurance Agent

What is the difference between buying insurance from a broker vs. directly?

Beyond the differences in type, it is also essential to consider how one can purchase insurance, whether you buy it online directly from an insurance provider, an agent affiliated with the insurance provider, or a health insurance broker. Certain differences between them need to be considered when purchasing insurance. 

What is a direct purchase?

When someone purchases insurance directly from an insurance provider they know of or know a policy they want from, it is considered a direct purchase. Whether you buy it from an agent affiliated with the insurance company or directly from the website, this is a preferable option for most individuals and families.

If you want to purchase health insurance directly, you can approach Niva Bupa. We offer one of India's highest claim settlement ratios, with cashless claims in more than 10,000 hospitals around the country. With more than 1.4 crore happy customers, Niva Bupa is the right choice for anyone looking to purchase insurance. 

Who are brokers?

Brokers are companies that offer policies from several different insurance providers, and they typically allow you to compare the policies offered by different insurance providers. This is typically a good option for corporate insurance and one where you need to buy the right kind of insurance.

The following are some of the differences between buying insurance from an insurance agent vs. from an insurance broker

Conclusion

Having insurance is important, not just for the well-being of your loved ones but also for the peace of mind it offers when facing an ordeal related to health. Based on these differences and the types of insurance mentioned, you should be able to determine whether to approach an insurance agent or broker to purchase your health insurance.