Where You Are Buying Insurance From Can Often Influence Your Buying Decision: Here Is What You Should Do
Published by Outlook Money
Abhishek Kumar's role: Quoted
Abhishek Kumar said insurance choices are often shaped by the aims and incentives of the selling channel. He explained that commission-driven selling can skip proper coverage analysis, and that an unbiased planner can match cover to life goals.
What Abhishek Kumar said
Why does the place you buy insurance from shape what you end up buying?
As with any product sold through distribution, insurance choices tend to be shaped by what the selling channel wants to achieve and the incentive it earns for closing the sale. So the policy a buyer ends up with can reflect the channel's goals more than a careful look at the buyer's own protection needs.
What goes wrong when insurance is sold on commission or by telemarketers?
Many sales channels work on commission structures that can put selling a product ahead of advice suited to the buyer. Telemarketers in particular tend to aim for high volumes and quick closures. In my view, that pace often means the buyer's coverage needs are never analysed in any depth before a policy is sold.
How can a financial planner help with insurance decisions?
In my view, a planner working for the client links each insurance decision to the client's specific life goals. Starting from those goals helps buyers steer clear of the usual mistakes that come from aggressive marketing or from filling in impersonal online forms, so the cover chosen is tied to what the family actually needs it to do.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on insurance
The article explains how the channel through which people buy insurance, such as telemarketers, agents, banks or online platforms, can shape what they end up buying. It describes signs of a sales-led pitch and the case for advice from a planner who is not paid by the insurer.
Publisher source
Where You Are Buying Insurance From Can Often Influence Your Buying Decision: Here Is What You Should Do