When was the last time your insurance agent asked you to buy a term life insurance plan? The answer is perhaps “never”! This is because most life insurance agents in India do not like selling these plans. There are many reasons behind this, most of them being financial in nature. Take a look at this article to know the reasons and also how this can actually be beneficial for you in the long run.
Why agents don’t sell you term plans – the reasons
If you are curious about why agents don’t sell you term plans, here are some reasons to help you understand it better:
- It is not profitable for them – The model of income of an insurance agent is pretty simple to understand. They get a commission, which is nothing but a percentage of the premium of the policy they sell. Since term life insurance is very inexpensive, the premium amount is also quite low. A percentage of that, which is taken as a commission is also therefore quite low. This makes it unprofitable for the insurance agent. This is a big reason why agents don’t sell you term plans. They prefer selling insurance plans that have a higher premium because that obviously fetches them a higher commission as well.
- They lack proper training – The insurance companies themselves refrain from training their agents adequately about term insurance. This leads to the agents having less knowledge about the term life insurance plans. And because of this, they do not push the term plans too much in front of their clients. Had the agents been properly trained and well-aware of the benefits of term insurance, more plans definitely would have been sold by them. This is another very pertinent reason why agents don’t sell you term plans.
- They sell for a commission, not your gain – Then, an insurance agent is always more interested in running his own business than thinking about your well-being. This is the reason why you hear an agent say “this plan from this company is good for you” and not, “this type of insurance is good for you”. They have a biased viewpoint because ultimately they are selling for money. This is another reason why they prefer selling other types of life insurance over term insurance.
- The clients don’t push for it – Most insurance agents have the gift of the gab – they can speak very well and in a way that convinces you. It is their job to promote a plan and make a sale. And since they convince the clients to not buy term insurance and rather buy another type of life insurance, the clients also don’t push for term insurance when buying a plan from the agent.
- Insurers prefer selling term insurance online – Insurers prefer selling term insurance directly to the customer. This is because the premium is low and if they have to pay a premium out of that, it would not be profitable for them. This is why term insurance is mainly sold online and not through the insurance agents. This is another reason why agents don’t sell you term plans.
These are some of the main reasons why agents don’t sell you term plans. However, it is critical for you to have a term life cover, so get one at any cost.
How can this be good for you?
As mentioned above, the agent not selling you a term life insurance coverage may actually work in your benefit. Here are some ways in which this can happen:
- You can make an unbiased choice – As mentioned above, an insurance agent makes a sale more for his own profit than for your wellness. He may convince you to buy a plan you don’t even need. But when you buy term insurance online, you get to make an unbiased choice without anyone advising you. This is very helpful and allows you to get the best and the most suitable life insurance cover for yourself.
- You can compare insurance – It is extremely essential for you to compare term insurance before you buy a policy. When you compare, you find the best plan at the best rate. If you buy term insurance from an agent, you cannot compare your options and you have to buy the plan he is selling. So the agent not selling term insurance actually works in your favour as you can compare and find the best plan.
- You can get a cheaper cover – The term plan your agent sells you may be very expensive. But when you compare and buy online, you may find a cheaper option that has the same covers and benefits.
- You can directly interact with the insurer – And finally, when you buy the term life insurance plan directly from the insurance provider, the transaction is safer and more transparent. There are no issues of cheques getting misplaced, of agents committing frauds and so on. You buy the plan directly and also interact with the insurance company. This makes the entire process safer and easier to complete as well.
These are some great ways in which the agent’s decision of not selling you a term plan can be of use to you.
How to buy term insurance?
If your trusted life insurance agent is not selling a term life coverage to you, do not lose heart. There are some very simple ways in which you can get the cover for yourself:
- Go online – Start by going online. You can go to the website of any trusted insurance aggregator and start looking for term insurance.
- Do your research – Before you make a final purchase, make sure you do some research. You need to know what the different plans are offering. In addition, you also need to know what your exact requirements are, what your financial capacities are and so on. Conducting proper research before buying term insurance is very important and it is a step you should not skip.
- Compare – Once you know what you need, start comparing. It is important to compare and locate your ideal cover.
- Buy the plan – Once you are happy with your selection, you simply need to fill the online form, make the payment and get the term insurance plan instantly. It is a very simple and straightforward process.
- Buy offline – If you are old-school and prefer to buy the plan offline, you can do so as well. You can either visit the insurance provider’s office and make a physical purchase of the term plan then and there or you can call up the insurer and ask for a representative to visit you and buy the plan from him.
These are the extremely simple ways in which you can get your hands on the most suitable term life insurance policy.
As you can clearly see from the points mentioned above, a term plan has many benefits. But sadly, you don’t always find them in your agent’s bag. Why agents don’t sell you term plans is understandable – They look for monetary gains and term plans don’t fetch them the gains they aim for. However, this should not stop you from buying and maintaining a good term life insurance cover as it is undoubtedly one of the best and most important forms of life insurance. Fortunately, these plans are widely available online and you can make instant purchases at any time. So go ahead and get your term life insurance cover, whether your agent tells you to do so or not.