Should you buy an insurance policy from a web aggregator or broker?

-Name withheld on request

Brokers and web aggregators are all licensed entities regulated by the insurance regulator IRDAI. Each of the various distribution entities has a set of rules and regulations that govern them. Among the various distributors, the broker is identified as the representative of the insurer rather than the insurer. So, if you get a better product or price from the broker, then you should go for it.

Note, however, that retail products have a uniform price for a particular product. Price may vary with particular products. In rare cases, insurers may offer discounts for policies obtained through specific channels such as their websites. So, if you are getting a lower price, double-check the product description and the reason behind the discount.

I have taken a term insurance policy 50 lakh with critical illness benefit rider. I want to know whether this rider is beneficial in the long term or should I buy a new health insurance by discontinuing the critical illness rider of the said policy.

-Name withheld on request

The Critical Illness Rider attached to term insurance provides coverage for only a few diseases. If you are diagnosed with one of these diseases, you will be paid a lump sum. Serious diseases are becoming more common. So, there is a significant value in maintaining this rider.

However, a critical illness plan is not a substitute for a standard health insurance plan. The standard health insurance plan covers you for hospitalization expenses for all types of health conditions except permanent exclusions.

The incidence of this type of hospitalization is higher than for serious illness. Also, in many cases, hospitalization due to complications in routine illnesses can cost a lot. Therefore, coverage for hospitalization is a must.

Abhishek Bondia is the Principal Officer and Managing Director of SecureNow.in.

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