When purchasing medical insurance, pricing is a key factor. Many people wonder if buying through an insurance agent costs more compared to purchasing online or directly from the insurer.

In this detailed guide, we’ll explore how pricing works, whether buying through an agent is more expensive, and when you should consider each option.

1. How Are Health Insurance Prices Set?

Insurance Premiums Are Standardized

• Insurance companies set fixed rates for their policies.
• Whether you buy from an agent, online, or directly from the insurer, the base price remains the same.

What Affects Premium Costs?

• Your Age – Higher age = Higher premium
• Coverage Amount (Sum Insured) – More coverage = Higher premium
• Pre-existing Health Conditions – Some conditions lead to higher premiums
• Add-Ons & Riders – Extra benefits increase costs

Example:

A ₹10 lakh health insurance policy from Insurer A will have the same base premium whether you buy it online or from an agent.

But buying online might have discounts that agents cannot offer.

2. Why Buying Through an Agent Might Be More Expensive?

Agents Earn Commissions

• Agents work on commission, which is a percentage of the premium.
• This commission is already included in the policy cost, so the base price does not increase, but there may be fewer discounts.

No Online Discounts

• Some insurance companies offer special discounts for online purchases because they save on agent commissions and operational costs.
• These discounts may not be available if you buy through an agent.

Example:

A ₹10,000 annual premium policy might be available for ₹9,500 online due to a 5% online discount that agents cannot offer.

3. When Does Buying Through an Agent Make Sense?

Despite possible online discounts, buying through an agent has benefits:

✔ Personalized Advice – If you don’t understand insurance, an agent helps you choose the right plan.

✔ Helps with Paperwork – Agents complete forms for you and ensure all documents are correct.

✔ Claims Assistance – If your claim gets stuck, an agent can help speed up the process.

✔ Custom Policy Recommendations – If you need a family plan or coverage for pre-existing conditions, an agent can guide you better.

Best for: First-time buyers, elderly individuals, or those with complex insurance needs.

4. When Should You Buy Insurance Online?

Buying online can save you money and is great for those who:

✔ Want lower premiums – Online policies often have discounts.

✔ Prefer a quick, paperless process – No agents, no meetings, instant approval.

✔ Are comfortable researching policies themselves – If you can compare policies, you don’t need an agent’s advice.

Best for: Young professionals, tech-savvy individuals, or those buying simple health plans.

6. Smartest Strategy?

✔ Compare policies online first – See if online discounts apply.

✔ If you need expert advice, consult an agent but check if the price is the same.

✔ For simple policies, buying online is often cheaper and more convenient.

Bottom Line: Buying from an agent may be slightly more expensive but comes with personalized service and claim support. Online purchases are cheaper and faster but require self-research.

Make the choice that fits your needs!