If you don’t know the differences between bancassurance and traditional insurance, buying one over the other can be difficult because each type has pros and cons. Let’s try and simplify things for you.
First, to familiarize yourself with the concept of bancassurance and how to buy it, read here.
Let’s now look at the differences between bancassurance and traditional insurance so that you can decide which one to buy.
| Bancassurance | Traditional Insurance |
| Bancassurance is more convenient since you can manage the same along with other banking transactions | Selection between various companies and comparison is a time-consuming effort and needs expertise |
| Your bank offers you limited insurance options as they cannot collaborate with all the insurance companies | Options for comparison and selection of the appropriate insurance cover are more comprehensive as you can compare various products from multiple companies |
| Banks and their staff are not insurance specialists. They cross-sell in the end and may or may not have extensive knowledge of the insurance products | With their expertise and knowledge, insurance agents can guide and advise you on the best insurance policy depending on your financial needs |
| You need not maintain contact details and other information if your insurance is through your bank | You have to maintain policy documents and a point of contact for every insurance you have. Maintaining records can be complex if you have insurance products from different companies. |
It is best to determine first what kind of insurance you need depending on your specific requirements. Get quotes from various options in both categories and choose your insurance wisely. Remember, selecting insurance can be a complex process, and you should seek professional assistance if you need help deciding the same on your own.
