Where You Are Buying Insurance From Can Often Influence Your Buying Decision: Here Is What You Should Do

Most people don’t consciously choose how they buy insurance. A call comes in, a bank manager suggests something, or an agent shows up through a friend. The decision gets shaped by whoever reached you first, not by what you actually need.

“Each channel has its own agenda. Telemarketers work on volume, commissions can influence agents, banks are restricted to partner insurers, and online platforms leave the analysis entirely to you. None of these automatically start with your situation,” says Saurabh Bansal, Founder, Finatwork Investment Advisor, a Sebi RIA.

“Like in any product distribution, insurance choices are often influenced by the specific goals of the distribution channel and the incentive provided to complete the sales,” says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor (RIA), and founder and chief investment advisor of SahajMoney, a financial planning firm.

The right starting point is your income, liabilities, dependents, and existing coverage. Anything else is just a product someone managed to sell you.

How To Identify A Sales-Driven Conversation

“Many sales channels are driven by commission structures that may prioritise product sales over tailored advice. Telemarketers often focus on high-volume, rapid closures, which can lead to a lack of depth in coverage analysis,” says Kumar.

Having said that, both telemarketers and agents can be pushing products to you, but the difference is clear. Watch for manufactured urgency, complex products bundled with investment components, or coverage amounts driven by your budget rather than your actual protection need. These are signs of a sales conversation, not an advisory one.

What Good Advice Actually Looks Like

“Someone genuinely advising you will ask what you already have before recommending anything new. They may even tell you that you don’t need another policy right now. That kind of advice isn’t always profitable for the person giving it, which is why it tends to be more trustworthy,” says Bansal.

The Role Of A Fiduciary Advisor

A financial planner is not paid by the insurer, so their recommendation doesn’t need to favour the most profitable product. That structural difference changes the conversation entirely. “They start with your complete picture before identifying what is genuinely missing. Often, clients have been paying premiums across multiple policies for years without the coverage adding up to what their family actually needs,” says Bansal.

A fiduciary financial planner can act as an unbiased advisor who prioritises the client's holistic financial strategy over individual product commissions.

“By aligning insurance choices with specific life goals, they help buyers avoid the common mistakes associated with aggressive marketing or impersonal online forms,” says Kumar.

This professional oversight ensures that the coverage purchased is both necessary and effective during a crisis.