Should I buy life insurance through the bank?

Life insurance companies often have many different distribution channels, the most common being bank and agent partnerships. Accordingly, many people wonder whether they should buy life insurance through banks or not?

What is buying insurance through the bank?

The life insurance distribution channel through banks is a cooperation between banks and insurance companies with the purpose of using the bank's large network of transaction offices and huge available customer base to distribute insurance products.

In return, the bank will be paid fees (commissions) by the insurance company according to the signed contract.

The form of buying insurance through banks was first born in the US, then gradually developed strongly in European countries. In recent years, in Asian countries such as Singapore, Malaysia, Thailand and Vietnam, many banks have partnered with life insurance companies to provide a variety of services to meet customer needs.

In addition to agents, insurance companies also distribute through banks. (Illustration photo)

Benefits of buying insurance through banks

Most customers choose to buy insurance through agents out of habit. However, buying insurance through banks also brings many benefits.

Convenient transaction

With a nationwide network of branches, buyers can easily go to the bank and learn about life insurance products through a team of consultants.

Get insurance at a good price

When purchasing insurance through a bank, customers can receive incentives because the insurance company's distribution costs will be optimized through the banking channel.

Facilitated when borrowing from banks

Currently, some banks provide loan services using life insurance. Accordingly, if you own a life insurance contract with the bank, you can have your loan application approved. This is a form of unsecured loan based on the amount the customer has paid, and the bank decides on the appropriate loan limit.

Opportunity to participate in many incentive programs

In addition, when purchasing insurance through the bank, customers also have the opportunity to participate in many attractive incentive programs such as fee reduction, shopping discount vouchers, valuable gifts, phone cards...

Should I buy life insurance through the bank?

Each insurance distribution channel has its own advantages and disadvantages, so customers need to research carefully to make the right decision. With the distribution channel through banks, most of the insurance products provided by businesses are similar to the products distributed through the agency channel. These insurances have the same benefits, premium coefficients, payment terms, risk fees, protection periods, etc.

However, in some cases, banks will change the product name through the signing process with the insurance company. Even though the name has changed, the insurance products are essentially the same.

Customers buying life insurance through banks do not have to pay any additional costs and even have the opportunity to receive incentives.

In fact, insurance distributed through agents or banks only differs in terms of customer segment, consultants, convenience level... but the contract value is the same.

Before purchasing, customers need to learn and improve their knowledge about insurance, proactively contact the insurance company to understand the benefits and ensure the validity of the contract.

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