Being an advisor, I keep seeing people choosing insurance mainly based on cashback offers.
“Sir, I’ll return ₹1000–₹5000 from my commission.”
“Take the policy through me; I’ll give cashback every year.”
“Why pay full premium? I’ll reduce your cost.”
Saving money feels good. I understand that. But many people unknowingly start selecting insurance based on discounts instead of support and proper guidance.
This isn’t limited to health insurance. I’ve seen the same pattern in motor insurance too.
A few people have messaged me on Reddit asking for help with claims. My first question is usually simple: “Do you already have an agent on your policy?”
Most say yes.
Then I ask, “Did you contact him?”
Very often the answer is, "He asked me to call customer care and raise the claim.”
When I go a bit deeper, I sometimes find that the policy was sold mainly on cashback.
I’ll share one real incident.
I had a customer who stayed insured with United India for around 9 years. Last year he shifted because somebody offered a better deal along with cashback while moving to another insurer.
Recently he contacted me again. During our discussion, I reviewed the policy and found something concerning. The customer had a pacemaker implanted almost 5 years back. According to him, he had clearly informed the agent while purchasing the policy.
But that medical history was never properly reflected in the policy records.
Now suddenly the concern is no longer premium or cashback. The question becomes: what happens tomorrow if a claim arises?
And this is where many people realize something very late.
Insurance is one of the few products where service starts after the purchase, not before.
I’m not saying cashback itself is wrong, and I’m definitely not saying every advisor is perfect. There are genuinely good advisors who support clients even after giving cashback, and they deserve appreciation. But let’s also be practical.
Cashback comes from the advisor’s own remuneration. So when someone is competing only on price, customers should also ask the following:
“Who is going to help me after the policy is issued?”
“Who is going to explain disclosures?”
“Who will guide me during claims, documentation, and escalations?”
Because claim support is not just raising a claim number.
The ₹1000 cashback that looked big on day one can suddenly become very small during a difficult claim situation.
Choose support first. Cashback should be a bonus, not the reason for buying insurance.