Just two weeks to go before the financial year comes to an end. And, as usual, there will be a last-minute stampede to save tax, especially among those who had lacked the discipline to invest and insure. For the frenzied then, aggregators (internet firms that collect information about other companies' products and services) could be of some help.
A number of websites, such as policybazaar.com, i-save.com, apnapaisa.com, iTrust.in, policywala.com and rupeetalk.com offer help in comparing products online and buying offline. These are, essentially, price comparison websites.
The value proposition for these is — providing you with an unbiased selection of products. The upside, therefore, of using an aggregator is: It saves you both time and effort. Also, you can scan multiple quotes, benefits and eligibilities, without having to divulge your personal details. All kinds of loans, insurance policies, mutual funds, etc. are up for display on these sites.
How to use: In most cases, you log on to these websites and give your personal details only if you are interested in buying a product. Accordingly, the aggregator will send details to the financial institution concerned, which will, in turn, send an executive to complete the remaining formalities offline. The only drawback: The offline process could take up to 8-10 days for completion.
However, some like apnapaisa.com ask for personal details, along with your requirements. They pass on these to the financial institution, which then takes it ahead from there.
Typically, when financial advisors or friends suggest certain products, individuals turn to these sites to get a clearer picture. "These are best suited to those who want to pick products on their own and don't feel the need for any guidance. There are not too many disadvantages to these sites, apart from the confidentiality issue," says Suresh Sadagopan, a certified financial planner.
How to choose: Depends on your requirement and which of the sites offer the best deal, both in terms of cost and features. Importantly, check how long the site has been in business. Higher the experience, better the expertise.
The fee: You aren’t charged a dime, as a large chunk of their revenue comes from lead sales (informing financial institutions about individuals' requirements for a product) and commission. Plus, advertising revenues flow in from their financial institution partners, such as banks and insurers.
Drawback: Make sure the aggregators keep your personal details confidential. Since many forward these to financial institutions, this could see you being assailed with pesky calls from financial institutions. "Also, since a few have tie-ups with certain companies, this could mean the website would be offering products only of those companies and not giving you a fair product comparison," warns Harsh Roongta, CEO, apnapaisa.com.
