Insurance...!
Better safe than sorry
UNLESS YOU ARE IMMORTAL YOU NEED AN INSURANCE ...
No matter how much you are earning or how much you have saved, financial position can be dented by an un expected event in a moment. Just buying the insurance is not enough, making sure the insurance suits your requirement is the key.
Choose policy that suits your requirement.
Often people end up buying misrepresented insurance product which neither gives good sum assured nor have low premiums, most often agents push the insurances in which they get more commission, the user end up buying a product which is unsuitable. Common man hardly understand different types of insurance and their benefits, Choosing a policy that suits your requirements is extremely important.
Mis-selling is rampant in insurance industry. One needs to be cautious.Major problems in the industry listed below
- Incorrect explanation of product features and benefits.
- Incorrect premium paying term and policy term is explained to policyholder.
- Policy is sold assuring Loan / Bonus / Medical Benefits/ Gold coins / other benefits.
- Life Insurance policies are sold only as Tax saving/ Investment plans.
- Pressure on the sales person to meet sales target.
- Tampering, forgery of proposal/ other related documents.
- Charges under the policy and lock in period are not properly explained in ULIP.
Below charts from IRDAI shows complaints received in the recent years confirms the mis-selling is widespread. when customers lack the knowledge it is easy for the individual OR firms to take advantage of it and sell the product by misrepresenting.
Types of Life Insurance policies in India.
- Term Insurance Plans
- ULIPs – Unit Linked Insurance Plans
- Endowment Insurance Plans
- ELSS - Equity Linked Saving schemes
- Moneyback policy
- Whole life insurance
- Child Insurance Plans
- Retirement Plans
Lack of awareness
The most number of policies sold in India are Endowment insurance policies. however there are always better policy available that suits an individual , When people of going for insurance they must always look for pure Insurance policies , where one can get maximum sum assured with minimum premiums. Because of the lack of awareness one is not getting the max benefit for the paid premium.
An eye Opener
For more than 80% of people , if they just change the existing insurance they will get at least 2 times better sum assured in addition to low premiums. The remaining premiums can be invested to get the good return. this might save 20-30 lakh over the years for an individual . the question here is are you willing to accept the fact and take the right decision ?