Most insurance companies neither educate their agents on TI nor encourage them to do one. The process for getting a TI is also made very cumbersome. You will never come across an Insurance agent pitching for a Term plan. In my personal experience with LIC, I wanted a term cover of 50 lacs for 25 yrs (Iam 27 now) - Annual premium worked out to around 12.5k but the DO, in my case, went to the extent of threatening my agent of losing his favor if he went ahead with it.
If we can pay thousands of rupees for our car insurance annualy, then why not on ourselves. You should have a term insurance plan of atleast same value as your car, in case you feel you have same value as your car. Otherwise 10 lac insurance is minimum criteria according to today's lifestyle.
Term is a must for all of us...infact it should be made mendatory for all people who have any kind of debt (credit card/home loan/personal loan/car loan etc) so that in unfortunate case of untimely demise of the person, his family lives in peace without worrying to pay back the debt incurred by the person..
ULIP is worst insurance or investment scheme, it's neither this or that. Plus upto 10% Premium allocation, upto 8% is other charges, upfront charges. In affect only 80% of your money is invested and then they calculate the returns on it.
Please look at New Pension Scheme as an alternative, very low overhead investment/retirement plan. No broker will sell the new NPS to you, as there's nothing in for them.
Re: ULIP
by Shri Hegde on Oct 28, 2009 12:21 PM
ULIP is worst insurance or investment scheme, it's neither this or that. Plus upto 10% Premium allocation, upto 8% is other charges, upfront charges. In affect only 80% of your money is invested and then they calculate the returns on it.
Please look at New Pension Scheme as an alternative, very low overhead investment/retirement plan. No broker will sell the new NPS to you, as there's nothing in for them.
No doubt term plans are always seen as something which you wont enjoy till you are on earth as its only profitable when you die. But now these days, to make term plan more attractive, private insurers has provided the facility of term insurance with 125% guaranteed return of the premium the insured person pay. I think this is now really beneficial as you can get maximum life cover and there is no worries about not getting anything if nothing happened to person insured at maturity age as he/she will be getting money back with 25% extra return. For more information/consultation mail at suniltakhi at gmail dot com
Re: Term Plan
by mayur gondhalekar on Oct 28, 2009 04:41 PM
buddy but there is a cavet, that for this policy company will charge more premium compared to normal term policy, so in effect this becomes a endowment policy..
I think insurance do not have good publicitly currently where a lay man can understand it should be told as a story then i hope atleast some will be aware insurance has to give
