Authorities are on high alert after a deep depression lying 500 km south east of Chennai intensified into a cyclonic storm and is expected to cross the coast between Nagapattinam in Tamil Nadu and Nellore in Andhra Pradesh on Wednesday
Moneylife Foundation held an exclusive, in-depth session conducted by Raj Pradhan, where he delved on different types of life insurance and the vital aspects to consider before making a buying decision
Moneylife Foundation conducted an seminar on life insurance “Life Insurance: The Right Product at the Right Price!” by Raj Pradhan, who has written several cover stories for the Moneylife magazine. He gave insights to an eager audience, on life insurance options, riders, online versus offline term plan, insurance-cum-savings products, child plans, annuity, claims rejection and legal redressal.
It is imperative to get adequate life insurance for financial risk protection against death of a bread-winner in the family. There are different avenues to do it like Term Life, Endowment, Money-back, ULIP, Whole Life, etc. While a term plan is pure life insurance the others are insurance-cum-savings products. Term plan is much easier to understand than all other insurance products, yet ironically it forms an insignificant proportion of an insurance company’s business.
Even though life insurance riders may or may not be offered with different products, it should not be the deciding factor for zeroing on term life or any other type of life insurance product.
A Personal Accident (PA) policy can be purchased from a general insurance company, which is a comprehensive product at similar pricing.
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How does one be safe and smart to be able to navigate the complex world of life insurance products and hard-sell by intermediaries and pick the right insurance policy was the heart of Mr Pradhan’s insightful presentation. While term life insurance is the best option, what are the parameters to consider?
Evaluating life insurance products with respect to charges, insurance cover cost, returns, liquidity and surrender is a must to understand whether you want to go for pure term plan or an insurance-cum-savings product. Buy the product which suits you and not what the insurance company or agents push. It’s no surprise that traditional products easily beat ULIP in sales even though post September 2010 ULIP changes improved the product.
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While mis-selling in life insurance is a reality, buyers must be alert as it will be difficult to prove it. Once the free-look period opportunity is lost, there are fewer options to get your funds back without any loss. Insurance companies have good and bad products. You have to make a right decision to avoid being trapped in to a dud.
Buying life insurance policy in utmost good faith will ensure your family does not have to run from pillar to post to get the death claim paid. Every insurance company will repudiate fraudulent claim. Hiding a medical condition at the purchase of the product is as good as wasting the premium payment. Insurers know how to detect a fraud which can entail services of detective agencies. If your case is genuine, legal redressal options are available.
To read articles on insurance by Raj Pradhan, click here.
Mr Pradhan is currently a columnist at Moneylife and writes extensively about insurance.
Stay tuned for the video which will be uploaded shortly. If you would like to be informed of many more such events in future become a Moneylife Foundation member. Click here to register. Join Moneylife Foundation.