News
   
Latest News
SBI life leads globally at million dollar round table (MDRT) 2010
....Read more
2009 News
2009 News
....Read more
2008 News
2008 News
....Read more
2007 News
2007 News
....Read more
2006 News
2006 News
....Read more
 
 
 
 
Latest News
Nov 7 2011 3:19PM
How to choose the right insurance policy for different stages of life

The phone rings. It is a wealth manager with an offer of a triple benefit investment plan. You can save tax, grow wealth and even enjoy life cover. The best part is that the plan guarantees the highest NAV achieved during the next seven years. Even if the markets fall in later years, you get the historical high rate.Before you latch on to this golden opportunity, ask yourself three questions.-Do you need life insurance? - If you do, how much cover do you need? - Finally, does the plan fulfill your financial requirements? Your answers could help you take a better decision on what experts say is the lynchpin of any financial plan. Buying life insurance is a national pastime in India. After bank deposits, it is the most favoured destination for household savings, accounting for almost 25% of the wealth of small investors.Noida-based software professional Gaurav Tiwari has been buying life insurance since the time he started working in 2002.My parents advised me to invest in insurance policies,he says. He has picked up 12 endowment policies in the past nine years. Much as Indians love to buy life insurance, they are not buying the insurance they really need. Tiwari s dirty dozen gobbles up Rs 71,000 in premium every year, but offers a cover of Rs 14.4 lakh. This is very low, but better than the national average of about Rs 1.16 lakh per policy sold till now. The figure is improving but has a long way to go.The average life insurance cover of policies sold in 2010-11 was Rs 1.93 lakh.Investors need to strike a balance between the risk cover and investment in their insurance portfolios. Most of the time, there is a skew towards investment, while insurance gets neglected, says Deepak Sood, CEO and managing director of Future Generali Life Insurance. Every life insurance policy is designed to serve a specific purpose. Some offer a large risk cover at a low price. Others help in saving for specific goals or create wealth over the long term. At the root of the problem is the advice given to the investor by the insurance agent. The customers choice is largely determined by the agents incentives rather than the pull of the product, says Jayant Pai, vice-president of Parag Parikh Financial Advisory Services. Till a little over a year ago, Ulips were being peddled as the best investment you could ever make. But after the new guidelines issued by Irda in September 2010, agents have started pushing traditional policies. A distributor earns 30-40% commission from selling a traditional policy compared with 8-12% from a Ulip.
 
 
 
 
 
 
 
 
 
     
 
     
 
 
 
 
Insurance is a subject matter of solicitation -- Our License No.IRDA/DB 486 /2010
Home | About Us | Car Insurance | Health Insurance | Travel Insurance | Life Insurance | Loan | FAQ | Contact Us
Privacy Policy | Disclaimer | Terms of Use | SiteMap | Process | Our Partners | Press Area | Careers | Claims