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  • Category: Miscellaneous

    Up to what extent people believe in life insurance?

    The importance of life insurance is reiterated time and again. It is said that all concerned should buy a term plan which is a low premium insurance plan which covers life only and no return etc. is envisaged in such plans. Ironically enough, as far as the benefits to the policy holder is concerned, the same lie in dying, not in surviving (please don't mind my language) though it benefits the family dependents immensely.
    Many people keep on postponing buying a term plan though they invest in ULIPs etc. for attendants benefits in tax planning etc.
    Up to what extent people believe in life insurance?
  • #571156
    During the childhood years of mine, there was a fear on even seeing the LIC Agent. Actually the insurance agents are habitually started their marketing with the words,'sir, you pay a small premium amount every quarter period, you will get full assured sum suppose if you died in the middle of maturity of policy'.....like this. As this people utter the words death etc., the people used to afraid to see them.
    Later on the awareness of LIC increased slowly and now many people are covered under themselves with their kith and kin as well the insurance companies also increased nowadays.

  • #571161
    Mostly people do not go to take any policy to company but company come to people to take policy. So its proved that people do not want to buy but they buy it on different reasons.

    Only 10 % people are genuine to buy Insurance for policies.

    I have taken lot of policy but all policies is requested by different peoples some are friend,colleague etc.

    People mostly buy to save tax and money so they easily convinced by insurance person.

    Santosh Kumar Singh
    (Sr. Microsoft Dynamics Axapta Technical,Mumbai)

  • #571167
    Taking insurance during my youth and early years of employment was just out of compulsion and to get rid of the persisting LIC agent. agent used to be a person in the neighbourhood, or a relative or a friend or relative of another friend or relative. At least some of the agents used to portray themselves as having taken up a new way of earning to maintain their families, as unemployed or after their companies were locked out. So naturally as earning people w felt a feeling to help them by buying an LIC policy.

    Later on, there was a sort of taking benefits from the agents as some of them offered to pay a few initial premia So almost no one during those times bought an insurance policy fully knowing what it is. Term policies were not at all heard as agents never marketed them.

    It is only after the private insurance players came that we got to hear new names and terms in insurance. By the time I came to know the details and varieties of insurance plans, the companies very smartly close the doors to us by fixing age limits.

    I may say that Term Insurance is a necessary loss we have to take up not to be caught unawares by the uncertainties of life. One should have a policy with profits to a reasonable amount the premia to be spend be a part of the overall savings he makes. Otherwise, as an investment insurance is not a worthwhile one if return on investment is concerned. Let it be done as a compulsory provision. Insurance companies are very smart and one should be very careful and alert in reading and knowing all clauses, especially the small font ones and the 'exclusions' .

    ==================================
    Let us keep faith on ourselves and work sincerely, not leave everything to fate.

  • #571173
    From the word life insurance , it is clearly indicate that this process will insure the future of your dependant life by paying some money.
    But this word has not yet been clear to many people even highly educated people. They do life insurance either by forcefully by the adviser, or to save tax, or to multiply their money. This is not an investment option. People do their insurance for their car as they fear to get an accident or theft which might cause them financially loss, where as they do not understand the value of a life. So Government should create more awareness to explain the actual theory and benefits of life insurance also health insurance so that more and more number of people will get insured for their future.

  • #571174
    Well life insurance is always associated to our life expectancy and those who have insured at right time have benefited. What I personally feel that endowment policy or the money back policy is the best where in after certain period of time we get the money back and that can be enjoyed in life.
    K Mohan
    I consider myself as the learner everyday

  • #571194
    Nothing is certain except death and taxes. However, the unexpected death of a loved one can cause damage over and above the emotional shock and grief the death inflicts. It can be financially catastrophic - affecting life chances of financially dependent ones. On the other hand, if there are people in the family who are dependent, it can cast a shadow on their future.

    To mitigate this risk, term insurance is the most suitable instrument. Term Life insurance is insurance in its purest and simplest form. It only pays out in case of the death of the person whose life is insured. It does not involve any kind of investment. It does not payout a lump sum if the insured reach a certain age or periodic amounts at specific intervals. The lack of these add-ons, special features and bonuses is a setback to the popularity of a product that does its job better than any other type of insurance, because it costs much, much less.

    So, term insurance is the most suitable product to for financial protection of loved ones, at minimum cost with tax benefits. However, it should not be treated as an insurance.

    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #571195
    I request all ISCians to think about taking a term plan. The ISCians of younger generation will have to be much less premium compared to the others.
    Let us encourage each other in sharing knowledge.

  • #571200
    I do have LIC policies in the name of all three of us in our family - myself, my wife and my son. Two of the policies are maturing at the right time in around seven years time.

    And I also would not buy the notion that people buy the insurance policies just at the behest of the agents. At least, I did not. I intentionally went for the policies as I treated them as the best options for long term saving and associated benefits.

    I urge all our younger members to take at least one policy at the beginning of their career as they will not need to pay any higher premium.

    Live....and Let Live...!

  • #571201
    Term plan is more beneficial for a person who is less than 25. If a person takes a term plan of even Rs. 1 crore at an age of 25, the annual premium will be negligible. The older you get, the more will be the premium.
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry


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