Let us educate people on pure protection life insurance policiesVery recently, an investment consultant was seen talking to a very young person, just twenty five years, with a finance background and now working in a good private sector bank. The young man has a MBA qualification from a leading B school of Chennai.
The agent tried his best to convince the young man that he should go for the money back policy. The young man was very well informed and argued that investment in life insurance is only for a very big precaution. Hence, he sought details of pure protection schemes of various insurance companies including LIC.
The agent was cornered. He did not expect a very enlightened customer. When the agent said that investment in a pure protection scheme would not come back at all, the young man said that he was ready and demanded details of only such schemes.
The truth was that the young man had already invested in a good Systematic Investment Plan of a leading Mutual Fund, which also runs a famous Bank in the private sector. The agent was sorry that his argument was going nowhere. It was obvious that the guy was more interested in his commission.
The young man even explained the benefits of such a pure protection scheme to his friends after the agent was gone. Why invest in life insurance where the return is just three percent or a little more?
The time has come for all people to know everything about life insurance. In these days of hyper inflation, it is high time that all people are well informed about various investment avenues.