Say no to life insurance - Take care :
I can see your face it is confused , you are wondering is Ashish was talking always about having a right kind of insurance cover then why this today ?
I don't want confuse you any more let me clarify , this is about the situation and the precautions you should take while taking Life insurance , pl check are you falling in any of this category then " Say no to Life insurance "
Pl take a time to understand this :
Say no to life insurance if:
1. If you do not have any financial responsibilities. so if you are single with financially independent parents, no loans.
2. do not take any insurance policy only to save tax.
3.Without having full information about how this policy works for you, weather it is aligned to your financial plan Say no to life insurance.
4.mind it :), life insurance is a protection toll not an investment, if it is for investment then say No.
5.Term life insurance is a purest form of life insurance which gives you very good cover at small premium.
6. There are lot of charges in the investment packed life insurance policies take a time to know and understand the charges if you are not comfortable ( i know you will not once known to you )say .............
Note : Now it is as per IRDA rule, you have to sign a statement where all the charges are revealed read all documents carefully before signing.
7. You fill the application form, don't ask some body else to fill up the form just signing on it, give right and correct answer to all questions asked hiding information may adversely affect claim settlement.
8.Say no to taking policies on child's name. Do not take any insurance cover on your child he/she don't need it. The policies on name of child gives right to your child to get the maturity amount you don't know for what he/she will use it.
9. Don't buy term plan only on the basis of lowest premium, check the claim settlement ratio ( Higher is good ) and claim repudiation ratio ( lower is good ) of the company.
Your comments are welcome !!!
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.
And can be reached at : arbfinancials@gmail.com or cell : 08793107044
I can see your face it is confused , you are wondering is Ashish was talking always about having a right kind of insurance cover then why this today ?
I don't want confuse you any more let me clarify , this is about the situation and the precautions you should take while taking Life insurance , pl check are you falling in any of this category then " Say no to Life insurance "
Pl take a time to understand this :
Say no to life insurance if:
1. If you do not have any financial responsibilities. so if you are single with financially independent parents, no loans.
2. do not take any insurance policy only to save tax.
3.Without having full information about how this policy works for you, weather it is aligned to your financial plan Say no to life insurance.
4.mind it :), life insurance is a protection toll not an investment, if it is for investment then say No.
5.Term life insurance is a purest form of life insurance which gives you very good cover at small premium.
6. There are lot of charges in the investment packed life insurance policies take a time to know and understand the charges if you are not comfortable ( i know you will not once known to you )say .............
Note : Now it is as per IRDA rule, you have to sign a statement where all the charges are revealed read all documents carefully before signing.
7. You fill the application form, don't ask some body else to fill up the form just signing on it, give right and correct answer to all questions asked hiding information may adversely affect claim settlement.
8.Say no to taking policies on child's name. Do not take any insurance cover on your child he/she don't need it. The policies on name of child gives right to your child to get the maturity amount you don't know for what he/she will use it.
9. Don't buy term plan only on the basis of lowest premium, check the claim settlement ratio ( Higher is good ) and claim repudiation ratio ( lower is good ) of the company.
Your comments are welcome !!!
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.
And can be reached at : arbfinancials@gmail.com or cell : 08793107044
Hi...
ReplyDeleteThis article is extremely helpful for people who are not used to looking at insurance and investments separately. In today's world too, there are people who do not know how to approach a bank to open their Savings Bank Account. In such cases people rely on the insurance agents and take such policies which is profitable to the agents and not to themselves. They don't foresee that Inflation plays a active role when they invest INR 1 lac p a now for 30 years and the investors trust the insurance company agent who assures them the return them INR 15 to 25k pm. What would be the value of that 15k then (ie after 30 years)?
I have seen many people who buy insurance policies in the name of the babies who are just born... These investors may not have enough insurance cover for themselves, but have cover or money back insurance policies with term of more than 20 years or and a premium of INR 25000/- pa.
I am sure this article will affect those who read this blog regularly...
Yogesh A
Hello Yogesh,
DeleteThanks for your comment it is a well studied. The maximum risk every individual carry is under insurance and unfortunately there are very few people who promote and educate client to have right kind of cover.
taking an insurance cover on child is a really childish decision how ever still it is been promoted in the market by mediators. this is a purely emotional decision.
If you asked somebody what insurance you have ? 90% people will tell you the premium amount. This is total ignorance nothing else.
hello sir
ReplyDeleteThe article is usful for me as i am a MBA sutdent and got useful things to learn about insurance
The most important thing i think is do not hide any information in this situation
Akshay vartak
Mba student
Sinhgad inst