Jago Grahak jago

State Consumer Helpline Knowledge Resource
Management Portal (SCHKRMP)

Empowering Consumers

Govt. of India
IIPA logo

Daily News Clipping

 
Service deficiency: Consumer panel takes up plaint against LIC
Holiday firm penalised for deficient service
Public grievances a priority: Ambala DC
Homeopathy doctor administrating allopathic medicines is medical negligence: NCDRC
Motor insurance: Now buy standalone own damage cover
Long-term insurance policy applicable only for new vehicles: IRDAI
Mumbai: Man wins case against ‘arbitrary’ mediclaim premium hike
PAN Holder Alert If you fail to do this, you will not be able to use PAN
Pay Rs 17 lakhs to housing society, developer ordered by consumer body
Home buyers get refund with 24 per cent interest for mental harassment, cost of litigation
Alcon Stylus residents can seek relief from Maharashtra realty regulator
Forum directs Pune hospital to pay Rs 50,000 to complainant as redressal
Religare told to pay Rs 2.91L claim, give Rs 2L for needy patients at PGI
Government stops verification process using Aadhaar for driving license
Thane court asks college to refund fee of student who cancelled admission
SBI account holder Your bank just got slapped with a Rs 7 cr penalty over fraud risk management and NPA identification issues
Forum directs insurance firm to pay Rs 3.2 lakh for lost gold items
FSSAI’s proposed colour-coded labelling will help in easy identification of unhealthy foods
Electronics goods seller to pay up Rs 2,000 for faulty cooler
Hospital told to pay Rs. 10 lakh to victim’s kin
Airtel to pay Rs 6, 000 as redressal to user who asked for call records
Aadhaar can take you places, but not to Nepal
Maruti Suzuki, car showroom told to pay Rs 1 lakh to consumer for fulty horn
Tamil Nadu: Consumer forum slaps Rs 15,000 fine on hotel for levying Rs 2 GST on curds
No Bill, No Payment Indian Railways enhances transparency by allowing passengers to buy products for free, if no bills
SBI, insurance firm asked to pay Rs. 3.5 lakh compensation to widow
School asked to partially refund student’s fee
 

How to choose a life insurance policy to meet your needs
Financial Express, February 18, 2019

Each and every wealth management plan demands regular evaluation of the financial goals and objectives. In order to achieve them, it is very important to implement and practice a well-designed approach. Talking about life insurance, though it is often overlooked as a financial planning tool, it can even serve a broad spectrum of needs for individuals with dependents. With a multitude of life insurance policies available, both offline and online, it is critical to choose the right life insurance policy with adequate sum assured.

It is important for each one of us to first understand that life insurance is a bond of trust and before researching or purchasing a term plan, it is imperative to evaluate what you actually want to accomplish with the policy. Though the basic purpose of a life insurance cover is to ensure that the dependents do not have to grapple with a financial crisis in the absence of the policyholder, it is equally important to understand what your short and long-term goals are. When planning to buy a life cover, you must estimate the size of your financial liabilities including education and marriage of kids, home loan, retirement savings, etc.

Once you have rightly identified your needs and constraints, it will become easier for you to select the best policy for your individual circumstances and needs. Not to forget, life insurance is an essential financial product to buy and you would never want to goof up while making a decision. Here are some things to consider while buying a life cover.

Be Sure Between Term and Whole Life
The first and foremost thing to consider is whether you need life cover for a specific length of time (term) or indefinite coverage (whole life). Term insurance is typically one of the cheapest short-term insurance options that pay the total sum assured to the dependents in case of death of the policyholder. If death of the policyholder happens after the term of the insurance cover, the coverage expires or becomes cost prohibitive. Some of the insurance policies come with a conversion feature wherein the policyholder can convert the policy from term to whole life by getting some recertification done.

On the other hand, whole life insurance usually demands higher monthly premiums than term insurance and it pays a death benefit to the dependents regardless of when the policyholder dies. Additionally, whole term insurance even offers several other benefits, including flexibility in payment of premium and tax-deferred investing.

Don’t Treat Term Insurance as Investment Product
Life insurance plans are not like traditional investment plans such as endowment or market-linked like the Unit Linked Insurance Plans. Though both the plans have an element of insurance, ULIPs are equity market-linked products with the potential to deliver returns as per equity market conditions. Life insurance is not a pure investment product because of the many charges associated with it. People purely looking for returns must not confuse life insurance with any kind of investment products.

Accept the ‘Loading’ By Insurer
Under many insurance policies, after making the policy seekers undergo medical tests, the insurers revise the premium. However, customers often do not accept the revised premium and rather go for another insurer. The revision in premium is usually done through the ‘loading’ process, i.e., asking extra premium on medical grounds. As a policy seeker in case you accept the loading, you can at least be sure that the insurer has accepted the medical grounds and the claims process will not be impacted because of it.

Don’t buy in the name of minor
Many people buy policies in the name of minor children as the mortality charges would be low and hence the premium. But as children don’t have any earning capacity, it doesn’t make sense to buy insurance in their name. Instead, it should be bought in the name of the earning member of the family.

Translate this page

Help No. States Consumer Helplines

  • ANDAMAN & NICOBAR
    03192-246323
  • ANDHRA PRADESH
    1800-425-0082, 1800-425-2977
  • ARUNACHAL PRADESH
    1800-345-3601
  • ASSAM:
    1800-345-3611
  • BIHAR
    1800-345-6188
  • CHANDIGARH
    1800-180-2079
    1800-180-2068
  • CHHATTISGARH
    1800-233-3663
  • DELHI
    011-23379266
  • GUJARAT
    1800-233-0222,
    079-27489945 / 46
  • HARYANA
    1800-180-2087
  • HIMACHAL PRADESH
    1800-180-8026
  • JHARKHAND
    1800-3456-598
  • KARNATAKA
    1800-425-9339,
    1967
  • KERALA
    1800-425-1550
  • MADHYA PRADESH
    1800-233-0046
  • MAHARASHTRA
    1800-22-2262
  • MANIPUR
    1800-345-3821,
    0385-2443924
  • MIZORAM
    1800-345-3891
  • NAGALAND
    1800-345-3701
  • ODISHA
    1800-345-6724,
    1800-345-6760,
    0674-2351990,
    0674-2350209
  • PUDUCHERRY
    1800-425-1082,
    1800-425-1083,
    1800-425-1084,
    1800-425-1085
  • PUNJAB
    1800-3001-1007
  • RAJASTHAN
    1800-180-6030
  • SIKKIM
    1800-345-3209
  • TAMIL NADU
    044-28592828
  • TELANGANA
    1800-425-00333
  • TRIPURA
    1800-345-3665
  • UTTAR PRADESH
    1800-1800-300
  • UTTARAKHAND
    1800-180-4188
  • FSSAI
    1800-11-2100
  • WEST BENGAL
    1800-345-2808