HOW TO SELECT & BUY BEST LIFE INSURANCE POLICY

How do you select a best insurance policy?  Follow these Simple rules:

1)      Always buy basic simple Insurance plans. Pure term insurance is right fit.

2)      Never mix insurance and Investments, it means avoid ULIP schemes.

3)      Buy policy online; avoid buying through agents / relationship managers.

4)      You have the option to pay premium monthly , assign to ECS or Credit card

There is Good news to people out there who are looking out to buy insurance policy for risk coverage / Tax benefits.

LOW COST INSURANCE SCHEMES – BUY  ONLINE

Some insurance companies have launched Online insurance which is dead cheaper compared when compared to schemes purchased through agents / relationship managers.

I have prepared a table which compares the online schemes and schemes sold by agents with below details:

Example: (only for example)

Investor name: Mr.Ram

Age – 28 years

Policy type: Term Insurance – Pure risk coverage

Sum Assured – 25 lakhs to be given to his family in case of his death

Policy term – 25 years

SCHEMES SOLD ONLINE		SCHEMES SOLD BY AGENTS
KOTAK E TERM POLICY For 25 lakhs	ICICI i PROTECT E PLAN For 25 lakhs	LIC JEEVAN AMULYA For 25 lakhs	BIRLA SUNLIFE TERM PLAN For 25 lakhs
Premium  Rs 3281 Per annum (You can divide & pay this amount monthly)	Premium  Rs 3425 Per annum	Premium  Rs 6625 Per annum	Premium  Rs 7032 Per annum

The above table shows that you can save around 50 % money by buying Insurance online.

Why are Online Term Plans cheaper than conventional term plans?

Due to absence of agents / distributor from the picture, no commission needs to be paid and that results in direct savings which is passed on to the customer in the form of lower premiums

Cheers

Vikram AG