LIC’s newly launched Online Term Plan
The
largest life insurance market shareholder launched an online term plan last
week. Although LIC has delayed to launch it as almost all private insurance
players like Aviva, Ageon religare, HDFC, ICICI etc already launched it before
many year. It is very popular product among young earning generation. The first
online term plan were launched in 2009. It took 5 year to LIC come up with such
type of plan.
The premium
of LIC’s online term plan is costlier than its peer players. The brand value of
LIC is much matter for people than premium. The PSU status of LIC do more score
in policy holder’s mind and in our country people rely on LIC very much.
The
premium of online term plan is very low due to there is no agent between
insurer and insured. Therefore, agent’s commission directly passed to the
insured and it is very cost effective for insurance companies also. However,
premium calculator available on every insurer’s website but the premium is only
indicative. You will know actual paying premium after submitting your
information to the insurance company.
Every
insurance company has risk assess department. It assess your profile based on
information like your medical history, family health information, your habits
like consuming tobacco, smoking and any adventure hobbies etc. I personally
recommend all of you to provide true and accurate information to insurer to
avoid claim rejection in future. At the time of claim if insurer find that you
have hide any information with the insurer then your claim may be rejected.
There is
misconception that private insurance company will not honour the claim but it
is not true. All insurance companies do business under IRDA ambit. The claim settlement
ratio of five private insurance companies HDFC Life, Kotak Life, ICICI
Prudential life, SBI life and Max life are more than 90% according to IRDA
annual report of 2012-13. Now the LIC has joined the race of selling online
term plan. We can expect better service and rate to the insured by private
companies and LIC.
If you want more information
regarding investment or you have any other query about investment feel free to
ask us.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
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