Irda plan won't stop Ulip mis-sales Daily News & Analysis
28.04.10
The life insurance industry has used the occasion to spin the story to their liking. And they expect this move of the Irda to improve transparency and help the regulator in its face-off with stock market and mutual fund regulator, the Securities and Exchange Board of India (Sebi).
But that’s a very simple and convenient way of looking at it. Let us get into the details.The Irda had issued a circular on the “benefit illustration” on January 25, 2008. This circular made it mandatory for insurance companies to take the signature of the policyholder on the benefit illustration stating that he (the policyholder) has understood the policy, before taking the policy.
Since then, it has been reported in newspapers, and also uncovered on television, how agents sign this benefit illustration document themselves, without going through the trouble of explaining the Ulip to the prospective policyholder. Or they just pass it off along with a slew of documents that the policyholder needs to sign at the time of taking the policy.
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How to Find and Select Cheap Life Insurance
Reader’s Question:
I’m looking to buy life insurance once I’m fully-settled here in California. How exactly does one get life insurance information (rates, policies, etc.) in order to get the best policy?
Georgette
San Francisco, CA
Life insurance is definitely something you shouldn’t go without if you have people relying on your financial support. You don’t have to be an expert, but it pays to know a thing or two about life insurance rates and policies. Below are a few tips to get you started:
Tip #1: Know What Type of Coverage Suits You
There is Term Life insurance which offers good coverage amounts at an affordable price (and not much else) for a fixed period of time only, as needed. Permanent or Whole Life insurance is for those who wish to accumulate wealth in the long-run, have permanent coverage, and don’t mind paying extra premiums initially.
Tip #2: Calculate How Much Coverage You Need
Find out how much money your dependents will need to survive for at least the next five years should you suddenly pass away. This should include living expenses, payments of bills or mortgage, future expenses like college money, etc. Purchase the necessary amount of coverage or “face value” amount based on these.
Tip #3: Shop for Life Insurance Online
Online life insurance comparison websites (like this one) abounds. Within minutes you can get free, select quote life insurance rates and offers coming from a wide-range of insurers today. This is an excellent way to maximize chances of getting the most affordably-priced policy for you.
Tip #4: Identify the Best Life Insurers
Moody’s, A.M Best and J.D Powers are some of the best independent consumer rating agencies today. They offer free information rating the performance of many different companies and industries. This can make it easier for you to spot the overall best-performing life insurance providers in the market today.
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