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Old 23rd September 2010, 11:29   #151
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Do not act under pressure & artificial deadlines.
Oh!!! no no; this is an internal pressure; means, I've been thinking to take an insurance for over couple of years now!!! and this time I'm determined to take it before some other expense is met & that's why I imposed 10; to be frank, its only a week. As soon as I get this month end's paycheck, I'm going to open now; its like now or never - self imposing

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take your time to understand everything before entering a contract.
Yes & that's the reason, I'm asking for such basic questions as these things have always confused me. Bonus & sum assured are 2 confusing factors for me!!!

Thanks Carboy & Amit.
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Old 23rd September 2010, 11:30   #152
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Do not act under pressure & artificial deadlines.
You may have deadlines if your 30th , 35th or 40th Birthday is approaching :-)

The premium slabs change and hit may be huge.

If you are buying online the day you make payment using Credit / debit card is the start of policy date so the premium may be significantly lower even if you make payment on your b'day.

Agents take a lot of time and never issue policy with in 1 week of payment.

How do I know this , I was refused advantage of lower slab by almost all companies when I started hunting for term plan 2 weeks before my birthday which would have changed the slab.

All of them said sir policy can not be issued with in 2-3 days. Though delay was on their part to send agents or the agents were simply too lazy to catch a customer or they deliberately delayed thinking that higher premium means more commission to them.

Finally I purchased a pure term cover online , Medical checks were done and it took full one month to issue the policy document but the date was one day before my birth day and I got advantage of previous slab.

Icing on the cake was ICICI prudential I called their toll free number to buy a policy they promised to send some one and I mentioned I need appointment with in one week.
I got a call from them to fix appointment one day after I purchased that is full 2 weeks after my initial inquiry so I politely refused stating it is too late and I have already purchased.
Next I received a call from some one in Bangalore office who was extreamly upset with me to make such statement to HQ. Can you believe it that some one does not work on the lead provided by their own HQ and then upset with customer

Regard

Last edited by amitk26 : 23rd September 2010 at 11:35.
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Old 23rd September 2010, 13:19   #153
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@aargee

A couple of things you should look beyond the premium part:

1) What are premium frequency options available? Can the frequency be changed in the middle of the term
2) What are the premium payment modes available? Online options available?
3) How is the Claims settlement record of the insurer?
4) How is the customer support of the Insurer? Local branch in the city/State? Insurance ombudsman?
5) Any hidden charges not aware during policy taking?
6) Any loan against policy options?

These may be some of the points which need to be understood before rushing into a policy. You would still have the look n feel period for the policy taken. In case of any discomfort you should also have the option of returning the policy back and the premium amt refund.
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Old 23rd September 2010, 13:27   #154
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@Ghodlur - Not rushing up. I've most of the answers on the 6 points except 3. Anyway, it should be from LIC & I'll settle for term insurance (Plan Amulya Jeevan probably) for 25 years or so. I'll still check with Religare as I heard their premiums are low. Due to its high cost, I'll be taking it sometimes during next year. I got a good advice here on term insurance compared to the endowment I was thinking earlier.
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Old 23rd September 2010, 14:31   #155
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Originally Posted by aargee View Post
@Ghodlur - Not rushing up. I've most of the answers on the 6 points except 3. Anyway, it should be from LIC & I'll settle for term insurance (Plan Amulya Jeevan probably) for 25 years or so. I'll still check with Religare as I heard their premiums are low. Due to its high cost, I'll be taking it sometimes during next year. I got a good advice here on term insurance compared to the endowment I was thinking earlier.
Do not take Amulya Jeevan. it is costly compared to Aegon Religare i Term and ICICIPRU term plan. You will get almost double cover or even more than that for the same premium( Amulya Jeevan Vs I term)

Go for either Aegon religare or ICICI whichever is cheaper for your age and term.

Another beauty with term plans is

" As and when new plans come from competitors with less premium for the same cover , just dump this and take new one" We will not loose any thing like in case of endowment or money back policies.

For ex. I have 15 lakh cover from SBI for 5.5K + for 15 years ( taken in 5 years back)

Now Aegon religare quote for 50 Lakhs for 15 years is 12.5 K.

So iam planning to take Aegon and dump SBI.

Last edited by rkg : 23rd September 2010 at 14:42.
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Old 23rd September 2010, 14:44   #156
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Oh!!! Thanks for the tip RKG. How about the settlement claims from Aegon Religare? I've no regards for ICICI, so I may not settle with them. I thought LIC was good when it comes to settlement & hence I thought of taking Amulya Jeevan.
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Old 23rd September 2010, 14:57   #157
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Oh!!! Thanks for the tip RKG. How about the settlement claims from Aegon Religare? I've no regards for ICICI, so I may not settle with them. I thought LIC was good when it comes to settlement & hence I thought of taking Amulya Jeevan.
I do not think it will be problem with genuine claims. Especially if the policy is few years old.

Any insurance company will not accept claim that easily in the first year.

LIC is good in repaying if policy has completed its term normally. otherwise it has its share of problems.

But earlier there is no Insurance Ombudsmen.

Now there is one and also IRDA. So it should not be a problem (my perception)

In my office two guys took Aegon religare i term. along with policy they have sent the copies of medical reports also
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Old 23rd September 2010, 15:01   #158
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In my office two guys took Aegon religare i term. along with policy they have sent the copies of medical reports also
Not only medical report after 2 months of issuance of policy they SMSed me a coupen code for free heart checkup. Also I keep on getting mailers with tips for good health.

So after selling policy they want to keep on reminding customers importance of good health , Of course in interest of their profitability if not in interest of customers longevity
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Old 23rd September 2010, 15:02   #159
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Religare Aegon is relatively new Insurance company and in no way can match the big daddy LIC in terms of network, claims settlement, policy varieties etc. But it seems the pvt Insurers are catching up with ease of policy purchase, online options availibility, immediate policy printing. They are bound to surely do better in regards to claims settlement in the coming days.

I have a policy Jeevan amulya from LIC and I still remember that I had to go for medical check up, wait for the premium receipt, then again wait for the policy document etc. Haven't been still able to pay premiums through Cards although LIC has online payment through some bank portals. Slowly but surely even LIC is making progress.

Note: LIC has 97% claim settlement record.

Last edited by ghodlur : 23rd September 2010 at 15:03.
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Old 23rd September 2010, 15:45   #160
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Originally Posted by ghodlur View Post
Religare Aegon is relatively new Insurance company and in no way can match the big daddy LIC in terms of network, claims settlement, policy varieties etc.

Note: LIC has 97% claim settlement record.
1. Aegon Religare is also the owner of religare brand of medical shops, religare stock broking firm. It is owned by Ranbaxy scions. so network should not a problem.
further when payment is to made online why bother about network?

2.97% claim settlement figures dished out of LIC includes mostly normally closed policies ( endowment and money back which completed the proper term) Actually they comprise more than 90% of so called 97% claims settlement.

When it comes to insurance claims before completion of term LIC is also well known for harassing consumers. there are number of court cases in this regard

I have personally come across reports where LIC has refused to pay even 50K insurance amount citing frivolous reasons( as per court judgments)

here LIC record is not exemplary
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Old 23rd September 2010, 15:55   #161
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What about the existence of these private insurance companies? We are all looking at 25 years and 30 years later and we need to be assured these companies are around.

I would prefer LIC or a nationalised bank over private companies for real long term !!
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Old 23rd September 2010, 16:20   #162
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What about the existence of these private insurance companies? We are all looking at 25 years and 30 years later and we need to be assured these companies are around.

I would prefer LIC or a nationalised bank over private companies for real long term !!
Some thing is government backed today does not mean it will remain so forever. Well my father also used to think similarly for erstwhile UTI , but government did not bail it out and all those who had investments in US64 suffered.

Government owned companies fare lot worse in terms of customer service.

EPF is latest and greatest example they were following single digit accounting till now and 3000+ Cr rupees mainly from unclaimed accounts was not shown in books till an Activist Mr. Nagpal digged it out after continuous effort. Now EPFO is giving 9.5% interest.
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Old 23rd September 2010, 17:02   #163
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@amitk26: I do agree mis management happens at government establishments. But when you look at the probability of LIC remaining compared to other new financial companies, then my best would be towards the govt backed institutions.

I am not saying LIC is great as well, their Money Plus scheme screwed up investors royally. But again, my perspective is more in terms of relaibility
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Old 24th September 2010, 08:41   #164
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1. Aegon Religare is also the owner of religare brand of medical shops, religare stock broking firm. It is owned by Ranbaxy scions. so network should not a problem.
further when payment is to made online why bother about network?
Thats what makes it a little bit scary. The new Insurers bring in their technology and provide options for online policy booking where no questions are asked. Simply pay the premium and get the policy document.
But given anyday I would like to visit the LIC office where an exec would be specifically assigned to me and the age old process of filling forms still exists. I can get any information about the policy and there would be one point of contact right from policy issuance to any claims settlement. You would find an LIC office in almost any tier II or III cities.

This is just my opinion.
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Old 24th September 2010, 12:50   #165
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Originally Posted by ghodlur View Post
Thats what makes it a little bit scary. The new Insurers bring in their technology and provide options for online policy booking where no questions are asked. Simply pay the premium and get the policy document.
But given anyday I would like to visit the LIC office where an exec would be specifically assigned to me and the age old process of filling forms still exists. I can get any information about the policy and there would be one point of contact right from policy issuance to any claims settlement. You would find an LIC office in almost any tier II or III cities.

This is just my opinion.

Policy will not issued online immediately. One has to undergo medical tests. Then only policy will be issued on paper and sent to policy holder along with medical reports.

Not every tom dick harry can get insurance license. In case of religare the partner is Aegon who are in insurance business for a much longer period than say LIC

History - AEGON Group

Almost all the private insurers in India have a foreign partner who is an expert in insurance business

Further IRDA checks the financial strength and expertise before issuing a license.

So nothing much to worry

LIC staff are spreading the myth they are govt backed and hence better. here too they are showing their past record of higher bonuses in endowment and money back polices and comparing them to private parties to show they are better.

But these guys should compare the bonus declared by LIC and private parties for the same year not otherwise.

Actually it is due to LIC, insurance especially that of term insurance did not pick up in INDIA.

LIC made insurance as if it is a investment. Every one asks what i get at the end of the term?

Do we ask motor insurance guys what we get at the end of the term?

LIC never had a pure term policy till 2002/2003. It was busy selling money back and endowment policies

I will give you another example of LIC

All govt of India employees have to compulsorily subscribe to GSLIS( group savings linked insurance policy) .

An amount of 120/ per month is deducted(for Group A officers)

Out of this Rs 36/-(30) will go towards insurance premium. the remaining is savings component again administered by LIC. why should there a saving component in insurance cover ? Imagine the amount of money LIC is getting every month from GOI employees only

That means a total of Rs 36x12 = 432/ for a year.

Insurance cover is 1.2 lakh

The same LIC gives a term policy for 1.2 lakh for similar age group for approximately 300/- rupees. Note this is an Individual cover.

Where as the GSLIS policy is a group policy for 1.6 million GOI employees. hence it should have been much cheaper because the risk is spread over larger group

Just check how much any IT/private company is paying for similar group cover
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