Comments on: Life Insurance simplified – Lesson 101 life insurance

By: Param

Param — Fri, 25 Sep 2009 04:21:05 +0000

Thanks Subra.
In fact the matter of will you brought up is very critical. Most of the people do not understand that nomination does not mean the person will get the money if the regular heirs make a fuss – unless the will is in line with the same. In this regard, I’d say most of the agents are clueless (which should be treated as incompetent).

By: Dani benedict

Dani benedict — Thu, 24 Sep 2009 16:21:20 +0000

thank u for the great advice

By: subra

subra — Thu, 24 Sep 2009 04:59:38 +0000

somebody does offer an annual renewable term. More expensively you could choose a low cost UL – if you know how to buy – with full top ups and use it as an increasing term. The increasing value becomes like a hedge against inflation. Naming beneficiaries by a group has to be done through a will, or taking a few different policies. Agent may be neither incompetent or dishonest (he could be both, these are not mutually exclusive!). He could be stumped by a system which does not like a thinking customer. I had to scream to get a client the right to name a charitable organization as a beneficiary. Normally the answer is “Nobody has asked for it” !

Agents are normally incompetent and overpaid or very competent and grossly underpaid!!

By: Param

Param — Thu, 24 Sep 2009 04:03:20 +0000

Some parts of the article seems irrelevant for Indian context (perhaps more useful in American scenario):
Annual renewable term – Despite extensive efforts, I was unable to locate any Insurance company offering this plan. Did I fail?
naming beneficiaries by class or group – Insurance companies do not allow this – they want a name & relationship, no alternatives. Was my agent incompetent or dishonest?