Every channel, magazine and blog tells you to buy Term insurance…right? Now the industry is much, much smarter than the customer – so they have come up with many, many variants of term insurance! More about that later…but let us see what gives you comfort:
1. Buy term insurance on the net: it is the cheapest way to buy term insurance. Let us say you are 27 years old and are trying to buy a pure term life insurance product. Chances are you will surf the net and find out that Aviva is the cheapest (it could be Religare, but this is just an example). So you decide to buy Aviva – you pay by card, upload the IT papers, Pan Card, etc. You get a medical appointment – medicals done, you get the policy. Sum assured Rs. 1 crore. Premium Rs. 2000 a quarter. Fantastic.
However many, many, many people are NOT as tech savvy. They walk into a BANK branch and say ‘I wish to buy Term insurance’. The bank OBVIOUSLY has a tie up with a life insurance company. The representative of the life insurance company sits in the bank branch itself. Organises the paperwork. Says ‘Sir here is the quote for a term insurance – the premium is Rs. 24,612 for sum assured Rs. 1 crore. However, Sir we have a ONE time premium of Rs. 254,000 for 30 years.
Can anybody say….which was/ is a better deal…and why?
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