Here is a mail from a reader Aparna. I cannot profile her, I know not. Assuming she is a typical middle class person…her experience is interesting. Looking for comments from readers on what she should do…
“Want to share my experience with the readers and Subraji.
2 years ago I and my husband bought amulya jeevan (LIC) for 50L, at that time online term plans were not so popular and my neighbor, an insurance agent convinced me that there is no guarantee about claim settlement with online plans.
Recently wanted revise the coverage and decided to go for online plans and stop LIC term plan. Faced lots of doubts.
1. On what basis to choose the company?
According to this blog it is the cheapest, but I am afraid to buy based on that constraint alone. So, decided to go for 2 policies, one based on lowest premium, one based on supposedly high claim settlement ratio, trusting the numbers published. Chose bharti axa eProtect and hdfc click2protect.
2. How much coverage needed?
I know the method to calculate the insurance requirement considering expenses, asset accumulation, inflation, return on corpus etc etc. But the number such a calculation gives will sound good now and will look small after 5 years because of changing numbers in the above metrics. Hence dump all the calculations and go with a gut feel. Have some crores of insurance.
Now, coming to the process of buying!
Had posted a query on policy bazaar, so started receiving calls. Asked them why should I buy through them, they said they’d help in making a better choice (which they did eventually, somehow wasnt aware of bharti axa plan and was about to end up with aviva) and make sure I get policy document in hand without hassles. According to them, there’s no increase in premium if I buy through them, as they are paid by the company and not me. I dont know how to verify this, i am yet to buy.
In between, got calls from HDFC saying that they came to know about me from policybazaar and they would fix appointment. I said i want online and not through agents. They said they are not agents, but hdfc standard life and hence it wont cause any increase in premium. Yesterday evening I had an appointment with some Ms. N. She asked me first if I want to go for children plan, I asked her why she is asking me that when I am clear about wanting a term plan. I asked her why cant they help common people to buy term plans instead, to which she said she does help. Anyway, let me not digress.
She asked me to go to hdfc standard life site, click on ‘are you agent’ link and enter her agent code. Proceeded with the whole process and for 50L premium without tax came to 5382, whereas from the table, it should have been 5200. I asked her why this increase, whether it is for the first year alone, she eagerly said first year alone. After the completion, in the policy proposal form I saw premium as 6047 (inclusive of tax), and there is no mention of lesser premium in subsequent years. I told her, “I dont think it is lesser for later years” and she said nothing. I could have sent her back saying I would like to do it myself, but i felt that is mean of me after calling her home. But I dont understand this model, whether they are agents or employees. She had an ID card and visiting card from HDFC Standard Life.
And I consoled myself saying:
1. When God has given me an opportunity to do charity, I shouldnt crib about 182 Rs * 20 yrs = 3640 of charity.
2. This is not exactly only charity. Look at the complaints of people who tried to buy by themselves! She is going to help you with the process, like fixing medical tests etc !
(Read it in sarcasm)
I am not under illusion that she will be of help in claiming, in case of unfortunate event.
I am yet to buy from bharti axa. Would be of great help if someone tells me if I should buy on my own or through policybazaar. Definitely wont buy through any bharti axa employees.
Somebody please advise soon.
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