I have been screaming that term insurance is best bought:

a. Cheap and therefore b. Online.

However the online way of buying is good ONLY for the consumer. Nobody, repeat nobody is interested in this except the consumer. So there is almost a big mafia working against YOU trying to buy TERM insurance, and that too ONLINE.

So they will tell you the following things to dissuade you from buying TERM and that too ONLINE:

If you meet a company rep they will tell you the following:

1. Sir Life Insurance is best bought AFTER doing medical tests, etc. if you buy it online, they may not pay you the claim.

2. Sir If you buy a plan online and you have problems with that, who will you turn to? the internet?

3. Sir H has a better claim settlement ration than ‘A, B or C….’…

Let us break these 3 myths:

a. YOU are generally ONLY contacting the life insurance company by email. After that the company’s representative will get in touch with you, take your medical records, ensure that you go through your medical exam…..and ONLY THEN issue the policy. So telling you all this is just to distract your attention. It also helps in the famous way :”If you cannot sell, confuse”.

b.ย  No support: “If you buy online, and you need some help – like needing a duplicate’. Believe me even if you buy from/ through an agent or a bank you are in the same boat. The clients of Hsbc bank are being told “Sir we are no longer agents ofย  “Tata-AiG life insurance ” so please contact the company. Unless they are connected entities…you will have to fend for yourself. This is not easy anyway. If you buy from an agent, well, he could die BEFORE you or just give up the business….then what do you do?

3. H has better claim payout ratio than A, B, C………………makes no sense in a country where the data accuracy is pretty pathetic.

 

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  1. That’s so true, agents are doing their best to retain their relevance. I got call from LIC offering some product. Just for passing time, I told them I will buy but don’t have money for premium. They offered me to pay premium after a month upon which I told I can pay only after a year. Initially they surprised but later assured me to check and get back if any such arrangement can be done. Of course, no phone after that but its amazing how much energy they are devoting to extract every possible penny. Anyway, Buying online now a days is so smooth, you’d not feel you need any kind of assistance. Recently I bought one online term policy and entire process gets completed in 15 days without any hiccups.

  2. Hi Subra, it is for these very fears that I chose to go with LIC but I’m dumping it now (after 1 yr) and will go for online. Any recommendations?
    Also, does your site have any post which clearly explains – (a) How much you should insure against in TP ideally? If there is some math behind it. & (b) Should you take multiple TP’s as you move ahead in life or just one TP is sufficient whenever you decide initially.

    Thanks.

  3. I took 1 term plan from LIC via agent and 1 from Aegon Religare online. LIC charged 3.5 times more than Aegon for same sum assured. Experience with LIC was very similar to what one would expect from large PSU behemoth. Experience from Aegon was pleasant. Day 1 they called me, day 2 they created entire plan right from payment to medical examination to policy issuing and followed the plan to the point. Not even 1 day’s delay. To top it, they refunded some part of my premium saying your premium is reduced because of your healthy life style and great medical report.
    Of course, claim settlement report of Religare is far less than LIC simply because they are new in the business.
    This is just my experience which I thought of sharing. I am not trying to advertize one company over other.

  4. Thanks to constant advice from subra, I took term insurance online from Aviva india. The premium was not increased since I was found to be healthy.

  5. It is shameful to admit, I am a qualified CA and don’t know which insurance to buy and don’t know who is responsible for this education or me?, I am from a middle class family… mom is a home maker, dad is having his own business but has crossed 50 years and savings are at a low level so insurance is a must. Before buying any policy just doing research online for better understanding and I found following types –
    Term Life Insurance
    Whole Life Insurance
    Endowment Policy
    Money Back POlicy
    Saving & Investment plan
    ULIPs
    …………. Confused

    Endowment is costly, ULIPs are a joke,going for Term Life Insurance …. 30 years, current age 22 ๐Ÿ™‚

    Now confused whether to add riders or not :@

  6. It is shameful to admit, I am a qualified CA and don’t know which insurance to buy and don’t know who is responsible for this education or me? I am from a middle class family… mom is a home maker, dad is having his own business but has crossed 50 years and savings are at a low level so insurance is a must. Before buying any policy just doing research online for better understanding and a reader of your blog for 3 years, found following types –
    Term Life Insurance
    Whole Life Insurance
    Endowment Policy
    Money Back POlicy
    Saving & Investment plan
    ULIPs
    …………. Confused

    Endowment is costly, ULIPs are a joke,going for Term Life Insurance ๐Ÿ™‚
    But now confused to go gor riders or not?

  7. Well…. For picking fights with random people over internet I have got account on Quora, Tumblr, Memecentre etc…. If you can tell whether to buy riders or not, that will be helpful…Thanks

  8. No Riders, just plain vanilla, term insurance TILL YOUR AGE OF 55 years…and read other posts under life insurance to know how much..etc

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