Continuing the SBI advertisement…where it says

4. Find out whether it is a Single premium or a Regular Premium: Also be aware of some agents who have sold regular premium – by saying “Sir…this is Single Premium every year”….they explain regular premium as ‘payment that have to be made regularly during a year…’ LOL.

Single premium plans are the LEAST SOLD products in the life insurance space because IRDA allows a miniscule 2% commission. I am against single premium – I like ONLY TERM insurance and that too payable quarterly. There is ease of discontinuing…

5. Confirm Premium Amount and Frequency: When you let the agent fill up the policy…some agents tell you it is an annual premium – but tick it as a ‘six monthly’….so if you had paid Rs. 100,000 thinking it was for a YEAR…you may be surprised to get a premium notice after 6 months. So you need to check and fill it up CAREFULLY….

6. Check benefit illustration: this document is a joke.

7. Confirm tenure is appropriate: “The insurance representative offered me an endowment policy for 30 years…and at age 44…I am wondering how will be able to pay the premium after I retire…what should I do Subra?”. GENUINE READER QUERY…My answer is a separate post….will do it soon.



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  1. Subra Sir,

    I am not sure why IRDA is not doing anything to educate people on importance of Term insurance & the claim ratio of the companies.

    is it not the most important part in Insurance decision.

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