Prajna Capital - An Investment Guide

Term insurance may not be the most-marketed product by life cos, but it’s a must-have in today’s risk-prone lifestyle WHEN was the last time your insurance agent sold a term plan to you? It’s not a very popular policy among agents, as their commission in absolute terms is low because of the low-premium. Just as agents have their self interests in mind while selling, you need to make your own decision about your insurance needs, which are unique to your family. COST ADVANTAGE A term plan is pure protection. It is the cheapest type of life insurance policy. But what you see might not be what you get, most insurers have a range of health parameters for standard rates. If any of your health parameters — weight, blood pressure for instance fall outside this range, you will pay more. For some companies, the standard range is very narrow. EARLY BIRD GAINS A 30-year-old will pay 15% more premium than a 25-year-old. At 40, the premium is double of what is applicable for a 25-year old, points...

INSURANCE is a subject matter of solicitation. But how often do you give any thought to this rider, which perhaps is the most important clause while buying a policy. Traditionally, in India, people buy insurance products not because they need them, but because they are goaded to buy a policy to appease a neighbour, relative or a friend who is also an insurance agent. Financial experts hold the view that insurance needs are specific to each individual, depending on their financial objectives. The product that you buy should be in line with your requirements. Here are the pertinent queries that you should ask your insurance agent before being sold an insurance policy. Is the agent qualified or authorised to suggest me a financial solution? As a first step, you should ask your insurance advisor to provide the agent licence number and details such as when was it issued and its expiry date. This will inform you for how many years he has been in this profession. Also, whether he is a full-...

Missing the premium payment date does not mean you have to cancel your insurance policy. Check out its status with your agent and get it revived OPTING for the right insurance cover is like taking your first step towards financial planning. But if you want to keep this security cover intact then you need to be financially disciplined and make those timely payments towards the premium amount. Many times because of sheer negligence or unforeseen circumstances, you miss upon making the payments on time. And when you find those bills, reminders stacked in one corner of the house, you are not sure whether to make a call to the company and revive your policy or simply let it go. Well, if you have been deliberating the same, here is a lowdown on how you can revive your policy. THE PROCESS There is a misconception that once you miss your due date for paying premium, the insurance company cancels the policy. It is advisable that before you decide to forego your policy, you should check out with...