Definition of unfair business practices from the article in economic times:
"The complaints against insurance companies for selling policies by making false lucrative offers at the point of sale are put under the category of the unfair business practices"
The case of false lucrative offers may apply more to money-back policies than term policies. As in term policies, they won't be any money returns or surrender value.
When going for term plans, it is better to check the claim-settlement ratio of the insurance companies. The below link gives the no.s for money-back + term policy settlements combined together.
http://www.bachatkhata.com/2012/02/claim-settlement-ratio-for-life-insurance-companies-for-2010-11.html
One more aspect to consider is the rider benefits we get for each term policy. There is a general advice not to club health riders (Accidental death, critical illness, Disability) with term insurance. Instead, better to go for a Health insurance policy separately that will address these needs.
Reg splitting insurance money – Right now whatever amount we get insured for, we will have to reassess this amount in future – when our responsibilities, liabilities increase + the inflation factor. Personally I think, better to for one insurance policy now keeping in mind our current liabilities. And in future (next 5-10 yrs or more) when we feel there is substantial change in our requirements, we can take one more policy from a different vendor
"The complaints against insurance companies for selling policies by making false lucrative offers at the point of sale are put under the category of the unfair business practices"
The case of false lucrative offers may apply more to money-back policies than term policies. As in term policies, they won't be any money returns or surrender value.
When going for term plans, it is better to check the claim-settlement ratio of the insurance companies. The below link gives the no.s for money-back + term policy settlements combined together.
http://www.bachatkhata.com/2012/02/claim-settlement-ratio-for-life-insurance-companies-for-2010-11.html
One more aspect to consider is the rider benefits we get for each term policy. There is a general advice not to club health riders (Accidental death, critical illness, Disability) with term insurance. Instead, better to go for a Health insurance policy separately that will address these needs.
Reg splitting insurance money – Right now whatever amount we get insured for, we will have to reassess this amount in future – when our responsibilities, liabilities increase + the inflation factor. Personally I think, better to for one insurance policy now keeping in mind our current liabilities. And in future (next 5-10 yrs or more) when we feel there is substantial change in our requirements, we can take one more policy from a different vendor
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