LIC has been modifying
their portfolio aggressively since the last decade due to fierce competition
from private insurance companies. This has lead to unavailability of policies, even
when they are successful. Jeevan Saral was one of the most successful LIC
products in the last decade, which was shelved by December 2013 due to product
restructuring as the new guidelines from IRDA. People who get an idea to
purchase an insurance product, will immediately have a word with their relative
or friend who already have an insurance policy with them. If the response is
positive about the product, we try to purchase the same product, even without
checking our requirements. This is the very common mistake most of naive
insurance enthusiasts commit.
To avoid this, consulting an agent or online insurer would
help which will give you an insight based on your profile.
Before consulting an insurance advisor, prepare a
profile sheet with following details:
1. Age of self, spouse, children and parents.
2. Annual income of self and spouse.
3. Investments or EMI’s being paid.
4. Existing Loan details
5. Targeted retirement fund
6. Financial targets with timeline.
This will be useful for a
genuine insurance advisor to gauge your current financial status and give a
clear idea over your financial goals. Most of the insurance agents unilaterally
go for few policies such as Jeevan Anand, without understanding customers’
profile. Any insurance agent suggesting a product without asking details need
to be avoided, as the products he/she suggests may not meet your requirement. An
expert insurance agent will interrogate for a minimum of 5 minutes, which will
give him idea what customer is expecting through policy. Only then, he/she will
be able to suggest products that will suit us and our family.