subject: Comparison Of Life Insurance Products [print this page] Before buying life insurance, compare the rates and features, zeroing in on a product which you can think can cater to your requirements. With a plethora of options available, you need to make a diligent comparison of insurance products on the market.
Competitive market makes finding the best insurance rates possible for the customers. Insurance market is pretty crowded, which is ultimately good for the buyers. Companies are trying to come up with unique products. However, buyers need to find a way to compare various options available and decide on one which best suits their interests.
The reason you must shop around for insurance products is that you can always get a better deal, either because of competition or different business practices. There will be uniformity on certain issues, especially if it is a regulatory concern, but there will be differences as well. You have to compare these differences and find out which plan is the best for you.
Make sure to check as many insurance products as possible to discover the best insurance rates. The Internet provides the most readily available source of information. There are websites which provide complete information about the products available. You just need to fill in a form and submit, and you will be provided with the quotes. You can compare the rates and the features then, zeroing in on a plan which you find the best for your needs.
Life insurance market in India is an underdeveloped one which was tapped by the state-owned LIC until the private players were allowed in the market. Insurance products have reached only a section of the insurable population. The LIC previously sold insurance only as a tax-saving instrument and not as a product which provided protection. Most people were under-insured. However, with the advent of the private insurers, the scenario has changed for good.
There are several companies in India offering insurance products. They have introduced innovative products, smart marketing strategies and aggressive distribution networks. The peoples outlook has also undergone a sea change. The Indian, who once looked at life insurance just as a tax-saving instrument are now much more aware why they require insurance.
Although the private players are growing rapidly, the state owned insurance companies have major chunk of business like money back policies and endowments. In the annuity and pension products, the private insurers have taken a third of the market. In unit-linked insurance schemes, private players have a monopoly, with more than 90% of the business.
Private insurance carriers have successfully persuaded people to purchase bigger policies. For instance, the average size of a life insurance policy in the pre-privatization era was around Rs.50,000 which has now grown to Rs.80,000. However, the average size of the policies with private insurance players is around Rs.1.2 lakhs, considerably higher than the industry average.
You can compare life insurance plans of Life Insurance Corporation (LIC), HDFC Standard Life, Bajaj Allianz Life, Tata AIG Life, Aviva Life, ICICI Prudential, Birla Sun Life, Kotak Mahindra, Reliance Life, etc. and decide on a plan which you deem best. You must never buy a policy without going through its features. It is you who is going to pay premiums and you must know exactly what the insurer has on the table.
by: Sukanya Mitra
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