Insurance – Protect yourself from Miss-selling & Purpose of Insurance

In the context of Insurance the golden rule is Never mix Insurance with investment. Which means that insurance is basically meant to protect against an unpleasant (and unforeseen) happening. If it is a insurance policy that pays at an event that you look forward to than it is an investment um insurance policy and in all likelihood has been miss-sold. Another way to find out is a simple test – Was the concerned sales person overeager to sell the product – that is a fairly reliable sign of a miss sale in progress.

Zee Business Money Guru Insurance Special: I want to surrender my Insurance Policy

Dear Sir, my son has been investing Rs 60,050 p.a. premium against Jeevan Saral
Policy since 5 years, now he wants to stop it without loss and to be benefited what he has to do? pl. suggest and give advice hence forth.


Firstly, you should never mix insurance with investment since an insurance product is designed to provide protection to the dependent after the demise of Policyholder/earning member.

LIC money back & Jeevan Saral are traditional plans. These kind of traditional plans do not fetch returns more than 5% -6% and are unlikely to beat inflation. Since the data provided by you is insufficient as regards the age and Sum Assured, it will not be possible for us to review the same. You should review the policy based on the current surrender value, future premiums payable and expected maturity value. If the IRR is more than 8% then you should continue as debt portfolio or else you should surrender.

You should buy an Online Term Plan for a cover equal to 12 times of your annual income, before discontinuing the current policy. Disclose all facts correctly while buying the policy including existing insurance plans and health history.
Assuming your son is earning and someone is dependent on him, he should buy an online term insurance policy from Aviva i life.

Zee Business Money Guru: Which Term insurance and Health insurance policy i should opt?

Respected sir
I shamim 45 years
my wife 47 years
Son (student) 22 years &
Daughter (student)19 years old.
I & my wife both under govt service
My income 4.5 lac anualy.
My wife income 5.5 lac anualy.
In 1996 Operated rasoli from utrus
My whole family have no any illness .
Not smoking my all family members.
Both husband and wife insured 7+7=14 lac only
Both have no any medical and term plan
Plz suggests,
1-the best medical plan and which company for my whole family and
2-Best term plan and amount and company also for both husband and wife.Thanks

Employer provided insurance. : 2 lakhs. Yearly exps. 500000/- ie 50%
LIC Of wife money back:- 13000 p.a.,
Daughter policy – 20,000 p.a. premium Smart Kid. Before 5 yrs.
Postal Life Insurance : 5 lakh each – Postal insurance Rs 5,200 per month premium.
Bank account in SBI and PNB.

Shamim Ahmad Muzaffarnagar (U.p.)


Term insurance is the least expensive plan to purchase the death benefit. Under term insurance there is no maturity value payable at the end of policy term but only death claim i.e. full sum assured is paid to the nominee if person insured dies during the term of the policy. Term insurance is the simplest type of life insurance and easiest to understand. You do not have to calculate the charges and returns in this plan, as you know from the day one that premium paid by you is expenditure. The idea of not getting anything back at the end is still misunderstood by the people.
You have taken the right decision of buying term plan for yourself. You should buy life insurance only if you have any dependants. As a thumb rule, you must have life insurance cover equal to 12-15 times of your annual income. As per your current income you should have a minimum term cover of 50 lakhs. Assuming retirement age of 60 yrs for both you and your wife,Aviva i-life online term plan for 50 lakhs each will cost you Rs 11,914 p.a. for you and Rs 13,206 p.a.for your wife.Yearly and half yearly premium payment options are available.

You can consider buying Bank of Baroda Health Insurance policy for Rs.5 lakhs, which will cost you Rs.7, 100 p.a inclusive of service tax. Please note, the policy is renewable up to 80 years of age and is available only to Bank of Baroda account holders. It covers family of 1+3 which means Self, spouse and two dependent children. In order to avail these mediclaim policy you need to open an account with Bank of Baroda.
You can consider buying Punjab National Bank Health Insurance policy for Rs.5 lakhs, which will cost you Rs.6, 830 p.a inclusive of service tax.. It covers family of 1+3 which means Self, spouse and two dependent children


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