In today's article I would like to draw your attention on "Why we don't need an insurance policy?"

Insurance in India is majority times sold and not purchased. In most of the sales calls I have done majority people have insurance policy because some of their relative had taken LIC agency and as a result they sold them a policy which they could not refuse. This is a fact which we have to agree upon.

Think of an example where the bread earner is going out of town for a week leaving family behind. The first thing he will do is give money for more than 7 days to the other members in case he is late in returning. But when it comes to Insurance we do not care. We think of one week absence than why don't we think of sudden permanent absence?

The article title says it right, We don't need insurance policy but we need to be insured.

For an unmarried person amount of insurance must be at least 5 times annual income depending on dependents while for a married person it must be at least 10 times of annual income.

So now ask your self, Do we need insurance policy? or Do we need to be insured?

While buying insurance the first question comes to our mind is, which insurer to select? this question comes to our mind because of constant advertisements bombarded by private insurers claiming to be the best. People try to act smart by looking at claim ratios of various companies which is a misleading figure because if you compare LIC which had 30 crore+ policies in force while others have not even 10% in force it is obvious figures can not be compared.

One must stick to the giant whose policy is guaranteed for repayment by the Government of India. There is no question of default or closure of company.

So think over are you Insured??? If you want to get your insurance needs assessed do get in touch with us.

Hardik Baxi,

Baxi Investment