The insurance business in India isn’t just growing but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business. Mint features a weekly Q&A on insurance, every Monday.
I am planning to take life insurance cover in the near future and have preference for term insurance over any other insurance plan as one can get high coverage for a smaller premium. Though, the premiums paid are not refundable. Can I please have your views on this matter, including aspects like the various products in market, pros and cons of term insurance, state owned vs. private players, riders with life cover etc.? I am planning to get a cover for Rs50 lakh. I am 28 years with annual income of Rs10 lakh and almost no life insurance cover. —MANU JAIN
As you have already decided the amount of cover you require and the type of product you would like to have, I assume that you have gone through some kind of financial planning exercise, which is a very good beginning on your part. With regards to the term insurance products, there are many options available to you in the market both from the private and public sector organisations. You must choose a coverage term, the period for which you want the cover and then take your decision. Term insurance products are excellent in terms of providing long-term coverage at an affordable cost.
However, you must also consider saving money through other insurance products to take care of your future financial milestones, which can be done with the help of endowment or unit-linked insurance products provided by insurance companies.This will ensure that you have the right balance between savings and life insurance as both are equally important for meeting long-term financial objectives.
Are there good career options that employees in the business process outsourcing industry can explore in the insurance sector?
Insurance industry has been able to generate large scale opportunities for individuals across age groups and various streams of work. Insurance companies today provide attractive opportunities at various levels in functions like sales and marketing, systems, operations and customer services, finance and budgeting, human resources, etc.
The insurance sector has generated close to 7,50,000 new business opportunities in the country over the last six years alone. Insurance companies, by virtue of the business, also offer opportunities in specific skill based streams of work, such as actuarial science and underwriting. Apart from these, insurance companies have also emerged as a key sector that provides opportunities in direct selling through advisors and financial consultants.We feel that after BPOs, the Insurance sector is going to be the next big BOP (business opportunity provider) in the country.
What are the various ways in which the premium remittances can be done to the insurance companies?
Insurance companies provide various options to policyholders to pay their regular premiums. You can pay the premiums by cheque payment through your agents or at the designated offices of insurance companies.
You can also deposit your cheque at various drop points which may be the bank ATMs or other such payment collection agencies. Credit cards, direct debit from your bank account, and payment through the Internet are the other premium payment options that many insurance companies provide to their policyholders.
Readers are welcome to write in with their queries to email@example.com. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Rajesh Relan, managing director, MetLife India Insurance Co. Pvt. Ltd.