Mumbai: If you have been wondering whether you should take a health insurance and life insurance, Vighnesh Shahane, managing director and chief executive officer, IDBI Federal Life Insurance, helps you decide. Shahane says if you are millennial you need to have insurance cover and your health can determine the cost of your insurance policy.

Edited excerpts: unfit you are, you will have to spend more in premium. Health insurance can also be denied if you are not fit. Your health can determine the cost of life insurance policies as well. In case of life insurance, go for a term plan as it is cheaper.

Right now online term plan is picking pace. What is your projection and do you think that people will be able to buy online without the help of an advisor?

When it comes to online term plans, the basic structure is almost the same with few changes in the features. You can buy term plans online, as it gives you the convenience of checking out the product online. Term plans are not complex and doesn’t need handholding. But for any other kind of insurance plans, you would be better off buying it after consulting an advisor purely because of the way it is structured. In case of Unit-linked insurance plans (Ulips), I am not convinced if the awareness level of the sellers is good enough to explain the product. The customers should be made aware of the product in details.

After the change in the taxation and the change in expense ratio, is Ulip worth considering?

I agree that Ulips are competitive after the regulator changed the charge structure and making it a customer centric product. However, Ulips should not be bought just for taxation. Insurance should be bought from protection point of you. Online Ulip is a good product, however, you should seek professional advice before buying it online.

What is your view on the sandbox model which allows companies you test new products with limited set of customers?

I think it is a step in the right direction where you can incubate new products. We have not yet progressed in that direction from our company. It is a question of time and this year we definitely will be exploring something in the sandbox model and it could start with term plan.