GETTING OUT OF WRONG INSURANCE POLICIES AND INTO THE CORRECT ONES

A very large percentage of people I find are in a situation in which for what ever reasons they have landed into insurance policies which don’t cover the real risk. They either don’t know how to correct this or take it as fate accomplice and continue. Let me address the issue trying to cover a large percentage of the population.There are three types

1. Those with policies of which premiums have been paid for more than 5 years

2. Those with periods less than five years

3. Those who have paid lump sum one time premiums.

Suggested remedies are

1. Those with policies paid for more than five years can simply discontinue paying further after taking a suitable and affordable pure term policy which covers all or maximum risk and start investing the money thus saved. If needing help I will be glad if you come through my web site www.moneymonk.me

Best advice is possible when individual life and financial position is known.

The amount paid can be refunded immediately when you get a smaller amount or after the policy matures when you get a larger amount which is preferable depends on if and how well you can invest it,know it or learn from me if you like.

2. Those who have paid premiums for less than five years have a difficult decision to make as they need to sacrifice the premiums paid or discontinue when the policies become more than five years old and take path as mentioned above. Even in that case don’t delay taking a pure term policy but plan and manage your budgets and savings.

3. Hard luck for those who have paid one time lump sum premiums but all the same better late than never take a pure term policy to suit your risk.

4. Services personnel. For those serving in Army, navy or Air Force its a rather more difficult call to take. Services have their own group insurance covers for which are not good enough to be considered as pure term covers, adequate to cover the risk. Hence services personnel need to take pure term policies for uncovered gap between the ideal and group cover as explained in my previous blog.

5. Another aspect peculiar to services is that the group insurance cover drastically reduces when you retire, this is particularly sad for those taking early retirements than those serving maximum terms. With increased life expectancy, late marriages and children born still later even those retiring after completing full service also need to give it a thought.

6. Last but not the least must mention the yeoman work done by present Indian Government by making insurance cover available for rupee a day for  4 Lakhs of sum assured through the banks as this is a major cause of poor people not able to get out of their poverty if there is an unfortunate death due to the sickness or accident among the unemployed, poor, less educated and rural people. It has taken 70 years since independence but again better late than never. In the next blog I will give a few examples based on real life cases how badly and sadly inadequate risk cover affects people based on true life stories.

Also useful may be for some www.mcxtra.com