What is the positive & negetive aspect of Term insurance?
Why insurance agent do not show interest towards term insurance. Why they insist on ULIP only.
I understand that your statement is in the Indian context.
The single negative aspect of a Term Insurance Policty from the view of the client is that in attendance is no maturity benefit, or in other words it is a short profit policy.
The main poistive aspect of Term insurance is it is cheaper because only the mortality charges and other command charges are levied. The element of good is absent in this policy. The existence assured is covered for larger amounts. You can change you insurer at any given point of time because the question of surrender good point is not involved. The premium is lower for shorter periods.
Most people purloin insurance policy for saving purposes rather than risk cover. As an Investment and Insurance Advisor I other suggest a Term Insurance to my prosepctive clients. 8 out of 10 straight away reject the proposal as there is no maturity good point. No amount of explanation will do to make understand the concept of keeping insurance and investment seperately.
Because of the mistrust of losing a client the agents usually do not push for the same. They only speak about what the clients wants to hear. And many of them are even not aware of a Term Insurance. It is not other the case that it is due to the low commission, but all of the above facts contribute towards it person unpopular.
sorry I am in a hurry, correct it yourself !! see you later.
Universal life commissions to the agent can be significant so it is contained by the agent's self interest to try to steer you in that direction. Simple as that.
Because you favor mutual funds it would make sense for you to buy occupancy for the specified period of time you anticipate you will need life span insurance protection (5, 10, 15, 20 or even 30 years) and then continue to regularly invest contained by mutual funds.
If your agent can't understand that get a current agent.
well, ulips r different from residence plans. if u want pure insurance only and not for investment or better returns in the appendage of policy, its better to go for term policy. within term plans the premium will be very low, and the risk cover is dignified. so, the agent can not get good commission. but ulips are also appropriate. because, u need not to pay for a long time. u can repeal after a short time say 3 years. and its give returns according to the stock market. its more easy to agents to convince the customers surrounded by the case of ulips
Some agents try to push insurance products that own higher payments. If he/she was a biddable agent, however, they would be able to explain what I am about to share you, and help you make your own outcome.
Insurance agents do not make a lot of money on possession insurance because it is initially cheap. It is cheaper than other products, so they make less money on them. However, if you are looking to buy insurance that will cover you the rest of your energy (not just 10, or 20, or 30 years) then you want to buy another type of insurance (like total life, or whole natural life, etc.) because although they are more expensive at first, they wont be later on. When you renew your term insurance 20 or 30 years from presently, the cost will be based on your age then - much, much sophisticated than it is now.
The positive aspect is that you can insure yourself for a higher value at a intensely low premium. The negative aspect is that you wont get anything on later life.
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all insurance type is own positive side subject if customer's need base. possession mean if happen afterwards payable to nominee and if not then did not carry any rupy. so secured your self with low cost and remaining money can invest in money souk directly or indirectly through mutual fund.
ULIP concept will no more in our market so avoid it and wallow in
bye
Answers: Term insurance have nothing negetive. The cost of insurance in any product is call Mortality charge. In every product you take, this charge will be deducted base on your age & insurance amount. So You pay for the insurance whenever you buy any plan.
In term insurance, you are charged for one and only cost of insurance & that too at a constant rate. Initially you pay more then mortality rate & you discharge less then mortality rate within later years. So there is no have it in mind that you will get any return as you are just buying insurance.
As we other think about return assosiated near any policy, we do not think about the amount of insurance we can purchase next to term plan. The amount of insurance required for a person can solitary be provided by term plan.