We know life is precious. We even know that on unfortunate event of your death you dont want your family to suffer, still the most confusing and misunderstood product is life insurance. Ask any person in any age group and each one will have a different opinion on insurance. And usually the first policy a person takes in his lifetime is just because everyone has it or buys it or because the agent sells it.
And thus the first policy I took was LIC. Had taken 2 policies one a normal endowment and other the jeevan saathi. Well had taken both because the agent told me it was good for you and was bought solely on his words and impulse, no study done.
More about the policies.
The endowment policy.: Its just like a normal policy pay for 25 years monthly, quarterly, yearly. Get back the sum assured plus the bonus(at actuals) accumulated over the years. Simple as that. Not much to calculate here. after 25 years you would probably get double of the sum assured @5% bonus every year.
The other was jeevan saathi: again a endowment with a little twist for married couples. pay for 25 years . If one dies within that the partner gets the money and cover continues. else u get the assured plus bonus. Not much to calculate here either double the amount @5% bonus every year.
Agent network:
Well there is much to say about it . You will find them at every place. Maybe someone in your friends is one. So finding an agent is not at all difficult. Its just the matter of finding the right one.
Agent Ability/finanical study :
This is where LIC seriously needs to work it up. Since anybody with basic graduation can become a agent, we cannot be sure if that person is selling insurance for our needs or theirs(i.e commisiion) Most of them rarely ever do a complete study of ur financial situation and the right fit of policy. But things seems to be changing a little bit because of competition . But still needs to work it out.
Trust:
Undisputed. Apart from stray cases You can completely trrust LIC. And it should still be the preferred insurance company over private companies. And you might have noticed soemthing about getting a policy from LIC agent . Do you find a personal friendly touch?, I did.Unlike private companies I have even bought a policy from them, so could make out the difference, .
Service:
You will not get air conditioned offices with smart lighting on tables and cordial staff at any LIC offices. Its a fact about the great company but then its a fact. With the backing of government you also get that attitude when you enter any LIC office. Table strewn all over the place like school benches . At least dozens files on each table. Staff doesnt serve you with smile. Employee strikes twice a year. You can get your work done but it wont be a’wow’ I got it done experience but it would be more like’phew’ I got it done experience.
Claims Settlement:
Havent yet heard anyone saying LIC is bad at settling claims so I guess it must be good. And it has already set an good example during the July floods in Mumbai by settling claims quickly.
Product offers:
This is completely ruled by market dynamics these days unlike pre private insurance era. All policies of all companies are almost the same with little variations here and there. And new products coming out all the time.
That pretty much sums it up for LIC . Great products, great company, and definetely should be the preferred one leaving a few minor cons regarding service its still a great thing:)