Life Insurance: Anuj Agarwal

Some investment products are available online. Are these better than the ones available in the market? What are the pros and cons of such online products?
Online is an additional distribution channel to reach out to the more informed and a net savvy customers. There might be some features or limits in terms of sum assured that may or may not be available in other channels like agency or bancassurance. As such there are no major pros and cons of buying online plans. The product benefits almost remain the same. Some of the endowment plans available online offer certain premium rebates or higher allocation rate depending on the type of the plan. There are no disadvantages associated with the online purchase of the life insurance plans and it also gives you a good buying experience. The only care you should take is to ensure that you understand the product well enough by going through the features or knowledge capsules or product literature usually provided in the website. If not you can choose the web chat option provided by insurers.

Are health insurance products from life insurance firms cheaper than those offered by health insurers? What are the advantages of health plans from life insurers over those from health insurers?
Health insurance plans offered by life insurers and general insurers have their advantages and disadvantages. Health insurance provided by health insurance or general insurance companies are annual contracts and has to be renewed every year to have continuous coverage. Health insurance from a life insurer is long term contract and has a level premium through the policy tenure. The premiums of the health insurance plans offered by life insurers are guaranteed for at least three years. The explicit guarantee of premium may appear slightly costlier than those offered by non-life insurance companies. While deciding on health insurance, you should seriously think about the features, coverage, policy tenure and the claims process.

I had bought a 20-year term plan 10 years ago; I am 40. Today, while checking online, I learnt that I can get similarly covered for Rs 2,000 cheaper than what I am paying. In that case, does it not make sense to discontinue the current term plan and buy a new one?
Before you cancel and take a new policy, it is always better to evaluate the optimum cover that you ideally should have at the present time. Since the previous term plan you had taken was 10 years earlier, your requirement at that point of time would have been different from your present requirement. A quick evaluation through the various high life value calculators available online can help you arrive at the possible deficit in the cover, for which you can take a new plan.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in

Today, Anuj Agarwal, CEO of Bajaj Allianz Life Insurance, answers your questions