Ask Us: Banking

There can be various reasons for the difference in premiums. The online insurance policy eliminates the agent commission so the premium is low. Also,since private companies want to aggressively increase their market share,they tend to reduce their product prices to some extent.

The claim made by the LIC agent for a delay in claim settlement is not a valid statement. All insurers today have defined a TAT of between 48 hrs to 7 days for settling a consumer’s complaint and which are more often than not also published on their websites. The only reason for delay in claim settlement could be because of a delay in receiving intimation from the nominee or non disclosure of all true facts while filing a complaint.

As long as the documentation is complete and the customer has not hidden any information from the insurer,the claim process is smooth.

I already have a Term Plan and two Endowment policies. Do I need to declare these policies to the insurance company if I want to buy another Term Plan?

—Sumith R,Pune

Yes,it is important to disclose your previous insurance policies. The reason being that your sum assured is decided on the basis your financial eligibility. It is important to be on the safe side and not hide any details from your insurance company at the time of purchasing the policy becausehidden facts can later become a tool for the company to deny your claim.

I am 35 and looking for an insurance product that can help saving tax as well as create wealth in the long term. Are Endowment Plans a good option?

—Prabhakar Singh,Lucknow

There are many good endowment plans available in the market but if your aim is wealth creation with a savings benefit,they may not be the best option. You can look at Aegon Religare’s iMaximise which is a ULIP and offers an expected IRR of 8.14 per cent. It can give you reasonable returns depending on your fund choice and market conditions.

—The expert is CEO,Apnapaisa.com
For your personal finance queries please email at expressmoney@expressindia.com