Last year I had written an article on how a large of insurance industry (atleast the kickbacks) were supported by Money Laundering. enagar.com/2009/04/15/money-laundering-and-insurance-selling/ I had also hypothesed that the high commission of the tune of 30% of first year premium was unsustainable and would collapse soon. If you search in the archives of e-nagar, you would find atleast 5-6 articles describing how ULIP is everything but an insurance plan and the only person who benefits from them is the agent who sells the plan.
Today there are 2 term insurance plans that are available online. They require minimal/zero documentation. Since they eliminate the commission agent, you can get a 30 year term insurance cover of 10 million INR (1 cr.) for less than 10,000/- a year.
- i-protect by ICICI Prudential
- i-term by Religare-Aegon
To set the perspective right, a 5 million INR (50Lakh) term insurance cover for 30 years via an agent would cost me:
- 15,000/- p.a. from LIC Amulya Jeevan
- 11,000/- p.a. from ICICI- Pure Protect Elite
- 11,912/- from Aviva Life Shield Plus.
So a saving of almost 50%.
Note: The above rates are for a 28 years old average Indian male. Please consult your financial advisor before investing.