It has not long since the insurance sector was liberalized in India. But already there are a dozen life insurance companies to choose from and a lot more than the test in the life insurance business.
The potential of the Indian market is enormous, and all these companies are the customers with escalating information - in any product superiority and a business strategy is successful, all that is written about them. In this environment of claims and counter claims, the customer is really in a position to see the benefits that a life insurance contract offers?
During my discussions with several potential customers, many have their frustration or confusion about the value of life insurance in comparison to "other" investment instruments. What should they really buy?
Historically, life insurance was sold in India for the tax and investment considerations. But a true life insurance product offers the right balance between protecting against the risk and savings, but as a pure investment product.
This realization of the hierarchy of protection begins to settle in India, with more and more people are realizing the true value of life insurance.
Often, people still find it difficult to decide which way when buying life insurance. On the one hand you have a 32-year-old life insurance agent sitting in your living room and displays impressive graphics and try to tell you why life insurance is the best tax deferred investment tool you can buy.
You can almost hear his stomach growl as he hands you a pen with sweaty hands. "How bad will it sell?" You ask.
This is a scenario. Consider another. You have a 48-year-old investment broker can tell you how many of his customers have rich last year thanks to his advice and why to build an investment portfolio would be foolish to waste his money for life insurance m.
He dazzles you parading impressive statistics and trends, compare interest rates between stocks, bonds and life insurance.
Deep in the middle of confusion, you decide that you better go with your gut "feel and the seller sounds sincere. The problem is, of course, that neither the seller has your best interests at heart. What is more, they have only a limited view of their own products and the niche they think the products occupy.
They are only available with a sale, and the Commission so much of your purchase as possible.
So, they run the competition and the use of bluff and bluster to sell you a product that you do not need. What is more, they crow about their sales and train others to use similar tactics. They somehow managed to successfully mentors for others, and the result is that the customer suffers and ends in a situation where his financial planning is totally inadequate.
So, what is the truth? The truth is neither life nor their traditional forms of investment (stocks, funds, bonds, etc.) can replace each other. You must be a complete, intelligent and secure portfolio.
Compared with life insurance investment vehicle is like comparing apples with oranges, they are two very different instruments, and both are important for you and your family's financial security. Investments with the attempt to calculate risks.
Insurance products to minimize or eliminate risk. Properly written life insurance provides a family with immediate replacement of the current and anticipated future income, if a provider incomes unexpectedly.
There is no risk, speculation, market fluctuation, volatility or anticipation of unexpected financial breaking wood. As long as you are not to be confused with investment-oriented life insurance products. Traditional investments are crucial for retirement, but the investment up to a life, to mature and grow.
What is your family do if you die tomorrow and can no longer finance or manage the investment? What happens if a family bread-winner dies in an accident and leaves the spouse alone to take care of the children, household expenditure and the financing of investments in retirement? That is what is responsible for life insurance.
The assumption that a person in a family planning and actively with the actual retirement investments (mutual funds, stocks, bonds, etc.), I can not imagine why this person would not want to protect all the with life insurance.
Be careful in making decisions: In fact, the way we often refer to insurance products creates most of the self-imposed and self-defeating obstacles to our own financial security. To give you an example, I recently had a potential customer ask me, "With the payment to the agent to be tremendously higher, does not it make sense to promote life insurance?"
Let us check whether the statement. If I am ill, I do not worry about how much a doctor makes when he orders a complete blood test, as opposed to a needle test. Such thinking is called "crab mentality" in our society. This is undoubtedly the most important obstacle to the dedicated and honest insurance professionals to help our customers with superior life insurance solutions.
Many people would not hurt themselves with inferior products, or as someone who see more money than they reckon is "fair".
Do not worry about what a company is paying an agent. Concentrate on value proposition, which sold the agent for you. Be sure not to fall victim in this case to go before you make decisions about your own safety.
I have many other intelligent and thoughtful people ask me: "Why should my hard earned money on life insurance? I'm looking for my financial future, and life insurance only pays if I die."
The answer can be found in the question. Life insurance is not for you, it's for your family and relatives. If you are single with no relatives, you may not need life insurance. But if you are married, especially with a non-working spouse, or if you have children, there is simply no way that you can do without life insurance.
With the purchase of life insurance, you can help make sure that those you leave behind are financially secure enough to:
Replace your income.
Pay off debts, such as a mortgage or a car loan.
Continue with plans you have already in force, like your children to higher education.
Forget the sales hype: I hope I have been able to point to the need for life insurance vis-à-vis the need for savings instruments. Forget all the sales hype. Quite simply, there is no conflict between life insurance and other savings products. When used prudently, they make a successful combination.
At Max New York Life, we have in the industry with customers in India and the value of life insurance - what is the protection. Our strategy to focus on the protection has worked well. In just two years ago, we are among the leading life insurance in India with over RS 5400 in the sum assured, having sold more than 143,000 individual policies. We offer 11 products and nine riders who are individually at more than 250 combinations. Most significantly, 70 percent of the policy we have the "Whole Life" policy, which gives our customers a prudent balance between protection and savings.
Life insurance is a protection against the specter of death. The heavy gray science of actuarial tables and lists can pay the fates of people and families. It may provide them new life. This is the reason why life insurance is a noble business.
The potential of the Indian market is enormous, and all these companies are the customers with escalating information - in any product superiority and a business strategy is successful, all that is written about them. In this environment of claims and counter claims, the customer is really in a position to see the benefits that a life insurance contract offers?
During my discussions with several potential customers, many have their frustration or confusion about the value of life insurance in comparison to "other" investment instruments. What should they really buy?
Historically, life insurance was sold in India for the tax and investment considerations. But a true life insurance product offers the right balance between protecting against the risk and savings, but as a pure investment product.
This realization of the hierarchy of protection begins to settle in India, with more and more people are realizing the true value of life insurance.
Often, people still find it difficult to decide which way when buying life insurance. On the one hand you have a 32-year-old life insurance agent sitting in your living room and displays impressive graphics and try to tell you why life insurance is the best tax deferred investment tool you can buy.
You can almost hear his stomach growl as he hands you a pen with sweaty hands. "How bad will it sell?" You ask.
This is a scenario. Consider another. You have a 48-year-old investment broker can tell you how many of his customers have rich last year thanks to his advice and why to build an investment portfolio would be foolish to waste his money for life insurance m.
He dazzles you parading impressive statistics and trends, compare interest rates between stocks, bonds and life insurance.
Deep in the middle of confusion, you decide that you better go with your gut "feel and the seller sounds sincere. The problem is, of course, that neither the seller has your best interests at heart. What is more, they have only a limited view of their own products and the niche they think the products occupy.
They are only available with a sale, and the Commission so much of your purchase as possible.
So, they run the competition and the use of bluff and bluster to sell you a product that you do not need. What is more, they crow about their sales and train others to use similar tactics. They somehow managed to successfully mentors for others, and the result is that the customer suffers and ends in a situation where his financial planning is totally inadequate.
So, what is the truth? The truth is neither life nor their traditional forms of investment (stocks, funds, bonds, etc.) can replace each other. You must be a complete, intelligent and secure portfolio.
Compared with life insurance investment vehicle is like comparing apples with oranges, they are two very different instruments, and both are important for you and your family's financial security. Investments with the attempt to calculate risks.
Insurance products to minimize or eliminate risk. Properly written life insurance provides a family with immediate replacement of the current and anticipated future income, if a provider incomes unexpectedly.
There is no risk, speculation, market fluctuation, volatility or anticipation of unexpected financial breaking wood. As long as you are not to be confused with investment-oriented life insurance products. Traditional investments are crucial for retirement, but the investment up to a life, to mature and grow.
What is your family do if you die tomorrow and can no longer finance or manage the investment? What happens if a family bread-winner dies in an accident and leaves the spouse alone to take care of the children, household expenditure and the financing of investments in retirement? That is what is responsible for life insurance.
The assumption that a person in a family planning and actively with the actual retirement investments (mutual funds, stocks, bonds, etc.), I can not imagine why this person would not want to protect all the with life insurance.
Be careful in making decisions: In fact, the way we often refer to insurance products creates most of the self-imposed and self-defeating obstacles to our own financial security. To give you an example, I recently had a potential customer ask me, "With the payment to the agent to be tremendously higher, does not it make sense to promote life insurance?"
Let us check whether the statement. If I am ill, I do not worry about how much a doctor makes when he orders a complete blood test, as opposed to a needle test. Such thinking is called "crab mentality" in our society. This is undoubtedly the most important obstacle to the dedicated and honest insurance professionals to help our customers with superior life insurance solutions.
Many people would not hurt themselves with inferior products, or as someone who see more money than they reckon is "fair".
Do not worry about what a company is paying an agent. Concentrate on value proposition, which sold the agent for you. Be sure not to fall victim in this case to go before you make decisions about your own safety.
I have many other intelligent and thoughtful people ask me: "Why should my hard earned money on life insurance? I'm looking for my financial future, and life insurance only pays if I die."
The answer can be found in the question. Life insurance is not for you, it's for your family and relatives. If you are single with no relatives, you may not need life insurance. But if you are married, especially with a non-working spouse, or if you have children, there is simply no way that you can do without life insurance.
With the purchase of life insurance, you can help make sure that those you leave behind are financially secure enough to:
Replace your income.
Pay off debts, such as a mortgage or a car loan.
Continue with plans you have already in force, like your children to higher education.
Forget the sales hype: I hope I have been able to point to the need for life insurance vis-à-vis the need for savings instruments. Forget all the sales hype. Quite simply, there is no conflict between life insurance and other savings products. When used prudently, they make a successful combination.
At Max New York Life, we have in the industry with customers in India and the value of life insurance - what is the protection. Our strategy to focus on the protection has worked well. In just two years ago, we are among the leading life insurance in India with over RS 5400 in the sum assured, having sold more than 143,000 individual policies. We offer 11 products and nine riders who are individually at more than 250 combinations. Most significantly, 70 percent of the policy we have the "Whole Life" policy, which gives our customers a prudent balance between protection and savings.
Life insurance is a protection against the specter of death. The heavy gray science of actuarial tables and lists can pay the fates of people and families. It may provide them new life. This is the reason why life insurance is a noble business.
