Comment posted on Is it just your insurance company’s fault? by Ajit.
All ULIP Plans are very costly and expensive. Just ask the Agent who sold you the policy that if you gave you 100 rs as a premium – how much of that will be invested in the plans & how much will be the fund managment , Premium allocation charge , Mortality charges. In some cases the charges are as high as 25% for the first few years.
My suggestion would be
1) Buy a Pure Term plan. For 5000 rs a Year – You may get 15-20 lac of Insurance cover
2) Invest in Mutual funds ( Debt/Equity ) or Recurring deposits or Corporate deposits for good return over a period of time
Ajit also commented
- Thanks Pankaj for your reply..
I have couple of comments and queries
1) what is the standard industry practice for co-pay ?. I have googled it a lot but unable to find a industry standard document or IRDA guidelines on this. My perspective in co-pay is ..if i am already paying from my pocket an amount that should be considered as a co-pay. As an example – I have a policy cover of 5 lacs and i had a medical bill of 7 lacs. The 2 lacs extra for the bill anyway i am paying ..so why the insurance company is deducting another 15% co-pay from 5 lacs.
2) In India – apart from corporate ..no company issues a policy for elder parents and even if they issue they have lots of clauses and condition which are practically impossible to met ( as an example – will not pay for existing diseases for 5 yrs etc …)
- I have one query on one of the insurance policy ( new india assurance ) that has been provided by my corporate for covering myself and family dependents. As per policy – there is a co-pay applicable for all claims for parents.
The sum insured amount for family was 5 Lacs. during the course of the year – i submitted various claims. For the last claim – the limit remaining was 3.13 Lacs. when i submitted a claim of 3.78 Lacs – to my suprise – they paid me 3.13 Lacs – 15% ..while i was expecting ( 3.78 – 15% of 3.78 ) subjected to a cap of limit remaining i.e 3.13 lacs.
In other word if some body presents a claim of 7 lacs under this policy ..so he will get 5 lacs or ( 5 lacs – 15% of 5 lacs ).
Could you please clarify. I felt strongly cheated by the insurance company as i understand hat co-pay means to share the claims amount but it should not reduced the sum insured.