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It certainly makes you confident that insurance company will take care of everything when you die. But are you really sure? Did you check the fine print? What i
by lafar6502 13y ago
It certainly makes you confident that insurance company will take care of everything when you die. But are you really sure? Did you check the fine print? What if your death is 'because of age' or 'because riding a bicycle is a dangerous activity'?
- vishnugupta 13y agoLife insurance business in India is very tightly regulated. In fact till very recently there was just one player, LIC (Life Insurance Corporation of India), which is essentially backed by the state. And LIC, being the oldest player in India, is profitable and has the highest claim settlement ratio, about 98%. Even though I haven't really checked the complete fine print I'm more or less certain, looking at the settlement ratio, that they wouldn't include such clauses. That's the reason I'm fairly confident the insurance company will take care of everything.
- lafar6502 13y agoWell, i'm relying on maths, not on government regulations. All the data is there, you can calculate the expected payout value for current mortality data and compare it with your yearly insurance cost. I don't know how much you pay but my calculations showed that insurance companies must seriously reduce the payout amount and/or exclude a majority of 'payable' illnesses or death causes, or they would lose money on every life insurance sold. That's why i don't believe in life insurances and prefer other solutions.