Revolution in Insurance Industry

Last year I had written an article on how a large of insurance industry (atleast the kickbacks) were supported by Money Laundering. 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.
These are:

  1. i-protect by ICICI Prudential
  2. 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:

  1. 15,000/- p.a. from LIC Amulya Jeevan
  2. 11,000/- p.a. from ICICI- Pure Protect Elite
  3. 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.

2 replies on “Revolution in Insurance Industry”

All these anomalies and distortions in the insurance industry will disappear when the tax benefit on insurance is removed. Also on mediclaim.
Also insurance agents must be allowed to work for all companies like MF agents.

direct tax code has redifined insurance… as a term policy with premium payment of <5% of the sum assured… so ULIPs and other non insurance products can no longer disguise themselves as one….
i know of a certain companies that took corporate dealership of insurance and are working for multiple companies

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