Don’t fall into the Insurance Trap – Good LIC plans are closing soon

This is not about agents who sell expensive, unsuitable and unwanted. But this is about new kind of trap.

Currently One big lie is that most of the best-selling plans from LIC are going to be discontinued or closed before 1st January 2014 after the new Irda guidelines come into effect.

LIC Agents are spreading the rumors, that policies will become costlier because service tax and it will be taken from user/people. This kind of trap really works as people are rushing to buy insurance before the guidelines come into force.

In September, LIC  spreads that news that most of the good LIC plans are going to be closed and people falls in that trap. And LIC sold new policies worth Rs 8,434 crore. This was 55% higher than the premium from new plans sold in September 2012. Sources reveal that Rs 2,000 crore of this amount was collected in the last two days of the month.

But as LIC sees that the Trap is working well now the deadline of 30 September is extended till 31 December 2013. and they are saying it may be extend too because they have not yet came up with new plans.

Some of the most widely sold endowment policies and money-back plans will soon go off the shelves. However, if you buy them before 31 December, you can enjoy their benefits. The first statement is true. The second is only partially true. While many insurance policies will be discontinued, they will be replaced by better, more customer-friendly plans. Irda’s new guidelines for traditional plans have not only enhanced the value of a policy, but also lay stress on longer terms and higher covers. The premiums could go down because the LIC will use revised mortality rates to assess the risk. Source: wealth.economictimes.com

See What will change for Life Insurance Policies from 1 January 2013 in LIC

 

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