The Facts & The Fine Print

Most of us buy life insurance driven by the need of the hour, especially when it is time to get the benefit of tax exemption or in cases like the present one when the world has been gripped in the clutches of the pandemic. This is not an ideal scenario. You must understand the nitty-gritty of an insurance policy before investing in one. The article shows the way

Life insurance needs no introduction. This is because most of you must have in possession at least one life insurance policy if not more, and if not you then one of your family members. All thanks to the Life Insurance Corporation of India (LIC) that has sold a whole lot of policies ever since its inception and has become one of the most trusted brands in the life insurance space. However, things are changing now and many private life insurers have also stepped up to tap a market that still remains under-penetrated. The life insurance industry in India has seen a plethora of changes since the private sector players were allowed to engage in the life insurance business since 2000. Though there were some setbacks and hiccups in the initial stages, over the last 20 years the industry as a whole has grown multi-fold.

Even the distribution models have evolved substantially with the large bank-backed private insurers increasingly gaining substantial market share. Post the digital revolution in India, there has been increasing digital adoption by customers which means insurers now need to possess strong technological capabilities. And even though the pandemic has dampened growth projections for economies across the globe, the growth story for life as well as health insurance remains intact. In fact, most people have realized the importance of life and health insurance due to the pandemic. Yet, there still remain many doubts in the minds of both existing policyholders and potential buyers. Therefore, through this article, we have answered some of the most common questions about life insurance.