Stella was in her early school days when her father one day drew up a vertical line on a piece of paper and asked her if that was long or short. The child couldn’t figure what to say. Her father smiled and drew up a small line next to it and then asked the same question again. She was prompt this time: “Long.” She got her first lesson in comparison that day.
Years later, Stella Rodrigues encountered a largely similar situation, when she went to buy a life cover. There were so many options that she couldn’t figure which would be the best fit for her. In a market of simmering competition, insurers are constantly in the process of innovating their products to match the various requirements of the buyer. Such an extensive spread of options made her confused over the terms and conditions and the inclusions and exclusions.
Stella wanted a simple life insurance policy at the lowest premium but she couldn’t zero in on one because of the highly complex nature of the policy parameters.
This has long been a major hindrance in the buying process. When customers do not understand the product rightly, they delay the decision of making the purchase. They also often shy away from buying policies because lack of clarity in the process may create dispute at the time claim settlement. The result is obvious. The insurers suffer a loss of faith and confidence among their customers.
Confused and frustrated, Stella too shelved the plan, and moved on to invest the money in fixed deposits.
Esta historia es de la edición March 2021 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2021 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms