'What are the benefits of buying insurance online?'

In an online chat with Get Ahead readers V Viswanand, director and head, Products and Persistency Management, Max Life Insurance, answered queries on the importance of insurance in financial planning.

Here is the unedited chat transcript:

Megha Nambiar: Is online buying of insurance good for the long term? Do I save any money by buying online?

MLI: Online term plans are more cost effective. You may explore comparing online term offerings from leading life insurers to make a decision. Please check not only for price but also claims settlement record, service paramenters and product features.

kunal: IS PVT INSURANCE COMPANY BETTER THAN LIC IN TERM PLAN.. THEY ARE GIVING IT SO CHEAP.. WILL THEY ALSO GIVE CLAIM..????

MLI: Before you buy any online term plan it is always advisable to check for claim settlement record. However there is no difference between LIC and private life insurers as thy are both goverened by the same regulator

Arvind Irani: How about investing Rs 15,000 every year in term insurance and another Rs 15,000 in buying mutual funds? Will i take care of my invstment and insurance needs?

MLI: Unless we know what your needs and current financial standing is, it would be difficult to answer your question

harshal mitkari: I have taken Jeevan tarang policy for my daughter 5years back is it worth to contiune with the policy

MLI: Life isnurnce is a long term solution and it is alway advisable to stay with the policy till the time you achieve the goal you bought the policy for

harshal mitkari: Why returns on L.I.C are lesser than Bank return

MLI: The comparison may not be justified since Life insurance also provides protection

Shankar Kathurde: What is a term policy. how does it help someone with a home loan ?

MLI: Term life insurance provides pure protection. It helps cover the home loan amount in case of unforseen circumstances

kunal: IS PVT INSURANCE COMPANY BETTER THAN LIC IN TERM PLAN.. THEY ARE GIVING IT SO CHEAP.. WILL THEY ALSO GIVE CLAIM..????

MLI: Before you buy any online term plan it is always advisable to check for claim settlement record. However there is no difference between LIC and private life insurers as thy are both goverened by the same regulator

Imran Farooqui: How to get rid of bad ULIPs and pension policies I have purchased?

MLI: Life insurance is a long term product and it is advisable to remain with the product for the entire term. However if you are not happy with the product you may get in touch with the life insurer to express your concerns.

Ganesh Walke: I have sbi ulip and reliance,Lic of india. Are these good ULIPs?

MLI: We do not have details of the products you own. However, all life insurance policies are long term savings and protection solution and if you have bought your policies with a goal in mind please stick to them till you attain those goals.

If you have bought these with specific life stage goals in mind, please stick to them till you attain your goal. However, without the exact product details we would not be able to comment

Farhan Aziz: How about annuity policiies Would you prefere an annuity or moneybaclk policy over term insurance?

MLI: All three are different products and service different needs. Term is a pure protection product while money backs are meant for different life stage needs suc as childrens education and even for retirement. Annuities on the other hand are pure retirement solutions. You may buy immediate annuity with the available corpus or buy a life insurance retirement plan which will give you annuities later

Seema Dutt: How good ae annuity income plans from insurance companies?

MLI: Life Insurance companies have an inherent expertise of managing long term funds. They offer various annuity options which you could choose as per your needs.

Chinmay Thakur: What are the benefits of buying ULIPs over other traditional insuance policies?

MLI: ULIPs are market linked products and provide you with an opportunity to take advantage of the upside of the stock market. However you also have the risk of the downside. While traditional life insurance policies gives you fixed returns. Your risk appetite should decide whether you want to go for an ULIP or a traditional policy. For risk profiling you may get in touch with a Max Life agent advisor

Murali Bansi: How many years should I save in insurance to have a great retirement?

MLI: Starting as early as possible is the best solution. Also, it is never too late to start. If you havent started as yet, please start now. Incase you are starting late, incraese the amount of saving

Sukhvinder Agah: How can insurance help retirement planning?

MLI: Life Insurance is a long term savings and protection solution and is best suited for long-term goals like retirement. It can provide constant income in your golden years not only for you but also for your spouse, after you. Even during the accumulation phase incase of an unforseen circumstance, the policy will ensure that your retirement goals are met

Saroj Khan: which is the best online insurance produc to buy?

MLI: You must compare online term plans of leading life insurance companies. While taking a decision you should not only consider the premium but also the product features and claims payment record. Please consider Max Life Online Term Plan also for its unique features, service quality and claims management.

Raju Vohra: How do I know if I have got the best life insurance policy?

MLI: A life insurance policy which has been bought by you keeping in mind your specific life stage need and you have the ability to pay for the full premium paying term is a good life insurance policy for you.

Mayank Mehta: Any idea what ideal life insurance amount for a person earning Rs 30k per month and just two members?

MLI: Going by the thumb rule you should have life cover of 10-12 times of your annual income. This will translate to sum assured of around Rs.40 lakh. Add to this the long-term liabilities you have such as mortgage. However, I would suggest you take the help of an advisor who will do the complete need anyalysis and will give exact sum assured you require

Illustration: Utam Ghosh