is good to get the life term insurance plans from private companies like HDFC , SBI life or ICICI. If they have the good track record on providing amount during death of the insured person like LIC

Ans: Private life insurance companies like HDFC Life, SBI Life, and ICICI Prudential Life have established a strong presence in the insurance market and have a good track record of claim settlement. They are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and adhere to the guidelines set by the regulatory authority.

Here are some points to consider when choosing a term insurance plan from private companies:

Claim Settlement Ratio: Check the claim settlement ratio of the insurance company. A higher claim settlement ratio indicates that the company has a good track record of settling claims.
Financial Strength: Assess the financial strength and stability of the insurance company by checking its solvency ratio, profitability, and credit ratings.
Policy Features: Compare the policy features, benefits, riders, and exclusions offered by different insurance companies to find a plan that meets your needs and requirements.
Customer Service: Evaluate the customer service and support provided by the insurance company. Prompt and efficient customer service can make the claim settlement process smoother and hassle-free.
Premium Rates: Compare the premium rates of term insurance plans offered by different companies to find a cost-effective option without compromising on coverage and benefits.
Reviews and Feedback: Research online reviews, testimonials, and feedback from policyholders to gauge the reputation and reliability of the insurance company.
While LIC (Life Insurance Corporation of India) is a trusted and government-backed insurance provider with a high claim settlement ratio, private insurance companies also offer competitive term insurance plans with attractive features and benefits. It's essential to do thorough research, compare different options, and choose a reputable insurance company with a good track record of claim settlement to ensure financial protection for your family in the event of your untimely demise. Consulting with a Certified Financial Planner can help you make an informed decision and select a term insurance plan that best suits your needs and budget.

Ans: Any term insurance plan is good. Just make sure that you provide accurate information to the insurance companies when you buy the policy.

Ans: Term life insurance is designed to provide financial protection for your loved ones in case of your untimely demise. Choosing between a policy with no returns and one with premium returns depends on your financial goals. A policy without returns typically offers higher coverage at lower premiums, focusing solely on protection. On the other hand, a policy with premium returns provides a safety net by returning premiums at maturity. For a 37-year-old with a 27 LPA CTC and a family dependent on you, a sum insured that covers at least 10-15 times your annual income would be ideal. When selecting an insurer, prioritize companies known for competitive premiums and efficient claims settlement.

Ans: Tata AIA Sampoorna Raksha Promise
ICICI Pru iProtect Smart
MaxLife Smart Total Elite Protection
Bajaj Allianz Life e-Touch

The above mentioned term plans have the features/riders as desired by you. Their claim settlement ratio is above 99% for past 3 years.
They can be purchased online. Do your due diligence and seek help from an Insurance advisor, if needed.

Ans: You are showing strong energy in promoting your business. It takes effort to approach people with insurance solutions. However, as a Certified Financial Planner, I must explain this from a 360-degree perspective, keeping in mind what is best for customers and their financial goals.

» Understanding the nature of LIC policies
– LIC offers traditional plans, ULIPs, pension plans, child plans, and guaranteed plans.
– These policies usually combine insurance and investment together.
– Many policies have sovereign guarantee on the invested portion.
– People feel safe because of this backing.
– But safety does not always mean better returns.

» Insurance versus investment purpose
– Insurance is best for protection, not for returns.
– Investment is best for wealth creation, not for protection.
– Mixing both in one product usually reduces efficiency.
– Traditional plans give low returns compared to inflation.
– ULIPs carry charges that eat into long-term gains.
– Pension and child plans often lock money for long years with less flexibility.

» Why term insurance is different
– Term plan gives high cover at very low cost.
– This protects family in case of death.
– It does not try to give returns.
– So term insurance is always essential for every earning member.
– Other insurance products for savings are not as effective for wealth creation.

» Issues with ULIP and traditional policies
– ULIPs have high charges in initial years.
– Fund switching and allocation rules are complex.
– Traditional policies usually give 4–5% returns only.
– These returns are lower than inflation over long term.
– Policyholders feel safe, but wealth does not grow.

» Long-term wealth creation needs
– For retirement, child education, or financial independence, higher growth is needed.
– Mutual funds with active management usually beat insurance-linked plans.
– Flexibility of investing more or withdrawing when required is higher in funds.
– Insurance products often have long lock-ins.
– Early exit from such policies brings losses.

» What happens if someone holds LIC, ULIP, or investment policies already
– They must check surrender value versus future benefits.
– Many times, it is better to surrender.
– Proceeds can be reinvested into mutual funds.
– Mutual funds with CFP guidance provide better compounding over years.
– Insurance cover should be continued separately through pure term plan.

» Why customers may feel attracted to guaranteed or sovereign-backed policies
– People like fixed guarantee and sovereign backing.
– But guarantees come with lower growth.
– Over 15–20 years, low returns fail to beat inflation.
– This reduces purchasing power of money in future.
– Active funds, though market-linked, usually give higher inflation-adjusted wealth.

» Drawbacks of depending only on insurance products
– Limited flexibility for partial withdrawals.
– Limited transparency on returns and costs.
– Difficulty in tracking performance year by year.
– Low surrender value in first years if customer wants exit.
– Higher premiums compared to simple term cover.

» Why mutual funds with CFP guidance are better
– Actively managed funds adjust to market changes.
– They give better chance of wealth creation.
– Professional review helps avoid underperforming funds.
– Liquidity is high, unlike locked insurance policies.
– Returns are usually higher in long term.
– Tax treatment is more transparent with clear rules.

» Balanced approach for customers
– Take adequate term insurance for risk protection.
– Avoid mixing savings and insurance in one product.
– Build wealth through disciplined SIPs in mutual funds.
– Review policies and surrender if they are not effective.
– Focus on inflation-beating returns for long-term goals.

» Final insights
– You may find buyers for LIC plans offline or online.
– But from customer interest view, pure term cover is enough.
– For investment, mutual funds with CFP monitoring are better.
– Traditional and ULIP plans reduce wealth growth due to low return or high cost.
– Customers must focus on separating insurance and investment.
– That approach creates both protection and wealth.
– So, selling insurance plans is possible, but best advice for customers is different.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment