Insurance policies to get more client focused from 1 October 2013
Five days from now, on 1st October 2013, new IRDA guidelines regarding issue of insurance policies would come into effect. Though most of the leading Insurance companies are still in the process of designing new products in accordance with these guidelines, here are some of the basic changes which are likely to get incorporated-
Being asset rich and cash poor
A state of being asset rich and cash poor is one in which the person almost has his or her entire net worth in the form of assets – real estate, family businesses or paper assets like shares and stockholding in companies; while they have very little cash on hand. And there are a lot more people who fall in this category than one would imagine.
What should be the ideal retirement age?
When would be the right time to retire? This thought would have crossed our minds several times. Two or three decades back, if you posed this question to someone, the answer would have been an easy and obvious one- finish education, join an organization, have a stable career with hardly any job changes during the working years, and retire at the stipulated 58 or 60 years of age with all accumulated terminal benefits- PF, gratuity and pension and lead a simple retired life with this corpus. But today, given the job uncertainty and frequent job switches, increased cost of living and lifestyle problems and stress, when to retire has become a difficult decision to make.
Buying an Insurance without a medical test
Now-a- days it is common to see advertisements by life Insurance and general Insurance companies offering a life or health cover up to a certain age, usually 40 years or 45 years without a medical test. This is because such policies without the inconvenience of going through a comprehensive check up attract more potential clients who would think twice or forever postpone taking those which requires medicals to be done. This could be due to a variety of reasons-