Mandar's World

Expression of Heart, Soul and Brain

Insurance and Investments are subject to Emotional risks.

Rahul and Mehul were good friends. With “good” I mean they resided in the same locality and had played together in childhood. Both in their late 20’s, Rahul owned a firm named KSPL and Mehul worked in an IT company (The Turbulent Industry).

One day Rahul approached Mehul and introduced some LIC (Insurance) plans. Since both knew each other, Mehul was also interested to get insured but mentioned some necessary requirements, considering the voltatile nature of the job sector he was part of. He being in IT industry was aware about the work culture and the employment/job expectancy situations throughout his career, with this added expenditure of the premium he needs to pay. He was of the opinion that insurance plans that would mature around 50-52 years of his age would help him with some monetary benefits at that phase of life along with insurance.
He was quite aware about the difference between Investments and Insurance.

Mehul discussed a lot with Rahul regarding his criterias and Rahul agreed on his terms and both moved ahead. Within a couple of days, Mehul completed the formalities and paid for the first premium with some medical tests that were required.
But, after few weeks, to his surpise when he checked the Policy documents that he received, the policies that he had purchased had around 35-37 years of Premium Paying Term. (Mehul would be in his 70’s on maturity).

Mehul immediately contacted Rahul and straightway went to his office. Mehul also showed him the proposal document that Rahul had sent him before purchasing the policy. It clearly mentioned the premium paying term around 27-28 years.

When asked what could be done further, Rahul rudely replied Mehul that he can stop paying further premiums considering the first premium loss, completely getting off from his responsibilities.

Rahul’s negligence and careless attitude in the field costed Mehul an insurance with Inadequate fulfillment’s for lifetime.

Moral of the story: Insurance and Investments are lifetime responsibility. The Insurance advisors might take advantage of your situations out of negligence or getting some extra commission.
You need to be aware of not getting ruined and carefully understanding the terms and conditions.

posted by Mandar in Insurance,My Town - Nagpur and have No Comments

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