| THE “GREAT RIDER (MISLEADING)
MYTH”
Previously we have analysed how private insurers mislead the
prospects on rider benefits charging enormous extra premium
for benefits like (1) Double accident benefits. (2) Disability
benefits and (3) Premium waiver benefits and how LIC offers
these “THREE-IN-ONE BENEFITS” by charging just Rs.1/- for 1000
SA. Now we will look at the other riders benefits offered by
privaters and what additional benefits are offered by LIC for
similar products.
The private insurers copied many of our plans and riders, but
they do not offer the benefits extended by LIC.
Here is an example
HDFC Standard Life has a “Joint Life Endowment Assurance Plan”
in their basket which covers lives of husband and wife. At a
glance it looks like LIC’s “Jeevan Saathi” plan. But in reality
it is not. If any one of the partners dies any time during the
policy term when the policy is in full force for the full Sum
Assured HDFC Standard Life will pay the basic Sum Assured along
with vested bonus if any, to the second life and the policy
contract will come to an end. That means the second life will
no more be covered by the company
Max New York Life another private insurer also offers a “Spouse
rider” at a cost of Rs. 383/- extra premium (term 20 years,
age of the proposed 30 years) which is nothing but a term assurance
cover the life proposed. If the basic life assured (First life)
dies prematurely the provision for spouse’s insurance come to
an end.
Compare these with LIC’s Jeevan Saathi Plan. The policy offers
life cover for both husband and wife and on death of one of
the partners the benefit offered are
1. Immediate payment of Sum Assured to the Second Life
2. All the future premiums will be waived
3. Life cover for the second life will continue
4. Full maturity value (with bonus) will be paid to the second
life
5. If the second life prematurely dies after the death of frst
life, the legal heir will get a sum assured equivalent to basic
sum assured again along with bonus.
6. If both lives die prematurely double the basic sum assured
with vested Bonus is payable
7. If both lives die due to accident, four times the basic
sum assured with vested Bonus is payable
Thus “Jeevan Saathi” from LIC gives total and complete Insurance
protection to the whole family
Friends, let us take these “Rider Myth” of privaters to the
prospects, explain to them how much they stand to loose by way
of payment of higher premium for lesser benefits whereas LIC’s
riders offers more flexibility. merits and value for their money
Manager (PLNG & MR) .
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