Tweets on 2010-10-27 — Absurd Premiums!

by Vinaya HS on October 27, 2010

in Finance

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Read this article recently published in the Bangalore Mirror.

Highlights.

After recession, an insurance cover ranging from Rs 1 crore to Rs 3 crore is the most sought after by IT honchos and senior-level management people. With job losses and salary cuts, the industry has realized that conventional saving tools, which are stable and give guaranteed money-back, are important.

The annual premium for a Rs 1 crore life insurance cover for 20 years, for people aged between 30 and 40 years, ranges between Rs 5.25 lac and Rs 6 lac. Upon maturity, the sum assured, along with bonus and interest, would be around Rs 1.8 crore.

Now, why would someone who’s worried about a job loss and a salary cut opt for a life insurance policy whose premium is 5.25 lac to 6 lac a year?

I’d like to meet this person.




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