Page 39 - IC23 life insurance application

insurer, the agent should not hesitate to say so clearly and suggest to him some

other instruments available outside his own company. Building a long term clientale

is based upon mutual faith and confidence and this can be built only upon the strong

foundation of sincere and helpful advice.

Section F

COMPARISON BETWEEN DIFFERENT PRODUCTS OFFERED VIS-A-VIS

PREMIUM CHARGEABLE, COVERAGE ETC.

In the aforesaid paragraphs, we explained the benefits available under different

plans and their suitability to satisfy the different needs of the prospect. Unless one is

a Bill Gate, no body has resources enough to satisfy all his needs. Every body has to

priortise his needs and try to satisfy them optimally at the minimum cost. Cost

therefore becomes an important aspect while advising the prospect of the relative

benefits of the different plans.

As we have said earlier the cost or the premium of an insurance plan has four

components-mortality, expenses, considered with inflationary pressure, savings,

bonus loading considered with expected yield or investment.

We have considered these factors in detail elsewhere. What we need to consider

here is the general outline of the reasons which are responsible to make one plan

costlier than another. And cost is important consideration for the plan or the

combination of the plans suggested by us. They must be affordable by the prospect.

Then alone a sale shall become possible.

Mortality as a factor is present in all the plans offered by any life insurer. Unlike a

bank, an insurer has to provide for the contingency of life in all the plans offered.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010