Catch a personal finance expert any time of the year and ask him which is the best time to purchase term life insurance policy and pat comes the reply – NOW. The idea is to buy the adequate amount of life insurance as early as possible. However, not many get the time to buy life insurance policy that serves their needs. In some cases, they find it difficult to understand the terms and conditions. Some get into the lanes and by-lanes of investment products offered by life insurers. But, April could make the life easier for most.
“While every month is a good month, beginning of the financial year is a good time to reassess your financial plans. April is also the month when most salaried employees receive their annual bonus. If they already have term insurance then they should reassess the adequacy of the sum assured,” says Sandeep Batra, Executive Director, ICICI Prudential Life Insurance.
Why April?
Traditionally, Indians buy life insurance towards the end of the financial year. More than half of the business of life insurers comes in the last three months of the financial year — especially in March. It is the tax benefit attached to the life insurance products, which makes most of these purchases go through — sometimes even at the cost of overlooking the protection needs of the buyer.
However, April is a different time. The peak work load is behind for most life insurance agents and the sales staff of insurers. This is the lean period. There is a high chance that they will spend more time answering your queries at length, as the business is low in this month. “At the beginning of the year you, too, have the time and liquidity on your hand which will allow you to compare and buy the best available option,” says Deepak Yohannan, founder and CEO of myinsuranceclub.in.
Saroj Satpathy, executive director, Salasar Insurance Broking Services says, “Some employees do get bonus at this time of the year. This leaves some extra money in hand which can be used to make an informed insurance buying decision.”
However, April is a different time. The peak work load is behind for most life insurance agents and the sales staff of insurers. This is the lean period. There is a high chance that they will spend more time answering your queries at length, as the business is low in this month. “At the beginning of the year you, too, have the time and liquidity on your hand which will allow you to compare and buy the best available option,” says Deepak Yohannan, founder and CEO of myinsuranceclub.in.
Saroj Satpathy, executive director, Salasar Insurance Broking Services says, “Some employees do get bonus at this time of the year. This leaves some extra money in hand which can be used to make an informed insurance buying decision.”
