Do you know that one life insurance policy can be split into many pieces, i.e. smaller policies? Insurers like LIC allow this. This is truly a step in the direction of customer orientation. To take an example one policy of Rs 10 lacs (sum assured) may be split into ten policies of Rs 1 lac each or five policies of Rs.2 lacs each or one policy of Rs.5 lacs + five policies of Rs 1 lac each etc. Such a step will be a help to those customers who find it difficult to pay high premium at a time. The mode of payment of premium of each new policy (one may be yearly, another half-yearly, another quarterly and yet another monthly) can be kept different so that premium will fall due on different dates. Moreover if the customer wants to assign the policy to each of his children that too can be easily done. For more details please read my article on the subject published in The Hindu Business Line, a link is available on the page 'other publications'.
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