THE FINAL PLUNGE
It’s not easy to entrust your savings to someone else. Narrow down on a few names through references from people you trust. “It has become easy to find about the skills of a planner through some research online, but some good planners take clients only through references,” Mudholkar said.
It is also important to understand the planner’s way of functioning. Sadagopan said sometimes there is a complete disconnect between what a planner does and what a client wants. “A lot of people come to us directly to only get advice on i nvestments. But we have to turn them down as we reach the investment advice level only after completely understanding the position of the individual and making a financial plan. We want to engage only after fully understanding their position,” he said.
Just like investments, there is no one-size-fits-all solution when it comes to planners. Choose the one who suits your needs.
ife insurance is not about investing your money to earn a return on it, it’s about financial protection for your loved ones. The most efficient way to do that is through a term insurance policy. You pay only for insurance and after the policy term ends, you don’t get any money back. But on death during the policy term, it pays a huge corpus to the nominees. Look at the premium (cost of the term plan) and the claims settlement record of the insurer. We list premium rates for some policies of a sum assured of ₹1 crore across three age categories for policy terms are 30, 25 and 20 years. The list of 15 policies has been sorted on the basis of claims settlement rate. The claims settlement rate is measured by benefit amount or the sum assured, as a lower settlement rate is indicative of high ticket-size policies being rejected.