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Looks like I need to start a “CryBabies” category for CEOs of Financial Services Companies. Sample 1
Now with IRDA asking Insurance Companies to add “Insurance” to their Pension Plans, here are some stories in the media:
Hindu Business Line: People with pre-existing ailments will now find it difficult to buy a pension plan as insurance companies will have to compulsorily sell pension plans with a life cover starting July 1.
With this, some people with existing ailments may not be able to buy a pension plan at all, while others would end up paying higher premiums.
“So people suffering from cancer or kidney failure and those who have undergone coronary bypass surgery will not be able to buy pension plans now, while those suffering from ailments such as diabetes, blood pressure may have to pay higher premiums,” said Mr Kamalji Sahay, CEO, Star Union Dai-ichi Life Insurance.
“Currently, there is no life cover for pension plans. So even if the health of the policy buyer is not up to the mark, he is issued a pension policy. But this will change from July 1 with inclusion of the life cover becoming mandatory,” said Mr K.S. Gopalakrishnan, CFO, Aegon Religare Life Insurance.
Now no where in the story NPS is mentioned. Or other options like PPF. So the lay reader will feel that he’ll no longer be able to plan for his retirement, if he has a pre-existing disease! (All of us have some ailments or the other)
Isn’t this a misinformation campaign? Giving out select information with a motive to spread fear and falsehood?
Beware of the CryBabies! And read this blog post where PV Subramanyam clears a few “retirement planning myths“
About Ranjan
He edits Personal Finance Online Resources, delivers Financial Awareness Workshops and has built a desktop RupeeManager.
Email: ranjan@ranjanvarma.com or Call on +919867755615
Nice article, thanks for sharing such a good knowledge about Pension Plan.
Thanks Khalid. It’s what you know already. I am just refreshing your memory!