Is LIC better than private insurance companies?

ByAshwini Budhey

Being the oldest insurance company, LIC has acquired its firm roots in the insurance marketplace. It has a huge customer base of 250 million customers. Private insurance LIC companies are the latecomers in the market because of the restrictions held by the government till 2000-2001. While buying an insurance policy, we as the general population are always confused to select between LIC or private insurance companies.

Insurance Regulatory and Development Authority of India (IRDAI) fully regulate the life insurance industry, under the 1938 insurance act. Therefore IRDAI monitors the financial health of every insurance company before introducing it into the market. IRDAI binds them by legal contract. As a result, there is no risk in investing in private insurance companies.

But before buying any policy whether from LIC or any other private insurance company you should go through the following steps:

  • Gain sufficient knowledge about life insurance – You should gain thorough knowledge regarding life insurance before investing in any life insurance policy. Specifically, consult a financial adviser for the proper knowledge or take the help of the internet regarding the same.
  • Estimate your financial needs -Every individual has his or her own financial needs and responsibilities.

To read more click here  knowledge about life insurance