This topic is strictly related to LIFE INSURANCE in Pakistan!
Whether or not, Life Insurance companies (naming State life, Jubilee, EFU Life Etc.) in Pakistan have been genuinely paying what they claim to pay at the time of booking of policy– is a matter which demands general public discussion.
Therefore, I am posting a question on general public forum regarding Life Insurance policies which are being sold in Pakistan (am quite sure that MANY of us have been approached by an Insurance sales agent at some point); kindly share if you have the asked information for the benefit & understanding of the rest of us.
Those of us, who have purchased a life insurance policy, have surely been told (verbally as well as on the writtten insurance policy form) that that the insurance company makes repayment to the policy holder under two circumstances.
ONE – policy holder dies (and hopefully, the cause of death is covered in the policy) and a handsome amount is paid in lumpsum to his/her sponsored/covered family members (considering that the last pending premium was paid and the Life Insurance policy was INTACT!)
TWO (THIS is what my question pertains to) – you survive after completing FIFTEEN or TWENTY years of insurance policy (and have been paying annual premiums THROUGHOUT) and then the insurance company, upon your request, gives you a cheque of total amount of premiums which have been paid+ a handsome amount of profit.
Now lets take a stop here & discuss something. Here is how life insurance companies & their agents take up their products (life insurance related) with prospective clients :- They will approach (physically, social media, media etc.) you and offer you to purchase a particular policy which shall have monthly, quarterly or annual payment of premium. This premium payment would secure you in two manners.
First, as i said earlier in case of your demise while the policy is continued, your loved ones will get a pre-decided amount minimum.
Second - these premiums would keep on adding up & you could have them withdrawn after a set number of years along with an exorbitant amount of profit (set number of years mostly is after 15 to 20). THIS is the part which ATTRACTS their customers.
This amount, at times, is in multiple of TWO or THREE of your aggregate saving. I will quote an example. Suppose Mr. X has been paying annual premium for PKR 01 lac for 20 years straight! How much has he saved after 20 years, TWENTY LACS, right? Well, the insurance company would instead insist that after lapse of 20 years, Mr. X would be repaid by the insurance company for UP TO FOUR TO SIX Millions.
This saving factor is 90% of the reason people buy life insurance policies.
Getting back to MY QUESTION–Do you folks know ANYONE in family, relatives, friends who survived the entire tenure of his/her Life Insurance policy & was actually PAID original amount + profit by his/her insurance company (State Life, Jubilee etc.) upon COMPLETION of insurance tenure? AS PER INITIAL COMMITMENT by the life insurance company?!?!
Kindly share your response here.