This might have been asked several times but I just want to highlight that when we buy a term insurance for 35 years or maybe even more than that, we’re assuming that the insurance company will not pack bags and leave India. How safe is that assumption?
I was reading in Outlook Money’s recent issue that private insurance players are “fully safe” and that they won’t just leave. What gives them that assurance?
I mean, can a company not go bankrupt? What happens to an insured person if that happens? One might argue that the likes of HDFC or ICICI are safer in that respect, but we all know that the best deals are from Aegon Religare and Aviva.
Thanks,
Ram.