I purchased a term insurance plan of 50 lakh from Max life in April 2016 but my LIC agent says that all private company will not give money to my family in case of my death as private companies only aim to earn money. So should I take term insurance from LIC only? Please suggest.
You shouldn't doubt your decision and fall prey to such sales tactics. Its obvious that the LIC agent has an interest in pushing LIC policies as his commission will depend on this. It is not true that private insurance companies will not pay your nominees at the time of a claim. In fact, many private insurers also have good claim settlement record , which they are required to disclose periodically.
There is IRDA, a regulatory body overseeing all insurance companies (private and public) in India. There are fairly stringent restrictions on who can set up an insurance company. In India, all insurers are required to maintain a solvency margin of 150 percent and insurance companies can't shut down because of the merger clause.
You have bought a good term plan. It is one of our recommended plans. LIC term plans are more expensive than the plans from private insurers. The premium for a term plan from Max Life will be cheaper as compared to LIC. Apart from that, the claim settlement ratio and grievance resolution ratios for Max Life were at a high 98.63 and 99.98 percent respectively.