All you should know about Term Insurance (Life Insurance) before buying
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Kudos for effort.
Can we opt bajaj Allianz as term plan because premium is so cheap and not increase till now and now most of companies increased premium upto 20_30%. Please suggest.
Bajaj is well known brand but in pure Term business they have entered just in December 2019 (as per bajaj life employee) & IRDA has rule that for initial some months, company can’t hike price.
That’s why they have not increased prices. As per company employee they are soon going to increase prices once they get IRDA approval.
So you can go with it but as company is new in this business, minor administrative or service issue you might face to get policy issue.
One thing needs to understand that LIC is not the highest claim amount paying company, though LIC settled the highest number of claims, the majority of such claims are less than Rs.2,00,000 Sum Assured. Hence, it is indicating indirectly that LIC’s claim settlement is mainly in the category of Endowment Plans but not Term Insurance. Pls check below article to understand it better : www.basunivesh.com/2020/04/17/top-5-best-term-i...
Unfortunately people don’t consider time value of money when taking these decisions.
What about sbi life sampoorn suraksha term plan which is available on sbi yono app? Thinking to join it from next week. @ 20,00,000 cover for rs 2400/year
Thanks a lot bro. Although I am prof at medical college & not finance prof 
, whatever I have written is as per my financial knowledge.
About LIC:
Since decades LIC is selling it’s traditional plans like Endowment plans, ULIP etc. but never focused on Pure term plan. Today also their main focus is on traditional plan & not term plan. Unfortunately by selling those traditional plans, only LIC & ur agent earns higher & not the customer. Customer neither gets inflation beatable return nor good insurance coverage. Majority of times, mis-selling happens in such products (customer is not aware about actual IRR, not agent !!!)
Lately LIC started (may be 1 yr. ago – I may be wrong here) pure term plan but with high premium rates. There are giving excuses that we are most trusted brand & have highest claim settlement ratio, so we charge higher.
(Read it here https://www.moneycontrol.com/news/business/pers...)
Now claim settlement ratio is inclusive of endowment plan, ULIP, term plan where actual data of Term plan is very less (because of late entry). Usual ticket size in endowment plan is way less than pure term plan. So amount they settle per claim is way less (I Didn’t remember exact figure) compare to Term plan (where usually coverage is 50 lacs – 1 cr.). So yes LIC is generous in giving claim but they have less ticket size. Other Private players are getting claim amount of 50 lacs- 1 cr., so they should & must be strigent for looking at any fraud.
Also 1 important factor people missing is – Claim settled in how much days. Check IRDA report & check how many claims are pending in LIC for more than 1 month, more than 6 months & 6-12 months (There might be various reason for it which we don’t know, I am not blaming LIC here). But look at those figures. If they were blindly giving away money for any claim then why so much settlements are pending ? fact is if claim arises in 1st year of policy taking than any company will have suspicion & try to find fraud. After 3 years of policy taking, no need to worry whether it is Lic or hdfc or Tata – all are going to pay money.
Also about Trust & brand – LIC & its money (Public money) is highestly mis-used by government.
Also I have doubt (My own perception, may be wrong also) that how good u will get service when u buy term plan online (without agent). Because traditionally LIC & their govt. type of employees use to do interact with agents. They have typical habit of branch culture like of SBI. Go to so & so branch as ur policy has been issued by them & all.
So, I have my own perception regarding LIC. People might agree or disagree to it.
& if its matter about generous in paying claim then u should also read tata has given 5 lac more than SI for all deaths due to Covid.
You’re right in all aspects. It’s been a golden goose for Indian Governments for decades now and will remain so in future.
My uncle has taken oriental health insurance floater plan SI insured 3 lac having piles problem. Now he wants to cure it but no network hospital in Orissa. What are the manual processes of claim settlement or eligibility. My perception he had taken wrong insurance. Please look into it. @drjpatwa; 
You will need to get thr process done, and then get all the documents to be submitted at their office or couriered. You should call up helpline and ask what all doc’s are must and discuss with your hospital. Its very unlikely that no network hospital is there in full Orissa. Better check with them, having said this, if hospital can be avoided in next few months then do so.
Its very very risky due to covid 19. There are many cases where other patients have got infected.
Thank you OP, After going this thread Bought Term Plan from HDFC last week.
Welcome bro.
Hello Everyone,
anybody having experience with Health Insurance portability for senior citizens from Govt. undertaking to private service provider and can help in the same
Any one in need of any type of insurance with best premium inbox me
Vu + kg I was looking for these insurance information for last 3 or 4 months, hope you provide more about other insurance too. Kudos to your work
Thanks. I already posted 1 separate thread for health insurance too. U can check that.
nice post..also adding to this you have cetain other things as well to consider.
1. Do you need ROI or no return or return after specific duration.
2. Certain companies dont give the insurance amount if you had taken a loan from some third party. The third party files a case stating that he had loan which has to be paid and in that case they take the insurance amount from your life insurance company to pay the loan amount. But now there is a clause which you can check while taking the policy..which states that no matter what the insurance amount will go to the nominee in any case.
Someone here asked me to add ROP (Return of Premium) Plan also. I told that they are not worthy. But 1 incident proved my that sentence wrong.
Recently I saw 1 quotation for 47 years male for 1 cr. SI upto age 85 years in Tata Aia.
They have Maha Raksha Supreme plan name for normal term plan without return of premium & Sampoorna Raksha Plus name for return of premium plan.
To my surprise for limited pay plans of 5, 10 pay return of premium plan had lower premium than regular plan without return of premium !!! 
I was shocked after seeing it & try to find out reason for it. 1 reason is in ROP plan GST amount is some 4.5% vs. 18% in regular plan & 2nd reason was Tata had made Sampoorna Raksha plan cost effective by giving lower comission to agent compare to other plans.
So yes this is rare case but better to check such things before buying.
I am fine with everything you have written but just one point… sum insured should be at least 15 to 20 times your annual income and this is as 8% which is nearly poat tax about 7% at 15 times gives you nearly same income. Also, inflation has to be build in. Insurance companies provide up to 20 times due to same reason. In case u have house loan it makes more sense to have 20 times cover. And do keep on taking more insuance as and when your income increases….
Just wanted to leave a few words here about @drjpatwa here as he was kind enough to help me pick insurance policies for my parents. Not only was he readily available but also discussed each and every point patiently with me over call. With his suggestion I was able to narrow down to the correct policy and got saved from buying a policy which wouldn’t have suited me in the long run. Would definitely recommend anyone buying health insurance to get in touch with him. He’s really a nice and genuine person.
VU + KG
Thanks for details. Got HDF Term Plan!
I applied for max term. Last time had a bad experience with hdfc as they increased the premium after medicals were completed. Failed in medicals for icici last yeardue to high cholesterol
How high was your cholesterol?
Is lic jeevan umang 945 plan good, 20 year term?
@drjpatwa I had epilepsy 13 years back… Treatment took 5 years. I applied for 3-4 years back with some company(forgot the name). I mentioned that epilepsy case while medical checkup, they denied to issue the policy. Shall I go for term insurance? If yes, any chance of getting claim rejected if I don’t mention currently
It’s tricky. Problem might arise at the time of claim, if u don’t know proper way…
Can anyone share feedback for India First Insurance as it is BOB and Union Bank lead promoter
Good information
i tried applying term insurance thrice now , and see the premium double after i mention about my job- Merchant navy considered high risk even though i do consider it is very much less riskier than mechanics working in our country. is it wise to buy these policies, considering i end up paying more than double the premium for the same age group.
That’s ridiculous policy of company & somehow IRDA allows to do so. They are not willing to issue policy to Those who need it most bcoz of higher Occupational risk.
@drjpatwa please advise .
Buying at double premium – it depends on ur need.
1) Ur financial condition – ur assets & liability
2) Any other family members are earning in the family or u r sole earning person. How many people are dependant on u.
3) Do you have any other policy like LIC or any ULIP product.
I want to take term insurance from LIC. Which policy is suitable for me my age is 35 annual income 5 lakhs + want 1 cr SI. Please help whether to buy online or offline. I am a service personnel by profession.
LIC’s offline plans are quite costly. If u r Okay with online purchase & service without agent then u can think about purchasing online.
@drjpatwa thanks a lot for advice
Good info
If u find policy papers after many years of death, can u still claim it?
What about this company plan ABSLI Life Shield 2017 ROP T51 P10
i am 35 with already a old 1 cr term insurance with max life at 9300 rs p.a. I wanted to increase cover and applied for 1 cr cover eith aegon life who qouted 12k per annum. But they did medical test and said you have Elevated HbA1C and Elevated blood pressure levels and gave increased counter offer of 18,000 per annum which i rejected
I am doing personal test with lal path labs to verify the claims of elevated readings and will understand if the company was trying to fool me for an 50% high premium.
One thing always take a long policy till 75 years so that the probability of a payout increased. Companies will always push till 60 only as they know chances of death are lower
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Excellent post, thanks for taking out time and posting in detail.