All you should know about Term Insurance (Life Insurance) before buying

GoogleCA wrote:

No, i took HDFC Term Plan in March, Medicals were done in April end due to lockdown. Policy started in 1st week of May after i submitted Covid 19 Questionnaire. They clearly mentioned that if the policy is not issued then cost of Medicals will be deducted and only balance amount will be refunded.

Thanks for letting know. So Tata does refund money for test also while HDFC doesn’t.

iamshashikant wrote:

Where they mentioned that if policy not accepted then they will deduct and refund it

In the email sent for confirmation of appointment of medicals.

drjpatwa wrote:

Thanks for letting know. So Tata does refund money for test also while HDFC doesn’t.

In case of Critical Illness HDFC waives off all future premiums but pays only on death whereas ICICI pays on diagnosis of CI but charges 3X Premium. I guess HDFC is better in that aspect. Just discussing from the point of view of knowledge. I just took policy in march so was worried after reading your article but i guess i shouldn’t?

Manitian wrote:

Are all the insurers ask for medical test at start of term plan ? I have googled and found companies that provide without medical. @drjpatwa
Also I went ahead took Bajaj Allianz term life for my wife but I got a call from an their employee saying it not not be fulfilled as she is self employed and has below 5L income. Still have medical tests in couple of days .
If they reject, what private companies are providing term insurance without medical ? Please name a few.

Currently because of lockdown, if u go for offline purchase Bajaj Allianz is doing upto 50 lac SI & Tata is doing upto 1-1.5 cr. SI without medical.

But it might vary for online purchase. So do check that…

drjpatwa wrote:

Thanks for letting know. So Tata does refund money for test also while HDFC doesn’t.

This is the standard clause and practice too, how come tata doesnt have it?

drjpatwa wrote:

Currently because of lockdown, if u go for offline purchase Bajaj Allianz is doing upto 50 lac SI & Tata is doing upto 1-1.5 cr. SI without medical.

But it might vary for online purchase. So do check that…

Same with icici, agent said no more than 75L SI due to locd. He said even if u apply online with more SI it may be put on hold.

GoogleCA wrote:

In case of Critical Illness HDFC waives off all future premiums but pays only on death whereas ICICI pays on diagnosis of CI but charges 3X Premium. I guess HDFC is better in that aspect. Just discussing from the point of view of knowledge. I just took policy in march so was worried after reading your article but i guess i shouldn’t?

That’s why I prefer plain vanilla Term plan. Because in plain Term Plan T&C is almost same. All hidden or different T&C are there in Riders.

Once u have purchase it, don’t worry about it & cont.

I won’t recommend to pay 3X premium for critical illness rider. Because normal heart attack, cancer early stage (1 & 2) etc. Won’t get u SI back on diagnosis in majority company.

drjpatwa wrote:

That’s why I prefer plain vanilla Term plan. Because in plain Term Plan T&C is almost same. All hidden or different T&C are there in Riders.

Once u have purchase it, don’t worry about it & cont.

I won’t recommend to pay 3X premium for critical illness rider. Because normal heart attack, cancer early stage (1 & 2) etc. Won’t get u SI back on diagnosis in majority company.

I would prefer riders but with clear T&C. Like HDFC has 2 accidental riders. In one rider they pay a lump sum amount and in other they pay 1% monthly of the rider sum assured (separate from life sum assured cover) taken for a period of 10 years just for an annual premium of Rs.270 + Taxes. Also regarding PA Cover mentioned in your article, AFAIK if any one has taken any life insurance policy he need not take PA Cover and can opt out of it.

I am 25 years old an I am planning to buy term insurance of 1.5 cr to 2cr.

My preference based on my research are ICICI, MAX and TATA AIG or LIC.

I didn’t prefer LIC coz it is giving upto max 40 years term. Considering my age LIC term plan will cover till 65 years of age.
As per historic data average life of Indian male is 70 years to 75 years. And this very reason I don’t want to go for LIC.

So I am considering ICICI, MAX or TATA. If any expert then pls throw some light on which is better.

If you are a smoker and have quit some time back should you state that you are a smoker?

raavi73 wrote:

I am 25 years old an I am planning to buy term insurance of 1.5 cr to 2cr.

My preference based on my research are ICICI, MAX and TATA AIG or LIC.

I didn’t prefer LIC coz it is giving upto max 40 years term. Considering my age LIC term plan will cover till 65 years of age.
As per historic data average life of Indian male is 70 years to 75 years. And this very reason I don’t want to go for LIC.

So I am considering ICICI, MAX or TATA. If any expert then pls throw some light on which is better.

By the time we attain 65, none of our family members will be dependent on us

The.Slayer wrote:

If you are a smoker and have quit some time back should you state that you are a smoker?

thy clearly ask you if u have smoked in last 2 years??
but trchnically if u havent smoked since 3 months.. u r good as non smoker in lab results..

virus wrote:

By the time we attain 65, none of our family members will be dependent on us

That’s very optimistic!  

Welcome to life.. Good luck..

virus wrote:

By the time we attain 65, none of our family members will be dependent on us

You are right. But since I have invested in this insurance till 65 years of age then why not for 10 more years and make sure I get the sum assured benifit to my family (though mostly none will be dependent by then. I mean to say grandchildren will be benefitted and I will get a better return for my investment)

VU

GoogleCA wrote:

I would prefer riders but with clear T&C. Like HDFC has 2 accidental riders. In one rider they pay a lump sum amount and in other they pay 1% monthly of the rider sum assured (separate from life sum assured cover) taken for a period of 10 years just for an annual premium of Rs.270 + Taxes. Also regarding PA Cover mentioned in your article, AFAIK if any one has taken any life insurance policy he need not take PA Cover and can opt out of it.

What about PA talking about ?

iamshashikant wrote:

Covid-19 is reason for  postponing ?

Yes.. If you have a history of travel.. International..
Or interstate travel, quarantine etc in last 3 months..
They can postpone it

iamshashikant wrote:

Nothing mentioned different. Everything no no mentioned as I have not travelled anywhere.

Then u should find out the reason.. What is your agent saying about this?

Darknet_India wrote:

Yes.. If you have a history of travel.. International..
Or interstate travel, quarantine etc in last 3 months..
They can postpone it

Nothing history. Not moved anywhere

Darknet_India wrote:

Then u should find out the reason.. What is your agent saying about this?

No agent direct policy bought . Only online available

iamshashikant wrote:

No agent direct policy bought . Only online available

You should opt for Agents. As they would help you in all manners.

LIC is a govt company and no one listens there.. They only listen to reputed agents and officers.

Warna Govt offices to pata hai na kaise kaam karte hai….

Darknet_India wrote:

You should opt for Agents. As they would help you in all manners.

LIC is a govt company and no one listens there.. They only listen to reputed agents and officers.

Warna Govt offices to pata hai na kaise kaam karte hai….

This policy available without intermediatery (agent) only online and online

is there any plan available which gives money back if you survive till the maturity of term plan ??

Darknet_India wrote:

Based on the input from the Dimer who made this post, which says :
My preference companies: Hdfc, Tata, Icici, Max, Bajaj (currently cheapest among well-known brand), LIC (best but higher premium)

When we don’t compromise on our Health and standard of living, why should we compromise on Quality when it comes to Life Insurance?
No doubt one should prefer LIC of India as they are best in the field for claim settlements. Atleast one has the best assurance of getting claim settled for his family.

PS: Not saying because I am an LIC agent, I am saying based on the market outside and how private players are fooling around. I have multiple examples where many are duped and now their family and relatives come to me for converting there policy from Private to LIC of India.

Please provide some examples how private company are duping people so that everyone should know what you want to say
And i personally Have taken Tata aia policy in 20 March policy issued on 15 april without medicals so that i and all can know the difference by the way  
i am working  in general insurance company  since 13 years.

Tera_Jija wrote:

I have ‘Max Life Online Term Plan Plus’ since last 4 years. I am paying almost 13k premium per year for 1.5 cr cover.

I have maxlife’s 1 cr plan… Paying yearly premium of 6800…

Dear Dimers take term plan of any company Lic,tata,hdfc,sbi etc But dont take riders(for example critical illness and accidental death and accidental disablity rider Etc) from life insurance company as Mostly they charge you very high premium,less coverage ,and no, Cumulative bonus and no life long renewal option for example if you opt term plan for 70 to 80 years riders will be covered only till 65 in most company SBI general insurance is offering lowest premium of 1200 to 1500 for 50 lakhs cover(Option choosen rest of india)
Table A Normal premium of other company is around 2500 to 3000 rs.

Table A – Accidental death TableB – Accidental death + Permanent Total Disability (PTD)
Table C – Accidental death + Permanent Total Disability (PTD) + Permanent Partial Disability (PPD)
Table D – Accidental death + Permanent Total Disability (PTD)+ Permanent Partial Disability (PPD) + Temporary Total Disability (TTD)

Tera_Jija wrote:

Tumhari bahen ko.

phr to policy jaldi hi cash hone waali hai

all policy rate will increase from June 1st ??

Papi-Manushya wrote:

is there any plan available which gives money back if you survive till the maturity of term plan ??

I think all gives, right ??
@Darknet_India

AyushiiiVijay wrote:

I think all gives, right ??
@Darknet_India

plz recommend the one which is having low charge and high-grade reimbursement rate