All you should know about Term Insurance (Life Insurance) before buying
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It depends on financial Literacy of ur Nominee.
If in the absence of us, there will be someone who can guide Nominee & manage those amount in better way then lump sum at once is good.
If Nominee is not having good at financial Literacy or they caught with bad agent (high chance of that) then that would be disastrous if u take lump sum at 1 go.
Just one example – My Friend’s father got retired. He asked me where to park retirement money with 100% safety with good interest rate. I advised him to open SCSS account in bank. He went to SBI for opening of that FD but bank officer diverted him saying I will offer u better scheme & put his 10lac rs. In Balance Advantage Fund with SWP option & told him u will get 8k/month !!! Height of fraud to earn few % of comission, that officer ruined someone’s whole retirement plan…
Basic question — for life or health insurance, let’s say we buy it at age 35, as our age increases, will the Premium increase even if we stick to the same insurance provider? I think it does, but I also think it’s completely unfair to those who maintain a single provider and keep paying their premiums from a young age ?
For Term Plan, premium remain same through out tenure (except change in Tax structure by govt.). So early u enter, less premium u pay throughout ur tenure.
For health insurance, premium keep increasing according to age slab (like 31-35 same then increase in premium. Then again 36-40 remain same). Also apart from that, inbetween also company can hike premium with permission of IRDA. The benefit which we get by taking policy early age is, later on No company will charge u extra premium (loading) or deny policy once u get certain diseases. Also it is about uncertainity, we never know who will get disease & when…
Like Arogya Sanjeevani in health Insurance, now common policy wording for Life insurance across company in New Saral Jeevan Bima plan
Good article to read About Term plan. Almost all points mentioned in this article are already mentioned by me in this thread like How much sum insured, why not to take term plan of above 75 age, payout option, plain vanilla term plan without riders
6 factors to help you choose the right term insurance cover
https://www.moneycontrol.com/news/business/pers...
Is Aviva term insurance good, have opted it for like 7 years now.
No idea about it…
Hello @drjpatwa , Its really kind of you to address all dimers queries.
I also have some questions:-
My father is 60 years old & self employed. He is diabetic from last 4 years (medicine) which I will disclose to ins. Co. Which company is offering insurance without medical and till what amount?
2. My uncle is having small shop and doesn’t fill itr then can he go for term plan and for how much and which company?
Thanks a lot.
1) Max bupa is still issuing policy without medical due to Covid. But if possible it’s always better to go for medical at this age so that later on company can’t reject claim based on pre-existing disease.
2) For self-employed, last 3 year’s ITR is needed to get term plan. If any agent is offering it without that documents (Or by providing fake documents) then also be careful. At the time of claim, just because of this reason, claim can get rejected.
Which companies didn’t increase premium rate till now after covid ?
@Vijay33
Are u asking for Health insurance or Term plan?
For term plan – Tata, Bajaj has increased prices. May be Aegon, Max life has still not increased.
Not sure about HDFC & ICICI but their rates are still high compare to all other (even after premium hike). Infact recently ICICI have reduced premium for some of its plan (Due to obvious reason that their rate was way too high & they might be getting less business due to this)
A friend of mine took Aegon iTerm through policy bazaar. Applied on Friday, Medicals Completed on Monday (Home Visit) & Received Policy today – Total 1 week duration. Smooth process. Non-Smoker and no health issues – So no further discussions on any revision of Premium based on medicals.
Saw this link as well before deciding:
https://www.basunivesh.com/2020/04/17/top-5-bes...
I am usually against limited pay premium method in Term Plan & prefer to pay it regularly.
Recently come with very good deal. I Was giving a quotation to my friend (Age 32), 1 cr. SI for life coverage till 70 years.
In Max life insurance Regular pay premium was coming 13334rs. (So he pays this amount for next 38 years)
While In Max life insurance for Pay till 60 years premium was coming at just 12508rs. (So despite choosing limited pay, he has to pay less than regular pay)
Such rare opportunity should not be missed & one should grab it…
@MrKool_JJ This might help u bro.
So his net saving will be 826rs. Less per year for 28 years = 23128 rs.
& 13334rs. Not paid for last 10 years( from 60-70 age.) = 133340 rs.
Net gain of whooping 156468 rs. With same coverage.
I have not calculated interest to make it simple else difference will be even more.
& This is real gain unlike other limites pay plan discount where they give discount from ur interest amount only !!!
Policy Bazaar vs direct on insurance website? Which would be better?
@rohan8397
For comparison policybazaar/ coverfox then buy through local agent if price of online & offline is same or through direct website if online price is cheaper than offline price.
Reason – 1) You never know, what Policybazaar sales guys are selling u (Check my health insurance thread’s post that how cheap tactics they are using to attract customer & then doing advertisment with Akshay Kumar – Policybazaar aapki side hai, lol !!!).
2) & most important – At the time of claim, u will not get any good support from local Insurance company office (Although policybazaar claim department will assist u centrally). They will simply say that if u have purchase through policybazaar, better ask them for support.
This is happening not only for Term insurance but for health insurance as well as vehicle insurance purchase through policybazaar. U won’t get good Local support.
I also posted it here when they announced it.
Unfortunately maximum 25 Lac Coverage is big big dampner in this plan. Why IRDA is killing good simple plans with such restriction
Thnks Dr
vu+kg
any of the dimers here has any experiences of claiming the term insurance after his/her relative or friend passed away? is the process smooth and did the company settle full amount? pls share your experiences
PS: not LIC
Again Eye opener data, those who r worried most about claim settlement & skeptical whether company will give claim amount or not. Also shocking data for LIC lovers !!!
Confused between Aegon and Max on which one to choose. With the IRDA act no claim should be rejected after 3 years. None of the insurance companies can go bankrupt. Then why not go for a lower premium.
Alert: Max Life Insurance is going to increase the premium by upto 12% for it’s Term plan after 3 days.
This is based on the news I got from Max Life Insurance. Anyone planning to take it can decide accordingly.
Alert: Currently February month is going on & January to March is considered as bread & butter for life insurance business to find “Bakra” for so-called Tax saving purpose. Actually insurance company run JFM contest (January, Feb, March) for agents to get higher ticket size premium & give foreign, domestic trips etc.
So beware guys inforcement to take policy from agent, company will drastically incresae during this time.
Actually Insurance is neither for investment nor tax saving purpose nor to achieve someone’s sales target. Buy It is for necessity. Pure vanilla term plan should be the choice & not the ULIP, Endowment plan blah blah.
Looks like I have fell in the same bakra trap
Agent has convinced me of an term insurance with around 36000 premium anyone who can provide immediate help to whether take it or not now
Dot
I have taken Max term plan 2 years ago for 1cr+1cr accidental rider, limited pay 24k+6krider total ~30k yearly premium till age 60, cover till 75age . I also have 2 LIC plans (~25lakh each) and home loan insurance too I have. I have my company 50lakh cover too (but this is till I am working there)..
Now I want to increase my sum insured to 2cr (from 1cr). I have contacted to Maxlife but they denied to change SI now after 2 years and also told that I have NOT selected life stage benefits, so that also not possible. I tried to google also any “TOP UP” option on existing Maxlife policy, but none is available.
So please suggest what is the best possible CHEAP option to increase SI further (addition of 1cr, my current age is 41) by topup etc costing around 10k, because buying new separate policy costing ~23k yearly.
Or should I invest this ~23k in SIP, considering I already have another insurance (LIC, home loan, company)? But again if any top-up option available in less than 10k, I would opt it.
Please suggest. Thanks in advance.
Before any recommendations always ensure you have the capabiliity of paying the premium nearing your retirement age… Don’t assume anything, read through the fine print of all the Riders..
Term policy once issued, cannot be changed it’s a contract in binding, if you want to increase your cover, you need to take another term policy against your name…
Too many life covers are not required, the reason for a Term plan is if you’re the sole breadwinner of the family and in any unfortunate event, the family continues to have some money to carry on..
If you cross the age to which the policy is in force, you get nothing… I’d rather recommend you go with a SIP or MFs to ensure there is some liquid funds accessible to you when you need them. You seem to already have some basic coverage..
If you have kids and they’re like 10-11 then go with the MF/SIP option, but if they’re very young, then a second term cover might not be a bad idea..
Thinking the same thing but confused!!!
waiting for any educated one to give his/his suggestions.
Alert: Much awaited, IRDA annual report of FY 19-20 is out. One can read it here https://www.irdai.gov.in/ADMINCMS/cms/frmGenera...
Don’t know why IRDA takes to much time to release this data, we are going to end FY20-21 soon & now they are releasing this data of last FY !!! But it’s worth reading to understand facts & myths regarding insurance.
1 can read summary here https://www.basunivesh.com/irda-life-insurance-...
Few takeaways:
- LIC is continuously having poor claim settlement ratio this year also (RIP Blind LIC lovers who says, LIC means 100% guarantee that u will get money !!!)
- Well-known private insurance company like HDFC, TATA, MAX, ICICI consistently performing well in terms of claim settlement ratio.
- 1st Time brokers have surpassed banks to lead in mis-selling product !! So beware of brokers like policybazar etc. Or check the facts before blindly trusting them.
Price Hike Alert: Tata, Max Life, Aegon going to increase premium. Others may follow too.
Term cover costs set to go up as reinsurers hike life rates – Times of India https://timesofindia.indiatimes.com/business/in...
Max vs Bajaj Allianz vs Aegon
Which one is good?
I am thinking to take for 60 lac for 65 years.
suggestions?
Max and Bajaj both are same.
I think Max increased the premiums in Jan and they are due to increase again
Aegon is good in terms of premium cost.
Either way we wont get any first hand information about the reviews of the problems as the nominees who generally go for payment when the insured person leaves them. Nominees should give the reviews
I am in the same enquiry and this is what I gathered when I check for reviews.
But Financial advisor says
1. Go for cheapest premium or
2. Go with the company that you are comfortable with
After all it is just a backup for life
I saw somewhere on the Internet that term insurance prices will be increased by 20% from 1 april 2021 because of extra claims due to covid.
@drjpatwa can you comment about this?
Also, pm needs to talk about some policy details.
Yes Max, Tata, Aegon, Pnb, indiafirst are going to increase prices as per news. It’s basically reinsurance companies are hiking premium due to covid scenario, that’s why these companies are hiking premium…
@Apun
Thanks for your input
Is it confirmed news about the Aegon?
I am leaning towards Max.
Also, i heard that from 1st april premium is about to increase. So, may be its time to decide now.
Another question:
Is it advised to purchase directly from their official website Or we can choose 3rd party like policybazaar etc as well.
As they say that they help in getting claim as well. Don’t know if its true.
well, I am all set to buy a Term Insurance plan. till 65 years for 70lacs based on my profile. I believe its good.
Second Question: Max or Bajaj Allianze ?
Any suggestions?
@drjpatwa Can you also elaborate a bit on the type of the settlement for Sum Insured to be taken. Which one suites better; monthly payments, one shot payment, or half one shot and rest monthly ?
Feel free to tag some financial advisor dimers.