All you should know about Term Insurance (Life Insurance) before buying
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1. Sum insured should be max 20 times your annual income
2. Any company is good till u declare everything
3. 65 is fine age as till then hopefully your kids will be in job/business
Most claims get cancelled for critical illness, disabilities Insurance and waver of premium features.
In case of terrorist attack , no claims will be paid
For plain vanilla term insurance expect for suicide in year 1, medical death due to any reason is covered including terrorist attacks… also, best is to go for medical based insurance and then nobody can deny claim due to any pre-illness.
do mediclaim policies have any payout in case of death due to accident or illness?
Usually no… not aware of any such riders as well…
I am having hdfc term life plan click 2 protect 50L for 40 years…taken around in 2017(was unmarried then)
Now married and a child too. Want to increase the cover atleast to 1 cr..what are the feasible options..
1. Should I surrender current one and take a fresh policy.
2. Take a parallel new policy. ..also confused whether it is allowed and whether in case of mishap both the insurers will honor claim.
3. Any option available to top up or increase with existing policy.
1. Option 2 is best
2. While taking new policy declare all previous policies
3. You can have maximum 20 times insurance of your yearly income, so go for it accordingly
4. Do not surrender previous policy as any policy u will get now will be costlier…
PS – I am not an advisor or agent. I work in Finance but corporate finance and read a lot due to personal interest and money involved in personal finance and hence this is based on that knowledge. Happy to learn more from Dimers.. thanks
Alert: Max Life Insurance has closed their earlier Term plan name – Max Life smart term plan & Max life Online term plan (which was best for customers as cost-effective).
Now they have launched new plan named as Max life smart secure plus plan.
@drjpatwa Bro is there any company which offers Increase in sum assured on annual basis , as today 1 cr cover might seem good, but same may look miniscule after 10 odd years.
I also having 50L cover in hdfc life already, looking to increase it 1.50 or 2 cr..—-any suggestions.
IRDAI Slaps Rs 24 Lakh Penalty on Policybazaar for Violating Advertisement Norm-https://www.news18.com/news/business/irdai-slap...
Hi
I have a question. If a person dies due to covid will.he get term insurance claim?
Yes. He should, as per IRDAI.
IMP Update:
Kindly note that below products of TATA AIA LIFE (Term Plans) will be discontinued for new business submission effective 31st May EOD, so 31st May’21 will be the last day for accepting proposals of below existing products.
• Maha Raksha Supreme
• Sampoorna Raksha+
• iRaksha TROP
• Sampoorna Raksha
NEW TERM PLAN WILL BE LAUNCHED w.e.f.1st JUNE 2021
Any insight what could b reason
I am a 26yo unmarried guy who is doing a job with ok salary and my parents are of age 54,59 respectively. I can’t call myself as fully settled as I am still looking for some other career options. Both of my parents are earning their salaries and they will get monthly pension after their retirement. They have some moderately good property.
Can any one, please advice me whether it will be good to take term policy for them now which covers for next 10-12 years? For my father, I am getting quotations like 65k-80k per year for 1cr term policy for 11 years duration (Even I am not sure, whether the proposal gets accepted at that price given that he is diabetic).
My opinion (since I was on a similar line 3-4 years ago):
The main motive of term insurance is that if the main breadwinner of the family expires, then the dependents should be able to make up financially with insured amount; In your case, god forbid, if anything happens to your dad/mom, then since they don’t have any dependents (you are earning too, even if the salary is okiesh), also they would be having some decent savings and nominee getting the pension, so getting a term insurance now for them wouldn’t make a sense;
Just think like this: What if (god forbid) my dad expires, will we be in a financial crisis ? I guess no, since I am earning, also my dad had decent savings and property, also my mom would be getting the pension and pf amount of my dad… On top this if you plan to go for term insurance now for them, they would have to pay a whooping 70-80K (as per your quotation) for the insurance premium, which is quite much imo;
However I would strongly suggest you to get one term insurance for yourself, in case your haven’t; the reason here would be that, in your case, the premium amount would come to <10K per year which is not much; also I guess you would be getting married in a couple of years, so the insurance would be a great relief to your dependents (wife+kids+parents) during that time.
Great post as always
Thnq @BlueFlash @drjpatwa for your replies.
Did some analysis and calculations comparing these 3 cases
1) Taking a policy now which have a life stage option and increasing the cover in future whenever life stage comes
2) Taking a policy which has an option of 5% increase of life cover every year and finally saturates at “2x life cover” or “2.5x life cover”
3) Taking a policy with cover 1cr and taking another policy with 1cr cover after 15-20 years
Main difference between case 1 and case 3 is u dont need to go through application procedure/medicals once again in case 1. Additional premium will be same whether u increase the cover later or you take a new policy.
I took the example of Aegon. If the subscriber has plans of increasing the cover in the future or taking one more policy in the future, looks like case 2 is more effective (even though premium is 50% higher than taking single normal policy at a time). Because in case 3, after 15-20 years, you will end up paying very high premiums (assuming insurance industry doesn’t decrease the premiums drastically).
Alert: Now Max Life, Tata life insurance are asking about Covid vaccination status & certificate at the time of fresh login.
I have opted for india first (bob) term plan
Guaranteed pritecy plan.
Age 30
Sun insured 50 lakh
Premium payment term 15 years
Annual premium 11700
Policy coverage upto 85 years (policy term 55 years)
After months of research found this to be reasonable and worthy
Bro, you should consider increasing the coverage to 1cr. Charges for additional coverage would be higher later.
Your policy paying term is only 15 years and coverage for 55 years. You have a lot of possibilities (permutations) to explore if you do not want to increase the premium amount much. You can increase premium paying term or decrease coverage to 70 years which should suffice as after that age, you most likely won’t have dependants.
How is lic tech term?
I planning to take cover for 30 or 40 times my current earnings.. Considering the future increase in income..
Will lic accept such sum insured?
Also lic website is asking upfront payment for tech term before medical…. Suppose if they are not willing to issue 40 times sum insured, will they cancel and refund amount without any deduction?
Payment of premium before medical is general practice.
As you are reaching payment step after entering your current income and expected insurance coverage, it would mean that insurer (LIC) is okay with your coverage. After medical, based on results, insurer can ask for increased premium for coverage. If you are not okay with new terms, you will get your money after duduction of medical test cost.
Is it correct to go for private firms considering long duration of term policies?
We never know when private will shut the shop and all the hustle of migrating to new company is not worth taking at old age…
So planning for lic only with a hope that at least it will survive till that period
Let me know if anyone need a max life insurance plans. I will provide some cashback too.
Is term plan premium increased for a person recovered from Covid?
Should we take term insurance directly from company portal or through 3rd portals like policy bazaar etc?
If the policy that you are looking to purchase is available in offline mode, I suggest that you get it through local agent. They will be willing to share part of their first commission and also help during claim process. Go with someone known though.
If you are in Delhi and need a local trustable contact, I can help connect to person I got my policy from. DM me if required.
Good. But Maximum SI allowed is 25 lacs only.
Don’t know, Why IRDA is killing such good products by putting such restrictions !!!
I agree. I have 2 Max policies, but all of them have stupid clauses, including one where they can permanently deny making claim payment to you based on their discretion even if your claim is perfect. LIC is the only player that does not have this illogical clause.
Btw, can you recommend the best simple term plan from LIC ? I believe there is an online only plan for LIC – how is it ?
I think insurance companies cannot deny a claim if premium have been paid for 3 years.
The insurer on any ground cannot reject a claim after a period of 3 years even if the fraud is detected. Once the time period of 3 years lapses the insurer has no right to reject a claim.
Quite from :
https://www.google.com/amp/s/scripbox.com/pf/li...
My friend, the article is talking about fraudulent information declaration at the time of policy generation.
Insurance is a legal document. You are willingly accepting and signing on clauses that deny claims – i don’t think any Indian law can cover that since that’s what you agreed legally.
The act talks about “policy issuance”, not frauduent claim. Any mention of claim – nope, no, nada !
Section 45 of The Insurance Laws (Amendment) Act, 2015 :
Policy not to be called in question on ground of mis-statement after two years.—No policy of life insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no policy of life insurance effected after the coming into force of this Act shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement 1[was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made] by the policy-holder and that the policy‑holder knew at the time of making it that the statement was false 2[or that it suppressed facts which it was material to disclose]: 2[Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.]
Read the law by yourself: https://indiankanoon.org/doc/6...0/
Why would i WAIT for 3 years with a good for nothing policy that just gives 6% interest at max – that too cause of some lame data entry bummers that they’d refuse to correct? If i just needed 6% interest with no life cover, i’d get a FD !
How is LIC Jeevan Shiromani Plan?
1 year ago, had discussed here and finally zeroed upon Aegon life insurance.
But I had some pre-existing health issues. So, didn't want to waste money just on tests as the chances of getting a policy are low. Contacted support team. Their support team's response was veryyyyy poor. But finally, they asked me to write a mail mentioning health issues so that their underwriting team can tell me whether a policy proposal will be taken by them or not (only proposal not issuing policy). Also, they asked me for income proofs for some X amount/month to get a 1cr policy. But my salary was not that much. At the same time, my hike was due from my employer. So, wanted to buy the policy after the hike. But unfortunately, I went on long leave after the two months of the hike. But they asked me for 3 months of pay slips with hiked salary. Hence, didn't even mail them regarding my health issues
Should Thank @drjpatwa for the valuable information that he has given even through chat
In the last year, I and my sister both did common research on term insurance. She also had very bad customer support from Aegon. Then, she went for Max policy. After a 5% discount on the website, she got a best deal than local agent’s deal
Is term insurance can be claimed under sec 80D ?
can plain vanilla term insurance with accidental rider from HDFC click2 proetect 3d plus be claimed under sec 80D for tax benefits ? or this has to be claimed under sec 80C?
Everyone,
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?