Hotness Need suggestion for Term insurance

Hot Deal Need suggestion for Term insurance

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Deal Cadet
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Hello Dimers, I am looking into taking term insurance plans for myself and if possible cover my family as well. I can pay yearly or monthly, though one time lump sum payment also is possible but last choice. Please help me chose a best term insurance provider to go for ?

What are the things that I should look into before buying the plans and what I should avoid and select mandatorily. Please guide me pray

63 Comments  |  
22 Dimers
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Deal Cadet
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Tata has good settlement ratio at 99.1%. It doesnt require medicals also, of course varies from person to person. Hdfc ergo also has good ratio and even has 24 hr claim settlement promise.

Check on Policy bazaar for rough idea. Dont give your mobile number or else you will be bombarded with calls. I heard that premiums getting costlier by 20% from 1st April.

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Deal Cadet
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Term insurance is only for earning members of family not for everyone. The ones if lost or unable to work could set back family financially. Also not needed for people almost near retirement.

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Deal Subedar
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1. Buy online
2. Be specific about time and coverage
3. Don’t mix insurance with investment

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Deal Subedar
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BAT_MAN wrote:

1. Buy online
2. Be specific about time and coverage
3. Don’t mix insurance with investment

4. Try to go for limited pay options (5y, for ex). Instead of annual pay options.
This will result in paying way lesser premium amount compared to annual pay option

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BAT_MAN wrote:

1. Buy online
2. Be specific about time and coverage
3. Don’t mix insurance with investment

1. Yes going online only.
2. Planning to cover till 65-70 years max
3. Treating this as medical expenses so not expecting this to give me benefit of any sorts.

@dev007

4. Does limited premium term reduce’s benefits by any chance ?

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Deal Subedar
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A.M.A.Z.O wrote:

1. Yes going online only.
2. Planning to cover till 65-70 years max
3. Treating this as medical expenses so not expecting this to give me benefit of any sorts.

@dev007

4. Does limited premium term reduce’s benefits by any chance ?

Not that I know of. Same Benefits as the annual pay one. As a quick reference, 5y pay results in paying around 2L,whereas you end up paying north of 4L in annual mode.

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Deal Subedar
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I am not inclined towards limited premiums
for regular/yearly premiums –
You pay fixed amount every year, that will be lesser than the amount for limited premiums
- That amount utilisation is not considered in above calculation
- In case of any unwanted event, remaining premiums get waived off, so you save there

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Deal Cadet
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BAT_MAN wrote:

I am not inclined towards limited premiums
for regular/yearly premiums –
You pay fixed amount every year, that will be lesser than the amount for limited premiums
- That amount utilisation is not considered in above calculation
- In case of any unwanted event, remaining premiums get waived off, so you save there

Also one can invest the difference of the limited and fixed amont in other instruments to build the corpus that generate more returns and can be left for the family

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Deal Newbie
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A.M.A.Z.O wrote:

1. Yes going online only.
2. Planning to cover till 65-70 years max
3. Treating this as medical expenses so not expecting this to give me benefit of any sorts.

@dev007

4. Does limited premium term reduce’s benefits by any chance ?

you can get best and cheapest plan by contacting me

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Deal Cadet
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I read somewhere that term plan rates will increase next month by 30% so search accordingly.

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Deal Captain
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Plane vanila term plan of 20*your per year salary, if 10lakh than 2cr
Choose yearly premium option
If you smoking add cancer rider with it

And than take one health insurance for u and ur family

Prefer hdfc or icici online mode don’t buy via ur bank rm or agent…

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Deal Captain
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Plane vanila term plan of 20*your per year salary, if 10lakh than 2cr
Choose yearly premium option
If you smoking add cancer rider with it

And than take one health insurance for u and ur family

Prefer hdfc or icici online mode don’t buy via ur bank rm or agent…

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Deal Newbie
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Go with a term plan till 65 years. Retirement age being 60. Term plan is basically an income replacement in case the policy holder dies. So buy a term plan till your working age.

Never pay the entire amount in one shot or in let’s say 5 years. Pay it annually. Income tax benefits and also you can better invest the amount yourself. Also if anyone excercises the policy then the extra premium paid is also lost.

For payout opt from lump sum payment. Not for regular monthly payment.

Sum assured should be around 20 times your annual salary. So let’s say your gross salary is 10 lakhs. Policy should be for 2 crores. As and when the salary increases increase the sum assured. Better increment the sum assured rather buy another policy to cover the short fall.

Personally I prefer hdfc and ICICI. I also prefer splitting that 2 crores policy into 2. 1 crore with one and the other 1 crore with the other insurance company.

I would also recommend policy Bazaar.

Forgot to add do NOT lie on the insurance form. Even if you have somked a single cigarette in the last year you are a smoker. For other things as well never lie on the form.

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dimeras wrote:

Go with a term plan till 65 years. Retirement age being 60. Term plan is basically an income replacement in case the policy holder dies. So buy a term plan till your working age.

Never pay the entire amount in one shot or in let’s say 5 years. Pay it annually. Income tax benefits and also you can better invest the amount yourself. Also if anyone excercises the policy then the extra premium paid is also lost.

For payout opt from lump sum payment. Not for regular monthly payment.

Sum assured should be around 20 times your annual salary. So let’s say your gross salary is 10 lakhs. Policy should be for 2 crores. As and when the salary increases increase the sum assured. Better increment the sum assured rather buy another policy to cover the short fall.

Personally I prefer hdfc and ICICI. I also prefer splitting that 2 crores policy into 2. 1 crore with one and the other 1 crore with the other insurance company.

I would also recommend policy Bazaar.

Forgot to add do NOT lie on the insurance form. Even if you have somked a single cigarette in the last year you are a smoker. For other things as well never lie on the form.

Thank you for a comprehensive write-up.. How is Max life ? My pre medical condition is covered only by them. Also I am a smoker and I am going to mention it there too. What’s the reasoning behind splitting in two ? Like safety if one fails ?? Is there any guarantee if the insurance company goes under ? Was planning to go for 10 year paying term with 65 years as coverage plus 39 critical illness covered. What do you mean by excercising policy ? I wanted to see if I can go for increase in cover plus monthly guranteed income. Benefit of paying annually instead of monthly ? Thanks in advance bro for your help pray

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mohitbns wrote:

you can get best and cheapest plan by contacting me

How ? Pls inform here also so others also can benefit.

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Deal Newbie
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A.M.A.Z.O wrote:

Thank you for a comprehensive write-up.. How is Max life ? My pre medical condition is covered only by them. Also I am a smoker and I am going to mention it there too. What’s the reasoning behind splitting in two ? Like safety if one fails ?? Is there any guarantee if the insurance company goes under ? Was planning to go for 10 year paying term with 65 years as coverage plus 39 critical illness covered. What do you mean by excercising policy ? I wanted to see if I can go for increase in cover plus monthly guranteed income. Benefit of paying annually instead of monthly ? Thanks in advance bro for your help pray

I recommend HDFC and ICICI because of their claim settlement ratio. You can check policy Bazaar website for claim settlement ratio of other providers.

Splitting is just as you mentioned is adding a safety net, if one company goes out of business.

I prefer annual payment because of time value of money and loss of investment opportunity in case lump sum or shorter premium payment plan. Simply speaking 100 rupees today isn’t equal to 100 rupees after 20 years.

Excercising policy I mean that in the event of some mishap someone is claiming the amount.

I prefer lump sum payout because it can be invested as per one’s will. Which can also fetch a better/worse returns.

Also as a bonus tip. Consider getting a will made. It can be on a plain paper or you can get an ewill online. This is important because adding a nominee which is compulsory today only ensures that the payout is made to that person. However in case anyone makes a claim to that amount then if there’s a will then the amount is to distributed as per the will only.

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Deal Cadet
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HDFC life it’s cheaper if you login to netbanking and you will get around 16% discount for all the years

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Deal Cadet
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Hdfc life click2 protect 3D plus
Is one of the best term plan insurance..take disability rider or critical illness as per requirement

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bharathbb wrote:

HDFC life it’s cheaper if you login to netbanking and you will get around 16% discount for all the years

Do you need to be existing customer of hdfc bank for this?

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rohan8397 wrote:

Do you need to be existing customer of hdfc bank for this?

No, I hold term insurance with HDFC life but don’t hold any account with them.

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jvin982639 wrote:

No, I hold term insurance with HDFC life but don’t hold any account with them.

I was asking for the discount he mentioned

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Any difference if policy is bought on policybazaar and directly from hdfc site?
Any benefits from policybazaar?

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Deal Newbie
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rohan8397 wrote:

Any difference if policy is bought on policybazaar and directly from hdfc site?
Any benefits from policybazaar?

Policy price is same if you buy it on policy Bazaar website or a hdfc website. Going via some agent might cost you a bit more.

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Deal Subedar
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Hava some queries… Plz advise…

1. Is it good to go to private players rather than LIC

2. If any bankruptcy (I don’t wish to obviously) what will be the clause as per irda

3. Can we any where get reasons for claim rejection ( towards claim settlement ratio against respective insurance provider)?

Thanks in advance blush

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In term plans off late they are not concerned abt alcohol consumption.. Any reason

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yieldeal wrote:

In term plans off late they are not concerned abt alcohol consumption.. Any reason

Just 2 cents, Claims will be denied in case of mishap under alcohol consumption. That’s my understanding.

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