Term Insurance Poll 2022!

Max is best
ICICI is cheap and good

raman12 wrote:

Max is best
ICICI is cheap and good

ICICI isn’t cheap. In fact costlier than most..
Choose between HDFC IPru Max TATA

Claim Paid Ratio yoy is a factor that you should always consider while buying

I prefer paying yearly till policy expiry. Don’t fall for the trap of pay for x years a higher amount

thunderguy wrote:

Claim Paid Ratio yoy is a factor that you should always consider while buying

I prefer paying yearly till policy expiry. Don’t fall for the trap of pay for x years a higher amount

Learnt that after I bought mine

BAT_MAN wrote:

Learnt that after I bought mine

company or payment term

thunderguy wrote:

Claim Paid Ratio yoy is a factor that you should always consider while buying

I prefer paying yearly till policy expiry. Don’t fall for the trap of pay for x years a higher amount

why not?

adnan_d92 wrote:

why not?

These companies earn interest on your extra paid premium. Instead opt for regular life cover and invest the difference premium in your choice Mutual fund/Small Case. After a period of 10-12 years you will yourself see that the amount you invested these years will automatically pay up your premium for future years + you will end up saving extra money too.

thunderguy wrote:

Claim Paid Ratio yoy is a factor that you should always consider while buying

I prefer paying yearly till policy expiry. Don’t fall for the trap of pay for x years a higher amount

But i think, for businessmen or someone who got a lumpsum amount, a single premium term of atleast half the cover planned is a good idea.

nilo09 wrote:

These companies earn interest on your extra paid premium. Instead opt for regular life cover and invest the difference premium in your choice Mutual fund/Small Case. After a period of 10-12 years you will your self see that the amount you invested these years will automatically pay up your premium for future years + you will end up saving extra money too.

A lumpsum single premium term plan costs less, so i don’t see much difference.
What you mentioned here holds good for life insurance covers other than term insurance.

thunderguy wrote:

company or payment term

No need to opt for limited premium term

nilo09 wrote:

These companies earn interest on your extra paid premium. Instead opt for regular life cover and invest the difference premium in your choice Mutual fund/Small Case. After a period of 10-12 years you will your self see that the amount you invested these years will automatically pay up your premium for future years + you will end up saving extra money too.

Big question here is how many would actually go and invest the difference? Most will end up using it for other purposes

thunderguy wrote:

ICICI isn’t cheap. In fact costlier than most..
Choose between HDFC IPru Max TATA

Maybe now increased, in between it was cheap till jan 2022

nilo09 wrote:

These companies earn interest on your extra paid premium. Instead opt for regular life cover and invest the difference premium in your choice Mutual fund/Small Case. After a period of 10-12 years you will your self see that the amount you invested these years will automatically pay up your premium for future years + you will end up saving extra money too.

Also non monetary situation need to consider that as you grow older your expenses and responsibilities increase which may not allow you to pay your premiums. However paying the premiums upfront will give you financial freedom later in your life when you have greater responsibilities

adnan_d92 wrote:

Big question here is how many would actually go and invest the difference? Most will end up using it for other purposes

Exactly, such professionals are the target audience of these companies.

raman12 wrote:

Maybe now increased, in between it was cheap till jan 2022

Yes significant premium increase happened in Jan. As per reports, other players are also going to follow the trend.

nilo09 wrote:

These companies earn interest on your extra paid premium. Instead opt for regular life cover and invest the difference premium in your choice Mutual fund/Small Case. After a period of 10-12 years you will yourself see that the amount you invested these years will automatically pay up your premium for future years + you will end up saving extra money too.

Terms insurance are for unexpected death generally.
What if something happens in a year..how will u calculate which one is better in this case?
If you are sure for next 10-12 years, then you need not to take any term plan at all and invest full money

chose Aegon Life Insurance

Max Life anytime. Best customer support with highest claim ration in the market so far. From agent point of view TaTa AIA is good😂

\bumping for visibility/

raman12 wrote:

Max is best
ICICI is cheap and good

Which policy of Max is best for te rm insurance?

Can we transfer from existing hdfc click 2protect 3d plus term insurance to max without taking a hit on premium amount?

shriAyodhya wrote:

Which policy of Max is best for te rm insurance?

Can we transfer from existing hdfc click 2protect 3d plus term insurance to max without taking a hit on premium amount?

As per my knowledge, Term Plans cannot be ported.

shriAyodhya wrote:

Which policy of Max is best for te rm insurance?

Can we transfer from existing hdfc click 2protect 3d plus term insurance to max without taking a hit on premium amount?

No idea about porting term plan brother

1. Max life
2. LIC tech term plan 854
3. Tata AIA

My analysis is based on following factors:
- Claims incurred ratio
- Claim settlement ratio
- Amount settlement ratio
- Claim rejection/repudiation ratio
- Average claim ratio

And then, last 3 year trend of all these ratios, like which company is doing the same, which is doing better year or year & which has already started going downhill.

PS: Tata AIA has one issue. If you’re buying 1cr term ins, they’ll make it 70L pure term insurance + 30L mandatory terminal or critical illness rider. I asked them about this & the representative said it works same like any other term insurance, but better have full clarity before buying.

PS: DO NOT FALL FOR MAX LIFE SCAMMY OPTION OF EXITING THE INSURANCE PLAN WITH RETURN ON PREMIUM. It’s a free rider that says if you take term insurance cover till more than 73 years age, then you get the option of exiting term insurance at age 58 & all your premiums will be returned. It’s a scam & big loss.

atx88 wrote:

1. Max life
2. LIC tech term plan 854
3. Tata AIA

My analysis is based on following factors:
- Claims incurred ratio
- Claim settlement ratio
- Amount settlement ratio
- Claim rejection/repudiation ratio
- Average claim ratio

And then, last 3 year trend of all these ratios, like which company is doing the same, which is doing better year or year & which has already started going downhill.

PS: Tata AIA has one issue. If you’re buying 1cr term ins, they’ll make it 70L pure term insurance + 30L mandatory terminal or critical illness rider. I asked them about this & the representative said it works same like any other term insurance, but better have full clarity before buying.

PS: DO NOT FALL FOR MAX LIFE SCAMMY OPTION OF EXITING THE INSURANCE PLAN WITH RETURN ON PREMIUM. It’s a free rider that says if you take term insurance cover till more than 73 years age, then you get the option of exiting term insurance at age 58 & all your premiums will be returned. It’s a scam & big loss.

Can you please provide more details on Max life why its a big loss?
@prem4998

BBal wrote:

Can you please provide more details on Max life why its a big loss?
@prem4998

+1

For me, i had to take cover till 67 for that free rider. I already planned for until 65 so 2 more years didn’t hurt. In case, if I am wealthy enough at the age of 52, i can choose to exit. But I don’t understand why you call it a scam and loss without providing a valid reason. Can you please elaborate? @atx88

Thanks for tagging me @BBal

prem4998 wrote:

+1

For me, i had to take cover till 67 for that free rider. I already planned for until 65 so 2 more years didn’t hurt. In case, if I am wealthy enough at the age of 52, i can choose to exit. But I don’t understand why you call it a scam and loss without providing a valid reason. Can you please elaborate? @atx88

Thanks for tagging me @BBal

+1

prem4998 wrote:

+1

For me, i had to take cover till 67 for that free rider. I already planned for until 65 so 2 more years didn’t hurt. In case, if I am wealthy enough at the age of 52, i can choose to exit. But I don’t understand why you call it a scam and loss without providing a valid reason. Can you please elaborate? @atx88

Thanks for tagging me @BBal

Sure guys @BBal @prem4998

I’ll tell you my thoughts on that. It’ll be a bit lengthy, please bear.

First thing @BBal bhai, entire Max life is not big loss, I was only talking about their return on premium option which is marketed as “free rider” offer. Otherwise, max life as such is top on list to buy.

What what happens when you take this ‘return on premium’ age 58 exit rider?
Simple, when you hit the age 58, you’ll get back your premiums (less gst) and your term insurance is canceled !!

imho, 58 age is too early to close all your term insurance safety net even in today’s scenarios, let alone 20 years future from now. What if you close insurance at 58 & die at 62 (god forbid), but your non-earning partner might end up living till 80? How exactly will she/he manage without enough wealth to sustain 18-20 years, that too 25-30 years from now when per month basic expenses will also be very high.

Now, according to me, all return on premium plans are a big loss, simply because you’re charged extra directly or indirectly for this “return on premium” feature and you also do not get any interest on those premiums returned. For 20 years or so, even in FD amount would triple for you. But in this case, you only get the principal amount with zero interest. So if you’re betting you’ll live, why lose money? 

Also, why did they increase it to age 73? Answer is simple, average life expectancy is touching 70 in India. So more & more people are likely to live & cross age 58 comfortably and if they cancel term insurance at 58, these companies will just sit on earned interest & won’t have to pay a dime when these policyholders die after 58, because you know, the insurance is canceled!

Another factor is their current average ratio of term insurance claims wrt new policies every year, which is less than 4% in India. So they’re betting with 96% probability for you to live and cross that age.

Now in Prem bhai’s case, there were 3 different/extra things:
1. That age limit was 67 with Max earlier, which I would definitely insure myself for. I’d take term cover for me till age of 70. Above it, I think its pointless. Now making that 73 is only a game of greed. You’ll only end up paying 8.5% extra premium for practically no benefit.
2. Prem already has plans till age 65. I’m assuming by plan he means another term plan already in place. Which implies even if takes these premiums returned at age 58, still some safety net is there for family till age 65.
3. He has fix wealth generation goals by age 52.

These all scenarios will not be there for every person.
- Most people don’t have multiple term plans.
- Now in current scenario, in order to get free rider, you’re indirectly forced to buy policy till age of 73, which is not just pointless but also expensive.
- Third thing is suppose you exit insurance at 58 but what if you miss your other wealth goals by a relatively high margin? That is also a possibility. In that case, you’ll not only have less wealth generated, you’ll also have no term protection.

For me, the basic reason for need of term insurance – is to provide safety net to your family in case you die. It is not an investment. And if you want to behave it an investment, atleast don’t make it a poor return investment. Also, you should know when term insurance is not for you. If you have enough wealth, then you don’t really need term insurance. So as in Prem bhai’s case, if there is enough wealth before 58, its okay to exit term insurance. But it’ll not be the same case for everyone.

I hope this would make sense. I also understand that some points are always contrary to each other in these matters, but there is not much that can be done about it. You can only decide on what is more important to you.

Also please note: Max life website tries to fool you by showing a lower premium which is applicable only for first year. So look carefully what’s all written in those small letters.

@atx88 kg+