Term Plan

Term Plan

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Deal Cadet
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Folks,

I need some inputs on term plans.

I have a icici term plan for 2 cr starting 3rd year in Feb. I had looked at Edelweiss zindagi + eterm plan where spouse is also covered if anything happens to you.

Also in general, what you think is better option if budget is fixed say 25k. 2 Cr term plan without any add-ons. 1/1.5 Cr term plan with add on benefits like critical illness cover.

Looking for expert opinion

18 Comments  |  
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Deal Cadet
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Lic’s tech term plan is better. Though premium is slightly higher than icici but considering LIC reputation it is better

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Critic
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The premium of term plan increases with age.
The purpose of term plan is to ensure adequate financial safety to your family/dependents in case any thing happens to the issued. So not sure what purpose it would serve by continuing the cover of spouse. In case spouse is required to be covered, a separate term plan may be a better option.
ICICI term plan also has option of critical illness. But not very sure if it can be added to an existing policy.
Instead of having a single term plan with one insurer, having multiple smaller plans can be a better solution. Also, as one grows older, the earning capacity and financial responsibilities also increases. So adding to the total cover amount by taking a new addl term plan once every 5 years is better.

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Deal Cadet
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panchabhut wrote:

The premium of term plan increases with age.
The purpose of term plan is to ensure adequate financial safety to your family/dependents in case any thing happens to the issued. So not sure what purpose it would serve by continuing the cover of spouse. In case spouse is required to be covered, a separate term plan may be a better option.
ICICI term plan also has option of critical illness. But not very sure if it can be added to an existing policy.
Instead of having a single term plan with one insurer, having multiple smaller plans can be a better solution. Also, as one grows older, the earning capacity and financial responsibilities also increases. So adding to the total cover amount by taking a new addl term plan once every 5 years is better.

What will you suggest if my target is to have 2 cr coverage ? Well in spouse case, she will be additionally covered if anything happens. I will try to split plans … Is critical illness cover worth it ? That’s my question

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Manitian wrote:

What will you suggest if my target is to have 2 cr coverage ? Well in spouse case, she will be additionally covered if anything happens. I will try to split plans … Is critical illness cover worth it ? That’s my question

in current scenario where every day dome new deadly disease comes up and we are practically breathing and eating pollution, critical illness is a definite possibility.

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Blogger
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critical illness cover is must
get spouse addition

its worth it

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Deal Cadet
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panchabhut wrote:

in current scenario where every day dome new deadly disease comes up and we are practically breathing and eating pollution, critical illness is a definite possibility.

@rogerthat
@Manitian
If I purchase term plan online, do I need to go through medical tests and all? I am 26

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bornsmart wrote:

@rogerthat
@Manitian
If I purchase term plan online, do I need to go through medical tests and all? I am 26

Yes, but depending upon the age profile, the set of tests change. At your age, it is expected to be the basic set only and ECG & Blood Sugar tests may not be required.
For ICICI bank account holders below the age of 30, ICICI Pru also have issued without medical in some cases.

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Deal Cadet
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bornsmart wrote:

@rogerthat
@Manitian
If I purchase term plan online, do I need to go through medical tests and all? I am 26

Yes. Tests are mandatory, but they are very basic … Unless you have some existing things, its pretty straightforward.

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Deal Subedar
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panchabhut wrote:

The premium of term plan increases with age.
The purpose of term plan is to ensure adequate financial safety to your family/dependents in case any thing happens to the issued. So not sure what purpose it would serve by continuing the cover of spouse. In case spouse is required to be covered, a separate term plan may be a better option.
ICICI term plan also has option of critical illness. But not very sure if it can be added to an existing policy.
Instead of having a single term plan with one insurer, having multiple smaller plans can be a better solution. Also, as one grows older, the earning capacity and financial responsibilities also increases. So adding to the total cover amount by taking a new addl term plan once every 5 years is better.

If one takes multiple term plans, do let the insurer know upfront of any other term plan you already have before taking policy.

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Entertainer
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rohan8397 wrote:

Which companies should we prefer for term plan? Can anybody list top 5?
@panchabhut @rogerthat @igen

Look for companies having High Claim Settlement Ratio. Good corporate governance (alongwith brand name and goodwill). Magnitude of Assets Under  Management (AUM)and Solvency Ratio.

Also check whether in the past, it has violated any Irda norms. Top most companies are HDFC Life, Max Life, and LIC.

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