9 most asked questions about Term Insurance

How does claim settlement work in case you have more than one term insurance policy? Does term insurance provide cover outside India? What if I suffer from some major illness or start smoking after buying a term insurance policy? How easy is it to get a claim from a private insurance company as compared to the state-owned Life Insurance Corporation of India (LIC)? I am sure you must be concerned about all these questions if you have a term insurance policy or planning to buy one.

Today, I will answer some of the most asked questions, which an individual has in his mind, about term insurance. These questions if left unanswered would not only lead to fear, but may also delay one from taking the right decision. Please note: The following questions and answers are only for term insurance policy and are generally true for any company’s term plan. However, very rarely these questions and answers may differ across insurers.

1. Do Term Insurance pay in case of Accidental Death ?

Yes, term insurance pays in case of an accidental death. The sum assured or cover taken under the term plan will pay the claim if the death has occurred due to any reason, be it natural or accidental death, or death due to some illness. There are certain riders (additional benefits) such as accidental death benefit, permanent disability rider and critical illness rider. By buying/adding these riders to the policy, a policyholder can ensure that his nominee will get an amount over and above the basic sum assured (due to any of the rider-related incidents).

2. Does Life Insurance covers death outside India ?

Yes, term plans cover death outside India provided the policyholder has updated this fact with the insurance company. He needs to mention that he now lives outside India. Just like change of phone number, address or nominee, there is a facility in the policy service form where the policyholder has to mention that he is going abroad. However, if he is going to a country that is marked as unsafe like Pakistan, Burma, Somalia etc, then the company will decline this facility. Otherwise, this cover will be valid in other countries like US or UK.

3. To what extent Pvt Insurance companies investigates death compared to LIC ?

There is a difference between early claim and normal claim. If a claim arises within the first two years of buying the policy (This period varies from company to company), the company investigates extensively before settling the claim. You can very well understand if someone has a cover of Rs 50 lakh by paying Rs 7,000 annually (And he has taken this policy on monthly basis, i.e. paying around Rs 600 monthly), then the company is at a great risk. Hence, the company will doubly check everything to settle the claim.  In normal claim, premiums are paid regularly and the policy is in force for a long period, say 12 to 15 years. In these cases, there are not much issues in getting a claim, be it LIC or any private company.

4. If I buy a term insurance policy today, can its premium change in the future?

Unless and otherwise it’s mentioned in the policy document. Premium of a term insurance remains the same throughout the term of the policy provided everything remains the same with the policyholder. That is, the policyholder has not developed any illness or any smoking/drinking habit. On declaring any such thing, company might apply loading and thus the premium amount changes.

5. What if a person becomes a smoker after some years of taking the policies ?

If the policyholder has developed any habit, like drinking or smoking, after buying the policy, he generally does not have to disclose this fact to the company  at all, unless its clearly mentioned in the policy document

6. What if a person was a smoker long back but not at the time of taking the policy ?

Depends on the policy, but just for example, the Kotak Life Insurance proposal form mentions that the client has to declare whether he was a smoker or drinker earlier also even if he has left that habit long ago. Please see page 4, question 10.3 of this document . However, I am not sure about other companies. Also, it depends on the company whom they consider as a non-smoker at the time of issuing a policy. For example: Max New York Life Insurance, for its Platinum Protect (term insurance), considers people, who have left smoking more than three years ago, as non-smokers. So please check the company’s rule :)

7. What kind of deaths are not covered in term insurance?

Some important facts, which most of the people are unaware of, are that most companies exclude “Death due to Terrorist Attack”. Although such claims are settled on humanitarian grounds later on when the nominee approaches Insurance Regulatory and Development Authority (IRDA) but such exclusion is there in most companies. Other important fact, which public at large is unaware of, is that insurance companies do not cover death due to war or natural disaster like earthquake/tsunami. Because in these cases, death toll is high and the claim to be settled runs in crores of rupees which is difficult to settle by the company all of a sudden. Therefore, these facts should also be kept in mind while buying a term insurance.

8. How to take care of claim settlement in case of more than two policies?

The very first thing, in these cases, is to declare in the proposal form that you already have a policy from an XYZ company. (There is a column in every company’s proposal form, which a client has to fill if he has an insurance policy from the same company or any other company). Once such information is provided, then at the time of claim, the usual practice is to submit the Death Certificate to the insurance company with whom the policy is running for the longest period. Other companies are then informed of the procedure due and an acknowledgment from the FIRST company is provided to them which is accepted by other companies.

Moreover, of late, it has been reported that generally insurance companies do not ask for an original death certificate to settle the claims, even a photocopy of the certificate will do. So be alert while filling the form and provide all the information about your previous policies to prevent even a minor problem later on.

9. Can NRI’s buy Term Insurance ?

They can, but there is a catch. As a general rule, A person has to be resident in india to take up insurance policy from an Indian Company, reason being the documents required by the company like Address proof/age proof are to be for some place in India. Moreover, if the Sum assured required is more than 50 lakhs or so, customer is required to submit his financial papers such as last 3 years ITR or Form-16 which again should be done in India only. Last thing, medical tests would be done at some medical center affiliated to the insurance company near the address of the client which again should be in India. So these are reason why insurance might have been declined to some NRI.

So one way which might work is this , If a NRI wants to take Insurance, then on his/her next visit to India he should submit his proof of residence, age, last 3 years ITR etc and get his medical done at his Indian address. this way he can get his policy issued very easily. However, there is no need to complicate it and incase you are out in some country and plan to be there for next couple of years , the best thing would be to take term insurance from your country of residence and later when you come back to India , you can buy term insurance that time.

Comments Do you have any other doubts in Term Insurance which are not covered here? Which one out of the above 9 did surprise you most ?

The inputs are provided by Dhawal Sharma, who is an agent for Kotak and Max Bupa .

860 CommentsAdd Comment

  1. Sanjay Sutar

    Thanks a lot to Manish and Dhawal, I had been scratching my heads for so long to know these kind of details.

    Now I can take a good policy based upon your valuable inputs.

    • Great to hear that your queries are solved . Make sure you forward this piece of information to as many friends as possible and also share this on twitter and your facebook profile


      • lakshay

        What happens in the case when the customer buys a policy and he mentions that he does not have any diseases, but in reality he might be having a disease which he is not even aware/has not been diagnosed of. For e.g. cancer(Which may take time to show symptoms).

        Is the policy valid in this case?, keeping in mind that the person is not aware/has not been diagnosed with any condition, but may have an underlying medical condition at the time of purchasing the policy.

    • Pradeep

      Hi Manish
      How trustworthy all these private insurance companies on a long run say about 15 – 20 years ? ( like ICIC prudential, Bajaj, Aviva, etc)

      How is their claim settlement ratio ?


    • kiran bhandari

      in term policy is there the act for the ladies in built. how we can look out which co is giving the more claim & hasstle free. who gives the claim the company or the irda for small or big claims.

  2. Harish


    Very useful and detailed information..

    Just a quick query:

    2 years back, I had bought my first term insurance from LIC, and recently bought my 2nd term insurance from Kotak, where I declared that I already have plan from LIC….Question Do I need to inform LIC that recently I bought another term insurance plan from Kotak?


      • Harish

        Thanks Manish for your quick reply…

        A small quick query on notifying insurnace company while travelling abroad…

        We usually visit abroad for our official work… the duration generally stands from few weeks to 2-3 months,…Question : For every visit do we need to informed insurance company? or is it when you permanently settled down to aborad?


        • Harish

          I dont think so , you just have to notify if you are going to settle there or going for a very very long time like 1-2 yrs .

          Anyways .. dont forget to take travel insurance if you are going for 2-3 weeks .



    Dear Manish,

    One query: At present I am holding one term plan from AVIVA. Now I intend to take one from ICICI too – the reason, nothing other than cost effective for the same features. So when I will be going for ICICI, I will be telling those guys about AVIVA policy which I intend to discontinue (AVIVA one) once I am covered with ICICI. Should I need to update ICICI later on?

  4. Venkatesh Kumar

    Excellent information! I did not know that we have to let the Insurance company be aware of traveling abroad. As soon as i read this, i let them know about this.

    Few questions:
    1. Does the same rules apply to ULIP policies as well? Since my policies are fairly large [40Lakhs and 75 Lakhs Sum assured], do you think it is safe for me to let them know about the fact that i’ve moved abroad for some time?

    2. I have pension policies as well – do i have to let them know?


    • Venkatesh

      Yes you should tell them , note that these rules are true for any pure insurance atleast and ULIPs also have pure insurance and they cut mortality charges . So better tell them .

      No need to tell them for pension schemes


      • Pankaj Parashar

        I doubt that Insurance companies should be notified if a person travels abroad…or settles there…will confirm tht soon..
        and for ULIPs ..you may say that they have an insurance part.. not Pure Insurance :) somehow that doesnt seem right…

          • Pankaj Parashar

            may be the rules differ for companies..however…I am very sure that u need not to notify the company…that you r going to settle in abroad…still Dhawal might reconfirm…

            • Dhawal Sharma

              Reason why you must inform the insurer about you foreign settlement is same as updating your information regarding change of address or change of phone number etc..So that company can update its records…

              Plus, company would also be able to notify if you are travelling or planning to settle to any such country which might be blacklisted as DANGEROUS such as BURMA, SOMALIA, NIGERIA, PAKISTAN or whichever country on their list that your LIFE COVER will not be VALID there…

              Also, if you inform the insurer beforehand, they will be able to provide you with documents which might be required to settle claims later on if something untowards happen and who will be concerend person/office/number over there to contact in case of emergency…

  5. JayaprakashReddy Kanreddy

    Excellent Manish. You have got right article for the audience. Many people has these questions in their mind.

    One more question they always say that suicide is not covered in the first year. Is it covered after first year?

      • Jayaprakash

        No Manish, never. I know that somebody will say that, I thought putting a disclaimer there but forgot. :)

        This question asked just to clarify it. I dont know why they mention it for first year only. So, out of curiosity asked it.

        • The reason they might be putting it is , that someone cant plan for his suicide 1 yr in advance (actually one can , but generally there is not case like this where a person plans that he will suicide in one year) . but the same person if frustrated by something can plan for suicide in a week or max 1-2 months .

          So company wants to make sure that they dont get those kind of cases . Makes sense ? Its my personal view


  6. prabeesh

    I know this is not directly related to things here,but still i am trying to put question here.

    You say calculate Insurance based on your goals and needs. Let me assume my family will need 50lakh in my absence to cover the expenses and meet other goals.

    Now if i die after 5 years.Insurance company gives 50lakh to my family ,this amount is taxable right? if yes the tax above 10 lakh is 30%,which will take away 12lakh from my insurance money from my family. Or is it tax free? or should i include tax as a factor along with inflation when considering insurance amount?

    • Prabeesh

      Any amount recieved under Insurance policy is tax free . It is not tax free only if your annual premium is more than 20% of Sum assured, which is generally never the case , thats the reason you will see most of the ULIPs mention that minimum SA is 5 times the annual premium :) . Now you got it 😉


      • Dhawal Sharma

        That percentage thing (premium should not be less than 10% of SA) is applicable ONLY to ULIPs..In fact, in the latest DTC proposed, only TERM INSURANCE will be the option avilable through INSURANCE where EEE (Exempt-Exempt-Exempt) option…So Prabeesh, be rest assured, whatever SA you have taken for yourself, the entire amount will be received by your spouse in an unfortunate circumstance of you being not there

        • Pankaj Parashar

          The Death Benefit is Tax Free..in all insurance policies..be it Term or ULIP….
          Under DTC in its current form…the Maturity Benefit for ULIPs can also be exempt…if the Sum assured is 20 times the annualized premium

        • Dhawal

          even in current rules , its applicable for any kind of policy wheather ULIP or endowment or whatever , if the premium is less than 20% of SA , the sec 10d is applicable , why did you say 10% , anything which I am not understanding here ?

  7. pattu

    Many companies list suicide within a year from commencement as the only exclusion in the policy document. This means that death by terrorist act\natural calamity is included. If a company specifically states these as exclusions I would avoid them.

    So for the former policies after 1 year death by any means is legitimate and I don’t see why a death in the second year (say by suicide) is an early claim!
    For LIC its 3 years and not 2 I think since they have separate claim forms.

    • Pattu

      the reason Suicide is treated so seriously and not included in 1st year is that its self-induced activity, its in your control and hence its logical to not include it . On the other hand , terrorist/natural attacks are not in our control and hence should be included from start

      what do you think on this ?


      • pattu

        Agreed. My contention is if Suicide within a year is the only exclusion then after 1 year every claim is a normal claim and there is no such thing as early claim.

        LIC which has only the suicide clause appears to treat death within 3 years as an early claim and afterward as a normal claims. There are separate forms for these!

        • Pankaj Parashar

          The companies decide the early claim time period at their discretion…and it is not related to the exclusion….say someone took a policy today and declare himself perfectly fit…and after 1 yr or 1 and a half yr he dies of cancer…. then the company will investigate if he left some important facts related to his health undisclosed or not…

          • Pankaj

            So you mean that after 2-3 yrs when the claim becomes “normal-claim” and NOT “early claim” , the company can not blame the person to not disclose the facts and has to serve him anyways ?


            • Pankaj Parashar

              Hi Manish…

              After 2 years company’s procedure to investigate the claim might differ… if the claims deptt. think that there might be something fishy..they can investigate..and if some material fact (a fact on which underwriting decision depends) is not disclosed, the claim might be rejected even then….
              its just that..the investigation is more for early claims…

  8. Sandy

    What happens in case you buy the second policy later on, you didnt declare at the time the first policy becoz there wasn’t any policy at that time.

  9. Sampath Venkatesh

    Very Useful informations sir. pl. clarify sir.

    (a) Term insurance in pvt. companies not covered accident death. ICICI Pru offers the i-term option II with extra premium. but LIC jeevan anmol and amulya jeeven offers in-build ( but the premium is costlier comparing to others).

    (b) I am business man, My age is 32 and income is Rs.1,65,000/- per annum, i tried to buy the online policy in Ageon religare and ICICI prulife for the amount of 50,00,000 with 30 year s term, both two companies not offered the policy for me without telling the reason.

    • Sampath

      a) Even company covers accidental death by default in Term insurance , accidental rider is only for getting extra money incase of death from insurance .
      b) They might have declined your insurance as 50 lacs looks high as per your current salary .


      • Grr… Manish, I am pretty disappointed with your above comment (in fact with the insurance company) that 50 lac insurance for a person of earning 1.65 lacs was rejected because it was considered too much for his earnings. Back of envelop calculation tells me keeping 50 lac invested in something decent, earning roughly 8% return, will only fetch 4 lac per annum for his family in case something unfortunate happens to him. With that money obviously the family has to take care of the daily needs (add the inflation), cost of education for his kids, dependent parents etc etc…. and paying a Rs.14k premium for a person with an annual income of 1.65 lac is not entirely impossible, especially if the person is prudent enough to consider it.
        So, is really the basis for rejecting his application sound ?


        • Raja

          My comment was just a guess , so I feel that company might have rejected Sampath’s policy because they might have considered it high . I personally dont think so , however there is a rule in life insurance that you can not take life insurance for any random figure , it should match with your current life style and that will be decided by company in general , I think there should be some more clarity on this from IRDA , but I am not aware of that :)


          • Dhawal Sharma

            Actually the contract of insurance is an act of INDEMNITY..that is makingn good the loss for what it is worth and not resulting in profit/benefit to the suffering party.. So the normal rule is cover of 10 to 12 times of the annual salary of an individual is offered by the insurance company…In the above case, SAMPATH can take cover of upto 16 to 20 lakhs easily..
            If any exorbitant amount can be provided by the insurance company than even a RICKSHAWALA can take a sum assured of 1 crore and if he dies after 2 to 3 years, his family will be receiving money which they have never imagined..These are rules framed under AML (Anti-money laundering) guidelines as well..

            • Dear Dhawal,
              Appreciate your logical answer. But the point here is, like so many other logical and mathematical things, this too doesn’t work in practical life.
              Take an example. If we assume people mostly earn less amount at the start of their career and go on to earn higher amount (say anywhere between 5-6 times the starting figure) in later part of their career (say just in a span of 8-10 years of their career). So, this means if someone has planned early and taken a term insurance at the start of his career for the max allowed limit of 10-12 time his then salary, at the end of 8-10 years he is just covered 2 times his current annual income. Isn’t it ??
              Now what that means is, the person has to go for additional insurance at a higher premium because of his advanced age to get a decent cover.
              Also, going by your logic of a max limit of 10-12 times of annual salary cover, do you think a middle aged person can cover all his future obligations like taking care of family, kids, parents everything in just 10-12 times of annual salary in case of an unfortunate incident.

              Whats the solution to this problem ??


              • Dhawal Sharma

                @RAJA – See, there are some practical realities in life too which has to be taken into consideration..First is, insurance is not BE ALL-END ALL solution..If some person, as you said middle aged guy, wants to take care of his OBLIGATIONS, he has to set up his FINANCIAL GOALS priorty wise and then do the FINANCIAL PLANNING to fulfill each one of them..TERM PLAN is only for one purpose and rest of the financial goals can be achieved through ULIPs, MFs, GOLD, PROPERTY etc..

                TERM PLAN is taken for family financial security in the absence of breadwinner of the family..If that person is not there due to any circumstance, TERM PLAN will provide 10 to 12 times of what he would have bring to home on his own..That amount now again has to be utilized and planned to fulfil the rest of FINANCIAL GOALS like child education, health care funds etc..Moreoever, these goals are to be tackled seperately at that level..

                Again, i want to reiteriate that TERM INSURANCE is an agreement to INDEMNIFY (To make good the loss, and NOT result in BENEFIT of the aggreived party)..To you, it may seem very little that he is getting insurance of only upto 10 to 12 times of his annual salary..But think of someone who has not taken any insurance at all..At least on that count, he has a counter hedge to protect his family…

                • Dear Dhawal,

                  You nailed it in this sentence – “i want to reiteriate that TERM INSURANCE is an agreement to INDEMNIFY (To make good the loss, and NOT result in BENEFIT of the aggreived party).”
                  Do you think if something were happen to insured person, just 12 times his current earning ‘makes good for his loss’ to the family ?? This is assuming the best case, and not accounting for the passage of time when the 12 times multiplier has reduced to 2-3 times ? What does your personal experience tells ? How have the families coped in such cases ?
                  Since term insurance is to ‘make good the loss’, no point in discussing other investments like gold, mf, etc etc..


                  • Dhawal Sharma

                    I think we are entering into technicalities here..Making good the LOSS OF ECONOMIC VALUE here..There is a concept called HUMAN LIFE VALUE..I would explain it with my own example..I am 35 years of age, living with my wife and my 2-year-old daughter..I am planning to work till the age of 60, that is for next 25 years..Currently i am earning 5 lakhs per annum..So, if i want to calculate my Human Life Value as of today, it would be my current earnings multiplied by number of years i want to earn/work, i.e. 5 x 25 = 1.25 cr..By this logic i should have a term insurance of Rs 1.25 Cr and believe you me, i have insurance worth of 1 cr on me with 75 lakh term plan from kotak and rest through my investments in ULIP and endowment plans in ICICI, Max Newyork life etc..

                    Now, if i die today, no matter whatever amount is provided to my family, that would seem inadequate as COMPARISON of my LIFE VALUE..But since insurance is an agreement to make good the loss of ECONOMICAL VALUE OF AN ASSET, i believe this much amount would be enough, AS OF TODAY, for my family to sustain the life style which they are currently living..And my personal experience says that whatever amount is provided to the family of the deceased, howsoever it may seem less, is always a helping hand to the family..

                    In my experience of being in insurance sector for last 4 years, i have settled 3 death claims so far and i believe the amount coming in that house through insurance is the ONLY WAY some amount is COMING IN…Most of the families cope up quite okay with the cover amount (Cuz most of the policies taken were ULIP and term plan was thought to be waste of money by the policyholders at that time)..

                    So i believe HUMAN LIFE VALUE is also very important factor to kept in mind before taking up the cover amount..

                    • sudhir

                      Best explained. Afte reading all the answers, i have finally decided to take a term plan.

            • Basavaraj

              Hi Dhawal,
              For your information INDEMNITY will not apply for the Life Insurance. You can’t value the loss to the family because of the earning member’s death. INDEMNITY even not applies to Reinstatement insurance, if the clause is present in contract.

  10. herge

    Thank you for the timely article. I just got amulya jeevan from LIC. However I did not mention to them that my company offers a group term insurance policy for Rs. 30 lakhs. The problem is the company will change the group insurer every year and may increase sum assured every 5 years or so. Should I mention these facts to a letter to LIC?

    Can a claim be rejected by LIC if I dont disclose? I saw in the LIC claim form there is a column for other policies which has to be filled in by the nominee. Since the group insurer changes every year date of commencement also changes and the group policy becomes ‘new’ every year! I am also unlikely to switch jobs. What do I do. Please guide me. Thanks

      • Pankaj Parashar

        manish is right, if you check the Proposal form (most companies) where your previous insurance details are asked, there it is specifically written that , “Do you have any other INDIVIDUAL Life insurance policy”, so you need not disclose about the group insurance…no claim can be rejected on this ground

        • herge

          Many thanks. LIC’s form no 300

          say previous insurance and its badly worded. It looks like its referring to previous LIC policies!!

          • No , its only refering to any insurance policy taken directly by you so that company can know how much insurance you have already taken and how much additional you should be granted .


              • herge

                Manish, Pankaj,

                Thank you for your advice. Just realized that I am paying a mandatory monthly contribution of Rs. 693 towards group term plan. So I am also contributing to the plan although I dont have a choice. Does this make a difference with respect to disclosing it to individual term insurer (LIC)?

                  • Abhijeet

                    Hi Manish,

                    I have one LIC policy running say Rs. 10,00,000 & now I will taking policy from other private insurance of say Rs. 20,00,000, while taking second policy I will be giving declaration about my previous LIC policy, But do I need to convey LIC that I has taken a new policy of Rs. 20,00,000

  11. Raj

    For Critical illness rider also do they investigate extensively ….My CI rider comes in to effect after 180 days of taking the policy..So if something critical happens to me just after 180 days….Will they settle my claim without problems?

  12. 2 questions:
    1. Is death from heart attack covered by normal term insurance ?

    2. For people who travel abroad on work related assignments, are they also supposed to inform the insurer about such travel ?


  13. Jagbir

    Again good article, Manish.

    I have one query. I am intended to purchase one more term policy with permanent disability and CI riders but to be honest when I add these riders in general term policies the premium looks steep.

    I’m wondering the combination of iProtect (ICICI) and Personal Accident policy from United Indian Insurance company which includes PD and CI with nominal charges would make a good choice instead of taking a single term with riders. what’s your views on this?

  14. Jayesh Trivedi

    Dear Manish,

    I bought the birla’s dream plan which has all the feature of term insurence +ULip. Here we can get the money back after policy maturity with the fund value. Pls check it out so it will be useful to our readers. Two years back I bought the same plan . What is the present status because rules are changed since September 1st.

    • Dhawal Sharma

      as of now, the BIRLA DREAM plan has been discontinued and its now BIRLA ENDOWMENT DREAM PLAN…The basic difference is that if you take the cheapest TERM PLAN (Say from IPRU’s IPROTECT or KOTAK’s PREFERRED TERM PLAN) , your premium will be at least 3000 to 4000 less than Birla Dream Plan’s premium..So instead of investing this amount in ULIP, why not invest this higher amount in best performing MF and you will have much-much larger corpus at the end of the term..

  15. Just want to add my 2 cents on your point no.7.

    I discussed “terrorist attack” with ICICI Pru & Religare and both have confirmed that their online term insurance plans covers death due to terrorist attck or radioactive bomb.

    I got this in written from them via email.

    • cant say like that .. Depends which riders you want , what tenure you want , how much comfortable you are with Pvt insurers ..

      I would go with iProtect and LIC if you have to split


  16. pattu

    People who wish to split their term insurance (I don’t see any beneficial reason for this) must remember their nominees must do more paperwork to claim from both companies. Especially if there are delays.

    If you have an uneducated and unemployed spouse who shows no interest in financial matter splitting you policy is like doubling their hardship.
    Most of the time a spouse does not want to hear the word death in a sentence!
    In this case make sure you get an intelligent relative and give him all the details of the policy, ombudsman address etc.

    Also dont expect anybody to pay immediately. This is not like redeeming a liquid fund! I think making a successful claim should take at least 3 months even for a clean claim. So make sure you provide money to tide over this time. Six months expenses should be comfortable

    Term insurance should be purchased with the nominee in mind and not your convenience like cheaper premium, online policy etc.

    • Pavan Kulkarni

      I think it is important not to have your entire SA serviced by one provider. The risk of entire SA getting rejected is very high. If you split it across 2 or 3 providers the chances of all providers rejecting the claim will come down. Moreover, except LIC no one else in the industry has a long track record. So, who knows…these new insurances businesses may even close down (say after 20 – 30 yrs). End of the day, I think, the purpose of insuring (family getting financial help) is more important than the means (family struggling to settle claims). If one has sufficient SA, the family can even hire an advisor to do all the work and probably pay him a percentage. But if one’s claim of entire SA is with one provider and if provider rejects (for whatever reason), then think of the family’s plight!

      As usual, great post! :)

      • pattu

        “The risk of entire SA getting rejected is very high” with a private player, if I may add.

        Most privates are running in loss. I strongly believe their poor claim settlement record is linked to this.

        With LIC if the claim is clean they would sit on it until the nominee/ombudsman pokes hard! A claim rejection of 1.4% is pretty impressive for a dinosaur.

        Yes LIC is a dinosaur: not a T-rex or velociraptor but a plant eater! (if have seen Jurassic park!)

        So in my view it be would be dumb to get entire SA from one private.

        I have only one LIC policy and since I believe I have provided full, honest info, I believe my wife would (eventually) get the SA if I pop.

        Of course its only an expectation.

        Perhaps one can consult an astrologer to predict death, sum assured, duration and of course which policy to buy :)

          • pattu

            Thanks for the link. My eye open wider:

            5/100 claims settled in 15 days for a dinosaur is pretty awesome!

            “Similarly, our outstanding death claims stands at 1.41%”
            Compare this with other players in the annual report of IRDA

            I call it a dinosaur because I recently visited their and was appalled at the kind of computers and software they use.
            Anyone remember a pc called Shiva PC/XT? They have 10/15 year old machines!

            • @Pattu,
              You are right about the dinosaur. :)
              Here is my experience with them: I had taken an endowment policy from them some 7 years back with sum insured for 2 lacs. The annual premium was roughly 12k/annum. After paying for 2 years i lost track of it and didn’t pay premium for 3 years. Then i thought of reviving it some 2 years back. I revived it by paying roughly 10k from my pocket and taking a loan (on the same policy) from them for the rest.
              So, overall i paid 24+10k=34k to them over a period of 5 years for sum insured of 2 lacs.
              Now finally few months back (after a decision to take charge of my own financial life) i decided I have had enough and surrendered the policy. And got a grand 5.6k from them :)
              No complaints, few lessons learnt. i.e., never confuse insurance with saving or investment.


  17. Rakesh


    Excellent post, cleared some of my doubts. I had very bad experience with iterm and iprotect and canceled them. I have an old LIC term plan, however i would like to add another one too it. I believe you have a term plan with SBI. How is your experience with them. Are you satisfied by their service.
    Please comment.


  18. Amit

    Manish… I tried posting this question on the newly created forum. Not sure what happened but my question did not appear. Hence posted the same thing here. Please move to the right place if you think this might dilute the current thread.

    My question might appear to be Lengthy… sorry if you get bored :)

    Senario 1 : Current Tax System

    Buy a Home. Loan amount 20 Lakh, Tennure 6 years (Co loan or Co Applicant)

    As per the current Tax system i would get tax benefit in 80 c for the principal amount under 80 c Upto 1 lakh and 1.5 Lakh for interest we pay. This works out better both husband and wife togehter are paying the Loan.

    But the disadvantage is, after 6 years all your money is taxable…. If you see this, i feel its better of paying Rent…..

    Is it good idea to buy flat in parents Name :

    Instead of buying falt in our name, buy it in name of parents. pay rent to parents. This will give them steady income. This income would be added to thier pension while declaring the tax at the year End.

    Benefit of this. We are paying Rent to our family members and this will also make them more financially independent.

    What would be the SCENE once DTC is implemented. Assuming DTC would be in force from 2012, where in NO HRA and No deduction in 80C for principal repayment and Many other things that i may not be awar. Please give your suggestion what would be the best approach.



  19. Krishna

    Hi Manish,

    Thank you for nice post. It cleared lot of confusion regarding Term Insurance. For some reason I want to stick to LIC and so I tried to look and compare term insurance with Jeevan Amrit policy.

    LIC’s Amulya Jeevan (term insurance) and Jeevan amrit policy

    If I take Amulya Jeevan (term insurance) for 25 lacs with 30 years cover,I
    pay Rs.10850 as premimum per year. (Overall I pay 30 x 10850 = Rs 3,25,500)

    If I take Jeevan Amrit for 25 lacs with 30 years and 3 yrs premimum
    paying term,I pay Rs.142210 (1st yr), 71655 (2nd yr), 71655 (3rd yr)
    as premimum. (Overall Rs 2,86,620).

    So, if I go for Jeevan amrit, I get my 2.86 lac back plus bonus given by
    company (@30 per 286 = 8580 x 30 = 2.57lac).

    If it is so, why should I throw away money (total 3.25 lacs) in term insurance? Do you have counter argument? Am I missing something?

    Please comment.


    • pattu

      Lets assume someone has enough money to get Jeevan Amrit but instead of that he/she takes amulya jeevan and
      suppose he/she:
      invests in the following way
      142210 -10850 =131360 -> invests @ 8% for 29 years*
      71655-10850=60805 –> invests @8% for 28 years
      71655-10850=60805 –> invests @8% for 27 years

      *(Any instrument @8% )
      calculate using
      you would get more than 22 lakhs!

      I think the conclusions are obvious of which policy to choose are obvious!

    • Krishna

      Leave Pattu reply , as it has a different story to tell and which is correct in its way. I would say your decision of investing in Jeevan Amrit is 100% correct if you can answer only my 1 question

      Question : I am sure your policy SA is not more than 3-4 lacs or say 5-6 lacs what ever . Now suppose you die with in 1-2 yrs . Explain me with steps how your family is going to get monthly income for next 30-40 yrs (till your spouse lives) , How will your children education/marriage will take place as you plan today and how your wife or who ever is dependent on you is going to live comfortably in retirement ?

      I assume you dont have enough assets when I ask this question . If you have 2-3 crores right now, then go ahead with your current setup .

      I am counting on your reply !! please reply


  20. I am a regular reader of http://www.jagoinvestor.com. Your posts are nice and provide ample information of financial products. Thanks for your great work.
    I am an NRI, 32yr old and wanted to buy term insurance during my last visit to India in January 2010. I applied for term insurance from METLIFE, AVIVA, LIC & BIRLA SUNLIFE, each for 50 lac cover for 30 years. My experience with them is as follows:
    1. BIRLA SUNLIFE : The agent took all documents and application form signed by me. However after 7 days returned the documents back to me.
    2. METLIFE : They accepted all documents. Arranged for medical. After medical was done, after 7 days another medical was called for since agent had missed some tests. After 20 days, again they asked for blood & urine tests for tobacco user (I am not tobacco user and had declared it). In all 3 tests, medical was OK (alongwith treadmill test, which is most rigorous). After that I followed up with them for 3.5 months. Then he finally told that he cannot give term insurance to NRI. Instead he offered me some ULIPs which I didnt want to buy and company returned premium.
    3. AVIVA : They accepted all documents. Arranged for medical. Medical was OK. However after 1.5 months they came back with additional premium requirement. I asked reason for additional premium consent, which they failed to give satisfactorily. Hence I told them that I will not go accept additional premium. They finally returned the premium paid.
    4. LIC : They accepted all documents. Arranged for medical at APOLLO Hospital. Medical was OK. However after rigorous follow up for 5 months, they came back with additional premium requirement. I asked reason for additional premium consent, which they failed to give. However agent told me its probably because of overweight physique. However generally NRI staying in gulf countries and having good position, living conditions and hygiene is likely to be overweight in 90-95% cases (except those with genetically lean physical characteristics). Hence I told them that I will not go accept additional premium. They are yet to return the premium paid.
    Now I feel, its better to build your own insurance through investments rather than depending on any insurance company. Its easy, liquid and easily accessible for nominee.

    • Kailas

      Thanks for the feedback on your experience , I feel regarding the overweight issue given by you makes sense , but what LIC has to do with it ? They will not accept your explaination :) .

      Also if you can build your own corpus after which you dont require Insurance its great , but what if something happens to you in between ? Insurance is for that tenure only where you are busy building your Corpus After which you can discard your Insurance :)


  21. Harish

    A quick question

    Manish – I already have term insurnace policy from LIC taken 2.5 years back, can I now increase the sum insured amount for the same policy?


  22. S71814

    hey manish, Kudos to you, keep up the good work…I find your blog very interesting and always recommend it to my friends (in case they are confused about anything to do with personal financial planning)

    I always had this question in my mind about term insurance policies offered by Insurance companies : “What kind of deaths are covered in the policy?”
    Your article does clear few things, but is there a comprehensive list? It must surely be somewhere on insurance companies websites. Have you come across any such links? Can you point me in the right direction?


    • S71814 (Because of this weird name , the comment goes to spam , so better change it next time)

      Rather than having a list of “what is covered” , companies have list of “what is not covered” and that list is there in the policy brochure . Rest all is covered


  23. Vinay Sarda

    Manish , Is Death due to Terrorism is covered under SBI Sheild Term Plan, also I had taken Accidental Death Benefit Rider. Will Terrorism Death covered under Additional Death Benefit rider?
    I think so it might be covered coz I had asked the same in Customer Care Centre of SBI Life.
    Still Want to confirm that with you regarding this matter?

  24. Manish

    Hi Manish,
    I just have 1 query that when wee do not get claim from 2 companies in case we have 2 Term policies, what is the point in buying to policies

    • Manish

      Its just diversifying the risk of rejection from insurance companies and more than that if in future if you want to reduce your premium from 1 crore to say 60 lacs , how do you do that with 1 term plan (you have to cancel it and then take a new one which means you pay as per your new age which is costly) ? With 2 term plan you can just stop one of them .


      • prabeesh


        I saw somewhere saying if one company pays the other company should also pay the SA. Is that valid? so if i take LIC as one of policy who has high claim ratio will that make other companys to pay as well?

        • Prabeesh

          Thats mostly true .. Its like one company accepts the claim , what does it mean ? It means that you are authentic to claim without any issues..

          But it might happen that you have not provided all detials to other insurer and have suppressed the facts , then obviously the other company will not pay . At the ends its all about “Dont mess up with company in giving the material facts” , dont count on other company to confirm the payment so that the first one also pays .


  25. vijaya

    Hi Manish,

    Excellent article, I am NRI and have taken LIC policies when we were on vacation. Does this insurance policy cover us when we are abroad. The address mentioned in my policies are my parents address. If not, what should i do so? Appreciate your advice.

  26. Anand

    Hi Manish, Nice article. Can you also touch upon the factors (other than diabetic ) based upon which the insurance company comes back with a request for increased premium?

  27. Manish I don’t think this point is right.

    5. What if a person becomes a smoker after some years of taking the policies ?

    It’s not necessary to share this detail – as on the date of contract I was not doing it.

            • Dhawal Sharma

              @Manish – It is to be notified to the company if you develop any SMOKING or DRINKING habit after sometime the policy is issued..Because company seperate RISK POOLs, one for NON-SMOKERs and another for SMOKERs (That is why you must have noted that premium amount is less for non-smokers)..So once an individual (In this case, policyholder) move from one RISK POOL to another, he has to inform the company..Company, at that time, at its discreetion may continue the policy at the same premium or may charge some LOADING (Extra premium) to continue with the policy..

                • pattu

                  I also agree with Hemant.
                  The policy document does not require this of an individual.

                  If its mentioned in the document then fine.

                  The same is the case with obesity. Take some who is 27 (Manis’s age :)) his BMI maybe normal. As his lifestyle becomes sedentary he maybe become obese get to have few drinks, do drugs! Its not just smoking :)
                  Please provide some material on this

                    • Dhawal Sharma

                      Let me be precise this time..Whatever points i am forwarding is on the basis of my experience, knowledge, and interaction with higher authorities at KOTAK LIFE INSURANCE..May be i am generalizing Kotak life insurance things to life insurance at large…If Hemant & Pattu can tell me to which company they are affiliated, i can check with their respective companies representatives as well…but this is what we usually do or advocate our clients of KOTAK LIFE INSURANCE..

                      To me, it absolutely make sense (SPECIALLY because such provisions are clearly marked in the proposal form – for smoking/drinking/narcotics) that once a person moves from one RISK POOL to another RISK POOL, he is bound to be charged different premium than what he is being charged currently..

                      Other changes, like life style occurances like obesity are not seperately marked in the form, so i dont ask my clients to be updated with the company for…

                      Moreover, these are things which might hamper the speedy claim settlement [Here, I am not saying claim will not be settled 😉 ]..Otherwise, things will linger on and the claim which would have been settled in 15 days will take 1 to 2 months..

                      if going by the logic of HEMANT & PATTU, the policyholder can expose himself to all types of risk once the policy is issued (There are seperate columns in the proposal form asking the prospective clients that whether there working condition is hazardous or not liking working in coal mines etc.- whether they indulge in any advantour activities like SCUBA DIVING etc) willingly knowing that their families will get substantial amount if something untoward happens…Company is at a loss in these types of scenario..and that is why, it is important for companies to be in know of the policyholder’s updated status like he is SMOKER from NONSMOKER or vice-versa….what say HEMANT & PATTU???

                    • pattu


                      Your logic is perfect and I fully agree. I am talking about a legal issue:

                      If a company does not explicitly state in the proposal form or policy document (I think LIC does not and you say Kotak does) then a client is not legally bound to intimate lifestyle changes from scuba diving to smoking. Any claim rejected on this basis can be contested by the nominee.
                      If the form/documents expects this then there is no issue it has to be done.

                    • nixon

                      Dhaval, i disagree. Smoking, drug, drinking whatever crap done after taking policy, need not be mentioned to the company. The insurer cannot reject the claim. Infact no insurer can reject claim if 2 years have passed since the policy was taken. of course under exceptional causes like fooling the company inorder to obtain money etc, they can reject the claim

  28. Sampath Venkatesh

    I am 32, male, healthy person, non smoker, i tried to take the online term policy for 25 Lacs from both aegon and iciciprulife, not issued the policy without telling any reason. I think they expect the income above Rs.2 Lacks per annum. my income is Rs.1.6 lacks per annum.

  29. Mohit

    i have taken the term plan from aegon religare. and i aleready have health insurance and accidental insurance from hdfc ergo. should i tell this to AEGON Religare or not. if yes then shall i call them and tell.

  30. pattu

    Reading the comments I get a feeling that if one has riders with term policy then since Sum assured upon death is much higher investigation is also expected to deeper and longer.

    I get a feeling its best to have separate term, CI, accident policies. ICICI has some good CI policies but not sure claim ration etc.

    • Pattu

      Just because the pay out becomes more .. the claim will become difficult , I am not sure on that .. May be its true .. but if thats the case , it would be very bad thing .

      Do you think its the case with LIC also ?


      • pattu

        I think its the same with everyone. If you notice term policies of LIC don’t come with Riders. I think some endowment and some ulips do.

        Wrt riders their exclusions are separate from the main policy. So to give double or triple benefit, I would expect companies to dig deeper.

  31. Rahul

    Hello Manish,

    Thanks for this beautiful site. It has lot of details which are really very useful. I have a a few questions:- I was buying the aeon religare policy online it was asking me if I had smoked for the last 5 years or not. Yes I have actually at time just one cigaratte a day for some months and then i stopped completely. Should I fill this up as smoker category. Other thing which I would like to ask is does aeon religare have a medical test after I take the policy and can they increase the premium after the test as is the case with LIC.

    Looking forward for a reply from your side.

    Rahul Goel

    • Rahul

      Yes, you should mention to them about the smoking , the idea is to be 100% honest , else the rejection of claim can happen later . Also your premium can increase on medical test, but if you are healthy and have no reason that premium should not be increased, then it will not


  32. Pallavi S

    Manish, Dhawal,
    U guys do a great job indeed…and I truly appreciate the consistency in your posts and the variety of issues addressed. Keep up the good work… Additionally, I am amazed by the comments (both quality and their rate) you get on every blog post. Glad to see, so many people follow it religiously. Again, keep up the good work.
    I have read almost all term assurance related blog posts you have put up. Especially after reading your http://www.jagoinvestor.com/2010/08/review-of-iprotect-term-plan-from-icici-prudential.html, I’ve completely made my mind to
    – Buy Term Assurance
    – Buy from 2 vendors (public + private – mostly I am sticking with LIC Amulya Jeevan + iProtect as of now)
    – Buy preferably offline.
    Now, after being a silent reader all this while, and the apt timing this blog post has come, I have few doubts/queries too.
    – When you say Term Insurance covers Accidental Death – what is the need of additional riders? Is pure term not enuf?
    – In buying online, hopefully same sanctity is maintained as buying through some agent. While settling claims, we can at least blame it onto the agent, if there are any discrepancies. What are your views?
    – Is the smoking/non-smoking criteria a major cause for claims-rejection in general? I read the comment from Manager at Aegon Religare in one of your earlier posts. In that case, might as well be on safer side and pay-in for being smoker.
    – Is there any consolidated site (like IRDA) where we can see the diff claim-rejection reasons?
    More later

    • Pallavi

      Thanks for your appreciation . Let me answer your doubts

      1) The only need is to get additional cover for accidental death , generally with offline term insurance we have accidental rider which also include cover for permanent/temorary disablement along with extra cover on accidental death , but iProtect accidental rider only gives extra money in accidental death . given that accidetal death is highly probable way of death , taking accidental cover gives us that extra amount at little cost .

      2) No , you should never blame an agent , why should be blamed if he does not fill something in form , it should be us who are not bothered to double check and take responsibility , understand that agent is only a medium to perform the transaction , thats all .. he is not the responsible person for claims etc , its between company and you , agents are just facilitators .

      3) No , the only major criteria is authenticity in information , its not about smoking/non-smoking, its just an example , just because people are not able to accept that they should pay more because they puff , makes their families life hell once he is gone . wheather you smoke or not , if you pay premium which company deserves to take from you , there is no issues.

      4) I am not any site like that .. You have to rely on different sources for this , check http://www.consumercomplaints.in/


  33. Anand

    In the same way we could go to mutual fund AMC to avoid the entry load once upon a time, can we go directly to LIC, avoiding the agent costs?

    Will LIC (or any other company) entertain such requests?

  34. Abhi

    I was just informed by an LIC insurance agent that I need to pay 50% additional premium as a smoker for a term insurance policy that I am planning to take. Is this true? Is it mentioned anywhere in their website?

    • Abhi

      Yes , its true .. If you are a smoker , you are in a different risk pool zone than a non-smoker , this might discourage you to take term plan, but dont get stopped by this . Its fare for them to charge you more .


      • Abhi

        Hi Manish,

        Thanks for the clarification and I will go for it for sure. So I just don’t pay for the smoke do I? I pay much more for my smoking habit. May be I will quit :)

        I probably should have said this first but I guess its never too late. This is an excellent blog. You give me a platform that sets me up to make my financial decisions. Keep up the great work.


          • Abhi

            Just to add, the agent clarified that I would initially need to pay only the standard premium amount (as what comes up in the premium calculator on the LIC website) and once my application is submitted to LIC along with my medical tests results, LIC would then let me know what is the extra premium I need to pay as a smoker based on my medical report. The maximum that LIC will charge is 50% over and above the original premium. This information is as per the LIC agent.

            • pattu


              The same happend with me. LIC charged me Rs. 500o being a hypertensive. I initially paid the premium as per website calculator and was then informed of the extra amt.

                • Abhi

                  I guess its fine because LIC does give the option of pulling out of the policy and the original premium amount will be returned to you if you are not satisfied with the additional premium charged by them.

                  Note: Again, this is as per the LIC agent

  35. Jig

    Hi Manish,
    New ULIP are available with 20 times ( Appx ) SA of premium. Is that true?
    In such case
    1. Do we need to inform to company when buying ULIP about our term plans?
    2. Do we need to inform company when buying Term plan about our ULIP?

    Expecting soon your comparison for ULIP ,MF & Term plans..

    Keep sharing..


  36. yogesh

    Hi Manish,

    Will the premium be more in case of NRI’s (those who are not in pakistan,somaliya) ?

    Medical test expenses are taken care by insurance company or by individual ?


    • In case of NRI’s, the charges of medical tests (in foreign country) will be bear by NRI in the beginning. If the insurance accepts your application for insurance, the charges (upto certain limit) will be refunded back to customer, after the issuance of policy.

      Hope it will help you.

  37. yogesh

    Some information to share with all which I received from ICICI Pru life

    However all the medical expenses towards the issuance of possible will bear by the company. Further, if the medical reports available with you are within 6 months old then the same reports will be considered towards the issuance of I protect policy.

    I protect policy can be taken through online by visiting our site http://www.iciciprulife.com and the entire process of policy issuance will be dependent on medical or non medical case however approximately it takes 6 working days.

  38. Abhi

    Hi Manish,

    I am in the process of completing the formalities of the term insurance policy from LIC. I expect the premium to be 12K per year. I am thinking of starting a recurring deposit of 1K for 12 months to facilitate the premium payment per year. Do you think its a good idea? Any other suggestions?


    • Abhi

      It might make sense in some way , as it would not put much pressure on pocket and also create that premium for you , however if you have your investments in mutual funds already , I would suggest starting an additional SIP in mutual funds and at the time of paying the premium, you should redeem units worth 12k . That would be a more rewarding option from my viewpoint


  39. herge

    many people on the web recommend taking more than one term policy to reduce risk of claim rejection. Are there any statistics to prove this?

  40. amol


    in case of an NRI…we do not have ITR OR form-16 since living here for last 2 years. What can be done in this case? Does paystub/income tax return from abroad country(US) will work in this case ?

    Can you or Dhawal Sharma please advice on this point

    • Amol

      For NRI’s who are hardcover outsiders , no base in India , no address proof , no ITR , it would be very tough for them to get high amount term insurance , they might be eligible for a small amount .


      • amol

        I was planning to go for 25lacs Term insurance(Amulya Jeevan) from LIC and remaining 25 lacs from SBI or Kotak.
        as you said, it might be tough.
        Let’s see how it goes as I will be in India for vacation.
        by any chance are you available to meet in Pune. Will be happy to attend any readers meet in Pune(if there is one in Nov)

            • Jig

              Kotak is a company can provide you information even while you are staying out of country. I prefer as i experienced. remaining about services, i will come to know once i ll be there.
              Keep ready these documents.
              1.Indian Address proof
              2. Overseas address proof
              3. Identity proof
              4. last 3 months salary slip.
              5. PAN card.
              6. latest passport photograph

              If you have any query , mail to anona.dalmeida@kotak.com who is an NRI Relationship Officer at Kotak.

              FYI I am not any agent/broker/RO. just like you, a reader of this forum and a fan of Manish.

  41. Tarun Maheshwari

    Hi Guys,
    Just wanted to add one more point that while deciding on the Company to take the Term Insurance Plan, one should also take into consideration settlement rate of a particular company. I was going through one of the site, wherein the IRDA Annual Report of the Settlement Rate for the year 2008-2009 for several companies was put up. I will summarize:
    Rank Company No. of claims(CL) CL Paid CL Rejected CL Pending
    1 LIC 591097 95% 1% 2%
    2 MaxNYL 3938 90% 8% 2%
    3 Birla SunLife 2757 89% 10% 1%
    4 HDFC Std 2898 88% 5% 7%
    5 Bajaj Allianz 12011 87% 8% 4%
    6 Reliance Life 3701 87% 6% 8%
    7 ICICI Pru 10753 87% 5% 8%

    Hope this information help you guys to decide better on which company to choose for purchasing the policy.

  42. Seena J

    Manish bhaiya , thankz for clearin my doubt 85 %
    i have some doubt 2. I have a lic amulya jivan 25 lak 35 yr. I am aged 25 year old. If i take a policy frm lic anmol jivan again for 20 lak 25 yr can i claim on both.

    2)if i take sbi policy also wil i get 3 claims or one claim frm any 1 of them.

    • Seena

      Yes , you can claim all your life insurance policies , so if you have 3 policies of 10 lacs, 20 lacs and 25 lacs from different or same insurer , then you get all 3 claims = 55 lacs

  43. yogesh

    Hi Manish,

    Q1. IS the ranking of ICICI pru life considered good or not ?It comes in 7th number so its good or not ?
    7 ICICI Pru 10753 87% 5% 8%

    Q2.How the claim settlement is done if policy is purchased online ?Is the
    process same as in non-online policy cases ?


    • Yogesh

      What ranking is it ? Is it only for the current year ? You should not concentrate too much on this , I mean 7th , 6th ,5th are all same almost . But not same as 1st or 2nd .


  44. Jig

    Hello Manish,
    I must say you are now becoming the rode model just like an Amir who changed many parents mind set towards their children education, you have capabilities to change many ppl mind set towards financial decisions, life insurance need and planning. hates of to you and wish your educational blogs will be continued for years n years.
    Well many people while approaching the private companies for insurance, the first thing in their mind may be What is the claim rejection ratio of the company. For this and continous improvement , Cant we bring companies employee/officer over this site and just ask them to give those details, by filling which, the claim rejection will become alsmot zero.


    You have mentioned Dhawal is here from KOTAK Insurance company guy( or Agent). If he comes with Company proposal form for Preffered Term plan with the Clause No. If those clause will be filled correctly and true by people, their claim will be never rejected in future.
    This way people also get confidence in private companies and companies will get reputation by decreasing its year after year rejection ratio.

    Keep sharing is my intention here.

    wish you keep sharing knowledge here


  45. vinay

    Hi Manish,

    I bought new Term insurance. I read in this blog that I need not to inform about this new policy to old insurers. But my finacial advisor told me that there are claim rejection based on criteria that new insurance was not informed!!! First I don’t see any where in policy document about informing of future insurance. Second do not find procedure/form available to inform about this. Still there is on loophole which I feel might be. In this block it is mentioned that if you go SMOKER from NON-SMOKER then you need to inform to insurance company. Similarly if you get medical problem in future then you need to inform to insurance company. Nothing this type usually has been mentioned in policy document but assumption is based on information asked in proposal form which is changed in future and so need to be informed to the insurer. My question is that same logic will not be apply to inform insurer about new policy someone takes in future? If you need to declare past policies then is it not mendetory to inform about policies one buy in future as this information has been asked in proposal form?


    • Vinay

      Where did you read on this blog that you dont have to inform your new insurer about the old policy ? You have to .

      Its the other way round that you dont have to inform your old insurer about the new policy .

      Also declaration to company about your health depends from company to company , go through the comments section and read Pattu’s and dhawal comments


      • vinay

        Manish thanks. I understand that for new policy
        (proposal) one need to inform about all old policies. I worte in my previous comments ” I read in this blog that I need not to inform about this new policy to old insurers.” As you also mentioned above there is no need to inform about new policy to old insurers which make sense and I have queries about it. There are still concerns as flag has been raised by my finacial advisor(rejection of claims based on this). Also I feel there might be loophole as same criteria might be applicable to this as well which is applicable for medical and smoking case (Based on Dhaval and Pattu’s comments that even it is not mentioned in policy document but there is need to inform about change of propsal form information in future ). I believe if you read once again my previous comments then will get more better understanding about my query.

        Also I got information that for higher claims (> 25L) usually insurence claims is setteled by re-insurer (All insurence companies cover higher policies with another insurers which I heart might be giant like LIC and usually all Indian insurence companies goes to same re-insurer). This re-insurer will analyze all the old policies during claim settlement. During this time they try to put that old insures are not being informed about new (future) policies. My advisor asked same to LIC manager and his response was ” Bataya hota to achha hota”


          • Dhawal Sharma

            @ MANISH – This thread is like HANUMAN JI KI POONCH, going on and on 😉

            @VINAY – Its only with new policy that you have to disclose that you already have a policy running with theh same company or with some other company (There is a column for this information in every company’s proposal form)..

            Now let me give you an example..If Mr X has taken 3 policies (all three term insurance), 1st from LIC for 35 lakhs in 2001, 2nd from KOTAK for 30 lakhs in 2004, and 3rd one from BAJAJ for 25 lakhs in 3006..Mr X is required to disclose LIC policy in the proposal form of KOTAK, and both LIC & KOTAK policy in BAJAJ proposasl form..Because if, God forbids, Mr X dies due to any illness or accident, his nominee has to produce ORIGINAL DEATH CERTIFICATE to the FIRST COMPANY, in this case LIC (And the troublesome part is the MCD or any other authority issues ONLY ONE DEATH CERTIFICATE, unlike birth certificate which can be have in any number)..LIC in turn will give them an acknowledgement that they have taken custody of DEATH CERTIFICATE and other relevent documents and same acknowledgement will be held valid for claim processing by both KOTAK as well as BAJAJ only if the disclosure had been made in the proposal forms of KOTAK and BAJAJ..This will help in easy settlement of claim..LIC (or the FIRST COMPANY) need not to have the information about insurance policies taken afterwards..

            Disclosure of CHANGE IN HABITs like NON-SMOKER to SMOKER has different connotations..Because if a NON-SMOKER becomes SMOKER, the policyholders moves to a different RISK POOL and hence company’s risk on him change as well..That is why it is neccessary to disclose change in habits or work profile (non-risky to RISKY) has to be disclosed to the insurance companies at any time such changes take place and not at the time of proposal..

            another interesting point which you have raised is RE-INSURANCE..Re-insurance is a standard procedure wherein every insurance company get its liability insured by prominent RE-INSURANCE companies like MUNICH RE or SWISS RE so that in case of large number of claims, it can meet its obligations [And it has nothing to do with the claim of <= 25 lakhs :-) ]..Its like HDFC STANDARD LIFE, suppose it has done a business of Rs 1400 crore and insured lives worth Rs 5000 crore, it will get this Rs 5000 crore insured with RE-INSURANCE company (And its not LIC who does this RE-INSURANCE because whatever you think of it, LIC is not such a giant to do RE-INSURANCE) Even LIC gets its business RE-INSURED..Please click on the below link to read and know about RE-INSURANCE companies


            why this is done?? because if some major event happens, say like WORLD TRADE CENTER attack or TSUNAMI in TAMIL NADU VILLAGE, where thousands of lives lost, suddenly the insurance company is face with a position to settle claims worth CRORES of rupees which it cannot take out from its capital structure in a short span..This thing happend with NEWYORK LIFE when it was required to settle claims for its policyholders in WORLD TRADE CENTER attack (75% of the people who died in that attack were NEWYORK LIFE clients) and NEWYORK LIFE was able to meet its obligation after taking claims from SWISS RE..

            This re-insurance has nothing to do with old claims or something like that..

            • pattu

              Informative post Dhawalji, Thanks.

              “troublesome part is the MCD or any other authority issues ONLY ONE DEATH CERTIFICATE, unlike birth certificate which can be have in any number).”

              1. Most companies require only attested copies of death certificate. If your corporation gives only one then you need not give it up to any one including LIC. Kotak seems to prefer originals but does accept attested copies

              After all if there are some property issues or pension stoppage issues you may still need original deatyh certificate. So dont be in a hurry to give to the insurer. Maybe difficult if not impossible to get it back!

              2. Chennai corporation has automatic online death certificate issue. I get a pdf file of the certificate and I can print as many as I want. Hopefully this should be true of big cities. Smaller cities will be a problem of course.

            • vinay

              Thanks Dhawal and Pattu for providing useful and deep information. I spoke to LIC and ICICI advisors and they said these compnies do not require new (future) policy details.


  46. dhawal sharma

    Just an out of context thing, but i believe might be of some use to many regarding the trust and kind of work done by kotak which resulted in 204% profit..Please check the link below…

    • pattu

      “Kotak Life Insurance’s net profit increased to Rs 13.4 crore from Rs 4.4 crore. Mr G. Murlidhar, Chief Operating Officer, Kotak Life, said growth in new business premium along with stable expenditure helped the company register profits. “Our costs have always been under control as we have not been expanding much,” he said.”

      I fail to see how the above will improve trust in Kotak as an insurance buyer. If I had shares of kotak then I will feel happy.

    • Dhawal

      I have same question as Pattu, I dont question it , but i am trying to understand how strongly the profit growth with the trust , i think it should be linked with the claim ratio etc ..

      Also the growth of 204% might be because the numbers are small for it right now .. So its higher when the company is small in some area , I am sure when Kotak Life Insurance business is as big as ICICI or HDFC or LIC , the growth of 204% will not be sustainable.

      Your thoughts ?


      • dhawal sharma

        @Pattu/Manish – As the statement put forward by COO, “GROWTH IN NEW PREMIUM BUSINESS” means lot many people have been associated with the company compared to previous year, probably the first timers with the Kotak..They will be the real ones to tell the reason why/how/what is the source of trust for them to move to/select KOTAK life insurance..But if over 204% increase in new clientage is there, means Kotak is doing absolutely brillliantly with regards to Client service and claim settlement etc. and this thing is more evident in our insurance sector when such things spread through WORD-OF-MOUTH, means already existing clients telling good things/good experience of theirs to public at large and that in return resulting in such robust growth..

        How come ICICI & HDFC are big if they are still in RED, not able to show profit..Its not to belittle them, but just the last year’s annual report of IRDA, there were only 4 companies in profit – LIC/METLIFE/KOTAK/SRIRAM LIFE…ICICI and HDFC have never posted profit means they are incurring LOSSES only since inception but its the metter of perception that you count them as BIG COMPANIES..Moreover, the real business generator for ICICI and HDFC are their banccassurnce channel, where they sell policies to their a/c holders and not that their agents are doing something extrordinary..

        LIC has earned profit cuz it was SOLE player in insurance sector for nearly 4 decades and now has such a MONSTROUS client base that without being innovative or client-centric, it can still earn profits for next 4 decades..So comparison with LIC is out of question..

        And as i said in the begaining of this post, this is just out of context thing..Its upto each one of us to interpret the statement..for me, that statment of 204% growth means more and more people are opting for kotak because of better client services and claim settlement..

        • Dhawal

          Thanks for clarification , still for me 204% means excellent growth in % terms , and not in numbers .. what I said in start still holds true , that because of size , the growth is huge in % terms , but once it grows very big that kind of yearly growth is not possible, i believe you are with me on this point :)


        • Hi Dhawal ji,
          Isn’t the grapevine ripe with rumors that after the abolition of entry load in MF’s lot of agents have shifted client’s money into insurance schemes ?
          So, could this increase be result of that ? Is there any break up of number on where this increase came from ? i mean what kind of insurance ?


          • dhawal sharma

            @Raja – Your comment makes this business sound so easy..But believe you me, its not that easy at all..Agent cannot shift client’s money by his choice..He has to get the forms signed and cheque obtained in favor of insurance company (Be it Kotak, LIC, or any XYZ)..Now that after new guidelines of IRDA, even ULIPs are fetching commission of 6%..That means, agents will now shift their client’s money to some other lucerative aveneu…No sir, this is not how the financial sector works…

            As far as this YOY (Year-On-Year) comparison is concerned, this kind of growth was always there, although not this 204% kind, even when entry load was there in MF..So this has nothing to do with entry load or absence of it…

            The only data which has been shared with us people of late is that there is decline in ULIP sales and increase in traditional products..With some authenticity, i can say the maximum sold product now a days is CHILD PLAN..so you can safely say that most of the new business is generted by CHILD PLAN & that too traditional..

            • Dhawal

              Yes , I also think after decrease in ULIP mania , the new mania is traditional products with “child plan” banner :)

              I think Raja’s comment on “client money transfer in other products” was not literally meant by him , he meant that agents were able to fool them by their words and convinced them to transfer the money .


              • Yup, that was really understood in the question that, of course one has to take clients signature on cheque/forms etc etc… And i didn’t understand what is this ‘child plan & that too traditional’ thing ?? Is it a investment product or an insurance product ?
                If it’s an insurance product, when did child started needing a insurance product ?
                More informtion on this surely welcome.. may be in a different post.


                • Raja

                  Here, Child plans means LIC policies which are designed for Children like Jeevan Anurag , Komal Jeevan etc and other ULIP products with tag “Child Plans for their education”


        • pattu

          More business –> obvious in profits & got that from earlier comment
          Better service –> Not hard to believe. Only hope it lasts
          Better claim settlement –> Proof required. I will wait for IRDA’s annual report!

  47. Deepak

    Huge thanks Dhawal. it’s really relaxing me now after a month of investigation on term insurance. Here i found all most all doubts clear. Hope now i can make a better decision on buying term plan. thanks again.

      • Deepak

        Hey Manish,
        i couldn’t stay back conveying my gratitude to you. i have just gone thru the whole blog and I can say you people are social worker. Making this crucial piece of insurance awareness is more than any social help. I m pretty sure 90% of the reader must be getting benefited after going thru this blog. This is really a excellent chain of information.

        i have few more queries here for you:
        1) i want to take SA of 1 crore. So as per the blog i should split 50-50 among 2 insurer. Now i am thinking of Aegon iterm & Icici iProtect. Is this sounds good to you?
        2) i am a occasional smoker i.e. once in 2 months like that. Am i come under Smoker/Non-Smoker group?
        3) i want more detail explanation on Permanent/Temporary Disability rider.
        4) If i want to go for Permanent/Temporary Disability rider then is it suggested to get this rider added to my term insurance. If yes, which plan offers this and is it suggested? And if no, then how & which Permanent/Temporary Disability rider i should buy?

        Thanks in Advance

        • Deepak

          1) Its a general suggestion , but you can take just frmo one company . your decision

          2) Smoker

          3) This is a rider which pays you money in installments when you become permanent or temporary disabled ,the definition of what is what is temporary and permanent disabled is given by insurer .

          4) not all compaines offer it , iTerm and iProtect do not offer it .. Search for them on apnainsurance.com . how much to take is on you , we cant decide that


  48. Siva

    Hi Manish,

    As usual nice post. I have a question.

    A year back I have taken Birla Dream Plan and at that I haven’t disclosed my previous LIC Policy Details as the agent told me its not required (Marketing).

    After reading your article I am fearing that our claim can be rejected to my family members due to this fact.

    What should I do now ? Will it cause any issue going forward ?

    Please clarify.

    • Siva

      Definately , Its simply a case of hiding of facts , in the form its clearly given a place where you have to mention your old policy , which you didnt give , note that when insurance company does underwriting (calculate your premium) , its an important factor to consider how much cover you already have before taking a policy through them , Your claim will be rejected on this ground with very very high probability , So better disclose this fact now and accept incase they increase some premium , or better close the policy and take it again now but incase its very old policy , the premiums will be applicable for new age which might be high :) … Enjoy


  49. Deepak

    Not sure if anyone is looking into the query post last before, so posting again here. Sorry if breaks any chain.

    Hey Manish,
    i couldn’t stay back conveying my gratitude to you. i have just gone thru the whole blog and I can say you people are social worker. Making this crucial piece of insurance awareness is more than any social help. I m pretty sure 90% of the reader must be getting benefited after going thru this blog. This is really a excellent chain of information.

    i have few more queries here for you:
    1) i want to take SA of 1 crore. So as per the blog i should split 50-50 among 2 insurer. Now i am thinking of Aegon iterm & Icici iProtect. Is this sounds good to you?
    2) i am a occasional smoker i.e. once in 2 months like that. Am i come under Smoker/Non-Smoker group?
    3) i want more detail explanation on Permanent/Temporary Disability rider.
    4) If i want to go for Permanent/Temporary Disability rider then is it suggested to get this rider added to my term insurance. If yes, which plan offers this and is it suggested? And if no, then how & which Permanent/Temporary Disability rider i should buy?

    Thanks in Advance

  50. sumit

    I don’t think that the premium of a life term policy should be increased, in case if a person develop some disease ( since not directly under his control like the habits of smoking/drinking) post receiving a life term policy.

    After all the person is paying the premium to cover such sort of risks in future. And the premium is more due to this fact for higher age group only.

    However, if the premium is revised in case of disease developed later, is it true for policy from all life insurer including icici pru iprotect, kotak? Is this fact mentioned in some document like policy brochure/proposal form etc..?

  51. sumit

    Thanks Manish for your reply.
    I am also looking for life term policy for 30 years for 50 lac basic sum assured. My current age is 35.
    I want to have a term policy where, if I fill in all the answers correcly as on date of application, there should not be any dependency of premium review in future/ issue during claim settlement (if need arises)) due to my changed health conditions etc…in future ( of course barring smoking/drinking habits which is directly in my control).
    1.Could you please suggest some term plans from all available good life insurer today to choose the best economical/ customer convenient?
    2. What are the role of IRDA in case, if some company become finalncially down and closes his business? Will the customer benefits be protected in that case?

    Thanks & regards

    • Sumit

      1) I think mostly all except Kotak are the option , go for LIC if you are that much concerned .

      2) No , there is no insurance like that , however it wont happen the way you are saying , in all probability if a company goes down , it would be merged//acquired by other company .


  52. sumit

    There are some company like policybazar who provides assistance for term policy purchase. For online policy specially like iprotect where so many severe negative feedbacks provided on internet, Is there any harm in booking policy with help pf policybazar?
    During my interaction, they(policybazar) said that they followup during form fillup, medical etc..till the policyholder gets their policy. They also said that they do not get any brokerage on the polcy from the insurer company, but still trying to convince me and offer their service to puchase the policy of my liking? Is there any catch in taking the service from these type of companies?

    • Sumit

      its not commission , but they might be getting fees for providing your details , its called “Lead” . When you leave your mobile and email at some site like theirs , they provide that data to insurance companies and then insurance companies contact you . they might be getting per-lead fees . Most of those companies get their business like this , other wise its not possible to sustain , They are bound to get something out of the whole thing for sure . However It does not mean that you cant buy through them . You can go ahead if your cost is same . It might be helpful


  53. Deepthi Nambiar


    We have a term insurance plan from Birla…Birla sunlife dream plan and we had taken this plan one half years back. In the policy document they have mentioned that in case of insurer death, the company will pay the enhanced sum assured + the policy value. We are paying 2400 per month for 50 lac life cover. I am concerned because they have mentioned the life cover amount as Enhanced Sum Assured. Please tell me is this enhanced sum assured is same as the death cover.

    • Deepthi

      First point is that its not a “Term Insurance Plan” ! . Its a ULIP .

      Its a ULIP , in which you choose Basic Sum assured at the time of taking the policy , apart from this , you can also increase your cover by adding Enhanced Sum Assured if you need more life inurance. So now if your basic sum assured is 10 lacs and your enhanced sum assured is 5 lacs, Incase of your death you will get total 15 lacs . So yes , if you die , you get the whole 15 lacs.


  54. binod mahanta

    Dear Sir

    I want to know some information

    1. If a person is smoking or drinking Occasionally,say drink 1 or twice a month and smoke 5-6 cigarate a month.can he take term insurance as it is non-smoker policy, and if he has a term ploicy already does he has to inform it to insurance company ?

    2. if a person drunk in a party and died in an accident,Will his familly face problem during sattlement ?

    3. What should be the alternative of term insurance of person who smokes ?

    • Binod

      1) Term Insurance can be taken by smoker and non-smoker both , for smoker the premium will be higher . If he has term insurance already he does not have to inform the company , assuming he was not the smoker at the time of taking the policy.

      2) Yes, the claim will be rejected if at the time of taking the policy he didnt tell company that he is a drinker, but if he has told already , then its not the issue .

      3) You can take any insurance , just that the premium will be higher .


  55. Kuntal

    Hello Manish,
    Thank you so much for this excellent blog.
    I have a question regarding “informing new insurer about old insurer”. Does it include Group Term Life (GTL) insurance from employer?
    For example, I already have a GTL coverage. Now I am planning to buy new term Life insurance from SBI Life. Do I have to inform SBI Life about the GTL?
    Thanks in advance.

  56. Vikram

    Hi Manish,

    I had HDFC term insurance which I terminated recently , as it was covering lesser amount as compared to ICICI and Religare ( who offer insurance online ) .

    I wanted to know about claim repudiation ration from ICICI and Religare, HDFC person saying me that it is lesser with these 2 companies.

    can you please clarify on this?


  57. Sukhanya

    Manish i have a small doubt.
    If I buy a term insurance for tenure 30yrs & if something happens to me before the term, my family will get the sum assured. Right?
    If I live even after 30yrs tenure & if something happens to me after 30yrs, will my family not get any amount? pls clarify.


    In my family there are six members
    (1) Father-age 59
    (2)MOM-age 55
    (3)Brother-age 37
    (4)Brothers Wife-age 32
    (5)Broother son-age 5
    (4)Me-Age 34
    and I am looking for a policy where I have to pay a Only one premium for TERM-Insurance for them and Medical Insurance Floater Policy

  59. Gopal

    I would like 2 know if a 26yr old student who dont have income proof can but a term plan. I am interested in buying online term plan for about 25-30 lakhs sum assured for 30 yr period. Since currently i dont have any proof will i be able to buy such policy??

  60. Aman

    Hi Manish,

    I want to know in term plan, what will happend if policy holder and nominee both die.

    How other family member get money.


  61. Manish

    Hi Manish
    Its a really nice & informative article.
    Just a quick query:
    I have taken a home loan of 17 lakh for 20 yrs from Axis.Should I insure it also?I’m getting a deal of single premium of approx 30k from Max (i.e 1500 per year) for insuring the loan. Or should I take a separate term insurance from any pvt player?
    Also whether they cover interest portion of loan also? For eg
    Loan Amount = 17 lac ,Int @8.75% p.a.=19 lac . Total 36 lac(Emi of approx 15000). But the insurance is of 17 lac only,so will the int. need to be paid back to the Bank if anything happens ?
    Manish Ochani

    • Manish

      The option of taking it from Max looks good , but as far as I know they dont provide Life Insurance, can you check this ?

      the insurance is of 17 lacs only because at any point when you have to close the loan , the company will pay it off in one go


      • Manish

        Thanks for your reply!
        Yes Max New York Life are providing Life Insurance..
        Also what do u think will be better to take Home loan insurance or
        separate term insurance?


        • There are pros and cons for both , customized home loan insurance have more features , it covers you from disability , death etc and also you loan just gets paid off once you die .

          With pure term plan , you have to do it all yourself ., but are cheaper !


  62. CT

    8. How to take care of claim settlement in case of more than two policies?

    Suppose i took a policy in 2008 from ABC Insurance company and I am taking a new policy in 2011 XYZ insurance company. Is it required to inform ABC Insurance company about my new policy ?

  63. Deepthi Nambiar

    Hello Manish,

    I am a regular visitor of your site. we have a term insurance plan and My husband donot drink but he started smoking once in a while, say four times a month after taking the insurance. Do we need to inform the company about it? If we dont inform them, how policy is going to effect.

  64. Tushar

    Dear Manish & Team;

    I am really very thankful for such valuable information provided by you on emails. i was totally blank about investments & insurance policies. but due to your valuable emails now i am getting information on finical & insurance field.

    i really appreciate your efforts to provide such knowledge to persons like me in our country. This program & project which you are carrying is like wonderful social work for India to educate peoples. i hats up to you.

    Thanks lot. and keep continue your social work for our INDIA.

    Thanks & Regards


  65. Rajesh Jain

    Thanks for the information
    1.once medical is done at time of subscribing the policy . if medical fitness of person get change after some years then should we inform to insurance company,
    2.drink occasionally ( 5 to 6 times is a year ) .how to inform to insurance company at time of subscription.
    3. if person is lost ,body not founded then how policy will be claimed . because no postmortem report , no death certificate how policy gets claim.

  66. Dayanand

    Hi i am 32 years old. I do not have any policy as of now. I want to invest in a term insurance policy with sum assured of 60 Lakh. Can u tell me which is the best term insurance policy in govt. as well as pvt. sector. I do not have regular income, average monthly income is around 25000/- so, what should be the safe annual premium for me with regard to SA of 60 Lakh. Please do mention the name of the policies.

  67. manojkumar

    dear sir,
    you are doing wonderful job and u r literaally making aware of financial and investment planning for ignorant people like me… hats off to u sir…
    iam planning to take sbi smartshield for 50 lakhs ,30 yrs tenure, should i go to level or increasing term?… should i go for more sum assured?….pls advise….
    (iam 31yr old doctor doing pvt practice…. my monthly income is around one lakh…) thank u

  68. Bhavin

    Hi Manish,

    Thank you for the article.

    Got a question.. In LIC’s Term Insurance (be it Anmol Jeevan or Amulya Jeevan), does the life cover start from day one of the policy or is it something like medical insurance policies? Sorry for being too ignorant.


  69. venkatesh puthige

    hi manish,
    I have a LIC jeevan saral policy for the last 2 yrs,now i am leaving for abroad i.e US and my status after some time will be of NRI , now pls tell me will my life insurance be covered in US by this policy , even if i inform LIC about my personal details in US, and should i sureender this policy if there is no life cover for this policy after change in my status.

  70. Ilesh

    My father was died at the age of 60 because of Cancer (Oesophagus – Food pipe). 3 months later I have taken term insurance (Birla Sun High Networth Plan) of Rs. 50,00,000. My age was 31. I have not disclosed at the time of policy about papa’s death as Cancer. What will happen in this case?

  71. Kaushik

    Can you please elaborate more besides smoking and alcohol history to be revealed by person while taking insurance? (even if it will not asked or appeared while filling up form)

  72. Muthu

    I have taken aegon iterm. I have two previous policies from LIC which I have disclosed. I had applied for SBI term insurance five years back and returned it back since they had jacked up the premium by 50% after medicals. I did NOT disclose the SBI insurance. Can the claim be rejected on this basis?

      • Muthu

        hi manish,
        I checked the policy. there is a question:
        “have any of your life insurance proposals been declines/postponed/dropped or accepted with modified terms?. If yes, please give details”.

        As I have not mentioned anything against this, I think it can become a sore point later on. I think I should talk to aegon and check their response or move to a different insurance company.

        What is your opinion?

        Also there is another question: “Do you currently have or had in the past any other medical condition, illnesses, diseases, disorders, disability, surgery or treatment or are currently intending to seek any medical advice which is not mentioned above?”

        This is also another vague question, one could have been taken to a doctor at very young for various reasons like say tonsils, chicken pox, fever etc. which one might not remember. What would be the repercussions?

        • Muthu

          For first point , are you hiding anything , If you have left it blank and you are hiding, then there is problem , otherwise if there is no hidden thing, then you can leave it blank .

          For the second point , its talking about some thing major which can affect the premium , small things in bachpan is not a issue


          • Muthu Krishnan V

            Hi Manish,
            My aegon religare term insurance was up for renewal. I contacted aegon and told them about my insurance with SBI which was accepted with increase of premium and also about the tonsils which I had in my young age. I asked them to provide an official letter confirming receipt of these details.

            After ten days, I have received an official letter from them saying that they have noted the additional information and that there is no change in the terms of the policy. I immediately renewed the policy. This gives me peace of mind now.

            As far as I am concerned, I am happy with the customer service of AR but ofcourse their claim rejection is a concern which I will watch for the next few years. I am also considering taking another Term insurance from kotak or others next year.

  73. Naveen

    I heard that LIC settles non-early death claims within a month time after submitting all necessary documents.
    How much time, will they take to settle early-claims for accident death case after submitting all necessary documents?
    If they are taking too much long time, will they pay interest on claim amount?

  74. SA

    Hi Manish,

    I was surprised to read somewhere (in ET) that LIC term insurance plans – Amulya Jeevan- 1 does not cover accidental death or death due to critical illness. I tried searching LIC website but was not able to get any concrete link,, LIC website says only exclusion is suicide. Do you have any link or contact which can verify this claim?


  75. Rajeev Bhatia

    HI !
    I am moving to out of india for better job prospects for 2-3 years. I dont have any Insurance. Planning to buy I-term Insurance of 30L and for next 30 yrs, Age 31yrs. Which policy you would recommend Kotak/ ICICI/ Aegon/ Met or on the safer side LIC ?? Need your guidance and valuable inputs.

  76. r.p.shrivastava

    i am 44 year old self employed and having two kids.i want first to protect my family for any unseen incidence,am looking for term insurance,which should be the best in term of everything.kindly do suggest?

  77. r.p.shrivastava

    manish bhai,
    i need a term policy,for family protection in case of my sudden death or any unforeseen case, i am 44 year old ,self employed having two kids ,kindly suggest which policy will be better for me and how much premium required for rs.25lakhs policy.

    • RP Shrivastava

      You should look at online term plans which would cost around 4-5k to you for 25 lacs cover , Infact you should buy more than 50 lacs cover . See how much is the premium on their websites .


  78. Praphool

    Can any one tell about cliam settlement ratio in e-term plans.
    is it less as compared to physical applications

  79. Durgesh Salunke

    I want to ask 2-questions about term insurnce policy as below –
    1 – Can i buy a term insurance policy of same amount of life cover (Say Rs 50 Lacs) from two different insurance companies at the same time OR within certain time span (Say 1 to 6 months OR kindly specify the minimum time span of two policy purchase) ?

    2 – If i purchased a term insurance policy of Life Cover (Say Rs 50 Lacs) & paid all premiums regularly over a policy tenure (Say 20 years) then Will i receive all policy benefits (Say Sum Assured Amount) at the policy maturity time, if i will be alived OR should i need to take extension period of policy for another years to keep policy to continue?

  80. Ravi

    Hi Manish, My age is 29. I want to take Pure term Insurance plan of 4 Crores cover upto Maximum age (might be 70-75). Which plan is suitable for me ? I am eligible to take the above limit. I do not want to mix term plan with ULIPs. Please suggest me.

  81. j k sahu

    Why the difference in premium is so high for different company for term paln?
    Example is LIC nearly 24000 bit AVIVA is only 5000.

    • J k Sahu

      Its mainly because of two factors

      1. Online or Offline – Online term plans are much cheaper than offline because agent is not involved.
      2. Mortality rates – LIC mortality rates are very old and hence charges are high , they need to revise it .


  82. Anand Modi


    I am 29 year old male from Mumbai. I am looking to buy a term insurance very shortly. I have 2 queries as follows :-

    I am looking for your advice on Critical Illness Rider. Which of below is true. Your additional comments will be appreciated.

    1) If my term plan doesn’t have CI rider. Does it mean that if my death is due to some critical illness – will the claim not settled?


    2) CI Rider is just an additional benefit – in which the insurance company pays over and above sum assured? (Similar to Accidental Death Benefit?)

    Also, I have shortlisted “ICICI Pru iprotect” for my term insurance. But I am looking for cover until age of 75. If I start today, the maximum period of cover I can get is till age of 60. And post that age I may have to again buy term insurance for 15 years. What do you suggest here?

    • Anand

      All the riders are only additional benefit , you will get the sum assured on death any ways .

      If you are detected by any critical illness then you will get lumpsum money only if you have taken a critical illness rider . But if you have not taken it , then company will only pay sum assured on death , not before .

      Why do you need insurance for 75 yrs ? Can you explain that ?


      • Anand Modi

        Hi Manish,

        Thanks for your response.

        Its just that since in term plans you dont have money back option, I thought to have a longer period cover i.e. up till 75 yrs of age – At least my family gets benefited after me, If I dont :-)

        Do you suggest ICICI i-protect? What are your views on it?

        • Anand

          Note that companies are more smarter than you , they will either not give you insurance for that long , or if they give the premiums will be priced in such a way at on an average customers can benefit from it , apart from protection .


  83. ramesh c sharma

    i have a mediclaim policy from oriental insu co ltd
    can insurance co refuse to reimburse me my dues on the ground that its pre existing illness, my wife is suffering from carcinoma grade III , policy inception date is 3/12/10, she was hospitalised on 29/04/11.

    • Ramesh

      Obviously .. They wont cover pre-existing diseases immediately .. but if only after the waiting period .. That too only if you have told them about that desiese ? Did you ?


  84. Jateen

    Planning to buy term insurance.I got confused by the word Online and Offline. I am not getting a satisfied ans on why there is so much of difference. Its very substantial.
    I need a view from all of you there on having term plan with 2 or 3 insurance company. Is this a good idea. I need to cover myself for atleast 1.35 cr.Any suggestions pls.

    Thank you

    • Jateen

      The premiums are different because the target market demographics is very different . Thats why .. people who buy online are generally percieved to be having a better lifestyle , better access to health care etc etc


  85. Nirmal Singh

    Thanx a lot sir for precious information. But I have some more questions –
    Q1. My brother is in UK and he will get PR in next 1.5 year on marriage grounds. May he take term plan in India ?
    Q2. There are many companies in market providing term plan. Which company provide us claim for sunami, earthquake,terrorist attack?
    Q3. What is the reason of Variation in premium amount of different companies?

    • NIrmal

      1) A person can tkae term plan in india as far as he can show income proof and residence proof in India and is present for medical test in India

      2) Its tough to find one like that ,. but do you really want to choose the one on these conditions ? or the one which provides the cover for most obvious things ?

      3) Different permiums , because the way they consider different things .. there is something like underwriting process . its the same questions like why different hotels charge different fee for their products /.


  86. Satya

    Hi I am a Merchant Navy officer drawing salary in US dollars,Nationality Indian(permanent residence mumbai)holding only Indian passport but depending upon the days i stay outside india as per job requirement my TAX STATUS BECOMES NRI FOR THAT FIN.YEAR ONLY.I am filing tax returns for last 8 years.I am looking for a term insurance my Q1-Am i eligible for term insurance with any company?Q2-What things should i declare while taking the policy beacuse i find all agents with very very limited knowledge about this field.Q3-should i declare myself Resident or NRI(Depending on Tax status).I am desperately looking for a term policy to cover my family.Thanks alot in advance.

    • Satya

      1. You will be eligible for most of the companies , but for taking any term plan you need to be physically present , have a address and income proof in India . As you from Navy , you are more riskier for a insurance company compared to a normal person , so your premium might increase .

      2. There is nothing tough thing in the form , you can fill it up yourself, no special knowledge required . All you need to do is put all the truth in it

      3. Yes you need to mention that .


      • Satya

        Thanks manish for the timely reply I Just want to Ask wether a person Holding NRE Account like me and drawing income in US dollars is eligible for Term insurance?and i will be phisically present for medicals.But as i asked earlier what should i declare myself as NRI or RESIDENT bcos that keeps on changing every year F.Y.I as per my latest tax return i am resident indian and this financial year i will be NRI(only for tax purpose as i will be outside india for 183 + days)Please give your suggestion.

        • Satya

          If you dont have an income and address proof in India, you will face issues while taking term plan , dont declare yourself as Resident , if you are not at the time of taking the plan


  87. Rahul

    Hi Mohit,

    I have a query related to Term Insurance. I am recently married and me 27 & my wife 29 both are working. My wife will continue her job. I have a home loan of 19 lacs which i am paying by monthly EMI of 27K from last one & half Years.I have a term plan of LIC for 40 lacs for me. Please suggest should i take term plan for my wife also considering our future responsibilities & liabilities.Currently, she doesn’t have any loan / as such critical liability.

    Please suggest.


  88. dear author, thanks a million for providing valuable information. Please reply few of my question:
    1.Do we have same death cause (earthquake/tsunami/terrorist attack) excluded in LIC also.?
    2. what are the approximate figures of claim settle ment ratio with following : religare-kotak – SBI life insurance & LIC…?

  89. Deepthi Nambiar

    Hi Manish,

    How do you rate Birla Sunlife Dream Plan Life Insurance. Is it good that we continue with Birla or do we need to go for some other companies for Life Insurance.

  90. Prabhu

    Hi Manish,

    Below are my few questions related to term policies

    1) what is the difference between the Online Term policies and Offline term policies
    2)Which is the best way to take the term policies( Online OR Offline)
    3) If I take online term policy then do i need to go under medical checkup?
    4) If company declines to give policay after my medical checkup then the amount paid by me will be fully reverted or any deductions will be there in this?

  91. Joshi

    Hi Manish,

    nice article on term insurance, its very informative.
    I have a question I have taken term insurance from aviva, now is there a option to increase the risk coverage amount?

  92. santhosh

    Now i got good idea about term insurance.
    I got term insurance from aviva life shield plus last year for 10lakhs at Rs.4250 as a yearly premium(expires on 25th oct 2011). Now i want to change this company to My First Choice anytime insurance plan where i get the policy for RS.15lakhs at RS.3988 as a yearly premium for 30 years. (My date of birth is 21st may 1975) please suggest me regarding this. i hope i will get reply soon. thank you.

  93. Hi Manish,
    This is a very good article. I am enriched with very good information after reading the article.
    Thanks alot for the information shared.

    — Dinesh

  94. Arun


    Its good work Manish & team.
    My questions are :
    Can a person take two policies with one as spouse & kids as nominee and the other as parents who are 62 yrs age as nominees.
    The reason for parents as nominees – the medical expense they may undergo after 3 + yrs, since no senior citizen policy covers more than 5 lac hospitalisation. Our system ( Insurance cos, netas, policies) considers them(senior citizens) as unfruitful (revenueless) and risky .

    • Arun

      Yes you can take two policies with nomination different .. no issues .. Why nomination will onyl make them eligible to recieve the money and not the final owner , it will only be as per will


  95. Ajit

    Dear Mr.Manish,
    Thanks for your valuable guidance. I would like to know if I buy a term policy on line how much it will be cheaper? Which are the companies offer term policy on line? I want get rid of ULIP plan and want to go for pure insurance. Pl suggest.

    • Ajit

      there are manhy companies now a days like AVIVA , Kotak ,ICICI etc .. the premiiums are less than 10k for 1 crore worth of sum assured for less than 30 yrs old

      Check your premiums online on these sites


  96. Ajit

    Do you have any clue when LIC is starting on line term plan buisiness?
    Can you provide the recent data of claim settlement ratio of each company esp for pure term plans?
    Please enlighten us on the reasons for relatively poor claim settlement ratio of private players than the LIC. Why claims are discouraged by private players?
    I am at crossroad to buy e-Preferred term of Kotak and i-Care of ICICI. Changing mind for LIC online pure term plan. The fluctuation in mind is because of claim settlement ratio, the on line lure is great but believing the private players for such a crucial aspects of life is really tough. Please enlighten what things are to be done to ensure 100% hassle free claim settlement. Can we act wiser with your advice. Looking forward for your kind guidance.

    • Ajit

      Do you have any clue when LIC is starting on line term plan buisiness?
      Can you provide the recent data of claim settlement ratio of each company esp for pure term plans?
      Please enlighten us on the reasons for relatively poor claim settlement ratio of private players than the LIC. Why claims are discouraged by private players?
      I am at crossroad to buy e-Preferred term of Kotak and i-Care of ICICI. Changing mind for LIC online pure term plan. The fluctuation in mind is because of claim settlement ratio, the on line lure is great but believing the private players for such a crucial aspects of life is really tough. Please enlighten what things are to be done to ensure 100% hassle free claim settlement. Can we act wiser with your advice. Looking forward for your kind guidance.

      • LIC will come up with the date , you never know when it will happen , you should read detailed comments on this issue here itself (read all the comments and replies given by other experts)

        You will be very clear of things


  97. arun madan

    respected sir
    i am 36 yrs old i took aviva term plan of 50lakh for 30 yrs. i help my mother in business. and I file Income tax return as working with some private company . i receive salary cheques and form 16 regularly. while talking to aviva’s customer care helpline I mentioned that (verbal) my salaried income is bogus i actually help my mother in business . after my conversation customer care lady told me that our conversation is recorded and will be archieved for future references. sir please guide me whether to terminate this policy and apply for a fresh one or any verbal recorded conversation is held as proof at the time of claim.(my policy is only 3 days old)

  98. Muneswar

    Hi Manish,
    Great information and keep posting such articles. I have a query.
    I did a mistake (common case with most of us) while taking LIC Jeevan Anand policy by blindly trusting one of my relatives and just signed on the application where other details were filled by herself. Recently, I came across that we should fill proper information while taking the policy, otherwise the claim may be declined.

    1. What is that critical information we should have provided properly in the application that may lead to decline if not filled properly?
    2. How can I check what the agent has really filled in the application?
    3. May be out of context, my LIC Jeevan Anand policy (SA: 12.5 lacs, paid so far Rs. 2.5 lacs, 20 more years to be paid, surrender value: 1.7 lacs). I took this policy when I had no financial knowledge. Now after realization, I would like to go for pure term insurance. Should I go for surrender or continue treating it as a debt instrument?

    Thanks in advance,

    • Muneshwar

      1. What if she has not filled your age , name or your MEDICAL HISTORY , What is you smoke , but agent filled “NO” in question , “DO you smoke” , 100% your policy will not be honoured in that case . Please ask LIC to show you your form and what details are there . Ask your relative on this .

      2. Ask LIC , call Customer care

      3. You should make it paid up if you have already made 5 payments . But if you are in need of cash , then make it surrender


  99. Mudit

    Talked to aviva customer care for aviva i life term plan recently. for SA 1 Cr and term period 35 yrs.
    They made a few points:
    1. there is no loading charge even if you start smoking after 5 yrs
    2. All types of natural disasters are covered.
    3. Even if you are going outside india, risk will be covered.

    they are maintaining that the conversation is being recorded and they can be trusted.
    I want you to call them at their toll free no. 1800-180-2266 and confirm the same because this article is painting a different picture altogether. I am confused. Thanks and regards.

  100. Kundan

    Hi Manish,

    Thanks for the great post. I am a bit confused after going through some of the comments.

    I plan to purchase term insurances from 2/3 different providers for diversification. My questions is that can the claim be made from all of them or only one of them provide the claim. Of course, I will inform the newer providers about the existing policies.


  101. arun

    thank you manish. cancelled aviva term plan and got refund of rs 10047/- . now help me out in choosing term plan. I am male, 26july1975, party smoker and drinker(once a week), healthy, no prior medical history, cover of 50lakh for 30 years. aviva charged 10047/- for the same plan.

  102. Balu

    Hi Manish,

    I have two LIC policies which i have taken from two different agents both the same year with a months difference, the first is a smaller one and the second is fairly big.

    but i don’t remember having mentioned of my first LIC in the second one !!! Does this effect by any chance? the first Policy is for 21 years and the second is 25 years.

    Also could you please let me know if we can close the policies and take back the money?? i have been paying them 7 years now.

      • Balu

        Thank you Manish!!

        but somehow i feel Insurance is no better for those who would servive the term as they would be ending up with retun of 9-10% approximately. The only advantage being SA + bonus depending on the tenure and uneventful before the maturity. (plocies like jeevan anand etc)
        My Calculation is based on jeevan anand with a SA of 500000 TERM 21 age 25
        premium is 25173 Anually
        so, 25173(21*11*0.10) = 581496.30

        lets equate this with the bonus and and Final bonus
        T-149 has a table value on an avarage of 44 for 21 and above years
        so it would be 500*44*21 = 462000
        and an Final bonus of 500*250 =125000.

        So, Manish my question here is can you suggest if its good to stay invested in ULIPs for long (say 15 years) or just stay with LIC for 21 years.

        Thank you

  103. N. Srinivas

    Hi Manish

    This is very trivial question. Is there any rider where if we doesn’t want to claim any sum assured and I am suddenly sure of 100 years stay, then is there any provision to to take back the paid premiums :-)

  104. Suhas Suryawanshi

    Hii Manish….
    Ur info is very useful to me & ur doing wonder full work here…
    I have one query

    Myself Suhas N. Suryawanshi. I am 21 years old chemical engineer in profession working in chemical plant. I am want to insure myself in ICICI Pru_iCare term plan with sum assured of Rs.6000000 .

    As most of the time i am working in chemical plant which is high risk area which may cause my death. I want to ask is that are such accidents are covered under term insurance ?

    Please give me your valuable suggestion as soon as possible.


    Hello sir

    MY AGE IS 42 YEARS. i want to insure myself in term plan with sum assured of Rs. 25,00,000. help me out in choosing term plan. I am male, 23, September 1969, party smoker , cover of 25 lakh for 30 years. which company is best for me.. plz. help me

  106. arun madan

    hello manish, kindly differentiate term plan from personal accident policy. as premium factor is three folds. and also PAP covers terrorist attack, leave encashment and permanent disable coverage. I am in a dilemma which one to take. kindly enlighten in this forum.

  107. Deepthi Nambiar

    Hello Manish,

    We have a Birla Sunlife Dream plan where my husband insured himself and have taken this policy mainly for life insurance and insured for 50 lacs for 25 years and sum assured is 35 thousand. Recently i read somwhere, Since its a ulip, the ulip guidelines apply. As per one of the guidelines in any ulip the MINIMUM FUND VALUE after 3 yrs shud be 1.5 times of the original premium or else the policy will lapse. so in birla dream plan after 3 yrs the fund value will be much less ,either u have to topup or else ur policy will lapse.

    1. Is it true
    2. since it is hard earned money and i pay 29 thousand per year for the same, do you think the birla sunlife policy is good
    3. I read lot of negative feedback about the policy, mainly in mouthshut.

    How do you rate Birla Sunlife Dream plan?

  108. SMANAND

    Dear Sir,
    I have a strong fear on Claim Settlement on Private Insurance Companies in Long Term Basis. But at the same time LIC permium when compared to others is Too high. Pls help me to come out. I am 42 Years old / Rs.46 T /month, 60 Years retirement and working for MNC Company. Pls suggest best Term Insurance for 30 Years.

  109. Pranav

    Manish, Dhawal, et al,

    Very good information and discussion shared here. It is indeed very useful. My questions,

    1. I have taken up a LIC’s “Money back” policy and on top of that I am planning to take ICICI iCare term insurance cover. In case of any eventuality, if my relative make claim, will they get SA from both policies ?

    2. If I take ‘n’ insurance policies, will SA given for all ‘n’ policies that I have taken or is there an upper limit on the amount of money given by various insurance companies ?

    3. ‘Natural disasters’ are inevitable, but I would for sure want to be protected against ‘any eventuality’. Are there any insurance plans that also cover you for natural calamity ?

    • Dhawal Sharma

      Thanks Pranav for your appreciation..

      As for your queries;
      1) Not only these two insurance policies, if you have 5 to 10 or x amount of policies, they all will pay the SUM ASSURED to your nominee in case of your demise..
      2) Your N amount of policies will be eligible for the SUM ASSURED for which you have taken them to your nominee. There is no such thing as upper limit..
      3) On the face of it, some natural disasters are excluded from the scope of the policy, like death in natural disaster of the magnitude of TSUNAMI or BHUJ EARTHQUAKE. But even then, according to my personally-gathered information, most of these claims are settled by the insurance companies on HUMANITARIAN GROUNDS..

      Dhawal Sharma

  110. Vinay Maithani

    I have all money back/endowment policies (for me and my wife) whose premium paid is to the tune of INR 38,000.
    I am 31 years old with income of INR 10,00,000 per annum and have my wife and a kid with parents as dependents.
    Kindly suggest me a term insurance plan with the amount.

  111. Dhawal Sharma

    Dear Manish and all readers..
    IRDA’s annual report for 2010-11 is out on IRDA.GOV.IN
    Would like to bring certain facts to notice
    * Kotak again is in profits for the fourth consecutive year – page 23
    * Claim settlement ratio of KOTAK is 90%, amongst the top 5. LIC is still at the top with 97%, closely followed by HDFC at 95% and IPRU at 94%. Aegon is at the bottom pile with 52% and SBI is with 82% with not so impressive claim ratio – page 114, statement 13.
    * KOTAK has a solvancy ratio of 2.67 against the stipulated 1.5. AVIVA is one of the topmost with 5.4 and LIC at meager 1.54.

      • Dhawal Sharma

        @SUNIL KUMAR N

        Weired query this, i must say. Can you please tell how do you derive this conclusion of Good solvency ratio indicating average claim settlement ratio??

        In todays time, when all of the major players (Kotak, Ipru, HDFC etc) are having claim settlement ratio in 90s, where is the question of AVERAGE CLAIM SETTLEMENT RATIO?? Or would you like to share what according to you is MORE THAN AVERAGE or GOOD CLAIM SETTLEMENT RATIO is??

        Solvency ratio is mandated by IRDA to all the companies and some companies are keeping this ratio higher than the requisite level (1.5 times) and some are maintaining it way about the threshold. Its for an individual to derive the significance.

        But you ask me, Good solvency ratio does NOT indicate average claim settlement ratio. It means company is good enough to meet all the genuine claims, whatever may be the cover amount is..

  112. gaurav

    what are the difference between term insurance policies sell by LIC and by other private players? Difference should be gauzed in terms of coverage, claim settelement.

    Premiums are different and that is secondary.

    • Gaurav

      the terms are all same .. the claim settlement part is little tricky .. while LIC still is the best . but pvt insurers are also catching up and very much near 90% area


      • gaurav

        Thanks.. I saw in newspapers that LIC will be coming with online term insurance soon.. DO you have any idea when and how much will be the difference between its online and offline policies

  113. dr ravi narayan

    i have been investing in ULIPS since 2004 but i am surprised at the fund value,the surrender value at present. The charges like policy adm charges, fund management charges,service taxes,allocation charge are so high and it must be 10 to 13 % of the premium, that the fund never improves. the growth of nav must be at least 30 to 40 % to get back your money. after 8 yrs i have finally decided to buy term insurance .

    • Dr Ravi

      Good to hear that you have decided to buy a term plan now .. but what is the decision based on , Is it the realisation of Proper COVER requirement or bad performance of ULIP , thats very important ?


  114. Saket

    Just went through your Ebook on Term Insurance and it was a EYE OPENING experience.

    Just One question on

    ‘Don’t forget the agent will be the one to help in claim settlement when you are dead.’

    Being in highly transfereable job I am not sure where I and my family will be when the need to file claim arises. I plan to take LIC Term through an agent from my current city of stay. My family could be a couple of thousand KMs away from the agent at that time and it wont’t be easy,if not impossible’ for them to get in touch with him.

    Will the agent be necessarily neded to file (and get) the claim amount?

    I do not practically have something you call a ‘Hometown’ so the option of getting the policy through a known agent is not there for me.

    And what if the agent laeves the world before I do?

    • Saket

      Yea .. what you are saying does not make AGENT very useful for you and in reality these kind of agents are very rare who really be there till end .. But there are some good agents who really be there at the time of claim settlement , but hardly any of them :)

      So dont worry to much on that .. better would be go for online term plan and educate your family about the claim settlement procedure .. you must have friends who can also assist them


    • Vipin Agrawal

      I have faced settlement of policies from – TATA AIG, MAX, LIC and Mutual Funds on death of my elder brother.
      We approach to company directly and they guided us to fill the form. We went through all physical correspondence, it worked but took some time. Very first, after discussing the case on help line, sent intimation and demand for list of documents required to settle. Every one provided list of documents and we completed those as per their instruction. But sometime their demand are not logical – like we were providing the Succession certificate received from Court but along with this they were asking for Legal heir certificate.

      My experience with Reliance MF was worst. No buddy replied on emails after 3-4 follow up, every time spent lots of time on phone with customer care.

      One thing, I want to suggest to everyone, please make nominee in each and every financial instrument. I am sure, very few person declare the nominee in Saving bank account. It’s difficult to settle the case if nominee is not declare or Nominee is no more in world.


    I am hodling several insurance policies . Now i want to go for a term plan . Please let me know whilie providing information of exsiting life insurance policy should i declare all the policies or Insurances policies taken within last five years.

  116. ashis

    I used to work till June 2011 and my salary was approx 4 lacs p.a. I have the Form 16 for 2010-2011.Then I quit to persue further studies. My queries are :
    1. Can I take a term plan for 25 Lacs now without being in employment ?
    2. I can provide the Form 16 (previous fin year) as the supporting document but I am not working for that employer as on date, is it acceptable to the insurance companies ?

    Please guide.

  117. ashis

    Dear Manish,

    Thanks for the reply. To your knowledge , is there any insurance company where I should apply for a term plan in my current status.Because I only have 15 Lacs of cover on me , which should be increased.


  118. Muneswar

    Hi Manish,
    I have a weird question which could be possible.

    1. what if an private insurance company goes bankrupt? what happens to the policies? Will IRDA transfer all policies to another insurance company with the same premium? or policies will become invalid? If policy holders have to go for a new policy then, premium amount will shoot up for an aged fellow :)

    2. Any insurance company went bankrupt in the past?

    Thanks in advance.

    • Dhawal Sharma


      Your doubts are not weird. Almost all of the people have same queries..Let me be very specific with your SECOND question first..IRDA opened up PRIVATE SECTOR for insurance in 2000 and in this period of 12 years, there is not EVEN A SINGLE example that any insurance company has gone bankrupt. Take any private insurance company and they are all being supported by MAJOR Indian financial institutions + a very old insurance company from abroat. Take ICICI PRUDENTIAL for example. ICICI is the largest private bank in India and Prudential is a UK based company established in 1848. Would like to forward the case of my company, KOTAK OLD MUTUAL. KOTAK is a big BANKING AND FINANCIAL INSTITUTION which is now 25 years old in India with its foreign partner OLD MUTUAL which started its operations in 1858. To me, There is virtually NO chance of any insurance company going bankrupt.

      But if something impossible happens (Yes, it happens – as in the case of UNSINKABLE TITANIC or LEHMAN BROTHERS), IRDA has laid down the guidelines as to MERGERs and ACQUISITIONs. IRDA says that no company, which has started insurance business in India, can close down its operation. What it can do at most is sell off its business to some other player. What will happen in that case is, policy from Company X will now become policy from Company Y, no invalidity and no premium change.

      Be rest assured and buy your policy from any company in whom you have more faith and trust, plus whose agent is professional and giving you all the knowledge and services.

      Dhawal Sharma

    • Muneshwar

      generally the companies going bust is taken over by new companies .. and IRDA also have norms which takes care of these situations , i mean they keep a check that these kind of situations dont arise ..


  119. Muneswar

    Hi Manish & Dhawal Sharma,
    Thanks for your response. I asked above questions as somebody told me that government has stake in LIC and hence is very safe.

    Keep up the good work you are doing by providing useful information and helping others. After going through your articles, I have stopped my LIC Jeevan Anand policy with a huge loss (paid 2.5 Lacs and bonus is 2.8 = 5.3 Lacs; surrender value is 1.35 Lacs; do not know the calculations behind it. And taken pure term insurance policy. Thanks a lot.

    Just information for jagoinvestor audience. I have applied for Aviva iLife(online) policy for 35Lacs and the premium got loaded with extra 100% (double the standard premium) due to results from medical tests(elevated blood sugar levels & hepatitis-B). Would like to share the experience so that it will be useful to others.

    Overall experience with AVIVA is not so great, but OK when compared to ICICI. ICICI has rejected the application without even submitting proposal :).

    1. When premium was increased by 100%, they explained me the reasons and shared scanned copies of medical reports.
    2. Scheduled medical tests as per my convenient time which was good.
    3. Support from customer care executive was very supportive while filling the online application.

    1. There was no co-ordination between people handling through emails & phone. There was a big confusion regarding the information I shared through email (as there was no space for filling extra information in proposal form). After escalating to multiple levels, finally it was resolved. Lot of mental tensions that time :)

    Looks like, hdfc life also came up with online policy. Planning to take one more term insurance.

    Please suggest another good term insurance company. Thought to take from LIC but premium is very high compared to others. That’s why asked whether it is safe to have policy with private insurance companies.

    Thanks in advance.

    • Muneswar

      Can somebody please share claiming experience with an online insurance policy? This would help others to choose either online or offline policy.

    • Muneshwar

      Thanks for sharing your experience .. the issue is that almost all the companies might have this issue of bad coordination, all companies have bad and good exerpeince . So cant recommend a company just for this parameter.

      LIC is coming up with their online term plan mostly next month , so you might want to take your next lot of sum assured through them


  120. Surendra Jain

    let me share my experience, which has been pathetic so far.

    experience with ICICI, they rejected my policy simply becauase of wrong update of my high blood pressure and they were not ready to listen, instead they tried to sell me traditional policy.

    experience with HDFC for their click 2 protect, I applied for 50 lacs cover, applied on 6th of Jan, got letter for medical after 15 days that too after my repeated follow up.
    Finally to my shock they increased basic premium from 10809 ( for 50 lacs 25 years age 39) to 14750 and rate up by 8850 only because of elevated lever enzymes, so total premium 23600/-

    now I have been chasing them for last 8 days for sharing my medical report and reason for increase in basic premium but there is no response at all.

    my expericne so far with both comoanies has been pathetic, I think these Insurance companies are more interested in selling their traditional policies and these online policy are for just name sake because at the end of the day they increase premiumby 100% that too for sily reasons.

    • SUrendra

      Thanks for sharing your experience . It really helps others to judge companies .. however there has been cases where the premiums were not increased , and many cases where it was

  121. Rajeev Shukla

    I am 37 year old. I have two policies.
    1) LIC Money back in which sum assured is 100000. This was taken by my father when I was student.
    2) Bajaj Alianz term insurance which i taken last year. it is of 2000000 sum assured. but when i took it, i did not declare my LIC policy. is there any harm/impact of it in my Bajaj polciy.

    Now I want to take term insurance of Rs. 10000000 (One Caror). Please suggest me which one would be better one and why? Also should i go with online plan or manual plan. I want to take this insurance to protect my family in case of any casuality with me.
    If we see the premium then relegare and aviva is lowest premium. HDFC life and ICICI and LIC charging good amount of premium.



    hi manish,

    my neighbour around 40 yrs had taken a term policy for 20L around 6 years ago after medical tests. No health problem, non-smoker. Recently he has been diagnosed for high BP, does he need to inform insurance company. If so will premium change and approx by much ?

  123. Jitendra

    Hi manish,

    Thanks for all above information.

    I am phaysically handicapped person and want to go for term insurance. Can you please let me know if there is any rule that I can claim the half premium amount back? as I am doing for my car insurance?

    Thank you

  124. Vipin Agrawal

    Got good information here.

    My question here – why are declaration of old policies mandatory in case on Term insurance? I don’t see any benefit in premium amount if I already hold policies with a SA.

  125. alpesh pancholi

    hi manish,
    i found this article very useful and eye-opener. it shows what mistakes are we doing while buying the policy.
    1) i have sbi life saral shield term insurance plan of 15L for 30 yrs term for which i m paying 4953/- premium.
    after reading this article, i have gone through my policy document in which they have given scanned copy of filled up form. actually agent has filled up the form. i m a smoker but in the form it shows non-smoker.

    2) i have few lic endowement policies since 2008 (i m going to surrender them in nxt month anyways). during filling the form of sbi life i was not asked about this. i asked the agent on phone whether he has disclosed this information or not? now he is not sure about it..
    what should i do regarding above two points.

    • Alpesh

      Bad news for you .

      1. Your claim can get rejected (will get rejected) because of wrong info in the form .

      2. Disclosing of the earliar policies is MANDATORY . do it now , else you are doing charity ! . talk to customer care


  126. Sapan

    I m staying out of India with my husband, not taken any policy yet. Do you think so we shld go with any term plan?? however, not interest to go wid any other policy , but may be wid term policy….pls suggest and wid which company??

  127. abhay shah

    Can you suggest which is best term policy as there is a big difference between lic on 1 hand and all private companies on other as in lic charges 11000 premium for 25lac cover where as hdfc life charges 5239 which means lic charges double of hdfc.
    Can you state me the differences ? Also suggest me which one shall i pick as i have to decide on any 1 in this week.

    • Abhay

      Actually the only difference is in price and nothing else. LIC is always higher in premium. You can take it based on your trust, if you trust pvt companies, you can take it from them

  128. Darshan Shah


    Thanks for the Good article.

    One question regarding the exclusion from Death at point 7.

    We asked with Aegon Religare customer care for i term, they told death except suiside within 1 year are covered. Does other provider goes like this or not? What about LIC amulya jeevan?

    I am planning for the approx Rs 8 K in term insurance.

    Should i go for 2 policy?
    1 Aegon Religare i term
    2 LIC amulya Jeevan

    Please Advice

  129. Bhavin Nagda

    I have recently started working in a company, almost i have completed 9 months.
    The condition for buying a term plan is that we should have a3yrs ITR filed.
    So am i not eligible for the term plan?
    I want to buy 2 term plans of 50 lacs and above ..
    Can you please suggest me the good ones , include all the recently launched in market. Where can i get the claim settlement ratio for this term plans of various companies?
    I guess it is available on IRDA website , but it is totally explained in hindi…
    I am unable to understand the market words in HINDI.
    So can you please translate it in English and let me know asap

    • Bhavin

      WHich companies term plan are you talking about, generally for residents this is not a mandatory thing to give 3 yrs ITR . Mostly you must be NRI or this company is specifically asking for those documents, ask them that you will go to another company

  130. Arvind Goyal

    Hi Manish,

    Just read your article, fabulous details. It is totally useful and covered almost all the information which a common man always want. All the very best!!

    Well i want to take a single term insurance plan but i am bit confused regarding the best company. Becuase there are different perameters on which we have to choose the company. I have already met few insuarnce executives and still not able to decide as they showed them best.
    Can you pl suggest me the 1 or 2 best co. in all respects i.e. claim settlement, riders coverage, maximum period cover, benefits n all. i think most imp. thing is settlement. So pl suggest the Best plan for me.

    Thanks and Have great future ahead.

    Arvind Goyal

  131. santhosh

    hi manish,
    Recently i bought the pure term insurance from india first life insurance After reading your articles and these comments.
    I took it for 14lakhs for 30 years. Actually i wanted to go for 20lakhs for 30 years but they asked me last three financial years I T R. As i am a teacher my salary doesnot crosses the limit prescribed by IT so i hav not filed ITR. so i was forced to take it For 14lakhs only. now my question is – if the sum assured is more than 15lakhs ITR is must or not? If not how i must increase the sum assured next time? please answer.

  132. Ramesh


    You have provided very very valuable information in this site. Please answer my below question on which I am worrying for quite some time.
    1. My official last and first name is Jonnavithula Ramesh.
    However, almost all my documents (including educational) have the name written as J. Ramesh
    Then I misspelled my lastname in my passport, and as per the passport, the spelling of my name is ‘Jonnavittula Ramesh’
    There after, many of my bank accounts, employment letters carried the same name as in passport.
    Now, having 3 different representation of my names could cause any issue for any Claims in future? [ Not sure what documents like birt cert, death cert, etc would be required in this regard, and not sure with what spellings those would be issued]

    I am about to take Term Policy, and appreciate if you can let me know what measures I can take, to make sure there is No ambiguity in the spellings [ Insurance company should not reject the claim saying spelling in Birth and Death Certs are not matching ]

    Waiting for your valuable inputs..

    • Ramesh

      this is not good . This is a issue . At the time of death , death certificate is required and mostly it will have your name which will not match the policy document . Please apply for correction in all the documents to make sure that the name is consistent across . Never make this mistake again. This can take some time like few months , but only apply for insurance after that.

      This is to make sure you have a full proof system ! . Read this http://www.policymantra.com/blog/articles/738-how-to-avoid-the-rejection-of-claims.html

      • Ramesh

        Thanks Manish for your reply.
        Getting all the records and documents straightened ( for correcting the spellings ) appears to be beyond my control now. Due to my mistake, the documents of family members also got affected, like marriage certificate, childs birth certificate, their passports, visas, and at many more places.
        May I ask you, if I can declare all this information at the beginning itself, with the Insurance company, that these documents (with different spellings ) belongs to me ?
        Is there a possibility that they could still reject the claim, as I am not hiding anything, but declaring and submitting the attested copies to them at the time of taking the policy. That way, they should not have any surprises for them later during claim process.
        Though you cannot answer on their behalf, appreciate your opinion on this.

  133. Arvind Goyal


    is there any difference if i opt to take term insurance online basis. Would it impact in future regarding any settlement as i’ll take the plan online and there wouldbe no agent in that. pl suggest.

    • Arvind

      No issues , you can go online mode , dont get into that myth that agents are very helpful and available incase of death claim settlements . They are not in most of the cases . So educate your family on death claim settlement procedure

  134. Gaurav

    I am planning to buy term insurance for about 1 Cr. Please advise which 2 companies i should go for? Also, should i go for online mode or offline ? Please advise. I am 32 years old.


      • Gaurav

        I was comparing a few online term insurances and had a few queries:
        1) How is aegon religare? They offer till 75 years of age
        2) Should i take all of the cover now at 32 or should i buy some after 5 years. For the max coverage i get is for next 30 years?
        3) What other criterion should i consider while finalizing the online insurance? Is there any reason you say HDFC and Kotak.

        • Gaurav

          AR is also good .. its a personal choice based on trust . you should see trust , premium and their service .. a lot of people have bought the term plan from companioes which I recommended , so just gave those names .. that does not mean others are rejected

  135. Dixon

    Hi Manish,
    Im in Dubai for the last few years,
    Please suggest me a term insurance to cover me for next 5yrs for 33 Lks.
    (Since I have a Home Loan from HDFC for 33 Laks).
    I would like to have a valid Term Cover for me both in India and UAE.

    So please help me find:

    1.Term policy for me that cover in India & UAE
    2.Medical Plolicy for my (Wife and Two Kids 6yrs & 2yrs) Only for India, for daily medical bill settlement with Out-Patient as well.

    Thank you & regards,

    • Dixon

      Thanks Manish,

      1.Can i know what all documents that i need to provide when i apply from India, to get the NRI coverage, Im going for 5 days next month.
      So that i can be ready with my documents from here.

      2.Can you please name any 2 – 3 health insurance plan that will cover the OP bills,


  136. Dixon

    Hi Manish,
    Can i know my ITR liability, except from by salary in UAE, i have the following

    Income in India.
    1.Rs 1.20 Lakhs as rent from property in my name.

    Expense in India.
    1.My 3 LIC policy total annual permium of 22,500 Per year
    2.HDFC Home Loan Rs 3.60 Lkhs per year (Current EMI Rs.30 K per month)

    Please advice, that im liable to pay any tax on the above,

    Thank you & regards,

  137. Dixon

    Hi Manish,

    Pls advice what is the difference between and which is better among them

    1.Insurance and Assurance
    2.Health Insurance or Medical Insurnace

    Thank you & regards,

  138. Vijay

    Hi Manish,

    I want to know one thing about the term insurance policy. If I opt for a 50 Lakhs sum assured term insurance policy for 15 years, what returns I will get after 15 years if I am alive or its just a life cover.

    Thanks for your effort.

  139. dibyanka

    Hi Manish,
    Is there any provision to change the nominee of a term insurance plan in later stages after taking the policy.

  140. John


    Appreciate if you can help me on the below queries,

    I’m 34 yr old, lookin for a Online Term plan for 1 Cr. But none of the online term plan comes with disability or Critical Illness rider, however this riders are avail along with offline term plans but all ar v.expensive.

    Help me to make a decision on the below,
    a) Do i go for a single plan or a spilit (50 + 50).
    b) Buy the rider (Disability+CI) along with the policy or separately.


  141. John

    Thanks Manish for the swift reply….

    Do you recommend take these riders along with Life Ins policy or to buy a standalone Policy for Disability or Health Ins with CI rider??

    Which is more economical and effective ???/

  142. Satveer Gurjar

    Thanks a lot giving us this important information.
    Thank you very much once again.
    Really very good.

  143. gajendra

    Dear Manish,
    Pls elaborate generally how insurance company prove that the demised person was smoker. As per my understanding it is very tough to prove in court.It is true that smokers are more prone to some diseases but they are just more prone!!!

    • Gajendra

      The higher charges is for “more probability” only . They get medicals done at the time of death and there are ways in medical science to find out exactly when the person started smoking . So dont try to by pass that incase you are trying to , my suggestion is that . the problem is the person will not be in world to verify if his decision was smart of not ! :)

      • Gajendra Singh

        Dear Manish ,
        Your comment “They get medicals done at the time of death” is not workable . As u r aware before the death no one going to inform insurer. The inquiry is only start after the receiving of death certificate and my dear friend “medical science is working on statistical data and court did not work on the probability theory. Of course there are medical test like “URINE CONTININE” which tells the nicotine level which r general in foreign countries and now started in INDIA too by the insurer.There are no medical test till today that can tell that “how many years one is smoking” if there is pls tell me???
        Manish my basic aim was to know the method only being a technical person ,how one can proof after death that the demise person was smoker .If u know any court cases on these type of cases pls share.

        • Gajendra

          Ok let me do one thing , let me get this clear from one of my trusted network person who can answer this , I will get back to you . If I dont get back , please mail me again to find it out ,I might forget at times .

          • Dhawal Sharma


            To a great extent, its right that once a person has deceased, there is very little medical science can do to ascertain the extent of smoking and duration of smoking – if at all – can be established.

            ..but its not like Insurance companies have no ways or means to check and establish the facts. Let me discuss two scenarios related to the smoking concept in case of death
            A) EARLY CLAIM – One of my client’s brother died about 2-3 years back, and the family approached for insurance claim from LIC and METLIFE (My client’s brother was having 2-3 policies from LIC and 1 from METLIFE)..Now since LIC policies were old and SUM ASSURED being less, claims were settled in due time..But METLIFE policy was started just a year ago with substantial SUM ASSURED. So the insurance company started its investigation for the case. In the process, insurance company’s investigation team visited the deceased person’s family, his neighbours, his family & friends and discussed his social life..Some of the friends and neighbours revealed to the investigating team that yes, they have seen him smoking and few friends admitted to having smoking-drinking sessions in friendly parties..Now these may be circumstantial evidences but were enough to put doubts in the mind of insurance company. And so there claim was delayed and it took almost 5 to 6 months to settle it completely. This is my personally seen incidence so i know leaving even an iota of a chance can hamper your smooth claim settlement in EARLY CLAIM..

            B)ACCIDENTAL DEATH – Second case would be if the policyholder has died in an accident. In most of such cases, documents required during claim are FIR and AUTOPSY report. I have seen a case in my branch from a very senior agent/advisor where his client died in an accident and autopsy report showed that he was a smoker..How?? My senior sir told me that during autopsy it was established that his LUNGS were more blue/black than what should be for a normal NON-SMOKING guy. Moreover, his nicotine and tar level were in the higher range. These findings established two things – one, the policyholder was a smoker and two- was a smoker for quite some time..and subsequently his claim was rejected..Now i believe that if the same policyholder would have died of a natural death and this autopsy report not there, insurance company would almost never have come to know of the smoking status..

            Just wanted to conclude that yes, technology is not developed to that extent where SMOKING level, extent, and duration cannot be established but there are enough clues/hints in the wide world to establish these facts..The wider window you left open for the institutes like big insurance companies, the more chance of them catching something fishy..

            Hope this information could be of some help..

            • Thanks for the information Dhawal . I wanted to know what happens if a person can not be traced ? What if a person is missing and its claim that he might be murdered or dead ? But the body is never found ? I have head the in law that person can only be assumed to have dead after 7 yrs . Is it true !

  144. ravi agnihotri

    Dear Manish,

    Hiii…I have taken Reliance money multiplier plan with a yearly premium of 50000/-. policy term is if 10 years. & sum assured as shown in policy doc is 340000/-.
    Can u plz help me out in finding the amount which i ll b receiving after completion of policy. & wht do u personally think of ths plan.

  145. ram

    Hi manish, i’m planing take term policy of 50-70 lacks, my ctc is 1.4 l for annum. Can i eligible/go-head of 50-70 l policy, plz guide me

  146. Manoj

    I have 1 ULIP plan of TATA AIG and my home loan insurance through New India Assurance. Now I am planning to take one new term policy.
    My question is do I need to declare information about my home loan insurance of NIA?

  147. Babu

    Hi Manish,

    I wish to know whether we need to prefer anually paid premium or one time (single)premium term insurance policies.


  148. Nag

    Hi Manish,

    Need review on BSLI Protector Plus Plan(Increasing Sum Assured). please help us understanding this product.

    Thanks in advance,

  149. suvajit mitra

    PFB My Policy Details….This is about (below 3 detail) a single Policy from BIRLA SUNLIFE. I did it when I had no idea about Investment. Kindly inform me (separately) how much I will get in case of NORMAL DEATH, ACCIDENTAL DEATH, CRITICAL ILLNESS, PHYSICAL DISABILITY for Illness or for Accident.

    And, is it a good policy or I move to some other policy. Can I increase my Coverage Amount?

    Plan: Dream Plan-Life Cvg-Opt 100% -Term 20
    Coverage Status: Premium Paying
    Modal Premium*: 540.04
    Face Amount: 81,420.00
    Issue Date: 03-Jun-2009

    Plan : Dream Plan-Enhanced Sum Assured Term 20
    Coverage Status: Premium Paying
    Modal Premium*: 460.00
    Face Amount: 3,000,000.00 0
    Issue Date: 3-Jun-2009

    Plan: Dream Plan-AD&D Rider-Term 20
    Coverage Status: Premium Paying
    Modal Premium*:120.00
    Face Amount:1,000,000.00
    Issue Date: 03-Jun-2009

  150. ISHA

    Dear Manish,
    I already taken a Aviva I life term plan where i need to pay 7500/P.A for 1 crore through online I taken this plan and I given all correct information but some of my friend is telling that the private company don’t give you claim if any thing happen & we need to check some claim settlement certificate or some thing which proves company will pay you the claim

    Could you please guide me that do I have to continue with this PLAN or I can start for LIC

    Kindly send me a email

  151. Dhananjay Kale

    Dear Manish,
    First of all thanks for JAGO INVESTER , received it by flipcart yesterday. Hope to finish reading it soon, to scratch your back.

    I am 24 years old. Gets around 25 k in hand. I am thinking to take ING Life Insurance term plan (Creating Life Anticipated whole life plan), is it safe to go with ING, my father was suggesting me to go for LIC.
    I can invest Rs. 2000-3000/month, please suggest me which policy will give me more returns with risk coverage for lifetime.

    Thanking you in advance,

    Best Regards,

    • I would say better go with other companies like LIC , HDFC , Aviva or some thing else . ING is not too much discussed on our blog , so have no idea on them , hence not suggesting strongly!

  152. Abhijit

    Thanks for the sample / example proposal form of Kotak. It was very useful just to know what all the information is needed to be filled in to make it fool proof.

  153. Rahul

    Can any Insurance company is advisable to give insurance of 20 times of individual annual salary. Example, If a person is getting 3 Lakhs as annual income, is he eligible to take 75 Lakhs term insurance?

  154. Rahul

    Continuing my comment above, another example, A person who is getting 5 lacs is he advisable to take 1 cr term insurance?

    I have read some above comments, it says 10 to 12 times. So, if a person takes term insurance for 20 times of his annual salary, will this be a cause for claim rejection?

    2) Also, if a disease is happened/developed after 5 years of term insurance policy started will this be a cause for rejection since it is not mentioned while taking the policy.

    3) Can you explain how to go for a claim or steps or process, if the insurer death happens due to

    Due to desease
    Due to Accident

  155. Satish M

    I am 43 year old and had a heart bypass surgery about 2 years ago. I currently earn about 25 lacs/year. I am looking for a life term policy for 15 years for Rs. 50 lacs. Would you have any recommendations based on your experience for my case ? Thank you. Satish.

  156. chilida

    Hi Manish very useful replies indeed. Can you suggest a terminsurance policy/insurance company for people working at sea/ship.I go offshore to Qatar every second month.that is I do a month there and back in India for one month .I am Indian tax payer.Teh reason is most insurance nod their head in ‘Yes’ to everything I ask but never sure if the policy covers my nature of work.tks.chilida

    • The problem is you will be denied from some insurance companies , especially online term plans . You can get offline term plans , but in that case your premium might get increased a bit because you will be taken as more risky customer compared to others (which you are) . So better apply for offline term plans , try SBI , HDFC and Kotak


      • chilida

        thanks Manish. Yes let me try .I guess somewhere a question has to be answered to say my location of work etc., which if done and the onlibe portal accepts I guess that’s a reasonable guarantee that my nature of job is covered ,at least tehy can not fault me on wrong information.cheers .chilida

        • Chilida

          Yes .. they wil ask for your nature of job and location, But mostly the location is a drop down menu where the cities are mentioned. If your city is not mentioned , then anyways you cant take it, also the issue is once the application is declined, then when you take it from some other insurer, they ask for this information, that are you rejected by any other insurer recently, now if you are, then suddenly its logical for them to look at you with more suspicion, even though they will do their bit carefully !


  157. Ram Mohan

    HI Manish,

    Thanks a lot for the info. I’m planning to move abroad for a few years and I already have a policy. So when should I intimate the company about my move? Should it be before I move or after I move. Within how many days should I inform them?

    Secondly, I have a medical insurance from Apollo. I’m thinking of continuing this policy since I’m planning to come back to India after 4 years. Is that possible or I’ll be asked to discontinue the policy and start applying again? The reason I want to continue the policy is I’m 32 years old and I took the policy when I was 31. So premium calculations are based on that. If I have to take the policy afresh at 36, I think it’ll be more



  158. sl

    I will be taking a medical health test tomorrow for a policy I’m taking from PNB. The test will probably be administered by Met Life. They have said they will conduct blood and urine tests. Since I have never got this done before, could you kindly tell me what all will they test for in this blood and urine test?

    Thanks & Regards,


  159. ravi bhadra

    hi manish. congrats for a good article. i am a epileptic person. i am taking medicines regularly for many years and it is well controlled for many years. i want to take a term policy from LIC and want to disclose this fact about my health position. Will LIC reject my application on this ground? i am a non-drinker and non-smoker. If medical tests are conducted then is it necessary to disclose this fact as there is no health issue at present. it is also possible that i have got cured at present.

  160. Prashant

    Dear Manish Sir,

    I am earning person and my sister is non earning.(She is Student)
    Is it possible to take term plan for her or is it I should take term plan for her..I want she will be insured person.


  161. Vinay

    Hi Manish,
    LIC (an agent who spoke with me)claims that after the term policy i.e on maturity, you get double the amount invested whereas ,other Insurance companys on maturity wont offer a thing, is this true?

    • Depends which policy !

      In case of term plans, its only a life coverage and money is paid only on death , thats true with LIC and other companies. In case of endowment plans, LIC and other companies give money back in maturity , your LIC agent is just misleading you !

  162. Balaji

    Gr8 article Manish. Kotak has a plan conversion option for term plans. if we feel we are very much healthy before 5 yrs of policy cease period, then can we change our premium paid for the term plan to any other policy? is this option a benefit one?

  163. Abhijeet

    Hi Manish,I am still doubtful on Private players and looking for LIC as my option. Also I f I go for single premium Amulya jeevan for 30L SA for 25 years, premium is coming as 111120, which is half of regular yearly premium. and have respective pros n cons i.e
    Benefits: Half of regular premium for entire term
    Losses: In case of any early life loss , already paid of amount which otherwise would have been less

    so what you suggest??

  164. Avinash

    Hi Mr. Manish, Its very helpfull for Term policy buyres, But I have query about Term Insurance policy Assignment to the Bank Or somebody else

    1) If i take term insurance policy for Rs. 5000000. and i am paying regular yearly premium Can I assign My policy to the Bank . ( I have taken Housing loan From The State Bank)
    2) They are just forcing me to take term insurance and assign the policy.

    3) If i take the policy and assigned it but ifter next year, i stoped paying premium
    then what ?

  165. Shrikant Mhaisekar

    Hi Maneesh,
    I am 24 ,unmarried now,want to buy term plan of premium Rs.4500 p.a upto Rs.25 to 30 lacs cover.Suggest me term plan which is best in all aspect.Also suggest me one special investment plan to earn good amount besides RD,FD or any traditional investment,after say 25 0r 30 years of 2k to 4k per month.

    • You can go with any term plan , just remember to provide correct information . You have options like Kotak, Aviva etc

      For investments we can only suggest mutual funds if you are interested in long term prospects .

  166. Ravi Kumar

    Hello Manish Sir,
    sir i have two money back policy 20 years term of LIC (1st money back policy i give 7 premium and 2nd i give 5 premium) and one Jevan anand… recently i thought drop out these bad and full of misguide policy because in this time some insurance com. have a gud plan like term insurance,medical plan, children plan and other….basically my question is when i goes to customer care off. of lic in Delhi they tell me discontinue or paid up suggestion for my policy…. Pls. tell me these two things in detail and one more question is after 20 years LIC paid my all premium money with interest?

  167. Naresh


    My Father had purchased LIC policy for me 20 years ago, for last 10 years iam not paying the premium of the same.Now iam planning to take term Plan of ICICI, is it neccessary to show the LIC Policy detail ( which iam not paying for last 10 years)

  168. Himanshu

    If Companies Are Saying That They Will Cover Sucide Casees (Directly Or Indirectly) After One Year , Then Why They Will Increase My Premium Or Change My Terms For That Thing , If I Start Smoking After Few years Of Taking My Term Insurance . PLease Reply Me , , , , I Think Its A Way Of Indirect Sucide ?

        • No , thats not seen as suicide ! , it will be looked as violation of terms and condition of policy documents , its clearly written that incase of any death which happens due to illegal activity will not be covered, and drinking and driving is a illegal thing

          • Himanshu

            Sorry Manish , I Am Arguing With You

            But I Think Direct Or Indirect Sucide Or Any Type Of Sucide Is Also Illegal Thing . Then Y ARE Companies Covering That Thing ?

            • Himanshu

              Thats a way of looking at things . Eating lot of oily food can also lead to diabetes and chewing tobbaco can also lead to cancer , but those are not termed as “suicidal” activities, though they will lead to death . Suicide generally means doing some short term act which is sure to kill you , like jumping from some height, shooting your self with a gun , etc etc .

              Both are different activities and seen differently by insurance company and I think thats the right way of looking at it . At the end of the day you can choose what is your action, do you want to take the insurance or not , but you cant change things , for that you will have to be on the seat of regulator .


  169. Himanshu

    Good , By The Way , I Am An Insurance Seller , And I Deal With Online Insurance , That’s Y I Was Clearing That Things , Thanks A Ton For Your Support … God Bless U !


    Good Day Sir,

    I have a life gain 20yrs insurance plan where i have to pay for 6yrs premium
    bt now i want to stop it for some reason..i just want to knw will i get back
    my paid premium after some deduction or not..and how much will be the deduction…??

  171. Shankar Anand

    Hi Manish,

    I have doubt regarding surrendering ( or making paid up ) my Jeevan Rekha and Jeevan Anand plans. Can you kindly have a look below and see if my calculations are correct?

    I took a 20 yr Jeevan Rekha policy with sum assured 5 lacs in Sep 2003. I have paid half yearly premium of Rs.10,822 till Mar 2012. Hence total premiums paid till date is Rs.1,94,796/-. Bonus accrued till date is Rs. 1,54,500/-.

    My surrender value as on date is Rs. 98,500/-.

    If I take the surrender value of Rs.98,500/- today and invest somewhere with 10% compound interest p.a., I will get Rs.2,81,032/- in 2023.

    If I make the policy paid up now, in 2023 I expect to get prorated sum assured + bonus accrued till now = (9/20) * 500000 + 154500 = Rs.3,79,500/-

    Hence, I think making the policy paid up is better. Can you confirm if I am correct?


    Similarly I took a 25 yr Jeevan Anand policy with sum assured 9 lacs in Sep 2003. I have paid half yearly premium of Rs.18,772 till Mar 2012. Hence total premiums paid till date is Rs.3,37,896/-. Bonus accrued till date is Rs. 3,38,400/-.

    My surrender value as on date is Rs. 2,34,700/-.

    If I take the surrender value of Rs.2,34,700/- today and invest somewhere with 10% compound interest p.a., I will get Rs.6,69,626/- in 2023.

    If I make the policy paid up, in 2023 I expect to get prorated sum assured + bonus accrued till now = (9/25) * 900000 + 338400 = Rs.6,62,400/-

    Hence, I think making the policy paid up is better. Can you confirm if I am correct?

  172. kamini


    My Husband is 31 yrs old.

    From Oct 2010, we have BIRLA SUN LIFE INSURANCE – CLASSIC ENDOWMENT POLICY (Magnifier- 30 yrs plan) for me and my husband.

    We pay Rs.5600 per month as premium for both of us. Policy document reads that this fund invests more in equity.

    Sum Assured is 39 lacs for my husband and 9 lacs for me….. But surrender benefit end of 30 yrs worked @6% is 18 lacs for him & 14 lacs for me. It seems very disappointing.

    We dont ve any other insurance policy other than this.. Are we adequately insured?? Will this help for our retirement?

    Do u recommend to continue this policy Or drop this and take a term plan? But term plan will not even fetch any surrender benefit also, then how come is it beneficial??

    Plz help…..

  173. Alex

    I wish to take a term plan for 50lakhs for 30-35 years, preferably from LIC. The premium is around 28,000/- approximately, as taken from website.

    I wish to share that:
    a) I am heavy (BMI=35).
    b) Take treatment for thyroid disorder for the last 6 months; and, high cholesterol for last 1 year. Latest medical reports are normal, but medication is to continue. Have never been hospitalized. Never taken any medical leave.

    Approx. how much premium loading would take place. Kindly suggest.

  174. Paresh

    I have 3 polices (50 Lakhs each) from ICICI, Kotak and MetLife.

    I first bought term insurance from ICICI. When I bought Kotak then I mentioned that I have 50 Lakhs insurance from ICICI. When I bought MetLife then I mentioned that I have 50 Lakhs insurance from ICICI and 50 Lakhs from Kotak. It means ICICI does not have information regarding Kotak and MetLife policies. And Kotak does not have information regarding MetLife policy.

    After my death will my family get the insurance amount from all companies? Or only one company will pay.

    Please reply.


  175. Kaushik

    Hi Manish,

    I am 27 year old and I want to take a term insurance for 50 Lakhs. Can you please suggest me the best policy or atleast the best company to buy the policy from?