Best Term Insurance plans in India – Comparison with Charts

Which is the best term insurance plan in India ? Which Insurance company has the best claim settlement Ratio? Online term Insurance or Offline Term Insurance ? These are some of the questions which comes in the mind of every Term Insurance buyer! . So are you looking for Term Insurance comparison at one place ? Do you have all the sufficient information to decide which is the best term plan you can buy? Today I will show you all the data like riders, maximum/minimum tenure, max age till when term plan covers a person and data on the premium, Claim settlement Ratio at one place! .

Best Term Insurance plans in India – A comparision List

There are many term insurance plans in India, but all of them have different premiums and features which confuses a prospective customer to choose the best term plan for him. Below is a table which shows all the online and offline term insurance plans name, and their premiums. But before that, make sure you fully understand what is a term insurance plan ? Better read the 9 most asked questions about Term Insurance

Company Name Policy Name Mode Riders Available Premium
(1 crore SA)
Aegon Religare iTerm Online Yes 7,300
Bharti Axa e-Protect Online No 7,300
Aviva i-Life Online No 7,368
HDFC Life Click2Protect Online No 10600
Kotak e-Preffered Online No 10825
Edelweiss Tokio Life Protection Plan Online Yes 11,500
Metlife Met-Protect Online No 11,600
ING Vyasa My Term Insurance Offline NA 11,891
ICICI Prudential i-Care Online Yes 13000
DLF Pramerica U-Protect Online Yes 13,400
SBI life Smart Shield Offline Yes 16,798
Bajaj Allianz iSecure Online Yes 18400
Max NewYork Platinum Protect Offline Yes 23,500
IDBI Fedral Termassurance Online No 25,350
LIC Amulya Jeevan Offline No 33,600
Future Generali Smart Life Online No NA
Birla Sun Life Protector Plus Offline Yes NA
Tata Aig Maha Raksha NA NA NA
Reliance Term Insurance Offline NA NA
Canara HSBC Life Pure NA NA NA
India First AnyTime Plan Online NA NA
Sahara Life Insurance Kavach NA NA NA
Star-Union Dai-ichi Term Plan NA NA NA

Note : The premiums above are for 30 yrs old non-smoking male, and 30 yrs policy tenure. The premium quoted is for Rs 1 crore sum assured and does not include service tax. The premiums displayed were taken from respective life insurance companies websites and should be treated as indicative premiums.

Brief overview of Riders

Most of the term plans also allow riders along with their plans. Riders are nothing but additional benefits which you can take by paying some extra premium. Lets see some of the riders and what they mean. A term plan might be offering some of the riders mentioned below.

AD (Accidental Death) : The policy pays you additional sum assured in case the death happens due to an accident . Note that even if you don’t take this rider, the sum assured is always paid on death, whether accidental or not !.

CI (Critical Illness) : This rider gives you a lump sum amount if you are diagnosed with an illness which is mentioned in the policy . Generally all the major illnesses are covered in Critical Illness cover.

DR (Accidental Disability Rider) : This rider covers you for disability and pays you Sum assured in 10 installments per year  incase you becomes temporary or permanent disabled person.

WP (Waiver of Premium) : This rider makes sure that incase you are not able to pay future premium due to disability or income loss, the future premiums are waived off , but your policy is still in force like always !

Claim settlement Ratio of Life Insurance Companies

While deciding on a term insurance plan, the biggest point which a person concentrates is the Claim settlement ratio (read this comment) . Claim Settlement ratio of a company tells you that how many policies were settled by paying back the claims in case of death. However note that these numbers are not for pure term plans, but for any kind of policies.

Solvency Ratio of a Life Insurance Company

Another small things to look in a life insurance company is Solvency Ratio. It indicates how solvent a company is, or how prepared it is to meet unforeseen exigencies. It is the extra capital that an insurance company is required to hold to meet all the claims which arise . In other words , Solvency margin refers to the excess amount of asset the insurance company has to maintain over its liabilities. Basically, it is the amount the insurer has to stash away in order to pay the claims during emergency. IRDA requires the insurance companies to maintain a particular level of solvency margin for their smooth functioning

Below is the Table and a Chart showing Claim Settlement Ratio and Solvency Ratio of all the insurance insurance company in India. The data is taken from 2011-2012 IRDA annual Report.

Company Name Claim Settlement Ratio (2011-12) Solvency Ratio
LIC 97.4% 1.54
ICICI Prudential 96.5% 3.27
HDFC Life 96.2% 1.72
SBI life 95.5% 2.04
Kotak 92.1% 2.67
Birla Sun Life 90.9% 2.89
Bajaj Allianz 90.6% 2.86
Max NewYork 89.8% 3.65
Aviva 89.6% 5.4
ING Vyasa 88.8% 3
Bharti Axa 87.7% 2.14
Star-Union Dai-ichi 86.2% 6.7
Reliance 84.6% 1.66
Tata Aig 83.9% 2.16
India First 82.2% 6.36
Metlife 81.4% 1.69
Canara HSBC 80.6% 3.07
Sahara Life Insurance 78.0% 4.82
Future Generali 68.1% 2.21
IDBI Fedral 67.5% 6.6
Aegon Religare 66.1% 3.22
DLF Pramerica 24.5% 2.53
Edelweiss Tokio 100% (Just 1 policy) NA

Claim settlement ratio of Life  insurance companies in india

Online Term Insurance vs Offline Term Insurance

With online term plans coming in market, two things has happened. First, Customers have really got excited seeing very low premiums which insure them at throw away prices, however low premiums does not appear on the top wish list of customers and what everyone needs is very high claim settlement ratio and excellent customer service. This is where online term plans have disappointed customers, there has been huge disappointment from ICICI iCare and Aegon Religare  iTerm Plan in terms of customer service. There have been cases where customers bought the online term plan and after that, they had horrifying experiences starting from increase of premium once they bought it, No-response from the company for long duration and Long & frustrating delays in medical tests. This is what pisses off customers most and they get a feel that If situation is bad at the time of buying the policy, then what will be the response when their families for claim settlement .

Another important point which comes to a persons mind is Are private Insurance companies safe ? and what is the claim settlement ratio of the company. From last year IRDA report, we came to know that Aegon Religare did not settle even a single claim out of total 7-8 claims they got . However, this years IRDA report (2009-2010) shows that its better at 48% settlement ratio for Aegon Religare, but Life Insurance is not a maths exam where 90-91% marks will make people happy. We all need 100% or 99% at least !. Because most of the companies are very new, the trust factor is missing from public. Note that not everyone who bought online term plans had bad experience, there are many buyers who got very good response and good customer service, but it was a smaller section .

So if you a kind of buyer who understand Insurance very well and how things work in this area and you also have trust in online term plans then you can go for online plans. But if you are not comfortable with it, then you should try the old way of buying insurance through an agent. However it would cost more than online term insurance, which many are comfortable with! .

If you concentrate on the claim settlement and trust factor then the only option is LIC of India Term Insurance (Jeevan Amulya). However if you are fine with the pvt Insurance, but still want the best features, I personally see Kotak-preffered Plan as a good option. The premium for Kotak-Preffered is the lowest in the offline term plans and this plan has good riders along with other good options. Term Plan from LIC is obviously the best option if you do not believe in the pvt companies and insist on high claim ratio, but premium for LIC term plan is too high . So I think you can consider a mix of the LIC term insurance and any one from Pvt insurer. Soon you will also see LIC online term plan

Special Features in Some Term Insurance Policies

There are some term plans with very different set of features. Lets have a look at some of the those. These features can help you further in your decision.Term Insurance policy features

Which term plan do you have currently and incase you planning to have one, which one those the above will you buy ? Will it be LIC Term Insurance or some one else and why ? Also share, If you need any other factor before choosing the term plan ? Which one do you think makes sense out of online and offline term plan ? Give your suggestions .

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By Manish Chauhan on December 23, 2010 · Posted in Life Insurance

Tags: , ,

1,736 Comments | Post Comment

Hemant Beniwal says:

Manish

Very well researched article.

My 2 cents on selection of term plan:

Kotak Preferred term is least expensive term plan available offline. Its death claim ratio is bit lower than LIC but premium is just half of LIC term plans. If you give right information at the time of taking policy – there is hardly any chance of getting claim denied. Claim settlement normally stuck when you or your agent have filled wrong information or hided things. We normally suggest that one should divide their sum assured in 2 policies from different insurers. It’s having 2 benefits – first it gives flexibility if you want to reduce your sum assured in future due to any reason & second which is bigger benefit in case one of your claims is denied your representatives can reach ombudsman & show that other insurance company has cleared the claims on same grounds. This increase chance of getting claim.

Posted on December 23rd, 2010

Sud says:

Hello Manish,
Excellent comparison between different companies and their term plans+claim settlement ratio. I have just went for LIC Term Plan with 9060 yearly premium 30L risk cover few days ago , because I think even in future I need to increase my risk cover because of inflation, I would go with other private players, which might be 5-10 years down the line, giving me enough time to look at the claim settlement ratio of these companies. I decided after lot of thought, and I feel I am very much right :). Plus your comment about it at the end encouraged me! Thanks Manish :)

Posted on December 23rd, 2010

steven says:

Very nice informative article as always.
Last year I had come to know about Term Insurance from this blog.
I think in one of your previous post or some other website there was a reference to the Annual Report by IRDA. I had seen that the claim settlement ratio of LIC was the best (95.48% in 2008-09 pg no:146 ). So i had taken the Amulya Jeevan plan in jan 2010.
Personally i feel the most important thing is the Claim settlement ratio.
From the list above
– The cheapest insurance is MetLife which costs 5450.
– LIC Amulya Jeevan costs 14600.
The difference is 9150 which comes down to 762.5 per month.

Now since we are taking a term insurance to protect our families from
the liabilities which might arise in case of death. The Settlement of the claim becomes the crucial factor. Even though we pay an extra amount to 762.5 per month ( which is equal to the cost of 4 to 5 movie tickets in metros ) we can be at peace that in case of death the large sum of money would be given to our family.

Instead of saving those 762.5 rupees per month and investing or spending somewhere it would be wise to pay for a peace of mind.

Posted on December 23rd, 2010

Rakesh says:

Manish,

Excellent article, very nicely put. Thankyou for your efforts.
I have an old term plan from LIC, recently did not renew my Aegon religare term plan and canceled Icici iprotect plan as i was not satisfied by their service.
The next choice that i have is Kotak.

Rakesh

Posted on December 23rd, 2010

Jitendra says:

Hi Manish.
You have written a self explanatory and unbiased article. Kudos for it.
I have taken LIC Jeevan Amulya policy. And I will consider to get another policy from PVT company.
LIC has a huge trust factor. So I don’t mind at all paying little bit extra premium to LIC. No why I am calling it ”little bit” is due to the fact that we are taking term insurance for death benefit. And small amount few hundreds should not matter.
Thanks a lot.

Posted on December 23rd, 2010

rahul says:

Excellent article Manish and great contribution from other readers as well.

I have couple of questions
1. Can NRI’s buy Term Life Insurance?
2. How can they buy them and what would be the process of claim settlement if needed?
3. In the first chart, Kotak Preferred has “X” in all the 4 categories (AR, CI, DR, WP). How is this policy better except lower premium.

Forgive my ignorance.
Regards,

Posted on December 23rd, 2010

Manish Chauhan says:

Thanks for your suggestions on Kotak . Why do you say that its death claim is “bit lower” than LIC. Most of the people would call it huge ! . 95% to 87% is huge ! . Is it not !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Sud

Good to know that you already have the term plan for yourself ! . However just wanted to know if that is sufficient at this point of time ? If anything has to happen today to you , will the term plan from LIC be good enough to cover every thing for your dependents ?

I think its better to get covered for the higher amount if the situation demands , what do you say ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Steven

Yes , that makes sense . But the difference is huge in rupee terms and percentage terms compared to the cheapest one . What are your opinions on mixing the insurance . one from LIC and other from metlife ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Rakesh

I would suggest dont get too disheartened with the bad service. As the online model is very new in India , it might take some “extra” time , but let it go through and what a big deal if it arrives 2-3 months late in your hand .

Even kotak will not be that great in service for its online term plan .

Manish

Posted on December 24th, 2010

steven says:

Yes i plan to take another term insurance when my liabilities increase.
currently i am single and no dependents. Later when i have liabilities i will take sbi shield with increasing cover or some other with high claim settlement ratio.

Posted on December 24th, 2010

Manish Chauhan says:

Jitendra

Ok , even though its “little bit” , its 100% or 200% more sometimes compared to other insurers, what are your views on mixing LIC and other for 50:50 ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

OK nice . So conclusion is that at this point of time, if you die , your family will be fine with that much insurance money ! .

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Rahul

1,2) Insurance companies requires few things for giving term plans.

a) Person is required physically for medical exams
b) Address proof in India
c) some source of income in India

If NRI’s can provide these , he can get term plans

3) Despite of being offline , its premium is very very low , it also have all the riders and its settlement ratio is also good , not the best but seems to be good . these few things itself make it good , not much apart from this .

Manish

Posted on December 24th, 2010

steven says:

i took the policy this year because the premium is less. i took a 35 year 50L policy. Actually right now there are no liabilities so they do not need that much money now :)

Steven

Posted on December 24th, 2010

Ramesh Desai says:

Excellent write-up ! Very informative !!

Posted on December 24th, 2010

steven says:

I am an NRI. i have LIC Amulya Jeevan
It takes just 1 day to apply and 1 day for medical test which would be done at one of their related hospitals. You could ask the agent to come along with you for the medical test.
Unfortunately i received the policy document after 3 months to my india address. Later on you can pay all your premiums online.
Also Dont forget to take a proof of your income outside india.

Steven

Posted on December 24th, 2010

jig says:

Good one manish,
should we buy term plan with riders or without riders?

As some of them having riders and some havent, what we should do in such cases where riders are not available?

BDW excellent gathering. its looks same like as on apnainsurance.com. don’t you think so? :)

keep sharing..

nJOy

Posted on December 24th, 2010

Hemant Beniwal says:

@ Mainsh

No it’s not huge – for few reasons:
87% is superb – if we consider how agents fill these forms.
Average claim settlement ratio of private cos is less than 85% – kotak score is better.

Averages some time creates illusions – average age of your readers is 28 but their can be a reader of 98 & also 16.
But still let me add few more averages ;)
Average claim per policy:
LIC Rs 73775
Private Insurers Rs 172000
Kotak Rs 298382
We can’t directly compare LIC with Private Cos due to 2 reasons:
1. The kind of small sum insured policies that LIC sells
2. Establishment date of Cos – older policies will always have a better death claim settlement ratio.

Posted on December 24th, 2010

NARESH SHARMA says:

Good one Manish…we are sensing Health Insurance may be on the same lines…our needs and requirements grow faster than anythings…

A big clap for well researched article!

Posted on December 24th, 2010

Senthil Nathan says:

Kudos for an Excellent Article Manish.

After reading several articles in blogs related to Term Insurance My Understanding regarding Term Insurance is that Term Insurance Premiums tend to decrease over period of time.So I guess it will make sense to take the policy for smaller periods and then purchase a new policy at the end of the coverage period rather than going for a single policy of a longer period.

Any comments on this idea ?.

Regards,
Senthil

Posted on December 24th, 2010

bharat says:

i struggled almost for one month to get this data.. I bought KOTAK term plan this month through agent and satisfied too after reading this data and your views for KOTAK.

Post is very nicely illustrated which is easy to understand and compare. :-)

I must appreciate your effort for every post.

Posted on December 24th, 2010

Srikanth says:

Fabulous article, Manish! Thanks for the efforts (both research and presentation).

Regards,

Srikanth
FundsIndia.com

Posted on December 24th, 2010

srg says:

hi this is timely. just planning for term insurance and had shortlisted kotak and hdfc. Also debating the online and offline option

Posted on December 24th, 2010

nitin says:

Hi Manish,

Excellent end to 2010 with such a important article !!

I have Birla Dream plan life cvg for 25 yr term…I am 31 yrs old..I am paying a premium of 17k per annum for a coverage of 70 Lac with no riders..I bought it 2 yrs back.
I am not sure if it’s really a term plan..but when I bought it premium was very competitive to term plans.

Thanks again for excellent article.

Posted on December 24th, 2010

S Pani says:

I have taken a LIC Jeevan Anmol Policy @30 lakhs ,Premium:Rs.21,510.00.age:39yrs.Now I am 42yrs old, & intend to take a Rs.1 Crore policy but I find that the Online policies are not vailable at Rourkela,Orissa.The off line policies have quoted very high premium.
I am in adilemma.
S.Pani

Posted on December 24th, 2010

Prashant says:

Hi Manish,

Execellent article manish , gives in depth idea of Term Plan, I have already bought a term plan plan from Kotak around 3 years back for 25 Lakhs . Planning now to go for LIC Term Plan for the same amount. I think even though the premium is high in case of LIC , most of us would prefer LIC due to the claim settelment ratio which is quite better then the private players
A superb article from you !!

Posted on December 24th, 2010

Mitr Singh says:

Hi Manish,
Thanks for wonderful article.
I am planing to take a term plan but due to some confusion i just took it on hold. My mind is going for LIC Amulya Just because of Claim settlement ratio, trust factor and I will not mind to pay some extra for peace of mind. I agree with you for 50:50 (Lic : Pvt) but the first 50 is LIC and later will go for some other one.

Great going Manish, May god bless you.

Mitr Singh

Posted on December 24th, 2010

Prasoon says:

On SBI website, premium (without any rider) for 30 yrs old male comes to 9161 for 50L for SBI Smart Shield Level Term Assurance Policy. You have mentioned 14,567. Am I missing something here?

Posted on December 24th, 2010

Shilpi Chaudhry says:

Hi Manish,
your research on term insurance plans in the market has been really enlightening. My husband plans to have 2 term insurances of 50 L each. we have concluded to ICICI prudential, Aegon religare & Kotak. Pls suggest if this is the right choice or we shd make changes. we r in a fix..
thanks for ur help!
shilpi

Posted on December 24th, 2010

neeraj saini says:

sir,
if you say lic sell small sum insured it will be wrong rather we can say that private companies focus only on high sum.

Posted on December 24th, 2010

gaurav says:

Manish;

Excellent article. Well compiled.

In my case, I already have a term insurance policy from ICICI. Over the next couple of years I plan to sign up for another one and will at the time look at the feedback on the online policies. Who knows, maybe LIC will start an online policy by then too.

It would be good to see the claim settlement ratios of the pvt companies split into online / offline policy settlement though I doubt they are obliged to provide it.

Posted on December 24th, 2010

Sunil says:

Guys,,
The discussion on the term is very informative here.. thanks to all.
In my case, I have planned everything for my family like
bought 2 plots for my 2 kid – for future education purpose
planning to retire early by age 40 itself ( 35 now ) with 40L in hand which to be invested in POMIS with monthly income as 30k for rest of years leading a simple life as a private college lecturer in my home town( not a city )

So the question is do I need term insurance now though I have set a permanent income to my family. Please suggest on this..

Posted on December 24th, 2010

Krish says:

Very informative article. Obviously LIC is way ahead of others. I understand the table refers to claim settlement ratio for all types of policies in general. The ratio further comes down for the private players if the comparision is done for term insurance alone. In this context, even the 50:50 argument may not be a great suggestion.

Posted on December 24th, 2010

Arindam says:

Hi Manish,
It’s an amazing co-incidence that by the time I completed my research on Term insurance with riders (which is today morning) that I saw this blog and the recommendations are same. I feel confident that I am on the right track. And thanks a lot for making it easy to choose for millions of ordinary folks like us.

Posted on December 24th, 2010

Harish says:

Manish

Kudos to your effort and detailed analysis on term insurance plan. I believe it will help many of us in choosing the right product.

I must say time to time you have produced many good and wonderful article, and I think this article you can put in ‘Hall of Fame’ :)

Thanks & Regards
Harish

Posted on December 24th, 2010

sb says:

Very good article. Much effort has gone into putting the data together. Congratulations!

Are you planning on doing something similar on health insurance sector? That would be of benefit to a lot of people I am sure.

Posted on December 24th, 2010

Dhawal Sharma says:

MANISH – Now this is what i called RESEARCH PAPER..Excellent and Superb..I have forwarded the link to many of my clients..Just two things i want to add..
ONE, if you have filled your form properly and provided accurate information/documentation while applying for the insurance, and later on the claim is GENUINE, then there is no way on earth that claim will not be settled (Irrespective of the claim settlement ratio)..
SECOND, IRDA report with its claim settlement ratio part, nowhere mentions it to be DEATH CLAIM SETTLEMENT RATIO..major chunk of the LIC policies are endowment or moneyback policies which are settled very nicely by LIC (In some of the cases, final amount cheque – post dated – reaches the client even before the last date of policy) and most of these endowment and moneyback policies are running for last so many years so they get settled very smoothly. So this factor should also be kept in mind that its not DEATH CLAIM SETTLEMENT ratio but just claim settlement ratio..If somehow death claim settlement ratio be procured for every insurance company, then on an average, every company will come around to 90% to 92%..

By the way, the IRDA report portion which you have produced above in your article shows CLAIMS REJECTED and CLAIMS PENDING by LIC are 17750 and combined total of PVT. PLAYERS for these two catagories is 6500 (Major culprits are BAJAJ, ICICI PRU, and MAX)..huge difference, isn’t it..and the ratio comes out to be 75:25 in favor of LIC for CLAIMS REJECTED and CLAIMS PENDING..means out of every 100 claims rejected or pending in the insurance sector, LIC accounts for 75 of them ;-)

Posted on December 24th, 2010

Manish Chauhan says:

Hemant

Ok got it :)

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Neeraj

No , I thinks its appropriate to say that LIC sells low SA . we are talking about pure term plans here and the average term plans SA is in range of 30-40 lacs . Its the right SA for most of the people . I would say every that is less .

Why do you think pvt insurers focus only on high sum ? Examples ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Steven

I am still not sure and hence want to do a small exercise . Can you list down with steps A,B,C … if you die today how that 50 lacs will help your family , how much will make up for monthly income , how much for paying off debt , how much will help in investment for your children future ! . Can you do that .. a short one .

Manish

Posted on December 24th, 2010

Hari says:

Hi,

I am having Kotak preferred Term plan for 50 Lacs (for 30 years). I am paying half yearly premium 7846 (yearly 15,692). In your article the premium looks 7,252 per year. I am currently aged 32 and started this plan on 28. Why the difference in the premiums?

Thx
Hari.

Posted on December 24th, 2010

Manish Chauhan says:

Steven

So the medical is done outside Indian at your country or you have taken it while you were in INdia ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Hari

How was your medical test ? was it normal or there was some problem , they might have increased the premium . It might be increased in you are a smoker . Also the case may be that earliar it was higher and now its reduced . you need to enquire on this . Let us know what was the case !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Ramesh

Thanks , are you planning to buy term plan for yourself , let us know how do you plan to buy it ? Criteria ?

Manish

Posted on December 24th, 2010

shashank kashettiwar says:

Very nicely put Dhawal! What you say about the death claim settlement is very very correct. Nobody can deny a genuine death claim. The systems put in place by the regulator are quite capable of doing that and the ohter mechanisms created by the laws of the country are also there in case.
Why people are so focussed on this claim settlement ratio bogey is quite puzzling. Splitting the covers in two so as to force one insurer through ombudsman and all that is very odd indeed even if it sounds to be sensible.
Actually looking at the LIC’s premium figures and the claim ratio even such conclusion can be drawn that their exorbitant pricing is allowing them to pay claims generously which shouldn’t have been paid in the first place. A case of robbing a huge number of Peters ,that to with astronomically high extra premiums to pay a small number of Pauls again a paltry sum as covers. And what is so big achievement in it?
Manish please don’t fan this claim settlement ratio bogey fire.
The regulator and the systems are robust enough to pay up a genuine claim. And where from are we collecting all such data. From that reglator only, no? Still we behave as if the regulator is tracking all such figures for the sake of just data collection only!
If this is the way learned and educated are behaving even after receiving so much wisdom from this blog – being influenced by the ‘trust factor’ in a single company, it is not a surprise that in our country ‘blind faith’ is such a prevalent factor influencing the uneducated and the rural populace in big way.

shashank

Posted on December 24th, 2010

Manish Chauhan says:

Jig

Should you buy riders or not is not a question ! . Its for you to answer . Do you want them ? Tell me what happens if you take term insurance, but you become disable , it will not pay anything if you dont have disability rider with that . So its something you have to answer that you want it or not !

Manish

Posted on December 24th, 2010

Sam says:

Hi Manish,

Just one more query….how does single premium fare against yearly premium.

On a single premium policy from LIC for 35 years, the discount is coming to almost 55%.

I want to buy term insurance for of 1 Cr, I am looking at getting Rs 50 lacs as single premium Amulya Jeevan from LIC for 35 years (till age 70), balance Rs 50 lacs split into 25 / 25 lacs from 2 other insurer’s on a yearly premium basis for 25 & 15 years respectively.

I estimate my insurance requirement will go down over the next 10-15 years as hopefully I will be able to get my self debt free, set up a sizeable fund for my child’s education along with my retirement fund.

Kindly advice if this strategy makes sense, I am 35 years of age & accordingly, I will have Rs 1Cr cover till age 50, Rs 75 lacs cover till age 60 & Rs 50 lacs cover till age 70.

Thanx

Sam

Posted on December 24th, 2010

Amit says:

Thanks for informative article.

Posted on December 24th, 2010

Manish Chauhan says:

Naresh

Yea .. Health Insurance will also come this way in some time :)

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Senthil

A little flaw , when you take it second time you will get the policy with higher premium as your age will be higher ! :) . Nice try !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Bharat

Thanks for your appreciation , do you agree that its premium is one of the lowest :)

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Srikanth

Thanks for the feedback and the RT :)

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Srg

Nice to hear that it helped you on time , so which one you finally decided ?

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Nitin

To get more idea on Birla Dream plan , read this discussion on forum : http://www.jagoinvestor.com/forum/query-about-birla-sunlife-dream-plan/779/

Manish

Posted on December 24th, 2010

Manish Chauhan says:

S Pani

Why do you want the change ! , Is the premium too much for you ?

Manish

Posted on December 24th, 2010

Pankaj Parashar says:

the first comment is… very well researched…which i dont agree with….
SBI Life doesnt offer shield anymore…
it has got two new plans… Smart Shield (for Sum Assured 25 lakhs & above) & Saral Shield (upto 24 lakhs)
The premium for the given scenario in the post for Smart Shield comes out to be
9161 inclusive of service tax…..
Apart from that the Accidental riders offered with Smart Shield have lower premium than most of the riders offered in the market in same category…
This is not a critique of this article…. just wanted that proper information should be given to the blog readers…..
I havent read any comment apart from the first line of first comment..so if anyone has pointed out this..it is good…..
I would like to request Manish to update the chart provided…. also the special feature section….
And I guess the premiums for other companies should also be checked from their websites where they are easily available….
then only we could call this well researched…
P.S. : am an admirer of the great work being done by Manish, hope my comments will help you.

Posted on December 24th, 2010

Manish Chauhan says:

Prashant

Hmm.. I would say you cant just go with LIC just because of claim settlement ratio , You have to understand that its not a variable which decides the chances of your claim settlement . Have a look at this comment : http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-18077 and http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-18092

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Mitr

I would say you cant just go with LIC just because of claim settlement ratio , You have to understand that its not a variable which decides the chances of your claim settlement . Have a look at this comment : http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-18077 and http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-18092

Posted on December 24th, 2010

Basavaraj says:

Hi Manish,

2 to 3 months of delay means too late right? One more thing, if death occurs within that period then Insurance company will settle the claim?

Posted on December 24th, 2010

Manish Chauhan says:

Prasoon

I actually took the data from policybazaar.com , Even I saw that what you say is correct . I will have to correct it from my side

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Shilpi

Any term plan is right choice as far as you give right info in the form and take all precautions to provide right information . I would suggest go with Kotak + ICICI

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Gaurav

Two points.

1) You cant expect LIC to come up with online term plan ,thats not going to happen ! . LIC has huge network which reaches all over and its structure is such that coming up with online term plan is anti-LIC and its Govt owned ! :)

2) IRDA does not publish the different data for offline and online plans , it just publishes the total claim settlement numbers !

Manish
Manish

Posted on December 24th, 2010

Manish Chauhan says:

Basavaraj

No , Even with offline term plans it takes close to 1 month for policy to come in your hands, given that its fine if one gets a online plan in 2-3 months. I consider it fine .

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Sunil

Do you need life insurance ? This question depends on your current situation , if you die today how will your family survive ! . So take the insurance which they would need in your absense ! . http://www.jagoinvestor.com/2009/11/how-much-insurance-cover-is-enough.html

Manish

Posted on December 24th, 2010

Hari says:

Hi manish,

I am non-smoker. During medical test there was a second test for HepB which i am affected. But can i continue with this amount or switch to some other product ? anyway i will verify with them..

Thx
Hari.

Posted on December 24th, 2010

Manish Chauhan says:

Krish

I think if we seperate it for term insurance, it would be low for LIC , because for pvt insurers term plans are big chunk as overall percentage . For LIC endowment plans make huge chunk

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Arindham

good to know that . which one did you choose for yourself !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Harish

thanks , I do not consider this as the best one . As this is just a knowledge article, I consider those articles as hall of fame which is regarding psychology changing , which you generally dont read anywhere .

This particular article can be done by anyone who can spend some time finding information on internet !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

sb

Yes, but not very soon !

manish

Posted on December 24th, 2010

Manish Chauhan says:

Dhawal

I myself understand this fact that claim can not be rejected if one fills the form and advocated this myself, but you know public :) .

http://www.jagoinvestor.com/2009/02/are-private-insurance-companies-safe.html

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Hari

If there is some medical issue, then the premium will be higher only , infact now if you go to another one , they will charge more premium as your age is higher now compared to the time when you took the policy . You can take the quotes !

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Shashank

I myself agree with Dhawal and your comments , and for number of times I have advocated the same, but as you said , common man does not think this way and have blind faith in LIC .

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Sam

Your comment that single premium policy is in discount of 55% is very wrong ! . Its not the right way of looking at it . You have not considered the time value of money .

Its like this, You pay me 1 lacs today and and I will pay you 3k per year for next 50 yrs ! . That way you will get 1.5 lacs just by paying 1 lac , thats 50% . Right ! . In that same way when you pay Rs 1 today its the same thing that you are paying Rs 2 in next 20 yrs in installments .

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Dhawal

Added your comments in the main article :)

Manish

Posted on December 24th, 2010

Manish Chauhan says:

Pankaj

Yes I accept , Actually I took the premium data from policybazaar.com and I guess it had old data. Also I think premium data here is important but this is not poeple are looking at right now , because finally they will be calculating the premium themselves .

There is one person who pointed out this mistake apart from you . thanks for your comment . I will be changing it soon :)

Manish

Posted on December 24th, 2010

herge says:

Dhawal,

Agree with your points but this:
“If somehow death claim settlement ratio be procured for every insurance company, then on an average, every company will come around to 90% to 92%..”

is pure speculation. Since you work for Kotak let us know what it is for Kotak.

Posted on December 25th, 2010

Manish Chauhan says:

Herge

I think the fine. As most of the companies major market is endowment or ULIP’s , term plans are smaller section , so if we just look at term plans death claim rejection ratio , it should be in range of 90% . Thats my way of concluding it . What is your counter argument on this point ?

Manish

Posted on December 25th, 2010

Dhawal Sharma says:

@Hari – As you have mentioned that you have taken up Kotak’s TERM PLAN about 4 years ago, want to share the fact that Kotak’s premium quote for term plan were slashed by almost 40% around Feb 2010..So if you will calculate premium at KOTAK site today with your date of birth you will find the difference..

Posted on December 25th, 2010

herge says:

Agreed its smaller but dont see why this means 90% of that small no will be settled. We still need data.

Posted on December 25th, 2010

Manish Chauhan says:

Herge

Yes , we need data for that 10% rejection , but we can guess it very well and its “Wrong information or incomeplete information” at the time of filling up the form , you can see many people want to not disclose that they are smoker or have some illness , I dont understand why they feel they are smarter than companies .

Manish

Posted on December 25th, 2010

Manish Chauhan says:

Herge

Yes , we need data for that 10% rejection , but we can guess it very well and its “Wrong information or incomeplete information” at the time of filling up the form , you can see many people want to not disclose that they are smoker or have some illness , I dont understand why they feel they are smarter than companies .

companies do not give segregated data to IRDA on this .

Manish

Posted on December 25th, 2010

Manish Chauhan says:

Dhawal

Is it not companies responsibility or professional behavior that they adjust the customer premium also when the old premium changes, What is the logic of continuing the old premium for older customers ?

Manish

Posted on December 25th, 2010

pattu says:

Didnt want to comment earlier since I wanted to see how others react. Her are my 2 paisa:

1. “If somehow death claim settlement ratio be procured for every insurance company, then on an average, every company will come around to 90% to 92%..”

If we are going to look at facts and figures the above statment in the absence of data makes no sense and is misleading. The only fact is that death claim data is not available. Period. So this a pure guess.

2. Did you see table 12 of the IRDA report:
TABLE 12 INDIVIDUAL DEATH CLAIMS : LIFE INSURERS (2009-10)

So I think I can safely assume this does not contain any maturity claims
So the privates are about 8% lesser in claim paid.

Claim rejection ratio is a little misleading. This should be as small as possible for a trusty company and not as high!

96.54% for LIC in your table above is the same as that in table 12 of the report. So it related to death claims. Of course death of ulip, endoment and term policy holders.

This statement is also for deaths:
The percentage of repudiations for LIC was quite low
at 1.21 per cent (1.33 per cent in 2008-09) as against
7.60 per cent (9.97 per cent in 2008-09) for the private
life insurers.

3. Group insurance claims are more or less the same for everyone acc. to table 13.

4. Being honest and truthful is mandatory while getting an insurance. But this doesn’t mean claim settlement will be peaceful. One may have to go to ombudsmen if there is delay. LIC or others delays can occur.

5. The (young) readers of this blog must realize the author, the writer of this comment and several other contributors are relatively young people. My guess is their experience with actual term insurance claim settlement is rather limited. So if you are in doubt about which policy to buy inspite of looking at the above facts seek out someone with experience.
Seek out some who works in the claims dept of an insurance company and get off the record insight from them. This is worth the effort since we are talking about the well being of your family when you are not around.

6. I have said several times before that I trust LIC. Not because it is backed by the govt and other usual reasons but because it is a dinosaur. I trust it not to probe too much into my policy and about my life when I die. It is likely to delay the settlement of 60 lakhs to my wife. But I have instructed her to wait for a reasonable time and then go to the ombudsmen. I have also told her she could approach someone like PV Subramanyam, Manish or Hemanth for help (for a fee of course) to get the money.

Wish you all a happy X-mas

Posted on December 25th, 2010

pattu says:

The data you have given is death claim settlement ratio only please check page 122 (in the pdf file) of the report. Please correct the article accordingly

Posted on December 25th, 2010

Dr Firoz says:

This is my first comment…i cannot express my gratitude towards manish in words…i am a orthopaedician who literally had no knowledge whatsoever about personal finance…

a chance encounter with an insurance agent trying to sell an ULIP policy (which at that time i thought as a godsend) made me search the net and i came across this blog..and my life has changed completely since then…

this is a very informative blog..what is better is the comments section..i have learnt so much, but still need to learn a ton…

anyway in my humble opinion, every novice like me should at least read a few good books like Rich dad Poor dad so as to gain the correct perspective and then this kind of blogs will enrich him..

Regarding Term insurance, after going through above and also tinkering with various premium calculators,

i. take initial term insurance from LIC (costly but peace of mind)
ii. after a few years evaluate pvt players and take term from them with riders
iii. accidental death benefit should not matter much
iv. critical illness and permanent disability are much more important. I have found that the CI charges are much more, so whether to take CI rider with term plan or another health plan?

Kindly comment on my assumptions and show my mistakes (which i am sure are there as i am novice)

Thanks again

Posted on December 25th, 2010

Manish Chauhan says:

Dr. Firoj

Thanks for your comment :) . I feel honoured . Regarding your points

1) that decision is yours if you want to go only with LIC , I would suggest read Dhawal comment on this comment section .
2) Thats fine
3) In all cases accidental death is highly probable, and you can get extra sum assured with a little extra cost . So depends on how you take it .
4) I agree .

There is a book coming on personal finance purely for Doctors by PV Subramanyam , Keep an eye :)

Manish

Posted on December 25th, 2010

Manish Chauhan says:

Ooops . I just saw that . My bad . I have updated the article .

Manish

Posted on December 25th, 2010

jig says:

At the same time your tenure will be less too. :)

Posted on December 25th, 2010

jig says:

why you need different claim ration data? i mean is there any different methods they are following for processing claim considering type of buying?

i dont think so..

Posted on December 25th, 2010

Manish Chauhan says:

Jig

Yea tenure will be less , but why do you want it to be less , you can take the plan for higher term and close it anytime you want . there is no problem in that !

Manish

Posted on December 25th, 2010

Manish Chauhan says:

Jig

I am saying because people are more concerned with online plans , so they can see how much is the ratio for online/offline seperately

Manish

Posted on December 25th, 2010

Manish Chauhan says:

Amit

thanks

Posted on December 25th, 2010

pattu says:

okay. I think you title it as Death claim Settlement Ratio. otherwise it is misleading in the light of some of the comments above (you know by who ;))

Posted on December 25th, 2010

PolicyWala says:

Excellent comparison. Must read for all the people, who are looking to buy term insurance. Keep it up.

Posted on December 25th, 2010

Manish Chauhan says:

Policywala

Thanks :) . I think you are the right resource to comment on how authentic and fresh is the data on the comparision sites . I found that some of them had stale data .

Manish

Posted on December 25th, 2010

steven says:

India

Posted on December 26th, 2010

Jana says:

Manish,

I bought LIC amulya Jeevan 3 years back for 25L, ICICI Prulife 15L & 10 L, Aegon Religare 10L & 10L & still continuing paying premium. All polices are in force & medical tests were conducted at the beginning. There is no medical issues at that time.

My question here is, now my Blood Pressure levels are little increased & I’m taking medicine for that. Do I need to inform my medical status to insurance companies or keep silent ? How will these Insurance companies will react at the time of claim i.e no BP during medical tests & developed after 3 years of insurance status (in force).

-Jana

Posted on December 26th, 2010

Manish Chauhan says:

Jana

No , its not a major change in your health . You dont need to inform them on this . They should pay the claim without any issue as this is something which happened after taking the policy and not at the time of taking the policy

Manish

Posted on December 26th, 2010

jig says:

Sorry manish
but my question was to Mr Gaurav.

keep sharing

Posted on December 26th, 2010

jig says:

Well,
take an example that i gave wrong information. that for what purpose they do medical test?
and once the medical test done by company means they are aware with the medical condition of the applicant. and they accept the proposer with that condition.

now after 10 years i die, how they can reject the claim on basis of wrong information? what is that criteria, what they are gonna check?
Manish, i think this information will be quite useful if you can publish here.

Dhaval

how the kotak treating such cases? can you elaborate that procedure for claim settlement?

thanks

Posted on December 26th, 2010

Manish Chauhan says:

Jig

The medical test they do are not quiet detailed , it does not catch major things . So if you are smoker or had some illness in past (but not at the moment) , the medical tests are not able to catch it . The medical test they do is to make sure they catch some things which even you might not be aware .

Manish

Posted on December 26th, 2010

Balaji says:

Hi Manish,

Thanks a ton for the article. I am 31 yrs old working in a software firm. Got married recently and have a 5 mnths old girl. I have not taken any life insurance sofar. Now I am planning to take Term insurance. After some research, i have finalised the following.

1. Planned to take SBI smart shield with 25 lakhs SA. Additional critical illness rider for 5 lakhs and Permanent disability rider for 25 lakhs
2. After 3-5 yrs, i will take another Term insurance policy for 25 lakhs

your comments please.

Regards
Balaji T K

Posted on December 26th, 2010

steven says:

I am single and my parents are not dependent on me.
Parents don’t have any debt.
So if i die now 50lacs would be extra cash for parents.

Posted on December 26th, 2010

James says:

The IRDA report clearly says Death claims so it does not include maturity payouts. Unfortunately for the privates and their agents LIC has the lowest claim rejection ratio. I think the table you have given above should clearly mention about this.

A simple search ‘Death claim’ in the pdf file would have revealed this

I am surprised to see that the research put in does not match your own previous standards. Blind followers of your blog will be misguided by such hasty work.
This also allows agents like Dhawal to further spread misinformation.

– A disappointed fan

Posted on December 26th, 2010

Manish Chauhan says:

James

Yes , I accept I did not put much effort in finding this part , my apology . However the fact that If a person takes all the effort in putting right info while taking the policy , his claim can not be rejected still holds true . Also another point is that this death claim is for death arising for policy holders of all kind of policies like term plans, endowment and ulips and as LIC has the biggest market in Endowment plans and ULIPs which are small ticket sizes unlike term plans, the payout is not such a big issue .

Manish

Posted on December 26th, 2010

Manish Chauhan says:

steven

The only question is are they financially dependent on you or not . If not , then you can miss this

Manish

Posted on December 26th, 2010

Manish Chauhan says:

Balaji

Looks fine to me , As far as you are careful while providing the information in the forms , any term insurance should be ok . Taking riders is good :) .

Manish

Posted on December 26th, 2010

James says:

Thanks for your reply. No apology reqd though.

LIC does have a lot of ulips/endowment etc. compared to term plans. This has a lot to do with Indian buying mentality. The same mentality exists while people buy from private players. Private players also have business from non-term plans more.

The key point is sums assured in non-term plans are low. So if private players don’t honour these claims how will they honour big amounts in terms plans. The reasons of the claims being the same: death.

People don’t fill up information carefully. That is the same on an average for LIC and for other players.
I would like to think the privates latch onto the misinformation more than LIC does.

Yes if all information is correct claim cannot be denied but it can be delayed. High the sum assured I fear the chances for delay will be more. Sometime back shubramani.com had such a story.

Posted on December 26th, 2010

shashank kashettiwar says:

Balaji,
You are going to commit a very common and grave mistake of life insurance planning. What is it? Buying 25 lakhs now and deciding to buy 25 lakhs 3 yrs down the line. This is akin to PLAYING GOD. Means as if you know for certain that nothing is going to happen to you within coming 3 yrs! Don’t do this. Start with 50 lakhs or more and then reduce it, if at all you don’t want to carry more insurance.

(From your brief profile I would say even that 50 lakhs cover is also underinsurance, but let it be!)

shashank

Posted on December 26th, 2010

jig says:

can dhaval say something on this?
i mean still i m not fully agree or satisfy with answer.

Whatever tests they followed , it must be the minimum requirement for accepting the proposer by applicant for getting insurance. In short they are ok with the details filled in and they have cross varified by doing medical test of applicant. also as per IRDA they have 2 year span to complete varify those details.

Waiting for the Dhaval’s reply on this as he is attached to one company.

Regards

Posted on December 27th, 2010

Dhawal Sharma says:

There are certain medical tests depending upon the medical grid under which the applicant is falling. For eg: anyone below age 35 will be catagory A (The Doctor will visit the client at his home and take blood/urine sample, normal height-weight-and BMI etc.) and so on according to the medical grid..Higher catagory client has to visit the medical center in the vicinity of his area affiliated to Kotak Life where different tests can be done like ECG, TMT etc..

Now medical tests are done to check the physical health of the applicant at that point. But there are various other medical factors as well (Family history of BP, Heart Problem, Diabetes etc) and some other personal factors such as smoking-drinking habits and history of such usage as well as work related hazards etc..

Because of all those details, many of the applicants skip a part or two (Stating that his/her mother died a natural death whereas it was heart attack – nonsmoker, where as applicant use to smoke heavily at one point)..And all these missed information add up to a big issue..

Plus always a factor of early claim..Any claim arising within first 2 years of the policy are treated as early claim and the cases are investigated thoroughly and there is every chance of some misinformation coming up (Given the way clients share information + the way agent fill the form)..

And above all, this is an act of UTMOST GOOD FAITH – whatever the client is disclosing is taken at face value by the insurance company and will only be treated as MIS-INFORMATION if there is a strong evidence later on to prove that certain material information was supressed knowingly/intentionally…Minor information undisclosed is not a big issue..Someone said his mother died a natural death and later on, that person (Policyholder) dies due to heart attack and later on company, in its investigation came to know of this thing, it will be a strong ground for refusal of the claim..

BOTTOMLINE – Accurate and proper information given, and genuine claim CANNOT be declined by any company anywhichway

Posted on December 27th, 2010

Dhawal Sharma says:

@Manish – these changes are not with retro-effect..They are effective from certain particular date..Otherwise everybody having ICICI term policy will ask ICICI to alter their previous premium to the level of I-PROTECT..

Posted on December 27th, 2010

Dhawal Sharma says:

@James – Me spreading MISINFORMATION??

Me saying LIC settlling its ENDOWMENT & MONEYBACK policy claims in such a nice way that they even send maturity cheques (Post dated) even before the policy matures is MISINFORMATION?? No sir, check it with most of the LIC policyholders and they will vouch for it..They receive this intimation months in advance to deposit policy documents which are about to mature…NO MISINFORMATION..

My statement that 75 out of 100 rejected cases are from LIC is based on the table above produced by MANISH..Do your calculations and check if this 75% is aggegerated…NO MISINFORMATION..

Now to the real table of IRDA report..It says LIC settled 96% claims and TOTAL PRIVATE SECTOR 85%..This ratio is greatly eschewed because of the presence of new players like CANARA HSBC, AEGON RELIGARE etc. whose claim settlement ratio is plumming around 70%..So if we exclude them (Because most of the readers over this blog – who buy pvt insurance players – are limited to ICICI, KOTAK, HDFC etc..then these companies average too will come around to 90 – 92%..Still stand by this statement of mine and mind you, again this is NO MISINFORMATION just a plain calculation by facts which you are not sure of because you are not from insurance sector..

Lastly, when i was talking of “AVERAGE FOR EVERYBODY (Including LIC) coming around 92%, then IRDA report itself proves me wrong when it says INDUSTRY AVERAGE (Including LIC) is 95%..Yes, this is misinformation that i tried to put it at 92% where actually it is 95%..

DHAWAL SHARMA – A disappointed and hurt fellow reader of the blog

Posted on December 27th, 2010

Dhawal Sharma says:

@Pattu – Merry christmas from a YOUNG contributor on this blog (as you have mentioned yourself)..

Let me dissect every fact which you have put in..Claim repudiation has gone down from 1.33 to 1.21 by LIC and private players have improved to 7.6 from 9.97..Just a bit that LIC repudiation is more or less same where as Private players are improving a great deal ;-) I was not born when LIC was just 10 years old so cannot say what was its claim settlement ratio at that time but SENIOR CITIZENs like you or other people of the same age over this blog may be able to share some thoughts but i stick to my stand that FULL & PROPER INFORMATION PROVIDED AT THE TIME OF FILLING FORM and CLAIM BEING GENUINE, NO POWER ON EARTH CAN REJECT THE CLAIM (Be it LIC or any PVT company)

I know many people in insurance industry (Particulary from LIC) who are since long in the business and have settled claims for their clients..And first thing they say is claim will be settled no matter what, atleast on HUMAN GROUNDs..they have approached higher authorities, branch heads – zonal heads, to help them out in this case..So ONLY EXPERIENCED PERSON will be able to help out in this case, i doubt..Even experienced person will say the same thing, fill the form properly – provide all information asked correctly, and the claim will be settled no matter what..So no rocket science in this, new or experience..

LIC is a dinosaur, YES..Its claim settlement ratio is higher, AGREED..But again sir, LIC is not be all – end all..Most of the Private players are improving and coming up..within the next decade, you will see their claim settlement ratio will be the same as LIC..till then, advice for everybody is just stick to plain fact: FILL THE FORM PROPERLY – PROVIDE ALL INFORMATION REQUIRED/ASKED – and that would be sufficient…

@MANISH – I will be waiting for such a reply from now I KNOW WHO :-)

Posted on December 27th, 2010

Atul says:

Hi Manish,

This is really good piece of information. With my liabilities increasing I was planning to buy more term insurance. This information will be beneficial.

Regards

Atul

Posted on December 27th, 2010

Krish says:

For those who advocates right fill up of the form, I would like to say that insurer claim/protection should be made mandatory as like in West. The insurance companies and agents should be made responsible that if they accept the premium from any person, the claim must be settled. There should not be any arguments.

Unfortunately the mighty set-up of insurance organization and agent’s knowledge of dealing with the customers are used to counter the claims which is very unethical. After all, an individual buys few policies in whole life time. You can’t expect him to research every stuff.

In our country a lot need to be done. I would like to see 100% settlement for all the premium payers. No less percentage is accepted.

Posted on December 27th, 2010

Shankar says:

Hi Manish,

Can you please explain what is rider in Term life insurance???

Posted on December 27th, 2010

james says:

Dhawal,
This is what I refer to as misinformation:

Extracts from your post:

1. “IRDA report with its claim settlement ratio part, nowhere mentions it to be DEATH CLAIM SETTLEMENT RATIO”
–> Totally wrong. Just shows you have not read the report carefully

2. “major chunk of the LIC policies are endowment or moneyback policies which are settled very nicely by LIC (In some of the cases, final amount cheque – post dated – reaches the client even before the last date of policy) and most of these endowment and moneyback policies are running for last so many years so they get settled very smoothly.
So this factor should also be kept in mind that its not DEATH CLAIM SETTLEMENT ratio but just claim settlement ratio”

–> First para is irrelevant (since the data is about death claims) and misleading, last sentence as no. 1 is plain wrong

3. “If somehow death claim settlement ratio be procured for every insurance company, then on an average, every company will come around to 90% to 92%..”
–> Same reasons as above –> Wrong. They are available in the report.

4. Accept your last point. But more the number of policy more will be claims pending and rejected. That is why people use percentages.

Why do I say misinformation, (its a strong word, I accept): You are an agent you should know better about what the report contains. So wrong statements from you will be taken on face value by many people. How many people have time to look at a 500 page PDF file?

Posted on December 27th, 2010

S Pani says:

It will be in addition to existing policy.

Posted on December 27th, 2010

Pradeep says:

Hi Manish,
I had a query regarding validity of the term insurance plans outside India.
Assuming that one buys one of these plans when in India satisfying all the conditions. And after few years, gets deputed to some other country for some period of time even though the premims are paid out regularly. If unfortunately something happens during this period, will the claim be still a valid claim? In short, is the term insurance valid if death occurs outside India?

Posted on December 27th, 2010

Basavaraj says:

Hi Dhawal,
Adding few more points to your answer. If insurence company come to know at any point of time that the insured person puposely hiden materiel facts then they can terminate the policy at any point of time. So, it is allways better to be fare while declaring materiel facts.

Posted on December 27th, 2010

Sagar says:

Again Great Job Manish…
1)What is different between Amulya Jeevan – I & Anmol Jeevan-I
2)I am over weight person so they can reject application for that
3)Accidental Disability Rider is most important think but LIC not provided, what to do
4)Right now I am 29, Is the advisable to take Term Insurance 35 years
Thanks in advance

Posted on December 27th, 2010

Amit Gulati says:

Hi Manish

I have one concern with the term plan for Rs.20 Lacs I have bought from ICICI pru. While filling up the proposal form my agent specified “high fever” as the reason for my father’s death whereas he died due to heart attack caused by high BP. Do you think insurance company can reject or delay the death claim due to this?

Thanks
Amit

Posted on December 27th, 2010

Basavaraj says:

Hi,

Think one moment that around you few people are their who need Insurance cover at any cost with hiding the reality (materiel facts). In that case also you are thinking that claims must be settle without any questioning? Insurer’s ask more information or search more information about the hapening of the event when their is early claim or when they have doubt about the cliam afterwards also. So, if you think that they have to settle all the claims, then what is your say about the people who want to have insurance cover at any cost???

Posted on December 27th, 2010

Basavaraj says:

Shankar,

Rider is the extra benefit which you will get along with SA. For example, if person take accident death rider and the person who taken, dies of accident then he will get the equal amount of the Rider SA which he opted. If accident death not occured during the period of the Term then nothing will be payble.

Posted on December 27th, 2010

Basavaraj says:

Hi Sar,
1) Amulya Jeevan have SA cover of less than 25,00,000 while Anmol Jeeven starsts with min SA of 25,00,000.
2) It depends on the underwriter of the company with whom you are opting to take the insurance. If you are overweight then they may charge some extra premium or they may reject the proposal.
3) If you are interested to take accideent rider then go with the chart which Manish published and opt other companies. As you may see premium is also high with Term insurance product of LIC’s. So better to go with suitable companies which fullills your needs.
4) My advice is to take the fullest available term, because if you want to buy the same product after few years, premium will be high with that they may ask few more things about your fitness. So while taking term insurance plan for the longest available period.

What is your say Manish??

Posted on December 27th, 2010

Amit puri says:

i was looking for all the data which is compilled by manish, thanks a lot..
my query
if we spilt the total sum assured for term plan in two and opt for two different insurance company will it not be expansive as in some case higher the amt the premium is lower, i studied this from on line ageon religare term plan calculator?
second query
except kotak which one would u like to advice me for 1 crore term plan?
thanks and with regds
amit puri

Posted on December 27th, 2010

kumaran says:

If giving correct info mean no chance of claim being rejected why should one take two policies:

I dont see why one should reduce sum assured at later time because more money is anyway good and one insurer with correct info is good enough. Also means less work to do for nominee.

Posted on December 28th, 2010

Prasanna says:

Steven,

I think that if you are a NRI & you do not have a source of income in India you cannot get a term Plan in India. This is what my agent told me some 3 years ago !
You said above “Also Dont forget to take a proof of your income outside india”

I guess your agent has not mentioned in the application form that you are a NRI.

Any comments Dhawal or Manish??

Posted on December 28th, 2010

Krish says:

Let insurance companies come out with all kinds of tests to understand the customer. Let them reject it, if they want to, prior accepting the premium. I am saying let the companies do their due diligence or complete investigations before issuing a policy. Once the premium is accepted, the company should take the responsibility and should not have the right to reject claim. In west, right to reject claim after accepting premium is not there. That’s the protection to the customer that am talking about.

Posted on December 28th, 2010

Anunay says:

Hi manish
I would suggest that we should not have 2 term plans from different insurer simply because higher the sum assured, lower the premium(Per lac). Taking 2 policies would simply not cost effective and great idea.

As far as claim rejection is concerned, i dont think that if everything is declared correctly, insurance company will not reject the claims. Afterall they reinsure themselves with Insurance reinsurance company to reduce their risk.

Posted on December 28th, 2010

Dhawal Sharma says:

@James – My apologies that i didn’t checked the report regarding “INDIVIDUAL DEATH CLAIM” part :-(

So again, wrong information on my part, but not MISINFORMATION (Intentionally or unintentionally)

DEATH CLAIM SETTLEMENT RATIO individually for each and every insurance company is not there (Or is it???)..average ratio given(Inclusive of LIC and pvt players) i.e. claim settlement ratio accross the industry is 95% where as i have said it would be somewhere around 92%..i believe that is not way of the mark :-)

Last point, again i want to emphasis that no need to be so fussy about claim settlement ratio..just fill your form accurately and claim will be settled..

Posted on December 29th, 2010

Manish Chauhan says:

Anunay

There are pros and cons of getting 2 insurance policies. If you dont want to get it from different insurer , then you can take it from the same insurer, it just gives you a flexibility to reduce the cover later incase you want to .

Re-insurance by insurance companies is nothing to do with our claims directly, its just another way for them to reduce their risk .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Prasanna

Incase agent has not mentioned that a person is NRI and the person is actually residing outside India , the claim will be rejected and it should be rejected also as its a stright case of hiding of facts, either by the actual customer or agent , doesnt matter .

Please re-check the facts

manish

Posted on December 29th, 2010

Manish Chauhan says:

ok in that case its fine :)

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Jig

The first point is that, insurance is a proposal you are putting to insurance companies . So its your responsibility to give all the facts and figures and make sure they are right . Its not companies responsibilities to make sure everything as Life Insurance is not like Mutual fund or any investment product which is proposed by Company .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Dhawal

Thanks for the answer , it clearly explains the things .

I would like to add that anyone who does not want to provide right and full information should stay away from term insurance, there can be a case where a person does not want to disclose the facts fully and also wants company to not reject the claim , its a foolish wish .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Dhawal

Yes , i understand that offline term plan permiums can be made same as iProtect . ok i got it now .

As kotak preffered term plan is already giving an agent his commissions , the future changes cant be incorporated into the older policies .

Is that the meaning of “retro-effect” ?

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Dhawal & Pattu

Thanks for your comment . I conclude two things from the above discussion

1) Giving right information while filling up the form is the ultimate thing which will decide if the claim will be rejected or not .

2) LIC has better claim settlement ratio compared to other pvt companies may be because of its size ,experience and trust .

PS : Lets use each other knowledge and experience to add positive knowledge on comment and avoid personal attacks .

Manish

Posted on December 29th, 2010

james says:

individual death claim details of all insurers are given on page 122 (in the pdf file) of the report. This corresponds to page 106 of the report.

ps. The beauty of a pdf file is it is searchable. All one needs to type is
“death claim” or “96.54” to get details.

The dictionary defines ‘misinformation’ as information that is not correct. I would like to think this is the same as ‘wrong information’.

I will however accept it was not intentional on your part.
My point is people in the field have to be careful about such things.

Posted on December 29th, 2010

Manish Chauhan says:

Shashank

Good point , I didnt give much thinking why Balaji is doing this . thanks for bringing this up .

May be he might be having additional responsibility coming his way in next 3 yrs like another child or some planned loan , so let him confirm what is it .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Krish

Is it manadatory in US that if a person pays the premium , he cant be denied the claim on grounds of mis-information or any thing else ? I doubt it ! . but i will rely on your information and facts provided .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

yes .. even I didnt gave much thought on this while taking info :) . my mistake

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Atul

Nice to know that . I would suggest do your insurance planning where you look at your future liabilites also and take the required cover right now .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Shankar

Riders are like “EXTRA” things you can take along with term plan , if you dont take them you will be just paid incase of death . But riders give some extra benefits for which you pay additional premium .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Pradeep

Yes ofcourse .

Just let company know incase you are going out permanently and your residential status changes (like if you become NRI) .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Basavaraj

Perfect :)

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Amit

The first point is that why did you allow this to happen ? Do you know the reason why Agent did this ? I will tell you . If he had mentioned that it was due to heart attack , there was a chance that your premium might have increased due to a bad family medical issue , this might have caused you to show dis-interest in taking the policy or you might turn the deal down and which might have directly impacted your agent commissions . So he made his path smooth at the cost of your insurance portfolio . tomm if you die of heart attach , the company can reject the claim saying that a part of this was because of medical history in family which was not told to them and its fair to reject your policy .

If you were a insurance company, even you would do it ….

Discontinue the policy now and take another one with 100% right facts and then you can be assured that your family will get the money fter you are gone .

Please fill the form yourself . Not your agent .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Amit

Yes it wil be bit costly , but it gives you flexibility to reduce the cover later . but you have some plans which give you that option later

You can look at SBI life and Birla as option for 1 crore .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Kumaran

May be for you there is no case of reducing the cover, but what if some one has to ! for any reason . May be some one wants to reduct the cover onces his home loan is over in 5 yrs, what if some one wants to reduct the cover once her daughter is married and gone to other home , there can be some cases !

Manish

Posted on December 29th, 2010

Shilpi says:

Hello Manish,

Very well researched and elaborate article Manish!

I couldn’t agree with you more regarding Accidental Insurance.

we suggest individuals to buy comprehensive accidental policy along with medical insurance policy. Critical Illness and Permanant Disability are equally important.

Term plans certainly are best but it is always useful to diversify with 2-3 different companies. A mix pvt and public company is Ok. Most importantly the amount of Sum assured should be appropriate. Hyper or Hypo insurance can be harmful!

Being a doctor is one of the most responsible and stress giving profession! The nature of their work always keeps them busy and occupied. They are hardly left with time and energy to take notice of their own Financial Health. This leads to ignorance and various hasty and unfortunate decisions.

I hope all Doctors can get some unbiased advice before they take any decision with financial impact. We trust them with our lives, hope they can also trust someone with their money!

shilpi

Posted on December 29th, 2010

Manish Chauhan says:

Shilpi

Good points from your side . I am sure every profession demands high busy-ness at times , One can take help of an advisor if one does not have time to plan it themselves

Manish

Posted on December 29th, 2010

arjun says:

I have had a ridiculous experience with an LIC Agent recently.We bought 2 fifty lakh LIC Amulya Jeevan policies in Sept 2010(My wife and I) and handed over separate cheques for the same.The money was debited from our bank accounts the next day itself.We were told that the policies would be sent to our home address in a month.Both our basic medical tests were also done(haemoglobin,blood count,urine tests,ECG).
However,in Oct ,my wife was informed that she would need some certificate from a gynaecologist also.We then decided that as our long term plans had changed(wife leaving job),it would be better not to take the policy in my wife’s name and informed the agent.He dallied around for 2 months and then suddenly said that the policy(wife’s)has come through.We think that he faked the gynae report and pushed the policy through on his own despite being specifically asked for a refund!Is it not lack of ethics and a breach of trust on the part of the agent?Could something be done?
P.S We do not have either policies in hand right now as they are apparently being sent to our permanent address.

Posted on December 29th, 2010

Arudra Kumar says:

Hello,

I have taken a SBI Shield term insurance policy in 2009. Before taking this policy, I have taken 2 LIC policies in the year 2005 and 2006. Both these LIC policies are In Force as on date.

However, the details of these policies are not entered in the SBI Shield application. At that point of time I was ignorant that this information should have been declared (The application was filled by the agent). Thanks to Jago Investor for enlightening people like me.
What should I do now? Need some advice please.

Regards,
Arudra

Posted on December 29th, 2010

Amit Gulati says:

Manish

Many thanks for your response and so much patience while replying to several such queries. I will definitely take some suitable action on this.

Thanks & Regards
Amit

Posted on December 29th, 2010

Basavaraj says:

Krish,
Insurance business runs on law of average. If according to you they start to verify in all grounds to all aged people then their may be more mantainance cost which again they will suck from you. One more thing, their is a irrevocable clause in insurance. Under which insurer have the right to cancel the policy within 2 years of start of the policy if they find something fishy related to materiel facts. This clause protects both insurer and insured from escaping the responsibilities. When you are 100% genuine while delcaring about facts related to your health, income and family background then why you have to worry about rejection? They have to accept,no doubt on that either you have taken in India or outside India.

Posted on December 29th, 2010

Venu says:

Manish,

Once again, good job!! Very helpful information about term plans !!
One question – I ‘m interested in a life cover with AR, CI, DR riders and assuming that cost/permium is not a factor, which one of the following you recommend? And why?
1) Buy a term plan like SBI Smart shield with all three riders AR, CI, DR
2) Buy a pure term plan and buy another plan from general insurance companies like National for accident, disability and critical illness cover?

Thanks in advance.

Posted on December 29th, 2010

Amit Gulati says:

Manish

I just came to know about the “Incontestability clause in Life Insurance” which prevents the insurer, after two years, from denying liability under the policy for misrepresentations or con-cealments by the insured.

Do you think this may be of any benefit to the family of the life assured in such a case?

Thanks
Amit

Posted on December 29th, 2010

Manish Chauhan says:

Venu

You can go with SBI Smart shield or Even Kotak preffered plan , these are offline options , assuming you dont want online one’s . I dont have any reason to say which is better or not. Just make sure you fill all info correctly in the form

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Amit

Yes , this clause protect customers from getting claim rejected for very minor mistakes done in the form . Those things are well defined in IC-33 which is a handbook for IRDA course for becoming an insurance agent , but this clause does not mean that you can do any mistake and hide info and company can not reject the claim , if you hide big facts like you were smoker or you didnt had a good medical background , then this clause does not prevent you from that ! . So just make sure you understand that this clause not a loophole in the system which a person can use and give wrong information and then get out of it if 2 yrs passes .

there is no alternative than provide right info in the document .

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Nice ..

Posted on December 29th, 2010

Manish Chauhan says:

Arudra

This is a clear case of hiding of previous insurance policies and can surely become a ground for rejection . Please update this information in your term policy .

I would suggest close the current policy and re-take it again , I am saying this because the term plan rates are slashed a lot in recent times and you will get the same Sum assured for the less premium . Check it

Manish

Posted on December 29th, 2010

Manish Chauhan says:

Arjun

Yes , its a clear case of unethical and vilation of code of conduct . The agent has fallen short of his duties knowingly . I am sure he does not want to loose his 25% from the 60-65k premium from both of you jointly , so its around 15k+ commission from him , honouring your wish would have meant that he looses 7.5k :) . So I would say you should complain to IRDA along with agent name and his agent-code (incase you dont have it , thats ok i guess, you might try to get this info from IRDA website) .

Manish

Posted on December 29th, 2010

Pankaj Parashar says:

Hi ,

Even informing the insurance company is about ur getting relocated is not required…. insurance is issued on the basis of the information given by u at the time of taking the policy… if any change occur after the issuance of the policy u r not bound to inform the insurance company…
just keep paying ur premiums, although change in address is an important thing to inform if u want to receive premium due notices and all…. but now a days i think most of the companies provide that on email too….

Posted on December 29th, 2010

Pankaj Parashar says:

There is a term used “material fact”.
If a “material fact” is not disclosed then the incontestability clause doesnt apply…..
a material fact is a fact which might have affected the decision of the underwriting the policy…
in Amit’s case the death of his father due to heart attack will become a material fact in case god forbid the same happens with him….
so please do as Manish instructed, discontinue the policy…take a new one…and more importantly discontinue the agent …….

Posted on December 29th, 2010

Pankaj Parashar says:

there are high sum assured rebates in most of the term plans….
for example : if u opt for 50,00,000 SA in SBI Life Smart Shield , u will get a 7% rebate on ur basic premium.
For 1 cr & above, apart from this rebate one more rebate is there which is 0.25 Rs. per 1000 SA.
other companies also have similar rebates, this is why for higher sum assured premium is lower

Posted on December 29th, 2010

Pankaj Parashar says:

Hi Arjun,

It is good for you that you have not yet received the Policy Documents…
There is a clause called Free Look Cancellation….which gives u 15 days from the receipt of policy to reconsider your decision if u r unhappy with any terms and condition…..and in my opinion this will also include the behaviour of ur agent….so as soon as u get the policy check out the Free Look Cancellation clause and apply for the same…. u will get ur premium back after very minor deductions…
However, I would like to advice you to have policy under your wife’s name too even if she is leaving the job, u may opt for lower Sum assured.

Thanks & Regards
Pankaj

Posted on December 29th, 2010

Pankaj Parashar says:

Hi Arudra….
Manish’s advice is very apt….
SBI has revived Shield & come up with Smart Shield plan where in premiums are much lower than Shield…as u have taken Shield only last year, it is very much advisable to u that u opt for Smart shield & discontinue shield… u will get it at much lower premium than shield…

Posted on December 29th, 2010

Dhawal Sharma says:

@James/Manish – i accept and apologize..as James rightly put it, me being an agent, i should be in know of things in much better way or i should have use the technology of SEARCH appropriately..would be more cautious from now on..Sorry once again for any unintentional MISINFORMATION on my part…

Posted on December 29th, 2010

Manish Chauhan says:

Dhawal

Np , happens :)

Manish

Posted on December 29th, 2010

Paresh says:

Hi Manish,
Excellent article as always. I already have Jeevan Amulya Term Insurance cover for 35 lakhs. Planning to go in for another Term policy to cover the liability that will arise out of a home loan (exceeding 35 lakhs). Someone told me to wait for LIC to come out with Mortality tables (the ones they are using were last updated in 1995) before I buy a new Term Plan. Also mentioned that all Private Life Insurance players use the same table. The new revised table from LIC will bring down the Insurance premiums.
Questions:
First of all, is the information I was provided correct?
Secondly, does it make sense to wait for the revised tables (are they going to come in the next few months)?
Tempted to give Kotak plans a try, after reading your article.

Posted on December 30th, 2010

Paresh says:

Hi Manish,
Excellent article as always. I already have Jeevan Amulya Term Insurance cover for 35 lakhs. Planning to go in for another Term policy to cover the liability that will arise out of a home loan (exceeding 35 lakhs). Someone told me to wait for LIC to come out with Mortality tables (the ones they are using were last updated in 1995) before I buy a new Term Plan. Also mentioned that all Private Life Insurance players use the same table. The new revised table from LIC will bring down the Insurance premiums.
Questions:
First of all, is the information I was provided correct?
Secondly, does it make sense to wait for the revised tables (are they going to come in the next few months)?
Tempted to give Kotak plans a try..

Posted on December 30th, 2010

Prasad says:

Thanks for an excellent article, Manish. It came at the right time for me, when I am on the look for a term plan for myself. This will be my first term plan, and I’m decided to do it the online way. I’ve decided on the iProtect from ICICI, mainly due to the additional rider that it offers. For my age (30yrs) and health condition (non smoker, non drinker, no medical illness), I’m getting a premium of Rs.9400 for SA value of 50 lakhs and a period of 30 years.
After another 6 months, I’ll take another term plan – this time offline from LIC – for a similar amount of 50 lakhs. Please comment about my plan. Any suggestions for the same?
Also, let me know what would be your advise about insurance coverage for my wife – right now she is a homemaker. Is a term plan advisable, or should I go for some endowment policy?

Posted on December 30th, 2010

Manish Chauhan says:

Paresh

Yes , thats true , I am not sure about when it will come or if it will come at all , but their table is old and new should be there soon ! .

I dont think you should wait, what will you do if bad thing happens in between ! . I would suggest for got Kotak or anything , atleast for 50% at the moment and rest later .

Manish

Posted on December 30th, 2010

arjun says:

Regarding posts 164/165/166 – Thanks Mr.Chauhan and Mr.Parashar for the advice.Does the IRDA really look into these cases?After all,it was a verbal instruction and the agent could just deny the whole episode.The only thing which gives me hope is that he had asked for some gynae tests which we did not go for.

Posted on December 30th, 2010

Manish Chauhan says:

No term plan for her as you are not financially dependent on her at all .

Also i would advice first go for 50 lacs cover from LIC , and then from other company , why not Kotak or SBI , why ICICI Protect ?

Manish

Posted on December 30th, 2010

Manish Chauhan says:

Arjun

I am assuming that he has some kind of written proof for what he is saying , if it was just verbal communication to agent , then it cant be proved and it does not hold any water.

Manish

Posted on December 30th, 2010

Prasad says:

I wanted to go for an online policy. That rules out SBI. The Kotak e term plan does not provide additional riders, while ICICI iProtect does. That was my only reason to choose ICICI over the rest.

Posted on December 31st, 2010

shilpa says:

Manish

Good article and so is the subsequent discussion.
Is there any drawbacks of taking an online version of the term plan , apart from the fact that the initial time taken for getting the policy could be higher ? I ask this because I have an ICICI Pure Protect plan for Rs. 50L taken two years ago which comes to an annual premium of Rs.10100
Now for the same parameters , the iProtect version comes to a premium of Rs. 6400 for my present age. Would it not be a sensible thing to switch to iProtect ?

Shilpa

Posted on December 31st, 2010

Gunjan Gandhi says:

Manish – Thanks for this nice Personal Finance blog.

After reading the review of iProtect – I went for ICICI Prudential iProtect option 1. SA – 1 crore. Term – 30 years. My age 38.

Applied for it on 4th December. Medical Tests including TMT were done by 10th Dec. Received policy on 24th December. Effective from 22nd December.

Reason for going for ICICI – lowest premium for 1 cr amongst three online term policies + one of the best claim settlement ratio among private players.

Have also went for 25 Lakh LIC policy – premium reciept received, yet to receive policy.

Thanks to this blog (articles + comments) – decided to go for online, ICICI and two term policies.

I have 3 LIC polices – investment + life type. Going to surrender it. Will get less money back than the premium I paid. But will put that money in PPF and hopefuly will recover it down the line.

Posted on December 31st, 2010

Basavaraj says:

Shilpa

If the riders which you opted in ICICI Pure Protect are same with the iProtect then you may replace with existing one. Else think twice about the rider part also while taking. What is your view Manish?

Posted on December 31st, 2010

Manish Chauhan says:

Shilpa

Yea .. it would make sense , considering you give a thought on what Basavaraj said below , incase you also have riders (which I think you dont have looking at premium) , just see how much badly you want those riders, if not then you can shift to ICICI i-protect

Posted on January 1st, 2011

Manish Chauhan says:

Basavaraj

I replied to Shilpa , you are correct. But i dont think she has taken any riders !

manish

Posted on January 1st, 2011

Manish Chauhan says:

Gunjan

Looks good, just see that instead of surrendering your policies , it might make sense to make it paid up . Look at this discussion : http://www.jagoinvestor.com/forum/lics-jeevan-anand-policy-surrender-value/854

Manish

Posted on January 1st, 2011

sk9 says:

I am wondering, that while purchasing a term/mediclaim insurance, would one need to declare that he has migraine? Perhaps if declared, it may be used by the company to later find a reason not to make a payment?

Posted on January 1st, 2011

Subin C B says:

Hi.,

This is a wrong data you gathered in terms of claim settlement., as per my knowledge LIC has not done 96% claim settlement if you see Birlasunlife claim settlement is 99.89% till last july and am not sure about other companies. Please share with me if am wrong.

Posted on January 1st, 2011

Manish Chauhan says:

The data I gave was from IRDA report . So what do you have to say that IRDA authenticity ?

Manish

Posted on January 1st, 2011

Manish Chauhan says:

Saurabh

Yes you should declare this , the company can not reject any claim on this as they might be charging extra premium on this . So this fact can become a reason for increasing the premium , but not rejection of claim if you have declared it

Manish

Posted on January 1st, 2011

Gunjan Gandhi says:

Manish,
Checked with DO and looking at PROs n CONs – the paid up money will just seat their accumulating no further bonus. Instead i put in PPF – i will recover the premium paid in 3-4 years and in next 10 years by still keeping in PPF, will get more return then the policies would have given me at maturity.

Posted on January 1st, 2011

Prasoon says:

I already have a policy with A. I’ve applied for a new policy with B. I’ve declared that I’ve a policy with A. I’ve not received the ‘B’ policy yet. If I apply for a policy with C, I’ll tell them about A. But do i need to tell them about B as well, for which I’ve not received the confirmation yet?
I hope, I am not complicating with this ABC…

Posted on January 1st, 2011

webhaw says:

Hello Manish,
First of all i want to wish a Great New Year…….2011. And i must say your article is wonderful and it is helping us in a big way……I have some Q’s ……
I am 30 Years old, and planning for term insurance for 30 years term.
What should be the correct SA ? and which is the best plan …..?
I already have Home loan of 20 Lac and i am paying EMI for that……..

I am also planning for Term plan for my wife (27 year old) ……What should be the correct SA ? and best plan …..for her term plan…….? as she is also working……and she is already paying separately for loan of 5 Lac…………

In this page i found ICICI iProtect is best….and what about Kotak’s eTerm/Preferred Term plan……?

I found Kotak is some what cheaper…….compare to ICICI……..n Why there is a big difference in premium for various companies……..are not they providing almost same things…….

I have a doubt that ….Why people what additional riders….say Accidental ……. is it….people require more money, if the death occurs due to accident…?……If it is so……directly take the policy for 50 Lac SA………….
25 Lac SA + 25 Lac Rider (Acci) = 50Lac SA…..(Why not)……….

Please, answers my queries…..
Thanks in advance……
web

Posted on January 1st, 2011

Amit puri says:

Hi Manish
unable to understand why on line policy vs policy through agents cost is less.
the reason usualy given is that agent is not involved, right.
but then one time agent involvement at the start of poliy why it should cost so much, why it is not a one time extra charge?
just to uderstand the costing model of insurance companies.
amit

Posted on January 1st, 2011

Prasad says:

Agents get a commission of every premium amount you pay, and that is not limited to the first instance alone. I am not sure what margins they get, but assuming the commission for the agent is 10% of the premium, every time you pay a premium of Rs.10,000 towards your policy, the agent gets Rs.1000 and the insurance company gets the balance Rs.9000. That is why online policies are cheaper.

Posted on January 1st, 2011

Manish Chauhan says:

wehaw

This article will help you to understand how much insurance you should take : http://www.jagoinvestor.com/2009/11/how-much-insurance-cover-is-enough.html

Manish

Posted on January 1st, 2011

Manish Chauhan says:

Gunjan

You have found what others millions of policyholders dont ! . Simple logic!

Manish

Posted on January 1st, 2011

Manish Chauhan says:

Prasoon

I am not sure on this , but I think as you have already applied for it , you should be telling this to company C . You might want to get more info on our forum : http://www.jagoinvestor.com/forum/

Manish

Posted on January 1st, 2011

Gunjan Gandhi says:

Was it a compliment or pun intended…:-)

Posted on January 1st, 2011

Manish Chauhan says:

Amit

Its not just agent , its also less cost due to online model , also agents gets commission every time you pay premium

Manish

Posted on January 1st, 2011

Subin says:

Please go through this link., sorry if am anything wrong.,

http://insurance.birlasunlife.com/LinkClick.aspx?fileticket=3cgLDAv6MMk%3D&tabid=279

Regards
Subin C B

Posted on January 2nd, 2011

Jig says:

thats good to know.

Dhaval:
Once i filled form by myself only providing each and every minor detailed mentioned in form,provided all required documents then why again kotak require/ask to sign three different papers( like smoker/alcoholic/ working in hazardous area). all details i have put in form and signed that means whatever i declared is correct from my side.
Second thing, Is it correct that once i cancelled the policy with KOTAK i cant take insurance again from KOTAK? Neither online nor offline?

Regards

Jig

Posted on January 2nd, 2011

Ankur says:

Hi Manish,
Nice article. I bought Aegon religare iTerm plan sometime back. It covered me sufficiently in terms of death amount(50 lac). But looking at claim settlement ratio for it, do u think I should quit and enroll for others. I am bit confused here. I am Married and 27 yrs old.

Posted on January 2nd, 2011

Ankur says:

One general query, lets say if one drink and/or smoke occasionaly…like 1-2 times per month….should he/she decalre same while purchasing life term insurance? Is it case of tobacoo or alcohol user? Any idea why do insurer asks such information while filling up application? I noticed it increases the premium. Please provide me link if it is already explained somewhere.

Posted on January 2nd, 2011

bharat shah says:

@amit
first take newpolicy then discontinue the existing!

Posted on January 3rd, 2011

Jig says:

HELLO MANISH
Good News in Insurance sector.
see the video. http://www.moneycontrol.com/video/special-videos/insurers-will-now-redress-investor-complaints2-weeks_474495.html

Now company has to redress the customer complaint in two weeks. STRAIGHT TWO WEEKS.

JIG

Posted on January 4th, 2011

Suresh says:

I agree with you. Most of us have atleast one LIC development Officer or LIC Agent in the immediate family. On our death we can be assured that they will help us to get the claim. This assurance will not be there for pvt. players.

Posted on January 4th, 2011

Manish Chauhan says:

Jig

Seems like this rule is there around from some time , not sure how much companies are obeying this rule

Manish

Posted on January 4th, 2011

Manish Chauhan says:

I have no idea what that 100% means in reality , but IRDA report should be the final one and should be taken as source of truth . LIC also have 95% settlement ratio .

Manish

Posted on January 4th, 2011

Manish Chauhan says:

Gunjan

It was pure compliment, this is a simple thing and one should be able to find it out , still many struggle , you have shown good ability to come to the conclusion :)

Manish

Posted on January 4th, 2011

Manish Chauhan says:

Jig

I dont think its true that you cant take policy again from a company if you cancelled one . Why do you say so ?

Manish

Posted on January 4th, 2011

Arindam says:

I have almost decided for Kotak Preferred along with CI benefits. I’d have gone for an online one (ICICI Pru followed by Aegon Religare in that priority), but since they don’t have riders, I am trying out Kotak preferred first. If there are any surprises etc, I’ll keep you posted. Thanks once again.

PS – Smoking kills, and till then makes you pay more premium!!

Posted on January 5th, 2011

Arindam says:

Forgot to add one more thing – just as information for fellow visitors – that I already have good life cover from the company I work (for which I guess I don’t pay any premium). This nw insurance I am going to get is kind of additional (mostly for home loan protection along with rider). If this was my first term policy (and given the fact that I am a smoker), I’d have probably got an LIC (because of high settlement) inspite of high cost. So as you rightly suggested, fellow investors should probably split between LIC and private.

Posted on January 5th, 2011

Arindam says:

@Manish, Pattu,
Can we get the URL of the PDF?

Posted on January 5th, 2011

Jig says:

Hello Manish,
I got the reply from company and i share here to know wether it should be like this? That was the reason i asked directly Dhaval as it is regarding KOTAK.

regards

Jig

Posted on January 5th, 2011

Dhawal Sharma says:

@JIG – Sorry, didn’t read your query earlier..Can you please put it one more time..

Posted on January 5th, 2011

pravin says:

Manish,
Thanks for the info!

Whats is the policy of insurance companies towards already disabled person? Do all companies increase the premium in such cases?

Thanks in Advance!

Posted on January 5th, 2011

Peenuts says:

Excellent article. However can u also mention the sum assured for which u hav calculated the premium?

Posted on January 5th, 2011

Manish Chauhan says:

Pravin

There is a very high probability that a disabled person is not earning and no one is financially dependent on him/her .So there is no “Insurable Interest” in those cases . Hence they are not liable to take insurance .

Manish

Posted on January 5th, 2011

Jig says:

Hello Dhaval,
i am doing copy paste of reply from KOTAK.. i havent any prob with this reply but it sounds strange so just needed your two words on this.

“Sir currently we would not be able to provide you the medical documents as you have cancelled the policy with us .( THIS I CAN UNDERSTAND)
Sir currently you would not be able to avail either the e- term plan or the normal term plan through us, due to the cancellation ( HOW IT SOUNDS LIKE?).”

regards

Jignesh

Posted on January 5th, 2011

Jig says:

Hello Dhaval,
i am doing copy paste of reply from KOTAK.. i havent any prob with this reply but it sounds strange so just needed your two words on this.

“Sir currently we would not be able to provide you the medical documents as you have cancelled the policy with us .( THIS I CAN UNDERSTAND)
Sir currently you would not be able to avail either the e- term plan or the normal term plan through us, due to the cancellation ( HOW IT SOUNDS LIKE?).”

regards

Jignesh

Posted on January 5th, 2011

Dhawal Sharma says:

@ Jigs – Same thing has happened to few of my clients as well so i would answer your questions in two parts..

A) One of my client has got ELEVATED NICOTINE LEVEL and ELEVATED LIVER ENZYMES in his medical tests and the company applied loading to his premium, i.e. his premium was increased from 17,154 to 23,777..The client did not gave his consent as he thinks he was fully fit..He wanted to see his medical reports from company’s medical tests labs..So what we did was submittted a written request, duly signed by him and deposited at our Kotak Janakpuri Branch that client wants to see his medical reports..Reports were subsequently provided to him [although it took almost a month :-( ]..Now the process is that company waits for client’s consent for certain specific period and till that time, policy is considered alive, not cancelled..Till the policy is not cancelled, client can ask for the reports..But as in your case, you have cancelled the policy and so you are not in a position to ask for reports which are legally the property of Kotak..

B) The thumb rule is that if certain policy is rejected by the company or cancelled by the client, he/she will not be allowed to apply for next 6 months..and after 6 months, that person can apply afresh and a new medical will be done and if at that time, condition of the applicant is fit, company can issue the policy..Reason i can understand behind this logic is company does not want to look STUPID in this case, that we have rejected the policy today for any x,y,z reason and just within a day or two, we are issuing the policy for same person without waiting for sufficient period of time to get that reason ratified..So its not like you can never apply for the policy from the same company forever..Its just that you have to wait for 6 months to get a new policy from the same company..

Hope it will clear your doubts :-)

Posted on January 6th, 2011

Manish Chauhan says:

Arindam

You are not paying premium for your company insurance directly, its called group insurance and your company is paying the premiums , its part of your CTC .

Manish

Posted on January 6th, 2011

Manish Chauhan says:

You can see just below the chart

Its 50 lacs for 30 yrs old male for next 25 yrs duration .

manish

Posted on January 6th, 2011

Jig says:

Yep it sounds ok.

There are some company offering plan without medical upto certain amount of SA. Now suppose i took one from one company of SA 20 lac without medical , and same can be get from other one? if they have plan of nonmedical and i have already one of the same kind , what will be there reaction while processing proposal?

thanks dhaval for clarifying in details. Actually expecting the same kind of reply from the KOTAK NRI HELPDESK PERSON but surprised with their reply which i had mentioned in above comments.

thanks once again.

Regards

Jig

Posted on January 6th, 2011

Dr Firoz says:

hi Manish, Thanks again for the excellent article..

I am going to narrate a funny but clearly UNETHICAL incident that happened to me a few hours ago.

i had gone to a reputed bank for investing in a Fixed Deposit. there the customer relation officer told me about a ‘new’ product offering 15% return. when i enquired they presented it as a new mutual fund like scheme with guarenteed NAV etc. these terms as well as the mention of 80c tax benefit set alarm bells ringing in my brain. i asked them whether it was an insurance plan. only then did they sheepishly acknowledge that it was ULIP. by that time around 15 mins had passed.

so in those 15 mins they never ever uttered the terms ‘insurance’, ‘ULIP’ or like that.

Jagoinvestor had made me ready for the trap, but i am sure many others will fall for it.

so my question is Is it not unethical?
and what can be done to prevent it?

Posted on January 7th, 2011

Manish Chauhan says:

Dr. Firoz

Yes I would call this unethical as they are misleading people with wrong claims and not giving right information . However the solution for this is that one should make them selves aware about investments and related things ,

Manish

Posted on January 7th, 2011

Sohil says:

Manish i wanted to ask suppose i start a policy of say 20 lakh.ANd later say after 5 years i want to upgrade the same policy to 50 lakh is it possible?

Posted on January 8th, 2011

Manish Chauhan says:

Sohil

Not all , only kotak epreffered and AR provides it

Manish

Posted on January 8th, 2011

Sunil Date says:

It is always necessary to answer all the questions honestly and provide all the information. Let the insurance co. decide whether the information is relevant or not. If you do not, then the purpose of insurance may be defeated totally. Your agent may advise you otherwise but remember, it is not the agent who is going to pay the claim amount and neither can he overrule the underwriter or the claim settler.

If it true that you smoke occasionally or drink on rare social occasions the policy may not be loaded. I got a whole life policy, at an gae of 51, w/o any loading, with an option to increase the cover, if I wished, (of course to a certain extent) even after declaring the above facts.

It is common knowledge that smoking ( and even passive smoking) is injurious to health, so is excessive drinking, therefore the probability of risk increases and that is why it is a relevant question. You may be aware that most of the insurance companies are offering preferred policies for non smokers.

Posted on January 8th, 2011

Sunil Date says:

If you read the proposal form it generally mentions that ” do you already have a policy or have you applied for one etc…” So mentioning about existing and applied policies is a must. Alternately, you can wait for decision from B and then provide appropriate info to C.

Posted on January 8th, 2011

Sunil Date says:

@ Pankaj Parashar This article is about term plans. If the wife has left her job and may noyt have an income, why would she require insurance ? Curious to know ( I am discounting that she may again get a job later)

Posted on January 8th, 2011

Sunil Date says:

@ Pankaj Parashar This article is about term plans. If the wife has left her job and may not have an income, why would she require insurance ? Curious to know ( I am discounting that she may again get a job later)

Posted on January 8th, 2011

Anuj says:

Hi Manish,
I am 41 aged. My financial planner asking me for go for Aviva’s LifeShieldPlus or LifeShieldAdvantage. What should I do? Which term plan is good for me that return my money with interest if I don’t die after plan completion.
Thanks,
Anuj

Posted on January 9th, 2011

Sujit says:

Dhawal/Manish
I have been paying a premium of 9k for Kotak Preferred Term Policy from last 4 years.
What should I do to change it to new one with cover of 50L with lesser premium.?

Posted on January 9th, 2011

Manish Chauhan says:

Sujit

Yes , its recommended if you want to pay lesser premium for the same thing :)

Manish

Posted on January 9th, 2011

Manish Chauhan says:

Anuj

Dont get in the trap of “getting money back incase I dont die” . You get money back only because you pay more right now . So its the same thing that you buy pure term plan and invest some additional amount in some product .

Manish

Posted on January 9th, 2011

Sujit says:

Thanks Manish,

But following the other conversations, I was just trying to judge if there are any riders for doing the same. :).

I would be opting for this new arrangement soon.
My heartfelt thanks for starting out with this thread.

Regards
Sujit

Posted on January 9th, 2011

Pramod says:

Manish,

Thanks for the wonderful article. I was searching many websites for this info as am planning to take one.

Had you mentioned SA also know, it would have been even better.

Pramod.

Posted on January 10th, 2011

Manish Chauhan says:

Pramod

Its mentioned within the chart only , see at the end , its for 50 lacs SA for a 30 yrs old male for 25 yr duration

Manish

Posted on January 10th, 2011

Gaurav says:

Hi Manish,

I am a 25 year old, only son with no family liabilties as such apart from a education loan which in itself is covered by a term plan. I am planning to take a term insurance of around 1 crore(as per the formulae 10 times of your yearly income). I had shortlisted LIC Amulaya Jeevan but the premium for 30 years is coming out to be 27000 approx/- Now after reading your article i am a bit confused as to should I go for this or should i take two different 50lacs cover, one with LIC now and other of a private player(say Kotak) 3-4 years later when probably i will be planning to start a family? Please guide as i am starting my career and want to build my assets and hence is reluctant to pay so much premium annually.

Posted on January 10th, 2011

Manish Chauhan says:

Gaurav

Yes , you should be reluctant at the moment as I assume there is not much people dependent on you financially ? For whom are you taking this term insurance, Who will be financial affected if a truck runs over you tomm ? If its no one , then no need to take any insurance at the moment , Once you are married , you can think at the same time .

Splitting your cover in LIC + 1 pvt insurer like kotak or ICICI will be a good option

Manish

Posted on January 10th, 2011

Gaurav says:

Thanks Manish,

Currently, i plan to take insurance for my parents who arent dependent on me as such but being the only son, they are somewhat relying on me.

So, as per your thinking, shall i hold my plans to take insurance or shall i split it into a smaller amount and buy later when i do have a dependent family?

Posted on January 10th, 2011

Abhijit says:

Hi Manish

Want to share my experience with Kotak.

Recently I had applied for kotak preferred term plan for a SA of Rs 50 Lacs for 30 yrs.(I m 34 yrs old)After the medical tests were carried out I received a letter from kotak informing that my premium will be increased due to ” elevated sugar level”.I immediately checked my sugar level and my doctor informed that its well within limits.Hence,I made repeated communications & complaint with kotak asking them the reason and their criteria for 75% increase in premium.But I did not get any answers regarding their criteria neither did they share the medical reports.
I was really disappointed with this and hence decided not to go ahead with this policy.
Now I wonder which is my best option for term plan
What are your thoughts..Manish?

Posted on January 10th, 2011

Manish Chauhan says:

Abhijit

I am not also not sure why this happens . Why your doctor says that there is no issues and companies doctors say that there is .

May be Dhawal can shed some light on . Let me bring him to answer this

Manish

Posted on January 10th, 2011

Manish Chauhan says:

Gaurav

If you feel that they should get some money incase you die , then its a good reason to take insurance . So go ahead and take some , and add more later when you are married

Manish

Posted on January 10th, 2011

Dhawal Sharma says:

@ABHIJIT/MANISH – This process is known as LOADING..It means when company finds some medical complication or certain medical readings of the applicant above the requisite levels, company can make the counter offer, by increasing the premium..As in your case, as it was found out to be ELEVATED BLOOD SUGAR, company does want to take up the risk BUT at slightly higher rate which they made offer to you by putting LOADING in form of premium increase by 50% or whatever..

Now coming back to what could have happened (This is all hypothetical, as far as i can make out)…You got your blood sugar level done on 10th DEC on fasting basis (empty stomach) or something like that..that day in the morning, you might have jogged to the medical center or had some sweets or pastries the night before and subsequently it showed ELEVATED BLOOD SUGAR..Now you got this communication on 28th of DEC and you went to your doctor on 2nd JAN and by that time your ELEVATED BLOOD SUGAR level has settled to the normal levels, and hence this discrepency..
and yes, why is it that tests done by the company at their affiliated lab or by their undersigned doctor might be wrong and not by your own local doctor???

Medical reports are basically the company’s property (MEDICO-LEGAL) document and its at the company’s discretion to share those documents with the applicant..Generally they dont share these reports with the applicant but if you hand over a written request through your agent to the concerned branch, this might materialize..I have done this for my client but this does take some time..

Posted on January 11th, 2011

kumar says:

Of course nothing could be wrong with the medical test done for Kotak by a third party. The mistake is with eating habits of the client! What else can be the reason!

All speculation is bad. Speculation about medical conditions by a non-medical professional is rubbish.

A simple internet search will tell you that sugar gets processed in the
body in 4-5 hours.
But lets not worry about that. The fault is only with ABHIJIT.
Even speculation of any other possibility is impossible.

75% increase in premium while being the insurers prerogative seems high. I know of a loading of 15% for Blood pressure by LIC
for my friend.
I have no issues with 75% but arm chair speculation is unacceptable.
The fault could be been ABHIJIT’s. It could also be from the side of the lab assigned by Kotak or the lab ABHIJIT went.
Common sense suggests that its best not to comment on things without data/info.

Posted on January 11th, 2011

Sunil Date says:

@ Abhijit / manish. Mr Dhawal Sharma has given a very detailed reply. I would like to add one more point. The insurance co medical underwriters not only look at the diagnosis ( medical test results) but also at the prognosis ( prediction). They look at the age / the nature of work / the physical attributes / family history etc and do the prognosis. It is one underwriters perception based on their companies set rules etc. It is not necessary that underwriter of some other co may arrive at the same conclusion. You believe in your family doctor and if he says nothing is wrong be happy and approach some other insurance company.
In case of some Ins companies, if the policy is rejected or deferred or loaded and if you request them for the medical details and inform them the contact details of your doctor, they will explain their views to your doctor.
Since they have paid for the medical test, you cannot insist on them to give you the medical report. You can go the same diagnostic center, pay the fees and get the reports for a fresh test.

Posted on January 11th, 2011

Sampath says:

Hi Manish

I am 24 years old, i was planning to take Aegon Religare earlier but looking at the Settlement ratio, i lost interest in it. Can i go for Kotak preferred Or ICICI or any other (30L)? Next year am planning to take LIC. Please advice….

Also my mother has diabetes since 10 years, and last year my father passed away because of poor health (High alcohol usage). Do you think this will increases my premium? What kind of cautions i should take while filling up forms?

Thanks

Posted on January 11th, 2011

Balaji says:

Hi Manish,

Great article. I ( 32 yrs ) have planned to take a term plan. I am diabetic and my family has history of Cancer. What will be the approximate premium for me for policy term of 28 yrs ? Which insurance should I go for?

Regards
Balaji

Posted on January 11th, 2011

bharat shah says:

@sunil date
i like your information , but not reasoning:Since they have paid for the medical test, you cannot insist on them to give you the medical report. You can go the same diagnostic center, pay the fees and get the reports for a fresh test.
i argue, it is my body, and irrespective of whosoever paid, it is my right to know the tests’ results. further if i accept it with load, who is paying after all?i i had bitter experience from hdfc standard in 2002 0r so. when i took the term insurance , they raise my premium by 20-25% without informing me about the information about the tests , even after buying it with load. i requested them to furnish the results, so i could try to improve, but they did not reply.

Posted on January 11th, 2011

Balaji says:

Hi Manish,

I ( 32 yrs old ) have planned to go for term plan ( SA – 50 lakhs ). I am diabetic and my family have history of cancer. What will be the approximate premium for policy term of 28 yrs? Which insurance should I go for ?

Regards
Balaji

Posted on January 11th, 2011

Manish Chauhan says:

Sampath

You can go for Kotak or ICICI .

The only precauation you should take while filling up the form is to mention everything correctly :) . dont hide anything . thats all

Manish

Posted on January 11th, 2011

Manish Chauhan says:

Balaji

Go for any Insurance you trust and your premiums will be increased , you can expect upto 100% more premium , but get confirmation from the company on this .

Manish

Posted on January 11th, 2011

Abhijit says:

@Dhawal – I agree that there could be difference in the results bcoz the sugar levels are tested after a time gap. To exactly know the details I had requested the reports through my agent.And if it is the company policy not to share the reports then this was going to be the same report which the insurance company promised to give alongwith the policy document once policy is registered!
@Kumar/Sunil – I am not speculating regarding medical tests conducted by the lab or my doctor .the As a customer I only wanted to know the reason for 75% increase in premium.

Posted on January 11th, 2011

Amit says:

Hi Manish,

Thanks for the very nice article, hope people will understand the importance of the term insurance.
Please let me know if I split the Term insurance between LIC (20%) and Private (80%). During the claim time if LIC paid the amount and private company reject for any reason. Can my family drag private company to the court on the basis of LIC payment.

Posted on January 11th, 2011

Raghu N says:

Manish,

Excellent read. Felt like heaven. The three types of investors mentioned in your article “3 type of Investors, which one are you?”, i fall in the first category making an effort to move to the third category. After searching for guidance for a term Policy, i’m sure i found my answer in your article. I request your views on the following thought of mine…..

If a private insurer goes bust/bankrupt, what could be the fate of people to whom it has sold insurance?

Regds,

Raghu

Posted on January 12th, 2011

Manish Chauhan says:

Raghu

Thanks for your comment, glad to hear that you got the final answer on my blog

the chances for any insurance company going bust is almost nil , as our IRDA makes sure that they maintain solvency ratio which is good enough to pay off every coverholder . Also incase one goes bankrupt , it would definately be taken over by some other company ,.

These are the thoughts well considering , but make sure that these do not stop you from taking ACTIION :)

Manish

Posted on January 12th, 2011

Sunil Date says:

@Bharat Shah, I still maintain that no body has stopped you from going to the same diagnostic center and getting the same medical tests done after paying the fees.

The prognosis process is proprietary information and the insurance company will not be ready to share it. They may share the same orally with your doctor.

Insurance is a matter of solicitation; it is not covered under the MRTP act. It is their privilage to accept a proposal or reject it WITHOUT giving any reason. If you do not agree with the increased premium you are free to decline their counter offer.

Posted on January 12th, 2011

Sunil Date says:

@Bharat Shah : When the company gives a counter offer loading the premium they do inform the basic reason for the same.

Posted on January 12th, 2011

Manish Chauhan says:

Balaji

It would depend on the company you are choosing out of . You can expect an increase of 50-60%

Manish

Posted on January 12th, 2011

bharat shah says:

@sunil date
thank you again for good information that it is not covered under the MRTP etc.! it is not that i had taken the insurance, though i did not want. i am only representing the insured’s views. the laws and rules are changing, sometimes on public opinions. i consider such blogs to air the views on insured/investor side. it is the facts about my case in yr.2002.

Posted on January 12th, 2011

Manish Chauhan says:

Amit

I dont think so . The form you have filled for two companies are different and it might happen that you gave all right info to one company , but wrong info to others because of which your premium was normal with first , but unnormal with other one . So its not the case that you can drag one company just because other company has paid (Its not about LIC vs pvt)

its about company vs company , It might happen that pvt pays you and LIC does not pay

Manish

Posted on January 12th, 2011

Manish Chauhan says:

Sunil

Thanks for confirming this :)

Manish

Posted on January 12th, 2011

Manish Chauhan says:

Sohil

Not always . very few policies allow that , have a look at the chart in the article. Also there are some policies which have increasing premium policies but that has to be decided at the time of taking the policy itself

Manish

Posted on January 12th, 2011

gaurav says:

@jig;
Just to see if the “agent hand holding” during the claims process has any real impact. I went to ICICI’s branch and spoke to the branch manager there about another policy. I asked him that with their iprotect rates so much better than the offline rates why should I go with the offline policy (through the branch). His answer was “with the offline policy, the branch will be there to help the nominee with the claims process while there is no such help with the online process. Having a agent helping you is so much better”. I just smiled and said you sound like the LIC agent who was trying to tell me why I should go with a LIC policy v/s ICICI’s.

In anycase, knowing the offline v/s online settlement ratios is more a curiosity.

Posted on January 12th, 2011

bharat shah says:

1.regarding selection of online or offline from a particular company, i think, more important point is the riders, particularly , ci and permanent disability due to accident , are not available through any online term insurance. so your choice for rider preference would be offline only.
2. submission of same correct information to any insurance company, i was informed that the insurance compny , in my case , kotak life, would give the copy of our application alongwith the policy document on finalisation of the pocedure.

Posted on January 12th, 2011

pprajru says:

@manish, thanks for the article!
i also plan to buy term insurance, so am digging the info on web & found the following results
in my view,

4) kotak’s max rider amount is 10L only whereas in sbi’s it is upto SA,

also
i) solvency ratio of sbi is more then kotak’s (refer statement 18 in irda report)
ii) in sbi, additions to new policies are more then deletions whereas icici delitions are more then additions whereas kotak is having additions nearly equal to delitions (refer statement 8 in irda report).

so my preference would be :
#1 sbi
#2 kotak

Posted on January 13th, 2011

sunil gavaskar says:

@Manish
An useful reply by one of our friend to my query on
was removed. Could you please post again in respective forum or just send me the content to sunilg78@yahoo.com

Thanks
Sunil

Posted on January 13th, 2011

Manish Chauhan says:

pprajru

Looks good to me . both are good

Posted on January 13th, 2011

Gurmeet says:

Mansih

Thanks fo this wonderful article

However, I have question….

I am a housewife and has no source of income and I want to take a term insurnace plan. But I guess the insurance companies looks for the source of income to calcualte the required sum insured to ensure that whether the person is over insured or not…if this is true then I can not take term plan?
can I take term policy and my husband can pay the yeraly premium?

What do you say?

Gurmeet

Posted on January 13th, 2011

bharat shah says:

i read one mail for prefering sbi term insurance v/s kotak life for considering sbi could give rider of a/m upto sa v/s limited to 10 lacs from kotak. i like to bring to notice that ci rider is given initially for 5 yrs. in case of sbi (subsequently it could be for more period with changed premium), v/s for whole period in case of kotak life.

Posted on January 13th, 2011

Manish Chauhan says:

Gurmeet

there has to be a “Insurable Interest” for some one to get insured . What insurable interest does your husband have on you ? He will not be financially impacted incase you are not there tomm .. I am not sure saying that you can not get any insurance, but it might happen in worst case that company rejects to insure you !

Also why you want to take insurance ?

to answer your question , you can take insurance and you can pay the premium (indirectly your husband) , note that he wont get any tax exemption for this

Manish

Posted on January 13th, 2011

Manish Chauhan says:

Bharat

OK , this was some thing nice info to know ! . How do you know this ? Does it mean the premiums might get revised after 5 yrs ?

Manish

Posted on January 13th, 2011

Rohit says:

Hi,

Want to understand a situation, I am 34 years, male, 94 kgs and for the first time diagnosed with type 2 diabetes. The tests done last year were well within limits. All other test as part of executive check up are normal and well within limits including tmt test. I am a non smoker and have diabetes history from my maternal side though none of my parents are diabetic.

What are the prospects of me getting a term policy with all 4 riders for say a SA of 50 lacs? What would be the loading that the company would be doing as compared to a similar person who is non diabetic?

A reply would be highly appreciated.

Rohit

Posted on January 13th, 2011

Manish Chauhan says:

Rohit

I dont think it should be a big issue to get a term plan . The only thing is that your loading will be higher , may be upto 50-100% depending on the severity and the company .

So the only way to find out is to actually apply for the company . Better go for the offline plan first and get the quote from the life insurance company

Manish

Posted on January 13th, 2011

Vinu says:

Private Life Insurers are there only for the past 10 years.
Atleast 50% of the death claims they receive would definitely be “Early Claims” to the company.
Probing into an “Early Claim” in all aspects in justified.
Obviously when there are any hick ups in the Proposal form signed by the Client, the Life Insurer has the rights to reject the Claim

Are we right in comparing companies based on the Claim settlement ratio??

Do you think LIC has the same Claim settlement ratio (i.e 96.54%) to all its “Early Claims”?

Posted on January 15th, 2011

Tarun says:

@Hemant, @Manish

The above claim settlement ratios which Manish has shown I believe are overall company-wide across various products i.e. ULIPs,endowment/term plans etc.
Considering Kotak or for that matter even ICICI/HDFC.; if you see the number of and type of policies people buy here are mostly ULIPS. Actual number from agent I talked to says about 70-80%. Now given that these ULIPS are costly and mostly people buy around for 10-20 years; claim settlement is not a problem for the company as the cost is already covered within first 3-5 years so its easy for the company to settle the claims.

Given this background I think actual term insurance claim settlement ratios will be far less. And I doubt most private companies add lot of verification activities which make claiming difficult.
After all these private companies do need to make profit and the investors would like to see how many rejections have been made to maintain their balance sheet.

LIC on the other hand even though a money making entity the basic idea is govt. promoted to help people insure their life.They dont do that exhaustive verification when claims are made i believe.

Posted on January 15th, 2011

Tarun says:

Hi Manish,

Excellent forum and excellent insight from you in all the articles. Jagoinvestor is definitely helping people to increase awareness kudos to your work! I have definitely learnt a lot here in last 3-4 days.
I am being pushed to get term plan by one of my knowns (ICICI agent) for ICICI pure Protect. I am not really motivated to take any kind of insurance as I am 32 with no liabilities/mortgage or dependents etc. However, the agent says that now you are young so u should get in now later it will be costly. Lets say if I buy after 5 years with 25years coverage vs now for 30 years I do see 17-20% difference in premium with LIC Amulya plan(which I will have to pay for rest of the term irrespective of when I start) so I am kind of convinced that I need to take now. In future liabilities are definitely going to increase and so is dependents (most probably I will get married :))

I am also convinced that I need to split it with two companies. So right now I am looking for 50Lacs cover. I am going to take second 50L later may be after 5 years when my liabilities really increase. Also, I have narrowed down to LIC and one private(most likely ICICI). However I am in doubt which one should I take now LIC or ICICI(say iProtect) here are two line of thoughts.

1) Take LIC now as premiums will be higher later better to get in later. Also as time passes the clam settlement numbers will be more evident for private players and perhaps we can go for it later when the need be.
2) Since there is no liabilities/dependents now whats the point taking some high cost policy (LIC). Better just take iProtect at dirt cheap price (may be with adviser) and be happy. As the competition in market increases with time even LIC will bring down price and perhaps may be will have online term insurance later so take it then ?

What do you think will be a good path right now?

PS: One thing I hate about iProtect is there is no disability/critical illness fee waiver. Perhaps I should take PureProtect instead or may be Kotak which has everything but then my agent is going to be angry. Will be difficult to pacify him. :)

Thanks again for your great insights.
Best Wishes!!

Posted on January 15th, 2011

Manish Chauhan says:

Tarun

The fact that you will pay more premium later is true but not always a bad thing , because you will NOT PAY for some initial years . So if what you save in first few years can make up for next many years . its ok .

Imagine paying 10k for 30 yrs or waiting for 5 yrs and then paying 13k for 25 yrs , you will pay 3k extra for 25 yrs which is 75k , but you have also saved 50k in 5 yrs which makes the situation same !

Manish

Posted on January 15th, 2011

Manish Chauhan says:

Tarun

Yes , you are correct

Manish

Posted on January 15th, 2011

Manish Chauhan says:

Vinu

Thats a great point . But if thats the case , what you are saying is that its not juistified to compare claim ratio of LIC and pvt as its different

Manish

Posted on January 15th, 2011

Tarun says:

@Vinu @Manish,

What I had read somewhere is that “Early claims” are those which are made immediately after start of the policy say within/before 5 years. This obviously justifies verification irrespective of the company private/LIC.

I think its right and worthwhile comparing based on claim settlement ratio as thats the final goal of all this exercise of getting the insurance. More so this becomes important due to the fact that new private are new into the market. Companies have to make business the more they reject the more money they make and more happy are the investors. Though IRDA does have rules and regulations there are always small ifs and else that companies can put into their policies which could help them make valid rejections. For e.g. in one of the policies I saw this ridiculous statement for accidental benefit if traveling as a fare paying passenger on plane. The flight has to be on scheduled time and route. What does it mean if flights are operating say on late schedules for some reason the claimer won’t get his claim. Thats like a good escape window to pay the claim.

Posted on January 15th, 2011

Tarun says:

Just to be clear on my point.Early claims are related to the start of the policy. By start of the policy I meant start of the individuals policy(after taking it from the company) and nothing to do with when the policy was incorporated as a product by the company for everyone.

Posted on January 15th, 2011

Sudha says:

Came across this site in my net wanderings for financial info and am so glad to have found it. Excellent articles – they have really ‘jago-ed’ me in terms of depth of info. Thanks!

Had a query. I have a money-back guarantee term insurance plan from LIC. During the plan term, I have received some monies back as bonus. Is this money-back option better/worse/not really beneficial than the above term insurance plans? At the time I took it, LIC was the trusted one around. My plan will expire soon, so I would appreciate advice to make a choice as to renew the money-back plan or opt for something like a kotak preferred.

Posted on January 17th, 2011

Manish Chauhan says:

Sudha

As your policy is close to maturity , you better continue it now .

Its all about how much return your policy has generated for you . If you look at endowment/money back plans , they give around 5-6% return at the end !

Manish

Posted on January 17th, 2011

Raj says:

Hi Manish,

I am 29 years old. I have taken one term insurance one year ago for 15 years term and 10 lacs cover from LIC. I paid this with single payment.
Now i want to again buy one more term insurance with long duration.
can you suggest which one i should buy.
I want to buy companies which are 100% indian owned like LIC, SBI. I know only two. do you know any one which are 100% indian owned and less premium with good claim settlement.

Posted on January 17th, 2011

Tarun says:

Thanks! Any suggestion on which option should be better 1) or 2) ?

Posted on January 17th, 2011

Sudha says:

Thanks a lot, Manish. Intend to keep the plan to maturity.
I never thought of returns as one of the yardsticks to choose a plan. Never thought of insurance that way. The return you have mentioned re: the endowment plan is good or ?? Or, after maturity of my current plan, would one of the plans you have mentioned would be a better choice in terms of cover, returns?? Do excuse if these seem like dumb questions, but am just learning and would really appreciate any info on this whole returns matter.

Posted on January 17th, 2011

Manish Chauhan says:

Sudha

Yea .. those are not great returns considering you have alot of time in your hand and you can make better return . remember that inflation is also there so if inflation in 8% and your retunrs are 7% , you are at 1% loss only .

For more on these things read

http://www.jagoinvestor.com/2008/06/evaluating-returns-which-return-is.html
http://www.jagoinvestor.com/2009/05/video-post-on-basic-formula.html

Manish

Posted on January 17th, 2011

Manish Chauhan says:

Option A will be better assuming you put those premiums in some other product which will grow , for example debt oriented funds

Manish

Posted on January 17th, 2011

pprajru says:

i dont think that any other insurance company is 100 % Bhartiya (Indian), almost all of them are like 76 % Bhartiya, 26 % foreign including SBILife

Posted on January 18th, 2011

Sudha says:

Thanks, Manish, for the advice & insights. Will check out the links.

Posted on January 18th, 2011

Dhawal Sharma says:

@Raj – Sorry to disappoint you but SBI LIFE is a joint venture between SBI and BNP PARIBAS on 76:24 basis, as like any other insurance company in the market..If you are looking for 100% Indian owned company other than LIC, you can consider RELIANCE LIFE INSURANCE..

Posted on January 18th, 2011

Ajay says:

Hi Manish,
nice comparison! however, one thing to keep in mind is that (based on my reading of IRDA’s report & talking to the Aegon Religare person on phone) – the claim settlement ratios are for overall policies – not broken down by type (e.g. iTerm / pure term etc); hence, difficult to judge specifically for term plans – which could be different (since premiums are low).

Secondly, what I’m also hearing is that even if I wanted LIC term plans, apparently, LIC rejects application itself if the applicant’s medical tests show up higher cholestrol etc – in other words, instead of adjusting the risk premium a bit upwards, they simply reject it and hence can afford to show the higher settlement ratio. Am not sure how accurate this is – but I got this info from a friend who approached an LIC agent who is his friend and this is “inside info” in some sense. Have you or anybody else had such experiences with LIC (or any others like Kotak preferred)?

Posted on January 19th, 2011

Manish Chauhan says:

Ajay

What you have said is exactly what I also feel and have got info from sources in last many years .. No doubt LIC claim settlement might be better than others, but its still exaggerated and “carefully prepared” and not very well understood

Manish

Posted on January 19th, 2011

pattu says:

I got Amulya Jeevan a year back. No lipid profile was done. So they cant know whether I have cholesterol or not. I was overweight and have BP. So my premium was loaded by 15.6%

Reject a policy is underwriters discretion. It seems like a intelligent move to me from the companies point of view. If this inside gyan is correct (I dont trust that in the first place) I surprised that LIC actually think this much ahead!

Posted on January 19th, 2011

Madhukara says:

Even though the comparison is good, but many of the premiums when I tried to validate are not accurate. you need to validate the premiums. Also you need to mention your age while calculating the premium.

Posted on January 19th, 2011

Pradeep says:

Hi Manish,
I wan to buy Health Insurance for my parents, both are at 60, my dad is having High Blood Pressure, Diabetes and moms health is in good condition.
Can you please suggest best Medical insurance plan, So that they can get best possible treatment in case of emergency, covering all critical illness. Even if Premium is high, no problem. please suggest best one.

Regards
Pradeep

Posted on January 19th, 2011

Manish Chauhan says:

Madhukara

Yes , I used online comparision sites for the comparison and they had stale data . The data is for 30 yr old person with 25 yr of tenure . Its written in the chart downside

Manish

Posted on January 19th, 2011

Manish Chauhan says:

Pradeep

The best place to ask this is forum : http://www.jagoinvestor.com/forum/

Manish

Posted on January 19th, 2011

ShanmugaNandan says:

First of all, I would say “Thanks a ton” to the author for this article,
i have been searching for info on term insurance, no where i could get such a comprehensive one….Thank you.

I have a query,
I am 30 years old applied for 1 crore term from LIC (Jeevan Amulya), premium paid & underwent medical test just yesterday and yet to get policy.
after reading this forum, I am seriously thinking of reducing the SA to 50 or 75 lakh & go for ICICI iProtect for another 50lakh which actually charges 1/3rd the premium amount from LIC.

what do you suggest ?

Also anybody knows if LIC can reduce the SA and refund the difference premieum?

also read in the forum that LIC planning to revise the premium rates, hope it will be applicable to old policy holders also.

Posted on January 19th, 2011

Basavaraj says:

Ajay,

I want to tell one general thing. If either LIC or any other private insurer rejected your proposal then they have to give valid reason for rejection. If proposer not satisfied with the reason then he may go to regulators as they can’t bias considering their profit gaining or mantaining their Claim Settlement ratio. So to me this point looks not valid. Every insurer has to work under the regulators. They cant work on their own wish.

Posted on January 19th, 2011

Manish Chauhan says:

ShanmugaNandan

Thanks for your appreciation . It felt great to hear that your last search on term plans was this article .

Regarding your policy with LIC, as you just now applied the policy and you still have to get it in your hand , you have a solution to your problem , Whenever you get the policy in your hand , from that day , you will have 15 days in your hand to return the policy and those 15 days are called “Free look up policy” . You should return the policy and only medical costs will be deducted from it and rest will be refunded to you .

There after you can apply for ICICI or Kotak or any PVT insurer for 50 lacs and rest from LIC . Note that it might happen that you will have to apply in LIC only after 6 months of cancelling the policy .

Overall , you will pay around 60-65% of the original premium which you would pay if you had gone only with LIC . so there will be some savings for you . Apart from that you will have flexibility of closing one term plan later incase you want to reduce your Insurance costs .

If company revises the old rates , it does not go to old clients ,old clients have to close their policies and take new again .

Manish

Posted on January 19th, 2011

Manish Chauhan says:

Pattu

Why did you think that LIC cant think this much ahead . They have been the first in this area and they would be having the best processes I am sure .

Manish

Posted on January 20th, 2011

Manish Chauhan says:

Raj

I think you should take your concentration from 100% owned to a consistent performer . See Dhawal comment

Manish

Posted on January 20th, 2011

Manish Chauhan says:

Sudha

Thanks ..

Posted on January 20th, 2011

Amit says:

I am planning to buy 50 Lakh term insurance as ICICI prudential is less prmium but you said its settlement ratio is not as good . In ICIC premium is approx 8.5 K for my age – 33 (retrierment Age 60). I donot abt LIC premium but it will be definatly Hogh . Can you Pls tell if i atke online than there will no issue for claim settlement . so should i go ahead or not with ICICI.

Posted on January 21st, 2011

Manish Chauhan says:

Amit

If you fill all the data correctly there should not be any issue with claim settlement . Why dont you break your cover into two ?

Manish

Posted on January 21st, 2011

Amit says:

Dear Manish,
Thank you very much for a very quick response.
You mean break in to two means one in LIC 30 Lac & other in ICICI 30 Lac . Also let me know hwat do u mean all data connreclty fill . whatever its their we will fill up that column. what are the data come under that.
Thanks & Regards,
Amit

Posted on January 21st, 2011

Vats says:

Manish,

Post is Very well articulated. I would want to know one thing. What’s your view on buying Term Plan by paying a single Insurance premium than paying annually. Can you please provide some numbers related to the same? Or do you feel it will be a burden for the the person taking insurance to pay such hefty sum one shot.

Posted on January 21st, 2011

Manish Chauhan says:

Vats

Not always , You can definately pay single premium if thats what you want , the only thing is why to pay so much in one go even if you have it ! . Cant you put “Single Premium” worth of money somewhere and generate “Annual-Premium” out of it ? If YES , then just pay annual premium ! . If your concern is “what if I forget paying the premium and it lapses” , then its a different thing .

Do some maths yourself and come up with a conclusion and share with us

Manish

Posted on January 21st, 2011

Tarun says:

Also, lets say for a 50Lacs you have to pay single premium of 5L and lets say something happens to you in 2nd/3rd year. Then essentially you got only 45Lacs back. There seem to be not much value in paying single premium. If you are worried about paying premium better put the amount one side into a savings account and setup an electronic transfer with the company. You are happy and so is the company :)

Posted on January 21st, 2011

Manish Chauhan says:

Tarun

Check the numbers for one time premium and yearly premium and see if you can generate that yearly premium with single premium or not

Manish

Posted on January 21st, 2011

ashish says:

hi,
May be a silly question to ask but do you know of someone whose claim was genuine but still was rejected, challenged before the regulator and still refuted.

Posted on January 23rd, 2011

Manish Chauhan says:

Ashish

I dont know any one like that personally :)

Manish

Posted on January 23rd, 2011

Arun Kumar Sharma says:

Dear Manish

Bravo !!! Well done !!!

Thanks very much for this nice article ! Your this article has timely helped me in making my mind.

Now, i am going for LIC Amulaya Jeevan (25 lacs) & Kotak Preffered term plan (25 lacs) with additional disability rider (10 lacs) & Critical illness (4 lacs).

Thanks Buddy & keep posting these informative article !!!!!!!!!!!!!!!11

I feel good that at such a young age, you advise is like a CFA.

Thanks a lot again !!!!!!!1

Posted on January 25th, 2011

Manish Chauhan says:

Arun

Thanks :) . I am glad it helped you in taking decision . btw , do you know any CFA who advises well in personal finance, I think you wanted to say CFP !

manish

Posted on January 25th, 2011

nairobi says:

Thanks! very useful information!

Posted on January 27th, 2011

Arun Kumar Sharma says:

Yes Manish ….. I wanted to say CFP (Certified Financial Planner), not CFA …… thanks for pointing & correcting……….

Manish, also i want to congratulate & wish you all the best in your life/career.

Your reply to each & every query is highly appreciable. In just 2 years…. you were able to get so much of crowd.

Keep it up buddy, i’ll be looking forward for your new articles.

Posted on January 29th, 2011

Manish Chauhan says:

Arun

Thanks Arun:)

Manish

Posted on January 29th, 2011

Sachin says:

Hi Manish
I want to take a term plan shortly and mostly I will go for LIC Amulya Jeevan through single premium option. However, what are the implications if I take up job outside years in next few years? The job overseas may be for a period of 6 to 8 years and after that I plan to return to india. Will my policy continue to be in force if I intimate LIC of the change in Job / Residence status? If the policy is to be closed, what happens to the premium paid and should I go in for single premium (in the likelihood of overseas job) or should I go for yearly premium? Any other implications?

Posted on January 29th, 2011

Sunil says:

Following you people’s sincere advices on revealing every health information..
http://www.jagoinvestor.com/2010/09/9-most-asked-questions-about-term-insurance.html
I decided to reveal, my gastro related issues and my back pain problem. etc
But when I was asked to scan my spine to diagonise my back pain problem,
—found disc prolapse causing back pain
–additionaly it’s found that there is a tumour in my spine which is causing nothing now, but may cause disability or unexpected thing in future.
Should I need to reveal that too? If so, will my policy be accepted ( by LIC ) ?
LIC having most claim settlement ratio, shall i ignore the last info? bcoz taking no term is better than this ingnoring one such info?
plz throw some light on these…

Posted on January 30th, 2011

Sunil says:

A small correction on my comment… 318
LIC having most claim settlement ratio, shall i ignore the last info? bcoz ignoring one such info is better than not taking term!!
plz throw some light on these…

Posted on January 30th, 2011

sunil gavaskar says:

Points to consider while calculating SA .. ( Death benefit value )
— Most of the employer has Group Term insurance – Helps much to reduce required personal Term insurance – SA
–To include corpus as from Employee Provident Fund account while calculating the SA.. which will be one of the major contributor
— The monthly expense will go to 40k in next 12-15yrs and corpus required for MIP should be considered carefully. ( say 60L in MIP )

Posted on January 30th, 2011

vijay r d says:

hi manish,

I’ll be 31 yrs in june 2011. I am married with 1 kid. My kid will be of 1yr in july 2011. Our monthly income is 43k. Planning to buy house worth 13lkhs with homeloan.

I read all your excellent articles about investments and insurance. But, i need your guidance for planning my insurance with above information and what way i should go for it.

Thanks&Regards,
Vijay Doiphode

Posted on January 31st, 2011

Manish Chauhan says:

Vijay

You should but the term plan . It would require some calculations , but you can always have a rough idea on how much money would be enough to take care of “everything” incase you are not around . Split it in two ..

What specific info you need ?

Manish

Posted on January 31st, 2011

nilesh says:

sir,

a good anaylisation of term plan.i have gone through your suggesstion & facts

which has really helped me to known about private players.i think you are rather

biased in suggesting kotak as best plan.to me how could we trust any company

for 25 to 30 years without any track like lic,sbi which existed for past 50-60

yrs.moreover kotak is managed by proprietorship type with no government

intervention in case of any colaspe only irda to help it out.so according to

a layman trust factor could be applied for long term on lic & sbi.pl kindly

clear my misconception about it.

thanks.

Posted on January 31st, 2011

Manish Chauhan says:

nilesh

all insurance companies are governed by the same laws and rules which is insurance act and regulated by irda , i understand the trust factor with lic as its the oldeat one , but others are also doing good , the reason for suggesting kotak is that its one of the cheapest , old and in-profit companies in pvt insurance comoanies , same with sbi also

manish

Posted on February 1st, 2011

Dhawal Sharma says:

@NILESH – Just to set the records straight, KOTAK LIFE is not even 25-30 years old as you have put it..PRIVATE PLAYERs are in the INSURANCE SECTOR since 2000 only, so all insurance companies except LIC are 11 to 12 years old at the most…

Secondly, KOTAK LIFE has a very good track record of late..For last 3 consecutive years, its posting profits (only 3 or 4 private companies are in the profits)..Claim settlement of KOTAK LIFE is in decent range of 88% to 90%..

KOTAK LIFE is a joint venture between KOTAK MAHINDRA GROUP and OLD MUTUAL INSURANCE which is 150 year old company (Much-much older than LIC and has proven track record over such a long period and that too in 45 countries)..

Another point to add is that SBI LIFE is also in joint venture with BNP PARIBAS INSURANCE of FRANCE..So according to your understanding, its also a PRIVATE COMPANY and it certainly does not have a track record of 5o-60 years as you have put it…

Just to add lastly, if your documents and information is correct in the proposal form then there is no force in the world which can deny the genuine claim, no matter from where you have taken your policy, be it LIC, KOTAK, or the newest entrent INDIA FIRST…

Posted on February 1st, 2011

Manish Chauhan says:

Sunil

I am not sure .. obviously stating it would mean increase in premium .. but you know it now as you have done the tests , what if you didnt do those tests , would company have come to about it ? thats my confusion also .. ask it on forum : http://www.jagoinvestor.com/forum/

Posted on February 1st, 2011

Manish Chauhan says:

Sachin

there should be no issues actulaly ,.,. you should go for yearly premium only, as you can always pay LIC premium online

Manish

Posted on February 2nd, 2011

Girish says:

Hi Manish,
Really nice write up for novice who cant read whole of irda documents.
I m interested in buying Term plan from Kotak for 75 lacks for 30 years
Premium comes out to 8500 something.

My question is that my father is patient of depression
and my mother is having high Blood pressure.

I was having problem of nuphritus(kidney problem) when i was 5 years old and from last 12 years it is perfectly fine.

My age is currently 23 years

Do I need to mention all these things while filling the form.
And is it right to take term plan at such a less age?

Your response will be most awaited

Posted on February 2nd, 2011

Manish Chauhan says:

I have replied you already about this on facebook :)

Manish

Posted on February 2nd, 2011

Hema says:

I was looking at information on term policies and stumbled on your blog. Your blog is good with lot of information and I did like ur sense if humour in some of the comments.

I looked at various sites of insurance companies and have sound out these facts

1. Aegon Religare is the cheapest online insurance if you consider pure term policy with no riders for a 34 yr old, term 25yrs (maximum), annual premium is Rs.7776 for 50lakhs SA
2. ICICI I protect option 2 is one step ahead with accident rider but a bit costlier than Aegon Religare for a 34 yr old, term 25yrs, annual premium is Rs.10423 for 50lakhs SA
3. Kotak Preferred term plan is the next for a 34yr old, term 25 yrs annual premium is Rs.9210 with no riders.
ICICI I protect seems to be the cheapest if you consider the additional cover on accident with a bit extra cost. Iam confused whether to take Aegon Religare or ICICI. No one has mentioned about Aegon …Iam not sure if its ok to take it or take ICICI with a bit extra cost which will give additional benefit in case of accident??

Hema

Posted on February 3rd, 2011

Manish Chauhan says:

Hema

Did you check Kotek e-Preffered plan which is thier online option . I am sure it might turn out to be cheapest . You can go for ICICI .. but read others review about their customer service

Manish

Posted on February 4th, 2011

Mayur Modi says:

Hi Manish / Rahul,

Ofcourse NRI can buy LIC and other career policy.

Just to bring your attention here, most of NRI apply for Green Card / Permanent Residence and they disqualify from LIC policy .

Source: http://www.licindia.in/nri_centre.htm

# NRI should not be a green card holder. He/She should not have applied for or planning to apply in the near future for acquiring citizenship of his /her present country of residence or any other country.
# It is clarified that People of Indian Origin having foreign nationality and residing in foreign countries (PIO) are not considered as NRIs for the purpose of allowing insurance. Rules applicable to PIOs are given in the last paragraph.

Thanks,
Mayur Modi

Posted on February 8th, 2011

Mayur Modi says:

Hi Manish / Rahul,

Ofcourse NRI can buy LIC and other career policy.

But just to bring your attention here, most of NRI apply for “Green Card” / “Permanent Residence” and they disqualify from LIC policy .

Source: http://www.licindia.in/nri_centre.htm

# NRI should not be a green card holder. He/She should not have applied for or planning to apply in the near future for acquiring citizenship of his /her present country of residence or any other country.
# It is clarified that People of Indian Origin having foreign nationality and residing in foreign countries (PIO) are not considered as NRIs for the purpose of allowing insurance. Rules applicable to PIOs are given in the last paragraph.

Thanks,
Mayur Modi

Posted on February 8th, 2011

Manish Chauhan says:

Mayur

Thanks for the information :0

Posted on February 8th, 2011

dhawal sharma says:

@Manish – Very interesting…Please check this out…

http://www.finwinonline.com/2010/05/how-much-time-it-takes-to-settle-life.html

Posted on February 10th, 2011

Manish Chauhan says:

Dhawal

This needs to be done again for the recent data ! . Looks good

Posted on February 10th, 2011

chandranshu pandey says:

Dear all,

I read the blog and decided to go for ICICI i protect for 50 lakhs, paid premium on 10th Jan and policy got issued on 11th Feb. As of now on net it says ‘policy in force’ and document to reach within 15 days. Very pathetic experience for last 1 month, it was beacuse of earlier commenst that it takes 30 to 45 days I held on to it. Hospitals tied up with pru-life were third grade, the person who wanted to collect document had diffrent application no. I had to go to branch to submit documents and press for issuing letter for medical check up. Over all blog did help to get policy issued. Also after reading this blog I decided to take 50 lakhs each from ICICI and LIC. Now I will try to take polict for LIC.

Chandranshu Pandey

Posted on February 11th, 2011

Manish Chauhan says:

Chandranshu

Sorry to hear your experience ! . Did you read all the comments before going for the policy ? I think there were enough number of people who had bad experience .

Manish

Posted on February 12th, 2011

Anurag says:

well said Tarun
the contribution of Lic of India can not be overlooked
Lic of India has always taken responsibility towards Indian Economy,

we as a policy holder should not think only about the return.
when we think about the safety of our fund
there is Only One entity that is LIC
as per political situation of India, Lic is secure than GOVT.

Posted on February 12th, 2011

Manish Chauhan says:

Anurag

Then why not FD with SBI or invest in debt funds of LIC only ?

Manish

Posted on February 12th, 2011

Anurag says:

when you need to dig the information about your policies
lic is only providing the portal in simple steps
lic provides information about lapsed policies….this is really awesome feature of Lic portal

Posted on February 12th, 2011

Manish Chauhan says:

Anurag

Great, thanks for your reply .

Manish

Posted on February 12th, 2011

Anurag says:

Anunay
if you declare every thing about your health and living habbitts
the insurer will definitely load extra premium as per their policy underwriting rules
thats why some of very normal wrong declarations are always been possible.

Posted on February 12th, 2011

bharat shah says:

@manish
i knew from the information document from their site. it clearly indicated that the premium for ci rider would change.

one request : can you make possible to go to bottom from top and vice versa for any page? it will save lot of time for regularly visiting members for further comments ,if any.

Posted on February 12th, 2011

bharat shah says:

i read a post to praise lic for providing support by funding govt. efforts for uplift the country on this blog. indeed it is. however one should also recall that there was no offering of pure term insurance in india before entry of pvt. players in the field. and so needy could not afford it, and perhaps most of who were getting insured, really did not require it! premiums came out after pvt. players’ entry is other story.

Posted on February 12th, 2011

Prasad says:

Here’s an update to my earlier comments.. On 8th Jan 2011, I applied for the ICICI iProtect II term plan that includes accidental death benefit too. Within a couple of days, I received the email requesting me to undergo a medical check up. I was also asked to submit a few documents to the collecting agent in my city. Did both within a week’s time (by 16th Jan). On 30th Jan, I made a call to the customer care enquiring the status of my application. I was told that the medical findings were already with them, but the documents hadn’t reached them. The representative was well mannered and had the courtesy to apologize for the delay – he also mentioned that they were having problems in many places with regard to tie-ups for document collection. He also suggested me to scan the necessary documents and email it to them, and the policy would be issued promptly (medicals were all fine).
I sent the scanned docs on 3rd Feb via email. On 9th Feb, I received a message stating that the policy had been issued. On 10th Feb, I could create a user id and password to login and manage my policy online. On 11th Feb, the policy documents were sent by Blue Dart – which I am yet to receive. Hopefully, I will get them within a couple of days time. Overall, it was a pleasant and uneventful experience. I too was apprehensive after reading the reports of bad customer service, but my apprehensions were proved wrong. I would definitely recommend ICICI iProtect.

Posted on February 15th, 2011

Tarun says:

Prasad,

Could you tell which city you did this? My guess is metro city/Bangalore? Also, as you were considering for riders, I think this one doesnt have waiver premium/critical illness/disability cover. Accidental death benefit doesnt seem to be useful eithere since when the death occurs one is anyway entitled to get the SA. So getting extra money when death occurs specifically due to accident as such provides not much value. I would have liked instead if they had disability/critical illnes/waiver premium.

Thinking in this manner I feel spending extra 30% premium for just this is not worth taking this option.
http://www.iciciprulife.com/public/Life-plans/iProtect/features-iProtect.htm
Manish/others have any view on this ??

Posted on February 15th, 2011

Tarun Mittal says:

Manish

Thanks for providing such valuable information with regard to term plans. It has helped cleared many doubts in minds of layman like us. My age is 33 years old and i am planning to buy a one crore term insurance. Although i have zeroed on in Kotak Preferred Term, i am yet to take the leap.

I still have some questions in my mind which i would like to ask you :

1. Why does LIC charge such a heavy premium for the same product and so, why is it so uncompetitive in the term insurance market?

2. (this is a logical corollary of 1st ques)
Why and how does private companies like Kotak charge such low premium and how do they survive? Do they refuse claims on miniscule things and issues?

3. What precautions should one take while providing information while filling the application and other papers before taking the policy?

4. I am told that the company will carry out a nicotine test for detection of nicotine in blood, and other very exhaustive tests to ascertain the profile of the to-be-insured. My ques in this regard is:
a) what tests are generally carried out?
b) who foots the bill for the same?
c) once the company has carried out the tests and has issued the policy obviously on the basis of those tests, how and upon what grounds in the world can the company refuse to pay claim? Isnt it in our own benefit also that the tests are carried and whatever reports come, are actually being acknowledged and accepted by the company before issuing the policy? Doesnt it provides a shield for us as well against refusal of company to pay claim?

5. Supposingly the company goes bankrupt or runs into losses or other financial trouble in futute, is our insurance safe? is our sum assured safe? Are there any specific provisions in law for the same? In other words, how do we ensure our peace of mind with regard to companies like Kotak, when the sole purpose of buying the insurance is to guarantee financial security of the family and peace of mind as well?

I and many readers would be really thankful to you for providing answers to the above questions.

Regards,
Tarun Mittal

Posted on February 15th, 2011

Manish Chauhan says:

Tarun

1) Because of thier mortality tables which are very old … Thier data depends on the old information about health , so hence they are still charging higher premiums .

2) No company is charging you less, every one is charging right premium + their profit margin , they have revised mortality rates + they have online option also which saves them admin costs + agents commission .

3) Just make sure you give all authentic info ..

4) companies bear the expenses for everything . This test is generlaly to make sure you are healthy and to find out if they need to increase the premium or not ,.. There are several things which cant be known by your medical test , like bad medical history , if you have some medical issue before 3 yrs or things like that .. and most of the rejections of claims are because people give wrong information while taking the policy .

5) generally i am not sure of the guidelines .. but incase a company ius getting bankrupt or anaything like that , its taken over by other .. but anywyas you should go with compnay which you TRUST

Manish

Posted on February 15th, 2011

Manish Chauhan says:

Prasad

This shows that its a case to case experience if its bad or good .. some places have bad adminstration and other places dont ,. But overall I personally would rate ICICI Protect as bad service providers as 50% or more cases I have heard had horror stories in it .

Manish

Posted on February 15th, 2011

Manish Chauhan says:

Tarun

I look at this a bit different way .. accidetal rider gives you flexibility to take extra cover at minimal cost , so take 50% of what you want to take as base cover and taken 50% more addition as accidental rider , so u end up taking proper cover for yourself .. this you will get a cheap extra premium because of rider . with very high probability some one dies by what ? I think accident only !

Views ?

Manish

Posted on February 15th, 2011

Tarun Mittal says:

Manish

Thanks for answering my questions.

Given my age (33 years) and my requirement (one crore insurance), which according to you will be the best option for me?

Also, as regard to riders, you have suggested to somebody that one should take 50% as base cover and 50% as a rider. But if you take example of Kotak, the riders cant exceed ten lacs. What is to be done in such a scenario where one is looking for a one crore insurance and the riders available are no more that 10-15% of the total sum assured.

Tarun Mittal

Posted on February 15th, 2011

Prasoon says:

I’ve heard that insurance providers do their best to deny claim for accidental rider on basis of silly excuses. And sometimes, they ask for such proof which are almost impossible for hapless/helpless family members. Denying death claim is obviously difficult, but denying accidental rider amount seems very easy for them. Are my concerns baseless?

Posted on February 15th, 2011

Manish Chauhan says:

Prasoon

They are not baseless , but they are incomplete .. the cases which you have heard are from families where they didnt give some right informaiton or incomplete informaiton which only the main person knew ! and not family and once the main person dies , the company comes to know about the “base less fact” or “silly excuses” which was silly or baseless for family but not from company point … and hence denying the claim is very well in thuier rights , its because they have covered a high risk person but got normal premium from him all these years ..

I hope you will get convinced a bit from my answer if not fully ..

Imagine your self as company and you are doing business, you insure a person and have two rates , Rs 10 per year for non smoker, but Rs 20 for a smoker .. Now i have smoked for 15 yrs and then left smoking 2 yrs back .. but as i dont smoke now , i dont mention it in policy , i hide it thinking ki “chalta hai!” .. i get Rs 10 from him for next osme years ..

Is it risky for me to cover him than a normal perosn ? NO ! . he has been a smoker and his lungs and heart are all hallow now ! .. they are infected and he has high chances of DYING than a normal person .. then he actually dies .. autopsy is done and report says lungs gone because of smoking all these years .. I reject claim because i was underpaid and I was made to beleive that the person was healthy , thats the reason i was charging him less premium .. so I DENY .. I as a company am right and in very ethical with the customer and my business ..

But imagine what happens to family ,did this person tell his wife or children about his “hiding” of informaiton , NO , because it was too small things to discuss .. family thinks they are secured , have no issues.. and later when their main bread winner dies , and in that rona dhona they dont get the money , out of frustration everything will look like “silly excuse” or “baseless” … Insurance is not a easy thing to understand .. big regulators are watching .. everything is audited .. the main problem is we dont look into it and try to understand how it works .

Its a pure business .. Insurance companies will always be in profit if they pay all the genuine claims … Its we customers who have to get genuine first !

Manish

Posted on February 15th, 2011

Prasoon says:

Thanks for detailed explanation. I completely agree with the fact that if one hides something from insurance companies, the onus of rejection is on no other than him/her. After reading your posts/comments (for 1-2 months) I have got a good idea of this complex thing.

But, my concern is here regarding Accidental rider claim. Is there any case where company pays death claim but does not pay accidental benefit? On the grounds like person died first and accident happened later or vehicle was not registered or something other…

One of other question, if we remove rejection cases of within two years and smoker/non-smoker cases, will percentage of rejection reduce drastically?

Posted on February 15th, 2011

Manish Chauhan says:

Prasoon

hmm.. I am not sure on that .. may be we need experts opinion on that .. let me bring dhawal sharma for that .. our helper in trouble :) .

Also , Most of the rejection cases are very new one’s as there is generally a detailed check and investigations in cases less than 2 yrs old .

Manish

Posted on February 15th, 2011

Dhawal Sharma says:

Thanx for the Compliments Manish..I like HELPER in TROUBLE :-)

As for the hypothetical situation put forward by PRASOON, hypothetical answer would be that if a person dies of HEART ATTACK/HEART FAILURE while driving the car and car collides with a TRUCK/WALL, and later on its written in DEATH REPORT that death has occured due to HEART FAILURE and not due to any accident, then company will be in its legitimate rights to deny the claim..I have not come across any of such cases in my career nor have i read something like this but few seniors told me that almost always these kind of cases are complied with by the company on the humanitarian grounds (Of course, SUM ASSURED being less and not for cases where sum assured is 50 lakhs ;-) )..

Thirdly, again i will emphasis that ALL INFORMATION DISCLOSED in PROPOSAL FORM, GENUINE CLAIM at the time of DEATH, DEATH within the parameters of the POLICY (Death due to TERRORIST attack and policy covering these types of claims), and all documents required are provided to the company (DEATH CERTIFICATE, ORIGINAL POLICY BOND etc) – then no matter what ratio or which company, CLAIM will be paid..

So lets focus on getting these things right rather than what would be the claim ratio and all..

Posted on February 15th, 2011

Manish Chauhan says:

Dhawal

Thanks for the reply :)

Manish

Posted on February 15th, 2011

james says:

Don’t see the need to go to such a complicated scenario person died first and accident happened later although it is possible. Much more simple and common problems are there:

Accident claims require proof of accident. In most case it is FIR. In hit and run cases this maybe difficult. Perhaps then claim can be delayed or rejected.

Also if company gets evidence of recklessness driving with someone without license or unregistered vehicle or vehicle with poor brakes claim can be rejected. So FIR report can be used to reject claims!
Consider this: Suppose a manager while on site inspection gets hit by a crane and dies. The company has to agreed to file FIR only then it can be proved it was an accident. So in this case it maybe difficult to claim rider amount.

Posted on February 15th, 2011

Prasoon says:

Thanks James for clarification. That was my point. In many cases it may be really difficult for kins of deceased to provide accidental proof to satisfy insurance provider. While getting death claim only is relatively easy.
However, I may be wrong completely!

Posted on February 16th, 2011

Tandon Ji says:

Namaste Manish Ji,

Thanks for doing a wonderful job with your blogs on insurance in general and term insurance in particular.

After reading a few of your blogs and many of the readers’ comments, I must say I was stunned to realize my own lack of knowledge in this subject matter. So thanks once again!

For a term insurance buyer, the trustworthiness of a private insurer is the biggest factor. But private insurers being private insurers can never match up to LIC on this. However, if a private insurer has been selling a particular term insurance policy for quite a while, it would give the buyer some assurance that because so-and-so policy has been around for quite some time, there must be something good about it.

I believe it’d be a good idea to compile a list of all currently available term insurance policies chronologically, the logic being: the older the policy has been in the market, the more trustworthy it is.

Do you think it’d be useful?

Regards,
Tandon Ji

Posted on February 16th, 2011

Anand says:

Another view to the whole term buying experience. A few months ago I wanted to buy a term policy and approached a number of insurance companies (called up the company and asked them to send an agent etc.). Almost all the agents who came over, gave me the top level quote for a term policy (mostly avbl at the site) and then started pushing ULIP and other policies with higher commisions. Once I stressed that I wanted a term policy, almost all of them got uninterested. So I think the only option left to actually buy a term policy may be via online, even if there is delays and bad customer services (atleast it cannot be worse than what I get from the agent route)

Posted on February 17th, 2011

Manish Chauhan says:

Anand

haha .. i like that one :0 . Like I say “if you have waited for 30 yrs , why not 30 more days ! ”

Manish

Posted on February 17th, 2011

Manish Chauhan says:

Tandon ji

Thats a good point ! . In that case you can look at SBI , HDFC and ICICI as options :) . they are pretty old now

Manish

Posted on February 19th, 2011

Tarun says:

Good point to consider. But the amount of clauses they have put for accidental makes me skeptical e.g. ” Flight should be on scheduled route and on time” “Accident should be clear evident from external source etc” Also to illustrate. My cost is coming about 7666 for basic insurance,while it is 10,203 with accidental for 50Lacs. While for 1Cr the cost comes out to be 12,330. So one could as well take 12,300 to assure 1Cr.

Posted on February 19th, 2011

rajiv saxena says:

hi, what is the procedure for death claim from insurance companies?
please reply

Posted on February 20th, 2011

Manish Chauhan says:

Rajiv

See http://www.jagoinvestor.com/2010/09/9-most-asked-questions-about-term-insurance.html

Posted on February 21st, 2011

Sampath says:

After lot of research, i decided to go for Kotak Preferred Plan.
I wrote to their Customer Service, filled the Contact us form, No one cared to call me , its been 3 weeks :(

Now am afraid about these guys… they are not even calling people (from Metro city) who wanna take policies… Dont know what will be the situation during claims..

Posted on February 21st, 2011

Subhashis Das says:

After reading this good topic & discussion forum, I zeroed on Kotak & went to buy a SA 1 crore term policy for myself. I went to Kotak Life Insurance’s “Chinsurah” (W.B.)Branch office to find what term policies they offer & what are the details. The branch is on 2nd floor of a shabby looking building in a busy area & it appears that customers do not visit the branch personally. The staff were clueless about term policies & seemed apathetic to customers. After referring me from one table to other finally a manager looking elderly guy appeared & told “e-preferred policy is reserved for Kotak’s own employees” & thats it! I turned out saying thanks to them. No one bothered that a potential customer is leaving the door. I wonder what kind of service the staff would be able to provide if the need arise. My total sympathy is with Kotak’s policyholders.

Posted on February 21st, 2011

Manish Chauhan says:

Subhashis

Thats bad . Its not a healthy sign for great customer service .

manish

Posted on February 21st, 2011

Ankur says:

Hi,

Thanks Manish for this insightful article.

I am 28 years old, married with no kids. My wife is currently studying and will start working in an year or so. I have a home loan of 44 lacs and hence interested in a term insurance policy.

Reading the article and all the comments above I would go for either LIC or ICICI protect. I plan to take 50 lacs of insurance cover.

What I want to know is: why is it generally considered better to take health policy etc to cover accidental death, permanent disability, critical illness etc. instead of going for the riders in the same insurance policy.

Also, I am confused whether I should split my policy among two different insurance players just to split my risk in the event of claim rejection?

Thanks!

Posted on February 21st, 2011

VJ says:

Hi Manish, I must compliment you for your wonderful blog. I have made it as a habit to check your blog before deciding on any financial product. I have a query and grateful if you could help me. I have a MET Suraksha policy from Metlife for Rs. 30 lakhs with CI rider of Rs. 5 lakhs and the policy term is 20 years. I have been paying premium of approx. Rs. 30,000 p.a. regularly for the past 4 years. But Metlife service is pathetic and I do not wish to renew it. I already have applied for Kotak preferred term plan for Rs. 60 lakhs which I am yet to receive the policy document. I wish to go for another term plan using the premium of Rs. 30k p.a in addition to Kotak preferred term plan. I have shortlisted i-Term, i-Protect and SBI Smart Shiled. Could you please help me in choosing the appropriate plan? My age is 48. Thanks in advance.

Posted on February 21st, 2011

Manish Chauhan says:

Ankur

There are different cost involved in a product , sales cost , distribution cost , operational overheads , documentation etc . IN term plan , its all there already and you just have to add in the features of those add-on products , due to which the costs come down , In stand alone policies there are all the costs seperately .
Yes you should split the policy to diversify the risk and to get flexibuility of reducing the cover later incase you need it

Manish

Posted on February 21st, 2011

ShanmugaNandan says:

I had applied for LIC’s Amulya Jeevan for 1 Crore term plan….initial estimate was Rs. 31800/- after medical checkup and one month ,now they are quoting
Rs. 49,166/- !!!!!! .
I am seriously disappointed.
I am non-smoker, non-drinker, normal bp and no history of diabetics in family. Age 29 married…only problem is with my weight which is 95kgs…however i wont look like one as my bone weight is always high.
I am seriously thinking of cancelling it…and going for others…wht do you suggest… ???
ICICI iprotect initial quote is 11k + additions may get to 20k max….but 49k is faaar higher….

Posted on February 22nd, 2011

Manish Chauhan says:

VJ

30k premium for 30 lacs cover is too much for your age , because you have taken it 4 yrs back the rates are the older one and very high . As you want to go with Kotak , I would suggest going for Kotak e-preferred instead of kotak preferred , as its a online term plan and will be a cheaper one . Note that you should split your insurnace in LIC + kotak-epreffered .

See how much is the premium for 30 lacs in LIC + 30 lacs in Kotak e-preffered . I think it will not cross 30k . Also be patient with online term plan , they are more slower than ofline plans , which city are you in ?

Manish

Posted on February 22nd, 2011

Manish Chauhan says:

Shanmuganandan

You dont need to be disappointed , its a pure business act . LIC rates are higher than others as their mortality rates are older , they are not revised .

There are two suggestions I can give to you .

1) Why dont you forget about term plan for a while and seriously work on reducing your weight , you might be thinking about it from long and beleive me it will never happen if there is no motivation , you need to be more committed , not just interested in reducing weight . Make a project , take 6-9 months, reduce it to decent levels . And then apply for the term plan . YOu will be happy for two reasons :) [RECOMMENDED]

2) TAKE 25 lacs from LIC and rest from ICICI .

Manish

Posted on February 22nd, 2011

Dev says:

Manish,

I have gone through this post of term insurance and first would like to thank you for such a wonderful post. This has been an eye opener as I was not knowing any details, necessities and benefits of term insurance. Thanks to many knowledgeable fellow posters also who have asked good questions and also provided answers.

I an in the process of identifying two term insurance policies from 2 players for 50 Lakh each. After hearing from you, Dhawal Sharma and others I have decided to go with private insurers and stay away from LIC due to their high premiums :-). At least it appears that no claim can be rejected if all the facts are provided correctly and genuinely I don’t have any intention of cheating insurer as well. Also, hope policy portability moves by IRDA will become easier and easier as time passes..

By looking in to comments from fellow posters, I have all most finalized on Kotak e Preferred and ICICI i protect plans for 30 years. But AVIVA and Metlife are providing policy till the age of 70 which would come to 34 years in my case. It seems there is not much discussion on this point of having policy more than 30 years in this post.

Given the fact that customer service seems to be average or below average in most cases/companies, I feel that its better to go with company which can provide cover for a longer period. I have calculated the premiums and its not significantly higher for policy of 34 years. I am fine paying a little higher premium for longer coverage. I will always have the option to stop paying the premium at a later date if I want to.

Whats your thoughts on this ? Do you suggest to go with AVIVA/Metlife for 34 years or KOTAK/ICICI for 30 years.

I will post my experiences once I complete the exercise of buying. I am in the process of contacting the insurers and this post has already helped me a lot to look for right information and ask right questions to agents.

Thanks !!

Posted on February 22nd, 2011

VJ says:

Hi Manish, Thank you very much. I think I have not conveyed the information properly. I will try to bring in more clarity on the Kotak insurance policy. I have already paid my first premium for Kotak Preferred plan for Rs. 60 lakhs and underwent the required medical tests too. I am told by Kotak that I would be getting the policy document anytime now. I wish to take an additional policy in lieu of MET Suraksha for which I am paying Rs. 30,000 p.a currently. As you have rightly pointed out that the premium rate is very high for Metlife policy, I wish to opt for a term policy from some other insurance company other than Kotak (as I have a policy with them already). I wish to use the Rs. 30k that I am paying currently to Metlife and take this additional policy. Shortlisted ones are i-Term, i-Protect and SBI Smart Shiled. I have checked the LIC policy and the SI would be around Rs.30 lakhs only for an annual premium of Rs.30,000. Will LIC be better than ICICI, Religare Aegon or SBI? I have no concerns about going with private insurers. I live in Bangalore. Regards, VJ

Posted on February 22nd, 2011

Manish Chauhan says:

Dev

Thanks for your comment , You can get your self insured upto 34 yrs from AVIVA or Metlife , thats fine .

Just make sure you trust the company you are going with and also you are right tht you will be able to stop the premiums whenever you want :)

Keep posting your experience :)

Manish

Posted on February 23rd, 2011

Manish Chauhan says:

VJ

You have taken the offline version of term plan from Kotak . Now you can go with an online version of term plan . So better go with ICICI Protect or Metlife . I would have suggested LIC , but its premium is very high and you are ready to go with pvt insurers anyways :)

Check if your total cover can be near 1 crore only , Is that enough for your dependents considering EVERYTHING

Manish

Posted on February 23rd, 2011

Hema says:

Hi Manish,
We finally bought kotak e-preffered term plan SA 50 lakhs for my husband age 34 non smoker, non drinker and general health good. It was very easy to buy we filled the application and made payment on 4th Feb, was called for medicals on 9th. 19th the insurance was issued and on 23rd feb recieved the insurance document. It was fast and easy.
We need to take one more term policy ..will keep checking to see what others experience is and then decide on one..
Regards,
Hema

Posted on February 23rd, 2011

Manish Chauhan says:

Hema

Nice , I think you can go for a small amount with LIC now or with ICICI . Do your research

Manish

Posted on February 23rd, 2011

vijay says:

Feeling bad after reading article. Purchased Aegon religare 50 lakh for 25yrs on recommendations from apna insurance. Medical checkup over, still to receive policy. i understand that claim ratio of aegon religare is very bad, what should i do?

Posted on February 25th, 2011

Manish Chauhan says:

Vijay

Dont get too disappointed , If the data you have given is all correct . You should not worry much

However incase you want to discontinue , you can surrender the policy as soon as you get it in your hands , make sure you do it within 15 days

manish

Posted on February 25th, 2011

harsh yadav says:

I think i would go with a mix of LIC and SBI life, trust of government support, and a decent record and premium of both the companies.
Your views Manish ??

Posted on February 26th, 2011

Manish Chauhan says:

Harsh

Note that only LIC and Reliance are pure Indian companies , Rest all the companies have some joint venture with foriegn partners , but i dont think it should be huge concerns .

Go for LIC + SBI , looks good

manish

Posted on February 26th, 2011

Sahil Bhatia (v-2sahb) says:

Hello Manish,

I am a regular visitor to your blog and find your articles very very informative.
Although I am working on your advice (from your blog) slowly and gradually, but I would like to tell you that you have totally convinced me about taking Term insurance and investing in MF through SIP’s. I would also like to thank the readers of this blog for their valuable comments.
Regarding the term insurance, I went through this article and I have contacted Kotak to get a term plan for Rs. 30 Lakh + Critical Illness Rider (5 Lakh) + Permanent Disability Rider (9 Lakh) coming out to be around Rs. 6100 for my age 24. But I am expecting the amt to go higher since High Blood Pressure + Heart disease + Diabetics, run in my family. I will definitely fill the form myself and give the correct information so the claim cannot be rejected.

Let’s see how this goes !

JagoInvester Admirer
Sahil Bhatia (v-2sahb)

Posted on February 27th, 2011

Amit Kumar Saini says:

Hi Manish,

Please let me know if come across this from ICICI. I tried to buy iProtect from the ICICI web site, My name is Amit Kumar Saini on all legal documents, while filling my details they have First Name and Last Name, so I can only enter Amit Saini. Please let me know if it be a problem in future, or it can be changed on the policy.

Thanks
Amit

Posted on February 27th, 2011

Sunil Date says:

@ Vijay. LIC has a 50+ years history. Compared to the policies sold the rejected claims will come down for the new entrants. Other companies are relatively new so the claims rejected ratio may look adverse. The rejected claims % will not increase in proportion to the increase in number of policies sold.

If i see only the absolute number of claims rejected, the no for LIC is huge. But in statistics many a times, one can twist the logic to suit ones expected answer. As Manish has mentioned, if one has provided all the data correctly and honestly to the insurance co, then there is no way a claim can be rejected.

Posted on February 28th, 2011

vijay says:

Thanks Manish for the quick reply

Posted on February 28th, 2011

vijay says:

Thanks Sunil for the reply

Posted on February 28th, 2011

Prasad says:

HI Manish,

Thanks for such a beautiful article. I have been “Sols” Jeevan Anand policy by an agent. After Paying one premuim (5000) I realised it’s not worth it hence and did not want to continue. When I approached LIC, they said I have to pay for 3 years to surrender. However, I decided to not pay any more premuim, taking 5K as sunk cost and let the policy lapse.

Now, I want to purchase a term plan. Given, the high claim ratio of LIC, I want to go for it. But do you think my earlier policy to be a deterrant in case of any claim settlement in future as a breach of trust etc.?

If yes, can you suggest me a pure term policy that can be good.

Regards,
Prasad

Posted on March 1st, 2011

Guru says:

Hi Manish ,

Could you please let know the details of ” a) SBI insurance agent b) Kotak insurance agent Contact details if you know some good agent in BANGALORE ?

Thanks
Guru

Posted on March 1st, 2011

ShanmugaNandan says:

Thanks Manish,
I would also like to discuss one important thing.
LIC officer told me the that premium for term policy has two components
1) estimate (what you see in premium calculator online)
2) loading (on the basis of medical tests).
Loading is categorized to type I, II, III, IV based on medical conditions. Type-I is least and Type-IV is highest.
Type-I is 55% of the estimate premium and I have been charged the least loading he says…

I am wondering if that is the actual way..its Cheating !!!
when you have no problem at all why should they add 55% extra premium as loading ??? why cant they say it in estimate only?

Is this how it works with other insurance agency only?

Posted on March 2nd, 2011

Sunil Date says:

@ShanmugaNandan You have admitted that you are overweight. What is your body mass index (BMI) ( Weight in Kg/Height in meter Squared) ? If it is > 30 then it is a case for concern. As Manish has suggested consult your co doctor on this issue.

Each Insurance company has its underwriting norms. They not only study your current health status / your working & personal life style / Family history etc (i.e diagnosis) but also do a prognosis. If in their opinion it is a sub standard case they load the premium ( i.e consider the proposer to be of a higher age) so that it is not unfair to the other standard policy holders. It is not necessary that each medical underwriter would arrive at the same conclusion ( prognosis based ).

You must have accepted the addl premium demand before the policy was issued. We cab fairly assume that it is not in all cases that addl demand is made.

Posted on March 2nd, 2011

Manish Chauhan says:

Shanmuganandan

The procedure looks right , its very right way . Imagine you are insurance providor , how will you decide the premium before hand ? Unless you do proper checkup , what if the person have heart blockages and he does not know him self , so after the medical exam only you have to see how severe the person is and how much loading can be applied,

In you case you are saying that you are healthy and nothing is there, then ask them what is the reason for loading?

Manish

Posted on March 2nd, 2011

vinod pal says:

Manish & all,

I need your openion!

I am having Amulya Jeeven of 25lac for 35 years and took it in 2008. I submitted wrong ducument (illegal) is that i am a graduate person, which i am not.
in future,
1. Will it be a rejected at time of death claim? or
2. Should i close this policy and take a new one from other providers?
3. Should i stick with the same?
3. i want to take more cover 50L, high premium not a problem i can pay it for my 100% trust on LIC. coz i want 100% safety for my family.

your comment and suggestion are greatly appriciated.

Thanks in advance

Posted on March 3rd, 2011

Manish Chauhan says:

Vinod

while there is no example i have seen that giving wrong educational qualification is an issue, the question is why did you did it in the first hand ?

This can become the basis of rejection as there is an element of breach of trust here .

Manish

Posted on March 4th, 2011

RAJIV SAXENA says:

hi manish,

i am abount to take a term plan from kotak. how should i disclose the following in proposal form.
1. details about mother. she died in 1984 suddendly while cooking. cause is death is unknown.
2. details about father. he died in 1989 due to ulcer disease.
if i mention “NATURAL DEATH” for parents, will it be sufficent? or it will be wrong information submitted in proposal form?

Posted on March 5th, 2011

Manish Chauhan says:

Rajiv Saxena

Is there any option given in the form or is it blank where you can fill in anything ? If its blank , then just fill in what happened . For mother , you can fiill in natural and for father ulcer disease .

Manish

Posted on March 5th, 2011

Rahul says:

Hello I am 28 yr old, Single, leaving with my parents.
Father will be retired in next 2-3 Years.
Parents having their own home in aurangabad and I am working in Pune and planning to take flat in next year with home Loan of 20-25Lac(at this time Home loan will get covered by another insurance?)
My annual income is 4.5L and I am going to marry next year.
Now Question is:
I would like to take Term Plan.
I search term plan in market and from your site I decided to take Kotak Preferred Term Plan for Premium of 30L for 30 yr with accident death benefit rider 7, 50,000 and Permanent disability 7, 50,000.
From my overall planning Can this Plan is ok? Or shall I need to take more cover?
Is LIC is better option than Kotak for me?

Please Guide..
Regards,
Rahul

Posted on March 8th, 2011

Manish Chauhan says:

Rahul

30 lacs looks ok for now , Considering your parents are partially dependent . Once you are married , you might want to reconsider additional term plan ., Incase you dont have any financial dependents right now , you can ignore insurance at the moment .

Manish

Posted on March 8th, 2011

dr kishan says:

dear manish
this was avery informative article to read modifying many peoples’ concepts.
in the above matter i wish to correct that the premium paid for insurance of spouse and children is also allowable under section 80c at present (although it may change with DTC).

keep enlightening.
tum andhere mein asha ki kiran ki tarah ho

dr kishan

Posted on March 9th, 2011

Krishanu De says:

Manish,

I have a typical scenario. I am willing to take up a term insurance with cover of 50 Lacs currently but I might have to move outside India in couple of years and eventually apply for citizenship there. Will I be still covered?

Regards,
Krishanu.

Posted on March 10th, 2011

Manish Chauhan says:

Krishanu

once your citizenship is with other country, it would become a little differnet , you can then inform the company . Anyways its a yearly contract , you will atleast be covered till you move to different country permanently !

manish

Posted on March 10th, 2011

Mani says:

Hi,

Thanks for an excellent article.
I have decided to take LIC’s Amulya Jeevan plan for 25L and just wondering will it make any difference in claim settlement between the policy taken in a metropolitan city or in a small town.
Please Advise
Thanks,
Mani

Posted on March 10th, 2011

Manish Chauhan says:

Mani

No , it will not make any difference

manish

Posted on March 10th, 2011

Manish Chauhan says:

Dr Kishan

Ahh thanks , I made that mistake it seems :)

Manish

Posted on March 10th, 2011

dr kishan says:

DEAR MR DHAWAL SHARMA / MANISH
i wanted to clarify some things.
1) whom should we make nominees in term plans? what is your suggestion? is it spouse or is it minor children with equal percentage share and spouse as appointee. will making the spouse as appointee lead to any problem during claim settlement if the children are still minor at the time of death of life assured, or will the money be handed over to the appointee easily.
2) imagine a case where the spouse is made the nominee and not the children. now the spouse dies first and then the life assured dies, then will the money be handed over to the children automatically, if the life assured person does not update the insurance company about nominee change.
3) can we change nominees after the policy is issued. if yes what is the procedure?
4) if the whole family dies in an accident then who gets the money? how does the company decide who gets the money?

you may feel that my questions are paranoid. sorry for that
but i wanted to clarify all scenarios possible which i could think of.
i have already taken two policies of 50 lacs each from LIC and AEGON religare, thanks to you manish. i am in the process of taking my third 50 lac policy which is from KOTAK (preferred term plan)

awaiting your answers

dr kishan

Posted on March 11th, 2011

vinod kumar says:

Thanks for your reply,

i given that because i thought my 12th.. will not be good enough for taking of sum assured 25 lac for Amulaya jeeven.

now should i stick with that or i take a new policy?

plz suggest wht should i do.

Posted on March 11th, 2011

Manish Chauhan says:

Vinod

I am not very sure on this now . You can ask your agent on how this will have impact .

Manish

Posted on March 11th, 2011

Ilesh says:

I have taken term plan from Birla Sun Life one year back of Rs. 50,00,000 for 30 year term. At that time I have not revealed that my father’s death was due to cancer. He died at the age of 60 years and 4 months. I have undergone ECG and Urine and Blood Examinations.
What is the consequence of hiding such information in future in case of my death?
Can you give advice regarding same

Posted on March 12th, 2011

Rahul says:

I (Male, 33 Years) am seeking quotes of 1,00,00,000 for 25 year term My mother died of cancer when she was in her late 60s. I have no medical problem. Every time I fill up the form I have been asking about anyone in immediate family member died of cancer before 60. What should I do? I should reveal the information? What will happen? and what will happen if i hide such information.
Thanking you

Posted on March 12th, 2011

Manish Chauhan says:

Ilesh

This one is answered in the previous article .

Posted on March 12th, 2011

Manish Chauhan says:

Rahul

If you dont disclose it , your claim can be rejected . If you tell this information , then a small loading can happen (increase in premium) , but that would be better for good

Manish

Posted on March 12th, 2011

raju says:

Hi Manish,

I am considering to take online term policy either from ICICI
Pru iProtect or Kotak e Preferred Term Plan.
Which is better Insurance house in terms of customer care and claims settlement ratio and any other factors?

Regards,
Raju

Posted on March 14th, 2011

sravi says:

hi Manish,
Great job done with this very useful blog . Keep it up:)
Please suggest me which is the best among the below term policies as my husband , age 28 is planning to take 50L coverage term insurance.
1) ICICI Pru iProtect for 25 yrs.
2) Kotak e prefeered term
From your blog i have seen that many customers faced issues with ICICI custome service. Please suggest me the good one.
Please note that my husband took one ULIP policy from Kotak 2 years back and it was terminated due to policy is not revived within revival period.
My question is :
1. Incase, he takes the term insurance from kotak , Will it be the problem at the time of claim settlement.
do you suggest us to go with Kotak term plan as other ulip policy is terminated by them.
Thanks in advance.
cheers,
sravi

Posted on March 16th, 2011

Rahul says:

I want to buy online metlife term insurance. They only give term insurance to person who retire by the age 60. I m state govt employee and for us retirement age is 62. Is there anything related to retirement age in metlife or any other company

Posted on March 16th, 2011

Guru says:

Dear Dhaval / Manish,

I have taken Kotak prefered term plan . Agent 1 ( manager is the designation in business card ) came to me and did all processing and i got my policy. While verifying the policy doc i am surprised to see that ” some other agaent name is mentioned in final policy document” .

When i asked Agent 1 why his name is not there in polic doc ? then he replied that the other agent is his team member and just to encourage the team members he has given his business part to his team member and i dont have worry about it. But i have not met this new agent.

Is it a problem tomorrow ?

In final policy document , last pages Kotak puts the xerox of applicaiton from filled in during submission. There i can see that ” Checked by “Agent 1 whom i met and did every thing for me and under Broker/agent coulmn i see this new person name”.

Please let me know if it is a problem or nothing to worry.

Thanks
Guru

Posted on March 16th, 2011

CA RAJIV SAXENA says:

MANISH, FATHER DIED IN 1989. AS PER DEATH CERTIFICATE, CAUSE OF DEATH IS “RESPIRATORY FAILURE”. SHOULD I MENTION IT IN PROPOSAL FORM FOR TERM INSURANCD. I WILL DEFINITELY MENTION IT IN PROPOSAL FORM, WHAT WILL BE THE CONSEQUENCES? WILL PREMIUM BE LOADED?

Posted on March 17th, 2011

Manish Chauhan says:

Rajiv

I dont think it should be an issue for premium loading . It depends on company . Also you will have to mention it if its asked in proposal form .

Manish

Posted on March 17th, 2011

Dhawal Sharma says:

@GURU – Great that you have finalized on TERM PLAN, the REAL INSURANCE..

Now let me tell you how the INSURANCE COMPANY in the AGENCY MODE works..(I am explaining this with authority because I myself had worked in two insurance companies before taking up the AGENT role full-time)..The SALES MANAGER of any INSURANCE COMPANY is not entitled to sell insurance because only an AUTHORIZED AGENT (The one who has qualified by passing the IRDA exam) can sell insurance products..In the AGENCY MODEL, a sales manager is required to build his team of AGENTs/ADVISORs and even if he himself picks the case, be it from friend-relative-client, that case has to be logged in through some agent code who can be a member of his AGENT/ADVISOR team..So if that SALES MANAGER says that he has picked the case from you and given it to somebody from his team, that is fine BUT..

..Yes, the problem part is that because this sales manager is on the pay-roll of the company and he is not an AGENT of that particular company, he will be shifting his job from KOTAK to ICICI or HDFC or SBI for sure within the next 6 to 7 months..For every service part related to your policy like change of address, change of nominee, or GOD forbids, at the time of claim, it will be only AGENT who will be standing by you and not the sales manager..

So first step on your end should be to meet this AGENT 2 immediately, check out his credentials (Is he a full-time or just part time, time passing guy, how many clients he is handling etc-etc)..On first meeting, you will come to know about the AGENTs sincerity/knowledge/commitment level..If this AGENT appears genuine and professional, then nothing to worry about in your case..

But if this AGENT2 is a part-timer guy, with knowledge limited to only commission part ;-) and on top of that, he is new to industry; then there should be some apprehensions on your part..(But no need to worry because even if the SALES MANAGER/AGENT are not serving you, you can directly approach the company’s branch and get all the things done, nothing to worry)..

But in any case, you should give a strong reply to that SALES MANAGER that this is as good as cheating or what we call DHOKA..

My humble advice to everybody on this blog is PLEASE CHECK THE PHOTOCOPY OF THE LICENSE OF THE AGENT WHO IS VISITING YOU, BE IT FROM LIC/KOTAK/ICICI/SBI or WHATEVER..Beacuse only AGENTs are authorised to sell insurance products and nobody else..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on March 17th, 2011

Dhawal Sharma says:

@SRAVI – Respected Maam, first thing i would like to add is which term plan is better depends upon an individual’s perception..There is no one single TERM PLAN which is THE BEST, suitable to everybody on every single criteria (Low Premium – High claim settlement ratio – trust – professionalis and customer care – after sales service etc)..If there would have been one single TERM PLAN which fulfills all the above criteria, then everybody would have purchased that plan and this discussion would not have been going on and on..So just check out on your own from KOTAK E-PREFFERED and ICICI IPROTECT whatever criteria are you looking for and whichever suits your needs best, just go for that..

Second Scenario which you have mentioned is that your husband’s ULIP policy has not been revived within the revival period..If someone dont pay his/her premium at due time, company consider those policies as LAPSED and give them 2 to 3 years to re-activate or REVIVE those policies by paying the outstanding amount with some charges..In your case, you did’nt revive your policy so its your mistake and not that KOTAK has terminated your policy..

by the way, there will be no effect on your purchase of new plan from kotak regarding lapsation of your last plan..If at all there would be any repercussion, it would be that KOTAK wont issue you new policy at all…So there would be no point of your claim being rejected in the future..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on March 17th, 2011

Vivek says:

Dear Manish,

While researching online about term ins., i stumbled upon your article and found almost everything i was looking for and many new info also.

thanks and many congratulations

as a query, even though many people in this blog are forming a positive opinion about kotak, i had zeroed in upon kotak insurance even before reading this article for my term plan, as i could set aside Rs. 7200 as annual term prem. in my budget, and i wanted a 25lac+ policy with 25+ year exposure + illness riders and kotak fit the bill out of lic, icici pru, sbi life, reliance, hdfc standard, and kotak, which i selected overall as first choice.

my concern is about loading charges. i am a 35 year, healthy, no prev. illness, nonsmoker guy, married and with 1 daughter. Will the actual premium be different than what is shown online. I am about to go for it. Any other important pointers?

feedback would be very much appreciated.

thanks in anticipation.

vivek

Posted on March 18th, 2011

Manish Chauhan says:

Vivek

Note that the actual premium will not be different than online shown if you are a healthy person , but if in medical you have any issue , then they can load the premium .

Manish

Posted on March 18th, 2011

sravi says:

Thanks Dhawal for the reply. I have a small question regarding claim settlement.
1. Suppose, husband is the policy holder and wife is the nominee for that, in case anything happens to both of them, is there any chance to get the claim settlement for the children.
If not, Do you suggest to select nominee as children or wife, which is good.

2. If Children is chosen as nominee as she is minor selected another appointee. Incase anything happens to appointee is children need to wait till they are 18 major to get claim settlement.

Thanks,
sravi

Posted on March 18th, 2011

Nitin Agarwal says:

Hi Manish,

My cousin (Age 40) is interested in Term Insurance of Rs 5 Crore. Online I found that premium (including taxes) of ICICI iProtect is Rs 1,11,955/- and Metlife MetProtect Rs 1,67,892/-. I know both policies are to be pruchased Online and there might be delay in receiving it. I’m asking him to go with ICICI iProtect as it is cheapest. If you can please advice whether it’s right decision or there is any better policy. Also his annual income (ITR filed) is around Rs 6 Lacs but he has assets worth Rs 1 Crore. So for income proof does Insurance company also consider assets?; if yes then what are the documents required for the same.

Posted on March 19th, 2011

Manish Chauhan says:

Nitin

I think there will be issue with him getting 5 crore of insurance , companies have some internal rule of limits . If your friend income is 6 lacs , the company might restrict the limit of insurance to 20 times or 25 times (depends on them) , So 1.0 crores or 1.5 crore looks a resonable insuance for him .

Manish

Posted on March 19th, 2011

Sunil Date says:

If he already has assets why does he require insurance ? Insurance is for protecting future income for dependents. He has to be using his knowledge and skills to earn an income which will be lost in an unfortunate event; that is the income which has to be covered. The one crore assets will still remain for his Dependants.

Posted on March 19th, 2011

Dhawal Sharma says:

@SRAVI – Respected Maam, first part of your question is from very unfortunate case where husband and wife (Policyholder and the nominee) both died in a same accident, claim can be made by their CHILDREN or children’s LEGEL REPRESENTATIVE by forwarding their case as legal hairs of the deceased..Yes, there is full chance of claim settlement in favor of the kids but it would not be as smooth and include many legal formalities as well as an honest relative/person who could look after the interests of the kids..But i still would suggest WIFE as nominee because even if child is the nominee, WIFE would automatically be in the picture as APPOINTEE..

2. Second part is not that difficult..If appointee is no more there, policyholder can assign somebody else as appointee of the kids and this appointee can be changed.Policyholder, in case of death of the appointee (Who may be his wife), can make children’s GRANDFATHER/GRANDMOTHER/CHACHA/MAMA as the new appointee of the kids in the policy..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on March 19th, 2011

Dhawal Sharma says:

Dear Manish,

Might be of some interest to everybody…

http://www.policywala.com/content.php/202-Insurance-company-can-t-deny-claim-if-the-insured-did-not-reveal-information-about-his-earlier-life-insurance-policy!

Posted on March 19th, 2011

Subhashish Das says:

Hi, Manish

Your articles are always an eye opener for me and written in such a way that even a layman can comprehend easily complex matters such as finance/insurance peretaining to his needs.

Today I came across an info regarding Aviva Life Shield Term Assurance where I questioned why compared to others the premium was a bit high. It was reasoned that if you survive expiry of the term the premiums paid for the whole tenure will be refunded (but without interest); so to factor this the consequent high premium (not sure how).
This I believe might be a ploy to play with the general psychology of getting back your investment in case nothing happens.

Best Regards
Subhashish

Posted on March 19th, 2011

Manish Chauhan says:

Subhashish

Yes , those are called “Return of premium term plans” where they take extra premium from you , invest it in some thing secure which can generate amount equal to your total premium and they pay you back that whole amount . Nothing special about it

Manish

Posted on March 19th, 2011

Nitin Agarwal says:

Sunil,

Your point is valid but he needs insurance of 5 Crore & he has assets only of 1 Crore…

Manish,
I’m surprised that assets are not considered by Insurance company while deciding Sum Assured :-(

Posted on March 21st, 2011

Manish Chauhan says:

Nitin

If you see any term plan online website , they only ask you about “Income level” , never they ask you about your assets .

Posted on March 21st, 2011

Dhawal Sharma says:

@MANISH/NITIN AGGARWAL – I can say with authority about KOTAK LIFE INSURANCE and not every insurance company but i hope this will hold true in most of the cases..

In KLI if someone is going for a big SUM ASSURED, The client is required to fill two seperate forms along with the proposal form..One is FINANCIAL QUESTIONNAIRE form and second one is MEDICAL ADDENDUM form..In FINANCIAL QUESTIONNAIRE form, client is requested to disclose his ASSETS and LIABILITIES to ascertain his NETWORTH..ASSET side asks for BANK BALANCE, FD/RDs, VEHICLE BY HIS NAME, PROPERTY BY HIS NAME, SHARES, MFs, INSURANCE, GOLD etc and LIABILIATY side asks for LOAN (PERSONAL, BUSINESS, PROPERTY), VEHICLE LOAN etc..So yes, valuation of ASSETS and LIABILITIES are also taken into consideration for deciding upon NETWORTH of an INDIVIDIUAL for HIGH SUM ASSURED TERM PLANs..

Please note, i am telling this for KLI and not sure about other insurance companies but i believe more or less, they too will be following this procedure..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on March 21st, 2011

vijay says:

Many Pvt Life insurers sell plans with high SA and with Minimum premiums rates which are always high and which is not affordable for most of the people( common man).Why they focus on High SA? they want more premiums collections and if they sell small SA plans like LIC the average premiums will be less.

Posted on March 22nd, 2011

ABHIJEET says:

DEAR MANISH/DHAVAL

Gr8 Job,Hell lot of information,
Now only thing I w’d like to know that,I heard that somewhere(from some agents) that the LIC either accepts & pays ur amout or rejects it straight a way.
But private insurers sometimes do some bargaining on case to case basis for payment.
HOW MUCH TRUTH IS THERE IN THIS?
& If that is the case this ratio stated above will be completely false,
can we have the claim settlement data in terms of amount(i.e. TOTAL AMOUNT CLAIMED vs. TOTAL AMOUNT DISBURSED) instead of no. of claims

Posted on March 22nd, 2011

kavita k says:

hi manish,

i have 1 query regarding term insurance. my husband is 49 years old and we have not taken a term insurance as nobody had suggested it earlier. but we have our LIC policies., so can he take a term insurance policy at this age because it will be till 60 years and the premium will be too high? pl suggest what to do as the agent is now telling us to take the same.

Posted on March 22nd, 2011

kavita k says:

hi Manish,

i have 1 query regarding Term Insurance. My husband is 49 years old and we do not have a term insurance, as no one suggested it before. Now the agent is pesterering us to take the term insurance. What do u suggest?

kavita

Posted on March 22nd, 2011

Manish Chauhan says:

Kavita

You can take the term insurance , but as you said the premium will be very high now . But still now its your choice to take the risk of now having the safety net or having it and paying the high premium

Manish

Posted on March 22nd, 2011

ABHIJEET says:

Dear Manish/Dhaval
Gr8 post & hell lot of information, Anyway I want to know that the claim settlement ratio specified in chart is on the basis of no. of claims.
But I came to know thro’ somebody (INSURANCE AGENT) that LIC is either accepting a claims & pays completely to the nominee of the insured person or rejecting completely. But the private insurers use to reject the claim & then negotiate & pay the amount which is much lesser than the sum assured (may be something like 10 lacs against 25 lacs sum assured)
SO I wanna know how much of truth in this?
Did u heard of such practices before?
& Is there any authorised information available anywhere which depicts the claim settlement in terms of amount(i.e. The total amount disbursed against the amount claimed for insurance)by all the insurance cos.(PSU’s & Private cos.)

Posted on March 22nd, 2011

Manish Chauhan says:

Abhijit

Where did you see that info that pvt insurance pays much lesser after negotiation , It might be a case with court and it might be something related to “settlement” . Can you give some source data

Manish

Posted on March 22nd, 2011

Manish Chauhan says:

Vijay

So you are concentrating on premiums or SA ? IF you need cover of 50 lacs , then what do you do ?

Manish

Posted on March 22nd, 2011

Manish Chauhan says:

Dhawal

Ok , I didnt knew this actually . But I think this will happen only incase of high sum assured .

Manish

Posted on March 22nd, 2011

Abhijeet says:

Dear Manish
I do not have any data regarding,But just a say by an agent,
That why asked u about the truth but as u r saying
“It might be a case with court and it might be something related to “settlement” One can say that it might be in apractice to some extent.
That is why I am interested to know that if anybody on this forum had the data for claim settlement in terms of amount payed against claim

Posted on March 23rd, 2011

Manish Chauhan says:

Abhijit

Ok , in that case the best idea would be to open up a disucussion thread at our forum because thats where everybody look at things , This place will now be seen by me and you only at the moment . Its an old article now .

http://www.jagoinvestor.com/forum/

Manish

Posted on March 23rd, 2011

ravi says:

I had a good time reading your article on Term insurance. Post analysis and reading this article I had zeroed in two plans Kotal eternal term plan and SBI smart sheld. My analysiss led me to the opinion that kotal eternal term plan for 25 yrs would suit me the best. This is because i am covered even after the premium payment period is over till i am 99 yrs old.

I also found SBI smart shield to be a promising plan but was not able to decide because i am not sure if the insurance cover is valid even after the premium payment period is over.

Considering my age of 31 i am planning for SA 1 crore term insurance.

So please advise which plan do i opt?

I also had a thought if i take 50 lacs in kotal eternal premium plan and 50 lacs in sbi smart sheild but will this be a good option. I am also considering to include riders for critical illness and accidental benefit.

Posted on March 23rd, 2011

Ravikrishna says:

Hi Manish,
Looking for your inputs/suggestion for my below comments. Please do guide.

I had a good time reading your article on Term insurance. Post analysis and reading this article I had zeroed in two plans Kotal eternal term plan and SBI smart sheld. My analysiss led me to the opinion that kotal eternal term plan for 25 yrs would suit me the best. This is because i am covered even after the premium payment period is over till i am 99 yrs old.

I also found SBI smart shield to be a promising plan but was not able to decide because i am not sure if the insurance cover is valid even after the premium payment period is over.

Considering my age of 31 i am planning for SA 1 crore term insurance.

So please advise which plan do i opt?

I also had a thought if i take 50 lacs in kotal eternal premium plan and 50 lacs in sbi smart sheild but will this be a good option. I am also considering to include riders for critical illness and accidental benefit.

Posted on March 25th, 2011

Manish Chauhan says:

Ravi

note that eternal is not a term plan , its a whole life plan . Stay away from it .

Posted on March 25th, 2011

Manish Chauhan says:

Rahul

There is nothing like that . Dont tell them that you would retire by 62 , tell then you are planning to change your job .

Manish

Posted on March 26th, 2011

Deepak says:

Hi,

I am looking for a Term Plan from Kotak. I have the following queries i.e
a) Can i add the different riders to Kotak Preferred Term Plan/Kotak ePreferred Term Plan much later after initially buying a policy. For ex I buy a Term plan without riders and five years down the line, i want to add riders to the same policy.

b) Incase it is possible to add the riders later on, who will bear the cost of the Medical Checkup.

c)What is the claim settlement ratio for Pure Term Plans for Kotak Life.

d) Till what age is the riders applicable. Is it till 65 only.

Regards
Deepak

Posted on March 27th, 2011

Manish Chauhan says:

Deepak

a) Its tough , I had a policy with SBI, but i was not able to add the riders later . So I assume it wont be possible with Kotak also .

c) This kind of seperate data is not published . You will be able to find only total claim ratio . I know this is weird !

d) depends from company to company .

Posted on March 27th, 2011

Deepak says:

Thanks for the quick response..You have provided excellent information for comparison of term plans..I am also looking for such kind of information for standalone critical illness plans..The info that i am looking for is
a)Incase i am not taking a term/life insurance plan and i need a critical illness policy ..is it better to take a standalone critical illness plan or a Health plan with critical illness rider?
b) Is it better to take a standalone critical illness plan from a Life Insurance Company or General Insurance company for ex HDFC Life vs HDFC Ergo..Inputs will be appreciated.

Posted on March 27th, 2011

Sandeep says:

Hello,

Requirement: Buy term plan for myself and wife. Both are 26 years old, non-smoker and wish to have sum assured of 50-60 lakhs. Please suggest a suitable plan
a) I will give more preference to claim settlement ratio if compared to cost
b) Prefer to have Accidental Rider as I stay in metro city
c) Prefer policy term for 30 years

I have checked term plan’s on net, gone throw you article cum read many comments and wana choose:
a) Male – ICICI i-Protect with Accident rider for 30 lakhs/30 yrs costing rs 5190 and LIC Amulya Jevan for 25 lakhs/30 yrs costing rs 6825. Total 12K per year.
b) Female – ICICI i-Protect with Accident rider for 30 lakhs/30 yrs costing rs 5250 and LIC Amulya Jevan for 25 lakhs/30 yrs costing rs 7150. Total 12K per year.

Please provide your valuable feebback.
Many thanks in advance for your time and sharing your knowlege.
Regards

Posted on March 27th, 2011

Manish Chauhan says:

Sandeep

Your plan looks good to me , You can also choose Kotak over ICICI incase you want . LIC would be a good choice , just that it does not have any riders !

Manish

Posted on March 28th, 2011

Manish Chauhan says:

Deepak

You can go for a stand alone Critical Illness policy , you can go with a general insurance company as of now

Manish

Posted on March 28th, 2011

Sandeep Kumar says:

Many thanks Manish for your reply.
Did you mean
Kotak e-Preferred plan ->  Male- 30 lakh/30 yrs – rs 4000 and Female- 30 lakh/30 yrs – rs 3404?
If yes, can you please advise why you have suggested same (Are you scaling on claim settlement? or any thing else?)?

I undertand,
-> Kotak don’t have any rider but have a good feature that will increase your insurance amount (As mentioned in your article)
-> ICICI i-protect without rider cost less (3600 as compared to kotak e-Preferred)!!

Posted on March 28th, 2011

Manish Chauhan says:

Sandeep

Some of the ocmpanies like ICICI , AR and kotak are offering thier plans online , Kotak has all 4 riders and people have experienced a little better service than ICICI

Kotak has all the iriders, its LIC which does not have it
Yes without riders it costs less

Posted on March 28th, 2011

Vijayakumar says:

Hi Everyone,

Thanks a lot for sharing all your valuable experience here. It helped to finalize a term insurance plan. I have take a policy from Kotak E-Preferred. One quick question about the medical test, did any one get a copy of the medical test results from the insurance company? if I ask, do they provide? My instinct says they should because after all it is my medical test result and nothing is going to stop the insurance company in sharing this. Please share your experience in this.

Thanks
Vijay

Posted on March 29th, 2011

Manish Chauhan says:

Vijay

Yes , you can get the medical reports once you get the policy documents in your hand . Ask company to give it to you

Manish

Posted on March 29th, 2011

Deepak says:

I have seen that some of the application forms ask for information of existing Term Plans/Mediclaim Plans..Is it necessary to disclose the same..Why is this information required by the insurance companies..

Regards
Deepak Behera

Posted on March 30th, 2011

Manish Chauhan says:

Deepak

Yes its important to know for companies that how much Life insurance you already have in total , so that you dont have much more than you deserve . You can take 10 crores insurance if you have 5 lac per annum salary , There has to be a limit .

Thats the reason companies want previous insurance policies info

Posted on March 30th, 2011

Deepak says:

All the pre existing diseases and family history need to be declared at the time of enrolling in a Term/Health Policy..Do we need to mention any disease/illness contracted after enrolling for a policy or any change in family history during subsequent renewals..Till now no company has asked me for information at the time of renewal..

Regards
Deepak Behera

Posted on March 30th, 2011

Manish Chauhan says:

Deepak

No , once you take the term insurance, then you dont need to do anything .

Manish

Posted on March 30th, 2011

Deepak says:

Is it applicable for Health Insurance Policy as well?

Posted on March 30th, 2011

Manish Chauhan says:

Deepak

Yes , same applies to Health Insurance as well , See 2nd point in http://www.jagoinvestor.com/2010/10/17-most-asked-questions-in-health-insurance.html

Manish

Posted on March 30th, 2011

Sachin says:

Hi Shashank,
I think you missed the bus completely.I have an answer to your say doubt why do even educated class is going for LIC and not pvt isurer.
Take this case -> Why does one buy insurance or for that Term Insurance?
In order to ease the financial burden when he/she (the insured) is not there.
Now just imagine,what is the state of the dependants if they have to run from pillar to post of pvt insurers to get the claim settled.
If the policy has been taken from LIC,there are 100s of agents around (friends,relatives,friend of relatives,relatives of friends…take ur pick) to help the dependant family members in getting the claim settled.
I had taken Term policy from Reliance Life.
When someone told me,just imagine what is ur mom or wife are going to do to settle the claim when you are not around?
I was shocked to imagine that.
Bottom line:Go with LIC not just for some fancy statistical thing (I know death claim ratio of LIC would be around the same as pvt insurers),but for the “ease” of procedure when you are not around.

SAchin

Posted on March 30th, 2011

Manish Chauhan says:

Deepak

You can get all your answers from this article : http://www.jagoinvestor.com/2010/10/17-most-asked-questions-in-health-insurance.html

Posted on March 31st, 2011

Manish Chauhan says:

I Would suggest Kotak

Posted on March 31st, 2011

Manish Chauhan says:

Kishan

You can make the nominee who you think will be there to recieve the money , Spouse would be better .

Manish

Posted on March 31st, 2011

Jayant Bhat says:

Any comments on latest scandal of LIC housing. Basically, any government backed institution cannot rule out corruption and scandals at peak.

LIC is purely trading with citizens sentiments stating it is Govt backed company. If it was worried about India and Indian Citizens, could it not get into the cheapest term plan business. Is it not governments responsibility to offer life cover at most affordable prices. LIC started playing with peoples sentiments, making huge profits by selling endowments and mostly endowments for over half a decade.

Hence it is not doing a favour by helping govt when in crisis. Its is our own money which they have looted for years. They have always thought about their profits.

If LIC has guts and public responsibility, then let it launch a campaign to offer the cheapest term plan in India.

Posted on March 31st, 2011

Manish Chauhan says:

Agree

Posted on March 31st, 2011

gaurav says:

“Is it not governments responsibility to offer life cover at most affordable prices.” – > No. It is not. Where does this say in the constitution? It is hard to fathom that a person interested in personal finance and investing would even make a comment like this.

Posted on March 31st, 2011

Deepak K Nayak says:

Dear Manish,

I am 36 years old (DOB 25/6/1975), married with 1 kid. Currently looking for a 1 Cr. term plan. I have gone through all the discussions that has so far happened against this particular post & I must acknowledge that it has helped me in my evaluation process immensely. However I also wanted to share with you some insights based on which I am planning to base my decision as they might not been explicitly discussed so far. Would appreciate yours and other fellow bloggers to comments / critiques / insights: –

1) Veering around to the view of going ahead with a private company as against LIC as its premiums are very high (42K vs. ~ 25K). More over i am not forceesing any harassment / delay from private insurers as my declarations will be factual.

2) Looking favourably at HDFC as the company is known to be conservative in its approach (an welcome trait for any company dealing with finance). It also happens to be my salary account and I am a preferred customer. So I have personal banker at my service. So I expect good service level from the personal banker (if not the insurance company)

3) I think HDFC has become too big a financial institution in India which can very easily be classified as “too big to fail”.

4) I am looking at a tenure of 25 years even though higher tenure policies are available, because I dont think there is any reason to take a term policy beyond your retirement age. You are not anyway earning actively and hence your demise will not negetively impact cashflow (your family will continue to get retirement benefits)

Do let me know what you all think of my musings :))

Deepak K Nayak

Posted on March 31st, 2011

Manish Chauhan says:

Deepak

1. Yes , you can go for private insurere, but make sure you trust them , in your case its HDFC

2. Agree

3. Yes , HDFC ,ICICI , Kotak , there are some companies which are big enough . but in worst , incase of some natural disaster , things can be on extreme end

4. This is straight common sense which you showed here, very rare :)

Manish

Posted on April 1st, 2011

Vijay says:

Hi,
I was going through Kotak Term policy Policy and found that if critical illness clause is exercised then SA gets reduced upto that level. So it means ,if i have policy of 30 lacs and i am claiming for 10 lacs(for critical illness) then from next year my policy will have SA of 20lacs. If it is the case then HDFC has good policy in which basic cover remains as it is. Please let me know if this is correct.

Posted on April 1st, 2011

Deepak K Nayak says:

Thank you Manish for taking time out and replying. WOuld appreciate comments from some other friends.

Thanks
Deepak K Nayak

Posted on April 1st, 2011

Manish Chauhan says:

Vijay

can you give me the links

Posted on April 1st, 2011

Vijay says:

Sure.. here are those
This is for rider of Kotak:

and For HDFC:
http://www.hdfclife.com/sites/HSFCSL/Resources/Products/Downloads/PL-ProtectionPlan.pdf

Posted on April 1st, 2011

Vijay says:

This one is for HDFC term plan:
http://www.hdfclife.com/sites/HSFCSL/Resources/Products/Downloads/HDSL%2000000000%20Term%20Assurance.pdf

Posted on April 1st, 2011

Deepak says:

Hi Manish,

I had an existing term policy with a private company. After coming across articles regarding rejection of claims due to incorrect/insufficient information, i decided to revisit my policy document. I was surprised to see that not all facts were mentioned in the document because the agent said that it is not necessary. Also the premiums for the existing plans were cheaper in the market. Then i decided that i would not renew my existing Term Plan and would go for a different plan. Your article did help me a lot and i finally decided upon Kotak Preferred term plan. Despite the agent telling me to ignore certain things, i was adamant and i made sure that i read the policy document well and filled in the application form to the best of my knowledge. This makes me believe that most of the agents are not honest with their clients. What will happen in cases where the agent has guided the client not to fill in all the information. Is there a legal recourse for such cases?

Regards
Deepak

Posted on April 1st, 2011

Manish Chauhan says:

Deepak

At the end of the day you signed those documents, It means you are responsible for what is filled in there. So I think the best thing you could do now is to let your insurance company know about what is missing, if it does not help , retake the insurance policy, but definately dont leave it idle , as it would mean you are risking with the claim at the end

Manish

Posted on April 4th, 2011

Manish Chauhan says:

Vijay

Hmm.. yea , I can see that part in Kotak . The SA will reduce by that amount

Manish

Posted on April 4th, 2011

Sandeep Kumar says:

Hi Manish,

Thanks for your comment and while I was to buy policy I got one more question/suggestion, which is related to term of plan:
As I am buying policy on line then I may go with “Met Life’s Met Protect” as it has 35 years of term (In your article’s on JAGOINVESTOR, you have not talked much about metlife. Any specific reason for it? How you rate this in term of claim settlement? FYI – If you wana buy metlife met protect then you can buy only online i.e. there is no customer support as compared to ICICI iprotect, Ageon e-term, Kotak e-prefred).
As my current age is 26 and if buying policy with 30 years term then I may go policy less at age of 55. In this case I may have 2 choices:
a) But new plan at 55 which will should be too costly at that time
b) Again buy new/fresh plan at age of 30-35

Can I request you again to share your knowledge?

Posted on April 5th, 2011

Manish Chauhan says:

Sandeep

Insurance till 55 should also be ok , it does not make a lot of difference , you need insurance especially in start of your life , not much at later point.

Posted on April 5th, 2011

Dhawal Sharma says:

Dear Sachin,

I can bet when you say “SOMEONE told you to imagine”, that someone is an LIC agent ;-)

How can you be so sure that while making claim to private company, you have to run from PILLAR to POST and in case of LIC, the claim amount will come to the house via speedpost?? It does not happen that way sir ji..There are certain formalities to be completed to get the claim amount, both at PVT COMPANIES as well as LIC..

Secondly, why do you think an agent will help you or your family members when you people have not taken policy from him?? If you have taken a TERM PLAN of LIC from agent X for 20 years and policyholder dies after 12 years, that means agent X has taken commission for those 12 years..So how/why would agent Y (as you put it Friends, Relatives, friends of friends, relative of relatives etc..)would help the greiving family members of a deceased policyholder when he has not had anything for 12 years and neither will he be getting anything by RUNNING FROM PILLAR TO POST to get your claim cheque??

Please understand, each and every insurance company is here to do business and make profits, and they can survive only through satisfied customers..So each company tries its best to keep its policyholders happy and satisfied by providing timely assistance and only in case of some genuine mistake/fraud do they stop the claim and that can happend with anybody, PVT COMPANY or LIC…

Dhawal Sharma
URJA WEALTH CREATORS

Posted on April 5th, 2011

Sandeep Kumar says:

Hi,

Also I rider amount in kotak are less as compared to HDFC, e.g.
Kotak ciritical illness (CI) benefit is max of 20 L (but 12 diseases) vs HDFC CI is equal to your sum assured
Kotak accidental death (AD) benefit is max of 10L vs HDFC AD is equal to your sum assured

Also HDFC has slight more claim settlement ratio (91 vs 87) as compared to Kotak :)

Source,
http://www.irda.gov.in > Annual Reports > Annual Report 2009 -10 Download > Check Page 105 – 106

Posted on April 6th, 2011

Jitendra Wagh says:

Hi Tarun,

In my opinion, you should go with two different insurers if you are getting yourself such a high cover, say 50-50Lacs each. This will take care of the risk factors involved.

Cheers
Jitendra

Posted on April 7th, 2011

Zubair says:

Hi manish/dhawal,
If a person go for the non-smoker premium. But at later stage of life becomes a smoker,
a)does he needs to inform insurance company at that time?
b)what happens to claim if doesnt inform ?

Thanks & Regards
Zubair

Posted on April 7th, 2011

Manish Chauhan says:

Zubair

No you dont have to update the company about it .

Manish

Posted on April 7th, 2011

Raj says:

Kudos…Manish…..Nice article..ended here upon searching on term insurance…
Was eye opener with your flow of information and language.
Well,,im 26,planning to take term insurance ..may be for 50L…My question is :

1.How does (any percentage)the premium vary incase taking term insurance along with riders?

2.Is it possible as the industry matures with new entrants and new products the premium level will down?

3.As mentinoed n blog replies,if Y person started X policy with higher premium few years back and if Z person gets same X policy at reduced premium due to exisiting scenario,what should the Y do ,should he quit the policy and switch over to new one or continue with same?

Posted on April 9th, 2011

Manish Chauhan says:

Raj

1. You will have to look at the online calculators for that .

2. Yes , the mortality rates can do down further , but not a lot , as majority of downfall has already happened

3. He should close the policy and see how much will be the new premium if he takes the same policy again , most of the time he is paying as per old mortality rates

Manish

Posted on April 9th, 2011

Sunil Date says:

I would like to correct the sequence of action, Manish. If one has a policy and wants to avail another replacement, for whatever reason, then it is always better to close the first policy AFTER the issue of the replacement policy. One should never forgo cover at any point of time i.e there should not be a gap between closure of first policy and issue of second policy. Ideal would be to apply for the second policy about one and half months before the first policy anniversary. and always declare that you already have a policy. You or the agent can mention in a separate report that the first policy is to be closed after the second policy is issued. This may be necessary fact for financial underwriting.

Posted on April 9th, 2011

Manish Chauhan says:

Sunil

Thanks for the correction , I know thats the right order , Didnt think to that level while making the comment above

Thanks for correcting

Manish

Posted on April 9th, 2011

Amol Deshmukh says:

Hi Manish,

I have found this article very very helpful for a person like who is new to this Term plan insurances. I have found a lot more discussion on “DEATH CLAIM SETTLEMENT RATIO”.

So I have searched on the IRDA website ) and found that there are annual reports published with all the details that are discussed here.

On this link “http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1″
there is list of all last 5-6 years reports.

In report “Annual report 2009-10″, I have found the “Individual Death Claims” on page no. 18 in TABLE 12, also the point I.3.21 for Individual Death Claims would be helpful for others.

Regards,
Amol Deshmukh

Posted on April 13th, 2011

Manish Chauhan says:

Amol

The data used in this article comes from those annual reports only :)

Posted on April 13th, 2011

Amol Deshmukh says:

Manish,

I wanted to say that as “Dhawal Sharma” said there is no DEATH CLAIM SETTLEMENT RATIO mentioned in IRDA report.
Which is incorrect, as it is mentioned in very much details in table “INDIVIDUAL DEATH CLAIMS” on page 105 & 106 in that report.

Correct me if I am wrong.

-Amol

Posted on April 13th, 2011

Manish Chauhan says:

Amol

You are correct, Dhawal was wrong and he accepted that he was wrong in the comment section

Posted on April 13th, 2011

J S Dutta says:

Dear Manish,
I have one 11 lakh TATA AIG Raksha term plan. I want to close it and want to take metlife online plan with 25 lakh for 30 years. I am 30 yr old.
I want to take another plan for 10 lakh from FUTURE generali. but i want to take this plan with riders.
pse suggest me that riders is necessary or not like adb and ci.

Posted on April 23rd, 2011

Manish Chauhan says:

JS Dutta

There is nothing manadatory to take the riders , it depends on your personal preference if you want those riders or not .

Posted on April 23rd, 2011

narendra says:

Hi,

I am 35 years old have taken 2 years back a BSLI Term Plan for 2 cr, tenure is 25 years. The premium for the same is about 55k, which going through your table, I think is fairly on the higher side. What do you suggest? Shud I stop this and take a new policy, maybe Kotak Preferred? If I take a new one, will I have to go through the medical tests and all one again or they will be carried over from the previous plan.

Posted on April 23rd, 2011

Manish Chauhan says:

Narendra

What is your age ? In last 2 yrs the mortality rates have come down , so the premiums should be cheaper now . So it would be better to re-take the policy

Manish

Posted on April 23rd, 2011

Akshay Telang says:

completely agree !

cant find a better example of “mass public looter” in india than LIC..
its agents are very well trained to sell “absolutely useless” and “difficult-to-sell among-the-knowledgeable” low-returns policies to ignorant (mainly) rural folks by playing with their sentiments and hiding the crucial benefits of other useful policies…
no wonder they are sitting on huge cash reserves as many people (especially rural) fail to continue premium payments and avail maturity / death benefits.. i hav myself seen thousands of such examples !!
i dont knw much abt businesses of pvt insurance companies… but LIC no doubt a big public looter !!

Akshay Telang

Posted on April 24th, 2011

Sandeep says:

Hi Manish

I want to share my BAD EXPERIENCE WITH KOTAK, which I got while I was trying to get information about kotak e-preferred plan.

For kotak e-preferred plan – step-up option, I had following queires:
a) On 1st, 3rd, 5th policy anniversary, how premium will be calculated i.e. will factors like smoking, health condition, re-medical check-ups, economy inflation etc be considered? Or only 3% of basic premium be increased on 1st, 3rd ,5th year and birth of child?
b) Is there any expiry of step-up option. By expiry means that will after 45 yrs of age will sum assured will be increased premium due to step-up option or original premium of 25 lakhs?

Same information I had contacted with kotak customer care via mail and phone, but did not get replied since 2 weeks. Most horrible experience was with customer contact number 1800-209-8800, where I had waited for almost 1.30 hrs, but even after that also I was not connected to customer care!!

If this is before product sale condition, then what should be after product sale?

Posted on May 1st, 2011

Manish Chauhan says:

Sandeep

Bad to know that kind of bad experience , I can understand how it feels on the phone waiting for cc to talk to you . I would suggest talk to some kotak agent offline whom you know .

Manish

Posted on May 2nd, 2011

Thinking says:

Hi Manish,

First of all fantastic article and even better is that you take the time to answer everyone’s questions :)
I am a 30 yr old female, married with no kids. We are not interested to have kids in the future as well. Both me and my husband are salaried individuals. My husband and my parents are well settled and have a regular income and do not depend on us for their living expenses.
a. Do me and my husband need to take life insurance?
I am considering a 1 crore Term insurance policy, so is my husband. (According to our income the online calculator suggests we take 3 crore).
b. I already have a term policy with Metlife of 20 lacs for the last 5 yrs. Should I discontinue that when I take the new policy?

Please help throw some light on the same. Thanks for your time.

Posted on May 2nd, 2011

Manish Chauhan says:

Swapna

If you both are well settled and in a good job . I dont think you are financially dependend . You have to ask yourself, how absence of one going to affect another financially ? If one is going to be affected , then one has to take life insurance else not !

Manish

Posted on May 2nd, 2011

Ritesh says:

Hey Manish,

I am looking for a term plan and my first preference would be LIC Term Insurance (Jeevan Amulya) however; no rider attached with the LIC.

Looking forward for your suggestion.

Posted on May 6th, 2011

JKMishra says:

S Pani
Online policies are available on internet. In Rourkela, we have cybercafes/Internet parlours…. you can visit there, go to the respective companies website & buy on their websites itself.
i hope this satisfies your query.

Posted on May 22nd, 2011

Vidyadhar says:

Hi All,

I gone throw all your discussion and truly it was really well compiled.

I want Term Insurance Policy for my Dad (Age 63). Can any one suggest me is this possible to take Term insurance for this age? He is medically fit.
Please let me know any good plan for this above criteria (LIC or Private)?

Also, please let me know any good Term Insurance plan for me, my age is 28. Thanks in advance!

Posted on May 23rd, 2011

Vidyadhar says:

Hi All,

I gone throw all your discussion and truly it was really well compiled.

I want Term Insurance Policy for my Dad (Age 63). Can anyone suggest me is this possible to take Term insurance for this age? He is medically fit.
Please let me know any good plan for this above criteria (LIC or Private)?

Also, please let me know any good Term Insurance plan for me, my age is 28. Thanks in advance!

Posted on May 23rd, 2011

Vidyadhar says:

Hi All,

I gone throw all your discussion and truly it was really well compiled.

I want Term Insurance Policy for my Dad (Age 63). Can anyone suggest me is this possible to take Term insurance for this age? He is medically fit.
Please let me know any good plan for this above criteria (LIC or Private)?

Also, please let me know any good Term Insurance plan for me, my age is 28.
I want cover of 50 lac and Medical upto 10 Lac.
Thanks in advance!

Posted on May 23rd, 2011

Vid says:

Hi All,

I gone throw all your discussion and truly it was really well compiled.

I want Term Insurance Policy for my Dad (Age 63). Can anyone suggest me is this possible to take Term insurance for this age? He is medically fit. I just want Critical illness claim up to 10 lac for him.
Please let me know any good plan for this above criteria (LIC or Private)?

Also, please let me know any good Term Insurance plan for me, my age is 28. Plan should be like nominee should get amount up to 50 lac and illness cover up to 10 lac.
Thanks in advance!

Posted on May 23rd, 2011

Rishi says:

I am in merchant navy, age 35 yrs. i am still struggling to get correct answers from all the insurance companies.
1. I stay out of India for 6 months to maintain the NRI status.
2. If I buy insurance, then will it cover all my sailing period as well?
3. We undergo medical checkups every 6 months before joining the ship, therfore medical checkup is not a problem at all.
Could you please suggest the best insurance company to buy 1 Cr insurance from?

Posted on May 24th, 2011

Ravi says:

Hi Manish,

Its very good article and helps us a lot to understand about the term insurance.
The best is that you take the time to answer everyone’s questions.Thanks.

I have few questions while going for term insurance.

I am a 29 yr old. married and have one kid (2Years). Both me and my wife are salaried individuals. We are having home loan and one of ours take home is going for that loan.
Me and My wife have LIC Jeevan Tarang policy for 5lacks each for 20 Years.
We have taken HDFC youngstar for our kid.

Please let me know whether me and my wife need to take term insurance?
So if,
how much do we need to take?
is it good to take from same insurer or diff companies?

Please help me on these. Thanks for your time.

Ravi.

Posted on May 25th, 2011

zubair says:

Hi manish, Aviva has introduce on line product i life whose premiums are very low, maybe lowest in this category. But is AVIVA a trusted name? I mean looking at current company profile can we say its a “Lambi race ka ghoda”.
Or there are question marks on its future?
Your comments are really important for me to choose between ICICI and AVIVA.
Thanks
Zubair

Posted on May 30th, 2011

DMan says:

Hi Manish,

This article is quite informative and saves the run around of individually checking for each insurance company, if you are looking for comparisons in a nutshell. Good job.
I just want to make one point here. Some posters, including you, have commented that LIC has a high premium compared to other companies. Agreed, indeed it does. But if you compare the maximum term that most insurance companies offer(between 5-30 years) and that of LIC(35 years) and the maximum age upto which you can be insured(upto 70 for most companies including LIC) I think the higher premium is justified to some extent due to the combination of the term and maximum age, which is among the best available.
Agreed that some people may think a maximum age of 65 vs 70 may not be a big deal, but I think the chances of one’s demise may be higher during those 5 years as compared to the other years that the policy might cover(I am talking about death due to natural causes here).
I am still in the dilemma of whether I should split my term insurance between LIC and a private company, or stick with only LIC. I will make my decision in a few days.
Your comments are welcome.

Thanks.

Posted on May 31st, 2011

deepak says:

whats ur opinion on 35 yr period aviva term plan supposed to be the cheapest?

Posted on May 31st, 2011

Shyam says:

Hi Manish

I am of 29 years old working in BPO company and it has been one year when i purchased LIC term insurance plan for 50 Lakh and half yearly premium is Rs 8772. Earlier i was not aware of the claim settlement ratios of ICICI and Kotak but now they are seemed me more reasonable than LIC. Please suggest was my decision to buy LIC term plan right? Should i continue this plan or changed to some other plan as it has been only one and half month? Please suggest

Thanks & Regards
Shyam

Posted on June 2nd, 2011

Asthi says:

Dear Manish,
I read the artical and found out it to be very good and useful.
But still i have a doubt:
If the insurance company ask for a medical test and i go for it, will the insurance company can provide me a copy of the medical test to me?
Because even i want to be sure of what the medical report is all about.
If suppose they hide some XYZ disease and that becomes the cause of death and they refuse to pay the sum assured.

Posted on June 4th, 2011

Manish Chauhan says:

Deepak

Yea , it seems to be one of the cheapest one , try it out from internet explorer

Manish

Posted on June 6th, 2011

Manish Chauhan says:

Asthi

Yes you can get the copy of medical test if you go for the policy , just ask for it from the customer care or your agent (incase of offline agents)

Manish

Posted on June 6th, 2011

Dhawal Sharma says:

Dear MANISH,

A very interesting development has taken place which i want to raise up in this forum as it would help to clear many doubts about the PRIVATE SECTOR INSURANCE COMPANIES..

IRDA says that ONCE ANY COMPANY HAS STARTED ITS OPERATIONS IN INSURANCE, IT CAN NOT CLOSE DOWN THE BUSINESS..ALL IT CAN DO IS AQUIRE OR MERGE WITH SOME OTHER COMPANY..

As in the latest development, RIL (Headed by Mr Mukesh Ambani) has buy out BHARTI AXA..
http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/ril-buys-out-bharti-from-insurance-jvs-with-axa/articleshow/8809612.cms

So now what will happend to policy holders of BHARTI AXA LIFE INSURANCE?? Simple, they will become policyholders of the new RIL INSURANCE COMPANY or whatever the name of this new joint venture..As also happend a few years back, APOLLO DKV becomes APOLLO MUNICH as JOINT VENTURE partner of APOLLO changed from DKV insurance to MUNICH insurance..

This is a big point i want to bring to everybody’s notice on our blog that they should buy insurance policy from any PRIVATE COMPANY if they like the TERMs and CONDITIONs, PREMIUM is pocket friendly, and they TRUST the ADVISOR of that company..This apprehension should never cross their mind as to what will happen if this PRIVATE COMPANY (ICICI PRUDENTIAL/HDFC STANDARD LIFE/KOTAK OLD MUTUAL or any company) will close down in the near future or distant future?? ANY OF THESE COMPANIES CANNOT CLOSE DOWN THERE INSURANCE BUSINESS..At most will be that their policies will be shifted to the new company..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on June 12th, 2011

vishal says:

Hi Manish,

Could I request you to write a review about Avicva iLife Term plan please.

1)It is the cheapest plan currently available only online, however, some people suggest that because its launced only 3-4 months ago there is no claim history and should be avoided. But the cheapest premium is tempting, For a person ager 31years, 50 L coverage costs Rs.4769
2)It does not have any rider, will it work out cheaper to cgo for this policy and then go with a seperate policy for Accident+Disability+etc with other general insurance company OR to go with Kotak Proferred or ICICI iProtect?

Posted on June 12th, 2011

Manish Chauhan says:

Vishal

You should go with comments section first to learn more about the subject, a review on just one product is not recommended nor feasible ,all the products are similar these days . I would say go for Aviva or Kotak or ICICI , but make sure you are putting right info in the form .

Manish

Posted on June 12th, 2011

Manish Chauhan says:

Dhawal

Thats a nice update :) , I will surely do a post on this .

Manish

Posted on June 12th, 2011

vishal says:

Hi Zubair,
Did you buy Aviva iLife term plan, can you share your experience?

Posted on June 13th, 2011

zubair says:

Hi vishal, I am in the final stage of buying the plan,Initialy there were some hiccups while filling the form as it was not going forward but the customer care were constantly in touch to resolve the issue.
So overall it was a good experience.

Regards
Zubair

Posted on June 13th, 2011

shashank kashettiwar says:

Manish,
This ‘interesting development’ is not something new at all! This has been always there in the IRDA regulations! I’m in insurance field for last 8 yrs and know about this regulation of IRDA from initial days of agency & have been using this knowledge to do the objection handling of clients regarding continued existence of private players in the very long run.
I usually add one more scenario to such point if raised by the prospective client. What could be the worst case possibility- that again the govt is natinalising the insurance sector. So all these companies would be merged in LIC. But even in that case the plans will continue to run and all the promises given by the previous company would still be honoured by LIC. (There were some 250 companies/entities merged in LIC when in 1954 the sector was nationalised, and all the plans, promises were honoured by LIC. Amazing feat indeedI We should be really proud of the people who were at the helm of affairs then for bringing into existance such a complex merger).
Now if this is the possible worst case scenario; which is quite happily acceptable to one and all policy holders, why worry that you are insuring with private players as the government can always step in as they did in 1954; when there was not even a regulator to approve the products and vet the policies and procedures of insurance players so closely, as it is being done today!
The bottom line is- whatever lacunaes an ordinary person can think of or imagine in the running and existance of the private insurers has already been thought of and a remedy provided for by the regulator – IRDA-which came into existence before the sector was thrown open to private enterprise!
shashank kashettiwar

Posted on June 13th, 2011

Manish Chauhan says:

Shashank

But a investor is not worried about the case when he is alive . If he dies , he “assumes” that its much tougher to claim it from pvt insurer and thats the main reason he is hesitent with insuring himself with Pvt companies .

Thanks for letting me know that its a old rule and not a new one .

Manish

Posted on June 13th, 2011

Dhawal Sharma says:

the INTERESTING DEVELOPMENT which i was referring to was RIL taking over BHARTI AXA ;-)

This TERM is quite old and me too use this law to convince my PROSPECTs/CLIENTs to not to worry about the SECURITY of the PRIVATE COMPANIES..

..And great to see someone from the same breed on JAGOINVESTOR, that too 8 years old..

Posted on June 13th, 2011

Rahul p says:

Manish,
Do SBI smart shield is backed by SBI or it is a separate org?just like LIC is backed by government,i am asking abt stake?or sbi smart shield is just like any other pvt company,plz give your opinion abt sbi smart shield.

Posted on June 19th, 2011

Manish Chauhan says:

Rahul

SBI Smart shield is offered by SBI Life Insurance company which is a joint venture between State Bank of India and BNP Paribas Assurance of France. Note that its a PVT company and not a govt company , SBI just has some stake in it .

But you should not worry on that , go ahead with the policy .

Manish

Posted on June 21st, 2011

Rocky says:

Hi Manish,

First of all, Thanks for loads of information sharing on this thread.
Its quite informative and helpful especially for people new to Term plans like me.
I am 30 yrs now and planning to buy a term plan/plans ( with SA worth 1 cr ).
I researched on a few websites and a bit confused.
Before reading this article, i was planning to go with a single service provided but i guess its recommened to go with 2 (50:50). Am i correct?
I found Aviva iTerm plan quite tempting due to low premium.
Can you suggest some options for me?

Thanks and Regards,
Rocky

Posted on June 21st, 2011

Manish Chauhan says:

Rocky

Yes , Aviva is good option , also consider Kotak , ICICI

Manish

Posted on June 22nd, 2011

Rahul P says:

@manish:thanks,for advice on SBI smart shield,recently i have heard one case in which settlement of a term plan of a person was rejected bcoz he was having insurance of other companies also and in this case court also given verdict in favor of insurance co,this is just a small abstract of the story,my question is DO THIS CAN HAPPEN TO ANYONE? and if yes then what precautions one should take before buying term insurance.

Posted on June 22nd, 2011

Rocky says:

Hi Manish,

One query.
If someone has 2 term plans from 2 different companies then in case of ones death both can be claimed, right?
I came across comments from someone saying that 2nd comapany refused the claim on the grounds that they have also insured with other firm also.

Thanks and Regards,
Rocky

Posted on June 23rd, 2011

Manish Chauhan says:

Rocky ..

No thats not true . You can claim from other companies also .

Manish

Posted on June 23rd, 2011

Manish Chauhan says:

Rahul

No , the case which you are mentioniong ,it might happen that the person didnt reveal this fact and hence his claim was rejected .

Manish

Posted on June 23rd, 2011

Jawaid says:

Dear Mr Dhawal Sharma,
In LIC proposer has to mention his income and SA limit is as under
upto 30 years of age maximum SA is 22 times of the average annual income
31 to 40 years of age 17 times of the average annual incone
41 to 50 years of age 12 times of the average annual income
51 and above 10 times of the average annual income

One Important thing is SA of LIC Term Plan has Sovereign Guaranty ( if LIC couldnt pay due to insolvancy SA will be paid from Sarkai Khazana)

Posted on June 29th, 2011

Sumeet K says:

Hello Manish,
There are cases where people have different birth dates than actual in certificates, passports etc. Parents use to do that to make kids join school earlier. So in that case I believe only proof of date that one has is the one on certificates, but that will be different than biological age.
I need to understand does it affect claims process at later stage. pls advice

Posted on June 30th, 2011

Manish Chauhan says:

Sumeet

I think the birth dates on official documents will be take as the source of proof

Manish

Posted on June 30th, 2011

Sandy says:

Term insurance is long term, 20-30 yrs. Insurance sector was opened up in 2001 when most private companies got their licenses. So the max policy term holder in private companies would 10 yrs while avg holder might be around 5-7 yrs.

The rejection ratio is higher in case the policy is recent. The portfolio of LIC is much more balanced and hence its rejection ratio looks better.

Posted on June 30th, 2011

Manish Chauhan says:

Sandy

True , and thats the major reason why pvt insurers rejection ratio is on high side .

Manish

Posted on June 30th, 2011

vishal says:

Hi Manish,
This is an excellent platform, however, not so easy to read on.
If possible could something be done so that the latest post comes at the bottom.
Means earliest to recent ones.

Vishal

Posted on July 1st, 2011

Manish Chauhan says:

Vishal

Go to archives section : http://www.jagoinvestor.com/archives , it has all the articles till date , read from bottom to up

Manish

Posted on July 1st, 2011

mukesh says:

http://www.moneylife.in/article/online-term-plans/17600.html

Posted on July 3rd, 2011

Ashok says:

Hi Manish,

Many thanks for providing that level of details.

I am looking for term plan of 50K + riders, but getting confused in that many planyer in pvt. sector. I also want to go through agent as I don’t want any trouble for my family in future.
Could you please help me, which one is better if I make sure everything is entered in Customer form properly or Do i need to go only through LIC.
if you don’t mind can you tell me if you need to buy any term plan what would be your preference.
Regards,
Ashok

Posted on July 4th, 2011

Ashok says:

Hi Manish,

I think its possible they will not help with claimed amount, if you have not informed to them on the time of taking the policie, you are already holding any term plan.

Regards,
Ashok

Posted on July 4th, 2011

Manish Chauhan says:

Ashok

Yes, if you dont disclose the facts completely , then its right that they dont honour your claim

Manish

Posted on July 4th, 2011

Manish Chauhan says:

Ashok

You should be filling the form yourself , not expect some one else to fill “properly” for you . You can go with LIC + a pvt insurer

Manish

Posted on July 4th, 2011

MPG NAMBIAR says:

MAD – PLATINUM PROTECT – PERSONAL ACCIDENT BENEFIT RIDER (PAB) IS AVAILABLE. THIS IS MAX UPTO RS. 40 LACS EVEN IF SUM ASSURED IS ABOVE IT. AND WHEN IT IS BELOW PAB WILL ALSO BE LOW. THEY ARE ALSO COVERING 10 MAJOR DREADED DIESES AS RIDER FOR PLATINUM PROTECT.
THANKS
NAMBIAR

Posted on July 8th, 2011

MPG NAMBIAR says:

asset and insurance are two different things. so argument that if asset is there why insurance required is incorrect. eligibility of higher sum assured (inclouding the need) should be checked. AML guidelines will come into picture.

thanks
nambiar

Posted on July 8th, 2011

Bhavesh says:

Dear sir,
Any one give me to advise for term insurance
i am 37 year old. as per web site of diffrant co’ my premium for 25 lacs for 28 yaer is HDFC life is Rs 11830 & Kotak prefered Rs 7664 & kotak term is rs 9270. which plany i have to take,i am a not a tobacco user. Pl. advise me.

Posted on July 8th, 2011

Manish Chauhan says:

Bhavesh

You can go with Kotak , I would suggest take a high worth plan like 50 lacs cover ,the premium would be almost same .

Manish

Posted on July 9th, 2011

Dan says:

Dear Manish,
All comments and information here are excellent.

I would like to clarify the follwoing:
1) I am an NRI, what sort of income proof will be required for term insurance?
2) If I have a doubt in filling the application form, how can I clarify the same? (the agent may be pushing us to fill the form for his benift)
3) I I take 2 or 3 term insurances at the same time, how can I disclose the details one another in the application form?
4) do we have to update our health status once the policy has commenced?
5) will they increase the premium once the policy has commenced and later the insured has been diagonised with some illness?? (which did not prevail at the time of application).

Thanks,
Dan

Posted on July 11th, 2011

Dan says:

I think since LIC is not considering the health status of the applicant, one should easily get insured with LIC irrespective of the health status…i mean medical report..or does LIC reject proposal based on medical reports?

Thanks,
Dan

Posted on July 11th, 2011

Manish Chauhan says:

Dan

Why do you think it does not look at health ?

Manish

Posted on July 11th, 2011

Manish Chauhan says:

Dan

1. You need to provide income proof in India and residentail proof . this depends from company to company .

2. Dont let your agent fill it at all . fill it yourself , no matter what

3. You only have to declare about the policies which are “in force” . If you take 2-3 parallal policy , then you only need to tell them if there is any coloumn for that \

4. No

5. No

Posted on July 11th, 2011

Vijay says:

Hi Manish ,

Nice post by you its really informational and helpful in picking the right policy.

I am 26 yrs old and i have taken LIC Term policy last year for myself and i feel it the safe even if i endup paying more bugs….

After reading all kinds of scenarios i got a different scenario for you…

Suppose if a person takes an term policy and after an year if he is diagnoised with Cancer then what would happen in his case..

Posted on July 13th, 2011

Dan says:

@Manish, LIC premiums I thought was high due to the fact that they do not differentiate between healthy individuals and unhealthly one…and hence they charge more for all or lets say higher premium for all. Pvt companies have good rates for healthy nonsmokers..!

Posted on July 14th, 2011

Manish Chauhan says:

Dan

There is nothing like that . If the amount of insurance taken is high with any policy , the medical is done . The main reaason for those policy charging high is that they will give back the money on maturity .

Manish

Posted on July 14th, 2011

Manish Chauhan says:

Vijay

Nothing , you dont get unless you die .. you live with it . whenever you die ,you will get the money . But Its very rare that within the 1 yr itself someone gets cancer , it would have got detected in medicals with all probability .

Manish

Posted on July 14th, 2011

Ganesh says:

Hi Manish,

I wish to goin for Aviva i-life term policy for 1.25 crores, due to “low” premium. I will endeavour to give full true facts to them so that they can’t have any rejection of claim howsoever deeply they investigate.

but it does not provide any of the 4 riders.

can you suggest the best low term policy for 1.25 crores for 34 yr old male (married/non-smoker) with good riders.

can these riders be availed with health insurance – in that case i need not worry about these riders.

(i plan to get both term or health insurance soon)

pls suggest on this blog so that others also can benefit with your reply.

rgds,
ganesh

Posted on July 15th, 2011

Asthi says:

Dear Manish,
I have a doubt realted with one of the condition mentioned in kotak document.
Kotak e-Term/e-Preferred Term: Terms and Conditions
1. Death Benefit:
The death benefit payable would be Sum Assured less the balance of the premium (if any) payable in the year of death.
I am not very sure about this condition, Does it means that if i have a term insurance for a term of 25 years with a permium of say 4000 and i die on the 20th year so they will deduct the total amount payable = sum assured – (6 * 4000). Where 6 is the number of remaining years of premium payment.

Posted on July 15th, 2011

Swapnil says:

Hello,
I am 29 years old and I want to buy a Term Insurance for 30-40L. While going through few sites just for comparison I looked on PolicyBazzar for the comparison. I got a call from PolicyBazzar Customer Service Executive. He suggested me to go for Online Term Insurance as those are little bit cheaper compared to other offline plans (imp: policy premium is not a main criteria for me) as there will be no brokerage for any agent. In Online policies also he suggested me to go for Aegon Religare i-term plan which is a online term plan which has a main point that “Covers all forms of death, even terrorist attacks.” this line is written on the company website
“http://buyonline.aegonreligare.com/iTerm-plan.asp.”
Currently I am little bit confused should I go for Online or Offline Term plan. And also of which company plan should I take.
I also discussed about this with Bajaj Capital Executive. As per him I should go for Offline Term plan.
Please suggest me as early as possible.
Can you please suggest me should I go for Online Term plan or Offline Term plan and of which company. As there is no premium amount criteria.

Posted on July 15th, 2011

Dan says:

Manish, does that mean that other companies charging low rates will not pay you back on maturity?? I have also seen that Insurance is not questionable after completion of two years!whats your go?

Posted on July 17th, 2011

Manish Chauhan says:

Term insurance does not pay you anything back on maturity , because its only charging for your safety .

the point of “Insurance is not questionable after completion of two years” is highly misunderstood . That clause is only for small points which can not form a basis for refusal of claim , but material facts like health related information does not come under that 2 yr clause .

Manish

Posted on July 18th, 2011

Manish Chauhan says:

Ganesh

You can look at this article for rider information : http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

Manish

Posted on July 18th, 2011

Manish Chauhan says:

Asthi

Yes .. thats true ..

Manish

Posted on July 18th, 2011

Manish Chauhan says:

Swapnil

In that case you go with LIC term plan which is a offine term plan , seems like for you the main criteria is the brand and trust

Manish

Posted on July 18th, 2011

Swapnil says:

Hi Manish,
Thanks for the reply. Can you please tell me which is the best online term plan currently and having good feedback.

Posted on July 18th, 2011

Manish Chauhan says:

Swapnil

There is nothing like hte “best policy: , there are people having bad and good experience with each company . But you can consider Kotak, ICICI or LIC

Manish

Posted on July 18th, 2011

Manish Chauhan says:

Yes you can do that

Posted on July 18th, 2011

Raju says:

Manish,
Appreciate your efforts to compile needed info.
Could you publish updated ( as of july 2011) table comparing different term plans?
At my age 39, i am looking at term plan for 1 crore + AD + DR + CI. Should i choose this option or do things differently.

thanks

Posted on July 18th, 2011

Manish Chauhan says:

Raju

For now you will have to use the same table . I will update it soon as I get time .

Manish

Posted on July 18th, 2011

Karthikraja says:

Hi
Finally i took policy from Aegon ( 50L , 25 Years). their at home medical check and customer care is excellent. i yet to receive my policy kit.
Thanks for your guidance and excellent write ups.Please guide all novice investor like me.

Posted on July 25th, 2011

Manish Chauhan says:

Karthik

Good ot hear that . Keep it up

Manish

Posted on July 26th, 2011

Rosh says:

Manish
What is your thought about aviva life shield Advantage ?
Please comment.

Posted on July 26th, 2011

Manish Chauhan says:

Rosh

Look at this : http://www.jagoinvestor.com/forum/aviva-lifeshield-advantage-term-plan-need-review/1766/

Manish

Posted on July 26th, 2011

Ajit says:

What is more important during purchae of Term Plan – Long Duration or Good Riders? In the sense, what one should opt for Policy for 35 years with no riders or Policy for 30 years with 2/3 riders?

Posted on July 26th, 2011

Manish Chauhan says:

Ajit

Both of them are independent of each other . .You choose duration based on how many more years will you work , you choose riders depending on what all risks you want to cover

Manish

Posted on July 26th, 2011

Nikhil says:

Hi Manish,
KUDOS for the good work of enhancing everyone’s knowledge.
I have a query. I took LIC Amulya Jeevan policy two years back. I took a scanned copy of all papers that the agent filled and I signed. I was going through them last week and observed that there were details of my family – father mother , number of brothers/sisters etc.
I observed that in Sisters column only one sister is mentioned. Actually I have two sisters, though one is living with my uncle since childhood. But legally she is my sister. So legally I should have mentioned TWO SISTERS. But the form submitted with LIC has online ONE.
Will this lead to rejection of claim in future.
Is there a way to get this corrected/rectified.
I asked the agent but he says it wont create any problem; but I am worried

Regards,
Nikhil

Posted on July 27th, 2011

Manish Chauhan says:

NiKhil

This is not a material information (info which can affect the premium) . But still see how it can be updateds . you can talk to customer care for htis . This should not affect your claims

Manish

Posted on July 29th, 2011

sakshi juneja says:

i’ve got ulip plans of lic like market plus,future plus,money plus. my lock in period has completed of al these. should i continue with these or withdraw? also i want to buy a term plan,so which one should i buy-kotak preffered or lic?

Posted on July 30th, 2011

sakshi juneja says:

i’ve got ulip plans of lic like market plus,future plus,money plus. my lock in period has completed of al these. should i continue with these or withdraw? also i want to buy a term plan,so which one should i buy-kotak preffered or lic?

Posted on July 30th, 2011

sudhanshu badola says:

Hi Manish,

Thanks for the valuable information. Can you please update the claim ratio data, premium amount once again for the benefit of all.
My age is 28 years. I am single and parents are not dependent on me. They don’t have any debt also. I don’t smoke and dont have any illness.
I have one endowment policy ( jeevan anand from LIC ) and one pension plan from ICICI prudential. I do make some investment in PPF also .
I am looking for an term plan with a coverage of 1 crore ( AD + CI + DR components included).
Can you please suggest me any good term plan with better clam ratio?
What will be your advise of going for 2 policies with 50-50 lakh cover?

Looking for your advise.

Thanks and Regards
sudhanshu badola

Posted on July 31st, 2011

Manish Chauhan says:

Sudhanshu

Take any from Kotak , aviva or metlife .. if you want highest claim ratio , then go for LIC

Manish

Posted on August 1st, 2011

Suresh says:

Hello Manish,
i am 30 years old and i have taken term policy from LIC for 25L two years back, Now I am planning to take one more term policy for 20L or 25 Lacs.
Could you suggest which one should i go for LIC or pvt insurance, if private , which one is better ?

Posted on August 2nd, 2011

Mukesh says:

Hi Manish,
I really like to thanks for such a wonderful comparison among most of insurance co’s. I was confused to about buying Term Insurance for my family now i think i can take this decision more easily.
I would like to know that as in my case, i am 31yrs, self employed, income approx 4l pa, married having 2 children.
I am planning to buy Kotak Pref plan amt 50lacs tenure 25 yrs or i should buy 30lacs with tenure 15 yrs (to reduce premium amt for time being) and after 4-5 yrs again buy a additional policy amount 30-50lacs (as per inflation and my need and paying conditions) for another 20 yrs.
Wht u suggest which is better opition?
Thanks and best regards
Mukesh

Posted on August 2nd, 2011

Mahesh says:

Hi

when KLI (term policy) is ADV as 1crore policy for approx. 10,000 pa.

1)my question is, i’m comfortable to pay 10000 pa for 30 year. why KLI need to know my assets and liabilities.
2) ok, i have assets of 50lakhs and liability of 1lakh and my annual income is 2lakhs. with monthly expence of 8thousand, will they reject 1crore policy.
3) i’m a tobacco user and have quit past 3month and i dont have plan to reuse tobacco. presently, i’ll take up policy as tobacco user, will i have a chance in future (after 3 or 5 or 10years…..)where i can ask KLI to review and reduce my premium as i’m non-tobacco user now.

thanks

Posted on August 2nd, 2011

Nagaraju says:

Hi Manish,

Jago investor has been a real discovery for me. Its such a wonderful place for information and congratulations for doing a wonderful job.

I have query on my term insurance. I have term insurances worth 40 Lakhs with ICICI and HDFC taken 4 years ago. My liabilities have increased in the recent past and I wanted to take another one for 50 Lakhs. What would you suggest ? Go with a new one for one crore or take another policy for 50 Lakhs.

Please advise

Posted on August 2nd, 2011

amit says:

are pagal…lic is best…r u mad

Posted on August 3rd, 2011

Dhawal Sharma says:

@ MAHESH – I know you are talking about FINANCIAL QUESTIONNAIRE and most of the time, client feel very comfortable and assuring by this procedure of my company. In fact, about a month back i was filling proposal form for my client who has taken a SUM ASSURED of 50 lakh and at the same time, agent from ICICI PRUDENTIAL was also there to fill the form for 50 lakh COVER. And there were no such formalities in IPRU regarding FINANCIAL QUESTIONNAIRE etc. And client himself told me that KOTAK has STRICT and METHODICAL approch to TERM PLAN and higher SUM ASSURED..

Company wants to know about your ASSETS and LIABILITIES to check your HUMAN LIFE VALUE (HLV), just to check if policyholder’s family is actually not benefiting from the death..For better understanding, a clerk may take up a SUM ASSURED of 1 crore and after his death, suddenly his family, who use to travel by bus suddenly started using HONDA CITY – actually PROFITING from LOSS (Economical loss of the earning family member)..

Thumb rule says that INSURANCE should be 15 to 20 times of annual income, which at your age and earning comes out to be approximatley 50 lakhs..So yes, there is a chance that your policy might be rejected..By the way, why do you want cover of 1 crore and why not 50 lakh now??

Regarding your last query, NO you can not have revised premium after a few years..What you can do is you can apply for a fresh policy at that time as a NON-SMOKER and NON-TOBACCO user, say after 5-6 years..By that time, your earnings would have gone up and as a non-smoker and non-tobacco user, your premium for higher sum assured would nearly be the same as what you are planning to pay today..

So my advice would be to go for a SUM ASSURED of 50 lakh as of today and apply for new policy after 5 to 6 years..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on August 3rd, 2011

Manish Chauhan says:

Mukesh

I dont suggest reducing the cover amount if you really need a big cover at the moment, for time being you can stop your investments , thats ok . and anyways it would make few thousands for a year .

Explore kotak , ICICI iprotect or aviva

manish

Posted on August 4th, 2011

Manish Chauhan says:

Sakshi

You can surrender your plans , but you might be in loss as they all were linked to market and have not performed . you can explore LIC term plans ,as I think for you LIC is a big trust

Manish

Posted on August 4th, 2011

Manish Chauhan says:

Suresh

You can look at Kotak and Aviva

Posted on August 4th, 2011

brijendra singh says:

sir
i am 31 , married , with one child. my annual income is 6lacs. i am looking for a term insurance plan for 1 crore for 30 years. i want the plan to cover any mishap by terrorist action also. and will the premieum be same for the complete term or will it increase each year.

Posted on August 4th, 2011

Subir says:

H Manish,
Suppose I have taken term insurance from A. Now next year I take another from B. I have mentioned in the form of B that i already have 1 policy from company A. Now is it necessary to inform comp A that I have taken another policy from company B? if yes , then whats’ the procedure?

Posted on August 5th, 2011

Manish Chauhan says:

Subir

NO you dont need to inform old companies

Posted on August 5th, 2011

Subir says:

Hi Manish,
Suppose I have taken term insurance from A. Now next year I take another from B. I have mentioned in the form of B that i already have 1 policy from company A. Now is it necessary to inform comp A that I have taken another policy from company B? if yes , then whats’ the procedure?

Posted on August 5th, 2011

Subir says:

Thnx much manish for your reply. I have another query. Last year I had taken Bharti Axa Elite secure for term 25 yrs S/A. 25L. My age is 35 yrs. I am paying premium of 6838/-. After reading this blog, yesterday I applied for SBI Smart Shield for 40L term 30 yrs. Now I am planning to discontinue Bharti Axa policy from next year onward & will opt for another one of 40L in place of Bharti Axa. How would be ICICI IProtect-I? as its premium for 40L in my current age for 30 yrs coming to 7400/ (including tax).

Now another question if I withdraw Bharti-Axa policy then is it require to provide detail why I have withdrawn that policy while applying for ICICI IProtect-I? Infact is there any provision of this?

Posted on August 6th, 2011

Bhaskar says:

Dear Manish,

Your efforts & commitment to educate us in this greay area is very much appreciated. After reading all 600+ comments, we can confidently wear Insurance Advisor hat. Now, i can confidently advise my other family members and friends on this important life planning. Ocourse, credit goes to you and your blog spot. Thank You, Thank You, Thank You, God Bless

Posted on August 6th, 2011

Manish Chauhan says:

Bhaskar

yea .. you will get a lot of knowledge with that and one can guide one , But still you will not understand some of the things which a full fledge authentic advisor or agent would know

Manish

Posted on August 6th, 2011

Manish Chauhan says:

Subir

No you dont need to mention anything about withdrawing for a new policy . ICICI Pru is good , you can go for it

Manish

Posted on August 6th, 2011

brijendra singh says:

hi manish can u plz give me some insight on my querry at number 588

Posted on August 9th, 2011

Manish Chauhan says:

Brijendra

The premiums are fixed and do not increase each year. You can explore ICICI , Kotak or AVIVA

Manish

Posted on August 9th, 2011

NAVEEN LAMBA says:

Manish, Have you Compare Aviva I life Plan………………………According to Wealth Economics times …….This is the Cheapest plan available in market……..OR YOU HAVE AGENCIES OF ALL OTHER COMPANIES……..OTHER THAN AVIVA….. CHECK ON http://www.avivaindia.com

Posted on August 9th, 2011

NAVEEN LAMBA says:

Manish, Have you Compare Aviva I life Plan………………………According to Wealth Economics times …….This is the Cheapest plan available in market………… CHECK ON http://www.avivaindia.com

Posted on August 9th, 2011

Balakrishnan says:

Hello

I am Balakrishnan, aged 35 years. I want to take term insurance for 50 L until my 70 years. But I am confused with different policies. Pl help me to choose best term plan.

Posted on August 12th, 2011

Balakrishnan says:

I am Balakrishnan, 35 years old. I want to take insurance for 50 lacs. Pl suggest best and competitive plan. I need the insurance upto my 70 years.

Posted on August 13th, 2011

Manish Chauhan says:

Balakrishnan

You can ask for suggestions here : http://www.jagoinvestor.com/forum/

Manish

Posted on August 15th, 2011

vishal says:

Hi All,
I am planning to go for Aviva i-life plan for 50 lakhs, can anyone share their experiance please?

Posted on August 16th, 2011

vishal says:

Hi All,
I am planning to go for Aviva i-life plan for 50 lakhs, can anyone share their experience please?

Posted on August 16th, 2011

vishal says:

Hi Zubair,
Did you buy Aviva i-life? Am planning to go for it in about a week, how was the experience?

Posted on August 16th, 2011

Rosh says:

thans manishh . It was informative

Posted on August 16th, 2011

Mayur says:

Hi Vishal,
I am also planning to take i-life for 50 lakhs. It seems the best and cheapest as of now.

Posted on August 17th, 2011

shivaraj says:

i want to take a term plan of 50lacs-1crore,can plaese suggest me wheather i choose online policy or normall.

Posted on August 17th, 2011

vishal says:

Zubair, can you give me your contact number please, need some info about Aviva from you.

Vishal.

Posted on August 22nd, 2011

zubair says:

Hi Vishal,
My experience with AVIVA was not good. After the medical they increased my premium by almost 10000 without giving me concrete reason. After repeated request they have not given me the copy of my medical report. Finally I decided to cancel the policy and asked for refund. I got about 70% of my money back and i am waiting for the remaining or the medical report.
Their is big problem with the co-ordination among their own departments, Even today i am getting calls to fill up my application.
But not everybody will have the same experience as mine, you can give a try.
All the Best
Zubair

Posted on August 22nd, 2011

kasi says:

recently we had a death in my famiy (my father). He had 2 different policies, one with LIC and other with ICICI prulife. When we claimed, we got the claims settled in a month or two. But LIC procedure was a bit stringent. My father died in an accident.

So we submitted the death certificate and FIR from Police station. ICICI claim was processed with this information. But LIC people want both attested by the related authorities. In that sad moment, we had to send some body all the way to the police station and the gram panchayat (where the accident happened) and got the attestations done (This was not so easy…The concerned person in gram panchayat was not there for a week. My person was daily doing this exercise. Even in Police station, the SI was not available. So my person had to make so many visits). After all this, we submitted the papers to LIC, then they wanted something else from Police station (from SI). Anyway, it was not that easy with LIC.

My father was very well known person in the town (close to MLA and we know atleast 10 LIC agents), but no body could ease the stringent procedures.

I mean, FIR copy to be attested??? who would submit a fake FIR? If they have any doubt, THEY SHOULD GO AND CHECK IN THE Police station…Not the customer when they are in sad moments.

So I think its a myth that people think LIC claim settlements are easy. Hard to think that it only happened with our case.

Now I am planning to buy Term insurance. I am thinking ICICI iprotect. Any comments?

Posted on August 24th, 2011

Gurmeet Singh says:

Hi,

I am confused whether to go for online version or the offline version of term plans. If I see the difference in premiums, that’s huge, online version is almost half the offline version.
What problems can one have buying online version? Are there any problems during claims?

Any suggestions?

thanks
Gurmeet Singh

Posted on August 25th, 2011

Manish Chauhan says:

Gurmeet

The only difference is premiums

Manish

Posted on August 25th, 2011

Gurmeet Singh says:

Manish,

The premium points is pretty clear. Thats a big advantage. I am just wondering, are there any hidden things. Are there some cases (situations) under which the life is not covered, like somebody mentioned, in online versions, death due to natural disasters, riots, terrorist attacks, suicides are not covered.
Also heard of the premiums being increased after the medical tests by as high as like 25% or more.
Are these observations correct? Are there any other problems?

If there is no difference and online is so cheap, why don’t people (at least who have online access) go for online.. but still go for offline versions?

thanks
Gurmeet Singh

Posted on August 27th, 2011

Mayur says:

Gurmeet,
I don’t see any difference in Online Vs Offline. Its cheaper as it saves the cost of agents. Now, do agents get 25-30 % of the premium throughout the policy is something I am not sure.
I paid for my Aviva policy this week and today I got the specimen copy. I will go thru and let you know if I see any discrepancy.

Posted on August 27th, 2011

Dhawal Sharma says:

@Gurmeet/Mayur – First let me show you the true picture. I know because i am an insurance agent for KOTAK LIFE..Agent does not get 25%-30% throughout the term of the policy, not in TERM PLAN nor in ANY OF THE INSURANCE PLAN. Agents get 25% commission for TERM PLAN in first year and then 4% from second year onwards till the TERM of the policy..

ONLINE version is cheap because company is saving huge expenses. In addition to AGENT’s COMMISSION, it saves a lot of other administration expenses like PAPERWORK, FOLLOWUP, STAFF SALARY etc..They will be saving in the future as well in form of NO COMMISSION, NO CALL UP/FOLLOWUP, NO REMINDER LETTER, NO ADMINISTRATIVE COST etc..

My personal belief is to go with some TRUSTED AGENT because a human element has to be there, not only for POLICY SERVICING but also for CLIENT SERVICING, which the internet lacks..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on August 27th, 2011

Manish Chauhan says:

Gurmeet

Why is premium so cheap for online term plans ? Most of hte people just put the reason as “no agent in between” , “No future costs” etc .. but thats not the “real” reasons , the real reason is that the “Target” market for online term plans are people who are generally well off and have better access to health care , so they are “better” compared to a normal person , hence the premiums are cheaper

Manish

Posted on August 27th, 2011

VIGNESH says:

HI manish

I am very young(only 21) .. now only started thinking abt insurance,mutual funds,and stocks.Intially i was so afraid how to learn these things.but on reading ur various post.I learnt many things(imp mutual funds can be bought thru fundsindia.com)….still following ur all posts…I saw your term insurance post.. I am planning to take a 1 crore term insurance for 30yrs (in lic) and after 20 yrs am goi to start another one for 30 yrs(same lic) by skipping the inital one. The reason for doi like this to get less premium amount, and to get almost full cover in term insurance itself. am i doi right??
learnings form ur post
1.As duration increases premium will be lesser.
2. if i continue the full duration in 1 st policy i will be 51 at that time so i cant enrol once again in lic for remaining of my life . till 40 only one can take that lic term insurance policy….

above two points correct or not?..if in future extra insurance needed i ll go for any one of the pvt players..
Thank you so much.. you are doi gr8 job.. continue and enlighten ppl like us…

Posted on August 28th, 2011

Manish Chauhan says:

Vignesh

No , you can take LIC policy for around 35 yrs , but thats good enough .. you will not need much insurance when u are above 50 .

Manish

Posted on August 28th, 2011

VIGNESH says:

may i know why are u telling like that??

Posted on August 28th, 2011

Suryaneel says:

Hi

I am 31 years old working for a MNC FMCG company and I draw a net salary of Rs 50000 p.m. I travel a lot on official purpose. I am married and my wife is a housewife.I have investments of LIC Jeevan Anand (S.A Rs 5,00,000), ICICI pension Plan (S.A Rs 2,00,000), HDFC Endowment Policy (S.A Rs 2,00,000), PPF (Rs 1,50,000) and Max Bupa Health Insurance (S.A Rs 5,00,ooo for me and my wife).I have purchased a flat worth Rs 35,00,000 for which I intend to take a home loan of Rs 25,00,000 for which I have to pay the EMI after possession of flat (in 2013).
I plan to purchase a term policy for the future security of my family.
1.What do you think the cover should be and what should be the term?
2.Which insurance company should I go for (pvt. or govt. or mixture of both)?
3.Should I go for any riders?
Looking forward to your suggestions on the same

Posted on August 29th, 2011

Charles says:

Hi,
After reading this article and a bit of research, I zeroed in on Kotak ePreferred Term & ICICI i-Protect. I started with Kotak and unfortunately for me, the online experience wasn’t that great. I was given a userid and password for their site which didn’t work and their ‘Forgot Password link’ didn’t work either. I emailed, called, followed up – all of no avail. So after about 10 days, I simply logged to ICICI website, chose the term and SA and filled up all details. It was quite easy and they even sent a link to restart from an earlier point when I lost the session. They did have an option to scan and upload the self attested supporting docs but I think this section needs improvement. I rather sent them all through email and got an acknowledgement that all the docs were verified. The next step was medical which was done by designated lab technician and a doctor at my home itself – took about 30 mins. I got a note later that everything was verified and the policy will be issued. So after 10 days of applying online, I got the i-protect policy in hand.
I guess you could say my online experience with ICICI was good. But it is truly up to you to decide the company based on your needs. I’d say that each person has a different expectation of service. Some of these companies have been around quite a while and it is expected that they learn from their mistakes and offer better services.
As mentioned by many, be honest with regards to your medical conditions in the past and also any policy that you already have. As for me, I just took a pure term policy with ICICI with no riders. I took a separate online accident policy with Royal Sundaram as the features were comparatively better.

Posted on August 30th, 2011

Gurmeet Singh says:

About mentioning the earlier policies… do I need to mention any kind of policies that I might have (like health insurance, endowment plans, ULIPs etc) or just the term insurance policy if I have any.

thanks
Gurmeet Singh

Posted on August 30th, 2011

Manish Chauhan says:

Gurmeet

You need to declare all the policies which has Insurace element , so declare endowment and ULIP’s , but not health plans

Manish

Posted on September 1st, 2011

Maalan says:

Manish,

Very informative article and good discussion.

The discussion says that medical tests are carried to catch certain major illness that exist at a point of time. For e.g. the form / application asks for eye sight. It keeps changing over a period of time. Will there be any problem in getting the claim settled in those cases on this ground. Your views please.

Posted on September 1st, 2011

Manish Chauhan says:

Maalan

No , the premiums are decided as per the current situation , whatever happens later does not matter much .

Manish

Posted on September 2nd, 2011

Manish Chauhan says:

Charles

Thanks for sharing your Experience with ICICI . I agree that it depends from case to case on how their experience will be

Manish

Posted on September 2nd, 2011

Manish Chauhan says:

Suryaneel

1. You can go for anywhere around 80 lacs – 1 crore of term insurance .

2. Thats totally on you and your trust . I am personally ok with pvt , you might not be .

3. Go for it , if you feel need of it

Manish

Posted on September 2nd, 2011

Manish Chauhan says:

Vignesh

Yes , a person takes insurance so that their financial dependents are not affected by his future earning capacity . When a person is near retirement , anyways he must be having lot of money and might have completed his goals…So the dependence from his family would be lower on him ..

Why do you think that a person would want the insurance in same capacity as in his early days ?

Manish

Posted on September 2nd, 2011

Biju says:

Manish, excellent comparison.

I bought ICICI Pru iProtect Option II for a 50 Lakh cover for 30 years. The premium costed me Rs 14284/-. Just wanted to know a very basic fact, is this premium amount constant for the next 30 years? Or will the insurance company review the premium as the insured getting older :)?

Posted on September 2nd, 2011

Manish Chauhan says:

Biju

Congrats on taking the term plan . Dont worry , the premiums are constant , all the future things are already discounted in the premium

Manish

Posted on September 3rd, 2011

Shatru says:

No I don’t agree with this (The death benefit payable would be Sum Assured less the balance of the premium (if any) payable in the year of death). Death benefit can NOT be less than the Sum Assured. I think what Kotak meant is that if any premium is due for that particular finanical year, that would be deducted.
Otherwise Death Benefit = SA

Posted on September 3rd, 2011

Shatru says:

Is there any problem if I have given my height 1 inch more in the application form?

I have taken Aviva i Life for 50 lac last month. I am 30 yrs old and took it for 30 yrs. I realized that I entered my height little wrong. My height is 5.7″, but after doing converting it into cm (aviva online form take height in cm), I entered equivalent of 5.8″ (inseat of 170 cm I entered 173 cm).
Please advice if this is really big issue?

Posted on September 4th, 2011

Dan says:

Dear Manish,

If i take an insurance policy from Metlife in Kuwait, can this be claimed from India as they say thay are international and have support centers in India.
Will this insurance come under the preview of the insuranec Ombudsman if my depandands claim it from India after my death??
please advise.
Regards,
Dan

Posted on September 4th, 2011

Manish Chauhan says:

Dan

I am not very sure on this .. but let me get dhawal to answer that .. wait for 1-2 days !

manish

Posted on September 4th, 2011

Manish Chauhan says:

Shatru

No , this is not a material fact (this cant be a basis to reject the claim) .. You height is ever changing .. so one inch wont make the difference

Manish

Posted on September 4th, 2011

Dhawal Sharma says:

@Dan/Manish – METLIFE is US based MULTINATIONAL insurance company with its presence all over the world, in almost all the countries..But in each country, it a unique separate identity. In india, its METLIFE INDIA, totally independent of METLIFE AMERICA or METLIFE KUWAIT..

Yes, once you take an INSURANCE POLICY from whichever company in whichever country, claim can be made from any country where the policyholder would have died..But the claim will be settled in the currency of the country in which the insurance has been done..Plus claim procedures have to be completed in that country only..In your case, in unfortunate event of your death (even if in INDIA where you have taken the policy from METLIFE KUWAIT), claim will be paid for SUM ASSURED as fixed in KUWAIT (For eg, 1 lakh KUWAITI DINAR) and the claim formalities have to be done in KUWAIT..

Posted on September 4th, 2011

Dhawal Sharma says:

Good news to lot many readers on JAGOINVESTOR..

http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/lic-joins-online-play-with-pure-term-policy/articleshow/9843161.cms

Posted on September 4th, 2011

Shatru says:

Thanks Manish. But do I need to tell this to insurance company immediately to update their records with my height one inch lesser than specified on form? Sorry for asking again – is there even 1% chance of claim rejection due to this height? Actually my mistake was during conversion of inch to cm, while I have seen may people measuring heights while wearing shoe or chappals, and in that case measurement will be definitely 1 inch more :-)
Please advice. I was in big tension due to this, but your reply gave me some relax.

Posted on September 5th, 2011

Manish Chauhan says:

Shatru

You can communicate this to them .. but tell me this , suppose you had given the right height at the time of taking the policy , but now in few months , suppose your hieght increase by 1 inch due to reasons like good health , eating habits eetc .. then what ?

So in my opinion this is not a very big problem , the height is mainly taken because suppose you die in accident and its not easy to identify the body , height becomes a good enough approximation to judge if the person is same or not .. note that if a 5 inch person says 6 inch , than it is problem , but if a 5-7 person sayd 5-8 or 5-6 … its ok ..

Manish

Posted on September 5th, 2011

Manish Chauhan says:

Dhawal

Thanks for the answers .. good learning ..

manish

Posted on September 5th, 2011

Manish Chauhan says:

Shatru

Thats true .. Kotak Term plan has that rule .. look at their document

Manish

Posted on September 5th, 2011

Gurmeet Singh says:

I think you meant – if a 5 Ft person says 6 Ft, that is a problem, but if 5 Ft 7 in person says 5 Ft 8 in or 5 Ft 6 in.. it is ok – . Right?

Posted on September 6th, 2011

Sunil Date says:

@shatru Body mass index (BMI) is a factor of height and weight and is a feature considered in medical underwriting. If you have undergone a medical test after filling up the proposal form, then the actual height and weight must have been recorded. Its range indicates whether a person is underweight or overweight etc. If your ratio happens to be near one of this limits it may become a material fact. It is always better that the proposer / agent should not become a underwriter and decide what is relevant and what is not. It is best left to the insurance co. So it is better that you write to the insurance company and get an acknowledgement.

Posted on September 7th, 2011

Manish Chauhan says:

Yea .. i agree with Sunil Date , that the final decision has to be taken by Insurance company. Better you communicate to them this fact

Manish

Posted on September 8th, 2011

sanjay says:

Hi Shatru,

Looking at your response on purchasing Aviva i-Life i want to know how the companys response is? I am also planning to take one and AVIVA’s seem to be cheapest.

Also want to know what all deaths are covered with Aviva (like Terror attack, bomb blasts, accident, un natural death)? Will the premium remain same throughout ? What test have been conducted ?

Regards,
Sanjay

Posted on September 12th, 2011

sanjay says:

Hi,

My Question is on a specific Term insurance provided by Aviva i-Life. I am 27 yrs of age and planning to take a cover of Rs 1 crore for a period of 35 years. The premium works out to be 7500 Rs approximately. This is buying online and the premium amount is very less. The company would bear the cost of tests. Has anyone taken a Aviva policy or any idea about it. This policy seems to be offering cheapest preimum as compared to LIC which is 4 times. Please provide a feedback on this.

Another Q is on type of death like Terror attack, bomb blast, accident or un natural death. Will there be problem in settlement of claims ?

Also any of the expert in this forum can let me know of any other company policy that is good and cheaper and hassle free with faster claim processing.

Appreciate if anyone could respond to this query.

Regards,
Sanjay

Posted on September 12th, 2011

vishal says:

Hi Manish,

I have taken the Aviva ilife, submitted on 2th Sep and got the policy deliverd on 9th sep. They did not ask for medical test. I beleive because there is no medical history except my dad’s piles operation which I have mentioned in the form and am a non-smoker , non-drinker. But am still skeptical about the policy without medical test. Will we have the say in future that it was the company’s decision not to do a medical test and they cannot reject the claim if the info provided to them in the form is correct and accurate.

Posted on September 12th, 2011

Shatru says:

I filled online form and I have no medical history. No medical tests conducted and I got the policy delivered in a 7-8 days time.
I think it covers all type of death, but I need to check in my policy. As far as I remember it says that all deaths covered except suicide in first year. And yes premium will remain same throughout the policy

Posted on September 12th, 2011

Manish Chauhan says:

Vishal

Its not the case that you should doubt the policy ,. For what amount you have taken the cover ? Because for less covers like 20-25 lacs or sometimes less than 50 lacs ,they dont do medical tests . Dont worry .. it can be basis for rejection that they didnt do medical tests

Manish

Posted on September 12th, 2011

Manish Chauhan says:

Sanjay

Dont worry too much on this .. Nothing will happen … The policy covers pretty much everything .. if you have given all the info correctly , you will get hte claim amount ..

Manish

Posted on September 12th, 2011

Gaurav says:

Hi Manish,

First of all, thank you very much for enlightning people like me about term insurance. After reading your article, I have decided to go for term plan for both me n my wife.
Though I have some queries, and would be really great if you n others can throw some light on it. I am planning to go for a Term Plan plus CI plan:

1) Should I go for a CI rider along with term plan or individual CI plan?

2) If you suggest to go with CI rider along with term plan, then can you suggest some good policies. I have checked Aviva+ and SBI Life Smart Shield and though the premium of SBI is very low compared to any other plan, it offers the premium for only 5 years and then the premium would revise, so how much hike can be expected after every 5 years (considering both of us are 25 year old and I am looking for policy of 30 year)?
Also is ther any other policy better than the ones I have mentioned?

3) Or if you suggest to go for a individual policy for CI, can you suggest some good ones, I have checked one from bharti axa, but max SA is of only 5 L which I think is low for any CI?

4) Do you have any idea on the upcoming online policy from LIC, i have read it somewhere they are coming up a new online policy but I am not sure about the Launch date (expected)?

Thank you very much for your efforts, I really appreciate your genuine efforts to help others

-Gaurav

Posted on September 14th, 2011

Manish Chauhan says:

Gaurav

1) the first answer can be given only by you and no one else . Do you need CI Rider or not ? Now its you who can tell it , how do I say if you need it or not . Its a additional benefit for which you will have to pay some more premium and you will get a lumpsum if you are diagonosied by some ciritical illness .

2) You can go with Kotak or some other conmpany which provides it .

3) I am not sure of recommendation at this point .

4) Yes, there is a news like that .. but you never know when it will launch . It might take time .. totally no idea on the launch date .

Manish

Posted on September 14th, 2011

sunil Date says:

@Gaurav
1 It is always better to go for a standalone Critical illness or for that matter even disability (accident) cover. It provides for flexibility. There is no special benefit in taking it as a rider. Incidentally you should avail of medical policy first and then consider CI.

Posted on September 15th, 2011

VIGNESH says:

thank you for guiding me.. post if u got abt that lic online term insurance premium..

I dont want to take a risk with the private partners. As i personally still facing a problem with bajaj allianz medical insurance for my father who met with a head injury accident(he is recovering now).they did not still settle the claims..

1.They initially wanted all of our medical bills attested(usual procedure), but in our case it was some 200 bills. very tough procedure but we did that.we submitted.
2. After this they need x-ray or scan report. that most hospitals will not give. but our hospital give that also.on receiving this they told that ppl from bajaj allianz will come for a check up (to my father)
3. They did not turn back. only we lost some 2000 rs by calling them
4. then we moved to irda(with so much hope).. bajaj allianz informed irda that they have closed that insurance and infromed all the dealers not to give the insurance. the brokers( we bought this insurance thru shriram chits) might have issued wrogly.
5. we are in now consumer s court……..awaiting reply……………………….
for the past two yrs we are dealing this problem….

pls my kind suggestion : claim can be rejected if its not genuine one. we have all the documents . pls dont see ur low premiums and go for pvt players and give problem for your dependents after any accident….

This might look bit exaggerated. but this is the real story happened in my life. if i get my compensation i ll surely post….

Posted on September 15th, 2011

moonlightdriver says:

I feel while buying insurance policies going by the claim settlement ratio is not the appropriate way of looking at it. I say this because at any point of time there a large number of claims under settlement which have neither being settled nor rejected. The claim settlement ratio does not take these claims under settlement into account. Most of the new insurance companies that have started business in the last 3-5 years have a major portion of claim request under settlement and hence the final claim settlement ratio is very poor.

I feel another way of looking at this will be the claim repudiation ratio. Claim repudiation ratio in percentage terms is the number of claims rejected by the insurance company out of every 100 claims it has received. The IRDA annual report also shows the claim repudiation ratio. If you carefully observe the IRDA Annual Report 2009-10 and study the Claim Repudation Ratio of insurance companies then LIC beats the entire industry hands down. LIC received a huge 6,77,374 claims during the year. Out of these LIC settled 6,53,909 (96.54%) of the claims. 9527 (1.41%) claims are pending for settlement. And 8227 (1.21%) claims were rejected. Now the 8227 claims that were rejected during the year in absolute terms seem huge, but in percentage terms it forms only 1.21% of the total claims that were received during the year. So that way on such a huge base (number of customers) that LIC has and the huge number of claims (6,77,374) that they received during the entire year, only 1.21% of the claims were rejected. So in that sense LIC has done a commendable job. Whereas if we take the entire private life insurers together the repudiation ratio is 7.6% and for the life insurance industry as a whole the claim repudiation ratio is 1.93%, but that is because of the good claim repudiation ratio of LIC.

Posted on September 16th, 2011

Harsh says:

Hi Manish……excellent post……i was looking for a term plan…..n found your post….really informative article…….but can you update the above table….it will be really helpful…….thanks……

Posted on September 18th, 2011

Manish Chauhan says:

Harsh

they r still valid …

Posted on September 19th, 2011

superlott says:

Great to see detailed info.
I was diagnosed with cancer 2 years ago and was on disability. Joined back my company after attaining complete remission. I want to take term insurance. Do i need to wait for 3 more years or go for it now itself? Please guide. Thanks.

Posted on September 22nd, 2011

Manish Chauhan says:

Superlot

Why to wait for 3 yrs ? You can go for it , but now your premiums might be very high or some companies might reject your applicattion

Manish

Posted on September 22nd, 2011

Taurus says:

Hello Manish,

This is excellent article. The exact one I was looking for.
Thanks for this article.

I had been planning to go for an online term plan worth 1 Cr, 28 yrs age, 30 yrs duration. I was confused which one to select among:
– Met Protect
– Kotak e-Preffered
– Aegon Religare iTerm [max duration 25 yrs.]
– ICICI iPortect [appears to be bad in service]

Please suggest me the best one to go for considering Exclusions, Service etc.
Also, should I take two insurance of 50 L from two different companies?

Thanks in advance.

Posted on September 23rd, 2011

Murali S says:

Tarun and Mainsh
This is my answer to concern number 5
All the insurance companies are required by law to deposit a surety sum of 100 crores to IRDA before they can start functioning precisely for this reason. Further in case if they are taken over by other companies, the protection of the policy holder would continue as per the original policy details.

Posted on September 23rd, 2011

Santosh Kumar says:

Sir,
I have taken a term policy & disclosed all the health related matters of myself & my family members,by gods grace we dont have any problem.
2)Suppose I suffer from a disease like hypertension/diabetes few years after taking policy,do I need to inform this to insurane company ?
3) what if I start smoking / drinking alcohol few years afer taking policy ,do I need to inform insurance company that I have stared smokin /drinking from such a date/month/year ?
4) Will the nondisclosure leed to non settlement.

Posted on September 23rd, 2011

Kapil says:

Dear Experts,

Please help me to resolve my queries, before i go for Term plan.

1. Is Pure Term plan good to opt?
Or I should add Riders (CI, PD) along with pure term plan?

2. Do riders like CI and PD, really works well in terms of Settlement? Or insurance companies, put if and buts and reject it.

3. Online Vs Offline
Do we have provision of declaration in online option?
Do we get 100% details of detailed terms and conditions in the online purchase?

4. Purchasing from two different insurance companies (if some one wanted to claim from both the companies), is it really a good option?
On death, if we claim with first company (claim accepted) and other company might say NO, because we have already got claim from first company
Do other company ask for original documents.

Thanks in advance
Kapil Goel
Age:33 yrs
Habits: Non smoker, Alcohol consumption once in a while

Posted on September 23rd, 2011

moonlightdriver says:

Sanjay,

I doubt aviva will cover terrorist activites. chk with them clearly.

Also chk if they cover specific incidents like murder or death from snake bites etc.. or riots(gujrat riots)…. don just look at the cheap options …..

I am surprised to see that the comparision provided here are from premium prespective only ……

see links below

even the familes of people missing in gujrat were given claims. do some research on google yourself

as far as my knowledge goes the only company in India which will give you a comprehensive term insurance policy is LIC it covers all what I have stated above …… that is why there preimums are on higher side. hence it is not correct to compare LIC term plans with these .

Many be when LIC launches its own version of internet based term plan we will have apple to apple comparision.

Please note morality tables are same for all insurance cos in India, in fact pvt cos depend in LIC historical data for there premium calculation.

so do not just see the cheapest option and decide look at the features as well, when i wanted to take the term cover for myself i met the branch managers of several pvt cos and LIC after my asking the above mentioned questions many of the pvt branch managers stopes picking up my phone !!

my advice do some hardwork investigate then secure your family….

@manish please provde a more detaied review of term plans – thx

Posted on September 24th, 2011

moonlightdriver says:

really what would you want to say abt satyam scandal etc which affected millions of small share holders……
A no of cases are pending on relience, shara group etc

corruption is beyond the scope of this paltform given by manish lets not beat around the bush

Posted on September 24th, 2011

moonlightdriver says:

All see this excellent analysis on online term insurance it talks more about the product then premiums i hope this is usefull to all

http://www.moneylife.in/article/online-term-plans/17600.html

Posted on September 24th, 2011

Manish Chauhan says:

Moonlightdriver

Yea i have seen this article , it really brings up some important and not so talked about matters .

Manish

Posted on September 24th, 2011

Manish Chauhan says:

Moonlight

Yea , this comparision was just on premium level , I agree … This article just gives the basic comparision , the real onus lies on the policy taker like you did in your case .

Manish

Posted on September 24th, 2011

Manish Chauhan says:

Kapil

1. What is your requirement ? term plan is good for some one who want to provide for a financial cover to their financial dependents with a small premium .

2. Do you really think it would be happening that way ? A lot of people get its benefits , people who dont get it are the one’s who have hidden facts .

3. Yes , you get everything .. online term plan are targetted at a section of society and thats all .. you get everything same just like offline term plan

4. You can cliam from both the companies ,their deicsion depends totally on their claim settlement procedure , not on other company decision

Manish

Posted on September 24th, 2011

Manish Chauhan says:

Santosh

1. Health insurance is a yearly contract , so at the time of renewal , if they ask you , you need to tell , if they dont, then you dont

2. Same as 1

3. In this case , if they ask and you dont tell, then there will be non settlement , obviously

Manish

Posted on September 24th, 2011

Manish Chauhan says:

Murli

Thanks for answer

Manish

Posted on September 24th, 2011

Manish Chauhan says:

Tauras

Kotak and Aviva are liked a lot by readers these days

Manish

Posted on September 24th, 2011

Abhishek says:

Dear blow owner–>

I have liked the idea and intention. Its So imp that every individual gets to know about importance of Insurance. I like you to post few more useful info articals, which u can get from that report it self. Like insurance coverage ratio in India.
try to promote and sensitise the need of insurance .
explain the basic meaning of insurance first, then how to choose the premium amount, decide between type of plans. lot of people dont even know and understand it. We are talking to only knlowgble people. We need to reach and educate Non knowledgble people to do some betterment towards society.

Posted on September 26th, 2011

Abhishek says:

I would like to get comparisions of health and non life insurance co as well to complete the spectrum of insurance needs of person.

Posted on September 26th, 2011

Abhishek says:

Most imp ,Its better if you remove the Chart given in this blog as claim ratio.
Because- everyone may not read all discussions or may nt be able to understand as well. you have also accepted lot of times in discussions , in terms of not reading a report rightly and there are lot of other factors of high claim payout of diff insurance co. It does not talk about only term plan comparisions and title of discussion is term plans. let there be featur comparisions, premium comparisons.
let discussions be there too, but Request to Remove this Chart as its not useful and not the very great tool to take a decision. Its better if you post a articale on , preacutions while to take term plan or Insurance.

Posted on September 26th, 2011

Abhishek says:

KOTAK may be good ( E Preffered ) for NON SMOKER AND WOMENS.

Posted on September 26th, 2011

Abhishek says:

Aviva life online term insurance is one of best and econmic to buy for smoker-
for 36 yr age- 1 cr amount- prem is rs 19257.

Posted on September 26th, 2011

Abhishek says:

ICICI i PROTECT IS BETTER then Aviva as It offers Accidental Rider a s well.

Posted on September 26th, 2011

Kapil says:

Thanks for the reply Manish.

My main objective is to get the cheapest term plan of 50Lakh for 30 yrs.
Along with it, I wanted to opt for Critical Illness and Permanent Disability riders with 30 – 50 Lakh SA for 30 yrs.

Whole idea is, if we get any of the listed CI disease, then we should get a lump sum amount.

I have explored, SBI, but looks to be costly, Now i need to judge between ICICI pru and Kotak Life insurance plan.

Hope you can suggest me some good options to explore.

Posted on September 27th, 2011

Ganapathy says:

Ganapathy
Dhawal/Manish,

You have in your Dec-23-2010 blog, recommended Kotak as a good option. My queries are, therefore, directly focused on Kotak Term Plan and your clarifications on these will be of great value to all:-

1. Kotak Term Benefit (KTB)/ Kotak Preferred Term Benefit (KPTB) is the first Rider listed out in their RIDERS Brochure –

It reads as:

“in the event of death of the Life Insured during the term of this benefit, the beneficiary would receive an additional death benefit amount, which is over and above the Basic Sum Assured. The maximum amount of benefit that is available is equal to the Basic Sum Assured”.

I have not been able to locate this Rider under their main KOTAK TERM PLAN Brochure – could you please explain what this Rider is all about? And where are the premium calculations shown in their website?

2. KOTAK PERMANENT DISABILITY BENEFIT (PDB) RIDER: It reads as:

“If the Life Insured becomes totally and permanently disabled due to an accident and the policyholder proves the same to the satisfaction of the Company, Kotak Permanent Disability Benefit Sum Assured will be paid as five annual installments of 12% of the Sum Assured, starting on the date that disability is admitted by the Company, followed by a final payment at the end of the fifth year of 60% of the Sum Assured. The life insured should survive for at least 120 days from the date of the accident. The policyholder should write to the Company giving the details of Permanent and Total disability in the required format, within 150 days after the happening of the disability. Permanent Disability is defined as permanent and immediate inability to work or permanent loss of use of any two limbs or total and permanent loss of sight or injuries that permanently preclude following an appropriate occupation from the date of accident onwards. The maximum cover available under this benefit is equal to the Basic Sum Assured (subject to a maximum of Rs 10 lakhs)”.

My queries against this RIDER are:

(a) The first condition is, the insured should survive for a minimum period of 4 months to become eligible to make a claim; the second condition is that he can raise his claim only between the 4th and 5th month of his post-accident survival; the 3rd condition is that the disability has to be got admitted by KLI; the 4th condition is that the PDB benefits will be paid only as installments stretching over a period of 5+ years. If the disability condition of the insured has been established beyond any element of doubt, admitted and accepted by the Insurer, why disbursement of the benefits be stretched over to 5+ years? Are the other Ins Cos also following a similar pattern of time schedule for disbursement of the PDB?

It is further stated in the KLI Rider that the PDB will be paid as 5 annual installments of 12% followed by 60% at the end of the 5th year – there is no clarity in this kind of a statement to show how much is getting paid when; does this infer that 5 x 12% = 60% plus another 60% at the end of the 5th year, totaling 120% of the RSA is getting paid? can we have an illustration of a sample case please?

(b) The next question that comes to my mind is that ‘what happens if the disability has been admitted and the 1st installment paid, but the insured subsequently passes away before being there alive to receive the remaining installments? Will KLI pay all the remaining installments towards the PDB forthwith along with the 100% BSA to his nominee? OR is it that the PDB benefit is designed and designated exclusively for the insured and since he is now longer alive, the Ins Co stands fully absolved of its obligations to pay the full benefit of the SA against this Rider and that his family in turn has no right of claim on it? Is the same kind of modus operandi being adopted by other Ins Cos also?

(c) Is the insured eligible to get any Disability Benefit paid against PERMANENT PARTIAL DISABILITY (PPDB) also? If so, what is the rule that is uniformly applied here by the Ins Cos to determine the eligibility criteria for the PPDB ‘vs’ the quantum of PPDB payable? In the same way, what norms will be applied by the Ins Cos to prove that a permanently partially disabled insured is capable of or incapable of pursuing the same profession/occupation he was earlier engaged in and hence he is now eligible or ineligible for the PPDB?

3. CRITICAL ILLNESS BENEFIT Rides reads as:

“This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. On the first occurrence of critical illness during the term of the plan, you would receive a portion of the Sum Assured to help you reduce your financial burden in this emergency”.

This kind of a statement is very vague – it only serves to keep the insured in dark and does not answer pertinent questions like: why only a portion is paid, why not the full CIB SA? If only a portion is paid, what % does it constitute on the total CIB SA? When will this portion (%) be paid and when will the balance portion be paid? And how soon will it be paid? If the insured does not get answers to these questions beforehand, how can he determine the usefulness or otherwise of such kind of a Rider? Can we get a general idea or a comparison as to how other Ins Cos deal with these Riders and dispense the benefits – maybe our fellow bloggers can narrate some of their experience with their respective Insurers and we all can take a cue from them.

The CIB Rider further reads: “After the Critical Illness Benefit is paid, the Basic Sum Assured and all the benefits dependent on the Basic Sum Assured will reduce in the same proportion that the Critical Illness Benefit bears to the Basic Sum Assured at the time of claim.

This can be a shocker to many and the complexity of this clause is definitely beyond the comprehension of most of the readers. How can a benefit paid or payable against a particular Rider SA can interfere with the benefits of either the BSA or any other benefits against any other Rider SA when every SA, whether it be the BSA or the SA of any of the Riders, is independent of itself and commands individual premiums as per the SA chosen by the insured at the time of taking the Policy? Can we have an illustration of a sample case as to what this clause is trying to convey to the reader and what kind of an adverse effect this can have on the benefits of BSA + other Riders getting paid?

4. Following diseases have been covered under the CIB:-

• Heart Attack (MI)
• Cancer
• Stroke
• Coronary artery by-pass graft surgery (CABG)
• Kidney failure
• Major organ transplants
• Paralysis
• Loss of limbs
• Aorta surgery
• Major burns
• Heart valve surgery
• Blindness

Quite a few of the above Critical Illnesses – like Paralysis, Loss of Limbs, Major Burns, Blindness, etc. – can eventually render an insured PERMANENTLY TOTALLY DISABLED negating all possibilities of his being able to pursue any kind of occupation / profession. Will the insured, in such a situation, now regarded as permanently totally disabled, stand to get paid against both the Rider SA benefits of 100% CIB as well as 100% PDB?

5. Whether the KLI Term Plan Policy Bonds are explicit that they will pay the BSA and other benefits against the different Rider SAs in respect of claims arising out of DEATH or PERMANENT TOTAL or PARTIAL DISABILITY or CRITICAL ILLNESS directly or indirectly caused as a result of ‘terrorism/terrorist acts, bomb blasts, acid explosion, riots, stampede, civil war, civil unrest, police-brutality, road-rage, robbery, kidnap, molestation, rape, shoot-outs, extortion, knifery, murder, acid-throw, all types of accidents and mishaps due to negligence & failure on the part of the Govt machinery/mechanism, natural calamities like outbreak of epidemics, storm, lightning, thunder, rain, floods, drowning, cyclone, tsunami, earth-quake, volcano, fire, electric- shocks, gas leakage, building collapse, tree-uproots, etc., etc.’ What are the exclusions that have been listed out in their policy bond?

Thank you

28.09.2011

Posted on September 28th, 2011

Pankaj says:

Manish,

I am 37 years old and taking medicines for mild anxiety and hypertension. My BP is under control and have no health related problems are taking medicines.

As per your suggestion, i didn’t hide any of my health status and because of that all companies (I applied for ICICI, Kotak) are declining my policy.

Can you suggest what I can do now as I am married and want to go for a term plan to support my family.

Thanks,

Pankaj

Posted on September 28th, 2011

Manish Chauhan says:

Pankaj

You dont have to regret on declaring your ailment , if you had not declared that , it could become the basic for rejection later and you would not be there to even regret . Apply in more companies

Manish

Posted on September 29th, 2011

Manish Chauhan says:

Ganapathy

I have mailed Dhawal to reply to this .. he is on the way !

Manish

Posted on September 29th, 2011

Manish Chauhan says:

Kapil

Kotak and Aviva has those riders I guess , if your mail requirement is Critical illness cover, better go for a stand alone policy for that

Manish

Posted on September 29th, 2011

Manish Chauhan says:

Abhishek

But that comes at a cost !

Posted on September 29th, 2011

Manish Chauhan says:

Abhishek

Thanks for your feedback , we believe that a lot of people want to look at this data before taking their personal decision and they go to IRDA website for this , so it can act as their reference

Manish

Posted on September 29th, 2011

Manish Chauhan says:

Abhishek

Yes , we will do that soon

Manish

Posted on September 29th, 2011

Manish Chauhan says:

Abhishek

Those kind of articles are already written , find it from archive section : http://www.jagoinvestor.com/archives

Posted on September 29th, 2011

Dhawal Sharma says:

Ganapathy/Manish,

phoofffff..Quite an inquiry this!! I am sure if a real-life client would have asked me so many questions, i would have taken ages to answer all his questions..and then finally close the deal ;-)

Ok, lets start with the serious stuff..
The first line you read in the broucher is basically HEADLINE, that is, it says this broucher is showing you the benefits of RIDERS covered under TERM PLAN and PREFERRED TERM PLAN and its explanation that RIDERS mean extra benefit, over and above the BASIC SUM ASSURED..So please take that KTB and KPTB as headlines..

thank God that you have no doubt or confusion for the first rider, that is Accidental Death Benefit (ADB) rider as its very much self-explanatory..

Now coming to the crucial part, the Permanent Disability Benefit (PDB) rider..Company has inserted the clause of 120 days of survival so that the policyholder is eligible for PDB rider only and not the DB as well..I mean if the policyholder has met with an accident, rendered permanently disabled (losing both eyes and hands for extreme example) and company pays him the PDB rider in full right there and then and due to the subsequent complications, policyholder dies within 1 to 2 months, then company again will be required to pay the DEATH BENEFIT..Please try and understand this RIDER is offered to help the policyholder and his financial dependents to get some INCOME SUPPORT which they will be needing in case of POLICYHOLDER not being able to earn anymore..as the saying goes “CAPITAL MELTS & SINKS, BUT THE INCOME PERSISTS AND STICKS”, through this RIDER, policyholder and his dependents are ensured of financial resource for day-to-day expenses..another part of this RIDER which you have got wrong is the wording which says “POLICYHOLDER SHOULD WRITE TO THE COMPANY, GIVING THE DETAILS OF PERMANENT AND TOTAL DISABILITY IN THE REQUIRED FORMAT, WITHIN 150 DAYS AFTER THE HAPPENING OF THE DISABILITY.” So its not that he can raise his claim only in the 4 and 5 month. He can start the procedure immediately of informing the company and will get the benefit immediately upon fulfilling the condition of surviving for more than 120 days..

Yes, with pride i support you understanding that KOTAK will be paying 12% x 5 years = 60% + 60% at the end of 5 year = 120% of the total RIDER BENEFIT. This is one of the best thing that our company has come up with where KOTAK is taking the onus upon itself to give the interest on the amount which is its obligation and its paying in 5 installments..So you can say its the interest which is company is paying to you, because its fulfilling its obligation of paying the amount in 5 installments rather than in one go..

the point is, these RIDERS are not meant to be END UNTO THEMSELVES..They are just the means, as the name says, the additional benefit, to the family in case the BREADWINNER of the family is no longer earning..If after taking the 12% installments for 2 years, the policyholder dies – yes, the nominee will not be able to get the remaining 3 installments of PDB rider but will only get the BASIC SUM ASSURED..Unjust?? but what if the policyholder dies in the 5th year after taking 120% of the PDB rider?? Would the company be asking for 20% back or deducting from BASIC SUM ASSURED?? No, because understanding of these RIDERS are different..
Most of the insurance companies are following this pattern because of the underlying principle that these RIDERS are meant for providing steady income flow and not the wholesome financial backing..

No, partial disability is not included as the first line of this RIDER says “IF THE POLICYHOLDER BECOMES TOTALLY AND PERMANENTLY DISABLED..” So no room for partial disability..

This CRITICAL ILLNESS BENEFIT rider is a complex issue, i agree..In fact, to ALL of my CLIENTS, and there are substantial for TERM PLAN, i always advice them to exclude this rider. One, because the PREMIUM for this rider is very high plus its very complex to understand.
But the bright side is that atleast KOTAK is giving everything in BLACK and WHITE..Its not leaving any room for mismanagement that if someone is comfortable with this RIDER, he can go ahead with this or leave it. Nobody can say later that company never told me about this, or such and such thing..

sheepishly, To first part of your query under CRITICAL ILLNESS RIDER – i want to say that I DONT KNOW :-( This thing has never been explained to us in our training sessions or study material which we got from the company. A few of my senior collegues (Senior agents who are with KOTAK for last 7 to 8 years) have raised this query but i dont know what information did they get..Let me persue it for you and let you know real soon..

Now coming to the second part of your query, it would be a tricky explanation. Under this scenario, neither the POLICYHOLDER has died nor is he rendered UNABLE TO EARN due to any disease..So the company here is making payment to help out with his MEDICAL EXPENSES with major chances of the policyholder now being in more risk pool than he earlier was, that is when he was hale and hearty. That is why company is trying to reduced the BASIC SUM ASSURED in the same proportion to CIB rider..

As to your next query as to the CRITICAL ILLNESS leading to PERMANENT DISABILITY and then eligibility of the policyholder, please read the first line of the PDB RIDER on page 2 of the PDF file which says “IF THE LIE INSURED BECOMES TOTALLY AND PERMANENTLY DISABLED DUE TO AN ACCIDENT..” So no room for this 100% + 100% scenario..Moreover, exlcusions pertaining to CIB rider are given on that PDF file on the last page, page 5..

Regarding the BASIC SUM ASSURED, death due to any reason will be covered, be it TERRORIST ATTACK or whatever..Please check this statement by our then MANAGING DIRECTOR, Mr Gurang Doshi in 2008
http://insurance.kotak.com/media/pdf/Kotak%20Life%20Insurance%20covers%20death%20due%20to%20terror%20attacks.pdf

Exclusion as to death not covered under RIDERS is give on that PDF on page 5. Hope we are sharing the same PDF for EXCLUSIONS. Will mail that to MANISH and he can share the same with you personally over the mail..

Hope to have satisfied your queries to great extent. Will get back to you once i will have more light on the subjects not answered in this thread..

Now lastly i want to add 2 points from myside:
1. Due to all those doubts and queries you have raised, we always advise our clients to go for one EXPERIENCED and PROFESSIONAL INSURANCE ADVISOR who should be able to answer all your doubts or queries..All such things are not possible in ONLINE MODE..You might have ended up buying a CHEAP ONLINE TERM PLAN with no explanation given to your queries (i highly doubt anybody from the CUSTOMER SERVICE or CONCERNED COMPANY’s CALL CENTER would have been able to recognize such things exist, let alone answer them)..
2. For these reasons only, your FINANCIAL ADVISOR would be able to help out the nominee in case of unfortunate death of the POLICYHOLDER. As you have raised so many queries and might have got most of the answers, but your spouse will never know these complexities..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on September 29th, 2011

sunil Date says:

@Ganapathy/Dhawal – Accidental disability benefit. It is always better to take this as standalone policy from a general insurance co. The definition of permanent disability seems to be fairly clear in case of KOTAK viz ” Permanent Disability is defined as permanent and immediate inability to work or permanent loss of use of any two limbs or total and permanent loss of sight or injuries that permanently preclude following an appropriate occupation from the date of accident onwards. ” In case of Max New York and most other life co’s it boils down to “Not being able to earn any living” (mind you ” not appropriate occupation”) which means a engineer being able to run even a disabled phone booth will not be considered as not being able to earn any living i.e practically person has to be nailed to the bed.

A stand alone policy from a general insurance would cover even partial ( say only toes or little finger to spinal cord) and temporary disability ( weekly benefit upto 100 weeks). viz Cholamandalam CAP. It has other covers too like broken bones, modification of residence / vehicle, family transportation, transporting mortal remains etc.

Posted on September 29th, 2011

Ganapathy says:

29.09.2011
From Ganapathy
To Dhawal/Manish/Sunil

Many many thanks for having spared your invaluable time, taken so much of pains and answering my queries. Your reply is also as much long as was my queries, so I ‘ll need more time to read, understand and reconcile with the crux of the various issues that have been dealt with. I’ll get back to you in due course if I have any more queries on the subject.

Thanks once again, and Good Day to all!!!

Posted on September 29th, 2011

Dilpreet Singh Bagga says:

Just to add to Dhawal, term plan specifically with 20 Lacs plus cover, the insurer would like to have a clear view on financial capability of an individual as well, hence, financial questionnaire is required. This is nothing but keep a tab on human life value and if the individual is worthy of taking huge cover.

Apart from financial questionnaire and medical addendum, there is another report called agent report/SM or BDM report which is required to be submitted along with higher sum assured to ensure that insurer is not doing any adverse selection.

Regards,

DP

Posted on September 30th, 2011

Dilpreet Singh Bagga says:

Dear Manish, here i will agree with Dhawal, income levels are important to ascertain the cover which one can take. Financial questionnaire helps an insurance company understand the customer much better by knowing the overall financial well being. Moreover, apart from financial questionnaire, an agent report/SM or BDM report is also submitted to avoid adverse selection.

Nambiar, assets and liability information is important from insurer’s point of view since this also forms a basis of their decision about the level of cover to be provided to an individuals.

Posted on September 30th, 2011

D.inesh says:

Hi Manish,

I recently bought MetProtect online after doing some research on the avaialble online term plans.
I realized that Aviva also has a similar offering called iLife which is cheaper than MetProtect. What do u think? Between the 2, which would be better (I have 2 weeks to send MetProtect back) in terms of features etc. All else being equal, my perception is that Metlife comes out better than Aviva.
I had an opportunity to meet some Aviva agents and was quite dissatisfied with their knowledge ( u shud at least know what u are selling in some depth !). Hence the choice of Metlife.

Posted on September 30th, 2011

Kapil says:

Hi Manish,

I have prepared and come across the following questions before taking any kind of online pure term plan.

I would really help others as well.

1. What is Risk commencement date and Reinstatement date?

2. What are the causes of death which are not covered?
Following could be examples:

a. Death by accident and found, that insurer has consumed alcohol or nicotine and was driving.

b. Suicide with in a year of taking policy.

c. Pre planned murder of the insurer.

there could be exceptions like this, some one has to validate those exceptions.

3. In case insurer has become irregular in paying premium, for about 10 times in the total policy terms, but he is able to resume the policy (if Insurance company agrees to it) after wards. Would that be one of the cause of claim rejection?

4. After the grace period over, if insurer wanted to resume the policy and he is medically fit, then would Insurance company offer the policy with the same premium, which insurer was paying?

5. on claim, Will Insurace company deduct the tax on the Sum Assured, payable to the insurer nominee?

6. If insurer, is not in India and death occurs with any reasons, Will Insurance company settle the claim to his Nominee or Legal Heirs or Legal representative?

7. Will Insurer get the signed copy of application and declaration, after the commencement of policy?

Thanks,
Kapil

Posted on October 1st, 2011

Reddy says:

Hi,

One of my uncle who is working in Shriram life insurance suggesting me to take Shriram Money Back Term Plan saying that its the best term insurance policy where the premium paid will be returned back after the maturity incase of the policy holder survives.

But unfortunatley i could not get much info about this policy in shiram website or in any of the forums

Can any one please throw some light on this policy terms and conditions

Regards
Babul Reddy

Posted on October 2nd, 2011

Aamay says:

Manish have you reviewed Aviva i-Life ?

Posted on October 3rd, 2011

Chirag says:

My experience was good with Aviva.
I found Aviva i-Life as one of the best Term plans in India currently..
Low premiums and also a decent claim settlement ratio (from Aviva India).

Posted on October 3rd, 2011

Chirag says:

True Manish putting the right information is one of the most important aspect. Company can reject the claims if you put wrong information.
Nice article indeed!

Posted on October 3rd, 2011

Kapil says:

Hi Chirag,

Can you quote some instances, where you find Aviva good in terms of settlement of the death claims?

This request is just to get some more idea on Aviva,
so that i can go with it, without any doubts in my mind

Thanks,
Kapil

Posted on October 3rd, 2011

Kapil says:

Hi Experts,

I am trying to opt between Two insurance terms plans –
Kotak e-term / e-preferred term
Aviva i-Life

Both looks good to me, but now trying to list down the merits and demerits between the two.

Aviva i-Life: doesn’t require any medicals upto age of 35 and 50 Lakh term insurance.

So is it advisable to go without medical examination?
How can a company issue a policy without medicals and just based on your declarations? Its tough to digest.

Kotak e-term: Requires medical examination
Kotak e-preferred term: Doesn’t require medical, but you need to pay additional money (step up options)

Both companies says, they cover 360 degree death, apart from suicide with in one year of policy.

Death by any means, would get covered. Absolutely no exceptions to it.

Any one has any personal experience or opinion on this evaluation?

thanks,
Kapil

Posted on October 3rd, 2011

Manish Chauhan says:

Kapil

No medical below 50 lacs or 35 yrs is ok . They rely on your declarations . If you do not make any wrong declarations, then there is no issue . Aviva is a good option .

Manish

Posted on October 4th, 2011

Kapil says:

Manish,

Aviva i-Life term plan, covers the 360 degree of death (I got to know this from product specialist from Aviva) except the suicide commit with in one yr of taking policy.

I also checked the offline option from Aviva, the Branch head told me “if you are involved in any of the illegal activities and death occurs”, then this type of death is not covered.

So My doubt is on the discrepency between offline and online term plan.

According to me “illegal” is a very broad term.

Driving while consuming alcohol is also illegal
6 people Travelling in a tourist taxi with 4+1 limit, is also illegal
Jumping traffic signal is also illegal.

So if death occurs, in the course of above illegal activities, then Aviva might reject the claim.

Please help me to clarify on my doubts.

Thanks,
Kapil

Posted on October 4th, 2011

Manish Chauhan says:

Aamay

Aviva is one of the best choices at the moment .. you can go for it

Manish

Posted on October 4th, 2011

Manish Chauhan says:

Kapil

definately .. being responsible is important in Insurance .. you cant do something which was morally or lawfully incorrect and then expect insurance companies to pay .. The death shoulds happen in normal circumstances without you being involved into it unmorally or unethically ..

Manish

Posted on October 4th, 2011

Manish Chauhan says:

Reddy

Just ignore themm … buy MF

Manish

Posted on October 4th, 2011

Manish Chauhan says:

Ask this on forum : http://www.jagoinvestor.com/forum/

Posted on October 4th, 2011

sravi says:

Hi Manish..
I am glad to say that my husband has taken icici iprotect last week.The process went very smooth. For me, i wanted the same but now the plan was changed by icici and the premium also increased in new icici icare. So, as another option i am looking for AVIVA iLIfe. I am looking for 50L cover. Below are the premium rates.

AVIVA i life–3800 rs
Kotak E preferred–4600 rs
ICICI icare–6600 rs

Can you please give your inputs on this new cheapest term plan from AVIVA.
Can you also suggest me which is best among AVIVA/KOTAK . Thanks.

Posted on October 7th, 2011

Nagesh says:

Hi Manish,

I’m planning to buy Kotak preferred term plan (offline) for 50L, premium is 7335 for 30 years and i can extend this policy till the age 70, is it good to buy? whats your suggestion?

Thanks,
Nag.

Posted on October 7th, 2011

Manish Chauhan says:

Nagesh

Yes its a good choice .. make sure you give all the information correctly

Manish

Posted on October 8th, 2011

Manish Chauhan says:

Sravi

You can go for Aviva and Kotak for 50% : 50%

Manish

Posted on October 8th, 2011

shah jolly says:

i want to one term plan but i donot know how much primum pay and how much year nothing know about policy

i want to take jeevan anand but wwhich is better between two. ple. sugges me and send me chart

Posted on October 8th, 2011

Manish Chauhan says:

Shah

You should call an agent and enquire

Manish

Posted on October 10th, 2011

Siba says:

Can you update it with the new plans in place (e.g. IndiaFirst anytime plan)? It’s very useful article so constant updation or as products launch will be really appreciated.

Thanks
siba

Posted on October 10th, 2011

Kapil says:

Deepak,

Very recently Bharti AXA has launched triple benefit Critical Illness Insurance.
You can consider it.

Kapil

Posted on October 10th, 2011

Davinder says:

Hi Manish,

I saw some of your comments above, thanks for providing such a good information about insurance.
I am new to insurance thing, i have a question about term plans. let’s say if i bought 2 policies 50 lakh each. At the time to settlement, will my representative get only 50 lakh paid by both companies mutually, or do they get 1 carore?

Posted on October 11th, 2011

Dilpreet Singh Bagga says:

Dear Davinder, in case of eventuality, your nominee will get 100 Lacs from both the companies.

Regards,

DP

Posted on October 11th, 2011

Dilpreet Singh Bagga says:

Don’t take my reply otherwise, i meant 50 lac each from both the companies… in total 100 Lacs

Posted on October 11th, 2011

Dilpreet Singh Bagga says:

Dear Shah, they are two different policies. I would suggest you have to understand the products separately and then take an informed decision.

Regards,

DP

Posted on October 11th, 2011

Dilpreet Singh Bagga says:

Dear Nagesh, just a word of caution, along with basic cover if you are planning to buy riders as well, kindly go through the riders properly before buying.

Regards,

DP

Posted on October 11th, 2011

Sanjay says:

Hello,

I’m 21 years old and i’m planning to buy a Lic Insurance Policy for myself.

I read an article on Online Insurance policies yesterday and i got interested. Can you suggest whether online policies are safer and also please advice on the best policies which i can choose from. (I’m looking for a big cover amount and return after sometime()

Thank you
Sanjay

Posted on October 11th, 2011

Manish Chauhan says:

Sanjay

Term plans dont give any returns and thats the reason they have cheaper premiums because they only provide risk cover , thats all

Manish

Posted on October 14th, 2011

Abdul says:

Hi,

I want to take a 50L term insurance policy for my mother and i am considering premium return at the end of the policy tenure.Her age is 59 so which policy would be better ? can i get IT deductions for these paid premiums for my mother.

Thanks.

Posted on October 15th, 2011

Bhaskar says:

Hi Manish,

ICICI launched new online insurance product ‘ICARE’ replacing ‘IPROTECT’. The premium has increased and Max SA has been brought down to 1.5 Crore. Do you have inferences ? Please advise. Agent says no change in T&C, only premium increased slightly…awaiting your response… Thanks as always !!

Posted on October 16th, 2011

Manish Chauhan says:

Bhaskar

I did a review recently : http://www.jagoinvestor.com/2011/10/icici-care-review-online-term-plan.html

Posted on October 16th, 2011

Sandeep Aparajit says:

Perfect article! It’s very good to understand the details of the term insurance. Thanks for this great article.

Posted on October 17th, 2011

Manish Chauhan says:

Sandeep

Good to see that you benefitted from this article. Keep it up

Posted on October 17th, 2011

Sweraj says:

Dear Manish,

Im 30 & ready to save 30k per month. I want to save in terms of 3 categories..viz.Insurance, Investment & short term saving which can get be flowing cash from time to time. What are the best options you can suggest?

Posted on October 17th, 2011

Manish Chauhan says:

Sweraj

You should first look at a term plan and then building an emergency funds .. which will be complete in next 6 months itself, there after look at investing from long term through mutual funds

Manish

Posted on October 17th, 2011

Atul Gosain says:

Thats a good advice. So, if taking Critical Illness not recommended as Dhawal said and Permanent Disability should be taken as a separate product, then it seems like taking just a death benefit without any riders is prudent. Then the parameter to choose may just be cost and claim ratio. That means Kotak e-preferred is fine to go with since claim ratio is good and cost is down. Is it a fair assessment ?

Posted on October 17th, 2011

Manish Chauhan says:

Atul

Yea .. i think thats a good judgement

Manish

Posted on October 18th, 2011

Kabya Bhattacharyya says:

Hi, this is my first comment in this forum. I checked with the ICICI Prudential relationship manager and he advised me to go in for offline term insurance as online term insurance does not require medical checkup and in the event of any unfortunate incident if we claim the insurance amount then insurance company can reject the claim on grounds of medical reason. How true is this.

Regards,
Kabya

Posted on October 18th, 2011

Manish Chauhan says:

Kabya

please dont mention this relationship manager name publicly , else he will loose his job .. He is not clear on how the claim settlement works and what is underwriting norms and procedures .

Manish

Posted on October 18th, 2011

Neeraj says:

Hi Manish

I am Neeraj and I am 36 years old. I am earning 11 lakhs per annum. My medical condition is that I am diabetic and I am taking medicine just to control it and my father had gone under bypass surgery at age of 55 and he is also diabetic.

I applied for Term plan of 50 lakhs from birla sun life last year and I declare them each and every fact, said above and medical test was done on me, but later on, I received a letter from birla sun life that my application was rejected. Why so. No such specific reason was given by them.

I want term plan for 50 lakhs to 1 crore, please suggest me
1) which company I should consider and
2) can a company reject the application, instead of raising the premium. Is it wrong to declare your medical conditions.
3) Can anybody suggest premium for person with conditions like me for best companies.
4) Which other rider I should consider.
5) Do I am eligible for Term Plan?

Posted on October 18th, 2011

Ganesh says:

Hi,

I dont have term insurance or mediclaim.

I wish to go in for both of them.

I require all the following to be covered by either of them
AR, CI, DR, WP

I prefer online plan

Dont mind medical checkup by the insurance company, as I want my records clean and clear.

Which one or combination is suggested for people like me….

Please suggest.

Rgds,

Posted on October 18th, 2011

Pradeep says:

Hi, I have bought ICICI Pru iCare SA of 50L + Accident Rider of 50L for an annual premium of Rs 12905. And also bought Aviva i Life SA of 50 L for an annual premium of Rs 5853. Both the policies were bought on Saturday 15-Oct-2011. I have uploaded all the relevant documents thru their website link.
Note: I got call from ICICI CSR on monday i.e 17-Oct-2011 for relevant information verification and the policy is now in force.
However I am yet to receive a call from Aviva. Lets wait and watch when Aviva CSR will give me a call.

Posted on October 19th, 2011

sunil Date says:

In a online term policy, the local sales office , the Sales manager, the agent etc do not get any commission or credit, so they will obviously discourage you.

If the Life insured has given all correct / true answers to the data sought in the on-line term policy there is no reason on earth why the insurance company should reject the claim. Pl note “….all correct / true answers….”

Even in off-line policies not all individuals have to under go medical test. Most of the companies have a age / Sum assured grid based on which medical tests are prescribed. Also based on the data provided in the proposal the under writers may ask for spl medical test.

Posted on October 19th, 2011

Deepak says:

Manish,

Wonderful site. I am quite a knowledgeable person now.

My question is:

1. If I smoke rarely, lets say 3 – 4 cigarettes a week; I can see from your answers that, I should declare myself a smoker. If I don’t disclose then in the event of a claim, it may not be honoured.
But considering such a low frequency of smoking, how will the company know if I ever smoked? In a highly polluted city like Delhi, we are anyways exposed to daily pollution and what not.

2. Same case as above with for drinking. 3 – 4 pegs (60 ml) a week.

3. I am inclined towards LIC, Jeevan Amulya, but considering their high premium I may consider ICICI pru, my agent is considering AVIVA. Whats your opinion?

I am 33 years, Male, SA: 50 Lacs, Annual Income: 12 Lacs.

Please throw some light.

Deepak

Posted on October 20th, 2011

Deepak says:

Just to add on; I am not inclined towards online cheap plans because of the obvious fear of hassles.

Posted on October 20th, 2011

Manish Chauhan says:

Deepak

The frequency you have mentioned will put you in the category of SMOKER AND DRINKER , so dont fight this part .. yes you do it less frequently and thats why your “extra” premium will not be as high as it is for someone who is more regular , but stopping thinking that you will get normal premiums . Even if you start an insurance company tomm,, you will not give a policy at same price to yourself if you take into consideration “business” purely ..

Choose any option but make sure you declare the facts as it is , you can choose AViva , its a good option , but why is your agent inclined towards it , is it because you need to buy it from him or has he studied the features of AVIVA ? tell him that you are not going to buy from him , then what is his suggestion ..

Manish

Posted on October 23rd, 2011

Manish Chauhan says:

Pradeep

Give it more time .. you will get a call

Manish

Posted on October 23rd, 2011

Manish Chauhan says:

Ganesh

its not that easy to get a plan with all riders .. why do you want all ? Note that you need to pay more for those riders ..

Go with aviva or kotak

Manish

Posted on October 23rd, 2011

Manish Chauhan says:

Neeraj

1. There are many options .. look at Kotak , Aviva or metlife .. or LIC

2. NO , they should not , mail them back saying that you are complaining to IRDA on this .

3. That can happen from company itself

4. Which ever you feel you want in your life ,how do we decide that ?

5. Yes, but there will be extra premiums

Manish

Posted on October 23rd, 2011

Ajay says:

Manish,

I am planning to buy a term plan. My mother is diabetic so obviously i have to declare her medical condition in the proposal form. However, my son was diagnosed with malignant tumor for which he received treatment (now completed) and is now doing well. Do i also need to declare my son’s medical history?

Posted on October 28th, 2011

PANKAJ says:

manish ,
I am 34 years old and i want term plan 0f 50 lacs for 25 years .
four and half years ago i have some problem in my head and stomach
for this reasom the doctor advice me to go for CT SCAN and ENDOSCOPY
but report for CTSCAN did not any thing serious ANd in ENDOSCOPY report reveald MILD ULSER , i took medicine and now i am OK and I have not taken medicine for these for last 4 years and i am fully ok now and i have no problem now so my question are
1. i need to disclose these for term policy ?
2 . If i dont dislose these how the company will come to know my personal medical history
3.
IF I discolse these things can company reject my application ?
or increase my premium and if so then how much ?
4 . if my health is ok now then how the company will come to know my medical history

waiting for reply

Posted on October 28th, 2011

PANKAJ says:

manish ,
I am 34 years old and i want term plan 0f 50 lacs for 25 years .
four and half years ago i have some problem in my head and stomach
for this reasom the doctor advice me to go for CT SCAN and ENDOSCOPY
but report for CTSCAN did not any thing serious ANd in ENDOSCOPY report reveald MILD ULSER , i took medicine and now i am OK and I have not taken medicine for these for last 4 years and i am fully ok now and i have no problem now so my question are
1. i need to disclose these for term policy ?
2 . If i dont dislose these how the company will come to know my personal medical history
3.
IF I discolse these things can company reject my application ?
or increase my premium and if so then how much ?
4 . if my health is ok now then how the company will come to know my medical history

waiting for reply

Posted on October 28th, 2011

Sam says:

Dear Hemant,

Really Meticulous! Eye opening! Leads to break generalisations. Where did you get these details?

Thanks for your contribution!

Posted on October 28th, 2011

ram says:

Go with lic

Posted on October 28th, 2011

Sunil Date says:

@Ajay. Please provide all details as asked for. Generally for one’s insurance, the form would need details of parents and siblings and not children.

Posted on October 29th, 2011

Dilpreet Singh Bagga says:

Dear Ajay, just share, the form do ask information for children whether they are in good health or not apart from parents and siblings.

Please share the actual facts so that there should not be any problem at the time of claim and let the company take a call at proposal stage only.

Posted on November 1st, 2011

Dilpreet Singh Bagga says:

Dear Pankaj, infact for any policy you have not share your medical history with the company since it has direct effect. Moreover, the companies do take due care for term plan since risk is quite high.

1. Yes, you have to disclose.
2. Immediately company may or might not come across your medical history but if at the time of eventuality the insurer comes to know this, claim CAN BE REJECTED on the basis of NON-DISCLOSURE OF FACTS.
3. The insurer has a right to ask for loading (extra premium) or might reject the application.
4. As per point no. 2.

Regards,

DP

Posted on November 1st, 2011

Rohit says:

Hi,
My question if around smoking. I used to smoke 5 yrs back. Do I need to declare that while purchasing term insurnace plan ? Can a medical test reveal that I used to smoke 5 yrs back ?

thanks

Rohit

Posted on November 1st, 2011

sunil Date says:

@Dilpreet Singh Bagga : R u sure about asking for childrens health history ? which company asks for it ? If the Life insured is child then it is true but for ones own insurance ? Mr Ajay is talking about his own insurance and not of his children.

Posted on November 1st, 2011

Dilpreet Singh Bagga says:

Dear Mr. Sunil, all companies ask for your family history including your parents, spouse, Brother/Sister(s), and children. Are family members alive and state of health. If not, cause of Death.

Children form part of your family history.

Regards,

DP

Posted on November 1st, 2011

Manish Chauhan says:

Rohit

yes , it can reveal that and you should be mentioning that , what if that smoking which you did before 5 yrs is still inside you and creating a CANCER inside you, which you will come to know after 2 yrs ? You never know what is the impact of what you did before some years .. so from company point of view its important for them to know your past history

Manish

Posted on November 5th, 2011

Manisha says:

Hi,

I have applied for an LIC endowment policy 15 months back. In the application form I filled up only the nominee name, DOB, and the communication address, rest of the details are been filled up by the agent only while I was away for some mins to prepare the photocopies of the document. And when I return the agent asked my height and weight only and filled the form and then he asked me to sign on the policy document. Then I signed it without reading the application as I thought that the rest of the things could be no important to verify. This is a very stupid of me.

Now I am just afraid of the policy about whether there can be any wrong information been filled up in the form, or something else that could be a valid point for the rejection later if there is any unpleasant event.

So could you please tell whether is it possible now to review the application form from the branch office. Or it is better to ignore this policy forever by stop paying for this policy and go for a new policy again.

Please tell me how to handle this situation.

Thanks

Posted on November 7th, 2011

sunil Date says:

@ Manisha 1 When you have signed the form it means that u r responsible for all the information filled up in it.
2 It is IRDA rule that the copy of the application should be provided to the client along with the policy document. I don’t know whether LIC has been exempted from this rule; perhaps one of the LIC agents monitoring this site / thread could answer.
3 I suggest you ask your agent to provide the copy and if he does not respond, then go to the branch where the policy is logged and meet a responsible person in the operations department and explain your need to get a copy or atleatst allow you to see it.
4 If there is any incorrect info, discuss it with the officer concerned and submit a letter to LIC (with an acknowledgement for you).
5 As per IRDA rule section 45, a policy which has been in force for two years, cannot be disputed for minor inaccuracies.
6 Please remember to fill up all forms yourself, or read it before signing and at all times insist on a copy for your records. This is a good administrative practice and is necessary in the current times, when the likely hood of disputes are increasing.
A
7 The issue of suitability of a short term endowment plan, being a part of your insurance portfolio, is not addressed here and is better consulted with a qualified planner in your city.
All the best.

Posted on November 7th, 2011

Manisha says:

Thanks Sunil for your valuable response.

Hope some agent will confirm about the IRDA rule.

This week I will try to go to branch.

But I have one concern here that as I transferred this policy from one branch to another branch due to my transfer. So where can I able to find the policy document, whether it is at the old branch (where agent applied) or at the new branch. My policy is already transferred one month back.

Posted on November 7th, 2011

sunil Date says:

@manisha LIC has done a lot of computerisation but you will need a bit of persistence. Coming down to basic human behavior, the Old Agent / old Sales manager / Old Branch has benefited from the salke of your policy; therefore the new branch may not be too keen to assist you; so the persistence. If you do not get assistance from the new branch, write a (registered) letter to the old branch and ask them for a copy of your application; you will get the address from the LIC branch near you or on the LIC web-site.
ATB

Posted on November 7th, 2011

Ravi says:

Manish/Dhawal,

I have an offline term policy of MetLife for 70L SA (I was underinsured at this figure) at a premium of ~25k per annum for the past 3 year. Now I am planning to move to online Aviva iLife for 2.25Cr SA which will also cost around ~25k per annum keeping my capital outflow on insurance premium almost same. My father aged around 67 is suffering from mild BP and Cholestrol issue. From your experience can you please let me know how much (approx, I know you cant give exact) my Aviva iLife premium will be loaded because of my father health issue.

Your early respone will help me in closing this insurance policy soon.

And special thanks to Manish & Dhawal in keeping this site alive. Good show guys!

Thanks
Ravi

Posted on November 8th, 2011

Manish Chauhan says:

Ravi

Why do you want to take all insurance from same company , I would recommend splitting it between AVIVA and KOTAK . Take 1.25 and 1 from these companies ,. Also the loading figure is best known to these companies , but you can expect it in range of 20%-40% ,.

Manish

Posted on November 8th, 2011

Dhawal Sharma says:

@Ravi – Thanks a lot for your kind words..Major credit goes to Manish…

As for your query, let me add that there is a great misconception that HUGE LOADING can be levid because of family history. Family history is a tool for the company to judge your “LIKELY” medical health in the future, whereas premium will be based on your “CURRENT” medical and physical being. Hardly 1% of my clients has been charged LOADING because of FAMILY HISTORY. According to my understanding, you have 0.1% chance of facing LOADING in your case, if your MEDICALs comes out to be totally normal and fine..

Next thing i would like to ask is, are you planning to buy this 2.25 crore cover IN ADDITION to the existing term plan from METLIFE?? You might face strict FINANCIAL UNDERWRITING (all the current and past financial years ITRs, FORM 16, bank statements, and financial undertakings as to your assets and liabilities etc.).

Further, if you add this latest policy to your existing one, my advice would be to discontinue the offline version after 1 to 2 years of your latest policy. In that way, you will able to plug enough outflow..

Ideally i dont suggest ONLINE VERSION to my clients but if suits you, please go ahead, without any fear of LOADING or something. You have very minimum chances of such happening.

Ps: The only scenario i can foresee for your LOADING is because ONLINE premium as such is very low, company might not let go of any chance, due to any reason (Be it family history in your case), to jack up the premium

Dhawal Sharma
URJA WEALTH CREATORS

Posted on November 8th, 2011

sheva says:

Hi,

I’m 31 years old, and am looking for a term insurance policy (pure life cover, with accident n disability riders only). any thoughts on some good options available – in terms of the vendors’ claim settlement track record, competitive premium rates and customer service?

Thanks,

Posted on November 8th, 2011

Ashraf says:

Thank you for a neat summary. I surely could learn a great deal from this post. I had made post on my blog as summary for term insurance, http://www.just-paisa.com/2011/10/term-insurnace-summary.html. I would look to seniors such as yourself to help me with enhancing my blog by your constructive comments.

I look forward to hearing from you

Regards
Ashraf

Posted on November 9th, 2011

Siddharth says:

Hi,

Basis the above comments, I was trying buy Kotak E–preferred term plan on Kotak website. I reside in Gurgaon. The website mentions that Einsurance is not available in Gurgaon. Can anyone confirm this?

Posted on November 10th, 2011

Nishant Shah says:

Dear Mr. Manish,
Thank you very much for the information provided above. I m bit confused to choose kotak or LIC, want to opt for 50 Lacs term insurance, kindly suggest so as to clear the confusion. Regards, Nishant

Posted on November 10th, 2011

Manish Chauhan says:

Nishant

What is the confusion but ? LIC and Kotak , you can go with anyone of them depending on how much you trust them , if you are ok with Kotak as a company , then its fine ,.

Manish

Posted on November 10th, 2011

Manish Chauhan says:

Siddharth

you can look at the list of cities on their website for that plan , may be gurgaon is not included, Delhi might be there :)

Manish

Posted on November 10th, 2011

Manish Chauhan says:

Ashraf

You have very nicely put up term insurance and its summary , for a common man , it would be the best way to tell him about it .

Manish

Posted on November 10th, 2011

Manish Chauhan says:

Sheva

In all parameters its not an easy task to find an option , but AVIVA and Kotak will come close . Enquire from them

Manish

Posted on November 10th, 2011

Manish Chauhan says:

Dhawal

Even i have that misconception , thanks to you , now its resolved

Manish

Posted on November 10th, 2011

Ashraf says:

Manish,

Thank you for your appreciation. Since I am an LIC agent myself, I kinda have been practicing saying things in simplest way possible. Glad you liked the post.

Regards
Ashraf

Posted on November 10th, 2011

Vish says:

Suresh, Your assumption is that God forbidden something happens to the person insured then the Agent will take care/help.. But what is the guarantee that the Agent will be there(alive) when this incidence happens…..
I think this assupmtion should not be the basis of your decision..
Open for comments..

Posted on November 11th, 2011

Santosh says:

hi ,

Can anyone one suggest about taking term insurance with return premium policy.

Santosh

Posted on November 14th, 2011

Manish Chauhan says:

Santosh

There are policies like that , just search on net , you will get it . But they are not recommended

Posted on November 14th, 2011

Ashraf says:

You can try out ING TERM LIFE PLUS but I would never recommend it for anyone.

Posted on November 14th, 2011

heman artist says:

Dear manish,
Your article of comparision between different insurance companies for term plan is really awesome,i have couple of things to ask you.

First of all let me brief you with my family history so that it will be easy for you to answer.My name is Heman and my age is 33 my father died in the year 1986 when his age was 36 because of heart attack. just a few month back i.e in the month of may-11 i was just accompanying one of my friend with his family cardiologiest and i just for the sake if it did my E.C.G. done there and which was normal as per him but then too he asked me to gofor a full blood test like LIPID,SUGAR and all get it done so i did it and i found out that my cholostrole was very high so finally after all sorts of other test like STRESS TEST AND AND ANGIOGRAPHY my cardiologiest found that i have five blockages in my five different arteries and suggested me to gothrough the by-pass surgery with a very good doctor(DR.BHATTACHARYA) with a special type of (INTERNAL MAMMORY VEINS) method and i did the same and they operated me on 27 th june 2011 and i am very much fine now and as per my doctor now they say the kind of by-pass method which they had used i will be fine for another atleast40 years and.

After the surgery my search begun for term insurance and i found out lot of options but my basic question to you is that will i be able to get a term plan for any of the company if i provide them all the true information and will not hide a single thing as i am married and got a kid of 4 year old ,i don’t drink and i don’t smoke.

My doctors said that in your case it was pure genetic and you can’t do much about it but after my surgery they say if you take care of your diet,medicines and excerise regularly then you can leave as a normal indian male life epectancy ration up to 85 years and which i do religiousely.

So my question to you is do i fit the crieteria i mean will i be able to get a term insurance with additional loading in premium?

Regards,
Heman.

Posted on November 15th, 2011

Manish Chauhan says:

Heman

Good to know that you took care of your medical issue (Dr bhattacharya also opered by father in law 1 yr back and yea , he is really good one) :)

So coming to your question, sadly you will face issues in taking the term plan , All things said by doctor like “You will be fine” , “You will live just like a normal person and live till 85″ is all fine and might be 100% true . But from business point of view for a insurance company , you are a dangerous customer . so there are good chances that some companies might deny you a term plan , and some companies might load your premiums with a big amount ,but even with loading your premiums should be maximum 100% more , which will still be under 20k per year for a cover like 1 crores from companies like Aviva or Kotak ..

So give it a try atleast . check the premiums at their websites . also let me bring an expert on this from Kotak . He will give you the better and to the point answer .

Manish

Posted on November 15th, 2011

Dhawal Sharma says:

@Heman/Manish – Sad to know about your father’s demise, that too at a very young age..

I think that incidence itself is THE MOST crucial motivator for Heman and everybody on this blog to take up TERM PLAN as first thing of their financial planning wishlist.

Now coming to Heman’s case, the specific query..Yes, you do fit the criteria to take up TERM PLAN from any company, be it from our KOTAK or AVIVA or LIC or any company of your choice..

..But the two hurdles you will encounter are:
1) FAMILY HISTORY: You have to declare that your father died an UNNATURAL DEATH, due to HEART ATTACK and that too at a very young age of 36. This will tinker bells at the insurance company’s underwriter’s desk. Unnatural death of any of the parent is a serious concern, more so if its due to some CHRONIC ILLNESS in nature – like in your case – HEART DISEASE.

2) YOUR OWN MEDICAL HISTORY: As and when you declare that you yourself underwent SURGICAL PROCEDURE for ARTERIAL BLOCKAGE this year, and the details of your surgery to the company, those tinker bells at the underwriter’s desk will start sounding as HUGE GONGs..

Let me share you an example of one my client just last week itself. That case was, more or less the same..So the first thing our KOTAK did was to flatly refuse him CIB (Critical Illness Benefit) rider..Secondly, company issued him a CONSENT LETTER for LOADING upto 75% of his proposed premium..

I believe you too will face the same thing (i might prove wrong too)..But as a responsible husband and father, you should go ahead with your plan of taking TERM INSURANCE. My only request would be, no matter whatever your own medical history or family history is, dont hide anything in the proposal form and let the ball in insurance company’s court first, and then go with the flow..

Hope this information might of some help..

Dhawal Sharma
URJA WEALTH CREATORS

Posted on November 15th, 2011

heman artist says:

Dear Dhawal,
thanks for the prompt reply and i am very much releived now after your answer,as you mentioned that KOTAK people has refused for CIB(critical illness benifit) rider does that mean that if anything happens to me realted to heart issue they won’t pass the claim to the nominee, and have you heard of any other similar sort of case where they have approved the proposal.

Heman.

Posted on November 16th, 2011

Vimal Ostwal says:

hi,
i am looking for term plan of 50L .
which co is best for me
my age is currently 25 years.

Posted on November 17th, 2011

Pradeep says:

Finally I got my policy from Aviva today.

Posted on November 17th, 2011

Dilpreet Singh Bagga says:

Dear Heman, i would like to take an opportunity to answer this.

CIB Rider as the name suggests is an additional coverage one takes in case of critical illnesses like:

• Heart Attack (MI)
• Cancer
• Stroke
• Coronary artery by-pass graft surgery (CABG)
• Kidney failure
• Major organ transplants
• Paralysis
• Loss of limbs
• Aorta surgery
• Major burns
• Heart valve surgery
• Blindness

Denial of CIB rider means no extra sum assured will be paid in case of demise of insured due to the above mentioned critical illnesses. If the insurance company chooses to insure you after knowing your medical history, they cannot reject claim to nominee. Moreover, most of the time, rejection of claim only happens when there is a non-disclosure of fact.

As rightly mentioned by Dhawal, kindly mention all facts to the insurance company and then they can take a call.

Regards,

DP

Posted on November 17th, 2011

Dilpreet Singh Bagga says:

Dear Vimal,

you can go through the link provided

http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comments

Kindly also go through the claim settlement ratio also and take an informed decision.

Regards,

DP

Posted on November 17th, 2011

Dilpreet Singh Bagga says:

Pradeep: congrats..

Posted on November 17th, 2011

Sunil says:

Hi,
I applied for ICICI prudential i-term plan for 1 cr in Dec, 2010. The proposal was postponed for 6 months after TMT findings (Medical). I applied afresh in August, 2011 (after 8 months) for 50 lacs but the policy was again postponed even without conducting the medical tests and on the basis of the previous medical reports.

ICICI is not willing to reconsider the case for fresh medical tests in spite of the problem ratification. Please suggest how to take up the case now.

Posted on November 18th, 2011

Manish Chauhan says:

Sunil

Why dont you go with Aviva or Kotak or metlife

Manish

Posted on November 18th, 2011

sunil Date says:

@ sunil – Insurance is a matter of solicitation. Unlike under MRTP, where a co cannot refuse to sell their product to you, in case of Life insurance a co has the right to decline a case & that too w/o providing any reason. If ICICI is not interested in accepting your case, try with other companies. But remember you will have to mention that your case was deferd by ICICI. Pl do not hide this material fact and it is a question they will ask. There is a hindi quote “Tu nahi to aur sahi”

Posted on November 18th, 2011

Sunil says:

Thanks for the reply. :)

That’s OK..“Tu nahi to aur sahi”..but is it required to mention that ICICI has deferred my case on medical grounds until asked for by the insurance companies in their questionnaire.

Also, few companies offering on-line plans does not have sufficient lines (rows) to mention the details of the existing policies. What should be the best practice for us in these cases. Should we write the mail regarding the information we can;t mention over their portal.

Posted on November 18th, 2011

Vishal says:

Hi Manish

Request your advice I am intending to take Term Insurance plan for Rs 80 Lacs for a tenor of 20 years (current age 38 years)
I have zeroed the following :-
1. ICICI Pru I care No Medical test new launch
2. Aviva i Life
Please suggest opting for Term Insurance without Medical test is beneficial I will disclose all material facts
In terms of of premium there is Rs 6 000 difference p.a premium.
Also wants to take online LIC at the time launch for Rs 20 Lacs

Regards
Vishal

Posted on November 19th, 2011

sunil Date says:

1 If they ask please reply honestly & correctly. So if they don’t, need not provide the deferment info; but if they have a general question like ” any other info which you think is important” the please mention it. It is in your intrest.
2 if sufficient lines are not there, in the last line mention no space for addl info.

Posted on November 19th, 2011

Dhawal Sharma says:

@MANISH,

Take a look at the newest entered in the ONLINE TERM PLAN field

http://www.policywala.com/content.php/356-HDFC-Life-launches-online-term-plan-Click-2-Protect?s=2f816e81cf948ce9c5a47a0338ef8d28

Dhawal Sharma

Posted on November 19th, 2011

Sankha says:

Statistics and number can surely mislead sometimes. Just as far the numbers go, like to mention that, in the claim settlement ratio calculation, pending cases should be excluded ( as its results are not known). But here: caliam settlement= claims paid/ total claims ( utterly wrong). Excluding pending cases, claim paid ratio of LIC will be 98+. But most imp, it will move HDFC, Kotak to 95% and ICICI to near 97%.

Posted on November 19th, 2011

Manish Chauhan says:

Sankha

Thanks for the info .. its a valuable information :)

Manish

Posted on November 20th, 2011

Manish Chauhan says:

Dhawal

Thanks for the Update .. looks like soon all the companies will come up with their term plans ..

Manish

Posted on November 20th, 2011

Manish Chauhan says:

Vishal

You can go with AVIVA or HDFC LIfe

Posted on November 20th, 2011

Mhamirma says:

Hi Manish,
Excellent and very useful article. I did not get a chance to go thru all 800+ comments so asking you the question directly:

Question: How important are riders in a term insurance? If one has health policy, are riders still needed? I wanted to go for LIC Amulya Jeevan but the lack of riders are holding me back.

Expert comments welcome.

Posted on November 22nd, 2011

PANKAJ says:

manish ,
I am 34 years old and i want term plan 0f 50 lacs for 25 years .
four and half years ago i have some problem in my head and stomach
for this reasom the doctor advice me to go for CT SCAN and ENDOSCOPY
but report for CTSCAN did not any thing serious ANd in ENDOSCOPY report reveald MILD ULSER , i took medicine and now i am OK and I have not taken medicine for these for last 4 years and i am fully ok now and i have no problem now so my question are
1. i need to disclose these for term policy ?
2 . If i dont dislose these how the company will come to know my personal medical history
3.
IF I discolse these things can company reject my application ?
or increase my premium and if so then how much ?
4 . if my health is ok now then how the company will come to know my medical history

waiting for repl

Posted on November 22nd, 2011

PANKAJ says:

manish
I am 34 years old and i want term plan 0f 50 lacs for 25 years .
four and half years ago i have some problem in my head and stomach
for this reasom the doctor advice me to go for CT SCAN and ENDOSCOPY
but report for CTSCAN did not any thing serious ANd in ENDOSCOPY report reveald MILD ULSER , i took medicine and now i am OK and I have not taken medicine for these for last 4 years and i am fully ok now and i have no problem now so my question are
1. i need to disclose these for term policy ?
2 . If i dont dislose these how the company will come to know my personal medical history
3.
IF I discolse these things can company reject my application ?
or increase my premium and if so then how much ?
4 . if my health is ok now then how the company will come to know my medical history

waiting for reply

Posted on November 22nd, 2011

Adiga says:

Hi Manish,

What is the percentage of Commission an LIC Agent gets in Jeevan Amulya Term Plan

Regards
Adiga

Posted on November 22nd, 2011

Dilpreet Singh Bagga says:

Dear Pankaj, I would like to answer your query.

Your previous medical history has a direct effect on your life insurance policy. The life insurance policy works on principle of utmost good faith and will rely on details provided by you. Though, one has to undergo medical tests before taking a life insurance policy but they don’t do endoscopy so question of knowing your ulcer will not arise. My answers to your queries are as follow:

1. Yes, you have to disclose.
2. Immediately company may or might not come across your medical history but if at the time of eventuality the insurer comes to know this, claim CAN BE REJECTED on the basis of NON-DISCLOSURE OF FACTS.
3. The insurer has a right to ask for loading (extra premium) or might reject the application. The loading is totally an underwriting call and may differ from company to company.
4. Only at the time of eventuality, this will pose problem.

Regards,
DP

Posted on November 22nd, 2011

Sunil says:

thanks :)

Posted on November 22nd, 2011

sunil Date says:

@Pankaj : in additio to what Mr Dilpreet Singh Bagga has mentioned.
1 in the eventuality of a early claim companies do their own investigation.
2 Do you want a safety net which has holes in it and has weak strings ?
3 By suppressing facts you will not be fooling the insurance co, you will be fooling your family.

Posted on November 22nd, 2011

Sunil says:

Hi,
Please convey how the life insurance policy is treated in case of death of policy holder and the nominee both. Whether any other family members can claim the insurance amount then.

Posted on November 23rd, 2011

Manish Chauhan says:

Adiga

All term plans (LIC and Pvt) have 25% premium in first year ,7.5% in 2nd and 3rd and 5% thereafter

Manish

Posted on November 23rd, 2011

Manish Chauhan says:

Mhamirma

Riders has to be taken provided you feel the need of it, each rider has a different benefit and it purely depends on you that you want it or not , understand the riders and then go for it

Manish

Posted on November 23rd, 2011

Dilpreet Singh Bagga says:

Mr. Sunil Date: Moreover, even in the case of claim that too on medical (ulcer) grounds, needless to mention it is not natural death, the company will be doing a thorough investigation before settling claim.

Totally agreed with you that there is no point having a safety with holes and weak strings which will be of no use in case of eventuality.

Posted on November 23rd, 2011

Shirish says:

Steven,

Instead of spending that amount of Rs 762 on movies, you can invest it in some other financial tool; so that even if the claim is rejected in furure, your family could get this invested lump-sum amount.

Posted on November 24th, 2011

Praveen says:

Hi Manish

Do you have any info about a plan which is a combination of Health insurance and Term Plan ??

Thanks
– Praveen

Posted on November 25th, 2011

Vinay Shah says:

I am 27 year old non somoker/non drinker and i dont have any medical issues.

I need a term plan of 75 L sum assured, out of all the current term insurence policies in the market, which one according you should I opt for considering the various options available in the market.

Posted on November 26th, 2011

Shirish says:

If I buy 2 Term policies form 2 different companies, do my family get benefits from both the companies or there is any hitch / conflict?

Posted on November 27th, 2011

Dilpreet Singh Bagga says:

Dear Shirish, your family will get the benefit from both the companies without any hitch.

The only thing required is that you should share your insurance details with the insurer.

Regards,

DP

Posted on November 27th, 2011

Dilpreet Singh Bagga says:

Dear Vinay, you can look at Kotak, Aviva, or ICICI. All the three companies are having online products as well.

Regards,

DP

Posted on November 27th, 2011

dixit vijay says:

i am not sure why these companies ask for income proofs each time. someone may be a well to do person doing nothing but enjoying his parents properties and incomes. in such cases though he is having capacity to pay regular premiums but no income proofs then what options remain with him if he want only to go for term plan ?
as i think incometax department also not insist to invest from your incomes for 80 c, then why this is so ? another question why household ladies are kept outside the scope of term plans ? i think on the contrary they are very less prone to accidents since households.

Posted on November 28th, 2011

sunil Date says:

@dixit vijay 1 Income proof is necessary when one proposes for a high cover.
2 The IT return will be accepted as Income proof.
3 If one is not earning and also does not have sufficient investment income, why is insurance required ? Insurance is for protecting future income, i.e to take care of dependents if one is no more. In your hypothetical question the family can be provided for by the investment income.
4 You seem to be looking at insurance as a tax saving avenue only. It is not a appropriate way of thinking either about tax saving or insurance.
5 For H/W insurance, please refer 3 above. Insurance co do accept insurance of H/w but only for endowment (savings ) plan, that too with limitations corresponding to education level of H/w, corresponding insurance cover of husband, and number of years of marriage. These are WRT to moral hazard.

Posted on November 28th, 2011

anshuman says:

i am a 30yr old male, work in a PSU, am married n have a 2yr old son. i had LIC’s amulya jeewan policy for 25lacs to cover my working of 30yrs. but discontinued it this year as the premium was high n it was giving adition cover for accidental death.
I am looking for a policy which gives me critical illness benefit, disability benifit, accidental death benefit. Since all these come as riders in addition to natual Sum assured (BUT with a restriction that sum cannot be greater than 30% of SA), i am not able to zero in on a particular product. For example ICICI icare says that in case of accidental death additional sum equal to SA is given. but suppose god forbid one survives but is handicapped for the rest of his life, he receives nothing. In normal circumstances, at my age a person is most likely to think of covering accidental death/disability rather than natural death.I hope i am able to convey my point. looking fwd to suggestions.

Posted on November 28th, 2011

Ammalu says:

Hi Manish,
I would like to make some investments. Currently I have 2 LIC policies(Jeevan Saral 20 yers, premium= 8958 and Jeevan Surabhi(25 years, 15000 yearly premium)).
I want to invest 2000-4000 per month for a period of 10-12 years.Could you pls suggest me some good investment options?
Thanks in advance

Posted on November 28th, 2011

Siva Prasad says:

I have one term policy with ICICI prud. for 30 years for 10 Lakhs. I want to take another term policy with another company for 10 Lakhs.
Please advice me best insurance company.
I preferred Kotak, but have fear of claim settlement ratio.
So, Iam in dilemma between LIC and Kotak.
Request your suggestion

Posted on November 28th, 2011

Tarun says:

Hi,
I applied for online term plan with almost all insurance companies (ICICI, Aviva, Metlife, Aveon religare) and all postponed the case due to abnormalities in ECG. To verify and find the reasons for ECG changes, I undergone CAG (angiography), results of which came absolutely normal.
I reapplied for the term plan with Aviva after 06 months, and submitted the CAG reports with them. They, although, issued me the policy but with almost double loading. Since I was totally lost in hope without adequately covered after applying with several insurance companies, I accepted their modified terms.
My question is that :-
1. Will at any point it is going to affect my claims even if I have already disclosed all the details asked for and after their satisfaction/verification they have issues the policy.
2. Now applying for another insurance policy, I have to mention that my X-policy is with extra-premium due to xyz reasons. How it will be going to impact?
3. Was the decision to take a cover at modified rate be called a wise decision even if we are ascertain of normal health but since no companies was considering the case .

Regards

Tarun

Posted on November 28th, 2011

Manish Chauhan says:

Tarun

You should not be worried for the claim now , because you are paying loading because of the same reason . Note that your report is not NORMAL , just becuse report does not say directly that there is a problem , even HIGH LEVEL of something might mean a RISK for insurance companies .. All companies are not acceppting it clearly shows that there is something wrong with report . Ask AVIVA to give you the medical report copy now , they will send it to you .

Manish

Posted on November 29th, 2011

Manish Chauhan says:

Siva

You can go with Kotak or AVIVA .. there is no issue

Manish

Posted on November 29th, 2011

Tarun says:

thanks for the revert. They have already documented all the related reports in the comprehensive policy document. Will it be required then anyhow.

Regards

Posted on November 29th, 2011

Manish Chauhan says:

Ammalu

Go for SIP in HDFC Top 200 & DSPBR top 100

Manish

Posted on November 29th, 2011

Manish Chauhan says:

Anshuman

in that case you should be looking for pure accidental insurance policies .. go for ICICI lombard or Some PSU policy

Manish

Posted on November 29th, 2011

YogeshK says:

Hi,
can you please put the claim settlement ratios and other stuff (IRDA report) that you published for 2009-10 in the above article for various private companies & LIC for year 2010-11? On ICICI’s website I could see it to be 97% for 2010-11. Couldn’t verify about other co’s. Thanks.

Posted on November 29th, 2011

YogeshK says:

Hi,
can you please post the IRDA report for year 2010-11 if you have the data with you?
The similar one that you posted for year 2009-10 in the above article. It will help to analyse.

Posted on November 29th, 2011

Jayesh says:

Manish, in such a case is the company obliged to share the medical reports since you are bearing the cost.

Posted on November 29th, 2011

Manish Chauhan says:

Jayesh

Yes ,they should. a lot of them share when you ask for it

Manish

Posted on November 29th, 2011

Manish Chauhan says:

Yogesh

What data you need ? you can directly download it from their website

Manish

Posted on November 29th, 2011

Shirish says:

How is Birla Sunlife’s Protection Plus?
They have 5 riders inclusing premium waiver, for hospital expense, for surgical expenses, etc.

Posted on November 29th, 2011

Dilpreet Singh Bagga says:

Sunil Date: Spot on with you revert to Dixit Vijay.

Posted on November 30th, 2011

Manish Chauhan says:

Shirish

our forum is a better place to ask this question : http://www.jagoinvestor.com/forum/

Posted on November 30th, 2011

YogeshK says:

What I need was this:

http://www.business-standard.com/india/news/lic-scores-best-in-claims-settlement-during-2010-11/436579/

Posted on November 30th, 2011

Manish Chauhan says:

Yogesh

That might be combination of 1-2 data , but it will be from the IRDA website only . Can you check if 2011 data is there on IRDA website ?

Manish

Posted on November 30th, 2011

sunil Date says:

@DS Bagga Tks 4 ur appreciation.

Posted on November 30th, 2011

sunil Date says:

@anshuman In addition to Manish
1 It is better to take a standalone CI and accident benefit policy instead of as a rider. generally standalone policies have many more features than a rider.
2 CI is offered as a standalone policy by both Life and general insurance companies. I believe some GI companies have bundled Medical cover with CI and also with accidental medical.
3 Accident benefit policy : These are offered by general insurance co’s. A standalone policy will not only provide for death benefit but more importantly it will cover disability. Please note that complete disability is a worser situation as one is like a living dead person. This policy covers situations like temp / permanent and partial / total disability. These policies are available at an astonishingly low premium but have not been promoted by agents as their commission are linked to the premiums; a low premium means low commission and is not sufficient incentive to take the effort.

Posted on November 30th, 2011

anshuman says:

Thanku @ sunil for helping my cause…can u pls mention one or two good policies or companies offering such products.

Posted on November 30th, 2011

Mayur Birajdar says:

Hi,

Can someone help me by providing details for AVIVA and its new online term product i-Life. I am thinking of taking this product. Please suggest.

Posted on November 30th, 2011

Ram says:

Hi,

I am 30.My friend advised in Aviva for 50 Laks term plan for 30 years I need to pay premium of 16450 Rs every year, with returns [return of paid amount only, without interest after 30 years]. Is this advisable plan or can you suggest other good schemes available with more benefits? Do LIC have something same or Aviva right choice?
Thanks,
Ram

Posted on December 1st, 2011

Manish Chauhan says:

Ram

you should not take the return of premium p;lan , go for a without return of premium plan , that would be more better

Manish

Posted on December 4th, 2011

Mayur Birajdar says:

Hi,

Please let me know if I can go for AVAVA’s iLife plan? This is online product and comes with very competive price. Please review and suggest.

Thanks,
Mayur

Posted on December 5th, 2011

Manish Chauhan says:

Mayur

Yes . you can go for it .. What is that which is bothering you . Note that you need to trust the company and take the responsibility

Manish

Posted on December 5th, 2011

Mayur Birajdar says:

I am concerned about the claim settlement ratio, as anybody will be looking at it while purchasing any term product.

Posted on December 5th, 2011

Kapil says:

I have recently opted Aviva iLife of 1 Cr. term insurance for 35 yrs.
Premium is really cheap and competitive in the market.

I opted Aviva after lot of research between Aviva and KOTAK, and found Aviva looks to be provided with lowest premium and maximum no. of yrs insured (35 yrs).

Claim settlement report from IRDA seems to be mixed (online/offline), so cant consider it as a decision making step with 100% accuracy, but still both companies seems to be give a equal result.

Profit wise, in the couple of yrs, many companies have started showing profits, whereas if you look the 5 yrs old report, all companies (Aviva, Kotak, ICICI pru) except LIC, were in loss.

Factors i choose to decide is as follows –
1. Premium
2. Total no. of yrs insured
3. Claim Settlement ratio
4. Company Profits

finally i choose Aviva iLife.

Kapil

Posted on December 5th, 2011

Narasimha says:

Hi,
I have a question on Term insurance.

Now the person is a Non Smoker and Non Alcoholic.After few years he started smoking and drinking occasionally.Will it be informed to the Insurance company?If so what is the procedure and what are the consequences of this scenario?

Posted on December 5th, 2011

Manish Chauhan says:

Narasimha

No , you dont have to communicate it to company later

Manish

Posted on December 6th, 2011

Manish Chauhan says:

Kapil

Thanks for updating your experience :) . It will help others

Manish

Posted on December 6th, 2011

Manish Chauhan says:

Mayur

yea .. you can check that on IRDA website

Manish

Posted on December 6th, 2011

Girish says:

Dear Manish,
One of my friend who has taken LIC Jeevan Saral and is suggesting me to take Jeevan saral. Do you think it is one of the best LIC policy to take. Please advice.
Thanks
Girish

Posted on December 7th, 2011

Narasimha says:

Manish

Thanks for your reply.

If i do not communicate it to the Insurance company won’t it cause any problems during the cliams ?

Posted on December 7th, 2011

Manish Chauhan says:

Narshimha

No , in Life insurance you have to provide the data for present (at the time of taking the policy) , What happens later to you is not to be communicate . Dont worry .. the pricing of premiums factors all these points already !

Manish

Posted on December 7th, 2011

Manish Chauhan says:

Girish

No its not . Ask your friends to give you an IRR analysis of the policy . You will know what you can expect from the policy . read these threads

http://www.jagoinvestor.com/forum/lic-jeevan-saral/2100/
http://www.jagoinvestor.com/forum/jeevan-saral-policy-surrender/2235/

Posted on December 7th, 2011

Dilpreet Singh Bagga says:

Dear Manish/Narshimha, at least with Kotak, one has to update the company on their change in habits in terms of smoking and drinking. Since the products offer very competitive rates for non-smoker and even in the application form it is clearly defined and mandated to update if customer starts smoking in future.

I think this will be same for all the companies who are giving special rates in term plans to non-smokers, else the advantage goes for toss.

Regards,

DP

Posted on December 7th, 2011

Girish says:

Manish,

Thank you very much for your reply.

Thanks
Girish

Posted on December 7th, 2011

Narasimha says:

Manish

I have got the answer.Thanks for your inputs.

I have read this from 9 most asked questions about Term Insurance.

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 has to disclose this fact to the company as now he belongs to a different risk pool. The company may levy loading(increase in premiums) on the existing premium or even cancel the policy. This is necessary as violation of this term can result in decline of the claim in extreme cases.

Posted on December 7th, 2011

Manish Chauhan says:

Narshimha

Note thats its only true for Kotak term plan and not a general thing

Manish

Posted on December 7th, 2011

S K GUPTA says:

The premium for i-term plan from Ageon Religare is very-2 low. Can you exactly tell me why it is so low than LIC etc. And exactly what kind of problems can be faced during settlement of claim, in case of any casuality.

Posted on December 7th, 2011

Dilpreet Singh Bagga says:

Dear Manish, I would like to add to you here. As per my opinion, this will be applicable to all products which are giving benefits of lower premium to non-smoker.

Regards,

DP

Posted on December 8th, 2011

Manish Chauhan says:

Dilpreet

I checked with Dhawal , he said once that its for Kotak policies but he does not think that its there for other term plans as well . Did you check any other policy details ?

Manish

Posted on December 8th, 2011

Manish Chauhan says:

SK Gupta

THe answer lies in the comments section , please take the pain of reading those .

Manish

Posted on December 8th, 2011

kahnu says:

Dear Manish,

I am 31 yrs old n i have a baby girl of 1 year.my annual income is more than 7 lakhs. I want to go for a term policy.Please suggest me which term policy should I prefer. I want to go through online but should these policies reliable ? I dont want to go with ICICI icare as it does nt have medical test which may create a problem in future.

so please suggest me for a good term policy and a better financial investment

Posted on December 9th, 2011

Girish says:

Hi Manish,
What is your opinion about Jeevan mitra(triple cover policy)from LIC. Do you think it would be a good policy which can give good returns at maturity. Please advice.
Thanks
Girish

Posted on December 9th, 2011

kahnu says:

dear manish I have gone through this article and some of these comments . I am unable to get my solution and also these comments create more confusion for me.
please suggest.

Posted on December 12th, 2011

Ajay says:

I applied for a online term policy through ICICI prudential (Icare-II). It was a wonderful experience. I just had to email them copies of PAN card, photo and salary slips. Within 1 week I got the policy document. I would definitely recommend this to anybody interested in term plans.

Posted on December 12th, 2011

Addy says:

Hi i have short-listed 2 online term policy.
1.Kotak mahindra
2.Aviva
Kindly help me to chose one.Need to take quick decision as my next birthday is in the next week. if i cant take the policy before that the premium will be raise.

Posted on December 12th, 2011

LICAgentJaved says:

Hi Manish
A hypothetical question if Mr A has taken same day or same month 15 lacs term insurance from 20 companies total SA 300 lacs without informing other companies as he has no income proof for taking 300 lacs SA policy.
What will happen when he dies say after one year or say 5 years
Can nominee can claim from all companies.
Javed

Posted on December 12th, 2011

LICAgentJaved says:

Hi Mr Manish
Hypothetical question Mr A has takent 15lacs SA policy from 20 Life Insurance Companies Total SA 300 lacs because he has no Income Proof for 300 lacs SA Policy without informing other companies, ( by doing this he also escaped without special Report Requirements)
Mr A dies after one year or 5 years or 10 years, can nominee will be able to claim SA from all companies?
Answers from other experts also requested.
Javed

Posted on December 12th, 2011

Manish Chauhan says:

LIC Agent

No , he will not be able to incase he has violated any rules and did not answer the companies form properly

Manish

Posted on December 12th, 2011

LICAgentJaved says:

Hi Mr Manish
Do you mean Policy holder has violated many rules and nominee cannot encash the policy after death of the policy holder?
Javed

Posted on December 12th, 2011

Manish Chauhan says:

LICAgent

Obviously , If companies investigates then if they are reject the claim , then how will the nominee claim the amount ?

Manish

Posted on December 12th, 2011

sunil says:

sir,
i am age 33 year and applied for kotek preffered term lnsurance plan for the some of Rs. 25,00,000/- and Rs. 10,00,000/-for permanent Disability rider for 25 year term. whether i have choose a good compmany and his plan to secure future of my family.
weather i have recomend to change the company or not.
what is the ratio and performance of company.

the main doubt in my mind if the company will goes end in future or insolvant then how my family will secure as i have already take the term insurance company
sunil kumar

Posted on December 12th, 2011

maneesh says:

dear manish
i am a 39 year old doc, who has been following your views, i have a working wife,she is a docter,2 children. 7 yr daughter and 1 year son, my saving for them is about 1.5 lac per year for daughter, 1 lac for son and 2 lac per year for ourself in SIP,besides PPF and Bonds,FD. My present oustanding home loan liabilities is 18 lac .I have decided on 2 term plans. Please suggest , also what riders are important ?and must have at my age

Posted on December 13th, 2011

Manish Chauhan says:

Maneesh

the riders can not be suggested like this , riders totally depend on what you want .. Better not take riders , and take those benefits from a standlone policies

Manish

Posted on December 13th, 2011

Manish Chauhan says:

Sunil

Kotal preffered is a good plan , dont worry

Manish

Posted on December 13th, 2011

Manish Chauhan says:

Addy

Both are fine .. but AVIVA is more cheaper ,.. also , your premium alwards depends on your nearest birthday

Manish

Posted on December 13th, 2011

Manish Chauhan says:

Ajay

Thanks for sharing that experience with us , that was useful

Manish

Posted on December 13th, 2011

Manish Chauhan says:

then ask it on our forum : http://www.jagoinvestor.com/forum/

Posted on December 13th, 2011

Manish Chauhan says:

Girish

its all about name and the features , but ultimately , the return in long run would be in range of 4-6%

manish

Posted on December 13th, 2011

Bhaskar S. M says:

It is not govt duty.

Posted on December 14th, 2011

Bhaskar S. M says:

its 100% true.

Posted on December 14th, 2011

Swain says:

Hi Manish & Others
Thanks a lot for putting up this blog. Very informative!!

As I understand; we need to declare ourselves as “smoker”/”drinker” irrespective of how less often we do it. It is up to the insurance company to take the decision on how much extra premium one would have to pay over a “non-smoke/non-drinker”. Does the premium for a “smoker” vary from person to person depending on the frequency of tobacco usage? Asking this because, I smoke very rarely (1-2 per week sometimes per month)

I am looking for a 50L SA term insurance. Since LIC is costly, Kotak not providing any riders, I narrowed down on SBI Smart Shield.

Age: 35Yrs (Male)
Term: 25Yrs
SA: 30L
Accidental death benefit rider: 20L
Accelerated Critical Illness rider: 5L
Accidental Total & Permanent Disability benefit rider: 20L

Does the above split look okay? I already have a 30L SA (ULIP) from ICICI.

Thanks
Swain

Posted on December 15th, 2011

Manish Chauhan says:

Swain

Yes .. this looks good .. I guess even Aviva has riders .. did you check that ?

Manish

Posted on December 16th, 2011

Swain says:

Hi Manish
I selected SBI only because of trust factor. Could you also clarify my below query?
“Does the premium for a “smoker” vary from person to person depending on the frequency of tobacco usage?”

Rgds
swain

Posted on December 16th, 2011

Swain says:

Hi Manish
I selected SBI only because of trust factor. I would appreciate your response to couple of my queries below.
1) “Does the premium for a “smoker” vary from person to person depending on the frequency of tobacco usage?”
2) Is it okay to let the agent fill-up the forms and we provide him necessary documents? Or I should do it myself to avoid any miss interpretation of data?

Rgds
swain

Posted on December 16th, 2011

Manish Chauhan says:

Swain

1. Premiums shoudl differ

2. You can let the agent fill it , but you have to verify it .. the point is you should be aware of what is mentioned in your proposal form , thats all

Manish

Posted on December 16th, 2011

PVR says:

A very informativr thread.
My query is reagarding the hazardous occupation part.
hypothetically, if a proposer doesn’t declare his hazardous occupation and later if the life insured dies of a cause unrealted to his occupation,is the claim still liable to be rejected.

Posted on December 16th, 2011

Dilpreet Singh Bagga says:

Dear Swain, the premium remain same to start up i.e. till the time of logging in the policy. Rest, depending on your medicals including nicotine level in your blood, the company will take a call on loading/extra premium to be charged.

Regards,

DP

Posted on December 18th, 2011

Kumar says:

Awesome, Just incredible. I was searching this since last 3 years. Well done, nice site.

Now My ques is.

1) I am based in UK/Ireland. Is this term insurance resident country specific only ? What will happen if I will change my passport?

( 3 years back i was almost cheated my an ICICI prudential guy, He was selling me a term product, which was valid only in India. )

Thanks for all your help and support

Posted on December 18th, 2011

Manish Chauhan says:

Kumar

You can buy the term plans in India and it will be valid in UK, but make sure you target an offline term plan , because most of the online term plans do not support NRI’s

U can look at ICICI iCare plan also as it does not have medicals

Manish

Posted on December 18th, 2011

Pradeep Borah says:

What is the best choice to buy?

Term policy with Critical Illness rider or Health Insurance?

I have term policy of SA 50L each from ICICI iCare and Aviva iLife.

Regards
Pradeep Borah

Posted on December 19th, 2011

Pradeep Borah says:

http://www.jagoinvestor.com/2010/10/17-most-asked-questions-in-health-insurance.html

Thanks I got the reply from the above post.

Regards
Pradeep

Posted on December 19th, 2011

Om Prakash says:

Dear Manish,

I am finding huge difference in premium amount of online & offline application. Can you help me out in suggesting which option i should go for avoiding problems during claim stage.

I am looking for 3 options for terms insurance Aviva ilife / HDFC click to protect / icici prulife icare. Sugesst me which one should i select.

I am looking for 1 crore term insurance. Is it good to proceed with single insurance or break with two company.

Regards,
Om Prakash

Posted on December 20th, 2011

Manish Chauhan says:

Om Prakash

You can opt for Aviva + LIC , it will be mix of online and offline and a balance in premium too

Manish

Posted on December 20th, 2011

sourabh says:

I am planning to take a term plan of 50Lacks (25L by LIC(Jeevan Amulya) + 25L by Kotak Prefferd).My current age is 29Years.Is my choice correct?What would be the anual premium for these policy.I am looking for policy which provide below features Accidental Death,Accidental Disability Rider,Critical illness,Waiver of Premium

Posted on December 21st, 2011

Manish Chauhan says:

Sourabh

You will not get these riders will LIC . there are no riders with LIC amulya jeevan .. note that 25 lacs premium with kotak will not be very high, but even for 50 lacs it would be just 5-6k . so your total premium should be around 20k max

Manish

Posted on December 21st, 2011

mithun says:

Dear Manish,

very informative article.

I want to upgrade by SBI term plan by swiching over to combination of LIC and SBI or Kotak for higher sum assured. could you please advise between kotak & SBI or should i go with only LIC.

regards,
mithun

Posted on December 22nd, 2011

Manish Chauhan says:

Mithun

That will depend on your trust . I cant decide on behalf of you .. You can combine LIC and SBI , that would be better for you

Manish

Posted on December 22nd, 2011

A V says:

Well written article but very misleading/uninformed on LIC plans.
The mentioned riders are available on LIC’s policies as well. In fact what is given as WP & DR riders are BUILT-IN in every LIC policy and as for the mortality tables being used, it is LIC’s mortality tables being used across the industry as on date – the only authentic tables available for the country as of now.
The compulsions for under-cutting premiums are obvious and their repercussions are there to be seen in the claim-settlement ratios, litigations, strictures, and ofcourse in the balance sheets.

Posted on December 26th, 2011

Manish Chauhan says:

AV

Can you explain on riders being inbuilt in LIC policies ..which part of the article you dont agree with ?

Manish

Posted on December 26th, 2011

Sanjay says:

Hi Manish,

You are doing a great job. I am 25 years old and took Aviva I-Life for 50 Lakhs. Premium comes around Rs.4051.

Posted on December 26th, 2011

Manish Chauhan says:

Sanjay

Thats good to know .. :) . Didnt you consider other companies ? Why ?

Manish

Posted on December 26th, 2011

divyesh says:

hi manish

i m 27 year old and working with advertising. want to know about the term insurance.
i can invest 10000-12000 yearly basis for 25 years. And i want atleast 60 lacs to 80 lacs Death Cover and even if nothing happen till 25 year can i get my money back ?

and if yes how much and which is the trustable company to invest with according to you.

Posted on December 26th, 2011

Sanjay says:

I had the below choices,

1. Aegon religare I-term.
2. Kotak e preferred.
3. Aviva I life.

Out of these Aviva I-life looks very cheap with low premium and cover for maximum 35 years and also Aviva has a good claim settlement ratio when compared to the other 2.

Posted on December 26th, 2011

Manish Chauhan says:

Sanjay

You can go with any of them .. just make sure dont give any wrong information

Manish

Posted on December 27th, 2011

Narasimha says:

Hi i have compared the Term Insurances of Aviva,Kotak and Icici.

These are the premiums that i got for my requirement with out any Riders.

Aviva I-Life 4977
Kotak E-Preferred 7721
Icici I-Care 9706

My question is why there is diffrenece in the premiums for the three companies although all are providing the same benefits?

Also please suggest the best one among the above.All the above have good Claim Settlement ratio.I am confused in finalyzing the one.

Posted on December 27th, 2011

Manish Chauhan says:

Narasimha

The premiums depend on the underwriting rules of the company .. you should go with the trust factor and not just the premium alone .

Posted on December 27th, 2011

Manish Chauhan says:

Divyesh

Term plans are only for covering you .. nothing else .. you can get 1 crore + insurance in 10k per year for your age .. You have options like Aviva iLife , Kotak

Manish

Posted on December 27th, 2011

milind says:

can we take term plan and other plans (traditional of LIC) in case of any mishaps will all be honored? is their any higher side limit for total SA or claim amount in total for a man (online or thru agent/with riders etc. all together).
my worry is companies will collect the amount as much as they can and after at the time of settlement they will show rules that u took more than the limit of xyz amount so this claim will not be paid. like this.
please clarify
Thanks

Posted on December 27th, 2011

milind says:

another question does the term policy covers the mishap in bomb blast or any terrorist activity like in Mumbai or so ?
all Pvt insurance companies are under IDRA rules and is it mentioned on the policy they sell ?

Posted on December 27th, 2011

Aashutosh says:

Hi,

I am 33 years old and have a Metlife ULIP plan. I pay 40,000 per year for that. It’s been more than 5 years now. I have a 3 year old daughter and recently I took 3 LIC policies for her to get a certain amount when she turns 16, 18 and 21 years respectively.

Now I am looking to buy a retirement pension plan. Any suggestions?? Do you think I should invest in any such plans?? Should I continue with Metlife MetSmart plan?? I had to pay the premium only for first 3 years but I have continued paying.

Please advise.

Posted on December 27th, 2011

Manish Chauhan says:

Aashutosh

Dont invest in any retirement pension plan and I would say if you can stop the premiums for ULIP , then do so and continue with equity mutual funds .. read these articles

http://www.jagoinvestor.com/2011/10/pension-plans-drawbacks.html
http://www.jagoinvestor.com/2009/05/most-important-questions-you-should-ask.html

Manish

Posted on December 28th, 2011

Manish Chauhan says:

Milind

Yes .. some companies include terrorist attack also.. but not all .. check with your company

Manish

Posted on December 28th, 2011

Manish Chauhan says:

Milind

No , it does not happen like that .. there is always a limit which is decided keeping in mind your income .. if you want to take more than that, companies will not give you anywyas .. Dont worry on that .. as a thumbrule you can take 10-15 times your yearly income as SA

Manish

Posted on December 28th, 2011

Dhawal Sharma says:

Dear Manish and all,

Latest IRDA report for 2010-11 is available on IRDA.GOV.IN

I am please to announce that KOTAK is again in PROFITs for the fourth consecutive year (page 23) with VERY HEALTHY CLAIM SETTLEMENT RATIO of 90% (page 114, statement 13) having a more than high SOLVANCY RATIO of 2.67 against the required margin of 1.5 (page 123)

Dhawal Sharma
URJA WEALTH CREATORS

Posted on December 28th, 2011

prashant says:

Manish,

I want to take 25Lakh term plan.please suggest me which is best on low Premium.

Also its consider suicide and accident also.

Regards
Prashant

Posted on December 29th, 2011

sajids says:

Hi Manish,
I am a 30 yrs old person who has just stepped in to economic awareness.
I am a single as of yet with only my parents dependent on me my annual salary is 5.5 lacs/annum. I have only 1 policy Jeevan Tarang which covers me for 5 Lacs. I am already 3 yrs into it but will be converting it into a paid up policy.
I have decided to go far a term insurance of 50 lacs intially.I need ur help for finalising a policy.

I have shortlisted 3 policies.

1) Hdfc click 2 protect
2) Kotak preferred term plan (CI/AD/Disability rider)
3)Birla Sunlife Protector Plus Plan (with all the riders)

I am confused bout riders specifically Critical Illness rider.
For Birla sunlife no documentation on riders are available the surgical & hospitalisation rider seems to be a novelty as no other companies are providing it. but with all this it becomes a bit too costly.
For Kotak only the Illnes covered in CI are mentioned it does not provide any detailed elaboration of what will be covered or what not. Thats what makes it tempting & a sort of tacky & dangerous.
I am not so much for the riders specially CI rider, I think the permanent disability & accidental death benefit are worthy & not too costly.
Or the plan old policy without riders is good enough.
Please comment Manish & other users as I have almost finalised the policy but stuck with these issues.

Posted on January 3rd, 2012

Manish Chauhan says:

You can choose a LIC term plan or an Aviva Ilife term plan and take a accidental policy seperately

Manish

Posted on January 3rd, 2012

Aashutosh says:

Manish,

Thanks for your advise. Regarding my ULIP with MetLife I wanted to share current status of NAV and Fund value of the ULIP plan. It says as follows:
Fund Name: Balancer
Units: 11818.48320
NAV: 18.79330
Fund Value: Rs. 222108.29976

The above data is as of 21st Dec 2011.

Is it doing good? What should I do once I stop the premiums?

regards,
Aashutosh-

Posted on January 4th, 2012

Narasimha says:

Thanks Manish..

Posted on January 4th, 2012

Bazzi says:

Hello Manish:

You guys do a great job answering some really important but tricky questions – appreciate your work. I have a specific situation and after hours of googling for results, I came across your website. Would appreciate your advise or pointers on the below.

I am an NRI and my status will likely change to “person of Indian origin” in the next 3 years. However, I plan to settle down in India and want to purchase term insurance for a period of 25 years (with critical illness & disability raiders). After going through your posts, I am very much interested in Kotak preferred or SBI smartshield policies. I know your posts highlighted thata LIC doesn’t support policies for PR/Greencard holders – wondering if you are aware of any such policies pertaining to NRIs/PIOs for Kotak and SBI? Is there a general rule applicable to NRIs/PIOs or does it change from company to company?

If I can indeed apply for term inssurance – can you also clarify the process for obtaining the same?

Dhawal – Your insights on the matter are appreciated too!

Thanks in advance and appreciate your help!

Posted on January 4th, 2012

Manish Chauhan says:

Bazzi

These term plans are also for NRI’s .. however you will have to be present in India for medical purposes

Go through these two links and you will get clarity

https://www.facebook.com/groups/asanideasforwealth/permalink/231661256904775/
http://www.jagoinvestor.com/forum/term-insurance-policy-nri-and-non-indians/2472/

Posted on January 4th, 2012

Manish Chauhan says:

Aashutosh

Better get out of the plan now .. dont pay further premiums .. its depends if you want to get the money in your pocket (fund value) or want to continue it and let the fund value go up and down with markets .,

Manish

Posted on January 5th, 2012

Kumar says:

@ Baazi. for NRI Pl read this link
http://articles.economictimes.indiatimes.com/2011-12-23/news/30550962_1_nris-and-persons-nro-policy
@Manish – For NRI/PIO biggest problem is good trustworthy, easygoing investment manager, who can guide them about Mutual funds, Insurance, equity etc. etc. It’s very difficult to trust anyone. Either they don’t know anything or want to sell some crap scheme. One can recognise with in 5 minute of talk. All of my friends are facing same problem. It’s a potential big market for any Resident Indian Investment manager.

Posted on January 5th, 2012

Jay says:

Dear Manish Sir,
I need your help I want to child plan for my Son (3 months) and my niece ( 3.5 yrs.). So, you are requested plz. suggest me which is the best plan for the both.

Regards,
Jay

Posted on January 5th, 2012

Aashutosh says:

Hi Manish,

I have decided to surrender MetLife policy. I checked with them and till today I have paid 2,37,720 and if I surrender the policy now they will deduct 40% of 1st year premium + tax and I will get close to 2,06,700 back. Loss of 31,000 :(

Thanks for your advice.

Aashutosh-

Posted on January 5th, 2012

Bazzi says:

Thanks Manish – yeah, I understand we need to be in India. I was not sure if Kotak and SBI allow NRI/PIO applications – Kumar’s reply below seems to have answered my query. I guess I will need to contact an agent in India when I am there for the policy.

Posted on January 6th, 2012

Bazzi says:

Kumar – I concur with you 100%. Thanks for the fwd, great source of info. Appreciate it.

Posted on January 6th, 2012

Bazzi says:

sorry i meant Kumar’s and your response to my query :)

Posted on January 6th, 2012

Ashutosh Gangrade says:

@Tarun !

Yes , Tarun I am agree with your article .
Most of the agent of pvt insurance companies want to sell ULIPs
due to higher incentive paid by company.
Hence the contribution of ULIPs in this claim settlement table is much higher .
But in LIC , incentive for all plans (ULIPs , term and traditional plans) are approximately same.
Even in case of traditional and term plans an agent will get incentive for longer time than the ULIPs.

Posted on January 6th, 2012

Ashutosh Gangrade says:

Hi Manish !
I am 27 years old and I want to purchase a term plan of 40-50 lac .
Can you please suggest me to which company I should go with?
Is there any plan in market which returns my premiums back on maturity with higher life cover and low premiums?

Posted on January 6th, 2012

Pradeep Borah says:

You may try Non Forfeiture options for you metlife policy.

Non Forfeiture options upon Non Payment of Premiums: If all premiums have been paid for at least three full years and any subsequent premium is not duly paid, the Insured shall have the following options:

(i) Reduced Paid Up Insurance

If the premiums for at least three full years have been paid, then the minimum non-forfeiture benefit will be a reduced paid-up policy (“Reduced Paid-up Insurance”), the face amount of which will be

Total number of premiums paid X Basic Face Amount of Insurance
Total number of premiums payable

The policy is treated as fully paid up if the future premiums have been waived off.

Posted on January 6th, 2012

Vikram Sarode says:

Thanks manish for providing useful infromation on term insurance.

I am 33 yrs old married having 1.5 yr old son and not much aware about term plan. I have gone throgh above article and QnA forum. I have following quereis:
1. Does medical test compulsory to buy term insurance Or few companies are allow without it?
2. Does diabetes person buy term plan if yes then is premium more than normal?

Please suggest appropriate term plan for me.

Thanks,
Vikram

Posted on January 6th, 2012

Aashutosh says:

Pradeep,

Thanks for your suggestion. Excuse me for my lack of knowledge but how does this help me? I have paid the premiums for 6 years now.

regards,
Aashutosh-

Posted on January 6th, 2012

Manish Chauhan says:

Vikram

1. Medical test are generally there if the Sum Assured is more than 50 lacs .. ICICI icare comes without medical exams ..

2. Yes it will be higher .. mostly double and may be the cover can be denied also

Manish

Posted on January 6th, 2012

Manish Chauhan says:

Ashutosh

You can go with kotak or Aviva .. there are policies which return the premium , but they are worthless policies .. whats the use of paying more ..

Manish

Posted on January 7th, 2012

Manish Chauhan says:

Bazzi

Yea .. which city do you live in .. let me know once you are in India .. we might have some people in those cities who are trusted and linked to me .

Manish

Posted on January 7th, 2012

Manish Chauhan says:

Aashutosh

Better take the decision looking at the long term picture ..

Posted on January 7th, 2012

Manish Chauhan says:

Jay

Children plans are mostly ULIP’s or Endowment plans .. so better not go for them .. just invest in Mutual funds

Manish

Posted on January 7th, 2012

Manish Chauhan says:

Kumar

Hmm .. yea i can understand that .. only the time can tell if one wants to tap that opportunity or not

Manish

Posted on January 7th, 2012

Minesh says:

Manish

If I buy an online term insurance, I want to ensure that I undergo a medical check up so that no issues arise if at all a claim is required. Is this a correct approach?
Does HDFC click2protect require a medical check up?
Can I ask them to have it on record if they dont require it?

Posted on January 7th, 2012

Manish Chauhan says:

Minesh

THe medicals are done only after a limit of Sum assured , if you want to take 10-20 lacs of cover. . mostly you should not undergo a medicals .

Manish

Posted on January 7th, 2012

Pradeep Borah says:

I have similar policy policy of Anual premium of Rs6K only. I guess you are paying a sum of Rs40 K annual premium as you have paid your premium for six years. I you surrender your metlife policy now as you mentioned you are going to lose 31K and I guess the maturity period is 10 years. So stop paying the premium now. After the 10 year maturity of your metlife policy , you will get Rs 2,37,720 + 10% of 2,37,720. Here you are not losing your 31K , but getting additional 10% of your total premium paid. So annual premium of Rs 40K which is surplus for you now can be invested in mutual funds or any other instruments.
I have also limited knowledge on the calculation part and just a conservative investor. I am sorry if some one found my justification wrong. Probably you may take some expert opinion also. Well I see to keep insurance and investment as two separate entity. Better to go for term insurance + health insurance + mutual funds through SIP.

Posted on January 9th, 2012

Raj says:

Iam 31 yrs old. recently I took ICICI ICARE online term plan for 30Lacs for 30 years. I disclosed all the previously held LIC policies and my current health status(touch wood iam not suffereing from any disease or illness/ailment as such, as of now :-) ).
The policy has been issued and there was NO MEDICAL tests happened.Policy been issued under NON-MEDICAL category. I talked to the customer care but they say that there is no medical for this policy.

Down the line, say after 5-10 yrs , if person expires due to some illness or due changed medical conditions, are there any chances that, they could reject the claim stating the medical facts not revealed.

Is it possible that it b could verified that the person developed the health issues after taking or before taking the policy?

If for some reason the claim is rejected, the whole purpose of Term insurance would be defeated.

Should I continue with the policy or should i go for LIC offline policy as well?

Posted on January 10th, 2012

Ashraf says:

Well in terms of claim settelment ratio, LIC is anyway better so from that prespective, LIC is an option you can look at

Posted on January 10th, 2012

Narasimha says:

I came to know about HDFC LIFE CLICK 2 PROTECT . I think it is a new online Term Insurance with lowest premiums.

Could anyone provide the Cons and Pros of this policy when comapred to Aviv and Kotak?

Thanks
Narasimha

Posted on January 10th, 2012

Manish Chauhan says:

Narashimha

There is not much to look at it … Its just another term plan , and not the lowest one

Posted on January 10th, 2012

Manish Chauhan says:

Raj

The premiums in this term plan mostly factors in the non-declaration part, but what you worry about is really something whose answer is not known, we might want to know more about this

Manish

Posted on January 10th, 2012

Ravi says:

Hi Manish, I am 27 years old and I would like to be covered until 65-70 years. All insurance providers only provide until 30-35 years from now. Not sure how to fulfull my criteria. In case i take a new insurance after wards, the premium will increase drastically. please advice.

Posted on January 10th, 2012

Manish Chauhan says:

Ravi

Some companies provide for more tenure also like Aviva. . did oyu check all the companies ? And why you want the cover till 70 ? reasons ?

Posted on January 10th, 2012

Jeetu says:

I want to acknowledge over here that its because of your Article I took decision to have term insurance plan… When I contacted the Insurance Agent first time during the start of calendar year 2011 he was telling me the best option to opt for was Endowment policy… However somehow my intuition told that it is not right policy for me as I felt this is not what I want.

After reading your articles during Oct-Nov. 2011, I contacted him again after long time… And asked him to give me the details of the term plan.. He gave me the details and finally the document process and medical process was over by end of Dec. 2011. So, I feel that this is the Gift which I give to myself before the start of New Year.

Thanks Manish. It was because of your article I took the decision for Term Plan (which was indeed what I required).

Posted on January 11th, 2012

Neeraj Sood says:

Dear Manish,

Warm greetings.

Presently I am holding Birla Sunlife insurance policy for 40L and paying premium of 14K p.a which i want to discontinue. I am interested in buying a new policy for 1 Cr . I want to include terrorist attack, permanent disability rider in the same. Can you suggest a good policy having the same and have good settlement ratio too.

Posted on January 11th, 2012

Manish Chauhan says:

Try SBI term plan and then Aviva iLife .. mostly it should be providing you the features .. but from claim settlement point, SBI would not be the best one

Manish

Posted on January 11th, 2012

Manish Chauhan says:

Thanks Jeetu

Good to hear that :)

Posted on January 11th, 2012

Neeraj Sood says:

Many thanks for your reply.

Just one query can we trust Aviva or any other MNC insurance company. I just fail to understand why the premium of AVIVA are so less as compared to other policies. Whats you view on Kotak ePreferred, ICICI iCare,HDFC Click 2 Protect.

Posted on January 12th, 2012

Manish Chauhan says:

Neeraj

Aviva name is International , but they are as much indian as others like Kotak and ICICI , Even SBI has a venture with some international Insurance company .

The premium depends totally on their underwriting procedure and how they view different parameters . Its your judgement if it looks fine to you or not .

Kotak , ICICI are also good .. you can take the one you trust more .

Manish

Posted on January 12th, 2012

Atul Kadam says:

Good research, it found worth to me.

Posted on January 12th, 2012

Manish Chauhan says:

Thanks Atul

Manish

Posted on January 12th, 2012

Avinash says:

Very true…!

Posted on January 13th, 2012

Deepesh says:

Hello Manish,

I wanted to have your feedback regarding my insurance requirement.
My current requirement is Rs. 1C. Out of that, I decided to divide into 2 policies (one online & other offline).

For online, I took ICICI iCare last month for Rs.50 Lakhs.
For offline, I want to take it with critical illness and disability rider. I checking all options. I got following quote from Bharati AXA (Bharati AXA Elite Secure)

Premium-Rs.6510 (for 30 Lakhs for 25 yrs)
Critical Illness Rider – Rs.2500 (for 10 Laksh for 25 yrs)
Accidental Death & Disability Benefit – Rs.1350 (for 10 Lakhs for 25 yrs)
Total – Rs.11427 (including ST)

When I want to increase my insurance later, I will go for another online plan.
Could you provide your opinion?

Regards,
Deepesh

Posted on January 14th, 2012

Manish Chauhan says:

Deepesh

Why dont you look at Kotak offline term plan . that also has riders and will come cheap

Manish

Posted on January 15th, 2012

sajids says:

Hi manish,

Your article was very helpful.
I am 30 yrs single guy with an annual income of 6 lacs / annum with dependent parents.
I have shortlisted 2 Policies for 1 crore split up.
1) BSLI Protector Plus Plan 60 lacs with Waiver of premium rider.
It will be costing about 11k in yearly premium.
I have shortlisted BSLI cos it has very good service ratings (from i-save.com ) and a competent settle ratio. Also it is the only company providing the WOP rider which I think is more important than the ADB / Disability rider (as a seperate policy can be taken for this)
2) SBI SMART SHIELD for another 60 Lacs costing another 11k (shortlisted only bcos of trust, it has very few offices & operates mainly through bank branches)
Manish, Please give your opinion about this as i have seen in your blog very few people prefer BSLI policies.
Thanks in advance ,

Sajid

Posted on January 16th, 2012

sajid says:

Hi manish,

Thanks for the informative article.
I am 30 yr old single guy with a annual package of 6 lacs, having dependent parents.
I have decided to go for a 1.20 crore term cover spli into two.
1) I have shortlisted BSLI protector plus with waiver of premium option.
the premium comes to about 11k. BSLI has a very high service rating (source : i-save.com) apart from competent claim settlement ratio.
2) SBI Smart Shield without any riders it comes to about 60 lacs with 11k premium. I have thought of going for a seperate accidental / disability policy inst
Please advise me on this choice as i have seen very few people on this suggesting
BSLI term plan.
Thanks Manish, hope you will be replying at the earliest

Posted on January 16th, 2012

R SIVA PRASAD says:

Sir,

Though online policies are cheap, I did not find those with riders.
Please suggest any online term policy which also provides riders.

Thank you
R Siva Prasad

Posted on January 16th, 2012

R SIVA PRASAD says:

Dear Sir,

Please suggest any online term policy, that provides riders except ICICI PRU, which i already have.

Thank you
R SIVA PRASAD

Posted on January 16th, 2012

Deepesh says:

Manish,

Thank for your feedback !!

Today, I calculated the premium using the excel sheet in Kotak website. Following is the quote I got,

Basic Plan – Rs.6303.65 (for Rs.40L for 25 yrs)
Permanent Disability Benefit Rider – Rs.441.20 (for Rs.10L for 25 yrs)
Critical Illness Benefit Rider – Rs.5073.80 (for Rs.10L for 25 yrs)

Total Premium including ST – Rs.11,819

Premium is almost comparable to what I got from Bharati AXA (for Rs.30L+Rs.10L+Rs.10L = Rs.11,427)

I am little confused about the difference in premium for CIB rider.
For Bharat AXA, it is Rs.1350 but for Kotak it was Rs.5070. Similarly for PDB rider as well. For CIB, one difference I see, in Bharati AXA this premium is only for 5 yrs. After that it will be revised.

Could you provide your feedback on the differences?

Regards,
Deepesh

Posted on January 17th, 2012

DR. MODI MAHAVIR says:

Dear Manish,
Your article is an eye-opener.
Shall I syop payning premiums to my other LIC policies which are more of investment based rather than covering life? How to go about kotak,s term insurance thru net? If I take the policy online, who will be my agent & who can help me in cash settlement issues years after, if required?
Pl guide

Posted on January 17th, 2012

Narasimha says:

Hi I am 30 years and i am planning to take Teram Insurance for 50 Lakhs.

I have choosen Aviva I life,HDFC Click 2 protect and Kotak E-preferred.

Based on the Claim settlement ratio and other factors i feel that HDFC Click 2 protect is the better option But i am not sure.I am confused to choose one. Could you please help me on this.

Thanks
Narasimha.

Posted on January 17th, 2012

Manish Chauhan says:

Narasimha

HDFC click 2 protect is a new term plan … Aviva and Kotak already were in market .. you can buy anyone these .. dont spend too much time on analysis and less on action , just make sure you put the right info in the form

Manish

Posted on January 17th, 2012

LICAgentJaved says:

Dear Manish
Claim settlement ratio of 2010-11 has been declaired by IRDA. I think new data will be useful for our readers.

Javed

Posted on January 17th, 2012

R SIVA PRASAD says:

Hi Manish,

1)Opting for riders in Offline Kotak preferred Term Policy
2)taking personal accident policy plus online Kotak e preferred term policy

Please tell which is best or cost effective between above two options.

Thank You
R Siva Prasad

Posted on January 17th, 2012

milind says:

Dear Manish,
i am very happy with this site con taints,
i would like to know that once i take term policy from any company can it change the premium in between after some days such as medi claim policies .
after certain age can they change the rates for running polices /in force term plans.
for example today is termplan is of 5000/- p a premium , after 5 yrs they may ask 15000/- for the same policy which i am paying for last 5 yrs properly with out break ?
so its better to take policy at early stage of life for longer term as much as possible.
Comment
Thanks ,

Milind

Posted on January 18th, 2012

Manish Chauhan says:

Siva

from cost point Rider would cost less, but it will not provide you all the features . So if you only want limited but most important features , you can go for riders

Posted on January 18th, 2012

Kajal says:

Hi Manish
I am single 27 years old girl working with IT industry.

Do I need to get a term insurance plan for myself? If something happens to me, my husband would be there to take care of my kids.
If God forbid, something happens to both, we can get a term insurance plan for my husband only with good SA.
I am not sure if I need this.

Also, which company should I opt for this? I was planning to take policy from LIC. Pls suggest.

What kind of medical tests are perfomed during policy issue? I dont have any medical complications, but from last 2 yrs, my cholestrol level has gone up. I am trying to get this sorted but if I take policy till march, this will remian as an issue. Let me know if there could be some problem due to this.

Also, I will be undergoing Eye lasik operation in March. would it affect their medical fitness criteria for policy issue?

Posted on January 18th, 2012

Amit Kapoor says:

What is the best way to buy Critical Illness or Disability Rider.
I was told by an agent that if I buy these as part of your Life Insurance the premium will be more but if you buy these as standalone policy by any general insurer like New India Insurance or Oriental Insurance it will be cheaper.

Posted on January 18th, 2012

Manish Chauhan says:

Amit

There is no standard rule like that .. the premiums for riders can be cheaper or higher .. depending on which company are you talking about . I would suggest if you need full features of a accidental policies,then go for standalone policies else just go for riders

Manish

Posted on January 18th, 2012

Manish Chauhan says:

Kajal

You need a term plan only if some one is going to be financially impacted because of your absence .. whcih you said wont be the case .. so you dont need a term plan , you can get term plan for your husband in that case ..

There will be basic medical tests only and your declaration will also be there which is for preexisting things .

Manish

Posted on January 18th, 2012

Manish Chauhan says:

Milind

Term plan premiums are contstant after you have purchased it :)

Posted on January 18th, 2012

Manish Chauhan says:

Dr Modi

Online term plans dont have any agent ? Why do you need any agent for settlement ? There is no return component in these term plans .. better go for aviva or kotak term plans .. if you are not comformatable with online term plans , then catch and agent and take offline term plans

Manish

Posted on January 18th, 2012

Manish Chauhan says:

Deepesh

depends what all they are covering in CIB , that makes the difference in premium … better not go with Bharti AXA ..

Go with someone who has a constant premium like Kotak or Aviva , also dont over analyse … few hundreds here and there is fine ..

Manish

Posted on January 18th, 2012

Manish Chauhan says:

Kotak offline term plan has riders ..

Posted on January 18th, 2012

Deepesh says:

Thank you Manish for your inputs !
It helps me. Let me check Aviva quote as well.

Regards,
Deepesh

Posted on January 19th, 2012

krupa says:

No, you are absolutely wrong LIC does make exhaustive verification when claims are made. Their Death claim procedures are very cumbersome and are not decided at the branch but goes through their higher offices following stringent procedures.
It is a in the interest of the public so the employees go a step further to pay out maturity and other benefits. The checks are made ready well before due date , each and every policy holder is traced. (you would have to use channels like previous office, just dial, telephone directories, agents, etc. because all policy holders do not come to claim their maturities on time).
So the LIC claim ratio has a great experience because of the sweat put in each and every month.

Posted on January 19th, 2012

vassu says:

There has to be set of standard questionaries and declarations in the application forms across all the insurance companies.
A central government agency should monitor and settle the claims. I dont understand why government is not doing this.

Posted on January 19th, 2012

Deepesh says:

Hi Manish,

I see that Aviva does not have disability rider on offline term.
I see kotak meets my requirement now.

Regards,
Deepesh

Posted on January 19th, 2012

Manish Chauhan says:

Deepesh

Incse you feel it meets your needs , then just go ahead ..

Posted on January 20th, 2012

manish jani says:

Dear Manish,

My data are : age 39, need 1,00,00,000 sum assured, 20 years term, since 1995 i am working in govt. till today no illness, i am a non smoker non alcoholic, vegetarian, very good family health history.

Please sagest the plan, company and online or offline option?

Thanks.

Posted on January 22nd, 2012

Nikunj Patel says:

Hi Manish,

This is very nice article on term plan.

But i have one confusion, if i have separate health insurance then is it necessary to buy policy with additional riders?

I am very confusing about different rider option.

regards,
Nikunj

Please guide me.

Posted on January 22nd, 2012

Manjunath says:

Dear Manish,

I wanted to buy online term insurance plan. Please suggest me for which plan I need to go and give atleast three companies from where I can finalise. My details are mentioned below.

Age: 28 yrs
Occupation: Sales Manager
Annual Income: 3,50,000
Married person
Have family history of critical illness like cancer, diabetics

Posted on January 23rd, 2012

Manish Chauhan says:

Manjunath

LIC , Aviva iLIfe and Kotak are your options

Manish

Posted on January 23rd, 2012

Praveen says:

Mr. Neeraj,

Your best bet is HDFC or Kotak. I am having diabetes for last 10 yrs. I gave declaration about this, for which they loaded heavily, but accepted. Both these are very reputed and established names. No worries !! Just maintain good life style and control sugar religiously.

Posted on January 23rd, 2012

Manish Chauhan says:

Praveen

Thanks for mentioning that :)

Posted on January 23rd, 2012

Aditya says:

pls provide the comparision b/w term plan and whole life plan. to my understanding both are pure insurance plans wherein premium is not returned. so it makes sense to take a whole life plan and enjoy life long coverage than going for a term plan for 20/30 yrs. pls correct me if I am wrong.
do companises provide whole life policies online just like term policies?

Posted on January 24th, 2012

Manish Chauhan says:

Aditya

Whole life plans also give you some maturity benefit .. so in a way they are not pure term plans .. Better not to take whole life plans

Posted on January 24th, 2012

Manish Chauhan says:

Nikunj

If you already have a health plan with those riders , then no need to take additional , but incase you dont have those riders and you need those riders ,then you can take it

Manish

Posted on January 24th, 2012

Manish Chauhan says:

Manish

Online or offline can be decided by you only ,do you trust online term plan , do you really like the model ? If yes ,then you can go with Aviva ILife term plan

Manish

Posted on January 24th, 2012

Vishal Agrahari says:

Hi Manish,
Thanks for the Info!
Comparison chart given here is of 2009-10. Please provide 2011 comparison chart. I am thinking to go with hdfc life term plan as they have started online term plan. Latest comparison chart can help me to decide. for reference: http://www.hdfclife.com/Products/ProtectionPlans/TermPlan.aspx

Posted on January 25th, 2012

Aditya says:

I have an endowment policy with metlife from past 10 yrs in my mother’s name, premium paying term was 5 yrs. I have been getting mere 3.5% bonus every year. should I surrender it ? I am planning to invest in mutual funds.

Posted on January 25th, 2012

Aditya says:

this policy was taken only for saving tax

Posted on January 25th, 2012

cavin says:

hi Manish,
i would like to know which is the best plan having low premium, good settlements, riders keeping in mind for a 32 year old. iam planning to take at least one crore term insurance. kindly help. thanks

Posted on January 25th, 2012

Manish Chauhan says:

Cavin

Best claim settlement comes from LIC only , but other options are Aviva and Kotak

Manish

Posted on January 26th, 2012

Manish Chauhan says:

Aditya

Definately you should surrender it and start in MF, fast !

Manish

Posted on January 26th, 2012

Aditya says:

what would be the tax implications on surrendering the policy? will the proceedes be taxable?

Posted on January 27th, 2012

manish jani says:

Dear Manish,

I will definitely go for online plan.
you suggested me the Aviva i care plan, but the company executive (on toll free number) said that they do not offer their online plan at Bhavnagar.
I offered to go to their branch at Ahemedabad or Rajkot but she refused.
The claim rejection ratio of Aviva is good compare to Aegon So I am interested to go for Aviva.
Is there any solution?

Posted on January 28th, 2012

Manish Chauhan says:

Aditya

If the surrender is done before 5 yrs, the surrender value would be taxable

Posted on January 28th, 2012

Jerry Jose says:

Yes there are attractive term insurance plans with private insurance firms which offer a huge sum assured with a minimum premium. But when the claim settlement comes, the ratio between claim application and settlement is low. If there is so many hurdles to settle the claim, or non settlement of claim, what is the use of such term insurance plans. The deceased person do not know what happened to his beloved family and kids he planned to get a big amount after him.

Posted on January 28th, 2012

Manish Chauhan says:

Jerry

Claim rejections and settment is story of all the insurance companies .. most of the claim rejections are function of how badly agents were trained to fill up the forms of customers .. Claim settlement numbers also have direct relation with the number of years a company is in business .

Posted on January 29th, 2012

Manish Chauhan says:

Manish

the online term plan is available only in few cities .. bhavnagar is small place so mostly no online term plan would be given there.. you can then look at offline term plans

try Kotak preffered , which is offline and premiums are good

Manish

Posted on January 29th, 2012

Aditya says:

thanks

Posted on January 29th, 2012

manish jani says:

thanks for repply.

Posted on January 30th, 2012

Sonia says:

Hi Manish,

A really worth page to read , you answered a lot of question already , but i have some doubts

I am looking for a term plan from Eagon reliagre worth 80 Lacks.
But i am not able to understand the riders clearly, why companies add AD & CI riders sepeartely ? does it mean if i dont opt for an accidental rider & later i died in an accident, they wont cover that claim.

Or in case i opt for AD rider say additional ( 20 L) & then insuree died of critical illness, company wont settle the 20 L claim .

Even i read somewhere you suggesting one should invest 50 % in base & 50 % in riders . Why so ?

regarda
Sonia

Posted on February 1st, 2012

Sonia says:

Hi Manish,

First of all,, thanks for such a informative blog.

I want to buy iTerm plan fron Eagon religare but i am not very clear about riders.
Religare offers 2 riders AD & WoP .

My Que is : Why AD Rider is seperate, are there any hidden facts ? If i buy a plan and do not choose AD , and i died in an accident (i am a bad driver :( ) , will my claim be rejected ?

Or vice versa, i choose AD , but i end up with a disease , Will i get my Additional cover

I want to buy a term of 1 Crore.
Please advise.

Posted on February 1st, 2012

Anurag says:

HeyTarun
Tell us what u did regarding ur policy
did u buy that policy and from whom? Did u take a single one crore policy or wat?
waiting and hws ur experience

Posted on February 4th, 2012

Anurag says:

Manish
What will u suggest to a person who wants a term insurance of 1 crore? What and hw should he take the insurance with all these above discussions going on….. which is the best way to deal with it? Thanks

Posted on February 4th, 2012

Manish Chauhan says:

Anurag

He should think less and rather focus on taking action .. Take it from HDFC , Aviva or Kotak , as far you keep things correct in form , any company is ok

Manish

Posted on February 6th, 2012

Ravi says:

What is the difference between Aegon iterm old and the newly launched iterm?
One difference i know is that they cover terrorist attcks? Will my oldpolicy from Aegon cover that or i will have to purchase a new one?

Posted on February 7th, 2012

Manish Chauhan says:

Ravi

Over time mortality charges come down , so the premiums are low ., you need to take a new one

Posted on February 7th, 2012

Animesh says:

Hi,

When we talk about claims settlement we must understand its type. IRDA never bifurcates death claims and maturity claims. LIC has been working for >70 years so people have been investing since long back. That makes more numbers of maturity claims too. Most of the private firms are new in this sector so its pretty obvious that they will have lesser percentage. For them its more likely a death claim in the report as they are not there for 15/20 years to include the maturity claims and increase the counts.

Posted on February 7th, 2012

Animesh says:

Hi Manish,

BSL has also got a good term plan. Please provide your inputs.

Posted on February 7th, 2012

Max says:

Hi,

I am married 30 years old living with parents and have taken a home loan 15 lacs.which Term insurance is suitable to me or which Term insurance is best in industry.

Could you please guide me

Thanks,
Max

Posted on February 8th, 2012

Manish Chauhan says:

Max

there are many options like HDFC , Kotak , Aviva and ICICI , LIC

Posted on February 8th, 2012

Anil says:

Great article, kudos to you Manish!!
…Just a quick question, perhaps it is discussed already but I need to see it as an answer to my question.
If I buy Insurance1 from company-A for “X” Sum and buy Insurance2 from company-B for “Y” sum (declare all correct info including the insurance from the other company) in that case should anything happen to me will I get the sum insured from Company A & B both ie total SI= X+Y??

Posted on February 8th, 2012

Animesh says:

Hi Manish,

I appreciate your work and analysis. I am planning to buy a term plan. I saw a lot here about Kotak. LIC premiums are too high. According to my investigation BSL has also got a good term plan. Please provide your inputs.

Posted on February 8th, 2012

Manish Chauhan says:

Animesh

Almost all the companies have online term plans now .. so how do we define “good term plan” now ? What is your definition ?

Posted on February 8th, 2012

Manish Chauhan says:

Anil

YEs , thats true

Posted on February 8th, 2012

Abdul says:

1. what are the possible reasons to reject term plans ..
2. which company term plan is best for 42 years lady 50 lac
3. online or agent.
4. what are the documents needed to open term plan

Posted on February 11th, 2012

Tejas Shinde says:

Manish,

I am 26 year old single with 5.0 lpa salary. I am planning to have one insurance policy with around 25-30K annual premium and am confused as I dont know much about this area. Can you please suggest me which things should I take under consideration before buying a policy.? Also can you please suggest me some good plans?

Posted on February 12th, 2012

Animesh says:

Hi Manish,

Thanks, it gives opportunity to share my points to rate a company, these are- Annual Premium
Riders Availability
Claim ratio
Operational period

Now please share your thoughts about BSL Protector term plan, though its not online but this company is operational since a descent time period.

Posted on February 12th, 2012

Manish Chauhan says:

Tejas

Better do not buy anything with word “Policy” in it .. Go with mutual funds … start a SIP of 3k per month

Posted on February 13th, 2012

Manish Chauhan says:

The article gives you first and second part already .

The operational part is what you can find out , LIC , Kotak , SBI , ICICI , HDFC , BSL are all good one’s

Posted on February 13th, 2012

Manish Chauhan says:

Abdul

1. Wrong info in Term plan

2. Any term plan is fine for that ..

3. Your preference , online is recommended if you are fine with it

4. Company will tell you

Posted on February 13th, 2012

venkat says:

Hi Manish

Awesome… site..
I cant tell you how it helped me in taking decision to move to term plan..
gr8 job…

If u publish the current settlement ratio also, that would be great…!

Thanks..

Posted on February 15th, 2012

Manish Chauhan says:

Venkat

Will change the data soon !

Posted on February 15th, 2012

SACHIN says:

Hi Manish,

I am 30 years old, married man with one kid (2 years). Currently i am planning to buy a home of Rs.26. 00, 000/- which i am taking loan of Rs.20, 00,000/-. Recently i went to a bank to negoatiate home loan, at that time they suggested me to take Homeassurance term plan to cover home loan. They are offering only single premium for 20years(single premium is Rs.54,000/- for Rs.20,00,000/- for 20 years cover, which is reducing). They will add this premium amount in my home loan on same intrest rate.
I need your suggestion that, should I go with this home assurance plan or i need to take seperate term insurance plan form any company. Below are detail of my present policies with cover.

1. Birla Sunlife Dream plan (ULIP): monthly premium – Rs.2121/- with cover of Rs.20,00,000 + 10, 00, 000 (AD). – I have already completed 3 years and planning to surrender this policy, since there are no as expected returns from this policy within 3 years.

2. Aviva Yong Scholer Advantage (ULIP) (this is for my 2 years kid): Monthly Premium – 2036 with reducing cover of Rs.10,00, 000 + Sum assured. – Completed 1 year.

Now my question is , Since i am going to purchase a new term policy which can protect my Home loan and other needs, wht do you suggest , should continue with above two policies with additional Term insurance policy or can i surrender above policies and go for pure Term insurance with parallel investment in Mutual funds.?

Posted on February 15th, 2012

KoolPal says:

Hi,

Can this chart be updated with the latest premium rates and maximum age of coverage?

Would be appreciated.

Posted on February 16th, 2012

Advice from Heaven says:

[...] companies never use the word Term Plan in any of their advertisements and so many people don’t know what Term Plan is. A lot of [...]

Posted on February 16th, 2012

Sune says:

What do you prefer Manish – online term plans or offline term plans?

Posted on February 17th, 2012

Manish Chauhan says:

Sune

I am fine with online term plan , however those who do not trust online channel , should take offline term plan only

Posted on February 17th, 2012

Manish Chauhan says:

KoolPal

Would do that soon

Posted on February 17th, 2012

Manish Chauhan says:

yes .. taking a term plan with parallel investment is what we generally suggest !

Manish

Posted on February 17th, 2012

Bharat says:

Hi Manish,

This site is very informative on all investment and insurance related benefits and issues.

I am an NRI and have taken term insurance recently with Kotak Mahindra. While applying for term insurance my status is NRI. If I decide to move to india for good in 5years time my status will not be NRI and do I need to inform my insurance company about this status change?

Also if something happens to me while I am in india will the insurance claim be rejected. For NRI’s is it any mandatory that the death should happen only outside of india.

Please clarify my doubts.

Regards,
Bharat A

Posted on February 20th, 2012

pradip says:

This is a wonderful online discussion site which gives lots of informations about the term plans. It helped me a lot. Now I am planning to buy two term plans as suggested by mr. manish. Thanks a lot to all of you.

Posted on February 20th, 2012

Manish Chauhan says:

Pradip

Term Plan is recommended only if you need it !

Manish

Posted on February 21st, 2012

Siva Prasad says:

Dear Dhawal,
On February 17th 2012, I have received the Policy Document and found mistakes mentioned below.

1. I applied for term 27 years, but in policy documents it is mentioned as for 25 years.
2. I have paid Premium 3998/- only (including Service Tax), but it is mentioned
Premium as 4025/-
3. I did not choose step-up option, but it is included in policy document.

Sir, Please help me . I already mail to Kotak, but very careless response by saying that after adding tax premium will be 4025, without verifying with my application.

Thank You
R Siva Prasad
Mobile:8275043533

Posted on February 21st, 2012

Manish Chauhan says:

Bharat

There is no compulsion like that .. you can come to india and do not need to inform about it . This I am saying as this is the rule in most of hte term plans , but better go through the policyh documents once and read it .

Manish

Posted on February 21st, 2012

anurag shrivastava says:

Dear Manish

A very nice piece of information.Great job Bro.

Kindly suggest me to take the best term insurance plan of atleast 2cr for my family.The plan should perfect.

Regards

Anurag

Posted on February 21st, 2012

Manish Chauhan says:

Anurag

Sadly one cant recommend a plan like that, it has to be choosen by you only , no one else . which company do you trust ? Take it from that one only . price is not the only thing you have to see .

Posted on February 21st, 2012

Abhijeet says:

http://www.bachatkhata.com/2012/02/claim-settlement-ratio-for-life-insurance-companies-for-2010-11.html

do visit this link…its an excellent article on term plans comparing their CSR for 2010-11

Posted on February 22nd, 2012

Abhijeet says:

im 44…im opting for a online term insurance plan from hdfc and i was going through the application form and there are certain questions about my health like if have any heart related problems etc etc…now as far as my knowledge is concerned i dont have any such complications but then iv not had a medical check up so i dont know wat the exact condition is…so wat does the company expect from me as an answer???…
Il answer truly as far as i know right???
is it the right way??..itl not create any problems ???

Posted on February 22nd, 2012

Sune says:

realized the online term plans are cheap. would like to go for online term..
but which one do you recomend to buy?
thanks

Posted on February 22nd, 2012

Abhi says:

im 44 and im planin to buy a hdfc online term plan..iv not had any health problems as such..the application form has some serious questions related to any heart conditions etc etc…as far as i know i dont have any major health risk…but then i hav not had a medical check up so i dont know the exact conditions..so in tht case how do i answer these questions..???as far as i think i am required to write wat i know or am aware of right???
and suppose the company comes to know later tht i had any complication while taking the policy but it was not in my form as i did not know it,will this complicate things???
Wat about habits after taking the policy..do I have to tel the company??

Posted on February 22nd, 2012

Abhi says:

please suggest me asap

Posted on February 22nd, 2012

Manish Chauhan says:

Abhi

IF you already know about the health issues at the moment , better put it in forms and anyways they will do that medicals if you are taking it for more than 50 lacs .. Better not leave the things like this as this can be issue

Manish

Posted on February 23rd, 2012

Manish Chauhan says:

Sune

You choose the company you trust , not by the price

Posted on February 23rd, 2012

Guru says:

Hi,
Thanks for Very Good Article.
I have a question. I had applied for the term insurance from Bajaj with insurance cover of 30Lacs + 10Lacs (AD) + 10Lacs (DR) = 50Lacs with 10K premium.
After medical tests company is saying that I have high colesterol and I need to pay 10.5K extra to avail same insurance cover.
Or I can get 10Lacs + 15Lacs (AD) + 15Lacs(DR) + 10Lacs(WP) insurance cover with same premium(10K). Does it make sense to go for this revised insurance cover with same premium? Or shall I take some medicines to get my cholesterol under control and apply again? Thank you in advance for your advice.

Posted on February 23rd, 2012

Naveen Kumar says:

I want to buy Life Insurance Cover for my parents, my dad is 58 and my mother is 56. My mother is a diabetic patient. I want a good policy which can give a cover of atleast 50 lakhs. Can you please let me know which is the best policy.

Posted on February 23rd, 2012

sagar says:

I dont get how icici icare can give a sum assured as high as 40L w/o medical tests as they say on their site…no medical tests

please shed some light on the phsyche behind a term plan w/o medicals. . . .

Posted on February 23rd, 2012

Rishi says:

Hi Manish,

I am a 39 year male – smoking (abt three /four cigarettes a day) -looking for a term plan cover of Rs. 1 crore. Have looked at LIC Jeevan Amulya but its very expensive – my agent estimated the premium to be Rs. 1 lakh – however on looking at the claim settlement ratio data, am a little apprehensive of going to pvt cos – what do you suggest? I would prefer giving all info upfront so that there are no hassles –

If pvt cos have to be considered – then am looking at HDFC Standard and Birla Sun life as their claim settlement are the highest and also they are financially sound -dont like ICICI much – any thoughts?

Not necessarily looking for the cheapest option -

Posted on February 24th, 2012

Manish Chauhan says:

Rishi

There are other options like Kotak , Aviva also . there claim settlement is also good . LIC is also coming up with its online term plan , it would be cheaper than offline option

Posted on February 24th, 2012

Manish Chauhan says:

ICare does not take into consideration the health issues which you dont know so the premium is already jacked up !

Posted on February 24th, 2012

Manish Chauhan says:

Guru

The loading (increase in premium) is justified . As you are not healthy , the premiums will be high for sure . Dont compromise on the cover amount otherwise you will kill the purpose of the whole thing . Better go for it or choose another insurance company and side by side , take care of your health .

Posted on February 24th, 2012

Pramod RW says:

It is a very good article. My experience about e-preferred Kotak:
* Opted for e-Preferred term 50Lakhs, upto 70 yrs age.
* Preferred term through agent was expensive by about Rs 1000. E-term is 1550 per month.
* Got a call that Kotak man will come to collect documents in Chennai. But Kelambakkam was out of Chennai, so nobody came. I called the office, was requested to visit the office. Went to Egmore, submitted a form. That was ok and fast.
* Got a call and email after 3 days to go for a medical test at prescribed place. It was easy, they checked blood, urine, liver, made me to run on the mill and checked heart.
* Policy confirmed after a week. Online payment started. Original policy documents were sent to my address, returned back as I was at Nagpur for Diwali. But online policy documents are downloadable.
* I sent change of address and proof by email, acknowledgement was received, but policy documents are not yet received (2.5 months). I am following up now.
Thats all!

Posted on February 24th, 2012

pradip says:

Dear Mr. Manish,
Thanks a lot for your reply on my post of 20/08/2012 in which I showed my desire to take two terms plans and your advice was that it should be taken only if it is required. Let me put my situation on this forum. My wife and I, both are 34 year old and central government sevent with all facilities such as medical etc. I am covered in old pension scheme while my wife is in new contributary govt. pension scheme. We get good salary and there is no liability except one daughter, one and a half year old. Now my queston is, as both of us are in govt. job getting good salary, is not taking the term plan by either of us worthless rather we should invest that amount in property/mutual fund/equity keeping in mind the investment is being made for long term? Also, one more query : someone suggested us to take the annual accidental insurace from UTI or other trusted company where premium will be less as likelyhood of our accidental death at this age is more than the natural one? please advice us. Thanks in advance.

Posted on February 25th, 2012

Manish Chauhan says:

Pradip

All you need to do is ask your self , what happens if you die or your wife die ? Would the other person need some extra money apart from thier salary/assets ? If the answer is yes, then you need to take insurance for that much quantum? I ask you , If you die, will your wife have enough from her salary and your assets to meet all the life goals ? Simple question !

Manish

Posted on February 25th, 2012

Manish Chauhan says:

Pramod

Good to hear your experience .. I think you are happy with over all experience other than the last point where you are waiting from their side on communication address change .. but thats ok , it will happen !

Manish

Posted on February 25th, 2012

pradip says:

Dear Manish ,
Thank you very much for your reply. As I asked you to advice us on the accidental insurance which also gives a cover of around 40 lac just by paying the annual premium around Rs. 1500/-. The only requirement is to renew it yearly. Please spread some light on it as well. Let me also inform you that we both are assistant prof. and getting almost the same salary and so we have decided not to take any term plan.

Posted on February 26th, 2012

Rishi says:

Thanks Manish for your useful reply. Will do check Kotak. Have some more questions:

1. Is Rs. 1 cr cover good enough? My current annual income is between 40L and 60L – am a practising CA – Have two daughters, non-working wife and dependent parents – other LIC policies sum assured is about Rs. 90L.

2. LIC is covering upto 70 years – whereas pvt cos covering only upto 65 yrs. Is term cover necessary after 65 yrs?

3. LIC also covering death from terrorist attacks and natural disasters in Jeevan Amulya plan – but pvt insurers not. Would u think i should give weightage to this?

How much should be my term cover and should i look at private companies?

Thanks.

Posted on February 27th, 2012

Sunil says:

Hi,
Are there any purely accidental death, permanent disability policies. I could find two plan for the same..Bajaj Accident Guard and Reliance Personal Accident.
Kindly share some more information on the same.

Thanks and regards,

Posted on February 27th, 2012

Manish Chauhan says:

Sunil

Read this post of accidental policies : http://www.jagoinvestor.com/2011/12/accidental-insurance-policies-in-india.html

Posted on February 27th, 2012

Manish Chauhan says:

Rishi

1. The first thing you need to see is how much assets and worth you already have ? If you already have enough , then there is no need for insurance . But if you need it , you can use our calculator to find out what is the right cover for you : http://www.jagoinvestor.com/calculators/html/Insurance-Calculator.html

2. NO , 65 is good enough age to be coverd . remember that life insurance is to be taken only till the time some one is financially dependent on you . Better you grab my book and read it

3. those are low probability events , but you can give weightage to them ,. but most part of focus should be any other kind of deaths. Even some pvt insurance company have those coverage .

Manish

Posted on February 27th, 2012

Manish Chauhan says:

Pradip

The policy you are talking about is accidental policies , so just in case of death by accident or disability due to accident , it will be helpful else not .

Posted on February 28th, 2012

balaguhan says:

dear manish
i took a term plan in HDFC in 2007 for 20 lakhs with AD rider 10 lakhs premium is 10000 Per annum. now i am thinking of discontinuing it and taking a new term plan in KOTAK as the premium is low also coverage is upt0 70 years what is your suggestion

Posted on March 1st, 2012

Manish Chauhan says:

Balaguhan

You can read our latest article on this topic with some points you should keep in mind http://www.jagoinvestor.com/2012/03/switch-new-term-plan.html

Posted on March 2nd, 2012

Preeti says:

Thanks alot,very informative and well researched

Posted on March 2nd, 2012

Manish Chauhan says:

Thanks Preeti !

Posted on March 3rd, 2012

HEMAL PATEL says:

Hi Manish,

You are doing excellent work by providing/sharing such information.I am very thankful to you.

I want to know, if i purchase ant online term plan from pvt sector ,
(1) What should be the claim process for online plan? ( If reuires)
(2) Will it be different from coventional( MANUAL) CLAIM process?

I am planning for HDFC Life Click 2 Protect plan for Rs. 1 Cr. I am 28 years old , married.

Thanks in advance… Have a nice day ahead..

Regards,
Hemal Patel

Posted on March 6th, 2012

Raja Nagendra Kumar says:

Hi,

I see many companies have given very poor claim settlement ratio, in such cases of rejecting due to some issue, can the party who claimed would he get back at least the premium paid in full with Interest or at least the principal..

Why not Insurance companies check before issuing the policy, while they can find the issue at settlements time.. Is this some kind of loose business game which Govt too supporting..

Regards,
Nagendra

Posted on March 6th, 2012

Raja Nagendra Kumar says:

What if the guy during the premium time, he was not smoking but in later stages one starts smoking or vise versa.. are all such changes needs to be informed to Insurance companies..

Posted on March 6th, 2012

Manish Chauhan says:

No

Posted on March 6th, 2012

Manish Chauhan says:

Raja

All the rejections happen when some facts are hidden by the applicants .

Posted on March 6th, 2012

Manish Chauhan says:

Hemal

Online or offline term plan both have same process . here is one template for claim for insurance : http://www.jagoinvestor.com/2011/01/financial-details-emergency.html

Manish

Posted on March 6th, 2012

Abhijeet says:

i wanted to buy hdfc click to protect but it does not cover me till 65..(im 48 now and it offers a term of 15 yrs to me..ie till 63 yrs..)..So i zeroed down icici as it too has a high settlement ratio as hdfc..but icici icare does not have medicals..i will provide all details as far as my health is concerned to the best of my knowledge but the company people say tht i will have to intimate them in case i have any health complications or get any adverse habits after taking the policy..so tht there would be no problems in claim settlement if a claim arises..im ok with that but dont understand how tht information will help the company as my policy is already ON and even if i have any health risk after taking the policy,the company will have to pay if a claim arises so why ask for intimations after the policy is in force…??

this is the practise with KOTAK also..would u explain the logic behind it..im thinking of finalising icici icare soon..what do u suggest

Posted on March 7th, 2012

Manish Chauhan says:

Abhijit

ICICI does not have medicals at all .. We cant comment on their logic, but better go with the company which you truly trust . Kotak or HDFC is good one to go with

Posted on March 7th, 2012

mahendra says:

Dear
I am 54 years old. I underwent heart bye pass surgery 12 years back.
I seek a reliable term insurance.

Pl advise

Posted on March 10th, 2012

Phani Kumar says:

Manish,
I want to take a term policy,Can you suggest me some good policies?

Posted on March 10th, 2012

Manish Chauhan says:

Phani

No recommendations. You have to choose depending on your study and trust .

Posted on March 11th, 2012

Manish Chauhan says:

Mahendra

All the term plans are reliable . What do you mean by reliable here ? If you give all the information correctly in the term plan , then all are reliable

Manish

Posted on March 11th, 2012

Sandhu says:

hi
this is the best way to know all term plans
sandhu singh

Posted on March 12th, 2012

Manish Chauhan says:

Thanks Sandhu

Posted on March 14th, 2012

Amrish Garg says:

Manish,

I have been told by LIC agent that Private Insurrer Sell term Plann Cheaper than LIC because they do not cover Natural Death and some other causes of death and LIC Jeevan Amulya covers all type of death whatever the reason may be.

Is it true?

Amrish Garg

Posted on March 15th, 2012

Manish Chauhan says:

Amrish

Total nonsense .. There is no such thing like that . All term plans are same . they all cover deaths of all kind . Please educate your agent , he needs it

Posted on March 15th, 2012

Sandesh says:

Hello Manish
I want know do you have a blog similar to this where i can find information regarding various Family floater Mediclaim insurance and ULIP plans….thankyou

Posted on March 17th, 2012

Sandesh says:

Hello
I work for a shipping company and i am out at sea onboard around 7-8 months in a year, that includes flight travel too while joining and sign off from ship. My question is does the above mentioned institution provide term policy for people working in high risk area and are riders covered all around the globe…..i am 32 yrs of age and recently i have taken a home loan….

Posted on March 17th, 2012

Manish Chauhan says:

Sandesh

Its little tough to get a term plan for you, because of the risk in your life, but you can try to apply , may be it will have more premium for you

Posted on March 18th, 2012

Manish Chauhan says:

Sandeshhttp://www.jagoinvestor.com/wp-admin/comment.php?c=40053&action=unapprovecomment&_wpnonce=f42f08d65c

Not exactly like this one , but there are many articles written on this topic – read them http://www.jagoinvestor.com/category/health-insurance

Posted on March 18th, 2012

Rahul says:

Hi,

I was coaxed into buying Jeevan Saral by a LIC agent 2 years back with MP of 10k. I was not knowing all the details at that time and new to insurance. I am only 25 years right now.
I want to exit that plan but they say u will loose 1 year prem of 1.2 lac and for the second yr get only 50% of the prem paid. so all in all i loose 75% of 2.4 lacs if i exit.

Please advise
thanks

Posted on March 19th, 2012

S Barman says:

Dear Sir/Madam,

I am now 40+ and Engineer in profession. I am looking for the policy for best life cover plan/policy with AD, CI, DR, WP at low premium.
Kind suggesion is solicited.

Barman

Posted on March 19th, 2012

Manish Chauhan says:

S Barman

Online policies generally do not provide all the riders . so you will have to look at offline options

Manish

Posted on March 19th, 2012

Manish Chauhan says:

Rahul

I think you will loose 100% if you surrender it right now . see this : http://www.jagoinvestor.com/forum/suggestion-surrender-cureent-lic-jeevan-saral-policy/2988/

Posted on March 19th, 2012

S Barman says:

Dear Manis,
Suggest me some best term plans of 50 lac assured value. I am 41 yrs.

Thanks
S Barman

Posted on March 20th, 2012

Manish Chauhan says:

S Barman

There is no assured value, its Sum assured. You get money only when you die. There are many options are your age, but as your age is 41 , the exact premium can be known only after medicals . there are options like aviva, kotak , HDFC

Posted on March 20th, 2012

kahnu says:

Dear Manish,

My company is offering a group term plan of 40 lacs, ( my CTC is 7 lacs) should I go for another term plan.

Regards
kahnu

Posted on March 31st, 2012

Saurabh Sharma says:

Hi manish,

When will the LIC online term plan option be launched?
Also tell me that , if any individual has to take term plan, does he needs to write date of birth written in School certificates or will they need birth certificate?

will it have any impact, since i am 1981 born but on records 1983 is being mentioned. pls suggest.

Regards

Posted on April 1st, 2012

YM says:

Hi Manish
A very informative article as usual. I have a few queries though.
I am 37. My annual income is 12 L. I have 40L term insurance from employers, 24 L from LIC. I need an additional 1 Crore term insurance which i plan to devide between LIC and pvt insurance company.
1. I was wondering if i should wait for LIC to reduce their premiums in the new financial year as was reported in the press a few days ago?
2. And what about online term plan from LIC which was also proposed to be launched this year.
Please enlighten me on these questions. Thanks.

Posted on April 1st, 2012

Manish Chauhan says:

YM

LIC term plan online will be coming in market , but you can never be so sure when it will really arrive . SO just see if you really want to take that chance or not .. else go with some other company

Posted on April 2nd, 2012

Manish Chauhan says:

If your life demands more than 40 lacs of cover, then you should go for it ..

Posted on April 2nd, 2012

kahnu says:

Dear Manish,

My home town is Bhubaneswar (Odisha), but I am working in Jharsuguda(Odisha). while filling the form in Aviva my current city is missing in the given list. should I mention Bhubaneswar to my current city i,e. can I mention my permanent address to my residential address? plz suggest ..

Posted on April 12th, 2012

A Mona says:

How important are riders in term insurance plans?

Posted on April 13th, 2012

Ankit says:

I am 23Years old, want to buy a term plan of 50lacs. can you suggest some plans within the annual premium of 5000.

Posted on April 14th, 2012

Manish Chauhan says:

Ankit

The cheapest for you would be Bharti AXA or AVIVA

Posted on April 17th, 2012

Manish Chauhan says:

A mona

Its a personal thing .. a rider may be useful for you , but not me !

Posted on April 17th, 2012

Manish Chauhan says:

Kahnu

Yes you can do that ..

Posted on April 17th, 2012

Prakash Patil says:

Hi Manish

Thaks for the useful info , it really cleared some of my doubts about Term Insurance.

I am 31 year old married and working in one of the MNC with having 10 lakhs CTC and i am planning to buy a term insurance and I have a home loan of 40 lakhs , please let me know which term insurance is best for me and what will be the best sum assured for me ?

Thanks

Cheers

Prakash Patil

Posted on April 18th, 2012

Manish Chauhan says:

Prakash

there is no “best” plan like that .. just go for any online term plan which you trust and whose premium you can pay easily .. you can calculate the sum assured for you at : http://jagoinvestor.com/calculators/html/Insurance-Calculator.html

Posted on April 18th, 2012

Biju says:

Manish,

Accidental death benefit of iprotect II is equal to the Sum assured ie 50 lakhs in my case (which means this rider is 100% of the sum assured)

But is there a clause from IRDA that the riders can’t be more than 25% of the Sum Assured ?

Posted on April 26th, 2012

Manish Chauhan says:

I dont think there is a clause like this from IRDA, but companies have their own clauses

Posted on April 28th, 2012

Nagesh says:

Manish,

one more qq from me..I have found HDFC life is also doing good in the market and bit cheaper then Kotak…HDFC is a good choice than kotak?

Thanks,
Nag.

Posted on April 30th, 2012

Manish Chauhan says:

Nag

You can never comment like this that company A is better than company B .. All you can do is choose based on your faith

Posted on May 1st, 2012

vijay says:

Dear Manish Sir
Your suggestion and advice is too good for everyone
my mother 56 years old we want to purchase the term plan of rs 50 lacs
she is pensioner approx 19000 per month . kindly suggest suitable term plan
online or offline

Posted on May 4th, 2012

basu says:

actually i feel vish is very true and to the point. even if lic agent is alive, i personally believe they roam around u until they are getting something out of it, like premiums u pay and more and more policies they introduce u with.
ultimately, no company is better than others. it basically depends on what true information u provided them and what they can show not to settle ur claim. if they will not find any flaw, they have to settle and if they are finding something- may it be lic or any insurer – they will deny ur claim. so i think we need to discuss more on
1) what companies look for to deny claim – can any body elaborate on it?

Posted on May 5th, 2012

Manish Chauhan says:

Basu

I will do a post on how to go about the claim settlement soon ,

Posted on May 5th, 2012

basu says:

hi manish,
nice blog…..can u provide us some information about how to go for an equity linked plan???

Posted on May 5th, 2012

basu says:

can u manish tell us how to decide for investment plans – equity linked??

Posted on May 5th, 2012

Manish Chauhan says:

Vijay

She can take it , no issues ,but I dont think she should take it , first the premiums would be really high , and she will anyways not get it over and above a limit age

Posted on May 5th, 2012

Manish Chauhan says:

You mean ULIP ?

Posted on May 5th, 2012

basu says:

they say, u should not combine investment with insurance. thus we learnt a lot from ur blog about how to go for an insurance(term plan) but can u guide us towards investment aspect especially long term …….i am not sure it is ULIP or not?

Posted on May 6th, 2012

Deepak M says:

Dear Manish,

I thought to take a term insurance policy but i don’t have an idea to which is good for me. am a 25yrs old, i am working in mnc and am recently got married. I already starts to invest Rs.8000/- in mutual funds in sip basis(different funds), i have already taken medical insurance for me and my wife but still i want to protect my dependent future. please kindly suggest me which online term insurance is good for me, don’t say it’s up to you/ research it/ no recommendation. kindly help me to choose a good online term plan. Your valuable suggestion might change my future better.

Posted on May 10th, 2012

Vasanth says:

Dear Manish,

I thought to take a term insurance policy but i don’t have an idea to which is good for me. am a 25yrs old, i am working in mnc and am recently got married. I already starts to invest Rs.8000/- in mutual funds in sip basis(different funds), i have already taken medical insurance for me and my wife but still i want to protect my dependent future after my death. please kindly suggest me which online term insurance is good for me, don’t say it’s up to you/ research it/ no recommendation. kindly help me to choose a good online term plan. Your valuable suggestion might change my future better.

Posted on May 10th, 2012

Vasanth says:

Hi Manish,

Last week i have taken jeevan anand policy from Lic agent that time he explained very clearly and cleverly, the other day i met my college friend he told me instead of taking Jeevan anand you must to take term insurance for protecting your dependent future. Then he asked me policy details so explained him the sum assured amount(20lacs) after maturity (10lacs) after my death(10lacs), maturity: 21yrs, and premium(Rs.4206/- permonth) details. He calculates and told me that the Lic agent guy cheated you, when i heard, i was bit shocked then he said; you going to pay Rs. 1059912/- for 21yrs but they going to give just 10lacs(after maturity) instead of taking that policy you can better invest in mutual funds(Sip basis).

Here i want to know two things:

1.) whether the jeevan anand policy is good or not?
ii.) if it bad means am going to cancel the policy, can i get my 1st month premium amount(Rs.4206/-) or not??

Help me sir

Posted on May 10th, 2012

Ramakant Singh says:

I am 29 years old Guy. I am working in private sector and want a buy Term Plan for safe / secure our family. i am not interested to invest money in insurance sector, but i want insurance our life.
I want buy one or two term plan for whole life of Amount Rs. 1 Crore.
Please advice which plan is better for me, and Why ?
Finally , I want pay very low premium.

Posted on May 10th, 2012

Manish Chauhan says:

Ramakant

There are various choices like Aegon Religare , Bharti Axa , HDFC

Posted on May 11th, 2012

Manish Chauhan says:

Vasanth

Just cancel the policy , you are the first person who has done the least damage (just 1 month of premium) , other every one commits 1 yrs of premium at least .. You can cancel your policy in first 15 days of getting the policy (called as FREE LOOKUP PERIOD) .

You will get more of your money ! . Just do what your friend said and dont leave him , he is good one :) .

Posted on May 11th, 2012

Manish Chauhan says:

Vasanath

As you have asked me not to say “it depends on you” . Let me then just say that you can go with Bharti Axa or HDFC , these are the 2 new term plans in online market and their premium is cheap . Make sure you give all the info in the forms properly and correct .

Posted on May 11th, 2012

Manish Chauhan says:

http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-43635

Posted on May 11th, 2012

Vasanth says:

@Manish,

Thanks, Thanks, Thanks a lot. i called that Lic agent he told me, i will get my policy doc’s on 20th of May only, so once it comes i will cancel it. Here i have 1more question how to cancel my policy within first 15days(free look period)?Can i approach the lic agent to cancel the policy or i can directly cancel it? becoz i transfered the premium amount(Rs.4260/-) to that agent account, if i cancel it know they will credited the same into agent account only? then how can i get back my money??

Note: i called that agent he said don’t cancel the policy sir it will helps to you in future believe me/Trust me……. I don’t know what to do kindly help me

Posted on May 11th, 2012

Manish Chauhan says:

Vasanth

from your last line , I can clearly see that you are still not convinced if you should go ahead with this policy or not . The first step is that you should make yourself beleive if you want it or not . Can you give me one reason why you want to go for this policy ?

Coming to the main issue , The first mistake which you have done in your financial life is giving money in agents account ? I would like to be a little harsh here . Dont you know that you should not have done it . When you are buying a policy from a company , what is the logic of paying the money to agents account ? What is he runs away ! , You are now in a situation where you can even ask the company anything nor ask the agent (because he will say that he has processed the things) . Note that your agent will get 25% of your premium in the first year and 5% there after .

Ask him you are not interested in the policy , go to him and talk to him (record the conversation on phone if possible) , then tell him that you dont want it and he should help you , else you would like to contact IRDA for complaining and get his licence cancelled (you can really do that , atleast complain)

Manish

Posted on May 11th, 2012

Vasanth says:

Hi Manish,

I liked the way you answer for my queries. anyways nice blog, nice peoples and good sharing. Keep on rocking sir.

I thought you would have suggest kotak for me, becoz above archieves i have looked your replies so, i am bit surprised you suggested HDFC/Bharti Axa for me. anyways i has got valuable info and advice from you, so once i will be cancelled my Jeevan anand policy am going to apply a new term policy thru online.

Posted on May 11th, 2012

Manish Chauhan says:

Vasanth

thats because if I give you 3-4 options ,you will again try to find out the best one amount them .. Kotak is another good option and truely speaking any company is fine as far as you give right information and understand the product . With just 2 options given that chances are high that the action will be taken fast . What do you have to say ?

Posted on May 11th, 2012

Vasanth says:

@Manish,

No, when he approached me, i doesn’t have sufficient amount in my account so he said no problem sir, i will give it from my account and you can transfer me whenever you get it, thats why i transfered or else i always used to give cheque only. I invested in mutual funds via this guy; he is not only lic agent he is a financial advisor also, so if i told to cancel the policy means is there is any possibility of getting low returns /profit from mutual funds. i know am asking very silly questions but i don’t have an option becoz am a first time invester thats why these many questions. sorry manish.

Posted on May 11th, 2012

Vasanth says:

@Manish,

Very true………. Here i have to accept my fault first becoz i didn’t take an advice from my senior’s, i just spoke to my collegues only they only given this option to choose jeevan anand. Now am clear whatever doubt/question comes to my mind, first i have to check with experts like you. am happy with the way you answer and your patience. Truely saying you are my good adviser.

Posted on May 11th, 2012

Manish Chauhan says:

Nothing to be sorry here .. I am just trying to help you .

I am not questioning the intention or integrity of the advisor . He is doing what he wants to do . But you should be aware about the implications of what happened. To just make sure you do the complete full proof work ,always make sure that the payment is done via cheque or some way where it can be proved that you made payment . Tomm how do you prove that you made the payment ? The money went from Agent account or his cheque , thats the issue .

Also note that why are you buying this policy ? For returns or for protection point of view .. because endowment plans will just give you near 4-5% return in long run and hardly any insurance . Do you know that Jeevan Tarang gives you just BONUS money at maturity and no SUM Assured ! . if will give you yearly pension after the maturity @5.5% of SA . This might turn out to be a bad product for you when you look back .

Ask your agent to give you strong reason and comparision between Jeevan Tarang and Term plan + MF over a long 15-20 yrs period .

Also my suggestion is to first learn a bit more on personal finance and then start your investments .

Manish

Posted on May 11th, 2012

vineet says:

Hi, Ive taken Family health optima policy from Star Health for self, spouse and 1 kid for 10L. Kindly let me know if Ive taken a right decision.

Posted on May 14th, 2012

Manish Chauhan says:

Yes .. its a good one and suggested

Posted on May 14th, 2012

vineet says:

Thanks Manish.

Posted on May 15th, 2012

MAYURI says:

MANISH, I AM LOOKING TO BUY AR FOR MYSELF AND MY HUSBAND. REASONS- LOWER PREMIUM, GOOD ONLINE RIDER COVERAGE. IS IT A WISE DECISION OR YOU RECOMMEND SOME OTHER COMPANY?

Posted on May 16th, 2012

Manish Chauhan says:

If you trust the company , then you can move ahead

Posted on May 16th, 2012

dhirendra kumar says:

I have Aviva plan for a crore , the time I took Aviva was one of the good life insurance policy holder ,Now Looks like in market there is more better premium calculation companies. I had plan to reduce from Aviva 1 crore to 50 lakh and take 50 lakh from other insurance provider so that in worse case my dependent shd get some money from either one .. Please suggest which other company I shd opt for ..
do Aviva company will consider my case for reducing my insurance premium do they have any such type of things

Posted on May 17th, 2012

Manish Chauhan says:

Aviva will not reduce the premium like this , you need to close that policy and take a new one for 50 lacs . the other options you have are Bharti Axa or HDFC

Posted on May 17th, 2012

MAYURI says:

We do not know much about the company to trust or distrust it. I request you to recommend options which provide good riders and competitive pricing. AR features low on the service ratings but high on features n price.
please recommend between AR, Aviva i-life, Bharti Axa.

Posted on May 21st, 2012

Anand Nanoti says:

Hi Manish,

I am planning to buy Birla Sun Life Protector Plan which is a Term Plan. I am specifically impressed by its Waiver of Premium Rider, which I couldn’t find in any other plan. Please let me know how well is Birla Sun Life’s claim settlement ratio. My requirement is Sum assured of 2500000 for term of 30yrs. Please suggest.

Posted on May 22nd, 2012

Manish Chauhan says:

In offline , you have options like Kotak or Aegon with riders

Posted on May 22nd, 2012

Manish Chauhan says:

Anand

Why are you so impressed with it ? I know its a good thing , but then you pay a cost to it, it does not come for free .. I would say you can go with Birla (or any company) if you make sure you are telling them truth while filling up the form .

Manish

Posted on May 22nd, 2012

Manish Chauhan says:

In that case , better take an accidental insurance seperately, that will give you more riders in small cost : http://www.jagoinvestor.com/2011/12/accidental-insurance-policies-in-india.html

Posted on May 25th, 2012

Nag says:

Hi Manish,

I was about to opt for Birla sun life protector plus plan..need review on the same..

Thanks,
Nag.

Posted on May 25th, 2012

Manish Chauhan says:

If its not a term plan ,then dont go for it

Posted on May 25th, 2012

Nag says:

it is a term plan…please write your opion on this product…

Posted on May 25th, 2012

Tushar says:

HI Manish
Thanks for this. I never thought of this option. Actually you have saved my lot of money.
I have decided to buy Accidental policy separately now in spite of taking term insurance clubbed with rider as it is comparatively cheaper.

I went through your post for this and found Bajaj Allianz’s Personal Guard is best from all perspective but I am not sure whether your report showing SA=200% in case of Permanent Total Disability is sure or its typo error.

I have visited companies site and found that maximum SA is 125% in case of Permanent Total Disability. I may be wrong but dont want to take chance with this.
So can you please confirm me this?

Posted on May 25th, 2012

Manish Chauhan says:

Actually 200% SA is in one of their premium option, for normal one its 125% only . Just go for it , dont overanalyse !

Posted on May 26th, 2012

Pankaj says:

Hello Manish,

Here is a simple question – Which company should I go for (Term plan) (On Claim basis)?

Posted on May 28th, 2012

Manish Chauhan says:

LIC

Posted on May 29th, 2012

KANDHASAMY says:

good information

Posted on May 29th, 2012

ramanaw says:

Hi,
Is birla term policy is better or which term policy is better,i am planning to take one my age is 30

Posted on May 30th, 2012

Manish Chauhan says:

You can consider one from Kotak or Aviva if you are planning to go online

Posted on May 31st, 2012

gaurav says:

What are the pros and cons of Birla Sun Life Insurance’s term plan?

Posted on May 31st, 2012

Manish Chauhan says:

There is nothing like that , all term plans are same .. Just that premiums might be more or less at times

Posted on June 1st, 2012

Manish Chauhan says:

Rajesh

1. There should not be any issue, however for your peace of mind , you might want to consider medical tests
2. No , groop cover are not to be disclosed
3. No

Manish

Posted on June 2nd, 2012

Rajesh jain says:

“if you are involved in any of the illegal activities and death occurs”, then this type of death is not covered in term plan .

According to me “illegal” is a very broad term.

Driving while consuming alcohol is also illegal
6 people Travelling in a tourist taxi with 4+1 limit, is also illegal
Jumping traffic signal is also illegal.
diving without helmet in samll cities also illegal

So if death occurs, in the course of above illegal activities, then company might reject the claim.

Please help me to clarify on my doubts.i am not satisfied your above answer of reject the claim in such cases.

are u sure , in such cases company will reject the claim .?

Posted on June 4th, 2012

Manish Chauhan says:

Yes , these are illegal activities and claim will be rejected

Posted on June 4th, 2012

ramanaw says:

Hi Manish,
Thanks,otherthan Kotak which is better option what about Birla

Posted on June 5th, 2012

Vaibhav Agarwal says:

Hello Manish

Amazing insight over the issue of term insurance. I have a query.
I want to opt for term plan for 25 years with 1 crore cover, where I should go.
As I am completing 25 years on June 18 so does the premium would increase if I enroll the policy after that.

Posted on June 6th, 2012

Manish Chauhan says:

No , they take nearest birth day

Posted on June 6th, 2012

KK says:

Hi Manish – I have a LIC term plan of Rs. 25 lacs and I am looking for one more term plan of Rs. 50 Lacs from some other Pvt.company.
I checked this site and some other sites where I found ICICI iprotect and HDFC Term plan to be good.
Can you suggest which one is better – ICICI or HDFC. ?

I am 34 years and looking for term insurance which can cover me for max number of years – say 65 to 70 years.

Thanks
Kishore

Posted on June 6th, 2012

Manish Chauhan says:

KK

Now ICICI iProtect is called as iCare and there are no medicals in that plan , hence the premium are higher . I would say you can go with HDFC if you trust it .

Posted on June 7th, 2012

KCS says:

Hi Manish,
I did an online term policy with AVIVA for 1 crore.
In the application form i declared that I had broken my right leg in an accident 10 years back. there was an operation in broken leg.
After that they asked me for a medical test which is completed . but now they are asking me to submit medical discharge report of my fractured leg to proceeding my application. I repeatedly requesting them to ask their doctor to check my fitness and generate a report as that accident was happened 10 years before but they are stubborn with the medical discharge report. what to do please suggest.

Posted on June 8th, 2012

Manish Chauhan says:

I think tell them you do not have it right now and tell them you want your money back !

Posted on June 8th, 2012

Hitesh Daka says:

Dear sir,
My Self Hitesh Daka
Age : 22 yr ,
DOB : 14/01/1990

Sir,
I wants to know which is best Insurance palne for me ,
Currently I m working with MNC,

and I wants Tax benifits and returnts ,
So, plz tell me,,
Which LIC policy is best for me,
I m going through LIC , b’coz I believe on Gov.

Thanks,
Regards,

Posted on June 8th, 2012

Hitesh Daka says:

Dear Sir,
tell me best LIC Plan,

Posted on June 8th, 2012

Krishna Kishore Appala says:

Dear Tarun ,

This is answer for your 5th point.

According to the government policy , if a new private firm want to enter into the insurance business , it has to be collaborated by another “International firm” , which is in same insurance business from past over 100 years.

For example : You can see ICICI + Prudential (US firm , from 1875)
Bharati + AXA (Europe , from 1816 )
Bajaj + Alianz (Germany , from 1891)
Birla + Sun Life (Canada , from 1865)
Tata + AIG (China , from 1919) etc

So , the risk of company defaulting are minimal (i say negligible).
This is solo reason why government has passed that rule.

So , just figure out the claim ratio , and no need to worry about company defaulting.

Thanks and Regards
Krishna Kishore Appala

Posted on June 9th, 2012

Alex says:

Which is the best option as of now to invest with an yearly premium and to get a monthly income of around 50000 after maturity/pension?

Posted on June 9th, 2012

Manish Chauhan says:

I would say mutual funds

Posted on June 10th, 2012

Manish Chauhan says:

Hitesh

first read this – http://www.jagoinvestor.com/2011/08/lic-policies.html

Posted on June 10th, 2012

Navin S says:

Hi
I already have Rs. 50 lacs term cover from Aviva i-life. However want to have additional 50 lacs term cover.
I have heard that LIC is coming up with its online term plan where the annual premium is expected to be much more lower than its currently available term plans.
Does anyone have any idea when LIC is going to introducing online term lan?
Thanks
Navin

Posted on June 10th, 2012

Manish Chauhan says:

They said they will launch it very long back (1 yr back now) , i think it will take much more time .

Posted on June 12th, 2012

KI says:

Are riders good in term plan.
And what do you think about i-Life Aviva India?

Posted on June 13th, 2012

Manish Chauhan says:

All riders are good only , you need to see which one is required in your life . Aviva is good option overall

Posted on June 14th, 2012

KCS says:

They are ready to return my amount after deducting my medical charges. Its their mistake why I should pay for that.

Posted on June 14th, 2012

Manish Chauhan says:

If you have mentioned something like that , obviously you should have it , you should have kept it , because these kind of reports are needed in future IF YOU MENTION THEM SOMEWHERE .

Posted on June 15th, 2012

vishal vashisht says:

then what about sbi
is there worry of default because no partner

Posted on June 15th, 2012

Imran says:

Hi Manish,

Awesome research and very good content.
I am a software professional, aged 31 yrs, married having 2 kids.
I want to go with the term insurance for 1 cr. After reading all the conversations here I have decide to take 50 – 50 approach without any riders (I want to have separate policy for accidental issues).
I am planing to go (NON-Online) 50 L with KOTAK preferred/ICICI and 50 L with SBI/HDFC .
Kindly let me know if my decision is correct and which 2 companies to choose from the above short-listed companies as regards to their performance, respect and future stability.

Posted on June 18th, 2012

Manish Chauhan says:

yea I think you can go ahead !

Posted on June 19th, 2012

Geet says:

Hi Manish,
I have taken a 50 L Term Plan from ICICI Prudential, the concern is that the policy was taken online and the payment towards it was made by someone else’s card(1 st premium) as I was not aware of the clause of taking it from my card at that time.I have paid 2 premiums, the 2nd payment in cash.Kindly confirm
1.whether this policy is valid
2.If I want to take a higher SA and not continue with the 50 L policy, should the details of the 50 L policy be mentioned in the new policy.

Posted on June 21st, 2012

Manish Chauhan says:

Geet

1. NO , its not a big worry , but ideally you should give money from your source only , How will you claim the tax deduction when you give it from some one’s card ?

2. If policy is ACTIVE , then you have to . If you close off the first policy and then take a new one , then you dont have to

Posted on June 21st, 2012

Geet says:

Thanks Manish for the quick response.

But kindly clarify

1. Is the policy valid if the 1st premium is paid by someone else’s card. Will there be a problem at the time of claim?

Also, If I state the details of a policy while taking another and the first policy lapses then will it have a bearing at the time of claim of the second policy.

Posted on June 21st, 2012

Manish Chauhan says:

1. Yes, It is valid

2. No

Posted on June 22nd, 2012

VJ says:

Hello, Manish! Your information has always been informative to the general public. Thank you.

I am 54 years old and propose to take a term insurance for a minimum of INR50L. Which vendor would you recommend? I have no health problems and do not smoke or drink, though I am willing to go through a comprehensive health check if required.

Posted on June 22nd, 2012

Manish Chauhan says:

You can take it from any company , just make sure you provide right info in form , your premium will really be very high , is your family too much dependent on you for money ?

Posted on June 22nd, 2012

Rajiv says:

Hello Manish,
It would be good to revise and update all the charts to their current status. This will make it more relevant as many aspects will have changed since 2010 and the finance budgets may also have impacted these terms plan insurance companies.

Would be happy to know how things stand as of now.
Thank you,
Rajiv

Posted on June 24th, 2012

Sharan says:

Hi Manish,

I am looking to buy an online term plan. I am looking for a coverage of 80L – 1Cr. My age is 26 , non smoker. I checked out the quotes from Kotak, Aegon Religare, Aviva, HDFC and Bharti AXA and found Bharti AXA to be the cheapest by quite a difference. Going through some of your responses in the posts above, I too felt going for separate Accidental/Critical illness cover is better as most of the online term plans are standalone. Aegon Religare offers a Waiver of Premium for Cancer/Coronary Artery Bypass Surgery/ Heart attack/ Stroke only and also offers a long policy term of more than 30 years, but is a little expensive compared to Bharti AXA. But the policywala site showed much better Claim settlement data for Bharti compared to Aegon.

I have gone through this site and absorbed most of the tips given in articles and the Term Insurance e book, but I am still finding it difficult to make the final choice. Also read about few scary experiences.
Looking for any suggestions, at the nth moment to help me go ahead with the best plan.
Thanks in advance.

Posted on June 26th, 2012

Sharan says:

Hi Manish,

I am looking to buy an online term plan. I am looking for a coverage of 80L – 1Cr. My age is 26 , non smoker. I checked out the quotes from Kotak, Aegon Religare, Aviva, HDFC and Bharti AXA and found Bharti AXA to be the cheapest by quite a difference. Going through some of your responses in the posts above, I too felt going for separate Accidental/Critical illness cover is better as most of the online term plans are standalone. Aegon Religare offers a Waiver of Premium for Cancer/Coronary Artery Bypass Surgery/ Heart attack/ Stroke only and also offers a long policy term of more than 30 years, but is a little expensive compared to Bharti AXA. But the policywala site showed much better Claim settlement data for Bharti compared to Aegon.

I have gone through this site and absorbed most of the tips given in articles and the Term Insurance e book, but I am still finding it difficult to make the final choice. Also read about few scary experiences.
Looking for any suggestions, at the nth moment to help me go ahead with the best plan.
Thanks in advance.

Posted on June 26th, 2012

Manish Chauhan says:

You should now pick one randomly ,because over analysis is preventing you from taking decision . JUst pick one , just pick it

Read this : http://www.jagoinvestor.com/2012/05/is-looking-for-perfection-killing-your-financial-life.html

Posted on June 27th, 2012

Manish Chauhan says:

Will make that change very soon

Posted on June 27th, 2012

jayesh chandriani says:

When do u think tyhe online LIC term plan isgoing to be out?

Posted on June 30th, 2012

jayesh chandriani says:

Hi,
i am 51 and i am underinsured and i am deciding on the LIC amulya jeevan and ICICI-iprotect combination as these are the only plans offered for a higher term. i think thas avery imp. factor.. as otherwise all your plans and invested money goes.

Any suggestions?
When do u think the online LIC termplan is expected?

Posted on June 30th, 2012

Dr. srinivas says:

hi manish. i would like take a term plan around 75 lacs. my age is 30 years. my annual income around 5-7 lacs. my will income will increase as i am a doctor. so can you suggest me which one is better single policy or mix up. in case double policies help to choose company. thanks

regards.
Dr.srinivas

Posted on June 30th, 2012

Manish Chauhan says:

Dont complicate it , just take a plain term plan online for 75 lacs or 1 crore . As you are 30 yrs old , it should not cost more than 10k per year :) . Just go for action now , no complication .

Posted on July 1st, 2012

Manish Chauhan says:

No idea when the online term plan from LIC will come , but you can go for the regular term plan at this moment .

Posted on July 1st, 2012

Manish Chauhan says:

Jayesh

No idea :)

Posted on July 1st, 2012

Rohit says:

Hi,
Thanks for the detailed information. I have some queries. It will be good if you can guide me on the same.
I need Term Insurance coverage of 1 Cr. Selected companies by me is i-Life from Aviva. The reason are as follows….
Max age cover till 70Years
Yearly premium is approx 12K
Claim settlement ratio is 86%
Rider coverage of Death & Critical Illness. 12 Critical illness are covered in the plan
(Critical Illness plays a role of Medical Insurance as well in other ways if not exactly)
It covers both Accidental & Natural deaths…

Also some of the not very good points of Aviva are…
Claim settlement Ratio is not very high such as 99% or 100%
Hard premium grace period of 30 days
i-Life can only be bought online

After viewing your review, I am thinking now to make it 50L for Aviva & balance 50L towards Kotak Preferred.

Pls guide me if I am right in my thought process & which step should I take.

Also in the next couple of months I will be taking Medical Insurance as well.

Tnx
Rohit

Posted on July 1st, 2012

Dinesh Bhat says:

This data is very useful. Do you have any latest data collected during 2012-13/2011-12?

Thanks,
Dinesh

Posted on July 2nd, 2012

Manish Chauhan says:

Will update this chart soon

Posted on July 2nd, 2012

Dinesh Bhat says:

Thanks Manish for your quick response. Please update at the earliest if you can. This data is missing from almost all the websites that I come across. Thanks for having such a unique data.

Posted on July 2nd, 2012

Manish Chauhan says:

Yea you are going right , Kotak Preffered is also a offline option . Go for it .

Posted on July 2nd, 2012

Yogesh says:

Dear Manish,

I have completed 33 years on 10th. I am married with 2 years of daughter.

I am intrested to purchase term insurance of 50 lakhs (Slit 30 lakhs from LIC + 20 lakhs form Private) with term of 25 years.

I have liability of 40 lacs (36lacs house loan + 4 lacs of car loan).

Please suggest me how to go ahead with following questions?

Is my split right?
Which private company is better (online & offline)?
Is riders really necessory?

Regards

Yogesh

Posted on July 3rd, 2012

NSK says:

Vishal,
SBI is not a small player like a newly entered private insurance co. Besides its govt. backed. So relatively less risky. its indias largets banking co.
Regards,
NSK

Posted on July 4th, 2012

Manish Chauhan says:

Your Split is ok, there cant be right or wrong in this , it depends on your comfort with LIC , the higher it is , the higher number with LIC

All companies are same, but you should take it from the company you trust

No , its not mandatory, its only when you need them

Posted on July 4th, 2012

Rahul raut says:

Hi Manish,
Thanks for this article!
When will the LIC online term plan available for buying on internet? Do u have any info?
Regards

Posted on July 9th, 2012

Manish Chauhan says:

NO idea :)

Posted on July 9th, 2012

Aravind says:

Dear Manish,

I am an NRI(Kuwait) and would like to go for the Term insurance for 1 Cr, request you to suggest me the best product for me.

Rgds
Aravind.

Posted on July 9th, 2012

Manish Chauhan says:

You should look at some offline term plans like Kotak

Posted on July 9th, 2012

Aravind says:

Do you have any information of Kotak term plans available for NRI’s. Because one of the financial advisor told me that there are no term plans available for NRI’s except Future Generali’s Smart Life. ANd I enquired with LIC people also , they too told me the same answer that they are not offering term insurance for NRI’s.
Will be grateful to you.
Arvind

Posted on July 9th, 2012

Manish Chauhan says:

Yes its tough for a NRI to get a term plan , but there are companies which will give you offline term plans , its not just Future generali , but several others do give . Its not possible to exactly list them down , but you will have to enquire more on this with each company !

Posted on July 9th, 2012

Aravind says:

Thanks Manish.

Posted on July 9th, 2012

Manish Chauhan says:

So what should a 30 yr guy do if he wants a cover for 1 crore ? What are your suggestions ?

Posted on July 17th, 2012

Manish Chauhan says:

Aj

More than the company , what matters is your trust level with the company . AR is overall good enough . you can go with it , just make sure you give all the information correctly !

Posted on July 17th, 2012

Shashi says:

Is the claim given to family on unfortunate death of the insured person, taxable in term insurance?

Posted on February 22nd, 2013

Manish Chauhan says:

No

Posted on February 25th, 2013

Shashi says:

Thanks Manish. As I have heard in some TV programme that every policy has tax in one or other form, either during purchase, or premium or returns.

Also, I am looking for term plan. What would you suggest, single plan (may be 40-50 lakhs) or multiple plan (10 or 20 lakhs each). My age is 42, so not going to be low premium.

Thanks in advance
Shashi

Posted on February 26th, 2013

Manish Chauhan says:

I dont think so .. There is no tax on term plans .. May be you are talking about the “premiums”

Posted on February 27th, 2013

chandrima says:

We want to purchase a term insurance for one crore. My spouse is 45 years . We want it for 30 years (that is the max. term acc. to my knowledge ) . He is a smoker . Which is the Best Company with a reasonable premium amt. & with the best claim settlement ? Does he need to add any rider ? ( He already has riders in other general life insurance. )Suggest the best 2 companies online & offline , taking all the required things into consideration .

Posted on February 27th, 2013

SHARAD RASTOGI says:

Dear Manish now I am 50 yrs old having spouse and two daughters. I have taken Five policies from LIC of India which covers my life upto 20 lacs in case of death. I want to purchase term plan of 50 lacs more. I am casual smoker and having good health.
Kindly suggest me from which insurance company I should purchase & should I opt for riders also.

Posted on March 1st, 2013

SHARAD RASTOGI says:

Dear Manish I want to add one more thing Which company should I go for (Term plan) (On Claim basis)?

Posted on March 1st, 2013

Manish Chauhan says:

You can look for companies like Kotak, Aviva .. if you go for LIC right now , it will be very high premium for you

Posted on March 1st, 2013

Manish Chauhan says:

Go for companies like Aviva or HDFC

Posted on March 1st, 2013

chandan says:

Hi Manish,

have you considered the possibility of some of the insurance companies closing down. So would taking a policy with LIC a better option.

Posted on March 3rd, 2013

Manish Chauhan says:

Chandan

I think IRDA is the one who takes care of these.. I dont think you should worry about this a lot

Posted on March 3rd, 2013

ramesh says:

hello manish,
this is Ramesh,49 years old govt employee,non smoker and earn 4to5 lakhs per annum i had already 8 lakhs lic policies and 2 lakhs private insurance policies, i am looking for 16 year online term policy with 50 lakhs sum cover.Which one is the best among AVIVA I LIFE,AR,BHARATHI AXA Term palns

Posted on March 4th, 2013

Nikhil says:

Hi Manish

I will probably take a term insurance in a few months time. And I have been following your posts (got your books today as well :) ) for quite some time. If I look at term insurance from the insurer’s perspective and dwell why there exists companies selling term insurance and if they do exists they must be making at least some profit. Every penny they get is ultimately invested by the company and they pay the money because they get returns from these investments. And the reason for very low annual premium to S.A. ratio is that it works on the probability of the customer dying within 30 years (the policy term) which being very less puts the insurer where very few policies end up being called for claim.

Now If I go by investing the annual premium amount in some instrument every year and get returns for 30 years then I can get an amount very close (if not equal) to the claim amount that I would get If I die. And to be practical and factual; there is very small chance of someone dying at an early age of < 55. The medical and post-accidental services have improved a lot in India.

So my question is: Should we consider buying a term policy OR can there be a better investing solution for this? You know I am asking this question but still gonna ask as taking an insurance relieves your mind about future; but still out of curiosity would like to know!

Thanks
Nikhil

Posted on March 5th, 2013

sandeep says:

Hi Sir,
I am 31 years old male , smoker and drinker (Occassionaly) govt. employee, Salary 5-6 lakh P.A., married, having 1 year old girl. I want to take term insurance for me. Please suggest best term insurance plan for 75 lakh and 1 crore. Please suggest.

Posted on March 7th, 2013

Syed Rizvi says:

Dear Manish,

After Your wise advise I had purchased the health plan for me and my family. My age is 43 yrs and now again I am seeking your advise on best term life insurance plan for me. Kindly let me know about the same as I want to go for this asap.

Thanks and regards,
Syed Rizvi.

Posted on March 7th, 2013

Manish Chauhan says:

Go for Aviva ilife or HDFC click2Protect !

Posted on March 8th, 2013

Manish Chauhan says:

You can go with Aviva iLife !

Posted on March 8th, 2013

Abhijeet says:

Hi Manish,

Did you noticed SBILife also floated online term insurance (eSHIELD), & if we see the premium its Rs. 13135/- inclusive of taxes, for 30 yrs old non-smoking male, and 30 yrs policy tenure & 1 Cr. SA, pretty competitive I think

I think nice to have 1 more option & that is too from SBI,

Your Views Please,

Posted on March 13th, 2013

Manish Chauhan says:

Nikhil

But why you are getting into that question of “investing the money” .. the motive for taking a term plan is not investments , its security !

Posted on March 13th, 2013

Manish Chauhan says:

Go for Aviva !

Posted on March 13th, 2013

Nikhil says:

Hi Manish

I am 24 years now and unmarried. My term plan goal is to serve my parents and sister in case I die. I calculated the premium for a 30 yr policy worth 1 cr to be 8600 plus tax (click2protect). But then a thought occured to me that after 5 years I will be married and sometime after have children too. Then I would again need one more insurance (say 1 cr). Now for future me (after 5 yrs; with age 29) I calculated the premium for a 25 yr policy and to my surprise it turned out to be 9700 (12.8 % higher than 8600).

So the whole situation is like:
Age Term ProtectionUpto Premium
25 30 2043 8600
30 25 2043 9700

So my question is: Isnt it better to have the 2nd planned policy to be taken now instead for waiting for 5 years? Notice that in both cases the protection is till 2043!

Posted on March 13th, 2013

Nikhil says:

More clearly:

Age—Term—-ProtectionUpto—Premium
25——30———-2043————8600
30——25———-2043————9700

Posted on March 13th, 2013

Pradeep B says:

Hi Manish Ji
I am 31 Year old and I want to take TERM Insurance soon as my DOB is on 22nd Mar and my age will be 32. I want to take before 22nd to avoid increase of Premium. I seen in your reviews that AVIVA is a better option, actually i have shortlisted HDFC(Reason for sellection: For Decent Claim settlement ratio next to LIC which is having very high premium for the same SA) & Bharathi Axa(Reason for sellection: As Policy Bazaar Officer has told that apart from Claim Settlement ratio we have to fill the details honestly so that the company may not get chance to reject the claim). I have included AVIVA in the list as you have mentioned that it is having Accident Rider and also as you are +ve about the company.

Now with three options I am totally confused about which plan to take. Kindly suggest one from the three
1. Bharathi AXA
2. AVIVA
3. HDFC

Also plz let me know if 30 Yrs policy term is OK or shall I increase or decrease the policy term

Awaiting for your reply sir

Posted on March 13th, 2013

Neel says:

Hi Manish,

As you said about Illegal activities.. Illegel activities in which claim are rejected are thise which go in criminal courts.But Jumping a signal and more people in cab are subjected to go in Civil court.So should not be termed as illegal activities or ground to reject claim.

Regards
Neel

Posted on March 14th, 2013

Nikhil says:

I think if you do not deliberately try to kill yourself (like suicide OR giving a “supari” to kill urself :)) then it should not be an issue!
Also disclose your earlier policies and any health issues while taking a new policy!

Posted on March 14th, 2013

Gangi says:

Dear Manish,
I just completed second chapter of “16 Personal Finance Principles Every invester should know” – Thank you for the nice book.

Was there any Term insurance available in Market with ‘Disability Rider’ and ‘Critical Illness’?
I will waiting for your reply, Please…

Posted on March 14th, 2013

KUNAL says:

Dear Manish,

Request you to kindly update the latest data of term insurance policies and claim settlement ratios as we are planning to take a term plan for 50 lacs in April 2013.

Thanks & regards,
KUNAL DHOTRE

Posted on March 15th, 2013

Dileep says:

Hi Manish
You have written a wonderful article. I am 24 yrs aged and like to get a term plan that will cover me till I am 65(effectively, a 40 yr term). I am looking for a cover of 1 crore. Most companies I see have only 30 yr coverage. Which private companies offer coverage for 40 yrs?

Posted on March 15th, 2013

Rishikesh says:

Hi Manish,
I have query regarding term insurance plan. I am 25 yr, Non smoker and drinker as of now, Want to by 1Cr (22*Income I fulfill this criteria) insurance cover but in two policies, 50 Lakhs each.
I am confused in HDFC LIFE,Bharti AXA, and AVIVA…. Can you please suggest ?

Posted on March 16th, 2013

Ashis says:

Hi Manish,

First of all Really thanks a lot for all your wonderful posts.

Below is my case:
1-Age: 25,Male,Salary:10Lac/A
2-Got Jeevan Anand of 750000 SA with normal death cover with 25yr term.(I am sure you know the dealth cover offered by Jeevan anand)
3-Single & literally no dependants except in somecases I do help my parents.

Now please advise me if I should go for a pure term cover? (If Yes,is 50K for 35yrs term will be Ok?)

Thanks in advance.

Posted on March 18th, 2013

Ashis says:

Hi Manish,

Sorry..its 50L for 35 yr term not 50K :)

Posted on March 18th, 2013

Manish Chauhan says:

Yes that looks good to me given your case !

Posted on March 19th, 2013

Ashis says:

Hi Manish,

Thanks.

Might be it should be a personal choice but I would like to take your suggestions between Aviva or Aegon??

Please suggest with your feedback.

Posted on March 19th, 2013

Manish Chauhan says:

Aviva

Posted on March 19th, 2013

Manish Chauhan says:

Aviva and HDFC

Posted on March 19th, 2013

Manish Chauhan says:

Aegon religare will give for 40 yrs !

Posted on March 19th, 2013

Manish Chauhan says:

the data is latest only

Posted on March 19th, 2013

Manish Chauhan says:

Aegon has it

Posted on March 19th, 2013

Anand says:

If your liability is 40 lakhs and you are going for 50 lakhs of insurance, then effectively you are insured only for 10 lakhs and this is very very less. It is just not enough. Give it a thought.
IMO, you should go for 1 crore term plan with a single company. If you declare everything correctly, then no need of worry.

PS: I am in the same boat.

Posted on March 19th, 2013

Manish Chauhan says:

More people in cab is not in your control , but jumping a signal is in your control . The point is were you irresponsible to your life ?

Posted on March 19th, 2013

Manish Chauhan says:

go for HDFC then .. no issues

Posted on March 19th, 2013

Manish Chauhan says:

You can do that . note that future is uncertain and premiums numbers etc for new client can change .. so if you want to lock on the numbers today , go ahead

Posted on March 19th, 2013

Vyky says:

Dear Manish,

I am a fan of Jagoinvestor, i come across your suggestions through your site, now and then, whenever i look on the internet for any of my financial query.

This time i’m bound to write as this seems the best place to ask which term insurance will be suitable for me.

My details: Age-29 yrs, married, Age of my husband-30 yrs, we have 1 kid of 3 yrs, My husband’s salary – 6.5 lac+ annually, My salary – 10 lac+ annually, No smoking habits, no medical issues as best known to me.

I want a term insurance of 50L for 30 yrs from LIC and 50L for 30 yrs from HDFC, but I am confused whether I should buy term insurance for only my husband or me or we should buy it for both of us.

Pls suggest..

Posted on March 19th, 2013

Ashis says:

Hi Manish,

I went ahead with Aviva for 50lakh.
But Aviva team called me & suggested to go for 1Cr as I am eligible for upto 2.2Cr.

please suggest whether to go with 1Cr or 50lakh?

Awaiting your quick reply so that I can buy the plan today itself.

Posted on March 19th, 2013

param says:

hello manish,
i am following your website and your reviews for sometime now. one of my friend recommended me your website since i was looking for investment advice.
i am a doctor and 31 now and i am doing superspecialization and unmarried now. right now i do not earn anything as it is my training period. but after 3 years, say jan 2016, my earnings will be in the range of 1.5 to 2L pm.
i have LIC term plan of 15L maturing in 2042, i pay a premium of 39000.
now my family is very much dependent on me. i want maximum cover for my my family. please suggest me plan that will suit me.
also in near future i would like to have financial consultaion from you. could you please tell me how can we do that?

Posted on March 20th, 2013

Manish Chauhan says:

Better stop this LIC term plan .. I dont think its a TERM PLAN , its some other investment policy .. You can get a 1 crore term plan in less than 10,000 per YEAR . and thats what you can easily afford at the moment .

You can consult us by taking our services – http://www.jagoinvestor.com/services

Posted on March 21st, 2013

Manish Chauhan says:

You cant go as per their recommendation , It you who have to decide what is enough for you .

Is 50 lacs enough for you or not ? If YES, then just take 50 lacs

Posted on March 21st, 2013

Manish Chauhan says:

You should but the term plan for those , on whom there is someone financially dependent . Are you dependent or may be dependent on your husband income , If yes, you should take your husband term plan , same is the case with your term plan also .

Posted on March 21st, 2013

Vivek says:

Since I saw many people talking about claim settlement ratio, i thought to write something about it..below is the link to my website..where I am talking about the same. I have totally different view about it..

http://www.insurancemirror.com/Claim-Settlement-Ratio.html

Idea of this website is to clearly analyse the insurance product and keep it for people..I have just begun so there is no option for you to comment but i am sure the information provided will help you think about claim settlement ratio from different angle..

regards,
Vivek

Posted on March 21st, 2013

mpb says:

hello,

below are my few queries:
1. I have home loan which is covered under max new york life’s credit life insurance policy so shoudl i go for one more term plan to cover my life
2. I want to take term insurance plan for my husband, but little confused which to take either SBI,hdfc term assurance or any other i am expecting 75-1cr cover for the same.

thanks
So can u please help me out

Posted on March 21st, 2013

mjagdishns says:

i am planning to buy AVIVA I SHEALD term policy which having some benfits that , after maturity this plane return the total premium amount to policy holder , if any claim total sum assured paid, is it correct . i am low income person . i requst to you please help me to choose the plane , is it good term plane to proctect . or advice me any other company which is low premium and good claim . i am reading your all articles in the jagoinvestor site , after reading all , i am choose the term plane.i am not interest in LIC, i request you sir please suggest me aviva is good in claim . i am wating for your reaply as soon as possible .thank u

Posted on March 22nd, 2013

Manish Chauhan says:

Its a return on premium term plan policy .. there should not be any issue with the policy , but why not go for pure term plan which does not return any premiums back, the premiums will be low there /.

Posted on March 23rd, 2013

Manish Chauhan says:

YOu can go for a term plan from HDFC or Aviva !

Posted on March 23rd, 2013

Manish Chauhan says:

Yes Vivek

Sadly , people over look into this term and do not understand what is means and how it gets created .

Posted on March 23rd, 2013

amol says:

Hi Manish,
thank you for wonderful article.
I am 34 yrs old and looking for 1 cr term plan. May be i will go for split 50 – 50 lac.
I shortlisted few company’s

HDFC life, Aviva and SBI life.

please suggest me the best combination, so that after me, my dependent shall not have problem for claim settlement.

if possible plz suggest split amount also.

Posted on March 23rd, 2013

mjagdishns says:

thank u sir , please suggest me wich company is low preimum and best cliam , to buy the policy online or offiline , and also please suggest me company names . sir please suggest me . thanks sir.

Posted on March 23rd, 2013

ashu says:

hi Manish

feeling enlightened aftr reading ur comments / blog. Thanks. i am 47. looking for term plan. SA 25 L. Tobacco chewer. suggest the best. except for one or two nobody offers for a period more than 70 years. should i go for AR which offers for 75 years. but the glitch is, its poor settlement ratio. i shall give truthful info., but still poor stlmnt ratio is a suspect. Secondly shld i go for more SA. pl advise.

Posted on March 24th, 2013

Nirav says:

Hi Manish,

I am 28 yrs old with Diabetes. When I contacted HDFC for a term plan of 1 crore they initially gave a figure of 11000+ as the premium. But after medical tests they have updated it to 24000+. Is such an increase expected? And should I consider others against HDFC? If Yes, which ones do you suggest.

Thanks in advance
Nirav

Posted on March 26th, 2013

Loganand says:

Dear Mr. Manish,
Wonderful initiative. I am very happy to read your article. I am now 40 yrs old and planning to buy a best term policy, and also I want to invest (either MF or anything else) and save (PPF or RD).It is better to be late than never:-). My earning is only Rs. 40000/pm. I want to invest Rs. 20000/- from my earning. Pls advice me with your valuable suggestions.

Thanking u in advance.

Posted on March 26th, 2013

Manish Chauhan says:

Yes, you should start your SIP’s in few mutual funds and also start a RD !

Posted on March 27th, 2013

Manish Chauhan says:

Diabetes is a serious Issue . Hence the increase in premium is justified , it was from 11000 to 24000 . All you can do is try with other insurer to see if the increase they put is lesser or not . Its 100% sure that they will increase the premiums , but your bet is how much , Given your situation , I would say go for HDFC itself , you have to pay higher as you are more riskier than other customers . accept it .

Posted on March 27th, 2013

Nirav says:

Thanks Manish,

But when others like Aviva or Bharti AXA offer the same benefit for lesses premium, shouldn’t we go with them? As I have understood, the CSR doesn’t matter as long as you declare everything correctly. Then what should be the basis of going with HDFC at additional premium.

Thanks
Nirav

Posted on March 27th, 2013

Manish Chauhan says:

Nirav

yes, true .. You can go with anyone company and as long as you declare everything truthfully , you cant be assured that the claim will be paid .

But you have to understand two things very clearly now .

1. Any plan you take from any company , because of your diabetes , your premiums is going to increase for sure, Some company will raise it more and some will raise it less, but its going to be a good increase . You can expect a 100% – 200% increase depending on the company and the way they look at the matter, Incase of HDFC its close to 130% increase from 11,000 premium . But if you now go with any other company , lets say AVIVA and say their base premium is Rs 10,000 and lets say they increase the premium to 25,000 , then what do you do ?

2. Also understand that in every term plan form , there is a question like – “Did any other company raise your premium due to some reason ? ” , you will put a YES ,there and thats a alarming signal for the company and they might increase the premium further .

All I would say is do not get attached to 2,000-3,000 here and there, these are all action-blocking points , will your life really change if you save that 2-3k . I would say if you are getting it from HDFC, go for it , thats my personal opinion. You can take the risk of applying with other company , The premium there can be less or more , thats on you now , how you want to move forward, but in any case, expect to pay more than 20,000 per year because of the diabetes !

I hope you got the direction :)

Manish

Posted on March 27th, 2013

Nirav says:

Thanks Manish,

That did clarify the issue and will surely help me take proper decision.

Nirav

Posted on March 27th, 2013

Manish Chauhan says:

Better take the plan only till age 60 .. I am doing a post in few days on why !

Posted on March 27th, 2013

Manish Chauhan says:

Go for Aviva or HDFC

Posted on March 27th, 2013

Manish Chauhan says:

Aviva and HDFC are good

Posted on March 27th, 2013

Vivek Porwal says:

Hi Manish,

I am having a term plan of LIC sum assured 30 L and need to take one more term plan sum assured of 30L.

I am confused among LIC,ICICI & HDFC.
I believe Medical tests should be performed while taking the term Plan .ICICI doesn’t take any medical tests.

Please suggest which one should i take ?

Posted on March 28th, 2013

sreedevi Rajkiran says:

Hi Manish,
I am 29yrs old married with 3 yrs old son….My husband is 30 yrs old .I am planning to take up a term insurance for my husband .Plz do suggest which one shld i opt for…

Posted on March 28th, 2013

sreedevi says:

Hi Manish,
I am 29yrs old with 3 yrs old son.My husband is 30 yrs old.I am looking for a term insurance for my husband as he is not interested in it.Plz do suggest which one is the best..

Posted on March 28th, 2013

mpb says:

Hello manish,

as i am new to this segment can u pls let me know:
can i take two term plan from two other sources e.g. HDFC and aviva and in case of unfortunate things happen can i get the claim amount from both of the companies

And i have recieved your book “how to be your own financial planner in 10 steps” i really liked the book :)

Thanks

Posted on March 28th, 2013

ashu says:

Thanks Manish. . .
U have been of Grt Help. . Awaiting Ur Post. .

Posted on March 28th, 2013

Hitesh Dave says:

Hello Sir,
I am 42 years of age, recently I had taken 2 home loans both from Axis bank with loan protection cover from Max India, Now when I am trying to buy a term plan, it is asking wether I am having home loan or not ?? what should I opt for.. ?? Pls. guide.. as the total loan protection is for 38 lakhs and I want a life protectio term plan of 75lakh to 1 crore, I am salaried person and my annual income is 12Lakh
With best Regards,
Hitesh

Posted on March 29th, 2013

Vivek says:

Hi Manish,

Ya you are right…though I have been doing so much on my website just to bring that awareness…when I tell people about this, they agree but at the end buy LIC policy!

Also when I tell them to buy a plain term insurance, they say ” If I take policy for Rs. 1 crore, my wife only will kill me..ha ha ” difficult to change peoples mind..let’s see if I can help some to go in right direction with my website!

regards,
Vivek

Posted on March 31st, 2013

Manish Chauhan says:

Sure :) . At the end, they are just making some choices in life :)

Posted on April 3rd, 2013

Manish Chauhan says:

give the right info

Posted on April 3rd, 2013

Manish Chauhan says:

Sure !

Posted on April 3rd, 2013

Manish Chauhan says:

Yes, you can take it from two companies. both will pay

Posted on April 3rd, 2013

Manish Chauhan says:

Aviva or HDFC

Posted on April 3rd, 2013

Manish Chauhan says:

Most of the companies will not do medicals for a lower cover

Posted on April 3rd, 2013

NiRav DoShi says:

Hey Manish Thanks for such informative article. Please let me know whether SBI Term e-shield has medical tests. I want to buy an online term insurance with compulsory medical test. I already have HDFC click 2 protect and kinda trust the SBI brand name.

Posted on April 3rd, 2013

bhupati says:

goooddddddddd

Posted on April 3rd, 2013

Rahul says:

Hi Manish,

When would we expect the claim settlement ratio data for 2012-2013.
Have you any update for LIC online term plans activation.

Posted on April 4th, 2013

Vinu says:

Hi Manish, Thank you for your valuable information provided.
I would like to get your advice for selecting new policy. Plan to go for 1 Crore (Have any benefits if go for 2 policies) and age of 40 yrs. Working abroad and annual income of 30 lakhs and no loans. Regularly doing medical check up and present health condition is normal, non smoking&non alcoholic. Parents has diabetics and father had been undergone heart attack (passed way at age of 65). Awaiting your updates.

Posted on April 5th, 2013

Kunal Shah says:

Hi Manish,

I was wondering, why iRaksha of TATA AIA (regular pay term plan) was not covered in the list. How would you grade the product in comparison with HDFC click2protect, Aviva (term plan)?
The two stark benefits that I see is the coverage tenure of 40 years (up-till max age of 80) resulting in extra benefit of 5 years when compared to other well-known products. The other benefit is ownership of Tata sons (of 74%) in the entity (rest owned by AIA) resulting in moderately enhanced reliability in operations.

Request your comments..

Posted on April 5th, 2013

Manish Chauhan says:

Its because when this article was done , that term plan was not into the market . I cant say if its good or bad, but the reason you have put are not convincinng enough to suggest that this is better.

Posted on April 6th, 2013

Manish Chauhan says:

You can look at the offline term plans, because you are NRI . Consider Kotak or SBI

Posted on April 6th, 2013

Manish Chauhan says:

I dont think LIC term plan will come anytime soon now . the 2012-2013 will come in 2013 end only !

Posted on April 6th, 2013

Manish Chauhan says:

Once cant say like that . generally above 50 lacs , medicals are done , not below that

Posted on April 6th, 2013

Mohammad Salim says:

Hello Manish I am a 35 year old professionl married and had a 5 year old son having no insurance policy in my name. I save only 5000 per month. I am interested in term policy and high return policy. plz. advice.

Posted on April 6th, 2013

guneet says:

hi..
how are you?
i am a 32 years old diabetic female …well want a 50 lakh online term insurance cover for myself.can u pleaase advise how beneficial this term plan will be for me and what will be the premium and which company??

thanx in advance for your valuable inputs!!

cheers!!

Posted on April 7th, 2013

Sundeep says:

Dear Manish,

I am 45 year old and looking for a Term Plan of Rs. 50 lacs for 20 year term. I have shortlisted Bharti Axa, Religare Aeogon and Aviva. Kindly advise service and CSR wise which will be the better one.

Best regards,

Sundeep K Dutta
Mumbai.

Posted on April 8th, 2013

vijaya says:

I am 34 years old and working professional having medical cover from icici for my entire family. i have to buy term insurance for 25 years for 50 lakhs/icrores cover. please advice should i split the plans betweeen two different companies seeing the CSR and Solvency ratio.
HDFC & ICICI Pridential or Kotak.pls advice. (Non smoker and non drinker).

Posted on April 9th, 2013

Venkatesh Iyer says:

I am 37 years old and was for looking for a Term Plan with a cover for 1 Cr. I have been suggested by my financial advisor that I go with Aviva Lifeshield Advantage (Sum assured 50 Lakhs) premium amount Rs 25741/- ,Coverage Term 28 Years and Kotak Preferred Term Plan( sum assured 50 Lakhs) premium amount Rs 14045/- , Coverage team 28 Years..please suggest if the split and the plans are OK.

Posted on April 9th, 2013

sharavanan says:

sir,
Your initiative is very good. I am 40 yrs old, male nonsmoker. I want to take 50 lakh term insurance. Please suggest the best company and low premium.
Thanks

Posted on April 10th, 2013

Manish Chauhan says:

Aviva iterm

Posted on April 12th, 2013

Manish Chauhan says:

Why that plan from Aviva ? Why not a pure term plan ?

Posted on April 12th, 2013

Manish Chauhan says:

Just take it from Kotak or Aviva

Posted on April 12th, 2013

Manish Chauhan says:

Aviva

Posted on April 12th, 2013

Manish Chauhan says:

Benefit is that your family will be covered in case of eventuality, what other benefit you need ? go with aviva

Posted on April 12th, 2013

Manish Chauhan says:

You need to seperate both of them .. take a term plan and invest in SIP mutual funds

Posted on April 12th, 2013

Manish Narula says:

Hi,
I have this question in my mind, is it possible to have two term plans 50 lacs each from two different insurers? And, in case of mishappening, both of them will process the claims? I am asking this as I am wondering, during the claim process, if original documents are required, the document since it is original, can be submitted to only one insurer not both. Same goes with health insurance, where hospital receipts, etc are to be submitted in original.

Posted on April 12th, 2013

venkatesh Iyer says:

Agreed…however I did not ask it to the guy who suggested that to me…but I think that makes sense…when the requirement is only coverage…why think of returns or investments!!

Posted on April 12th, 2013

Mahesh says:

Whether Aegon Religare is a trusty company and after 45 years whether this company will be available to settle the claim. Like wise whether Aviva, HDFC, ICICI can be trusted for long duration of 40-45 years.

Posted on April 13th, 2013

Amit Raichura says:

Dear Manish,

Thanks a ton for this really useful article.

Me (35 yrs) and my wife (35 yrs) are both working with a joint monthly income of 1 lakh. We have also recently got a housing loan of 60 lakhs. We have finally decided to go for a term plan, but not sure which of the below options we should go for:

1) A joint term plan with a combined coverage of 1 crore (if either one of us passes away, the other gets the lump sum). Don’t know, which companies offer such plans?
2) Buy 2 separate term plans (60 lakhs & 40 lakhs) for each one of us.
3) Should we also consider covering our home loan payments with our above term plans or do we need to buy a separate home loan insurance?

Can you help me out here? Thanks in advance.

Posted on April 13th, 2013

rajendra says:

Manish Sir,
A great thanks for ur valuabl guidance.
I am 39 yrs old having salary income of 2.5-3 lakhs. I had taken home loan from Axis bank of 8.5 lakhs. My investments in lic, RD, mf etc. is about monthly 5000. Please suggest me a good co. for term plan of 30-50 lakhs on which I can rely ?
Thanks u so much !

Posted on April 14th, 2013

Abhishek says:

Hello Manish,

I am 30 year old and want to take term insurance plan of 1 crore .I want this to split into two 50Lakh-Online term plan and 50Lakh -Offline term plan
Which online and offline plan is good in and is this good way of mixing online and offline term plan

Posted on April 15th, 2013

Prithvi says:

I have taken Bharthi Axa e-Protect for 1 cr. Process is good and with in 10 days they issued policy.

Posted on April 15th, 2013

Aditya says:

Hi Manish,

I am grossly underinsured and very confused on how much I need to be insured and how to re-structure my existing LIC policies. I feel they have very high premium and very low Sum Assured.

Current LIC policies
————————–
I have 4 LIC policies with a total annual premium of Rs. 35,000 and a Sum Assured of only 10 lacs in all (Jeevan Saral (Annual Premium – 13k), Bima Gold Plus (Annual Premium -7K), Jeevan Anurag (Annual Premium – 4K) & one another (Annual Premium -11K) only). These are all endowment policies and not term insurance.

I need to re structure my insurance portfolio (make some of the LIC policies paid up and take another term insurance) so as to increase my cover which is currently low.

Family – Mom ,Dad (both retd.) , Wife (working) & planning for a kid
Age 29

Kindly suggest on how to go about re-structuring it and what term insurance would you suggest

Thanks in advance.

Warm Regards,
Aditya

Posted on April 17th, 2013

Kevin says:

Thanks a lot about all the information provided about term insurance. Have a question for you
In case of birth parent being different from legal parent , who’s name needs to be mentioned while providing details to the insurance company ?
In the candidates birth certificate , the name of the birth parent is mentioned .But since then they have passed away due to ill health. All other current documents have the names of the legal parents.
Kindly advise.

Posted on April 17th, 2013

NeedYourHelp says:

Hi Manish,
Need your opinion..
I have taken SBIlife(SHIELD Plan C – 50% Incr every 5 yrs.) for 50L for 25 years.
The Accident and disability rider is for 20L for 25 years. I am paying premium of 38,000 annually( 35K for base, 2K for accident rider and 1K for premium waiver).As i have already completed 5 years, my sum assured for base cover is now 75L(will become 1Cr in 3 years).
Should i surrender this policy as it is too costly. As i am already with this policy for 5+ years, it now covers the existing illness also.Are there any other points to consider before switching?

Posted on April 18th, 2013

Sathish Kumar says:

Hi Manish,
Your blog is excellent. I am a great fan of jagoinvester and continously reading this blog for long time.
I just want to take a term plan of 1cr (more than that also fine to me).
I am 30 yrs old, married with 3 years kid. I neither smoke nor drink and no history of diseases. I have a loan amount of 10 L and in future will be taking another loan of 50L. Kindly suggest me good term plan which suits to me? I just require a plan with good claim settlement ratio (ofcourse we are taking term plan for this reason alone in case of something happen). Also riders should cover Death (both normal and accidental) & Critical Illness which i can think of.

Kindly suggest me a ideal term plan of my requirement above.

Thanks,
Sathish.

Posted on April 18th, 2013

Manish Chauhan says:

You can go with HDFC Click2Protect !

Posted on April 19th, 2013

Manish Chauhan says:

I think you can now switch to other policies. This policy pricing was very high when it came . Infact I myself had this policy :) , but now I am not with them !

Posted on April 19th, 2013

Manish Chauhan says:

I suggest putting name of those who are there in the birth certificate

Posted on April 19th, 2013

Manish Chauhan says:

Aditya

I suggest you read my 2nd book . In the 1st chapter I have clearly shown how you can restructure it . In a quick answer , I can say that stop all those polices and get a term plan

Posted on April 19th, 2013

Mathew Basil Kalapurakal says:

Hi Manish,
First of all, I am planning to take kotak e preffered term plan for 50 lakh for 30 years. I heard its an old plan and service is not good. Is it a good option to go for the same and do they have a good service?
Also, I want a help in filling their application form. I am not a regular consumer of alcohol , but occasionally, like once in a month, I used to have a beer. When I check through the document, i saw options like, non alcoholic / need to specify consumption everyday , and we cant say a fractional number like 0.1 (number of pint beers – 1 is the least). What answer I need to provide, can I say No or if yes, will my policy amount shoots up really huge, Please guide me,

regards

Mathew

Posted on April 19th, 2013

Manish Chauhan says:

Mathew

You can go with them .. there are at times when it messes up and some cases have bad experience, it happens will all insurance companies . Hope for the best .

Regarding Alcohal point , What I know is that once a alcohalic , always a alcohalic, you should mention YES there , but I suggest talk to their customer care also once .

Posted on April 19th, 2013

Manish Chauhan says:

Thanks for letting us know that Prithvi

Posted on April 19th, 2013

Manish Chauhan says:

You can take it from Aviva and HDFC , you can right now go with just 1 company . with 2 companies you always have that conveniance of stopping the policy when needed for a lower amount .

Posted on April 19th, 2013

Manish Chauhan says:

You can go with Aviva

Posted on April 19th, 2013

Manish Chauhan says:

1. There are no joint term plans

2. Yes

3. You can mix it with term plan ..

Posted on April 19th, 2013

Manish Chauhan says:

If you trust IRDA, then you have to trust them as well

Posted on April 19th, 2013

Mathew Basil Kalapurakal says:

Thanks,

Posted on April 19th, 2013

Manish Chauhan says:

Yes both will pay, you can submit originals to one and the xerox to other with declaration from 1st insurer , that the original documents are with primary ..

Posted on April 19th, 2013

NeedYourHelp says:

Thanks Manish..

Posted on April 19th, 2013

PAVAN says:

I WANT TO TAKE 75 LAKHS TERM INSURANCE SUGGEST ME A GOOD COMPANY I WAS INTERESTED IN AGON RELIGARE FOR THEIR PREMIUM BUT THEIR CLAIM SETTLEMENT RATIO IS LOW
PLEASE GUIDE ME

Posted on April 19th, 2013

Achut says:

Dear Manish,
I am planning total 1.5Cr term insurence where in 1Cr from Aviva and 50Lacs from Bajaj Allianz with ADB rider(which is also

providing premium weiver incase of permanent disability). However the base cost of Bajaj Allianz iSecure it self is quite

high(double that of Aviva) however the rider premium is not that significant. So the overall cost of Bajaj is coming high.

Is there any other company provides the premium weiver rider for disability in lower overall cost for 50lacs of SA & 24Lacs

of Accidental Disability? Based on my serched, I could only find Birla SL term policy which provides similar rider, but

overall cost is very much high as compared to Bajaj. Please suggest. thanks

Posted on April 22nd, 2013

VIJAYA KUMAR V says:

Dear Manish why did the premiums for online term plans is very low compare to offline and why is the huge variation in comparing to all companies we trust the companies which is offering low premiums.

Posted on April 22nd, 2013

Hetav says:

Manish,
A query on claim settlement ratio.
Consider an example – If I furnish all my details as is and all my medical check up is done by the insurance provider, stil can there be any chance of rejecting a claim?

I queried likes of Aegon,HDFC etc and they all say that if medical check up is done and all other details are fillled up correctly, then claim settlement won’t be an issue.

Posted on April 22nd, 2013

Sandeep says:

Hi Manish,

tks for sharing wonderful in-sight for term ins. it’s really helpful.

Need your help to decide on my existing policy of Birls sun life. I have Birla dream plan, where am paying 26,000 p.a., having sum assured of 50L. this is Term +ULIP plan, where 8,900 going towards term plan.

Now problem is that in 8,900 am getting only 50L as sum assured. however there are policies in the mkt who are giving 1 cr cover in approx 12-15,000.

am want to switch over the Birla policy. pl. suggest any good policy for 1cr

Posted on April 22nd, 2013

KISHORE KUMAR says:

I AM 33 YEARS OLD,MARRIED AND HAVE ONE KID AND HAVE TYPE 2 DIABETES. WISH TO CHOSE TERM PLAN. HAVE LOAN OF 50 LCS AND WANT RIDER OF CI & WP. I USED TO SMOKE AND DRINK TILL A YEAR BEFORE BUT HAVE QUIT. KINDLY SUGGEST WHICH PLAN TO OPT FOR.

Posted on April 22nd, 2013

Srinivasan says:

Hi,

I’m looking for good term insurance which could give me coverage of 1Cr + reputed in market for prompt settlement in eve of risk.

i enquired on amulya jeevan (found to be costly). enquired with aviva. but couldn’t take decision on that.

can you please provide thoughts to help getting to conclusion ?

Regards
P.T. Srinivasan
98401 25600

Posted on April 24th, 2013

Abhijit says:

AVEVA Exclusion –

No benefit amount will be payable if the death of the life insured has occurred directly or indirectly as a result of suicide within one year from the date of commencement of risk of policy and in case of reinstatement of the policy, from date of reinstatement.

What does this really mean?

Posted on April 24th, 2013

Sathish Kumar says:

Thanks a lot Manish.. Got a quote of 9800 thro’ online.

Posted on April 25th, 2013

amit gupta says:

hi manish

i m working in mnc , i m smoker & drinker , i want to purchase 50 lacs to 1 crore term insurance plan. i m 32 years married and i have a 2years boy, kindly sujjest which plan better for me also suggest me online or offline
if offline then which plan
if online then which plan

Posted on April 25th, 2013

Ashish L says:

Hi Manish,

Good Afternoon. After reading through the article, i plan to buy a term plan. My current age is 30 years, and i plan to buy the term plan for next 30 years (till age of 60). This decision was taken, thanks to your another article “WHy not to invest till 75 years).

I plan to take Aviva i-Life Term Plan for sum assured of 100lakhs. I am a non-smoker, no other disabilities. The present premium on their website for 100 lakhs is 7965 for male and for female is 7566. I plan to buy term plans for both wife and myself as we both are earning members of our family.

Can you suggest if this plan best suits our requirements and does it cover riders like AD (Accidental Death), CI (Critical Illness), DR (Accidental Disability Rider), WP (Waiver of Premium). If yes, well and good. If not, are these riders required for us?

Thank You and awaiting your reply.

Regards,
Ashish

Posted on April 25th, 2013

Manish Chauhan says:

Yes its a good plan , but it does not have any riders . But thats ok , do you really need riders ?

Posted on April 25th, 2013

Manish Chauhan says:

Online plan is fine for you .. just take Aviva

Posted on April 25th, 2013

Rajat Singh says:

Hi Manish,

All term policies ask for Smoke: Y/N.
I smoke very rarely and not sure if i will smoke more frequently in future or quit smoking.
What option i should check.

Thanks

Posted on April 26th, 2013

Ashish L says:

Hi Manish,

Good Morning. Thank You for the quick revert.

Hoestly, it does not matter to me if riders are included or not. Just a fact that others are providing, i though to clarify it with you :-)

For eg: God forbid some CI happens to me. Will Avova pay the sum assured to my family?

To conclude, i and my wife will go for Aviva i shield through online channel. Correct approch?

Regards,
Ashish

Posted on April 26th, 2013

Manish Chauhan says:

Riders make policy more complicated and pricing tough . Thats the reason not all companies have them , Its just a choice they have.

They will pay the money to nominee or legal heir .

Posted on April 26th, 2013

Manish Chauhan says:

Once a smoker, always a smoker – This is how companies look at things. Mention that you are smoker.

Posted on April 26th, 2013

Manish Chauhan says:

It means that if you do suicide in 1st year of taking the policy, the sum assured will NOT BE PAID , but after 1 yr, it will be PAID

Posted on April 26th, 2013

Manish Chauhan says:

I would have gone with AViva

Posted on April 26th, 2013

Manish Chauhan says:

Aviva

Posted on April 26th, 2013

Manish Chauhan says:

Yes, it makes sense to take a new plan now as the pricing is better now . You better take the new term plan and then stop this ULIP . Aviva or HDFC are good one’s

Posted on April 26th, 2013

Manish Chauhan says:

Yes, it will never be an issue

Posted on April 26th, 2013

Manish Chauhan says:

Read about it here – http://www.jagoinvestor.com/2011/12/cheap-online-term-insurance-plans.html

Posted on April 26th, 2013

Manish Chauhan says:

WHy dont you take plain vanilla term plan and take the accidental plan seperately !

Posted on April 26th, 2013

Manish Chauhan says:

Aviva

Posted on April 26th, 2013

Nikhil says:

Hi Manish,

First thanks for the articles.
I have 1 query regarding claim settlement ratio. The given ratio are for the year 2011-12. After 5-10 years Does these ratios (ranks) will be same? if not then in that case Suppose I have taken a term insurance from X company for which claim settlement ratio is good in 2012, But after 5-10 years for that company claim settlement ratio is not good. What to do in that case?

Thanks,
Nikhil

Posted on April 27th, 2013

Hitesh says:

Hi Manish,

I plan to take term insurance policies for 4 members of my family. Kindly suggest which ones will be the best(i have also mentioned existing Policies amount) –also suggest what would be the (a) ideal amount (b)ideal tenure (c)ideal policy

1. Male, Age :30 yrs, Non-Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 49 years – 10 Lakhs)

2. Male, Age :25 yrs, Non-Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 54 years – 12.5 Lakhs)

3. Male, Age :23 yrs, Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 57 years – 12.5 Lakhs)

4. Female, Age :26 yrs, Non-Smoking, Non-Drinking (Policy coverage through L.I.C coverage upto 52 years – 15 Lakhs)

Posted on April 27th, 2013

K P says:

Hello Manish,

I am 31 year old and I had a Birla Sun Life Dream Plan…I am planning to make a shift to pure Term Plan and additional CI plan. I am confused on which one to go for.

Requirements : 1 cr cover Term Plan
5o lakhs CI Plan

Could you please suggest which one should i go for…Do you think AVIVA and HDFC Life are good companies ?

Posted on April 28th, 2013

Dhananjay G says:

Hi Manish,

I am a 34 yr, Male, non smoker. FIrst of all a very nice article. Thanks!

You were suggesting Kotak Preferred and also Aviva. You said Kotak Preferred because it has a low premium and high settlement ration (92.5%). But if i see HDFC then it has even lower premium but much high settlement ratio than Kotak. If I am not looking for any riders, should I go for HDFC then instead of Kotak. Aviva has below 90 % settlement ratio, so I did not get why you were suggesting it. Maybe you can say few words which will clear or doubts.

I have taken many services from ICICI (demat, bank a/c, locker etc) so even for a bit more costly premium, given that it has very high settlement ratio and a very good solvency ratio, I was thinking how ICICI Predential compares with HDFC (other than cost).

Finally question on accident and health riders. My opinion is that one should take a straight and simple term insurance with no riders and then a separate and good health insurance covering these things. Is this a good approach? I have a Mediassist health insurance, is that a good one.

Posted on April 28th, 2013

GIRISH K says:

Hi Manish,
Iam 36 yr old,.six months back applied click 2 protect plan from HDFC.Where premium was nearly 8,000/p.a for 50lk cover.,after medical test the premium was doubled. stating the reason that future diabetic problem. Iageerd to pay the premium.But asked some questions regarding claimratios and also the medical reports wich I have undergone(where i agree to pay the price of medical examinations), with every day follow up for a month there was no reply. Then Idecided to drop it .Because of excellet service? of Hdfc. Now Iam planning to buy LIC jeevan amulya(offline plan) even thogh premium is high.Is there lic online term plan as per ur knowledge in near future. Now i am in delemma to wait for online plan or to go ahead with offline plan.

Posted on April 28th, 2013

S.K.MITTAL says:

please suggest best term insurance plan for covered Rs. 50 lacs at the age of 47 for 25 years.
no usages of tobacco/drinnk

Posted on April 28th, 2013

Nilofar Sulaiman says:

Hi Manish,

I am working in MNC and I have a loan of 5Lakh and planning for a loan of 30 L after 3 years….please suggest me good insurance plan..

Posted on April 29th, 2013

swetha reddy says:

why different insurance companies offering different premiums?what is the main difference?

Posted on April 30th, 2013

Ram says:

Dear Manish,
I have been paying premium thru an agent for a term plan assured of 1 crore. I have to renew my policy by paying around Rs. 24500. I understand that policies are much economical thru online. My current age is 39 years (30.08.1974). Can you please suggest me an appropriate policy that is available at better cost.

Regards
Sriram

Posted on May 1st, 2013

Venkatesh Iyer says:

Manish..done that…and now its a pure Term plan..the premum came down almost by 50%.. Now have lot of LIC policies collectively giving me a Sum assured of 10-12 Lakhs…worth revisiting all of them and probably surrendering them….I would use that money instead to pay the prepayment for my housing loan..or increase my EMI which will directly reduce my Principal….I think I will now need to look at a home loan article from you if available ?

Posted on May 2nd, 2013

Abhilash says:

Unfortunately, there is a database error when I submitted my comments few min back but I’m not giving up as there is one important thing that is not discussed here.

I mostly agree with Manish’s views but there is one topic which didn’t get enough attention.

While we are worrying about the buying power of sum assured after 30 years, we also have to remember that our premium burden will also reduce due to inflation. So if 1 crore becomes 22.5 Lakh after 30 years, our 10000 premium will become 2250 after 30 years. :-)

Posted on May 2nd, 2013

RK Rawal says:

Hi Manish,

First of all thank for all information you provide via these blogs. I recently bought Aviva ilife 55 L @ 7601 pa.
While looking for term plan i found in one other blog that all private companies are quite new to insurance sector (mostly started after 2000) and that could be one reason of low Claim settle ratio of these. As claims are more more thoroughly checked in early death cases. What is your opinion on this?

Regards,
Ranjeet

Posted on May 3rd, 2013

Hitesh says:

Hi Manish,

I plan to take term insurance policies for 4 members of my family. Kindly suggest which ones will be the best(i have also mentioned existing Policies amount) –also suggest what would be the (a) ideal amount (b)ideal tenure (c)ideal policy

1. Male, Age :30 yrs, Non-Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 49 years – 10 Lakhs)

2. Male, Age :25 yrs, Non-Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 54 years – 12.5 Lakhs)

3. Male, Age :23 yrs, Smoking, Occ. Drinking (Policy coverage through L.I.C coverage upto 57 years – 12.5 Lakhs)

4. Female, Age :26 yrs, Non-Smoking, Non-Drinking (Policy coverage through L.I.C coverage upto 52 years – 15 Lakhs)

Posted on May 4th, 2013

bhushan says:

hi manish ,
1) i am working in merchant navy as engineer . i live in india and i only go out for 6-7 seven months on ship . will i be considered as NRI by insurance company or resident citizen . BY working outside India i get NRI status and i hold Nre account in india.(note : i live in india and my home address is in india .outside india i have no address . i stay on ship )
2) i selected two term policies one is jeevan amulya and other one is hdfc term insurance with all types of riders .is it a right decision .
3) my question is will accident benefit will hold true if i meet some accident on ship ,when some thing happens to flight in foreign country or if something happens in foreign country .?
4)is jeevan amulya covering death occurring from terrorism , act of god .accident by traveling in public convince e.g.. train ,bus ,flight.?
5) how many times The SA value should be of annual income ?

Posted on May 4th, 2013

Adil says:

hello sir,
If u are looking for a term plan for Rs 50 lacs of sum assured, i would suggest you to go for 15 years of paying term.
for more detail u can contact me on 8800128234.
Regards
Adil.

Posted on May 5th, 2013

Manish Chauhan says:

Most of the companies will be hesitant to give you policy . As your job is risky . Meet some offline advisor for term plan and he might help you

Posted on May 6th, 2013

Manish Chauhan says:

Which one these 4 are earning members ?

Posted on May 6th, 2013

Manish Chauhan says:

Yes, thats the only reason .. there is no problem with Aviva .. go for it

Posted on May 6th, 2013

Manish Chauhan says:

Abhilash

Yes thats correct Abhilash

The post is for you to interpret in your own way and you are free to move ahead as per your views :)

Posted on May 6th, 2013

Manish Chauhan says:

Yea .. which article you want to read. . all the home loan articles are listed here http://www.jagoinvestor.com/category/loans

Posted on May 6th, 2013

Manish Chauhan says:

Go for Aviva

Posted on May 6th, 2013

Manish Chauhan says:

their way of pricing the premiums

Posted on May 6th, 2013

Manish Chauhan says:

Aviva

Posted on May 6th, 2013

Manish Chauhan says:

Aviva/HDFC/Kotak

Posted on May 6th, 2013

Manish Chauhan says:

Better go for offline plan in that case, because online term plans might not come .

Manish

Posted on May 6th, 2013

Manish Chauhan says:

In that case you can go with HDFC

Posted on May 6th, 2013

Manish Chauhan says:

ICICI would be good

Posted on May 6th, 2013

Manish Chauhan says:

How does it affect you . Ratio is nothign but a number . How does it affect your claim if you have given all the correct information ?

Posted on May 6th, 2013

divakar says:

Hi,

As of today, I have only 2 policies for 3 lakhs and for my son, i have very high with LIC again and pay premium of 67k per year.
I would like however still go with term policy for 1 crore.
Could you please suggest whether Kotak preferred is worth to go?

Posted on May 7th, 2013

girish k says:

thank you for ur early reply and suggestion.

Posted on May 7th, 2013

dr mithun says:

hi sir
I just purchased a online term insurance icici term insurance of 50 lakh with a premium of 9880 rupees . was it the right decision or should I cancel it and go for LIC. little worried about private companies now after reading ur article

Posted on May 8th, 2013

Manish Chauhan says:

Dont worry .. its fine . But make sure you are very sure before taking action

Posted on May 10th, 2013

Manish Chauhan says:

You can take term plan from any company , no preference

Posted on May 10th, 2013

dr mithun says:

thank u

Posted on May 10th, 2013

K P says:

Any specific reason why you suggesting ICICI over AVIVA…

Posted on May 13th, 2013

Shine says:

Hello Manish

Iam a seaman nd work on a cruise liner ….Iam on the ship for six months and home for two months ….am I ok to get a term insurance plan..
Please advise….

Posted on May 13th, 2013

Manish Chauhan says:

Its not like that , anyone is fine

Posted on May 18th, 2013

shailesh says:

Dear Sir ,

I am 25 yrs old male and have an annual CTC of around 4.2 lacs . Also i’m a non smoker and a non drinker , actually was planning to take a term insurance of 1 cr from two companies ( i.e 50+50) , looking at the last yr claim settlement ratio can u plz advise me the best 2 companies to look at ? Also should the plan be online ..?

Posted on May 24th, 2013

Manish Chauhan says:

yes, go for Aviva or HDFC !

Posted on May 25th, 2013

Naresh says:

Hi Manish,

Need your advice.
I am 45 working in Pvt. Bank. Recently I have discontinued my endowment policy from Metlife and willing to take a term insurance preferably from Aviva (as suggested by you in earlier posts) for atleast 50 L. I have two kids my daughter in graduation and son in secondary. I have assets in form of property availed thu loan. All the loans except Home loan of 45 L are paid off. I neither smokes nor drinks , however I chew tobacco. Unfortunately chewing is not mentioned in online form of Aviva.
Should I go for 50 L so atleast Loan liability is covered
What should be the period 15 , 20 or 25 and
Is Aviva is good choice .
Regards

Naresh

Posted on May 27th, 2013

Naresh says:

Sorry i missed that my CTC is 13 L

Posted on May 27th, 2013

Manish Chauhan says:

It should be 15 yrs

Posted on June 1st, 2013

SS says:

Hi Manish!
Excellent Post and a very timely one as i make up my mind on which term plan to go for.
I intend to go for HDFC Life (online) for 75 Lakh for 25 years (age 37), which without riders would require a premium of Rs.11,700/annum (as of today).

My queries are:
1. IRDA data combines the claim ratio for both ‘claims linked to death’ and ‘maturity’ (if my interpretation is correct). Do we have any reliable data specifically for ‘claims linked to death’.
2. How does taking riders (like critical illness) with the term insurance compare against taking separate medical insurance?

Regards
SS

Posted on June 1st, 2013

Manish Chauhan says:

SS

1. no data for only term plans , you might get the data for death claims but

2. Taking seperately will give more options

Posted on June 4th, 2013

Abhijeet Khadikar says:

Hi Manish, Even I am also looking for split term policies
1 ) LIC (25 lakh SA)
2) Bharati AXA or HDFC click to protect 50 lakh SA. While comparing Bharati AXA looks good in term of family covr benefit, claim processing , premium and also claim settlement ratio in comparison with HDFC for last 3 years .how ever over al if I see claim setlement ration of HDFC life is good. So any suggestion should I go with Bharti AXA?

Regards
Abhijeet

Posted on June 11th, 2013

Manish Chauhan says:

I dont see much issue , go with Bharti Axa

Posted on June 14th, 2013

Abhijeet Khadikar says:

Thnx Manish

Posted on June 14th, 2013

Nikhil says:

Dear Manish,
Is HDFC Click2 protect good , soi can take 1Cr insurance coverage for 25 yrs??

I had taken a term plan of Birla Sun Life last year during Sept 2012 for 40 Lakhs sum assured with the yearly premium being near to Rs 8000. I always felt that i need a larger cover of around 1 Crore and after calculating as per your 2nd book “How to be your own financial planner in 10 steps” i am pretty much sure i need a larger one for my family. I already paid a one time annual premium and i used to smoke at that time(so high premium). Now am a non smoker since 6 months, So what should i do now?
Should i stop the policy and buy a new one of 1 Crore or should i buy a second additional 60L policy? and if so from which company? Am really confused. Kindly guide me Manish.
Regards,

Posted on June 14th, 2013

ANKUR says:

Manish-Between Bharti axa and Aviva which would be a a better choice?

Posted on June 21st, 2013

Manish Chauhan says:

Aviva would be my choice . However Bharti Axa is also good !

Posted on June 21st, 2013

Manish Chauhan says:

Actually just because you stopped smoking does not mean you will be counted as non-smoker. AS per life insurance company – “Once a smoker, always a smoker” is the rule. so if you do not tell the truth , it will be seen as fraud. So first check now much is the premium for you for 1 crore and 60 lacs. If taking additional 60 lacs + your existing one is same is 1 crore premium, then just take another 60 lacs.

Posted on June 22nd, 2013

Muthukumar says:

Hi Manish
Nice article. Let me share my experience with Aviva i life online term policy.Everything was nice until I got a mail stating that my premium was hiked 50% as they diagnosed me having diabetes according to my medical synopsis. I got a copy and found that my sugar values were quite normal! I asked Aviva for specific answer to my query that how they decided I have diabetes. They replied now that I am prediabetic! as i had impaired fasting blood glucose.My medical synopsis sent by Aviva reads my fasting blood glucose as 80mg/dl which is very much normal.Again qoting the values I asked what value is considered normal by Aviva.They replied again by cut and paste the same words they sent earlier without stating specific values. I am clear that my health is very much normal and I dont want to be fooled .What should I do now Manish?

Posted on June 23rd, 2013

satish says:

Dear Mr. Manish,

I hold a term plan which I had taken in 2005. That company issued me the plan after ensuring my health conditon. Now I am 39 years old. In case of any health issues in future (during 40’s) do I have to declare the same to the company? Is that mandatory? If yes, can they increase my premium. What will happen if I don’t declare.
Kindly clarify.
Regards,
Satish

Posted on June 26th, 2013

Lilly says:

Hi Manish
Very informative blog. Kudos for your efforts to spread awareness on various aspects related to insurance !

I took an online policy (i Life) from Aviva and made payment online on 9th May 2013. After medical investigations, my case was cleared on standard rates on 21st May and the date on which the risk commenced is 21st May. However Aviva says that my next premium date is 9th May as it is calculated on the basis of 1st premium date. I have tried to reason with them that next premium date should be 21st May 2014 i.e. on the anniversary of the risk date. But they are not agreeing. Am I right in saying so ? If so how can I make them to correct this ?

Also if I go as per Aviva, my policy will lapse on 9th June 2014 (if I don’t pay premium on time) i.e. only 18 days after my anniversary of risk date. Shouldn’t this period be 30 days ?

Thanks
MSK

Posted on June 27th, 2013

Vibha Tiwari says:

Hello Manish,
Thank you for such elaborate and worthy article on insurance plans. I am a 30 year Female, Doctor, with monthly income of Rs. 80 thousand / month, looking forward to buying a term insurance policy of atleast 1 crore. Want to know which one should I buy? whether single or two policy from two different companies, and from which two? online or offline? I have hardly any experience with these companies or their services. Kindly guide me to facilitate my decision.
Regards,
Vibha.

Posted on June 28th, 2013

Puneet says:

Hi,

I want buy a online term plan, i am 27 years old.
(1) Which is better aviva ilife or ICICI Prudential i care in overall measures?
(2) Shall i go with LIC amulya jeevan of 25 lacs along with 25/50lacs of Aviva ilife/ ICICI i care. ( as both Aviva & ICICI are private company & LIC is more reliable in term of Claim settlement ratio & it is Govt run)?
Please help me in selection of policy……

Thanks
Puneet

Posted on June 28th, 2013

Puneet says:

Hi,

I want to buy a online term plan & i am 27 years old
(1) Which is better Aviva i-life or ICICI prudential i care in over all measures?
(2) Shall i go with LIC Amulya Jeevan of 25 Lacs along with 25/50 lacs of Aviva/ ICICI (as both Aviva & ICIC are private company and LIC is govt run with better Claim settlement ration)?

Please help me in selection of policy…..

Thanks

Puneet

Posted on June 28th, 2013

Mahesh says:

Hi,

Not sure if this thread is still active.
This post helped me a lot to understand nitty gritties of term insurance.
I am 35 and looking for a term insurance of 50L. I have narrowed down to Aegon Religere, just for 1 reason. It offers 40 years plan. So, this plan continues even after my retirement with same yearly premium and covers me till I am 75. I think getting covered till 75 is a big big bonus for my family.
I am a non-smoker and dont have any health issues. My parents are healthy and infact my grand parents are healthy. So, there is nothing for me to hide and hence claim settlement shd be not complicated.
Am I thinking in right way?

Posted on June 28th, 2013

Manish Chauhan says:

No you are not thinking in right direction, here is the reason – http://www.jagoinvestor.com/2013/04/why-you-should-not-take-term-insurance-till-75-yrs.html

Posted on July 1st, 2013

Manish Chauhan says:

Just go for 1 crore term plan from Aviva !

Posted on July 1st, 2013

Manish Chauhan says:

Just go for 1 crore term plan from Aviva

Posted on July 1st, 2013

Manish Chauhan says:

It starts from the payment date , dont argue on this as its a standard thing !

Posted on July 1st, 2013

Manish Chauhan says:

No you dont have to declare anything to them !

Posted on July 1st, 2013

Manish Chauhan says:

No you dont have to declare anything after taking the policy !

Posted on July 1st, 2013

Manish Chauhan says:

Hmm.. what you should then do is apply in other companies and check with them on premium .

Posted on July 1st, 2013

Lilly says:

Dear Manish
Thanks for y0ur reply.

The actual issue I have is not with the payment date, but the duration of risk. The policy states the maturity date as 9th May 2033. So if my risk cover starts on 21st May 2013, the cover provided to me is not complete 20 years, but actually 12 days less then that.

If I have taken a policy for 20 years, the risk cover provided to me should be for complete 20 years. Am I right or wrong ?

Thanks MSK

Posted on July 2nd, 2013

Vikas Verama says:

Hi Manish,
i want to clear one point :- i am married and my wife is also working , also we have not any child right now. so if any thing will happen to me , will my wife get the entitled sum assured? as my liabilities are very low .

Posted on July 2nd, 2013

vamsi says:

Hi Manish,

I am an admirer of your posts which gives lots of information and guidance to take right decision for the people who are confused in this marketing led world.

Let me admit that i am one of those.. :) and require your suggestion.

I am a 33 year old married and have a new born kid with both of myself and wife earning.

I used to have a Jeevan anand policy which has been taken just to avoid taxation earlier and discontinued it and continuing with a term plan from LIC for 25 lakhs ( Amulya Jeevan) for 30 years with a premium of 9100.

Considering my financial commitments and the house loan,i feel that i am underinsured and need to have atleast 1 crore as a protection.
I am also looking to insure my wife for a 50L cover with HDFC.

I am considering HDFC and SBI smart shield plans at a split of 50L-50L. Kindly advise,
1) if this is the right split?
2) Are the two companies fine to proceed ?
3) HDFC or SBI for my wife ?
4) are HDFC life and HDFC click to protect same or different ? If different which one to go for ?

Appreciate your response.

Regards,
Vamsi

Posted on July 4th, 2013

Manish Chauhan says:

I think you should just take 1 crore with HDFC and your wife can also do that same .

With such low premiums, now it does not make a lot of sense to split , earliar it was a wise thing . If you are taking 2-3 crore term plan , then you can split !

Posted on July 5th, 2013

Manish Chauhan says:

Only if she is the only legal heir . right now in absense of will , your mother and your wife are both legal heirs !

Posted on July 5th, 2013

Manish Chauhan says:

Now that would be your personal way of looking at it . I am fine with that level of imperfection , because I personally think it makes no difference . However you can think differently , if its helping you, then follow up with the insurance company

Posted on July 5th, 2013

CMAVandana says:

Hi Manish,

Your articles & analysis are really good !! as always !! Pl give ur advice on following

I’m 25 yrs single girl, my monthly net salary is Rs. 20,080/- only, I’m planning to take a term plan my quest are :
1] what maximum Sum assured i can get ?
2] Should i take only 1 term plan or should i take it from 2 companies?? (split SA)
3] Which is best term plan from below :
a] Bharati AXA Life – E Protect – i like benefit of 1 Lac within 48 hrs at claim
b] Kotak preferred term – as u mentioned above
c] max life platinum protect plan – benefit i like – aft paying for 15yrs we can
opt to not to pay with reduced S.A.
4] One year ago i had online applied for AGON Religare i term plan, without study only with the purpose of tax saving And while filing the form i was in hurry just to take the policy in that day only to avail the benefit of tax deduction, && Mistakenly filled my weight as 41Kg only which is wrong, My actual weight is 46-48, Because of quoting 41kg i got email from AGON Religare with Higher premium , SO I have not accepted their proposal !! n not taken that policy

NOW MY QUERY IS , While I’ll take another policy, should i need to inform about all these to NEW Company or not?? PLEASE REPLY… !!! thanks in advance Manish

Posted on July 7th, 2013

M Saha says:

Dear Manish
Thanks for your support to all on their quieries. I have a question. I like to have term insurance of total 2 crores, 1 crore from each companies. Following are the shortlisted companies. Please suggest with your preferance. I am a bit confused to choose.

1. Tata AIA (low claim ratio)
2. Bharti Axa (relatively low claim ratio)
3. Aviva (relatively low claim ratio)
4. SBI Life (better claim ratio, but slightly costly)
5 Kotak (better claim ratio, but slightly costly)

Regards

Posted on July 8th, 2013

vamsi says:

Hi Manish,

Thanks for your suggestion. Appreciate your quick response.

I have checked HDFC Click 2 protect and the premium varies if i take it from online directly but if i take it from HDFC life executive who has approached me, the quote is around 450 rupees difference for a 1 Cr plan.
I am confused which is better as both offfers same policy but the executive mentioned that he will provide service of takeing care of the formalities where doing directly online will take time.

Kindly advise.

Regards,
Vamsi

Posted on July 8th, 2013

Satish says:

Thank you Manish for your quick response

Posted on July 8th, 2013

vamsi says:

Hi Manish,

Thanks for your suggestion. Appreciate your quick response.

I have checked HDFC Click 2 protect and the premium varies if i take it from online directly but if i take it from HDFC life executive who has approached me, the quote is around 450 rupees difference for a 1 Cr plan.

I am confused which is better as both offfers same policy but the executive mentioned that he will provide service of takeing care of the formalities where doing directly online will take time.

Kindly advise.

Regards,
Vamsi

Posted on July 12th, 2013

Manish Chauhan says:

Because in offline case, some small commission will be paid to the executive and he will get commission . I think if you want personal service in all formalities, better go with executive !

Posted on July 15th, 2013

Manish Chauhan says:

I will go with Aviva and Kotak

Posted on July 15th, 2013

Manish Chauhan says:

1. around 50 lacs I guess
2. 1
3. Aviva or HDFC

Posted on July 15th, 2013

Nilesh says:

Hello Manish,
I have two offline term insurance purchased one yr back.
1. LIC – cover 50L- premium 15900/- (for self 30 yr old) and
2. LIC – Cover 15L – Premiun 4300/-(for brother 25 yr old).

Questions
1. Should I discontinue this and buy cheap online term insurance.
2.OR continue with this and buy another online as a additional one.(Yes, I also would like to increase the sum assured for both 1cr. for me and 50L for bro.)

your suggestion appreciated.

Posted on July 17th, 2013

Manish Chauhan says:

I would say go for additional term plan for yourself for 50 lacs and same for your Brother !

Posted on July 18th, 2013

Manmada Reddy says:

Hi Manish,
I am(33 year old Male) planing to take term insurance (SA : 1 crore)
1. Is it a good idea to split and take two policies from different companies?
2. Could you please also suggest me the best ones for term insurance.
3. I stopped paying the regular insurance plans last year(after paying 5 years)
(as I am taking term policy) is that a correct idea?

Thanks.

Posted on July 27th, 2013

Manmada Reddy says:

Manish,
Could you please help me to get my queries answered?

Posted on July 28th, 2013

pankaj singh says:

Hi Manish,

After reading this page I took one term insurance of 75 Lakhs, 2 Month back from HDFC Click2Protect. I took one home loan recently arround 30 Lakhs So instead of going to insurance this loan, I am planning for one more term insurance from Aviva.
My current yearly Gross salary is 15 lakhs so I am looking another term insurance either 75 Lakhs or 1 Cr.
Please suggest me weather my decision is Good or not.
One more thing i need to know as HDFC did not conduct any medical test and Aviva may be go for medical test first suppose any think comes negative than HDFC can also increase their premium.
Thanks
Pankaj Singh

Posted on July 29th, 2013

Manish Chauhan says:

Your insurance is good enough or not can only be decided by you, the best way is to ask your self how your current insurance money will be used by family.

Posted on July 29th, 2013

pankaj singh says:

Actually I need to know 2 things.

1. which one will be good. Insure loan amount or Take one more Term insurance as I already have one 75 Lakhs.

2. Taking second term insurance and after negative medical test, can it affect the premium for first one.

Please provide me ans these 2. thanks

Posted on July 29th, 2013

Manish Chauhan says:

1. With premiums so cheap now, better take single policy. This was a good option earliar with high premiums

2. There is none. I can suggest good options like Kotak , or Aviva

3. In most cases yes .

Posted on July 29th, 2013

Manmada Reddy says:

Thanks Manish.

Posted on July 29th, 2013

Parushram says:

Hi Manish,

Thanks for the article. I am 38 years old & would like to have some details on following,
> Liability – 25 L ( Housing loan)
> CTC- 11.50 L
> Dependents – 3 p (Wofe, 7 year son, 4 year daughter)
> LIC Policy – Aprox coverage -17 L ( All to gether, Self- 2 L)
> Mediclaim from company – 2 L (each for all)
I would like to go with a term plan of 1 cr as below,
> 50 L from SBI life shield
> 50 L from Kotak.
Please advise which one will suit my requirement & some assured is ok with 50 L (25L+25L).

Regards,
PM

Posted on July 31st, 2013

Manish Chauhan says:

You should take 1 crore policy from Kotak

Posted on July 31st, 2013

Darpan Desai says:

Hi Manish,

First of all thank you very much for the detail article.

I want to take your advice on purchasing Term Insurance.

I am 28 years old. So can you please suggest a policy covering 1 Cr (online / offline) ?

Posted on August 1st, 2013

Manish Chauhan says:

Aviva or HDFC click2protect

Posted on August 5th, 2013

SanSu says:

Hello Manish,

Thanks for the information regarding Term insurance .
After researching on blogs and other source of information , i settled down to HDFC LIFE click to protect term plan .
I a 30 Years old
Initially the offer was 75 lakhs cover without medical test ,premium paid was 12,375.00+ 2,333.00= 13,905.00 , I am type 2 diabetic age so i mentioned the same in the application form ,no surprises they asked me to undergo medical test which i did ,now they have increased the premium amount 6,497.00 so the total premium is 18,872.00 .

I want to know is this the normal thing in Insurance industry ? , do i have options to bargain .

Any Insurance company which may charge less then the premium offered also considering my medical history ?

Any kind of help will be appreciated

Thanks,

Posted on August 5th, 2013

Manish Chauhan says:

I would say jump and take it before they change my mind. You should be thankful that you are atleast allowed to take term plan . Dont take the risk of letting it go

Posted on August 5th, 2013

SanSu says:

Thanks for the information
I am in the process of filling the additional formalities

Thanks again !

Posted on August 5th, 2013

Darpan Desai says:

Thank you Manish, I was also thinking of HDFC Click2Protect.

Thank you once again :)

Posted on August 5th, 2013

pankaj singh says:

Dear Manish,

What you think about this News.
Aviva looks to sell 26% in India joint venture.

Will it affect existing policy holder.
What will be implications after this.

thanks

Posted on August 6th, 2013

Rajat says:

Hi Manish

I would like to purchase an term policy for my wife who is 29 now. Which company policy you suggest me to buy.

LIC , HDFC or any other ?
Also am i able to buy LIC policy online which can save my premium.

Please advice.

Regards.

Posted on August 7th, 2013

Manish Chauhan says:

Depends on your trust factor. I am fine with HDFC !

Posted on August 9th, 2013

Manish Chauhan says:

Yea its not a great news , but one should not worry much as generally its bought by someone else and it continues, the company obviously changes .

Posted on August 9th, 2013

Pankaj Singh says:

Hi manish,

Recently I purchased term plan with aviva. Policy is under consideration and my medical test is also planned on 13 aug.
Please guide me weather i should continue or not.

Posted on August 10th, 2013

Manish Chauhan says:

Its you call . Why do you think you should not go ahead ?

Posted on August 12th, 2013

pankaj singh says:

My only worried about claim settlement.
But today I was reading IRDA Rule and one rule was once you open any insurance company you can not close it.
so I think who ever will purchase will take care.
Am I right ?

Posted on August 12th, 2013

Manish Chauhan says:

Yes, thats true . dont worry on that

Posted on August 12th, 2013

Chandra Mohan says:

Hi Manish, Don’t you think splitting will help in claiming. for instance if one of the insurance house is rejecting may be other one will not reject.

Posted on August 17th, 2013

vijay gajera says:

Hi Manish Ji
I am 27 Year old and I want to take TERM Insurance soon. I seen in your reviews that AVIVA is a better option, actually i have shortlisted HDFC & Kotak (Decent Claim settlement ratio next to LIC. & Aviva (As Policy Bazaar Officer has told that apart from Claim Settlement ratio we have to fill the details honestly so that the company may not get chance to reject the claim). I have included AVIVA in the list as you have mentioned that it is having Accident Rider and also as you are +ve about the company. SA 50 lakh. medical check up doesn’t matter me..

Waiting for your rational advice……..

Posted on August 18th, 2013

Samarth Shah says:

My Query is I have purchased a Term Plan on 18/08/2012 with Kotak Life Insurance for 30 Yrs and 30 Lakh S.A. Premium Rs. 4124/-. now that Aviva Term Plan offered 35 Yrs Term & 30 Lakh S.A Premium Rs. 4229/- so that should I shift KoTak to Aviva or Continued with Kotak ?Benefit of Aviva has Offered 35 yrs term & Kotak has Offered 30 yrs Term.
What you have Suggested? I am Waiting for your favorable reply…

Posted on August 19th, 2013

Abhishek Singh says:

Hi Manish,
I am 26 yrs old & I work in a MNC. My sal is 3.5 p.a. I want to start investing from now onward and am interested in opening an online term policy and had some queries as follows:

1) How much insurance cover should I opt for and what age?
2) May I include my spouse after marriage in the same cover or should I open a new one for her?
3) Should I invest in only one insurance?
4) Please suggest couple of companies for the same.

Thanks in Advance.

Posted on August 20th, 2013

Samarth Shah says:

My Query is I have purchased a Term Plan on 18/08/2012 with Kotak Life Insurance for 30 Yrs and 30 Lakh S.A. Premium Rs. 4124/-. now that Aviva Term Plan offered 35 Yrs Term & 30 Lakh S.A Premium Rs. 4229/- so that should I shift KoTak to Aviva or Continued with Kotak ?Benefit of Aviva has Offered 35 yrs term & Kotak has Offered 30 yrs Term.
What you have Suggested? I am Waiting for your favorable reply…

Posted on August 21st, 2013

Manish Chauhan says:

1. Take a 50 lacs cover
2. There is nothing like adding someone in life insurance policy . If the policy is in your name, what do you mean by adding your spouse in that ?
3. You dont invest in insurance, you buy it ! . one is good enough if its a term plan
4. Aviva, HDFC , Kotak are good options

Manish

Posted on August 21st, 2013

vikash kumar says:

Hi Manish,

I have already bought the Term Insurance 2 years back with ICICI Pru iCare worth of 50 Lakhs, currently i am looking for 50 Lakh more so should i go with ICICI again or you will suggest any other insurance.
My Age is 30, and my salary is near about 10 Lakh.
My concern is about the critical illness also.

Posted on August 21st, 2013

Manish Chauhan says:

Continue with Kotak

Posted on August 21st, 2013

Manish Chauhan says:

You can just get it increased or go with AVIVA

Posted on August 21st, 2013

Manish Chauhan says:

If you give right info , all companies are fine . If you are more comfortable with HDFC or Kotak – go with them – no issues !

Posted on August 21st, 2013

Maran says:

I’m 51 years old. My retirement age is 67. I got housing loan dues of 25 Lakhs as on date( till 65 years) and I need around 20 Lakhs for my ward’s marriage. I don’t have pension. My Gross Income is 18 Lakhs p.a. I’m diabetic under control with drugs.

When I browse the net I find TATA AIG, Bharat Axa, Aviva being in the competitive offers.
LIC is on the higher side i.e 400% .Yet I trust LIC comparing to other low offerers.

Q1. Shall I go ahead with LIC?
Q2. Is there any other to share the premium 50: 50 or what ratio?
Q3. 1 crore is ok? or less than that
Any professional , qualitative advice will fetch a consulting fee also from me.
Maran

Posted on August 21st, 2013

Manish Chauhan says:

Yes, that is possible . But not a lot help . I mean one will reject on some grounds and mostly it will be true for other also !

Posted on August 21st, 2013

Manish Chauhan says:

Hi Maran

If you want to take insurance, you can go ahead with LIC because thats what you trust . No point in going with other companies because you will doubt it a lot.

Posted on August 21st, 2013

Abhishek Singh says:

Thanx Manish for the clarification and your prompt response.

Posted on August 21st, 2013

Mayank says:

Hi Manish

Great site and wonderful comments/ discussion. Here is my story:
I’m 33 yrs old male who smokes(going to quit soon) and currently service 3 x Rs 25 Lacs SA = total Rs 75 Lacs SA term plans running from HDFC, Max life & PNB Metlife. The toal premiums I pay annually amount to Rs 22k.

I plan to discontinue all three, and go in for the plan below:
1. Kotak Preferred Term Plan SA 50 Lacs, ADB 10 Lacs, PD 10 Lacs, CIB 20 Lacs: Premium Rs 16.3k
2. HDFC Click2Protect online term plan SA 50 Lacs, no riders: Premium Rs 12.1k
Total SA: Rs 100 Lacs
Total Premium: Rs 28.5k

I also have another option B:

1. Aviva ilife online term plan SA 50 Lacs, no rider: Premium Rs 8.3k
2. HDFC Click2Protect online term plan SA 50 Lacs, no riders: Premium Rs 12.1k
Total SA: Rs 100 Lacs
Total Premium: Rs 20.5k
PLUS
A separate CIB policy.
Now I don’t know which CIB plan to go for, but which plan do you suggest? Plan A or Plan B?

Thanks in advance!

Posted on August 21st, 2013

saiyad says:

Hi Manish,

I heard that AVIVA is moving back from India. Is that true if yes, what will happen to the people who insured with it. I know they have 26% stake in Aviva Inda rest 76% is with Dabur.

Posted on August 25th, 2013

Manish Chauhan says:

The words are still on . These things keep dragging for lot of times. I would say that even if it exits, your policy will not be affected, because it will be with the indian partner.

Posted on August 26th, 2013

Mayank says:

Care to reply?

Posted on August 26th, 2013

Rajat says:

Hi Manish

I want to buy Trem insurance policy for my Wife. Policy bazaar has suggested me to buy Aegon religare Iterm plan, as it has attractive low premium rate also they claim there settlement ratio is 91% since april 2013. also it has a rider on benefits with attractive low premium. I have seen from your suggestion that you do not recommend religare instead Aviva which is 87% settlement ration. I am confused which one should be bought . Could you please advice.

Thanks
Rajat

Posted on August 27th, 2013

Rajesh says:

Hi Manish,
I am 32 years old. I have a few endowment and money back policies from lic(total 7). I am planning to take online term insurance from HDFC. Please clarify, while filling the application form for term plan, should I need to mention the Endowment and money back policies from lic. I am aware that we need to mention any existing term plans, but not sure about the Endowment and moneyback policies.

Also please let me know if you have any information on online term plan from LIC.

Thanks,
Rajesh

Posted on August 27th, 2013

Manish Chauhan says:

Yes ,you need to mention about the existing endowment plans . Its actually any life insurance policy !

Posted on August 28th, 2013

Manish Chauhan says:

there is no issue with any company as far as you are truthful in giving away your info . Just pick anyone .

Posted on August 28th, 2013

Manish Chauhan says:

I think you better go with 1 term plan only and take the riders in that plan itself. the premiums these days are lower , unlike previous years when 2 policies made sense . Option B seems to be more better

Posted on August 29th, 2013

Manish Chauhan says:

Yes , The words like this is going on . But dont worry . Even if it happens, the policies will still go on !

Posted on August 29th, 2013

Saiyad says:

Thanks Manish,

So what you suggest now, which is the good and trust worthy company to go with for term insurance.

Posted on August 29th, 2013

MSkumar says:

Hi Manish,
My Age is 23 single and i am wishing to take up a Term policy .Which one you suggest and pls explain briefly

Posted on September 2nd, 2013

amit says:

I had a term plan from kotak mahinder for 30lac with accident & disability rider of 5lac, but I want to increase sum assured to 50lac.
please help us which one to be buy.I had select 3 componey plans
HDfc clik to protect
kotak mahinder I plan
bharti axa i plan.
please guide me for the same

Posted on September 2nd, 2013

Manish Chauhan says:

HDFC click 2 protect !

Posted on September 3rd, 2013

Manish Chauhan says:

HDFC Click2Protect is a good option !

Posted on September 3rd, 2013

Manish Chauhan says:

Trust will depend on you .

Posted on September 3rd, 2013

vasu says:

sir,
i am 38 years old, please suggest best term policy with riders for 50 lakhs. And also Please mention the price of that policy what ur going to suggest. Thank u.

Posted on September 4th, 2013

Shashikant Mandal says:

Manish,
pls guide, i have a Birla sunlife dream endowment policy since June’2010 @ 1 Cr with premium of Rs. 38091 per annum, the fund value after 41 months is Rs. 14500 (surrender value is lesser by Rs. 4010. I also have a Smart Kid Policy w.e.f. 2005 with SA Rs. 4 lac.). My yearly income is Rs. 8.0 lac, am married & have 02 kids (9 yrs & 4 yrs-boys), monthly expenses @ Rs. 35000.
1. I had thought of surrendering BSLI policy before going for Term Policy but read in this blog that 2-3 months is the period it takes for the online policy to land in our hands. I have zeroed in on @ 1 Cr – Kotak Preferred @ 16285, HDFC click2protect @ 16500 (non smoker).
2. I used to be a smoker but I am not now, only the occasional puff with friends once or twice a month.
Do you feel –
Q 1. I shall mention my status as smoker @ double premium or otherwise to save in premium?
Q2. Also guide on surrendering the current policy
Q3. Guide on which policy(s) to buy?

Posted on September 4th, 2013

Shashikant Mandal says:

Manishjee,
Your reply is awaited
Regards
Shashikant Mandal

Posted on September 5th, 2013

sindhu102 says:

Hi Manish,

I am looking for term plans with disability and critical illness riders. None of the popular plans seem to be providing riders except SBI( Smart Shield). I do not have an option of combining riders with health plan as i already have Religare Care Plan.
Can you please suggest any term plans other than SBI.Also, is it preferrable to combine riders with Term plan to Health Plan? Please Advise!!

Posted on September 5th, 2013

Manish Chauhan says:

Pure terms plans generally do not give you riders . Better have riders in health insurance if available or through seperate plans .

Posted on September 7th, 2013

Raj says:

Hi Manish,

Many thanks for your detailed insight on the term insurance plans.

My age is 24 and I am looking plan having coverage of 50 Lakhs and policy term of 30-35 years .I would like to have a policy with moderate premium and good CSR which are provided by HDFC C2P,Kotak ePlan and Aviva.I have the following doubts:
1)I am not married now and would I be able to change the nominee details in future once the policy is in force?
2)I could however find that medical tests are not there for amount under 50 Lakhs,which makes me think if claim would be settled without any hassles?
3)Also,would my relocation to any other part of the country would affect my coverage if the insurance provider is not available in that location?

Thanks for any response you give,
Raj

Posted on September 7th, 2013

Manish Chauhan says:

You are a smoker when you see yourself from insurance company point of view. I dont suggest hiding this from insurance company . Please mention it .

You can just surrender the policy provided you do not understand how its running .

Posted on September 7th, 2013

Manish Chauhan says:

Check out HDFC !

Posted on September 7th, 2013

Manish Chauhan says:

Raj

1. Yes, you can change nominee later
2. Yes, it will be settled, just make sure you disclose everything properly
3. No

Posted on September 7th, 2013

Shashikant Mandal says:

Thank you Manish for the kind guidance, have discontinued the policy

Regards

Shashikant Mandal

Posted on September 8th, 2013

SID says:

hi Manish,

I would like to take 1 crore pure term insurance – wanted to split into two 50 lakhs.

I’m 31 and zeroed-in on three. If I were you, which two would you choose ?

Aviva, Kotak & HFDC

Posted on September 12th, 2013

Vetri says:

After lot of online search, shortlisted Aegon and Bharti-Axa for a Rs 1 Cr SA (plain vanilla SA with no riders). Very little difference between them on the premium. Opted for Bharti-AXA (due to relatively better settlement ratio) and paid premium online (12th August 2013).

Experience with Bharti-AXA as a carrier so far.

1. Immediately start getting communication from the company. Customer-id was provided next day to check policy status online.
2. Supporting documents (3 or 4 in count) were uploaded online in a span of next 3/4 days.
3. Irrespective of upload status, an email with standardized content of pending documents status were sent at least twice a day. Helpdesk is of not much help here.
4. In parallel, setup medical checkup in nearby designated lab. Opted for 2 check-up windows.
5. Got the checkup done on the 1st window (20th August). Standard fasting blood/urine samples followed by weight and height measurement. Next echo-cardio test was followed by pressure check up and standard queries from resident doctor. And thats it.
6. Meanwhile status keeps changing in the website from “pending documents” to “pending checkup” to “pending underwriting”.
7. Received a “payment receipt” kind-of summary policy document over email.
8. Called helpdesk to check policy status and was told policy document is being finalized and will be sent by post. There was an option to get electronically as well (in 3 days) vs by post (in 10 days) and both were allowed. Placed request to get electronic version. But NEVER GOT the electronic document as promised.
9. However within next few days (2nd September) received the print policy document.
10. Print policy document contains all the detailed questions & responses answered while applying online. It has the picture of policy holder. But no insert of the medical report.

11. Meanwhile, I tried to register my policy online with their website. This is one horrible experience so far. Their system keep saying that policy # + my DOB is not found in their system. Calling helpdesk is of little use. They keep parroting that system is down and is being fixed. With more that 10 emails to the helpdesk-id(no ticket # provided) each time a different person (no contact #) will respond with same standard message that it is sent to concerned department.

I understand the “printed policy document” is THE ONE AND ONLY LINK BETWEEN CLAIMANTS AND CARRIER and IS IMPORTANT NOT TO LOSE THIS DOCUMENT to expedite in the unfortunate situation of a claim.

Posted on September 17th, 2013

Manish Chauhan says:

Thanks for sharing that Vetri . I am sure it will help a lot of prospective buyers of Bharti Axa life insurance.

ANother point, now IRDA has started e-policy for life insurance and just like demat account has your stocks , even your life insurance policy will be there with companies, but this will take few months.

Manish

Posted on September 17th, 2013

Manish Chauhan says:

I would choose Aviva and HFDC !

Posted on September 17th, 2013

Manish Chauhan says:

Welcome

Posted on September 18th, 2013

Ravikumar says:

HI Manish

I am Ravi . Recently I applied for HDFC Click2Protect term insurance. I am 39 years old, occasional smoker and had underwent laproscopic surgery for digestion problem 6 years ago (now no issues). While applying online for 15 years term for a sum assured of 80 L, the premium calculated was Rs. 20,510. Fortunately with not much issues from HDFC, my policy is now in “Rated” acceptance status (after medical examination done) which means they have revised the premium to Rs. 28,890 from 21K and the reason which was given to me is the rate up is due to the BMI (Body Mass Index proportion). I am actually underweight (weighing 47 Kgs) with 173 cms height. Just wanted to check with you whether the justification given is ok to proceed. I am not interested to proceed to other insurance companies considering the approved status of HDFC and the issues, medical tests that are expected if applying for other companies. Please advice.

Regards,
Ravi.

Posted on September 24th, 2013

Manish Chauhan says:

You should go ahead with HDFC now , as they have atleast allowed you insurance

Posted on September 24th, 2013

Ravi Gupta says:

Hi Manish,

If I need to select one out of below mention two private company for getting 1 Cr. term life insurance. Please let me know which one I should select any why?

1. SBI Life
2. ICICI Prudential

thank you very much for this great article and for helping us in our decision.

Regards,
Ravi Gupta

Posted on September 25th, 2013

warbhog says:

Pl ,
help me, mai kal hi aviva ki i term plan quote kiya hai, medical baki hai to kripaya aap meri sahayata karia. mera income 2.5lak ,age 38 hai, 32 Y term wala 50,00,000/- ke liye quote kiyahai koi bhi rider nahi liya hai. to aage medical chekup karoo ya na karoo, lic ka online term plan sasta aur garanteed ya bharosa kar sakta hu. settelment ratio aviva ka kam hai to mai medical kanese pahele policy cancal kawa do , pl pl pl muze sahe rasta dikha digiyega.
manishkumar ,phursungi (pune )

Posted on September 30th, 2013

Manish Chauhan says:

You should go for medical tests . Just make sure that you fill all info correctly in form , all insurance companies are same

Posted on September 30th, 2013

Manish Chauhan says:

I would chose ICICI if I had to , will you ?

Posted on September 30th, 2013

jignesh says:

I AM VERY MUCH AGREE…LIC IS LOOTER

I HAVE TO SAY ONE THING…LIC IS ESTABLISHED MANY YEARS AGO…NOW THE FIRM EARNED LOTS OF MONEY..AND IF IS GOVT COMPANY THEN THEY SHOULD GIVE CHEAP PLANS TO PEOPLE ..WHY THEY DONT DO THAT? AND MOST OF THE PEOPLE IN RURAL AREA DONT KNOW THE EXACT AMOUNT (SA) NEEDED WHEN ONE EARNING PERSON DIED …
THEY JUST LOOTING THEM ONLY ON THE BASE OF THEY ARE BACKED OF GOVT.
( I AM NOT ANY AGENT FROM ANY COMPANY).
I JUST WRITE WHAT IS SEE AND UNDERSTAND.

Posted on October 6th, 2013

vijayalakshmi says:

hai i am vijayalakshmi, i am a insurance agent (LIC OF INDIA) iam widow lady i have one son 12 years old, already i have anmol jeevan policy 5 lakhs ,now i want to take amulya jeevan policy 25 lakshs its good or not ,pls advoice me.

Posted on October 8th, 2013

Srinivas Asur says:

Manish,

Last month i bought online Term insurance from Aegon Religare for 75Lakh. I want to buy further 75Lakh from another company. Can you suggest which one should i go for? Also after looking at claims rejection % from Aegon Religare i am thinking did i do right by buying term insurance from them?

Regards,
Srinivas

Posted on October 18th, 2013

Manish Chauhan says:

You can look at Aviva or HDFC Click2Protect

Posted on October 18th, 2013

Manish Chauhan says:

I dont think its a good option for you. YOu should take a term plan for securing your child life in future, also you should invest in mutual funds for long term wealth creation !

Posted on October 18th, 2013

Nirav says:

I want to make a selection for a 75 Lakhs Term Insurance between the following 3 companies;

SBI Smart Shield
Aviva Ilife
TATA AIA

Could you kindly advise ?

Posted on October 21st, 2013

Sivakumar says:

Dear Manish,
Thank s for providing valuable information on term insurance. Its really nice to see you providing replies/suggestions for all queries.
I need your suggestion for my term insurance requirements. Already i am having term insurance of 30 lacs (Amulya Jeevan from LIC). Now i want increase my term insurance coverage to 1 crore. I am planning to buy another term insurance policy from LIC for 20 lacs and 50 lac cover from pvt insurer.
Could you please suggest me whether my option is correct and also suggest good pvt insurer for buying 50 lac cover.
Many Thanks in advance.

Posted on October 22nd, 2013

mudit says:

manish
i am 28 yrs and plannin to hav a term insurance of 2 cr..
plz sugeest which iz d best company..
i m considerin aegonreligare and TATA AIA.

regardz
mudit

Posted on October 23rd, 2013

mudit says:

dear manish
i am 28 and want a term insurance of 2 cr..
plz suggest which ll b d best..
m considerin aegonreligare and tata aia..
regardz
mudit

Posted on October 23rd, 2013

Manish Chauhan says:

I would suggest for go HDFC Click2Protect

Posted on October 26th, 2013

Manish Chauhan says:

Go for Aviva or HDFC Click2Protect

Posted on October 26th, 2013

Manish Chauhan says:

I would chose Aviva

Posted on October 26th, 2013

Kaus says:

Hello Manish,

Thanks a lot for the wonderful information.

I have a query, I am looking at a PURE TERM INSURANCE Plan which one should I opt for.

Age : 32
Salary : 13L
Liabilities : Home Loan
Looking at Sum Assured : 1.5 CR.

I am inclined towards ICICI Prudential, AVIVA and SBI Life. Could you please suggest which one should i go for and should I split my policy into two ? i.e. 1 CR from X and 50 Lakhs from Y. ??

Please let me know your suggestion; do you think ICICI would be a better option than AVIVA ?

Posted on October 28th, 2013

Kaus says:

Just Adding, even HDFC is a possible choice…

Posted on October 28th, 2013

Manish Chauhan says:

I would go with AVIVA

Posted on November 4th, 2013

Prasun Goenka says:

Hi Manish,
I am really impressed with your knowledge on Insurance products.
I have taken an online term Life insurance policy from ICICI for 75 Lakhs. The premium is approx. 10,000. Kindly advise if I should continue with this policy or should look to upgrade it to 1 crore with any other insurance company.
I do not want a very high premium as I am already 33 yrs now.
Regards,
Prasun

Posted on November 6th, 2013

Manish Chauhan says:

Whats your requirement on sum assured front ? is 1 crore needed or not ?

Posted on November 12th, 2013

v murali says:

sir
I plan to go for 50L 10 year TERM PPLICY WITH HDFC
I dis closed my diabetic medicines I am at age 51 now the perimium is intimated as increased ,keeping my disclosures, it is almost double
what is the advice for me to take up the policy paying the premium at high

Posted on November 15th, 2013

Gaurav says:

Hi Manish,

I am 23 years old and already have a Aegon Religare term plan of 5o lakh with all riders till age of 75 years. I was checking if I should buy another plan.

I was checking other companies plans but observed that the max policy tenure is around 30 years. This means that if I buy another plan then it will end in my 50s.
But, my average working age would be around 65. So, I was thinking that probably I should wait for another 8-10 years and then buy an insurance plan. At that time, my dependencies and priorities may also change.

What do you think about it?

Posted on November 19th, 2013

himmat singh deora says:

Dear Manish ,
I am 41 and would like to take a term plan but i have no idea about what a term plan provides and what i should be aware of . How long do we have to pay premiums and what after the tenure is over ?

Posted on November 20th, 2013

Ashok says:

Dear Manish,

I want to take an online term insurance for Rs.50 lakhs. My age is 33. I was once a smoker and quit smoking some 4 years ago. I do occasionally smoke, 10 or 12 cigarettes in a year. Do i need to classify myself as Smoker or Non smoker. Kindly clarify.

Regards,
Ashok

Posted on November 21st, 2013

manoj chaubey says:

Hi Manish
I am going to avail housung loan for 70 lacs and want to buy Good policy which cover Minimum 75 lacs risk.

Which one you would like to suggest to cover said risk with lower premium. I am having account with HDFC Bank.

Posted on November 22nd, 2013

Manish Chauhan says:

YOu can look at options like HDFC Click2Protect or Aviva

Posted on November 23rd, 2013

Manish Chauhan says:

Yes, you should mention yourself as SMOKER

Posted on November 23rd, 2013

Manish Chauhan says:

Its a very simple product, all you get is a life cover and nothing else, if you take a policy for 30 yrs, then if you die in these 30 yrs, you get the sum assured, if you dont die, then you get nothing . Thats the reason there is low premium

Manish

Posted on November 23rd, 2013

Manish Chauhan says:

YOu can just buy another AR plan itself .

Posted on November 23rd, 2013

rajendra says:

Hi manish,

I have Aviva i-life term insurance plan of 50L for 35 year.I am 35 yr old and want additional 50L term insurance.Can you suggest any good plan for me.

Any comment on SBI and Kotak online plan.

Regard’s
Rajendra

Posted on November 25th, 2013

Chandu says:

Hi Manish,

I came to know your website recently and i became a fan of it.

Actually i have taken LIC policy on 21/7/2011 and paid premiums till date and after i read about Term insurance policy i now stopped paying my premiums.
Can you explain about different types of Term insurance and what is best like Term insurance with Return or Normal Term insurance.

Posted on November 26th, 2013

Ravikant says:

Hi Manish,

i am currently 31 years old and planning to take 1 crore term insurance.
Can you suggest me which one i need to buy as LIC premium is quite high. i have take 1/2 term police to ensure my family is secure in my absence.

Thanks for the valuable resource provide on term insurence.

Regards,
Ravikanth

Posted on November 27th, 2013

Pankaj says:

I am looking forward to buy term Plan. I am doing research & taking opinion from my friends. I am really impressed by Max life increasing monthly income plan in which they are giving lump sum amount & monthly income assurance at increasing rate of 10% p.a. i have not seen this feature in any other plan but with this option premium amount goes up. Please give your feedback on this plan.
I am 29 years, non smoker, looking for sum assured of approx 1.5 crore for the period of next 30 years.
What’s your take on this? Should i go for this or is there any other plan which i can think.
I am also considering Aviva’s i life

Posted on December 3rd, 2013

Mani says:

Hi Manish,

Very informative website and the following comments section is very helpful to know about others experience too. Can the comments section can be organized to list
the most recent comments in the top? Just a suggestion.

Posted on December 8th, 2013

Manish Chauhan says:

Mani

I had tried doing that once .. but there are nested comments also , and that makes a problem. We need to have comments one after another to keep the flow !

Posted on December 12th, 2013

Manish Chauhan says:

You can surely buy this , but remember that premium will factor all these things !

Posted on December 12th, 2013

Manish Chauhan says:

You can look at SBI e-shield or HDFC

Posted on December 12th, 2013

Manish Chauhan says:

Go for normal term plan , not return of premium , and here is the reason http://www.jagoinvestor.com/2009/04/return-of-premium-term-insurance-is-it.html

Posted on December 12th, 2013

Ajee Surendran says:

Dear Manish,
Thanks for the wonderful article.
I would like to know if there is any compnay offering term insurance to NRI´s

Regards

Posted on December 20th, 2013

Deepak Sharma says:

Hi Manish,
I need your advice for buy a life insurance policy. I am 23yrs. And can invest 10k/annul. I need a plan base on insurance + saving. while i will need to pay premium 15 to 20yr.
Thanks

Posted on December 21st, 2013

Preeti Sharma says:

Hello Mr Manish,
!I am a single Parent at age 40(husband died) with two kids(son 15 years, daughter 10 yrs),having around 7lac per anum income by self business. kindly give me the advise how I should plan .
As I checked that I should take
2.Term insurance-worth 1cr , which company I should select ,is 1 cr is correct amount
3. which pension plan I should opt and what amount I should target,at what age I should start getting the pension.
4. should I take any money back policy also than whish one and of how much amount.
5. how much amount I should save for my daughter for after 15 years and what is the best method of returns(FD or SIP or GOLD or life policies,or education plan).
6 have taken 5lac family floater health cover, that much is the right amount?
7 anything thing else I should do to protect my family?
your advise will be very very helpful.
thanks
Mrs Sharma

Posted on December 22nd, 2013

Rajeev Rana says:

Mr Dhawal,
Do you understand the definition of the word RATIO…

Posted on December 23rd, 2013

Arvind says:

Hi Manish
Thanks for the info you have shared on this blog.. very informative

I have a a term insurance policy from ICIC PRU, i took it when i was in india, i am a NRI now(since 4 years) & just wondering how its going to impact the policy?

Arvind

Posted on December 23rd, 2013

Lokesh says:

Hi Manish,

You have been a great help to all common man, hats off to your help!. Truly appreciate it!

I am planning for a Online term policy and have narrowed down to ICICI icare and SBI Life . Kindly request your assistance in choosing between them.

Thanks in advance.

Posted on December 23rd, 2013

Manish Chauhan says:

I would choose SBI in between them

Posted on December 25th, 2013

Manish Chauhan says:

Just want to ask if you were still NRI when you took it and did you declare that you are NRI or did you lie to them or didnt disclose this fact ? If you have not , then its more of breach of trust and info .

Posted on December 25th, 2013

Manish Chauhan says:

I suggest

2. HDFC would be a good choice

3. I dont think you should opt for a “plan” . Better accumulate the money through other things like PPF, mutual funds etc and then later you can plan for pension from the accumulated money

4. I dont suggest

Overall I think you need a proper financial planning, because you have too many questions . WHy dont you work with a financial planner in your city or just follow my book – “How to be your own financial planner in 10 steps” – https://bitly.com/Financial-planner-book

Posted on December 25th, 2013

Manish Chauhan says:

Why do you want to mix insurance + saving ?

Posted on December 25th, 2013

Manish Chauhan says:

OPt for some offline term plan , you might get it

Posted on December 25th, 2013

mukesh kumar says:

Hi, Manish

Thank u for sharing wonderful ideas..I hav no clue about investment and insurance..Kindly suggest me where should i invest to get gud return without risk. I can invest up to 15000 per annum..should i go for pension plan, becz i am looking to buy one. should i go for ppf…plz suggest..

Posted on December 26th, 2013

Prasanth says:

Hi Manish,

I just would like to take your suggestion about to Term Plan which also include Accidental death risk.

I have 2 daughter,I just would like to secure my family with Term insurance.I would like to take your suggestion about choosing the company Term Insurance,Hence it will be easy at the time of claiming.

Your input is well Appreciate.

Thanks,
Prashanth

Posted on December 28th, 2013

Manish Chauhan says:

Prasanth

If you are honest about giving information at the time of taking the policy, then you will not face issues with any company, if you just need names, I can suggest Aviva or HDFC , but others are also fine !

Posted on December 28th, 2013

Manish Chauhan says:

Mukhesh

You cant get wonderful returns without RISK , dont try to find how to do it because it cant happen :) . I suggest first slow down and read few more articles and take help from our forum – http://www.jagoinvestor.com/forum

Posted on December 28th, 2013

Ujjval says:

I have 50 lacs LIC term insurance. My annual income is around 9 lacs and age 30 years working in IT. Wanted to buy another 50 lacs term insurance ot make it 1 cr. But for lesser premium was thinking to go for online insurance – SBI or HDFC CLick2Protect. But both doesn’t have riders, and same as mine LIC. Was thinking I should have term plan with riders for CI and Disability etc. What do you suggest? Which online insurance I should go and how can I cover riders I am looking for?

Posted on December 31st, 2013

amit says:

i m 33 years old married with 2 kids & want to have a term plan of 50 lakhs/ 70 lakhs ,kindly guide me.

Posted on December 31st, 2013

Prasanna says:

What about Aegon Religare?

Posted on January 2nd, 2014

Manish Chauhan says:

Their claim settlement ratio till now has not been very great .

Posted on January 4th, 2014

Manish Chauhan says:

You can go for any term plan in market . You should go for 1 crore as the premiums are cheaper !

Posted on January 4th, 2014

Manish Chauhan says:

I suggest that first focus on main cover, riders are always extra . Dont deny a good company cover because it does not have riders . You can anytime buy the RIDERS later with a personal accident cover !

Posted on January 4th, 2014

Pallab Mukherjee says:

Hi Manish,
Thanks for the great article. it is really helpful and provides enough information for one to choose term insurance. I have finally selected HDFC click2protect for 1 crore. My age is 35 years. Few questions –
Do you think it is a good choice?
I am married but no kids as of now. In future, can I include kids as beneficiary?
Can I also include my parents as beneficiaries? If something happens to me, they will be hit equally, not just my wife. So, want to secure the entire family. Is this doable?

Thanks again for your help.
Pallab

Posted on January 7th, 2014

Arjun says:

Hi Manish,
I’m 35 yrs old and looking for a term insurance for 30 years. I just compared the premiums for 30L, 40L and 50L in AVIVA and HDFC life. Details as below.
It looks like premium for 40L is less than 50L in both these cases. I don’t really understand why this is happening. Can you please explain?
30L 40L 50L
AVIVA 5363 7150 5669
HDFC Life 7922 10562 8652

Posted on January 7th, 2014

Prakash says:

Hi Sir,

You are doing a great job. What is your point of view about Edelweiss Tokio Life Insurance Term poilcy, they have some excellent riders..I am not sure if the riders are allowed by IRDA..?

Is Edelweiss Tokia good when it comes to Term Life Insurance..?

Posted on January 8th, 2014

Binaya says:

Dear Manish,

Already I purchased one 40L term insurance from AVIVA with return premium at maturity.Already 02 yers I deposit. Minimum deposit should be 03 yeras. So I should close this after this year payment by any alternative or continue.

Posted on January 9th, 2014

Manish Chauhan says:

Is it a TERM PLAN ? If it is, then there is no requirement of minimum 3 yrs payment !

Posted on January 9th, 2014

Manish Chauhan says:

Now riders are stopped by IRDA . As a company I do not have a comment right now , as I have not seen much talk about the company, but if you do not mess up while giving the information at the time of taking the policy, it should be fine with any company

Posted on January 9th, 2014

Manish Chauhan says:

Here is the reason http://www.jagoinvestor.com/2012/03/term-insurance-plan-cover-above-50-lacs.html

Posted on January 9th, 2014

Manish Chauhan says:

Yes, you can add their names as NOMINEES , but more than that, you need to make a WILL stating that they should also get the money . Just adding name of Parents in NOMINEE list is not a complete solution .

Read more about nominees here – http://www.jagoinvestor.com/2010/10/will-your-nominee-get-the-money-on-your-death.html

Posted on January 9th, 2014

MI says:

Hi Manish,

I am 31yrs old(smoker) and looking to buy a term plan. I came across the LIC Jeevan Saathi plan which covers both me & my wife and also provides survival benefits. Pls suggest if I should go for this plan or some other one. I am looking at a cover of 1-1.5Cr.

Thanks
MI

Posted on January 9th, 2014

Manish Chauhan says:

What is the premium for it , I think its a savings plan and not a pure cover policy

Posted on January 9th, 2014

venkata says:

I am NRI, 35 yrs, took Bajaj Allianz iSecure online term plan for SA 1.05Cr, with ADB 35L, TPD 35L and premium weaver for 30Yrs term at Rs. 25K annually in Oct-2013, Since bajaj & kotak only offering online term plans to NRIs. Bajaj has relatively big customer base with 90% Claim settlement ratio and 6% repudiation. I disclosed all facts known to me, couple of queries and answers through emails and medical checkup done and policy issued.
If I am resident indian, I will opt for Maxlife online term plan.

How is my decision opting Bajaj allianz iSecure plan? Comments/ suggestions plz.

After 5 yrs, I will review my insurance needs and will buy term plans.

Thanks.

Posted on January 9th, 2014

ketan says:

Hi manish,

I am planning to buy term plan.. with rider benefit or without rider benefit. pl. sugget.

Posted on January 10th, 2014

Manish Chauhan says:

Any options you have shortlisted ?

Posted on January 14th, 2014

Manish Chauhan says:

How did you do the Medicals ? Was it done in India or abroad ?

Posted on January 14th, 2014

Aditya says:

Hi Manish,

I am a 33 year old male earnign around Rs. 10 Lacs a yea. I am married and have a housewife mother and wife age 29 years earnign around Rs. 6 Lacs a year. I want to go for Rs. 1 crore SA term plan can you please suggest me so good insurance term plan? Is 1 Crore SA is enough for me? How much insurance term cover I shall buy for my wife? My focus is on good claim settlement record.

Thanks,

Posted on January 14th, 2014

Supta says:

Hi Manish,

I am 30, married male and recently took a term plan of 1cr with Aviva iLife for 35 years. I did want to go for LIC to begin with but their high premium deterred me. Do you suggest I take another one from LIC for a lower amount (say 20 lakhs) under same conditions and time frame? Because in case of death, if LIC settles the claim and Aviva does not then we can take this to the ombudsman. Please share your thoughts.

Regards,
Supta

Posted on January 15th, 2014

chetan bhargav says:

Hi Manish,

I have paid online for term plan about 9 days back.

I was sugggested by my friend other policy of other co with better features at same charges.

How can I cancel first, I have not submitted required documents like ITR.

pl reply whether I will be charged for cancellation.

chetan bhargav

Posted on January 16th, 2014

Aanand says:

Dear Manish,

I am so happy that so many have taken your advice.

I had got good advice some 3 years back and had bought 25 lakhs worth term plan from LIC – Amulya Jeevan. It now appears that amulya jeevan is closed.

I want to buy additional 50 lakh term insurance from LIC – so please advise me.

Regards,

Aanand

Posted on January 16th, 2014

Lalit says:

Dear Manish,

I want to go for a online term insurance for myself (38 yrs) and my wife (33 yrs) for 1 crore each.

With so many companies for online and comments/responses online we are a little bit confused which one to go for. I had checked Tata AIA (iRaksha Supreme) and Bharti Axa. Please can you suggest either from these or any better with low premiums.

Posted on January 18th, 2014

Logu says:

Hi Manish,

Really a very great article. It is very helpful for me to choose a term insurance plan. I took about a month to read up all the above queries and comments. I have finally settled down to Avia i-Life for 1 crore through online, considering Premium, claim settlement ratio, number of years, etc. My age is 28 years, so premium also i felt cheaper. The premium amount for 1 crore is lesser than 90 & 95 Laks. I dono why they have kept like this in Aviva. Anyway,

The things which i would like to share regarding Aviva which may help others who wanna take the same.
1. They told clearly that my premium amount might increase after the medical test report. But it hasn’t.
2. All the medical reports were sent to my mail, seems reports werent given to customer in other Insurance companies.
3. They requested for, 1.Pancard, 2. Form 16 , 3.Three Month salary slip & 4. Six Month Bank Statement. This is just for information, before applying you may keep all these things ready as softcopy.
4. You will get a call from them from the next minute after you start applying, strictly ask them to wait until u urself fill up the form. Say them to call at your convenient time just to ask any queries if u get while applying. It may take an hour or two to complete the full form at a stretch. U can edit the information until u pay to them. So take your own time (Even days). If ur Bday is nearyby,try to finish off soon.
5. Before get into medical test, try to avoid junks at the last 1 or 2 days which may show a abnormal result lead to increase in your premium. Be cool while taking up all the medical tests.

6. Some guys have asked whether to go for 50:50 in two insurance companies. My personal opinion is not to make our family get into trouble running after companies one by one . If one company reject our claim for some reason, sure the other one also ll reject for the same reason.

Thanks Manish for giving this article which is helping a lot to everyone.

Posted on January 18th, 2014

joydeep says:

Suppose someone has a term life insurance policy running for three years…now if he dies on the third year and it is found that he did not disclose some medical condition(s) at the time of buying the policy three years back , will his nominee’s claim get rejected ?

I mean, is it true that after two years of a term life insurance policy have passed without any claim, the insurer cannot reject a death claim on the ground of non disclosure of facts ?
Is there any IRDA guideline regarding this point ?

Posted on January 18th, 2014

Manish Chauhan says:

No , that guideline will not apply, its hugely mis-interpreted by people . Only those things which do not influence the premium will be considered like Home address, Phone Number, Number of Siblings .. these data if found wrong, they cant be influential in premium calculation. But if one hides MEDICAL Issues, its 100% breach of contract and the claim will surely and SHOULD BE denied !

Manish

Posted on January 20th, 2014

Manish Chauhan says:

Thanks for listing down all those 6 points :) . I am sure it will help a lot of other people !

Posted on January 20th, 2014

Manish Chauhan says:

They are all good if you do not hide information, You also have HDFC Click2Protect !

Posted on January 20th, 2014

Manish Chauhan says:

What suggestion you want now here ? Just go for LIC policy !

Posted on January 20th, 2014

Manish Chauhan says:

No should should not be. When you buy any insurance policy, after you get the policy document, you have time to give it back and its called “Free Look Up period” . So just contact the company and make sure you keep the records (like email)

Manish

Posted on January 20th, 2014

Manish Chauhan says:

Hi Supta

You can do that , but one company settling claim does not mean the other will. If you have not disclosed your medical info with AVIVA , but you have done in LIC, then in case of claim LIC will pay the claim, but Aviva will not for the obvious reasons .

Posted on January 20th, 2014

Manish Chauhan says:

Hi Aditya

To arrange for a 30 yr income for family you should take 250 times of the monthly expenses as the term cover. So if your expenses are 50k in family, take a 1.25 crore term plan . I hope this will help you !

Manish

Posted on January 20th, 2014

joydeep says:

Thnx Manish ji…

But what will be the case if it is found that the said medical condition was un-diagnosed on the date of purchase of policy…

What if some serious disease begins to manifest three-four years after taking the policy…there are numerous silent killers which doesn’t manifest any symptoms at all at the beginning until it is to late or has become terminal…

What I want to hint …what will be the case if the policy holder did not disclose the medical condition because he himself was GENUINELY unaware of it…?

Posted on January 20th, 2014

Aanand says:

Hi Manish,

There are no term plans in LIC anymore. Amulya Jeevan is closed.

There is news that LIC would be coming up with a online teerm policy but I am not sure if this is speculation or actual fact.

Can you guide if there is any new policy in LIC or what is the second best?

Regards,

Aanand

Posted on January 22nd, 2014

Sagar says:

Hi,

I have shortlisted following plans:

1) HDFC Life; Click2Protect
2) ICICI Prudential; i-Care
3) SBI life; eShield

My criteria is low premium, High claim settlement ratio, low solvency ration.

Require Insurance of 1 Crore.
Can you suggest which one should I choose? If not these 3, any different option you can suggest?

Regards

Posted on January 23rd, 2014

rama says:

I am planning to take TATA AIA iRaksha Supreme for 75lacs. is it good please advise.

Posted on January 24th, 2014

SAMEER says:

Hi manish, i am 22 years old , and i want to take a term insurance which last for long time. I am at a very high age. I have some queries. One is that is online term plan buying is safe? And secondly would the premium amount be same lifelong , once taken? which will the best policy for me?

Posted on January 24th, 2014

M.Gnanasekaran says:

Hi Manish,

I am looking for online term plan of 50l + riders, but getting confused in that many planer in pvt. sector.
presenly i selected Maxlife online term insurance. is it good policy?

Please guide me.

Regards,

Posted on January 30th, 2014

Manish Chauhan says:

Hi Gnanasekaran

You can go with any company at the end of the day, but if you talk about the most talked about companies they are HDFC, Aviva !

Posted on January 30th, 2014

Manish Chauhan says:

Yes premium will be same life long . You can take it till 60 yrs of yours. Any company is fine as far as you are honest in telling them all information !

Posted on January 30th, 2014

Manish Chauhan says:

read about it here http://www.jagoinvestor.com/forum/tata-aia-i-raksha-supreme-should-i-buy

Posted on January 30th, 2014

Manish Chauhan says:

Sagar

Did you calculate the premium on their websites ? Which one is lowest ? Just go ahead with that one !

Posted on January 30th, 2014

Manish Chauhan says:

I would have gone to HDFC or Aviva !

Posted on January 30th, 2014

Niranjan S A says:

Hi Manish,

I am 27yrs old non smoker. I am planning to buy a online term insurance for 50lakhs. Which is the best one. I am confused between Religare and ICICI. What is the claim settlement ration for Religare and ICICI in 2012-2013. Hows the customer service from these 2 companies now.

-Niranjan

Posted on January 30th, 2014

Manish Chauhan says:

I would go with ICICI given two , why not Aviva or HDFC ?

Posted on January 31st, 2014

Manish Chauhan says:

I know these doubts crop up , but then you will have to trust the system and companies at this level, else you will never take the policies. Everything is recorded and we are now in the advanced world which will detect all these things .

Posted on January 31st, 2014

Saurabh Jain says:

Hi Manish,

First of all , thanks a lot for writing so enriching articles. I have been reading them since a week , and I have read almost all your previous articles as well. thank you for enriching my financial info.

I need a suggestion : I am 29 year old earning 10lpa, wife earning 6 lpa, I am planning to retire at age 60 .Please suggest me how much insurance cover I should take and what all riders I should include ?

I am thinking of max life and aviva. 75 lakhs , 35 years with critical illness rider and accident cover .
How would you rate max life monthly income plan against aviva, which one should i take?
Also should i buy separate policies to cover 75 lakhs ?
Should I buy separate critical illness policy ?

I have asked so many questions. It is my first post on the site

Thanks again

Posted on February 2nd, 2014

Manish Chauhan says:

Hi Saurabh

Welcome ! , I think you should take a pure term plan and not some investment cum insurance plan . take a 30 yr 1 crore term plan for both and thats all ! . keep it simple !

Posted on February 3rd, 2014

Partha Sarathi D says:

Hi Manish,

Need to know the best investment plan. Am 39 yrs (Smoker) from Hyderabad. Canu suggest me some.

Posted on February 3rd, 2014

shuvam says:

WHY CAN’T WE SEE THE COMMENTS AFTER JULY 25, 2013?

Posted on February 6th, 2014

shuvam says:

Hi Aanand,

LIC has come up with Amulya Jeevan 2 and withdrawn the old Amulya Jeevan. You can go for that.

Regards,
Shuvam.

Posted on February 6th, 2014

shuvam says:

Hey Manish,

I got your point. But assume I have correctly provided all details to both. Do you think, in that case both Aviva and LIC have equal chances of setling the claim? As you have posted, the table shows Aviva’s claim settlement ratio is lower, hence my question.

Thanks,
Supta.

Posted on February 6th, 2014

sathish says:

Hi..i would like to take term policy for my dad and my mom, my dad is 51 years old now and he is an agriculture farmer.My mom is house wife .can i take term policies for them.please suggest me ?

Posted on February 7th, 2014

Senthil says:

Hi Manish,

I am from chennai. I wanted to know if there are any conditions for a term plan settlement like pre-existing conditions not paid, death is not natural/accident, etc.

Your assistance would be of great help.

Posted on February 11th, 2014

Ram says:

Hi Manish,

Thank you for a great, detailed information. Recently, I had been approached by ICICI Prudential about a term plan with a quotation that is less than HDFC life/Kotak. In your response you were recommending Aviva/Kotak. Is there any specific reason you’re not recommending ICICI PruLife?

-Ram

Posted on February 14th, 2014

Manish Chauhan says:

There is nothing like that, you can go with even ICICI .. I just took 2 names , and its obvious some company would not come in that 2 names. As far as you give right information while taking up the policy, you can go with any company

Posted on February 14th, 2014

Manish Chauhan says:

Hi Senthil

All the deaths are covered

Posted on February 14th, 2014

Manish Chauhan says:

Yes you can take it for them, but the question is – “Should You take term plan for them” ?

Posted on February 14th, 2014

Manish Chauhan says:

Yes, both will settle the claims . The claim settlement ratio is the past ratio due to claim quality . Try to understand it in a better way !

Posted on February 14th, 2014

Manish Chauhan says:

Thanks for sharing that :)

Posted on February 14th, 2014

Manish Chauhan says:

There are many comments after that date like this http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-85894

Posted on February 14th, 2014

sathish says:

.Thanks for replying………yes,i want to take term policies for them.what do you suggest on this..?.

Posted on February 14th, 2014

Manish Chauhan says:

You can go ahead,but the premium will be like a bomb , are you ready to pay for that ?

Posted on February 14th, 2014

Amit Anand says:

HI Manish,

I need your help with Term Life Insurance. I want to take a mix of pvt. insurer and govt. company. Instead of combining LIC Term insurance and HDFC click to protect, can I combine SBI e shield and HDFC click to protect. is SBI also govt. owned and as good as LIC. I want to take 50 lac form SBI and HDFC each because i feel SBI is govt owned and trust worthy and HDFC has good claim settlement ratio and low premium.

Please advise.

Posted on February 25th, 2014

Amit Anand says:

Hi Manish,

I want to combine pvt insurer and govt company. Is it good to combine SBI and HDFC, 50 lac each. IS SBI as good as LIC and trustworthy? Is SBI life govt owned? ALso I think if I take more than 70 lac from one provider they they ask to go for medical test, which i think is better, however if I take 50 lac from each, then medical test will not be done.

Also if I my income is 9 lac p.a., then can I get 1 crore each from SBI and HDFC.

Posted on February 25th, 2014