OUR BOOKS

16 personal finance principles every investor should know how to be your own financial planner in 10 steps 11 principles to achieve financial freedom

Best Term Insurance plans in India – Comparison with Charts

by Manish Chauhan · 1,696 comments

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 .



Subscribe via RSS or Email:
What do you want to read about
Mutual Funds Life Insurance BankingHealth Insurance Credit Report and ScoreMost Commented ArticleReal Life Experiences Share MarketLoans Real Estate Income TaxCredit Cards For Begineer Investors Succession Laws EPF ULIP Product ReviewsBest of Jagoinvestor Other Products & Concepts How-TO GuidesBooks, Launches, Initiatives Investors Myths Psychology & Wisdom PPF General  
Buy Jagoinvestor Books in Ebook Format

{ 1695 comments… read them below or add one }

1 Hemant Beniwal December 23, 2010 at 9:03 pm

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.

Reply

2 Manish Chauhan December 24, 2010 at 12:06 am

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

Reply

3 Hemant Beniwal December 24, 2010 at 5:37 am

@ 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.

Reply

4 neeraj saini December 24, 2010 at 11:26 am

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.

Reply

5 Manish Chauhan December 24, 2010 at 5:01 pm

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

Reply

6 Tarun January 15, 2011 at 12:35 pm

@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.

Reply

7 Manish Chauhan January 15, 2011 at 9:00 pm

Tarun

Yes , you are correct

Manish

Reply

8 Anurag February 12, 2011 at 12:35 pm

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.

Reply

9 Manish Chauhan February 12, 2011 at 12:39 pm

Anurag

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

Manish

Reply

10 Jayant Bhat March 31, 2011 at 11:30 am

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.

Reply

11 Manish Chauhan March 31, 2011 at 12:50 pm

Agree

Reply

12 gaurav March 31, 2011 at 1:09 pm

“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.

13 Bhaskar S. M December 14, 2011 at 10:39 pm

It is not govt duty.

14 Akshay Telang April 24, 2011 at 11:42 am

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

Reply

15 Avinash January 13, 2012 at 10:15 am

Very true…!

16 jignesh October 6, 2013 at 5:16 pm

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.

17 moonlightdriver September 24, 2011 at 5:02 pm

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

Reply

18 Bhaskar S. M December 14, 2011 at 10:40 pm

its 100% true.

19 Ashutosh Gangrade January 6, 2012 at 12:22 pm

@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.

Reply

20 krupa January 19, 2012 at 12:16 pm

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.

Reply

21 vijay March 22, 2011 at 6:01 am

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.

Reply

22 Manish Chauhan March 22, 2011 at 3:44 pm

Vijay

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

Manish

Reply

23 Shyam June 2, 2011 at 5:35 pm

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

Reply

24 amit August 3, 2011 at 12:27 am

are pagal…lic is best…r u mad

Reply

25 Manish Chauhan December 24, 2010 at 4:58 pm

Hemant

Ok got it :)

Manish

Reply

26 Sam October 28, 2011 at 3:58 pm

Dear Hemant,

Really Meticulous! Eye opening! Leads to break generalisations. Where did you get these details?

Thanks for your contribution!

Reply

27 Animesh February 7, 2012 at 10:34 pm

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.

Reply

28 Tarun Mittal February 15, 2011 at 2:44 pm

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

Reply

29 Manish Chauhan February 15, 2011 at 3:49 pm

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

Reply

30 Tarun Mittal February 15, 2011 at 4:34 pm

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

Reply

31 Jitendra Wagh April 7, 2011 at 1:38 am

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

Reply

32 Anurag February 4, 2012 at 11:41 pm

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

Reply

33 CA RAJIV SAXENA March 17, 2011 at 11:44 am

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?

Reply

34 Manish Chauhan March 17, 2011 at 5:00 pm

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

Reply

35 Murali S September 23, 2011 at 12:46 pm

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.

Reply

36 Manish Chauhan September 24, 2011 at 9:28 pm

Murli

Thanks for answer

Manish

Reply

37 Krishna Kishore Appala June 9, 2012 at 8:31 am

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

Reply

38 vishal vashisht June 15, 2012 at 8:24 pm

then what about sbi
is there worry of default because no partner

Reply

39 NSK July 4, 2012 at 2:56 pm

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

Reply

40 Sandy June 30, 2011 at 6:06 pm

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.

Reply

41 Manish Chauhan June 30, 2011 at 7:03 pm

Sandy

True , and thats the major reason why pvt insurers rejection ratio is on high side .

Manish

Reply

42 Sankha November 19, 2011 at 11:35 pm

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%.

Reply

43 Manish Chauhan November 20, 2011 at 1:17 pm

Sankha

Thanks for the info .. its a valuable information :)

Manish

Reply

44 Anurag February 4, 2012 at 11:45 pm

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

Reply

45 Manish Chauhan February 6, 2012 at 6:12 pm

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

Reply

46 Rishi February 24, 2012 at 1:10 pm

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 -

Reply

47 Manish Chauhan February 24, 2012 at 8:08 pm

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

Reply

48 Rishi February 27, 2012 at 1:01 pm

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.

Reply

49 Manish Chauhan February 27, 2012 at 7:34 pm

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

Reply

50 heman artist November 16, 2011 at 11:50 am

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.

Reply

51 Dilpreet Singh Bagga November 17, 2011 at 7:59 pm

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

Reply

52 Amol Chavan April 16, 2014 at 11:21 am

CIB cover is to make sure that ones family will have to expense a lot on the critical illness and even after that a person expires then it help in recovering the expense cost. But you can increase the coverage if you held bend on taking insurance from company which do not allow CIB

Reply

53 Sud December 23, 2010 at 9:06 pm

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 :)

Reply

54 Manish Chauhan December 24, 2010 at 12:09 am

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

Reply

55 steven December 23, 2010 at 10:06 pm

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.

Reply

56 Manish Chauhan December 24, 2010 at 12:11 am

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

Reply

57 steven December 24, 2010 at 12:15 am

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.

Reply

58 Manish Chauhan December 24, 2010 at 12:25 am

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

Reply

59 steven December 24, 2010 at 12:34 am

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

Reply

60 Manish Chauhan December 24, 2010 at 5:05 pm

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

Reply

61 steven December 26, 2010 at 6:14 pm

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.

Reply

62 Manish Chauhan December 26, 2010 at 7:27 pm

steven

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

Manish

Reply

63 Suresh January 4, 2011 at 1:16 am

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.

Reply

64 Vish November 11, 2011 at 4:25 pm

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..

Reply

65 basu May 5, 2012 at 11:39 am

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?

Reply

66 Manish Chauhan May 5, 2012 at 12:05 pm

Basu

I will do a post on how to go about the claim settlement soon ,

Reply

67 Shirish November 24, 2011 at 11:20 pm

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.

Reply

68 Rakesh December 23, 2010 at 10:38 pm

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

Reply

69 Manish Chauhan December 24, 2010 at 12:15 am

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

Reply

70 Basavaraj December 24, 2010 at 7:40 pm

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?

Reply

71 Manish Chauhan December 24, 2010 at 7:51 pm

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

Reply

72 Anurag February 12, 2011 at 12:45 pm

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

Reply

73 Manish Chauhan February 12, 2011 at 1:00 pm

Anurag

Great, thanks for your reply .

Manish

Reply

74 Jitendra December 23, 2010 at 10:47 pm

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.

Reply

75 Manish Chauhan December 24, 2010 at 12:18 am

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

Reply

76 Anunay December 28, 2010 at 11:20 pm

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.

Reply

77 Manish Chauhan December 29, 2010 at 9:53 am

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

Reply

78 Anurag February 12, 2011 at 1:02 pm

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.

Reply

79 rahul December 23, 2010 at 11:03 pm

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,

Reply

80 Manish Chauhan December 24, 2010 at 12:31 am

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

Reply

81 steven December 24, 2010 at 12:44 am

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

Reply

82 Manish Chauhan December 24, 2010 at 5:23 pm

Steven

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

Manish

Reply

83 steven December 26, 2010 at 1:10 am

India

Reply

84 Prasanna December 28, 2010 at 12:23 am

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??

Reply

85 Manish Chauhan December 29, 2010 at 10:49 am

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

Reply

86 pprajru January 13, 2011 at 3:27 pm

@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

Reply

87 Manish Chauhan January 13, 2011 at 3:49 pm

pprajru

Looks good to me . both are good

Reply

88 Mayur Modi February 8, 2011 at 1:37 am

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

Reply

89 Manish Chauhan February 8, 2011 at 11:08 am

Mayur

Thanks for the information :0

Reply

90 Mayur Modi February 8, 2011 at 1:45 am

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

Reply

91 Ramesh Desai December 24, 2010 at 12:41 am

Excellent write-up ! Very informative !!

Reply

92 Manish Chauhan December 24, 2010 at 5:30 pm

Ramesh

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

Manish

Reply

93 jig December 24, 2010 at 4:24 am

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

Reply

94 Manish Chauhan December 24, 2010 at 5:34 pm

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

Reply

95 NARESH SHARMA December 24, 2010 at 5:56 am

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!

Reply

96 Manish Chauhan December 24, 2010 at 6:14 pm

Naresh

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

Manish

Reply

97 Senthil Nathan December 24, 2010 at 6:06 am

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

Reply

98 Manish Chauhan December 24, 2010 at 6:16 pm

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

Reply

99 jig December 25, 2010 at 3:07 pm

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

Reply

100 Manish Chauhan December 25, 2010 at 3:26 pm

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

Reply

101 bharat December 24, 2010 at 8:00 am

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.

Reply

102 Manish Chauhan December 24, 2010 at 6:17 pm

Bharat

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

Manish

Reply

103 Srikanth December 24, 2010 at 8:33 am

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

Regards,

Srikanth
FundsIndia.com

Reply

104 Manish Chauhan December 24, 2010 at 6:19 pm

Srikanth

Thanks for the feedback and the RT :)

Manish

Reply

105 srg December 24, 2010 at 8:57 am

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

Reply

106 Manish Chauhan December 24, 2010 at 6:21 pm

Srg

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

Manish

Reply

107 nitin December 24, 2010 at 8:58 am

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.

Reply

108 Manish Chauhan December 24, 2010 at 6:24 pm

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

Reply

109 S Pani December 24, 2010 at 9:52 am

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

Reply

110 Manish Chauhan December 24, 2010 at 6:46 pm

S Pani

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

Manish

Reply

111 S Pani December 27, 2010 at 2:43 pm

It will be in addition to existing policy.

Reply

112 Manish Chauhan December 29, 2010 at 10:50 am

ok in that case its fine :)

Manish

Reply

113 JKMishra May 22, 2011 at 1:31 am

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.

Reply

114 Manish Chauhan July 18, 2011 at 6:23 pm

Yes you can do that

Reply

115 Prashant December 24, 2010 at 10:20 am

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 !!

Reply

116 Manish Chauhan December 24, 2010 at 7:38 pm

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

Reply

117 Mitr Singh December 24, 2010 at 10:21 am

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

Reply

118 Manish Chauhan December 24, 2010 at 7:39 pm

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

Reply

119 Prasoon December 24, 2010 at 10:51 am

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?

Reply

120 Manish Chauhan December 24, 2010 at 7:41 pm

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

Reply

121 Shilpi Chaudhry December 24, 2010 at 11:22 am

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

Reply

122 Manish Chauhan December 24, 2010 at 7:46 pm

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

Reply

123 gaurav December 24, 2010 at 12:00 pm

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.

Reply

124 Manish Chauhan December 24, 2010 at 7:49 pm

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

Reply

125 jig December 25, 2010 at 3:14 pm

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..

Reply

126 Manish Chauhan December 25, 2010 at 3:28 pm

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

Reply

127 jig December 26, 2010 at 3:36 pm

Sorry manish
but my question was to Mr Gaurav.

keep sharing

Reply

128 gaurav January 12, 2011 at 9:41 pm

@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.

Reply

129 Sunil December 24, 2010 at 12:25 pm

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..

Reply

130 Manish Chauhan December 24, 2010 at 8:03 pm

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

Reply

131 Krish December 24, 2010 at 1:39 pm

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.

Reply

132 Manish Chauhan December 24, 2010 at 8:03 pm

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

Reply

133 Arindam December 24, 2010 at 3:19 pm

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.

Reply

134 Manish Chauhan December 24, 2010 at 8:04 pm

Arindham

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

Manish

Reply

135 Arindam January 5, 2011 at 11:34 am

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!!

Reply

136 Arindam January 5, 2011 at 11:46 am

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.

Reply

137 Manish Chauhan January 6, 2011 at 5:53 pm

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

Reply

138 Harish December 24, 2010 at 3:24 pm

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

Reply

139 Manish Chauhan December 24, 2010 at 8:05 pm

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

Reply

140 sb December 24, 2010 at 3:31 pm

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.

Reply

141 Manish Chauhan December 24, 2010 at 8:06 pm

sb

Yes, but not very soon !

manish

Reply

142 Dhawal Sharma December 24, 2010 at 4:37 pm

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 ;-)

Reply

143 Manish Chauhan December 24, 2010 at 8:09 pm

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

Reply

144 Manish Chauhan December 24, 2010 at 8:20 pm

Dhawal

Added your comments in the main article :)

Manish

Reply

145 herge December 25, 2010 at 8:28 am

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.

Reply

146 Manish Chauhan December 25, 2010 at 12:11 pm

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

Reply

147 herge December 25, 2010 at 12:39 pm

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

Reply

148 Manish Chauhan December 25, 2010 at 1:04 pm

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

Reply

149 Manish Chauhan December 25, 2010 at 1:04 pm

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

Reply

150 jig December 26, 2010 at 3:43 pm

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

Reply

151 Manish Chauhan December 26, 2010 at 4:13 pm

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

Reply

152 jig December 27, 2010 at 12:01 am

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

Reply

153 Dhawal Sharma December 27, 2010 at 1:47 am

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

Reply

154 Basavaraj December 27, 2010 at 7:03 pm

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.

155 Manish Chauhan December 29, 2010 at 11:05 am

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

156 Manish Chauhan December 29, 2010 at 10:55 am

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

Reply

157 Jig January 2, 2011 at 5:19 pm

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

158 Maalan September 1, 2011 at 10:35 pm

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.

Reply

159 Manish Chauhan September 2, 2011 at 8:42 am

Maalan

No , the premiums are decided as per the current situation , whatever happens later does not matter much .

Manish

Reply

160 Rajeev Rana December 23, 2013 at 1:50 am

Mr Dhawal,
Do you understand the definition of the word RATIO…

Reply

161 Hari December 24, 2010 at 5:22 pm

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.

Reply

162 Manish Chauhan December 24, 2010 at 5:26 pm

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

Reply

163 Hari December 24, 2010 at 8:03 pm

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.

Reply

164 Manish Chauhan December 24, 2010 at 8:09 pm

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

Reply

165 Dhawal Sharma December 25, 2010 at 12:38 pm

@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..

Reply

166 Manish Chauhan December 25, 2010 at 1:05 pm

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

Reply

167 Dhawal Sharma December 27, 2010 at 1:49 am

@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..

Reply

168 Manish Chauhan December 29, 2010 at 11:09 am

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

Reply

169 Sujit January 9, 2011 at 9:03 pm

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.?

Reply

170 Manish Chauhan January 9, 2011 at 9:10 pm

Sujit

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

Manish

Reply

171 Sujit January 9, 2011 at 9:25 pm

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

172 Pramod January 10, 2011 at 11:11 am

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.

Reply

173 Manish Chauhan January 10, 2011 at 12:10 pm

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

Reply

174 shashank kashettiwar December 24, 2010 at 5:31 pm

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

Reply

175 Manish Chauhan December 24, 2010 at 8:11 pm

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

Reply

176 Sachin March 30, 2011 at 1:28 pm

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

Reply

177 Dhawal Sharma April 5, 2011 at 6:29 pm

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

Reply

178 kasi August 24, 2011 at 6:23 pm

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?

Reply

179 Sam December 24, 2010 at 5:39 pm

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

Reply

180 Manish Chauhan December 24, 2010 at 8:14 pm

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

Reply

181 Amit December 24, 2010 at 5:57 pm

Thanks for informative article.

Reply

182 Manish Chauhan December 25, 2010 at 3:32 pm

Amit

thanks

Reply

183 Pankaj Parashar December 24, 2010 at 6:50 pm

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.

Reply

184 Manish Chauhan December 24, 2010 at 8:24 pm

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

Reply

185 pattu December 25, 2010 at 1:21 pm

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

Reply

186 Dhawal Sharma December 27, 2010 at 2:24 am

@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 :-)

Reply

187 Manish Chauhan December 29, 2010 at 11:15 am

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

Reply

188 pattu December 25, 2010 at 2:18 pm

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

Reply

189 Manish Chauhan December 25, 2010 at 3:01 pm

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

Manish

Reply

190 pattu December 25, 2010 at 6:39 pm

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 ;))

Reply

191 Arindam January 5, 2011 at 11:57 am

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

Reply

192 Dr Firoz December 25, 2010 at 2:26 pm

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

Reply

193 Manish Chauhan December 25, 2010 at 2:30 pm

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

Reply

194 Shilpi December 29, 2010 at 2:24 pm

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

Reply

195 Manish Chauhan December 29, 2010 at 2:54 pm

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

Reply

196 PolicyWala December 25, 2010 at 9:30 pm

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

Reply

197 Manish Chauhan December 25, 2010 at 9:38 pm

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

Reply

198 Jana December 26, 2010 at 12:26 pm

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

Reply

199 Manish Chauhan December 26, 2010 at 12:29 pm

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

Reply

200 Balaji December 26, 2010 at 5:10 pm

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

Reply

201 Manish Chauhan December 26, 2010 at 7:31 pm

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

Reply

202 shashank kashettiwar December 26, 2010 at 11:34 pm

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

Reply

203 Manish Chauhan December 29, 2010 at 11:17 am

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

Reply

204 James December 26, 2010 at 6:23 pm

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

Reply

205 Manish Chauhan December 26, 2010 at 7:23 pm

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

Reply

206 James December 26, 2010 at 8:10 pm

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.

Reply

207 Krish December 27, 2010 at 11:51 am

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.

Reply

208 Basavaraj December 27, 2010 at 8:35 pm

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???

Reply

209 Krish December 28, 2010 at 2:05 pm

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.

Reply

210 Basavaraj December 29, 2010 at 8:01 pm

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.

Reply

211 Manish Chauhan December 29, 2010 at 11:19 am

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

Reply

212 Dhawal Sharma December 27, 2010 at 2:09 am

@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

Reply

213 james December 27, 2010 at 2:22 pm

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?

Reply

214 Dhawal Sharma December 29, 2010 at 12:09 am

@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..

Reply

215 james December 29, 2010 at 11:15 am

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.

Reply

216 Manish Chauhan December 29, 2010 at 11:32 am

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

Manish

Reply

217 Dhawal Sharma December 29, 2010 at 10:59 pm

@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…

Reply

218 Manish Chauhan December 29, 2010 at 11:07 pm

Dhawal

Np , happens :)

Manish

Reply

219 Atul December 27, 2010 at 10:41 am

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

Reply

220 Manish Chauhan December 29, 2010 at 11:33 am

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

Reply

221 Shankar December 27, 2010 at 2:18 pm

Hi Manish,

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

Reply

222 Basavaraj December 27, 2010 at 8:40 pm

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.

Reply

223 Manish Chauhan December 29, 2010 at 11:35 am

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

Reply

224 Pradeep December 27, 2010 at 6:42 pm

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?

Reply

225 Manish Chauhan December 29, 2010 at 11:36 am

Pradeep

Yes ofcourse .

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

Manish

Reply

226 Pankaj Parashar December 29, 2010 at 9:42 pm

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….

Reply

227 Sagar December 27, 2010 at 7:14 pm

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

Reply

228 Basavaraj December 27, 2010 at 8:51 pm

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??

Reply

229 Manish Chauhan December 29, 2010 at 11:38 am

Basavaraj

Perfect :)

Manish

Reply

230 Amit Gulati December 27, 2010 at 7:59 pm

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

Reply

231 Manish Chauhan December 29, 2010 at 12:03 pm

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

Reply

232 Amit Gulati December 29, 2010 at 7:43 pm

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

Reply

233 Manish Chauhan December 29, 2010 at 9:29 pm

Nice ..

Reply

234 Amit Gulati December 29, 2010 at 9:15 pm

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

Reply

235 Manish Chauhan December 29, 2010 at 9:29 pm

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

Reply

236 Pankaj Parashar December 29, 2010 at 9:49 pm

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 …….

Reply

237 bharat shah January 3, 2011 at 4:05 pm

@amit
first take newpolicy then discontinue the existing!

Reply

238 Amit puri December 27, 2010 at 11:58 pm

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

Reply

239 Manish Chauhan December 29, 2010 at 12:04 pm

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

Reply

240 Pankaj Parashar December 29, 2010 at 9:54 pm

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

Reply

241 kumaran December 28, 2010 at 12:22 am

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.

Reply

242 Manish Chauhan December 29, 2010 at 12:06 pm

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

Reply

243 arjun December 29, 2010 at 4:12 pm

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.

Reply

244 Manish Chauhan December 29, 2010 at 9:37 pm

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

Reply

245 Pankaj Parashar December 29, 2010 at 10:00 pm

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

Reply

246 Sunil Date January 8, 2011 at 6:35 pm

@ 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)

Reply

247 Sunil Date January 8, 2011 at 6:35 pm

@ 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)

Reply

248 Arudra Kumar December 29, 2010 at 5:58 pm

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

Reply

249 Manish Chauhan December 29, 2010 at 9:33 pm

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

Reply

250 Pankaj Parashar December 29, 2010 at 10:05 pm

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…

Reply

251 Venu December 29, 2010 at 8:26 pm

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.

Reply

252 Manish Chauhan December 29, 2010 at 9:26 pm

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

Reply

253 Paresh December 30, 2010 at 3:44 pm

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.

Reply

254 Manish Chauhan December 30, 2010 at 10:13 pm

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

Reply

255 Paresh December 30, 2010 at 3:59 pm

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..

Reply

256 Prasad December 30, 2010 at 7:45 pm

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?

Reply

257 Manish Chauhan December 30, 2010 at 11:14 pm

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

Reply

258 Prasad December 31, 2010 at 7:01 am

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.

Reply

259 arjun December 30, 2010 at 11:11 pm

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.

Reply

260 Manish Chauhan December 30, 2010 at 11:16 pm

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

Reply

261 shilpa December 31, 2010 at 2:13 pm

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

Reply

262 Basavaraj December 31, 2010 at 8:42 pm

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?

Reply

263 Manish Chauhan January 1, 2011 at 2:18 am

Basavaraj

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

manish

Reply

264 Manish Chauhan January 1, 2011 at 2:17 am

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

Reply

265 Gunjan Gandhi December 31, 2010 at 4:29 pm

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.

Reply

266 Manish Chauhan January 1, 2011 at 2:20 am

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

Reply

267 Gunjan Gandhi January 1, 2011 at 2:13 pm

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.

Reply

268 Manish Chauhan January 1, 2011 at 11:37 pm

Gunjan

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

Manish

Reply

269 Gunjan Gandhi January 1, 2011 at 11:43 pm

Was it a compliment or pun intended…:-)

Reply

270 Manish Chauhan January 4, 2011 at 2:45 pm

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

Reply

271 sk9 January 1, 2011 at 8:11 am

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?

Reply

272 Manish Chauhan January 1, 2011 at 12:37 pm

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

Reply

273 Subin C B January 1, 2011 at 12:25 pm

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.

Reply

274 Manish Chauhan January 1, 2011 at 12:27 pm

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

Manish

Reply

275 Subin January 2, 2011 at 11:33 am

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

Reply

276 Manish Chauhan January 4, 2011 at 2:44 pm

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

Reply

277 Prasoon January 1, 2011 at 3:25 pm

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…

Reply

278 Manish Chauhan January 1, 2011 at 11:42 pm

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

Reply

279 Sunil Date January 8, 2011 at 6:25 pm

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.

Reply

280 Manish Chauhan January 12, 2011 at 8:13 pm

Sunil

Thanks for confirming this :)

Manish

Reply

281 webhaw January 1, 2011 at 5:04 pm

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

Reply

282 Manish Chauhan January 1, 2011 at 11:31 pm

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

Reply

283 Amit puri January 1, 2011 at 7:37 pm

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

Reply

284 Prasad January 1, 2011 at 11:08 pm

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.

Reply

285 Manish Chauhan January 1, 2011 at 11:44 pm

Amit

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

Manish

Reply

286 Ankur January 2, 2011 at 9:04 pm

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.

Reply

287 Ankur January 2, 2011 at 9:28 pm

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.

Reply

288 Sunil Date January 8, 2011 at 6:21 pm

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.

Reply

289 Jig January 4, 2011 at 12:24 am

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

Reply

290 Manish Chauhan January 4, 2011 at 11:29 am

Jig

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

Manish

Reply

291 pravin January 5, 2011 at 5:20 pm

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!

Reply

292 Manish Chauhan January 5, 2011 at 7:32 pm

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

Reply

293 Peenuts January 5, 2011 at 6:39 pm

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

Reply

294 Manish Chauhan January 6, 2011 at 5:55 pm

You can see just below the chart

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

manish

Reply

295 Jig January 5, 2011 at 8:01 pm

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

Reply

296 Dhawal Sharma January 6, 2011 at 11:59 am

@ 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 :-)

Reply

297 Jig January 6, 2011 at 9:51 pm

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

Reply

298 Sunil November 18, 2011 at 12:59 am

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.

Reply

299 Manish Chauhan November 18, 2011 at 10:35 am

Sunil

Why dont you go with Aviva or Kotak or metlife

Manish

Reply

300 sunil Date November 18, 2011 at 3:50 pm

@ 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”

Reply

301 Sunil November 18, 2011 at 4:12 pm

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.

Reply

302 sunil Date November 19, 2011 at 2:33 pm

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.

Reply

303 Sunil November 22, 2011 at 6:55 pm

thanks :)

Reply

304 Dr Firoz January 7, 2011 at 4:20 pm

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?

Reply

305 Manish Chauhan January 7, 2011 at 5:10 pm

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

Reply

306 Sohil January 8, 2011 at 12:14 am

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?

Reply

307 Manish Chauhan January 12, 2011 at 8:20 pm

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

Reply

308 Anuj January 9, 2011 at 8:49 pm

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

Reply

309 Manish Chauhan January 9, 2011 at 9:12 pm

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

Reply

310 Gaurav January 10, 2011 at 4:18 pm

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.

Reply

311 Manish Chauhan January 10, 2011 at 6:14 pm

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

Reply

312 Gaurav January 10, 2011 at 7:31 pm

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?

Reply

313 Manish Chauhan January 10, 2011 at 11:53 pm

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

Reply

314 Abhijit January 10, 2011 at 10:06 pm

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?

Reply

315 Manish Chauhan January 10, 2011 at 11:45 pm

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

Reply

316 Dhawal Sharma January 11, 2011 at 10:24 am

@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..

Reply

317 kumar January 11, 2011 at 11:09 am

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.

Reply

318 Sunil Date January 11, 2011 at 1:53 pm

@ 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.

Reply

319 Sampath January 11, 2011 at 3:47 pm

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

Reply

320 Manish Chauhan January 11, 2011 at 4:47 pm

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

Reply

321 Balaji January 11, 2011 at 3:47 pm

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

Reply

322 Manish Chauhan January 12, 2011 at 5:25 pm

Balaji

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

Manish

Reply

323 bharat shah January 11, 2011 at 3:50 pm

@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.

Reply

324 Abhijit January 11, 2011 at 6:10 pm

@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.

Reply

325 Sunil Date January 12, 2011 at 4:49 pm

@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.

Reply

326 Sunil Date January 12, 2011 at 4:51 pm

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

Reply

327 bharat shah January 12, 2011 at 6:18 pm

@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.

Reply

328 Balaji January 11, 2011 at 3:53 pm

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

Reply

329 Manish Chauhan January 11, 2011 at 4:49 pm

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

Reply

330 Amit January 11, 2011 at 6:51 pm

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.

Reply

331 Manish Chauhan January 12, 2011 at 7:13 pm

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

Reply

332 Raghu N January 12, 2011 at 1:04 am

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

Reply

333 Manish Chauhan January 12, 2011 at 1:08 am

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

Reply

334 bharat shah January 12, 2011 at 10:17 pm

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.

Reply

335 sunil gavaskar January 13, 2011 at 3:37 pm

@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

Reply

336 Gurmeet January 13, 2011 at 4:28 pm

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

Reply

337 Manish Chauhan January 13, 2011 at 4:45 pm

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

Reply

338 dr kishan March 9, 2011 at 12:04 am

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

Reply

339 Manish Chauhan March 10, 2011 at 11:22 pm

Dr Kishan

Ahh thanks , I made that mistake it seems :)

Manish

Reply

340 bharat shah January 13, 2011 at 4:29 pm

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.

Reply

341 Manish Chauhan January 13, 2011 at 4:46 pm

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

Reply

342 bharat shah February 12, 2011 at 1:17 pm

@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.

Reply

343 Rohit January 13, 2011 at 4:51 pm

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

Reply

344 Manish Chauhan January 13, 2011 at 6:50 pm

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

Reply

345 Vinu January 15, 2011 at 7:19 am

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”?

Reply

346 Manish Chauhan January 15, 2011 at 9:49 pm

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

Reply

347 Tarun January 15, 2011 at 10:13 pm

@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.

Reply

348 Tarun January 15, 2011 at 10:24 pm

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.

Reply

349 Tarun January 15, 2011 at 2:07 pm

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!!

Reply

350 Manish Chauhan January 15, 2011 at 8:54 pm

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

Reply

351 Tarun January 17, 2011 at 7:11 pm

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

Reply

352 Manish Chauhan January 17, 2011 at 9:41 pm

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

Manish

Reply

353 Sudha January 17, 2011 at 2:21 pm

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.

Reply

354 Manish Chauhan January 17, 2011 at 2:26 pm

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

Reply

355 Sudha January 17, 2011 at 7:48 pm

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.

Reply

356 Manish Chauhan January 17, 2011 at 9:37 pm

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

Reply

357 Sudha January 18, 2011 at 8:26 pm

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

Reply

358 Manish Chauhan January 20, 2011 at 6:38 pm

Sudha

Thanks ..

Reply

359 Raj January 17, 2011 at 5:21 pm

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.

Reply

360 pprajru January 18, 2011 at 9:30 am

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

Reply

361 Dhawal Sharma January 18, 2011 at 8:58 pm

@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..

Reply

362 Manish Chauhan January 20, 2011 at 6:36 pm

Raj

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

Manish

Reply

363 Ajay January 19, 2011 at 11:16 am

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)?

Reply

364 Manish Chauhan January 19, 2011 at 12:52 pm

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

Reply

365 pattu January 19, 2011 at 2:06 pm

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!

Reply

366 Manish Chauhan January 20, 2011 at 6:05 pm

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

Reply

367 Basavaraj January 19, 2011 at 8:57 pm

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.

Reply

368 Madhukara January 19, 2011 at 5:35 pm

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.

Reply

369 Manish Chauhan January 19, 2011 at 6:27 pm

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

Reply

370 Pradeep January 19, 2011 at 5:39 pm

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

Reply

371 Manish Chauhan January 19, 2011 at 6:28 pm

Pradeep

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

Manish

Reply

372 ShanmugaNandan January 19, 2011 at 8:52 pm

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.

Reply

373 Manish Chauhan January 19, 2011 at 11:35 pm

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

Reply

374 Jayesh November 29, 2011 at 2:28 pm

Manish, in such a case is the company obliged to share the medical reports since you are bearing the cost.

Reply

375 Manish Chauhan November 29, 2011 at 2:39 pm

Jayesh

Yes ,they should. a lot of them share when you ask for it

Manish

Reply

376 Amit January 21, 2011 at 3:42 pm

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.

Reply

377 Manish Chauhan January 21, 2011 at 3:54 pm

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

Reply

378 Amit January 21, 2011 at 4:10 pm

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

Reply

379 Vats January 21, 2011 at 6:43 pm

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.

Reply

380 Manish Chauhan January 21, 2011 at 6:48 pm

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

Reply

381 Tarun January 21, 2011 at 7:25 pm

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 :)

Reply

382 Manish Chauhan January 21, 2011 at 9:14 pm

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

Reply

383 ashish January 23, 2011 at 2:09 pm

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.

Reply

384 Manish Chauhan January 23, 2011 at 2:50 pm

Ashish

I dont know any one like that personally :)

Manish

Reply

385 Arun Kumar Sharma January 25, 2011 at 12:34 pm

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

Reply

386 Manish Chauhan January 25, 2011 at 12:44 pm

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

Reply

387 Arun Kumar Sharma January 29, 2011 at 5:19 pm

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.

Reply

388 Manish Chauhan January 29, 2011 at 5:23 pm

Arun

Thanks Arun:)

Manish

Reply

389 nairobi January 27, 2011 at 6:45 pm

Thanks! very useful information!

Reply

390 Sachin January 29, 2011 at 6:01 pm

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?

Reply

391 Manish Chauhan February 2, 2011 at 12:47 am

Sachin

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

Manish

Reply

392 Sunil January 30, 2011 at 12:27 pm

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…

Reply

393 Manish Chauhan February 1, 2011 at 11:10 pm

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/

Reply

394 Sunil January 30, 2011 at 12:48 pm

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…

Reply

395 sunil gavaskar January 30, 2011 at 8:54 pm

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 )

Reply

396 vijay r d January 31, 2011 at 12:50 pm

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

Reply

397 Manish Chauhan January 31, 2011 at 12:55 pm

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

Reply

398 nilesh January 31, 2011 at 6:44 pm

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.

Reply

399 Manish Chauhan February 1, 2011 at 9:54 am

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

Reply

400 Dhawal Sharma February 1, 2011 at 10:24 am

@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…

Reply

401 Girish February 2, 2011 at 9:42 pm

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

Reply

402 Manish Chauhan February 2, 2011 at 10:33 pm

I have replied you already about this on facebook :)

Manish

Reply

403 Hema February 3, 2011 at 4:25 pm

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

Reply

404 Manish Chauhan February 4, 2011 at 1:11 am

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

Reply

405 dhawal sharma February 10, 2011 at 7:05 pm

@Manish – Very interesting…Please check this out…

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

Reply

406 Manish Chauhan February 10, 2011 at 7:22 pm

Dhawal

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

Reply

407 chandranshu pandey February 11, 2011 at 4:49 pm

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

Reply

408 Manish Chauhan February 12, 2011 at 10:32 am

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

Reply

409 bharat shah February 12, 2011 at 1:31 pm

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.

Reply

410 Prasad February 15, 2011 at 7:32 am

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.

Reply

411 Tarun February 15, 2011 at 11:35 am

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 ??

Reply

412 Manish Chauhan February 15, 2011 at 4:16 pm

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

Reply

413 Prasoon February 15, 2011 at 4:40 pm

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?

Reply

414 Manish Chauhan February 15, 2011 at 4:56 pm

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

Reply

415 Prasoon February 15, 2011 at 5:12 pm

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?

Reply

416 Manish Chauhan February 15, 2011 at 5:17 pm

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

Reply

417 Dhawal Sharma February 15, 2011 at 8:25 pm

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..

Reply

418 Manish Chauhan February 15, 2011 at 9:22 pm

Dhawal

Thanks for the reply :)

Manish

Reply

419 james February 15, 2011 at 10:36 pm

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.

Reply

420 Prasoon February 16, 2011 at 11:59 am

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!

Reply

421 Tarun February 19, 2011 at 5:17 pm

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.

Reply

422 Manish Chauhan February 15, 2011 at 4:13 pm

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

Reply

423 Tandon Ji February 16, 2011 at 6:35 pm

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

Reply

424 Manish Chauhan February 19, 2011 at 3:47 pm

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

Reply

425 Anand February 17, 2011 at 6:28 pm

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)

Reply

426 Manish Chauhan February 17, 2011 at 6:30 pm

Anand

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

Manish

Reply

427 rajiv saxena February 20, 2011 at 5:11 pm

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

Reply

428 Manish Chauhan February 21, 2011 at 8:04 am
429 Sampath February 21, 2011 at 9:32 am

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..

Reply

430 Subhashis Das February 21, 2011 at 5:34 pm

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.

Reply

431 Manish Chauhan February 21, 2011 at 5:38 pm

Subhashis

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

manish

Reply

432 Ankur February 21, 2011 at 7:57 pm

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!

Reply

433 Manish Chauhan February 21, 2011 at 10:43 pm

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

Reply

434 VJ February 21, 2011 at 10:40 pm

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.

Reply

435 Manish Chauhan February 22, 2011 at 9:22 am

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

Reply

436 VJ February 22, 2011 at 11:37 pm

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

Reply

437 Manish Chauhan February 23, 2011 at 10:19 am

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

Reply

438 ShanmugaNandan February 22, 2011 at 9:01 am

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….

Reply

439 Manish Chauhan February 22, 2011 at 9:34 am

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

Reply

440 ShanmugaNandan March 2, 2011 at 9:07 am

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?

Reply

441 Sunil Date March 2, 2011 at 7:43 pm

@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.

Reply

442 Manish Chauhan March 2, 2011 at 10:48 pm

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

Reply

443 Dev February 22, 2011 at 11:25 pm

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 !!

Reply

444 Manish Chauhan February 23, 2011 at 10:16 am

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

Reply

445 Hema February 23, 2011 at 1:40 pm

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

Reply

446 Manish Chauhan February 23, 2011 at 2:11 pm

Hema

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

Manish

Reply

447 vijay February 25, 2011 at 9:26 pm

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?

Reply

448 Manish Chauhan February 25, 2011 at 10:08 pm

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

Reply

449 Sunil Date February 28, 2011 at 7:18 pm

@ 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.

Reply

450 vijay February 28, 2011 at 9:15 pm

Thanks Sunil for the reply

Reply

451 vijay February 28, 2011 at 9:13 pm

Thanks Manish for the quick reply

Reply

452 harsh yadav February 26, 2011 at 9:53 am

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 ??

Reply

453 Manish Chauhan February 26, 2011 at 12:26 pm

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

Reply

454 Sahil Bhatia (v-2sahb) February 27, 2011 at 5:50 am

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)

Reply

455 Amit Kumar Saini February 27, 2011 at 7:13 pm

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

Reply

456 Prasad March 1, 2011 at 6:10 pm

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

Reply

457 Guru March 1, 2011 at 10:41 pm

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

Reply

458 vinod pal March 3, 2011 at 11:51 pm

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

Reply

459 Manish Chauhan March 4, 2011 at 1:07 am

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

Reply

460 vinod kumar March 11, 2011 at 8:23 pm

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.

Reply

461 Manish Chauhan March 11, 2011 at 9:07 pm

Vinod

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

Manish

Reply

462 RAJIV SAXENA March 5, 2011 at 9:58 am

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?

Reply

463 Manish Chauhan March 5, 2011 at 12:08 pm

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

Reply

464 Rahul March 8, 2011 at 11:57 am

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

Reply

465 Manish Chauhan March 8, 2011 at 1:49 pm

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

Reply

466 Krishanu De March 10, 2011 at 12:19 pm

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.

Reply

467 Manish Chauhan March 10, 2011 at 12:25 pm

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

Reply

468 Mani March 10, 2011 at 2:47 pm

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

Reply

469 Manish Chauhan March 10, 2011 at 5:10 pm

Mani

No , it will not make any difference

manish

Reply

470 dr kishan March 11, 2011 at 2:00 am

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

Reply

471 Manish Chauhan March 31, 2011 at 10:23 am

Kishan

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

Manish

Reply

472 Ilesh March 12, 2011 at 1:18 pm

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

Reply

473 Manish Chauhan March 12, 2011 at 1:40 pm

Ilesh

This one is answered in the previous article .

Reply

474 Rahul March 12, 2011 at 1:30 pm

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

Reply

475 Manish Chauhan March 12, 2011 at 1:42 pm

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

Reply

476 raju March 14, 2011 at 12:21 pm

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

Reply

477 Manish Chauhan March 31, 2011 at 10:20 am

I Would suggest Kotak

Reply

478 sravi March 16, 2011 at 2:52 pm

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

Reply

479 Dhawal Sharma March 17, 2011 at 11:32 pm

@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

Reply

480 sravi March 18, 2011 at 4:34 pm

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

Reply

481 Dhawal Sharma March 19, 2011 at 4:04 pm

@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

Reply

482 Rahul March 16, 2011 at 7:37 pm

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

Reply

483 Manish Chauhan March 26, 2011 at 11:35 am

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

Reply

484 Guru March 16, 2011 at 10:56 pm

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

Reply

485 Dhawal Sharma March 17, 2011 at 11:21 pm

@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

Reply

486 Vivek March 18, 2011 at 2:04 pm

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

Reply

487 Manish Chauhan March 18, 2011 at 2:13 pm

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

Reply

488 Dhawal Sharma March 19, 2011 at 4:07 pm
489 Subhashish Das March 19, 2011 at 4:40 pm

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

Reply

490 Manish Chauhan March 19, 2011 at 5:39 pm

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

Reply

491 ABHIJEET March 22, 2011 at 12:12 pm

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

Reply

492 kavita k March 22, 2011 at 12:15 pm

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.

Reply

493 Manish Chauhan March 22, 2011 at 12:39 pm

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

Reply

494 kavita k March 22, 2011 at 12:20 pm

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

Reply

495 ABHIJEET March 22, 2011 at 1:51 pm

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.)

Reply

496 Manish Chauhan March 22, 2011 at 3:40 pm

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

Reply

497 Abhijeet March 23, 2011 at 9:24 am

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

Reply

498 Manish Chauhan March 23, 2011 at 9:36 am

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

Reply

499 ravi March 23, 2011 at 2:11 pm

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.

Reply

500 Ravikrishna March 25, 2011 at 10:53 am

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.

Reply

501 Manish Chauhan March 25, 2011 at 4:52 pm

Ravi

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

Reply

502 Deepak March 27, 2011 at 8:34 am

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

Reply

503 Manish Chauhan March 27, 2011 at 11:04 am

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 .

Reply

504 Sandeep March 27, 2011 at 5:05 pm

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

Reply

505 Manish Chauhan March 28, 2011 at 9:21 am

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

Reply

506 Sandeep Kumar March 28, 2011 at 2:31 pm

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)!!

Reply

507 Manish Chauhan March 28, 2011 at 2:58 pm

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

Reply

508 Sandeep Kumar April 5, 2011 at 4:41 pm

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?

Reply

509 Manish Chauhan April 5, 2011 at 5:26 pm

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.

Reply

510 Sandeep May 1, 2011 at 8:03 pm

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?

Reply

511 Manish Chauhan May 2, 2011 at 8:18 am

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

Reply

512 Vijayakumar March 29, 2011 at 3:23 pm

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

Reply

513 Manish Chauhan March 29, 2011 at 3:31 pm

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

Reply

514 Deepak March 30, 2011 at 8:29 am

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

Reply

515 Manish Chauhan March 30, 2011 at 9:01 am

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

Reply

516 Deepak March 30, 2011 at 10:10 am

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

Reply

517 Manish Chauhan March 30, 2011 at 10:36 am

Deepak

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

Manish

Reply

518 Deepak March 30, 2011 at 11:06 am

Is it applicable for Health Insurance Policy as well?

Reply

519 Manish Chauhan March 30, 2011 at 11:34 am

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

Reply

520 Deepak K Nayak March 31, 2011 at 7:53 pm

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

Reply

521 Manish Chauhan April 1, 2011 at 1:05 pm

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

Reply

522 Deepak K Nayak April 1, 2011 at 6:10 pm

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

Thanks
Deepak K Nayak

Reply

523 Vijay April 1, 2011 at 4:10 pm

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.

Reply

524 Manish Chauhan April 1, 2011 at 6:34 pm

Vijay

can you give me the links

Reply

525 Vijay April 1, 2011 at 6:52 pm

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

Reply

526 Manish Chauhan April 4, 2011 at 10:50 am

Vijay

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

Manish

Reply

527 Vijay April 1, 2011 at 6:54 pm
528 Sandeep Kumar April 6, 2011 at 5:55 pm

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

Reply

529 Deepak April 1, 2011 at 10:44 pm

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

Reply

530 Manish Chauhan April 4, 2011 at 10:28 am

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

Reply

531 Zubair April 7, 2011 at 3:19 pm

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

Reply

532 Manish Chauhan April 7, 2011 at 4:20 pm

Zubair

No you dont have to update the company about it .

Manish

Reply

533 Raj April 9, 2011 at 1:39 am

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?

Reply

534 Manish Chauhan April 9, 2011 at 11:22 am

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

Reply

535 Sunil Date April 9, 2011 at 5:18 pm

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.

Reply

536 Manish Chauhan April 9, 2011 at 7:17 pm

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

Reply

537 Amol Deshmukh April 13, 2011 at 10:17 am

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

Reply

538 Manish Chauhan April 13, 2011 at 10:56 am

Amol

The data used in this article comes from those annual reports only :)

Reply

539 Amol Deshmukh April 13, 2011 at 11:43 am

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

Reply

540 Manish Chauhan April 13, 2011 at 12:32 pm

Amol

You are correct, Dhawal was wrong and he accepted that he was wrong in the comment section

Reply

541 J S Dutta April 23, 2011 at 9:09 am

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.

Reply

542 Manish Chauhan April 23, 2011 at 12:33 pm

JS Dutta

There is nothing manadatory to take the riders , it depends on your personal preference if you want those riders or not .

Reply

543 narendra April 23, 2011 at 1:40 pm

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.

Reply

544 Manish Chauhan April 23, 2011 at 2:34 pm

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

Reply

545 Thinking May 2, 2011 at 3:55 pm

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.

Reply

546 Manish Chauhan May 2, 2011 at 4:21 pm

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

Reply

547 Ritesh May 6, 2011 at 1:12 pm

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.

Reply

548 Vidyadhar May 23, 2011 at 12:35 pm

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!

Reply

549 Vidyadhar May 23, 2011 at 12:40 pm

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!

Reply

550 Vidyadhar May 23, 2011 at 1:04 pm

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!

Reply

551 Vid May 23, 2011 at 1:07 pm

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!

Reply

552 Rishi May 24, 2011 at 2:43 pm

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?

Reply

553 Ravi May 25, 2011 at 3:35 pm

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.

Reply

554 zubair May 30, 2011 at 2:33 pm

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

Reply

555 vishal June 13, 2011 at 12:27 am

Hi Zubair,
Did you buy Aviva iLife term plan, can you share your experience?

Reply

556 zubair June 13, 2011 at 10:18 am

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

Reply

557 vishal August 16, 2011 at 1:55 pm

Hi Zubair,
Did you buy Aviva i-life? Am planning to go for it in about a week, how was the experience?

Reply

558 vishal August 22, 2011 at 1:03 pm

Zubair, can you give me your contact number please, need some info about Aviva from you.

Vishal.

Reply

559 zubair August 22, 2011 at 4:42 pm

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

Reply

560 Chirag October 3, 2011 at 10:25 am

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).

Reply

561 Kapil October 3, 2011 at 3:14 pm

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

Reply

562 DMan May 31, 2011 at 1:13 am

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.

Reply

563 deepak May 31, 2011 at 5:00 pm

whats ur opinion on 35 yr period aviva term plan supposed to be the cheapest?

Reply

564 Manish Chauhan June 6, 2011 at 1:09 pm

Deepak

Yea , it seems to be one of the cheapest one , try it out from internet explorer

Manish

Reply

565 Asthi June 4, 2011 at 10:48 am

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.

Reply

566 Manish Chauhan June 6, 2011 at 1:11 pm

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

Reply

567 Dhawal Sharma June 12, 2011 at 12:24 am

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

Reply

568 Manish Chauhan June 12, 2011 at 8:25 pm

Dhawal

Thats a nice update :) , I will surely do a post on this .

Manish

Reply

569 shashank kashettiwar June 13, 2011 at 11:20 am

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

Reply

570 Manish Chauhan June 13, 2011 at 11:23 am

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

Reply

571 Dhawal Sharma June 13, 2011 at 11:26 am

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..

Reply

572 vishal June 12, 2011 at 3:13 pm

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?

Reply

573 Manish Chauhan June 12, 2011 at 8:04 pm

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

Reply

574 Chirag October 3, 2011 at 10:32 am

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!

Reply

575 Rahul p June 19, 2011 at 3:10 pm

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.

Reply

576 Manish Chauhan June 21, 2011 at 9:00 am

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

Reply

577 Rahul P June 22, 2011 at 10:53 pm

@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.

Reply

578 Manish Chauhan June 23, 2011 at 7:21 pm

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

Reply

579 Rocky June 21, 2011 at 11:13 pm

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

Reply

580 Manish Chauhan June 22, 2011 at 10:22 am

Rocky

Yes , Aviva is good option , also consider Kotak , ICICI

Manish

Reply

581 Rocky June 23, 2011 at 1:17 pm

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

Reply

582 Manish Chauhan June 23, 2011 at 7:18 pm

Rocky ..

No thats not true . You can claim from other companies also .

Manish

Reply

583 Ashok July 4, 2011 at 3:14 pm

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

Reply

584 Manish Chauhan July 4, 2011 at 4:31 pm

Ashok

Yes, if you dont disclose the facts completely , then its right that they dont honour your claim

Manish

Reply

585 Jawaid June 29, 2011 at 10:30 pm

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)

Reply

586 Sumeet K June 30, 2011 at 1:54 pm

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

Reply

587 Manish Chauhan June 30, 2011 at 3:58 pm

Sumeet

I think the birth dates on official documents will be take as the source of proof

Manish

Reply

588 vishal July 1, 2011 at 1:47 pm

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

Reply

589 Manish Chauhan July 1, 2011 at 8:54 pm

Vishal

Go to archives section : http://www.jagoinvestor.com/archives , it has all the articles till date , read from bottom to up

Manish

Reply

590 mukesh July 3, 2011 at 11:19 am
591 Ashok July 4, 2011 at 3:09 pm

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

Reply

592 Manish Chauhan July 4, 2011 at 4:36 pm

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

Reply

593 MPG NAMBIAR July 8, 2011 at 8:56 am

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

Reply

594 Bhavesh July 8, 2011 at 5:58 pm

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.

Reply

595 Manish Chauhan July 9, 2011 at 5:59 pm

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

Reply

596 Dan July 11, 2011 at 3:15 pm

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

Reply

597 Manish Chauhan July 11, 2011 at 7:50 pm

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

Reply

598 Dan July 11, 2011 at 4:08 pm

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

Reply

599 Manish Chauhan July 11, 2011 at 7:47 pm

Dan

Why do you think it does not look at health ?

Manish

Reply

600 Dan July 14, 2011 at 9:15 am

@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..!

Reply

601 Manish Chauhan July 14, 2011 at 1:45 pm

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

Reply

602 Dan July 17, 2011 at 9:58 am

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?

Reply

603 Manish Chauhan July 18, 2011 at 3:40 pm

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

Reply

604 Dan September 4, 2011 at 12:47 pm

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

Reply

605 Manish Chauhan September 4, 2011 at 8:10 pm

Dan

I am not very sure on this .. but let me get dhawal to answer that .. wait for 1-2 days !

manish

Reply

606 Dhawal Sharma September 4, 2011 at 11:33 pm

@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..

Reply

607 Manish Chauhan September 5, 2011 at 11:54 am

Dhawal

Thanks for the answers .. good learning ..

manish

608 Vijay July 13, 2011 at 10:24 pm

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..

Reply

609 Manish Chauhan July 14, 2011 at 1:48 pm

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

Reply

610 Ganesh July 15, 2011 at 10:07 am

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

Reply

611 Manish Chauhan July 18, 2011 at 4:43 pm

Ganesh

You can look at this article for rider information : http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

Manish

Reply

612 Asthi July 15, 2011 at 3:41 pm

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.

Reply

613 Manish Chauhan July 18, 2011 at 4:51 pm

Asthi

Yes .. thats true ..

Manish

Reply

614 Shatru September 3, 2011 at 10:00 pm

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

Reply

615 Manish Chauhan September 5, 2011 at 12:20 pm

Shatru

Thats true .. Kotak Term plan has that rule .. look at their document

Manish

Reply

616 Swapnil July 15, 2011 at 5:13 pm

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.

Reply

617 Manish Chauhan July 18, 2011 at 5:05 pm

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

Reply

618 Swapnil July 18, 2011 at 5:35 pm

Hi Manish,
Thanks for the reply. Can you please tell me which is the best online term plan currently and having good feedback.

Reply

619 Manish Chauhan July 18, 2011 at 5:38 pm

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

Reply

620 Raju July 18, 2011 at 7:25 pm

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

Reply

621 Manish Chauhan July 18, 2011 at 8:52 pm

Raju

For now you will have to use the same table . I will update it soon as I get time .

Manish

Reply

622 Karthikraja July 25, 2011 at 10:09 pm

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.

Reply

623 Manish Chauhan July 26, 2011 at 10:56 am

Karthik

Good ot hear that . Keep it up

Manish

Reply

624 Rosh July 26, 2011 at 2:47 pm

Manish
What is your thought about aviva life shield Advantage ?
Please comment.

Reply

625 Manish Chauhan July 26, 2011 at 4:15 pm
626 Rosh August 16, 2011 at 2:59 pm

thans manishh . It was informative

Reply

627 Ajit July 26, 2011 at 5:03 pm

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?

Reply

628 Manish Chauhan July 26, 2011 at 8:38 pm

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

Reply

629 Nikhil July 27, 2011 at 4:16 pm

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

Reply

630 Manish Chauhan July 29, 2011 at 11:52 am

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

Reply

631 sakshi juneja July 30, 2011 at 1:21 pm

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?

Reply

632 Manish Chauhan August 4, 2011 at 7:09 pm

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

Reply

633 sakshi juneja July 30, 2011 at 1:21 pm

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?

Reply

634 sudhanshu badola July 31, 2011 at 11:00 am

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

Reply

635 Manish Chauhan August 1, 2011 at 8:25 pm

Sudhanshu

Take any from Kotak , aviva or metlife .. if you want highest claim ratio , then go for LIC

Manish

Reply

636 Suresh August 2, 2011 at 11:44 am

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 ?

Reply

637 Manish Chauhan August 4, 2011 at 7:10 pm

Suresh

You can look at Kotak and Aviva

Reply

638 Mukesh August 2, 2011 at 5:41 pm

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

Reply

639 Manish Chauhan August 4, 2011 at 2:10 pm

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

Reply

640 Mahesh August 2, 2011 at 6:56 pm

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

Reply

641 Dhawal Sharma August 3, 2011 at 11:48 am

@ 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

Reply

642 Nagaraju August 2, 2011 at 11:56 pm

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

Reply

643 brijendra singh August 4, 2011 at 9:36 pm

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.

Reply

644 Manish Chauhan August 9, 2011 at 8:23 pm

Brijendra

The premiums are fixed and do not increase each year. You can explore ICICI , Kotak or AVIVA

Manish

Reply

645 Subir August 5, 2011 at 9:21 pm

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?

Reply

646 Manish Chauhan August 5, 2011 at 9:32 pm

Subir

NO you dont need to inform old companies

Reply

647 Subir August 6, 2011 at 1:39 pm

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?

Reply

648 Manish Chauhan August 6, 2011 at 10:22 pm

Subir

No you dont need to mention anything about withdrawing for a new policy . ICICI Pru is good , you can go for it

Manish

Reply

649 Subir August 5, 2011 at 10:07 pm

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?

Reply

650 Bhaskar August 6, 2011 at 3:08 pm

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

Reply

651 Manish Chauhan August 6, 2011 at 10:21 pm

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

Reply

652 brijendra singh August 9, 2011 at 4:06 pm

hi manish can u plz give me some insight on my querry at number 588

Reply

653 NAVEEN LAMBA August 9, 2011 at 10:38 pm

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

Reply

654 NAVEEN LAMBA August 9, 2011 at 10:41 pm

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

Reply

655 Balakrishnan August 12, 2011 at 4:34 pm

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.

Reply

656 Balakrishnan August 13, 2011 at 2:02 pm

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.

Reply

657 Manish Chauhan August 15, 2011 at 9:39 am

Balakrishnan

You can ask for suggestions here : http://www.jagoinvestor.com/forum/

Manish

Reply

658 vishal August 16, 2011 at 1:52 pm

Hi All,
I am planning to go for Aviva i-life plan for 50 lakhs, can anyone share their experiance please?

Reply

659 Mayur August 17, 2011 at 4:04 pm

Hi Vishal,
I am also planning to take i-life for 50 lakhs. It seems the best and cheapest as of now.

Reply

660 vishal August 16, 2011 at 1:52 pm

Hi All,
I am planning to go for Aviva i-life plan for 50 lakhs, can anyone share their experience please?

Reply

661 shivaraj August 17, 2011 at 6:45 pm

i want to take a term plan of 50lacs-1crore,can plaese suggest me wheather i choose online policy or normall.

Reply

662 Gurmeet Singh August 25, 2011 at 3:06 pm

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

Reply

663 Manish Chauhan August 25, 2011 at 5:51 pm

Gurmeet

The only difference is premiums

Manish

Reply

664 Gurmeet Singh August 27, 2011 at 11:32 am

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

Reply

665 Mayur August 27, 2011 at 11:37 am

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.

Reply

666 Dhawal Sharma August 27, 2011 at 11:56 am

@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

Reply

667 Manish Chauhan August 27, 2011 at 5:02 pm

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

Reply

668 VIGNESH August 28, 2011 at 5:23 pm

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…

Reply

669 Manish Chauhan August 28, 2011 at 6:50 pm

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

Reply

670 VIGNESH August 28, 2011 at 9:53 pm

may i know why are u telling like that??

Reply

671 Manish Chauhan September 2, 2011 at 9:05 am

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

Reply

672 VIGNESH September 15, 2011 at 8:43 pm

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….

Reply

673 Suryaneel August 29, 2011 at 12:15 pm

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

Reply

674 Manish Chauhan September 2, 2011 at 9:00 am

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

Reply

675 Charles August 30, 2011 at 12:23 pm

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.

Reply

676 Gurmeet Singh August 30, 2011 at 3:34 pm

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

Reply

677 Manish Chauhan September 1, 2011 at 10:18 pm

Gurmeet

You need to declare all the policies which has Insurace element , so declare endowment and ULIP’s , but not health plans

Manish

Reply

678 Manish Chauhan September 2, 2011 at 8:51 am

Charles

Thanks for sharing your Experience with ICICI . I agree that it depends from case to case on how their experience will be

Manish

Reply

679 Biju September 2, 2011 at 5:13 pm

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 :)?

Reply

680 Manish Chauhan September 3, 2011 at 10:41 am

Biju

Congrats on taking the term plan . Dont worry , the premiums are constant , all the future things are already discounted in the premium

Manish

Reply

681 Biju April 26, 2012 at 6:18 pm

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 ?

Reply

682 Manish Chauhan April 28, 2012 at 12:30 pm

I dont think there is a clause like this from IRDA, but companies have their own clauses

Reply

683 Shatru September 4, 2011 at 11:20 am

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?

Reply

684 Manish Chauhan September 4, 2011 at 8:12 pm

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

Reply

685 Shatru September 5, 2011 at 9:34 am

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.

Reply

686 Manish Chauhan September 5, 2011 at 11:52 am

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

Reply

687 Gurmeet Singh September 6, 2011 at 11:20 am

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?

Reply

688 Sunil Date September 7, 2011 at 5:52 pm

@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.

Reply

689 Manish Chauhan September 8, 2011 at 9:33 am

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

Reply

690 sanjay September 12, 2011 at 12:22 pm

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

Reply

691 Shatru September 12, 2011 at 2:19 pm

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

Reply

692 Dhawal Sharma September 4, 2011 at 11:35 pm
693 sanjay September 12, 2011 at 12:23 pm

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

Reply

694 Manish Chauhan September 12, 2011 at 9:39 pm

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

Reply

695 moonlightdriver September 24, 2011 at 4:14 pm

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

Reply

696 Manish Chauhan September 24, 2011 at 8:49 pm

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

Reply

697 vishal September 12, 2011 at 2:12 pm

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.

Reply

698 Manish Chauhan September 12, 2011 at 9:35 pm

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

Reply

699 Gaurav September 14, 2011 at 6:19 pm

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

Reply

700 Manish Chauhan September 14, 2011 at 6:53 pm

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

Reply

701 sunil Date September 15, 2011 at 3:48 pm

@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.

Reply

702 moonlightdriver September 16, 2011 at 10:35 pm

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.

Reply

703 Harsh September 18, 2011 at 11:38 am

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……

Reply

704 Manish Chauhan September 19, 2011 at 1:20 pm

Harsh

they r still valid …

Reply

705 superlott September 22, 2011 at 2:38 am

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.

Reply

706 Manish Chauhan September 22, 2011 at 6:54 pm

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

Reply

707 Taurus September 23, 2011 at 11:40 am

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.

Reply

708 Manish Chauhan September 24, 2011 at 9:29 pm

Tauras

Kotak and Aviva are liked a lot by readers these days

Manish

Reply

709 Santosh Kumar September 23, 2011 at 8:05 pm

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.

Reply

710 Manish Chauhan September 24, 2011 at 9:04 pm

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

Reply

711 Kapil September 23, 2011 at 11:04 pm

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

Reply

712 Manish Chauhan September 24, 2011 at 9:02 pm

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

Reply

713 Kapil September 27, 2011 at 10:49 pm

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.

Reply

714 Manish Chauhan September 29, 2011 at 9:10 am

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

Reply

715 Kapil October 1, 2011 at 6:26 pm

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

Reply

716 Manish Chauhan October 4, 2011 at 9:02 pm
717 moonlightdriver September 24, 2011 at 5:04 pm

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

Reply

718 Manish Chauhan September 24, 2011 at 8:47 pm

Moonlightdriver

Yea i have seen this article , it really brings up some important and not so talked about matters .

Manish

Reply

719 Abhishek September 26, 2011 at 2:10 pm

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.

Reply

720 Manish Chauhan September 29, 2011 at 9:45 am

Abhishek

Those kind of articles are already written , find it from archive section : http://www.jagoinvestor.com/archives

Reply

721 Abhishek September 26, 2011 at 2:12 pm

I would like to get comparisions of health and non life insurance co as well to complete the spectrum of insurance needs of person.

Reply

722 Manish Chauhan September 29, 2011 at 9:41 am

Abhishek

Yes , we will do that soon

Manish

Reply

723 Abhishek September 26, 2011 at 2:18 pm

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.

Reply

724 Manish Chauhan September 29, 2011 at 9:40 am

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

Reply

725 Abhishek September 26, 2011 at 3:35 pm

KOTAK may be good ( E Preffered ) for NON SMOKER AND WOMENS.

Reply

726 Abhishek September 26, 2011 at 4:15 pm

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.

Reply

727 Abhishek September 26, 2011 at 4:26 pm

ICICI i PROTECT IS BETTER then Aviva as It offers Accidental Rider a s well.

Reply

728 Manish Chauhan September 29, 2011 at 9:21 am

Abhishek

But that comes at a cost !

Reply

729 Ganapathy September 28, 2011 at 6:47 pm

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

Reply

730 Manish Chauhan September 29, 2011 at 9:04 am

Ganapathy

I have mailed Dhawal to reply to this .. he is on the way !

Manish

Reply

731 Dhawal Sharma September 29, 2011 at 11:58 am

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

Reply

732 sunil Date September 29, 2011 at 2:47 pm

@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.

Reply

733 Atul Gosain October 17, 2011 at 11:21 pm

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 ?

Reply

734 Manish Chauhan October 18, 2011 at 12:08 pm

Atul

Yea .. i think thats a good judgement

Manish

Reply

735 Pankaj September 28, 2011 at 7:38 pm

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

Reply

736 Manish Chauhan September 29, 2011 at 8:45 am

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

Reply

737 Ganapathy September 29, 2011 at 5:00 pm

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!!!

Reply

738 Dilpreet Singh Bagga September 30, 2011 at 12:01 am

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

Reply

739 Dilpreet Singh Bagga September 30, 2011 at 12:11 am

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.

Reply

740 D.inesh September 30, 2011 at 10:49 pm

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.

Reply

741 Reddy October 2, 2011 at 1:19 pm

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

Reply

742 Manish Chauhan October 4, 2011 at 7:35 pm

Reddy

Just ignore themm … buy MF

Manish

Reply

743 Aamay October 3, 2011 at 10:21 am

Manish have you reviewed Aviva i-Life ?

Reply

744 Manish Chauhan October 4, 2011 at 7:28 pm

Aamay

Aviva is one of the best choices at the moment .. you can go for it

Manish

Reply

745 Kapil October 3, 2011 at 7:51 pm

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

Reply

746 Manish Chauhan October 4, 2011 at 10:25 am

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

Reply

747 Kapil October 4, 2011 at 6:58 pm

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

Reply

748 Manish Chauhan October 4, 2011 at 7:34 pm

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

Reply

749 sravi October 7, 2011 at 6:43 pm

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.

Reply

750 Manish Chauhan October 8, 2011 at 11:58 am

Sravi

You can go for Aviva and Kotak for 50% : 50%

Manish

Reply

751 Nagesh October 7, 2011 at 7:44 pm

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.

Reply

752 Manish Chauhan October 8, 2011 at 11:57 am

Nagesh

Yes its a good choice .. make sure you give all the information correctly

Manish

Reply

753 Nagesh April 30, 2012 at 9:06 pm

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.

Reply

754 Manish Chauhan May 1, 2012 at 11:13 am

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

Reply

755 Dilpreet Singh Bagga October 11, 2011 at 10:19 pm

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

Reply

756 shah jolly October 8, 2011 at 11:48 pm

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

Reply

757 Manish Chauhan October 10, 2011 at 11:30 am

Shah

You should call an agent and enquire

Manish

Reply

758 Dilpreet Singh Bagga October 11, 2011 at 9:39 pm

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

Reply

759 Siba October 10, 2011 at 2:30 pm

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

Reply

760 Davinder October 11, 2011 at 3:19 am

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?

Reply

761 Dilpreet Singh Bagga October 11, 2011 at 9:32 pm

Dear Davinder, in case of eventuality, your nominee will get 100 Lacs from both the companies.

Regards,

DP

Reply

762 Dilpreet Singh Bagga October 11, 2011 at 9:34 pm

Don’t take my reply otherwise, i meant 50 lac each from both the companies… in total 100 Lacs

Reply

763 Sanjay October 11, 2011 at 11:02 pm

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

Reply

764 Manish Chauhan October 14, 2011 at 11:36 am

Sanjay

Term plans dont give any returns and thats the reason they have cheaper premiums because they only provide risk cover , thats all

Manish

Reply

765 Abdul October 15, 2011 at 12:11 am

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.

Reply

766 Bhaskar October 16, 2011 at 2:26 pm

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 !!

Reply

767 Manish Chauhan October 16, 2011 at 6:33 pm
768 Sandeep Aparajit October 17, 2011 at 7:29 am

Perfect article! It’s very good to understand the details of the term insurance. Thanks for this great article.

Reply

769 Manish Chauhan October 17, 2011 at 11:12 am

Sandeep

Good to see that you benefitted from this article. Keep it up

Reply

770 Sweraj October 17, 2011 at 4:09 pm

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?

Reply

771 Manish Chauhan October 17, 2011 at 8:36 pm

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

Reply

772 Kabya Bhattacharyya October 18, 2011 at 1:38 pm

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

Reply

773 Manish Chauhan October 18, 2011 at 1:42 pm

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

Reply

774 sunil Date October 19, 2011 at 2:26 pm

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.

Reply

775 Neeraj October 18, 2011 at 5:52 pm

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?

Reply

776 Manish Chauhan October 23, 2011 at 1:22 pm

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

Reply

777 Praveen January 23, 2012 at 8:41 pm

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.

Reply

778 Manish Chauhan January 23, 2012 at 8:57 pm

Praveen

Thanks for mentioning that :)

Reply

779 Ganesh October 18, 2011 at 6:22 pm

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,

Reply

780 Manish Chauhan October 23, 2011 at 1:20 pm

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

Reply

781 Pradeep October 19, 2011 at 1:02 pm

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.

Reply

782 Manish Chauhan October 23, 2011 at 1:10 pm

Pradeep

Give it more time .. you will get a call

Manish

Reply

783 Pradeep November 17, 2011 at 5:15 pm

Finally I got my policy from Aviva today.

Reply

784 Dilpreet Singh Bagga November 17, 2011 at 8:04 pm

Pradeep: congrats..

Reply

785 Deepak October 20, 2011 at 3:04 pm

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

Reply

786 Deepak October 20, 2011 at 4:28 pm

Just to add on; I am not inclined towards online cheap plans because of the obvious fear of hassles.

Reply

787 ram October 28, 2011 at 4:54 pm

Go with lic

Reply

788 Manish Chauhan October 23, 2011 at 12:43 pm

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

Reply

789 Ajay October 28, 2011 at 2:40 am

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?

Reply

790 Sunil Date October 29, 2011 at 5:52 pm

@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.

Reply

791 Dilpreet Singh Bagga November 1, 2011 at 12:37 am

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.

Reply

792 sunil Date November 1, 2011 at 2:12 pm

@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.

Reply

793 Dilpreet Singh Bagga November 1, 2011 at 6:53 pm

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

Reply

794 PANKAJ October 28, 2011 at 12:18 pm

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

Reply

795 PANKAJ October 28, 2011 at 12:21 pm

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 ser