Are you willing to buy term plan? – Here are some important tips you should know before buying term insurance

POSTED BY Jagoinvestor ON November 12, 2008 COMMENTS (125)

We will today discuss some of the best practices and must do things while taking a Term plan.

Click here to read what is Term Insurance and its Importance

Tips before buying term Insurance

1. Take a policy just before your Birthday.

Term Insurance premium depends on your Age. So if possible try to avoid taking the policy just after your Birth date. What i mean by this is that try taking it before you turn +1 year in age. If your Date of birth is 10/11/1983, and you take the policy on or before 10/11/2008, you will be considered of age 24.

But if you do a delay of 2 days … and you take a policy on 12/11/2008. You will be considered 25 yrs old and hence your premium will increase by 4-5%.

Note : It does not mean that if your birthday just passed by and now you want to take Insurance, then you should wait for another year. that’s not what i am saying ๐Ÿ™‚

For example:

For a male with DOB on 10/11/1983 (24 yrs old), the premium for Rs 50,00,000 cover with tenure of 25 yrs, is 10157, if the policy is taken on 09/11/2008 (just 1 day before the birthday). Where as if he takes the policy on 12/11/2008, the premium will shoot up to 10647 (Rs 490 more) .. though 490 is a small amount, but if we can avoid it by taking the policy little early .. always try to do it.

Even a small amount like 490 saved over 25 yrs in a PPF would give 45,000 and in mutual fund with 12% return will give 77,000.

Note : The gist of the point is that try to see this small point while taking the Term insurance, it does not mean that you wait for 8-9 months just to take the policy before a birthday.

2. Try to diversify your Policy

If possible try to diversify your policy amount over different Insurance companies. If you want to take an Insurance of 50,00,000, it would be better if you take 2 polices, rather than 1 single policy.

How it helps?

– If you hold a single policy and the company does not honour the claim, dependents wont get anything, but if there are 2 parts, then there are less chances that both the companies with not honour the policy.

– If your liabilities come down or you have less dependents after a couple of years and ultimately you need to bring down your Life insurance cover, you can simply stop one of the policies and continue the other one.

– It helps in diversifying the risks involved with the Insurance company.

3. Buy a policy early in life and for longer Tenure.

Its always recommended to buy a Term Insurance early in life and for maximum tenure possible. In your early life you are more healthy and hence your premium will be lowest. Also by taking insurance for a large tenure you are making sure that you are covered for a large period, but the premium will be marginally more.

For example : For a cover of 50,00,000

Example - why it is necessary to buy term insurance early


You can see here that you have to pay marginally more for an extra cover of 5 yrs. So for example, a person with age 25 will pay 14,000 more than the 30 yrs old, but he will be insured for 5 additional years. So it always pays in long term.

Also taking a 30 years term insurance once will be very cost efficient than taking a 20 yrs term insurance now and then taking a term insurance of 10 additional years after 20 yrs. Because after 20 yrs, the premium you will pay for that 10 yrs tenure term insurance will depend on your Age that time and health that time.

Note : Premiums are from Aegon Religare Life Insurance.

125 replies on this article “Are you willing to buy term plan? – Here are some important tips you should know before buying term insurance”

  1. TusharBodake says:

    HI Manish,

    Thanks for sharing details and educating us for financial life.
    I want to buy Term Insurance plan for myself. Could you please suggest best possible option for me including your recommendation for service provided and specific plan they have.
    Here is my details

    Age: 30 Years
    No smoking habits
    Looking for 30 years plan.
    Sum assured range : 50L to 1 Cr.

    1. Hi Tushar

      We generally recommend HDFC term plan. We also have a tieup with them on this for our readers. If you are interested, we will connect you to them . Just fill up this –

  2. Jithendra says:

    Dear Manish,

    I am an NRI and i work in qatar on employment visa..I have some doubts regarding term insurance(I want to take LIC Amulya Jeevan for 1crore).

    1)Whether an NRI is allowed to take the above policy?

    2)Whether i have to provide a permanent employment status for the above insurance as the jobs in middle east are not permanent??

    3)If I change or lost the job from qatar whether the policy will be cancelled?

    4)If I die anywhere in the world whether there is any problem for settlement??

    5)May b i will move to canada in the coming year..So in that case any problem for the policy?

    6)My wife is not working..whether she can take the term policy??Is employment is really necessary for taking term policies??

    7)Whether the nominee will have to be a single person or joint(wife plus child)

    8)whether there is any option to add second nominee if something happened for me and nominee??

    9)I last smoked a cigarette before 2 months.. In previous years like once in three month..can this can be diagnosed in lab test??

    10)If i start smoking after taking the policy how they get to know that??whether the ploicy will be cancelled because of that???whether there is any annual lab test for blood sugar,smoking ..etc???

    11)I read ur blog and i know that i am in smoker category. If I tick smoker what are the benefits (as ticking nonsmoker category is slightly worrying as there is previous smoking history)

    Thank you Manish

    1. Hi Jitendra

      NRI can take the policy and the only requirement is that you should be ale to provide the income proof and your regular docs. Thats all

      You can smoke later, there is no issue after taking the policy.

  3. SRINIVAS says:

    I am srinivas working as government teacher (telengana) . I bought pension plan in exide life insurance i have to pay 3000 per month for 27 this better FOR investing in exide or LIC ?

    1. Its ok . You can continue it

  4. Amit says:

    Dear Sir
    I am having annual income of 4lac and my wife 4.5 lac , at present i have 20 lac cover through different LIC polices not term and on the name wife not single policy we both are of 32 years ,On wife name we have taken home loan of 26 lac liabilities, So i am thinking of taking term plan of 50 lac on wife and 40 lac of me i have some doubts regarding same we have one son 3 yrs
    1. whether that much cover is sufficient
    2. whether to take it in divided from means 30+20=50 and 20+20=40 lac
    3.which company i should prefer i am thinking of LIC amulya jeevan, HDFCand max life insurance
    4. shall i take also any health insurance policy if is there any which include preventive health check up

    1. Hi Amit

      You can take 50 lacs cover for both of you separately from HDFC . We are parterned with HDFC and we can pass on your information to them , they will take good care . If you are fine with it fill up the following form .

      Also we will help you with health insurance

      Fill up following forms


  5. Sunny Gupta says:

    Hi Manish,

    I had applied 2 term insurance, one with bharti AXA and second with Aviva 50 lakhs each.

    These both companies issued me policies.

    I had a conversation with one insurance agent . He told me that you must surrender one of the policy as either of insurance company must be notified of other policy. So if something happened to you then your family can claim only with one company.

    Please tell me if his suggestion is correct and what to do.

    1. He is incorrect. You can claim from both companies

  6. divakar says:


    I am a occasional smoker with 1 or 2 cigaretts per year.So shall i be treated as smoker or non smoker by insurance company.

    Pl advicee


  7. pradeep says:

    i just wnt to ask tht my father dies in 2013 he was a govrnmnt job and know my mother gets a pension so she is a house wife can take term insurance her age is 49 . and he has a child his age is 29.

    1. Depends on the insurance company if they will give it or not .

  8. Satish Kumar Nemani says:

    Hi Manish,

    Thanks for providing the basic insight on Term Insurance plans.

    I Have taken quotations for Term insurance with the Sum Assured: 1 Crore for a tenure of 35 years from some of the insurance companies.

    Aviva iLife Premium per annum: 8008
    SBI Term Insurance Premium Per annum: 12000

    Both Term plans has the same terms & coverage.
    Why there is a premium difference of 4k between them?
    Also Aviva being a foreign company and new to indian insurance market can we expect this company to be in the market(Who knows it may file bankruptcy) for the next 35 years?
    In the case of bankruptcy from a private insurance company will there be any assurance of the Sum Assured from the Indian Government(I knew there won’t be any assurance from Indian Govt, Still I wanted to confirm this)?

    1. Read this to understand the reason for premium difference –

      Regarding your other query, I can just say you need to trust IRDA the regulator on this . Other wise better go with pure indian companies, but how do you assure that they will not get bankrupt ?


  9. Sonal says:


    I would like to know any reviews/feedback on SBI eshield term insurance. How does it compare again HDFC Click2Protect? Any feedback would be highly appreciated.


    1. Sonal

      As its a new plan, I dont think there will be many reviews available !

  10. bhavesh says:

    i am looking for sbi life e shield plan.
    i m 27 year old..
    Policy Term 20 years, Sum Assured of ` 25 Lakhs .& premium is 4233….
    but i do not die then after 2o year… i get money or not???? if i get money then it is how much??? or,, if i do not get money then what??? pls give the suggeesion….
    or full idea of this plan…

  11. Himanshu says:

    Informative article. I have one query on term insurance. If one is a social drinker ( say 1/2 pegs per month that too when there is some occasion) does he need to mention this in the policy application form ?

    1. Once a drinker/smoker , always a smoker/drinker is the rule !

  12. SONU says:

    Dear sir
    I want to know that how much term plan one sould take. Again annaul income for every individual is incresing yearly, so how to decide the amount. please guide me

    1. Take a term plan which is suitable for current moment

  13. Swanand says:

    Hi Manish
    This blog is highly informative and detailed, Many thanks for this, appreciate the same.

    However I have a question, if Suppose someone is holding a term insuarance policy and if the person travelled abroad & death occures then will the Insurance company still liable to honour the claim? does geographical boundries matter in this case??

    I could not read entire blog so if this si repeat question then apologies but still require an answer for this..

    many thanks in advance

    1. Yes, he will still be paid. Geography does not matter !

  14. BHARAT PUROHIT says:

    Dear Manish,

    I am having term insurance from KOTAK LIFE worth 30 lacs cover from last 3 years. Now by considering safety and risk point of view, i want to change my term insurance from KOTAK to LIC..



    1. Its not possible like this .

      Where is the point of losses here ? this is no investment policy ! , its just pure risk cover, so you just close this and move to LIC . thats all

  15. shree says:

    Hello Manish

    My friend is running 43yrs and will complete it on 31st May. I want to gift him term insurance & health insurance before his birthday.

    Few Facts @ him – Smoking-Packet a day for last 15 years, Drinks-Very Occasionally. Diebetes (only on pill but not regular checkup), No known health complications as of now. Earning -30Lac p.a. Monthly expenses – 75K., 3 dependents (Wife+2 Daughters <12yr old)

    Would you guide for lowest but reliable 1) Term plan for about 1Cr(Can split of 50L each need Medical at this stage) 2) Suggest ideal health insurance for such lifestyle.

    1. Hi Shree

      Good to see your committment towards your friend. This is the best gift one can give in today’s time ๐Ÿ™‚ . I will help you on this . First understand that your friends habits will make sure that the premium is going to be on a higher side and in worst case companies might decline giving the cover itself .

      You can look at Aviva or HDFC as good options . Check the premiums for both on their websites . I guess the yearly premium would be around 40,000-50,000 after LOADING (fact that he drinks and smokes and already have diabeties) .

      IN case of health insurance try Religare and Apollo .


  16. kevin says:

    Thanks a lot about all the information provided about term insurance. Have a question for you

    In case of birth parent being different from legal parent , who’s name needs to be mentioned while providing details to the insurance company ?
    In the candidates birth certificate , the name of the birth parent is mentioned .But since then they have passed away due to ill health. All other current documents have the names of the legal parents.

    Kindly advice.

  17. Nimesh Parikh says:

    Can you pl share your thoughts on online v/s offline term insurance? Are there risks with online policies? Are there statistics on which company best settles online policies?


    1. No risk on online term plan .. just go ahead

  18. Pramod says:

    Dear Manish:
    I am a salaried person having 3 dependents-wife, 2kids (age:5 yr, 2 yr), No loan of any kind, own house. I had Kotak e Preferred term plan of 30lac with annual premium approx 9,500. I thought it was less, this year I bought another term plan of 100 Lac Aviva iLife with normal annual premium approx 19,000. Medical reports are normal.
    I am bit confused- should I continue with both or stop Kotak term plan now?

    1. If you feel that your insurance is more than required, then better stop the KOTAK one !

  19. Nikhil says:

    What happens to the term insurance plans taken by any individual if the company closed after some years???

    1. That company will be surely acquired by other and your policy will move ..

      1. Nikhil says:

        I have Aegon Religare Term plan from almost 4 months. I & my wife have heard Aegon & Religare are separated now. Is it a good plan or should i move to different term plan??

        1. No I dont think they are seperated . Who told you ?

          1. Nikhil says:

            i have read somewhere like this or Aegon is trying to be out like this. What about the term plan?? should i change it or should be continue with the same plan???

            1. I have not heard anything like that as of now . Even if that happens , there is not much to panic .. these kind of mergers keep happening !

            2. Nikhil says:

              After reading your article i found that AEGON has the settlement ratio 66% last year. So should i stop this & take HDFC or ICICI term plan?? I want riders also with that. IF yes what is the procedure to stop this & take new??? Is Port also applies over here???

            3. You dont have to do anything .. just continue with them .. the claims are rejected when there is some data hidden by customers !

            4. Nikhil says:

              Thanks, And also I want Health insurance plan of 10 lakhs?? SO should i opt for Apollo muniach or religare plan???

  20. Neelesh says:

    Hello Manish,

    I am 31 (recently marriend, wife : aged 28). Planning to take 3 term insurance policies each SA 50 lacs (so total of 1.5 cr):

    1st policy : until My age : 45 yrs
    2nd policy until My age : 55 yrs
    3rd policy until My age : 65 yrs

    as the age grows the financial dependency reduces – this is the philosposy behind the above. Is it the right way to go ?


    1. Neelesh says:

      Well, does it make any difference than taking 3 policies for 65 years of my age and stop paying premium for one at 45, one at 55 and take the last one until 65 ?

    2. Why dont you take it all till 65 yrs and stop them when you wish to .. What will you do if at 45 you realise that you should need more life insurance .

      1. Neelesh says:

        Yes, this looks better option. Thanks Buddy.

  21. Kiran Kumar Buthpur says:

    Thanks Manish for the Info…

    All the comments have helped me to come out from confusion and take decision ๐Ÿ™‚


  22. AB says:

    Hi Manish,
    I am started with the procedure to fill up the application form for term insurance.
    There is one question in the application form which is making me little curious,

    Q-Do you have any physical deformity?

    Let me explain why I am worried,
    In the year 2004, I met an accident & got fractured my right leg under which I have to go through a surgery to fix it. There was a screw fitted in my leg for 2 months to join the fractured bone exactly below my knee. After 2 months the screw was removed & it has been declared that the fractured leg is now ok.

    By the grace of god my leg is absolutely great & I am as normal as others however there is very minor deformity in my leg joint which can’t figured out by anybody unless told by myself.

    Kindly shed some light on how to deal with this question to avoid further issues in case if the time calls for claiming the policy benefits in case of death.

    Thnx in advance.

    1. All you need to ask yourself if the answer is “Yes” or “No” . I know its very far from “YES” , but a more closer answer is YES rather than NO . So you must say YES in the form .

      Also do not get worried because of the question, its not always the case that your premium gets increased, its all part of underwriting process


  23. sapana says:

    Dear manish,

    I m an NRE, n r going to India for vaction. In this vacation, v have plan to take term insurance for my husband, sum assured=50 lac from India. Kindly advice which company w can approach direct and get the work done in 20 days time for NRE. Visited , but not useful as it is asking for Indian ph no. wich we dont have? pl s suggest ….we r going next month itself


  24. Rajeev S says:

    Hi Manish, Nice to know finer details in your blog. Stil I need a clarification, weather the death of a person during natural calamities viz. Flood, Earthquake..etc will be covered in Term Insurance. As I am (39 yrs old) planning to take a policy from Kotak Mahindra for 75 lacs for 25 years. They are saying its not coverd and its the same with all companies. Is it true..?

    1. Rajeev

      Most of the companies do not include it , but at the time of claim, due to humanaterian grounds , they give it !

  25. Santhi says:

    PPF for secure investment – 20-25 yrs
    MF for better returns – 5-15 yrs
    Pension plan for future security – 30-35 yrs

    I haven’t included Term plans as my company provides health and life insurance for myself.

  26. Santhi says:


    Im 26 and working in Software and married Female. Would like to do planning for investments. After reading your blog decided to go with PPF + MF + Pension plan. Could you please advise best for current market situation as inflation is going high in India. Till today i haven’t done any investment and want to start with Rs.60,000 per year. Suggest me

    1. Santhi

      You have not said anything about what you want to create ? What is your requirement , only giving your situation is not enough


  27. Pingback: Type of Health Insurance | Insurance Club India
  28. drishti says:

    i my father wants a term insurance policy . he is of 50 years and want policy with minimum premium .
    he is ready to invest an amount of 50 lakh in it
    pleasse suggest some good policies in LIC

    1. Drishti

      Term Insurance is just a plain product which pays one death of a person . Its not an investment product . Who all are financial deppendent on your father income and to what extent ?


      1. drishti says:

        yes true i used wrong word a” invest”. we are single family with 3 children all totally dependent on him(as we are completing are education). my mother is also a houswife

        1. Drishti

          then he should go for a term plan , but for protection . not for investing … for investments he can go for balanced funds or debt funds , because he does not a lot of earning years .


  29. Rajeev says:

    Would just like to know where can I get the claim settlement ration for term plans for Insurance companies.

    1. Rajeev

      You cant get seperate numbers for term insurnace ,all the numbers are combines for term + endowment + ULIP

  30. Bhavna Gandhi says:

    Hello All,

    The Best Term Plan offered in the industry.

    The oldest & first (I believe the only) ISO certified private insurance company in India has been missed out in this forum which is Max New York Life which I believe also offers the best and must have term plan in the insurance industry. Max New York Life offer Platinum Protect Term Plan and sample illustration is mentioned below

    The Claim Settlement ratio of Max New York Life Insurance (90% in case of term plans) is the best / highest in private sector and on the 2nd position (just behind LIC which has 95% Claim Settlement ratio for term plans) in the overall insurance industry.

    Benefits which are not available in any other Term Plan
    1. Reduced Insurance Cover even if you stop paying Premiums
    If Premiums have been paid for at least 15 consecutive Policy Years beginning with the Effective Date and the Policyholder discontinues payment of further Premium(s), the Policy will continue with a โ€œReduced Insurance Coverโ€ as per the formula shown below.

    Reduced Insurance Cover = [((Policy Year* โ€“ 1) / Policy Term) โ€“ 25%] * Sum Assured.

    * Policy Year refers to the year of discontinuance of premiums

    Example โ€“ Male aged 30 takes Platinum Protect plan for Rs. 50 Lac sum assured and a 20year term. If he stops paying premium 16th policy year onwards, he will be eligible for 50% of sum assured as Reduced Insurance Cover for the remainder of the policy term.

    2. A cost effective term plan.
    3. Low premium rates for non-smokers/preferred non-smokers.
    4. Optional Presonal Accident Benefit & Dread Disease Rider which cover 10 critical illness.
    5. Premium Discounts on High Sum Assured.
    6. Comprehensive Medical Report at the time of policy issuance.
    7. Tax Benefits under Section 80 C & Maturity Benefit under 10 (10D) are subject to changes in tax laws

    Minimum/ Maximum Age at Entry : 18 years / 60 years
    Expiry Age : 75 years
    Policy Term 10 years, 15 years, 20 years, 25 years or 30 years
    Sum Assured Minimum: Rs. 25 lacs
    Sum Assured Maximum: No Limit
    Special Rates for special customers :
    1. Lower premium rate for Females and non-smokers.
    For Sum assureds Rs. 50 lacs and above, there are two additional benefits:
    2. Special high sum assured discount.
    3. Additional discount to healthier policyholders who do not consume tobacco in any form

    Thank You,
    Bhavna Gandhi

    1. Bhavna

      Thanks for your review and knowledge .

      I would like to know why Max Newyork has just 66% of claim paid ? As its one of the biggest companies in terms of size , having rejected 34% is not a small thing . can you clarify :


      1. Bhavna Gandhi says:

        Hello Manish,

        Thanks for statistics. Firstly, If you observe carefully the MYNL stats then only 12% of the claims are refused. Secondly here I believe here we are discussing about the Term Plan hence it would make sense to compare term plan claim settlement records rather than overall death claim record. 90% Claim settlement ratio which I have mentioned above is specifically of the term plan excluding the claim settlement ratio all other life insurance products offered by the company.

        Hope this helps!!!

        Thank You,
        Bhavna Gandhi

  31. ashish says:

    Hi manish,
    I read that the claims settlement ratio of aergon religare is 48%,what is the reason for such variations in different companies.

    1. Ashish

      Any company which is very new in its operations , for them all the claims are early claims (which is before 2 yrs) . As the amount is so big , they investigate in detail and if there are any discripencies then its their right to reject the claim .


  32. Ashish Gadre says:

    Hi Manish,

    I am quite impressed with the information and knowledge you share on this, it is really helpful.

    1) I want to take term insurance (I am 42+ as of now) for a period of 25 -30 yrs. for 25 to 50 lacs from LIC? Which term insurance policy should I opt for? What will be approximate premium (One time / Yearly).
    2) What could be the best combintion for Term insurance + Investment.


  33. Phani says:

    hi Manish
    1.Are there any term insurance policies which are valid for more than 30 years.
    and if there are what are the best.
    2.I heard there are some insurance(non term insurance)which will have life time coverage..they sound better as any way you will get all the money even in case of natural death..heard these are from LIC.


    1. Phani

      Term insurance does not have those kind of plans . The plans which you are talking about are whole life plans for example Jeevan Tarang , read this review :


  34. Durga says:

    Hi Manish,
    I really go impressed by your analysis on insurance. I am 25 years software employee.I used to smoke when i was 16 years of age.But I quit smoking at the age of 17.Do i need mention i am smoker while fill the policy form.

    1. Durga

      Yes , you should mention this .

      1. Swetank Saroj says:

        Hi Manish,

        But this is really absurd. It is like paying for your past sins. If one have left smoking, why he ir she needs to inform it; and even if it has to then company need to consider the case.

        Even the medical research shows that a heavy smoker once leave smoking, body/health gets back to normal in few years.

        I used to smoke till 4 years back (smoked only for 3 years from 2004-2007). I checked the price difference of Religare iTerm plan for 1cr; its 3500/- per annum. That means we need to pay the fine for our past mistake for 45 long years.


        1. In a way its weird as you say, but thats how it is, they see is as “damage once done is for life” , also the chances you getting back to smoking might be there.

  35. Adarsh says:

    Hi Manish, i think lic is the only company sells policy up to 70 years. After 60 years the mortality rate is really high in india, I did a lot of research and found that LIC term insurance is the best term thing. ( i-term of aegon religare is giving coverage up to 65 years and i guess we should go for a policy each from LIC and aegon religare)

    1. Adarsh

      Hmm.. makes sense, for LIC , i cant comment on anything except that confidence from people is huge and that adds to satisfaction when they take it from LIC, so tehy can go ahead


  36. Adarsh says:

    Hi Manish, really great work with term insurance thing dude, you will lessen the hardship of many families who lose their breadwinners .
    I am 33 and have been lucky and smart enough to avoid any endowment plans by LIC agents, had so many near misses. I have always advised my freinds and colleagues to go for a term insurance and other product combo.
    Recently two of my colleagues applied for 25 lacs insurance policy and the agent tried hard to convince them not to go for term policies as they wont get any money back. Well, i beat the cr*p out of his logic and he very disheartenly forwarded their applications.
    Now LIC proposal sanctioning office has put a condition (the agent showed me the internal papers of LIC) that they must buy endowment policies (that too from certain group of schemes only) to pay premium of at least 5k per month and only then term insurance will be given. Man, it did raise my BP . Is LIC within its rights to do so? if they reject the policy on medical, income or any other ground its logical but such a condition about other policies is not advised on lic website also. Can we do something about it, may be complain to IRDA after getting all in writing from LIC.
    And yea, since aegon religare i term is not avaialble in Jabalpur we have to go for LIC. Plus LIC has the only term insurance that provides cover till 70 years.

    1. Adarsh

      Thats really absurd !! .. I am not sure if LIC as a company is doing it , they should not be , it might be a trick of LIC agents itself . Can you send me some documents/emails which you got regarding this ?


  37. Chetan Deshmukh says:

    Hey Manish,
    Nice article.I have been reading your articles from couple of months now and truly its a value add to my knowledge.
    Btw your articles get lots of comments & many useful info come from those comments also but its hard to go through each of them in detail.I may miss some imp comment which i dont want to happen.
    Would be glad if you can update the main article with any imp info/conclusion you make in comments .

    1. Chetan

      Great to hear that . I do “Learning from Comments” articles once in a while which has lot of learnings from comments .


  38. Harish Handa says:

    Hi Manish,

    Very thanks for this brilliant article.

    BTW, I already have a term insurance plans from LIC. And now I’m planning to buy another term insurance plan. My queries are;
    1. When I will buy new term plan, do I need to disclose to LIC or vice versa…
    In other words, Do I need to inform both the insurance that I’m already holding term insurance plan from other company as well, if yes, then how do I do that?

    2. In case of claim, my family has to submit the documents (I guess original document). How the claims will be made from two different insurance companies as all the original documents has already been submitted either to one company? How the second insurance company will honor the claim?

    Harish Handa

    1. Harish

      You should disclose to the first company that you hold an insurance policy already .

      Regarding claim from 2 companies , its possible , I am not sure at the moment how to do it , but it happens , will find out .


    2. adrsh says:

      You dont have to permanently submit original documents for claims.

  39. Ratnesh says:

    Hello Manish,

    I want to take term insurance (I am 30+ as of now) for Max period of 35 Years. I have quotations (Anuual and Single Premium) from LIC, which are:

    LIC Amulya Jeevan โ€“ 35 yrs (max 35 yrs), 25L sum assured. Cost=10350. (Annually)
    Single Premium Cost = 150200 Rs

    Which one, Single premium or Annual payment, is more advisable? What is he basis of arriving at single premium?


    1. Ratnesh

      This will depend on your paying capability. Yearly premiums will be good on pocket and also allow you to enjoy tax deduction for small amount every year + you can back out anytime from the policy

      One time premium might turn out to be little cheap , but then you will loose out all these advantages . The way they are calculated can be clumsy for you to understand , but its more about present cost of all the premiums in future + some discount .


  40. murali krishna says:

    i am 39years10months. i want to the polices similar to sbi life shield in other companies like lic etc

    1. Murali

      Its not clear what you want ?


  41. Anush says:

    Hi Manish,

    Can you please elaborate what is mean by
    “most of the rejection happens because of buyers mistake and not filliing information properly”

    Does it mean,information we fill like what other policies you have while filling
    forms of any insurance plan.

    Please reply, Thanks in advance


    1. Anush

      Most of the policies gets rejected because of the wrong or incomplete information provided in the form , this happens because most of the agents fill in the form and being in hurry they dont ask your very well all the details and also purposefully fill in / dont fill in the information which makes them more money . This results in policies getting rejected at the end .


  42. Sam Mehta says:

    Dear Manish,

    I had 2 queries related to these term insurance products. While the premium being paid is an important factor,

    a) should one also find out what the claim ratio for a particular product by an insurance company is? it will give an idea of how good is the company in honoring claims.
    b) with all these private players, there is always a question of their own longevity. What happens to a policy if an insurance company like Aegon Religare goes under or shuts down?


    1. Sam Mehta

      a) Yes you can , however most of the rejection happens because of buyers mistake and not filliing information properly and not from company side , If your information is correct , there are no chances of rejection . If you are still not comfortable , you can split in something safe and other one .

      b) Dont worry on this , this can happen with any product , the company will be bought by some other company in case it collapses.


  43. Krishna says:

    Also Do we need take separate Accindental insurance to cover permanent disability or the partial disablity.Kindly let me know

    1. Krishna
      Yes , thats what accidental rider covers ๐Ÿ™‚


  44. Krishna says:

    I have question does the premium raise with each year as you grow old or you have to pay the same premium throuth the policy term.?

    1. Generally Same .. however depending on govt policies , it can affect premium later


  45. pradeep says:

    i want to know shall i get term insurnace at the age of 54 if not possible then which is one of best for me. please suggest

    1. Pradeep

      Now term insurance premium will be very high for you , but anyways if you have lot of financial resposibility then you can take insurance even at this stage of life . LIC would work best for you I think .


  46. Deepak Gupta says:

    I want to take term insurance (I am 31.7 as of now). I have taken quotation from LIC and SBI, which are:

    LIC Amulya Jeevan – 30 yrs (max 35 yrs), 25L sum assured. Cost=9500.00.
    SBI Life Shield – 25 yrs, 25 Lakhs [5% increase every year], Accident+Premium waiver riders, cost = 16,813.00

    Few questions:
    Does it make sense to go for 5% increase of Sum assured every year (SBI Lifeshield)?
    The agents I talked to so far have said that they do not pass back the commissions. Is it a normal practice? The last policy I took some 10 years back, that advisor gave me 25% of the 1st year premium.
    Any other tips while taking term insurance ?

    Thanks in advance,

    1. Deepak

      5% increase makes sense because the inflation will also rise with almost same rate and then your cover needs to go up too .

      Agents might not pass the commision back , its his personal choice, its not a rule . Anyways they make very less commission on term insurance .


  47. Madan Mohan says:

    Hi Manish,
    I am 27 years old. Recently, I have taken a term plan from ICICI prudential (Pure protect Elite) of 25 Lac with accidental & disability rider for term of 30 years. I am looking for another term plan of 25 Lac for 25 years/35years with same rider from a different company, which is cheapest. But I could not find the best composition. Please suggest, which product should I go for? Also suggest, whether I should go for term of 25 years or 35 years.

    1. Madan Mohan

      You should go for the cheapest one , which is iTerm from Aegon Religare .

      You should make sure that it covers you till your retirement start .


      1. Madan Mohan says:

        Hi Manish,
        Thanks for your reply. Off course I also like iterm very much. But as you know, it does not cover any temporary/ permanent disability. Also it cannot provide me cover till my retirement, because its maximum term is only 25 years.

        1. Madan , in that case you can take it for some part .. not whole


  48. Divekar says:

    Hi Manish,

    Your blogs are very nice and informative. I am from Mumbai 30 year old. From last 1 month I am hunting for best Term plan for the coverage of Rs.50,00,000/-. I want to opt for the maximum duration (like 35-40 years). But in policy market only 35 years plans are available with LIC (Amulya Jeevan) and MetLife (Suraksha Plus). The premium for LIC plan is Rs.20,700/-, whereas for MetLife it is Rs.14,560/-. Other insurance company having the term plan maximim for 30 years only. Please guide / suggest to make my decision worth.

    1. Divekar

      the best place to find the answer would be . you can get details on this. I would suggest take 25 lacs from LIC and 25 lacs from some less premium company . LIC i am suggesting because you seem to be less risk appetite and sensitive to safer-looking companies.


  49. Nilesh Panchal says:

    Hi Manish,

    I would like to know one thing may it seems silly question but still want to ask. All Term Insurance are having same terms and conditions for claim settlements, i.e. if a person after taking term pland dies after 3 years and have paid the premiums regularly then his claim will get settle. If in case this person has died in due to Accident (will claim settle only if accident rider is taken?) or a person dies due to Heart Attack (will claim settle only if health critical rider is taken?) or a peron dies in some riots or terrorist attack?

    Please discuss.
    .-= Nilesh Panchal´s last blog ..Why and When Do We Need Counselling? =-.

    1. manish says:


      No , When you take an insurance , it means you will get the money whenever you die , Even if you die from accident or heart attack you are going to get the money . Riders just enhances the features . With accident cover you will get extra money when you die from accident , also it covers you from permanent and temaporary disablement .

      Same with critical rider . Riot and terrorist attack will depend on the company policy document .read that .



  50. john varkey says:

    I read your article on religare term insurance well said, my age is 40 an nre, 3 children 2 daughters 5 and 3 year old, son 3 year old, wife also works, ihave company provided life insurance free cost to me for Rs. 30 lakh, my personal life insurancw for Rs. 22 lakh, do I take term insurancw from religare, annual income for both is RS. 30 LAKHS YOUR KIND ADVISE IS REQUESTED

  51. manish says:


    Buy the cheapest term Insurance , split it into two . You dont need more information that this . Try to find out which is the cheapest for you .


  52. Nilesh says:


    Can you please blog on some good insurance companies and policies (with names) for Term Insurance ? I have been reading your blogs for the past few weeks and am convinced to go in for a Term Insurance (was considering LIC Jeevan Tarang before I read your review of it ๐Ÿ™‚ )
    If you already have blogged on this can you please guide me with a link to the same ?

    Keep Blogging … you are too good at it …


  53. Manish Chauhan says:


    You have taken a good decision . If you want more Insurance , Diversifying it across one more insurer would be good idea , that way if you want to lower your exposure later , you can just stop one of them rather than taking a new policy .


    1. Deepak Gupta says:

      Should we diversify in to 3 insurance companies ? Is there a harm in doing that ?

      Also, is there a clause in insurance that you can claim insurance from one company. So for .e.g, I take 50L from LIC & 50L from SBI then is it possible that SBI can reject the claim after my death on the grounds that LIC has already approved. I know what I am asking is silly but in India you never know ๐Ÿ™‚

      1. Deepak

        In Life insurance you can claim from all the insurance providers. Dont worry .
        taking cover from 3 company is over diversifying , we split in 2 for the worst case .. even 2 is too much ๐Ÿ™‚


  54. Mahadevan says:

    I took a policy and a week after that Aegon Religare was launched. Looks like their premium is far less than Kotak.

    1. Prashant Patil says:

      Religare i term & i protect is not available to persons residing in others cities listed on sites. is there solution for others

  55. Manish Chauhan says:


    Yes , i agree ..

    But what is the point i am trying to make ? I am trying to say that whenever you take the policy , please investigate if a little delay can affect your Premium ? If yes , then dont be lazy , try to utilize the opportunity …

    There has to be some time in a year when with a 1 day delay , the premium can increase .

    Btw , SBI Life Insurance will not consider your completed number of years only . So if you are 24 completed and if you take the policy just before 1 day of your birthday , you will not b e considered 25 , but 24 .

    Note : Taking the policy before 1 day means , it has to be processed , not when you give the forms for the agent .

  56. Anonymous says:

    LIC considers the nearest birthday as your age. So 1 day before your 25th birthday, you will be considered of age 25 and not 24.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FREE Financial Health Checkup

Take up a detailed 25 questions financial health checkup to find out how much you score out of 100?