9 most asked questions about Term Insurance

POSTED BY manish ON September 26, 2010 COMMENTS (1,004)

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

I am sure you must be concerned about all these questions if you have a term insurance policy or planning to buy one.

Today, I will answer some of the most asked questions, which an individual has in his mind, about term insurance. These questions if left unanswered would not only lead to fear, but may also delay one from taking the right decision.

term insurance

Please note: The following questions and answers are only for term insurance policy and are generally true for any company’s term plan. However, very rarely these questions and answers may differ across insurers.

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

Yes, term insurance pays in case of an accidental death. The sum assured or cover taken under the term plan will pay the claim if the death has occurred due to any reason, be it natural or accidental death, or death due to some illness.

There are certain riders (additional benefits) such as accidental death benefit, permanent disability rider and critical illness rider. By buying/adding these riders to the policy, a policyholder can ensure that his nominee will get an amount over and above the basic sum assured (due to any of the rider-related incidents).

2. Does Life Insurance covers death outside India?

Yes, term plans cover death outside India provided the policyholder has updated this fact with the insurance company. He needs to mention that he now lives outside India. Just like change of phone number, address or nominee, there is a facility in the policy service form where the policyholder has to mention that he is going abroad.

However, if he is going to a country that is marked as unsafe like Pakistan, Burma, Somalia etc., then the company will decline this facility. Otherwise, this cover will be valid in other countries like US or UK.

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

There is a difference between early claim and normal claim. If a claim arises within the first two years of buying the policy (This period varies from company to company), the company investigates extensively before settling the claim.

You can very well understand if someone has a cover of Rs.50 lakh by paying Rs.7,000 annually (And he has taken this policy on monthly basis, i.e. paying around Rs.600 monthly), then the company is at a great risk. Hence, the company will doubly check everything to settle the claim.

In normal claim, premiums are paid regularly and the policy is in force for a long period, say 12 to 15 years. In these cases, there are not much issues in getting a claim, be it LIC or any private company.

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

Unless and otherwise it’s mentioned in the policy document. Premium of a term insurance remains the same throughout the term of the policy provided everything remains the same with the policyholder. That is, the policyholder has not developed any illness or any smoking/drinking habit.

On declaring any such thing, company might apply loading and thus the premium amount changes.

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

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

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

Depends on the policy, but just for example, the Kotak Life Insurance proposal form mentions that the client has to declare whether he was a smoker or drinker earlier also even if he has left that habit long ago. Please see page 4, question 10.3 of this document . However, I am not sure about other companies. Also, it depends on the company whom they consider as a non-smoker at the time of issuing a policy.

For example: Max New York Life Insurance, for its Platinum Protect (term insurance), considers people, who have left smoking more than three years ago, as non-smokers. So please check the company’s rule 🙂

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

Some important facts, which most of the people are unaware of, are that most companies exclude “Death due to Terrorist Attack”. Although such claims are settled on humanitarian grounds later on when the nominee approaches Insurance Regulatory and Development Authority (IRDA) but such exclusion is there in most companies.

Other important fact, which public at large is unaware of, is that insurance companies do not cover death due to war or natural disaster like earthquake/tsunami. Because in these cases, death toll is high and the claim to be settled runs in crores of rupees which is difficult to settle by the company all of a sudden.

Therefore, these facts should also be kept in mind while buying a term insurance.

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

The very first thing, in these cases, is to declare in the proposal form that you already have a policy from an XYZ company. (There is a column in every company’s proposal form, which a client has to fill if he has an insurance policy from the same company or any other company).

Once such information is provided, then at the time of claim, the usual practice is to submit the Death Certificate to the insurance company with whom the policy is running for the longest period. Other companies are then informed of the procedure due and an acknowledgment from the FIRST Company is provided to them which are accepted by other companies.

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

9. Can NRI’s buy Term Insurance?

They can, but there is a catch. As a general rule, a person has to be resident in India to take up insurance policy from an Indian Company, reason being the documents required by the company like Address proof/age proof are to be for some place in India.

Moreover, if the Sum assured required is more than 50 lakhs or so, customer is required to submit his financial papers such as last 3 years ITR or Form-16 which again should be done in India only. Last thing, medical tests would be done at some medical center affiliated to the insurance company near the address of the client which again should be in India.

So these are reason why insurance might have been declined to some NRI.

So one way which might work is this , If a NRI wants to take Insurance, then on his/her next visit to India he should submit his proof of residence, age, last 3 years ITR etc. and get his medical done at his Indian address. This way he can get his policy issued very easily.

However, there is no need to complicate it and in-case you are out in some country and plan to be there for next couple of years, the best thing would be to take term insurance from your country of residence and later when you come back to India, you can buy term insurance that time.

Watch this video to know some more FAQ’s about term plan:

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

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

Get FREE call back from Jagoinvestor Team

First Name*
Email*
Mobile*
City*
Yearly Income*
Time to Talk*
Which Package*
Your Requirement
Lead Source
Lead Status

1,004 replies on this article “9 most asked questions about Term Insurance”

  1. Suresh says:

    Excellent article, thanks for your time!

    1. Jagoinvestor Admin says:

      Thanks for your comment Suresh .. Please keep sharing your views like this..

      Manish

  2. ram says:

    Hi Manish,

    I have already read your 10 financial principles book. It was really useful. Now, I have a query regarding term insurance.
    I am planning to buy a term insurance for 1 crore cover. I used to smoke for like 6 months (not heavy) and I quit recently. now, my query is if i mention that i am a non smoker , will the insurance company conduct any medical examination to have it proved?
    P.S. I dont know if history of smoking can be detected under medical test. Pardon my ignorance.
    Thanks.

  3. Raghav says:

    Hi Manish,

    I think this is 1000th comment of the post. Congrats and Thank you for helping people like me with their financial decisions.

    I am working in Public Sector. I have 25L LIC Offline Term Plan which was through an agent. I am not sure what agent has written in the form. I also have 5L Postal Insurance (Endowment). I want to get rid of both policies but should take at least 50L Term Plan before that. I have been analyzing Online Term Plans. I was stuck between ICICI, HDFC & Max Life. I came to know that HDFC & Max are going to be merged. I also see fall in HDFC Claim settlement ratio etc.

    Meanwhile, my father & colleagues are suggesting me to take LIC Policy as it is a Govt. undertaking. I am also concerned with Terror Attacks, War, Natural Disasters etc.

    Below are my queries:

    1) Does Private Insurance companies cover Terror Attacks, War, Natural Disasters etc. Most of them not mentioned anything about these in “Exclusion List”.

    2) One of the Bloggers mentioned that there is chance of scam like “Sathyam” in case of Private Insurance companies even though they are governed by IRDA. (I think he is not against any Private firm)

    3) Is it safe to take One Term Plan from LIC and other from Private.

    4) HDFC or Max Life, which one do you suggest keeping Merger in view.

    Please understand I am more concerned about my family as I am the only person earning.

    Thanks & Regards,

    Raghav

    1. I think you are over analyzing this .

      Insurance companies are regulated by IRDA properly , be it LIC or HDFC. You can go with LIC if you want or have trust issues. But I think its 100% safe with HDFC or any other company.

      If you want further support, we have a dedicated team for this. Just leave your comment and my team will call you and assist you on this

      https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

  4. PankajSinha says:

    Hi Manish,

    Thanks for such a nice article.
    I have bought one ICICI Pru term insurance policy in July 2016. While purchasing it i had mentioned that i am a smoker and also consume alcohal which they had filled in their application form and i also do have a soft copy of that.But in the bond paper they haven’t mentioned anything on that and they have neither conducted any medical test. When i called them and asked to understad the reason then they said that since i had already mentioned about my consumption of tobacco/ alcohal and my age is also under 30 so medical test was not required here. But i am just thinking that will it cause any issue when actual need will come ? Can you please tell me whether i should be worried about it or not ?

    Regards,
    Pankaj SInha

    1. They must have mentioned that in the main agreement paper which has come. Ask them to include that

  5. Munesh says:

    Hi Manish

    Do you advise to take a term Insurance with Riders like Critical Illness benefits.? or buy seperate policy for CI.

    please advise

    1. Any option is fine !

  6. kumaravelu says:

    Can we change nominee.

  7. vijay says:

    Hi Sir,

    I have a term policy with AVIVA. I want to take out one more term policy to cover my home loan now. Is it ok to have 2 or 3 different term policies?

    1. Yes Vijay, its totally ok !

      I suggest you fill up this link to get help on this issue https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

      Manish

  8. Rajesh says:

    Hi Manish
    I have a LIC amulya jeevan term insurance plan for 40Lacs for which the premium is 12K+
    but other insurance companies they give for 1cr and premium is 7K across only.
    2nd question – does the term insurance cover natural death too or only accident death or any medical related death.

    thanks

    1. Rajesh

      You can buy another term plan in that case. All kind of death are covered in a term plan.

      You can fill up this form if you want our team to help you choose and connect with our trusted partner, who will guide you well on this aspect

      https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

      Manish

  9. obaidahmad says:

    do a deutch insurance company cover medical and hospital expenses outside the country like india?do they settle death claim if person dies at india?

    1. They will cover it, But the settlement will happen only in India

  10. obaidahmad says:

    whether an insurance company(if a deutch) cover medical nd hospital expenses outside the country?if a person took a life insurance policy from a deutch company and took the pateint to india where the policy holder dies then will they settle the claim of outside deaths??plz suggest asap

  11. Leesha says:

    i want to purchase two term plan from two different company is it possible?
    should i go for with disclose option / non-disclose option with the second company?
    which is better in terms of claim settlement ?
    one is LIC and other is private company.

    1. YEs its possible . Just mention that you have applied for another policy in parallel and there should not be any issue

      We can help you get this policy properly. We can connec you to our trusted partners who will assist you fully on this.

      Just fill up this form https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

      Manish

  12. raju says:

    Lets say some X Person bought insurance policy with two nominees Y AND Z with share split of 50% and 50% to each of them. If X and Y died in the same accident does Z person get the 100% Insured amount or only 50% amount please clarify

    1. Z gets notified about the full amount !

  13. Mubasheruddin says:

    Hello,
    My cousin has died in KSA, I am also working here, can I get policy to my cousin children of 15 yrs with LIC, is there any plan like that.
    Pls. explain
    Thanks

    1. Hi Mubasheruddin

      I can see that you are thinking of buying a term plan. ALl you need to do is leave your details at https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

      Our team will get in touch with you

      Manish

  14. kamal kant says:

    i want to purchase two term plan from two different company so please sugguse to me is it possible?
    and there will be no problem in future and claim settlement ?
    one is LIC and other is private company.

    1. There wont be any issues, just go ahead !

  15. Ashutosh says:

    Hello,

    How will disclosure of myself being overweight but non-smoker and non-drinker will affect m premium.

    Thank you

    1. Hi Ashutosh

      It will affect your premium because then you will be treated as a more riskier customer compared to a person who is more healthy.. And thats how it should be

      Manish

  16. Dharmender says:

    Hello Manish,
    Pl I want rider with one of kotak policy, is there any rule for no rider for Nigeria or like country.

    1. Yes it might happen that a company has imposed that restriction !

  17. Rashmi says:

    Hi Manish,I read your blog, it’s very informative.. My husband is shifting DRC(Democratic republic of Congo) in next twenty days. Before that he was in Nigeria for four years.right now he is on in India. He wants a term insurance plan from Indian company. Can you pls suggest a plan or company who covers risk across the globe ..urgent..

    1. Hi Rashmi

      I can see that you are thinking of buying a term plan. ALl you need to do is leave your details at https://www.jagoinvestor.com/solutions/buy-life-insurance-plan

      Our team will get in touch with you

      Manish

  18. Vik says:

    I am 38 yrs old and underwent Angioplasty in 2007. Does any life insurance company in India provide life insurance to persons like me? Which one is more suitable

    1. I think it will be very tough to get life insurance from any company now !

  19. Rajganesh says:

    Dear Sir, Whether income tax is applicable for payout amount in case of death to the policy holder ?

  20. Sornarajan says:

    Dear Manish,

    I have a question.
    Premium for Online term Plan with LIC (for example) for 1 crore cover is 40000/- and 25000/- if it is through Max Life (for example). Suppose both the companies sold 10000 policies in a year, How these companies are able to manage the claim settlement?

    How these variation in premium is possible to manage the show?

  21. Ramana says:

    Hi Manish,

    Yesterday only I came to know about your website and read all your blogs.. Its very informative and thanks for that.

    Currently I am working In Australia and my age is 29 years. I am planning to take two online term insurance policies for 30 years tenure.

    First one is 50 laks in LIC and other one is 50 laks in HDFC or ICICI with riders like Critical illness and disability benefits.

    I have couple of queries on this.. Could you please suggest me on this.

    1. is it good have two term policies?. I was thinking to take 1 crore policy in LIC but it doesn’t have any extra riders thats why i am planning to take other policy in HDFC or ICICI.

    2. I should be in India to take policies for LIC and HDFC? or can we apply online and submit the documents?

    3. Let me know if any other good term policies which includes rider like critical illness, disability

    1. You can surely split the policies,but 1 crore is not a big money now a days . Take it form just one company.

      I can see that you are also interested in HDFC click2protect and I must tell you that we have special tieup with HDFC for our readers.

      Incase you are interested in HDFC , then just fill up https://www.jagoinvestor.com/services/life-insurance

      1. Ramana says:

        Thanks Manish for reply..

        I am interested in HDFC click2protect policy with riders. Just one query, right now I am in Australia and will come to India in one or two months, is it compulsory to be in India for this policy?. or can i apply from Australia?.

        once you confirm then I can fill details in your website for HDFC policy

        1. You can apply for it from Australia itself and tell the HDFC people that you would like to do medicals when you are in India. Coordinate with them for that.

          You can fill up the details on our page and we will connect you to HDFC guys . They will take care of your requirements and any further questions. Just filling up your data means that we are connecting you to them. You can still not buy it from them if you wish later 🙂

          Manish

  22. Chandeeswararao says:

    Hi , Iam going to buy pure online term plan for 1 crore

    I enquired and finalised two companies Maxlife and HDFC

    Out of these I interested in Maxlife because the premium in HDFC is more

    so can u please tell me that ihad choosen the best

    or can u tell me wat are disadvantages in maxlife when compared to HDFC

    1. We suggest HDFC here. If you wish we can connect you with the team we know and they will take care of you..

  23. Chandu says:

    Does drinking alcohol occasionally, say once/twice an year, count as drinking habit for the Term insurance?

    1. Yes, Once a smoker, always a smoker is the policy adopted by insurance companies !

  24. Ravi says:

    Hello Manish,
    I am 37 years old,would like to buy term insurance for 1cr upto 35yrs.
    PNB Metlife mera term –around 13K CSR-92.9%
    ICICI PrudentialiProtect Smart – Life –around 18K CSR-93.5%
    HDFC Life Click 2 Protect Plus –around 18K CSR-90.5%
    Can you please suggest to chose,

    Regards,
    Ravi

    1. Hi Ravi

      We suggest HDFC out of all these, because we have seen and met with HDFC team and we think they are doing a great job in this space. Also would like to share that we have a special tie up for our readers. Do you want us to arrange a call with HDFC, they will take good care of you?

      If yes, just fill up your details at https://www.jagoinvestor.com/services/life-insurance

  25. Rakesh says:

    Hello Mr.Manish,

    I have purchased a new HDFC traditional saving plan and am already having two more LIC policies.
    Do I need to declare to LIC and HDFC both regarding my sum assured or not.
    None of the existing policy is a term insurance policy.

  26. monu says:

    namaskar manish

    mujhe bachpan may fites mirgi padtay thay abhi mei sahi huu kya mujhe term plan kiss company kaa lena chaiya. or jo mujhe claim bhi milaa. or insurance company ko is kay bara may batana chaihay

  27. Yogendra says:

    Dear Mr. Manish,
    Information provided by you is very useful.
    I want to ask you about nomination of policy.
    I am planning to buy PNB Metlife Mera Term Plan ( 1 cr Cover ) and want to make my foreigner wife( Indonesian ) as nominee.
    Please tell me can I make her my nominee. We have registered our marriage in India under Special Marriage act.

    Thanking You,
    Yogi

    1. You can make anyone as nominee ..

  28. Baskaran says:

    Hi, I had taken an online term plan for 25L 5 years back. It is due for renewal now and I have to pay Rs. 16800. When I checked their online portal the premium for 50L is only Rs.18700. So, should I discontinue the 25L policy and go for a new policy for 50L as it is only Rs.1900 additional cost?

    1. Hi Baskaran

      Yes, you can do that now

  29. yash says:

    i am a heart pasint .so i can take term plan of Max Life insurece my age 55 n working

  30. Sharanya says:

    Hi Manish,

    Very informative. Was shocked to know a claim is not payable when caused due to natural calamities.
    My query is that after one year, my Fiancée is planning to study abroad and if he gets a job there will continue to stay there and i will follow suit. He is 28 now and I am 25 . Is it ideal for both of us to take a term policy now. we already have a couple of endowment plans from LIC and FG. Please guide.

    1. Hi Sharanya

      Yes, you guys should take up the term plan now. Its not true that term plans dont pay in cases of death due to natural calamities. Most of the policies pay . Its a complicated point and I would rather not go in details. But dont worry for something which is going to not happen in 99.99% of times .

      Manish

  31. rajendra says:

    Hi Manish.

    Thanks a lot for such nice informations on Term policies. Appreciable…!

    My age is 33 and my wife is housewife. Her age is 31. I have 4 year daughter.

    I am planning to buy HDFC Term policy. I have one doubt. I have strong medical history with my family. My father has heart problems. He underwent 3 angioplasty. My mother died due to stomach cancer 12 years back. I already quit smoking before 3 years back. I drink alcohol locationally. So I am in doubt that HDFC will allow me for term policy with this medical history. Is there will be high premium amount for 50 lacks SA for 20 years. If possible please arrange any executive for this HDFC term policy.

    Thanks in Advance…!

    Rajendra.

    1. Hi Rajendra

      Just fill up this form and we will arrange for a call back – https://www.jagoinvestor.com/services/life-insurance#fill-form

      Manish

  32. Prateekk says:

    Thank you Manish sir for the valuable information you have shred with us.

    Here lots of questions have been asked about the claim settlement Ratio. I am not much worried of it, since i am confident about my declarations (in the proposal form).

    My question is : What if an insurer company itself fails in the insurance market, how will my claim be settled? Does IRDA take responsibility to settle that genuine claim.

    1. It does not happen like that. If a company fails (which is almost impossible) then a new company will always take over its business !

  33. PKD says:

    Is death due to critical illness, like cancer is covered under term insurance policy?

    1. Yes, every death is covered !

  34. Basmat says:

    Hi Manish,
    One more query: If broadly classified there are two types of term insurance, 1. Term isurance with mandated medical checkup needed 2. Don,t want to have a medical checkup needed (shown as an advantage in print media). Which category is good ?

    Any advantage /disadvantage: In terms of claim settlement stage any issues?

    I am 31 years old and when checked for 50 Lakh policy for 25 years,

    pnb metline (without medical check) and max life / HDFC (with medical check) are on same price range +-500/-, which to choose for a basic term plan.

    Also in mouth shut reviews, get to hear that once medical check is done company tent to increase their premium rate citing some irregularity in medical reports.

    Please help me what to choose ?

    1. Go with the one with medicals !

      Company will raise premiums only if there is some serious issue, else not !

  35. Abraham says:

    your article has been very informative. i had a comparison between icici and hdfc term insurance. in case if something happens to me, icici has only the option for lumpsum or regular or increasing income payout whereas hdfc has the option of lumpsum + regular or increasing income payout. can u pls provide more clarity on this?

    1. What clarity you need ? Ask exact question !

  36. mymailmn10 says:

    in addition to these points, Sir, another common question is till what age term insurance is required. i saw an article in mintwise which says that we do not need term insurance after age 60. here is the link, sir.

    https://www.mintwise.com/blog/term-insurance-policy-age-60/

    the point is convincing but i wanted your view on it please.

    also please tell me if we should buy single claim policy or income claim policy, or even combo.

    thanks in advance.

  37. Paritos says:

    Hi Manish,

    I am looking for a term insurance , I am 37 year old non smoker having wife and a kid . My current employer gives 40 Lakhs of death benefit . Is it advisable to take a term insurance on my own outside .

    Can you please suggest which company provides good term insurance policy . I am confused when i see review of them . I need the insurance company which is good in terms of claim settlement and easy claim settlement steps . Please suggest . Your help is highly appreciated .

    1. HDFC is a good term plan .. you can go ahead with them . Let me know if you need our help in this .We can schedule a call for you with HDFC on this

      Manish

  38. Rakesh says:

    Hi Manish,

    i have taken two term plan last year(AEGON Religare iTerm Plan & Aviva i-Life Secure) i just came to know that their Claim Settlement Ration is not good, is there any portability options in Term plan to shift to other policy.
    if not then what are the things i should check to make sure that my dependents don’t face problems at the time of settlement.
    God forbid if some mishap happen in few years(3-10 years), will my dependents would get the Sum assured or part of premium paid.

    Regards,
    Rakesh

    1. There is nothing like portability in term plan. However I would suggest you that if you had not lied anything while taking the term plan, then you dont have anything to worry about .

  39. Raj says:

    Hi Manish,

    I am planning to go to US for MS in fall’16 (July-Aug 2016).
    For that, I will be taking a loan of around 30 lakhs from the bank putting our house up as collateral.

    Would you recommend me to buy an Indian term insurance policy? OR international?
    Also, any other suggestion or advice you would like to give me?
    Thanks in Advance.

    1. You can go for indian term plan if you plan to return back in few years !

  40. Aakriti says:

    Sir,
    i have recently quit my job as i have married an italian citizen. it might be a couple of months before i move to italy. should i take a term insurance for these couple of months?

    1. I think it does not make sense to do that !

  41. VikasLalwani says:

    Hi Sir,

    I have taken a term plan from ICICI and the name of the policy is ICICI Pru I care II. I bought this policy through policybazar. At that time I asked them benefits under suicidal claims. They mentioned that the sum assured will be paid if the suicide is committed only after one year of the policy commencement and policy has been active.
    if the Suicide is committed within one year of the policy taken than only the premium amount that has been paid would be refunded back to the nominee and the policy would be terminated.

    Today I called them to check if its true.. so the agents and the supervisor, themselves were not aware of the procedure.
    Could you please throw some line on this process. Suicide after one year of the policy enforcement.

    Regards,
    Vikas

    1. What policybazaar mentioned is TRUE !

  42. jayendra says:

    Hi Manish,
    I’m 30 yrs old and planning to go for Edelwise Tokyo “MyLife+” for 1 Cr+ as it provides maximum cover of up to 80 years. I know that their claim settlement ratio is around 80-85 % which I think is still ok as I’m assuming
    (and also happy to take that risk) that if at all my nominee has to ever claim, it would be a normal claim and not early claim.

    No other policy would cover me for more than 75 years of age, which is well under the average life expectancy.

    Is there anything else that I should reconsider before finalizing the ET MyLife+ ?

    Awaiting your response.

    Many Thanks,
    Jayendra

      1. jayendra says:

        Many thanks Manish, that answers my question.

  43. dylan says:

    Hi, am trying desperately to buy an international life insurance policy. many insurance companies have turned me down cause of my place of employment (currently Nigeria). is there some solution to my problem? are there any international insurance companies who would oblige or dollar insurance policies ? Thank you.

    1. Hi dylan

      Thanks for asking your question. However we do not have answer to your question.

      Manish

  44. Anurag says:

    Hi Manish,

    I am looking for a term plan for 1 Cr with maximum cover in terms of tenure. I am 27 currently. Please suggest which plan should I go for considering that I want reliability in terms of claim settlement.

    Thanks

    1. Truly speaking you take any term plan .. but I have found HDFC does a very strong underwriting and checks .. You might want to fill up the form here https://www.jagoinvestor.com/services/life-insurance and we can help you with HDFC term plan incase you are interested in that.

      Else you can buy the other company plan ..

  45. Manish says:

    Hi Manish,

    I want to invest/buy an police worth Rs 70-80K yearly for self spouse and son.
    Please suggest me the companies and plans and the bifurcation to invest/buy the policies.
    My age 34, Spouse 32 and Son 2 years old.

    1. HDFC Click2Protect plan !

  46. Madhusudhan says:

    Hi Manish,

    Can I buy pnb metlife mera term plan. Pls clarify that, will my claim be settled in case of my death in road accident, while working in my company(refinery-hazardous area). Pls reply asap.

    1. Yes, you can go with it

  47. Roy says:

    Hi Manish,

    I am 38 years old.
    I was a smoker and quit smoking 3 years back.
    While applying for LIC e-Term, I got confused whether I should be considered a smoker or non-smoker.
    So I sent a email to LIC and asked. They advised me to apply as non-smoker.
    While filling the application, there was a question “Are you a smoker or have you ever smoked, how many cigarettes per day”? . I answered “NO” thinking that I am considered non-smoker so this question is not applicable to me.

    Now I realize that this was a mistake. even though LIC advised me to apply as non-smoker category, I must have answered “YES” here because I was a smoker previously.

    Now what are the options I have? (I have purchased the policy in February 2015. SA is 50 lakh )

    1. Can I contact LIC and modify this declaration ( I am ready for change in premium).
    2. Can I cancel this policy and apply for a fresh one? Will LIC allow that?
    3. Can I discard this policy and purchase another policy from HDFC or SBI? In this case should I declare about this LIC policy when I apply in HDFC or SBI?

    Thank you in advance.

    There should be some online chat agent or somebody to help clarify these kind of doubts when filling the form Otherwise it would be better to go with offline policy because the agent will guide you while filling the proposal. (just my thought)

    Thanks,
    Roy

    1. I suggest that you should contact them now and ask them if it would be considered or not

      Manish

  48. sudheer says:

    Hi Manish,

    I am 28 years old, unmarried and have dependent parents. i have decided to take term insurance, after some research zeroed on HDFC term insurance.My query here is will the bank gives term insurance money to my nominee if something happens to me, i heard people saying banks wont give money showing some reasons. Also can i take term insurance with riders, i saw some financial planners advising not to combine riders and term insurances.Could you please clarify both of my queries.

    1. There is no such issue, you can safely go with term plan and just make sure you honestly give all information about yourself , health and job . Thats all !

  49. AtulArora says:

    Hey Team,

    I have one Query regarding Term plans.. !!! What if a customer buys a Term plan and if God forbid if he meets with an accident and become physically handicap (Perm. or Temp) then Is he bound to update Company ??? If Yes, would they change his premium Amount..??? I mean will put Loading charges !!!! kindly reply asap…

    1. No he is not bound to update the company

  50. Kumar says:

    Hi Manish,
    My HDFC protect plus insurance in proposal stage for more than a month. I have chosen 50L policy with add on riders the premium was calculated about INR 12516/.After i went through the medical test,HDFC claims that based on medical report it was increased to INR 21506 .HDFC simply sent a link to either accept of decline the rateup proposal.I am keep on asking them to provide the medical report to refer and told them that there may a issue inthe report and i would like to go for a medical test on my own.HDFC is not ready to send medical and keep denying for it. Do i have rights to ask further or where should i complain to get the medical report.HDFC customer care support is simply useless and they keep sending the default mail. You help is highly appreciated.

    1. No company gives medical report unless you accept the policy . they will share the reasons on rate up and why it happened, you are free to go for your own tests .

    2. Avinash says:

      Same thing happened with me. I applied for click2protect plus from HDFC for 1 Crore cover with 13k+ premium per year. I went through Medical Test. And after Medical Test, HDFC guys are telling me about rates up due to Sugar level in Medical Test. I dont have sugar/diebetic history in my whole family free. This is all setting between Pathology labs and HDFC. I reverted back my proposal.

  51. Rohan says:

    Hello,
    Do we need to inform the change in job (non hazardous) and change in annual income to the insurer?
    I have a term plan purchased last year by submitting 2 years ITR as income proof and last year my salary was Rs. 25,000 per month. But in April 2015, I left working to study for competitive exams.

    1. No ,you dont need to inform the insurer about your changes after you have taken the policy

      Manish

  52. shyam says:

    Hi,
    Sir,

    I am 35 year old and i want to take a term plan, so please suggest me which is best in following

    HDFC LIFE
    BHARTI AXA
    PNBMETLIFE

    THANX

  53. Puneet says:

    Hi Manish,

    I am planning to buy a term insurance plan of PNB Metlife (Mera Term Plan- Lumpsum+Increasing Monthly Income) for 1 Crore as Cover Amount. I searched on Google and found that Claim Settlement Ration is 92.9%. So, is it a good plan to opt for? Suggestions??

    Also, I am curious to know in case of death, do companies/govt. deduct any tax on claim amount.

    E.g. For a 1 crore cover, will the nominee get the same amount or there will be tax deduction? Please clarify.

    One of my friend told that tax would definitely be cut first (30%+10%+3%) and then remaining amount would be provided.

    Please clarify.

    Thanks,
    Puneet

    1. Govt does not deduct any tax on the claim amount. And you can safely go with this company. Just make sure you are honest while filling up form

  54. Vicky says:

    Dear Sir,
    I am a Marine engineer and i would like to take a term plan. I will be working away from India for 6 months and sometimes i will be at home for one year and i am planning to file the I.T returns from next year.Now my question is since my nature of job is little risky will my premium be loaded under some special condition? And also in some financial year i will be NRI and sometimes No.Will i be considered as a NRI or Indian resident?

    1. Yes, it might get loaded as you are into a risky job ! . Nothing wrong with it. Pay it up !

  55. harry says:

    Hi my age is 63, can i buy policy….does there are any special rules at my age….
    like special exclusions….PNB Metlife is providing a plan….but before buying i want to clear doubt , thts why i asking

    1. YOu can take it , but who is financially dependent on you ? For whom are you taking it ?

  56. Maulin says:

    Dear Manish,

    In case of the insurer take the insurance now and settle abroad after 5 years, become citizen of a country e.g. USA then later age when he dies, ( offcourse he paid premium all the yrs)

    will his nominee gets the sum assured on showing death certificate from other country? what’s the time frame to claim such thing after death?

    Regards,
    Maulin

    1. Yes, insurers will accept the death certificate of other country also .You should ask for the policy money as soon as possible and if there is a delay you should be able to give sufficient explanation for that delay !

  57. DipakGandhi says:

    Is there any income criterion for buying the term policy – like one can buy insurance only 15 to 20 times of his income ? can I buy term insurance for any amount ( within the maximum limit of company ) even if I don’t have required income to show on record ? Please guide.

    1. No you cant. Only some X multiple of your incoem is allowed !

      1. Ajay says:

        Hi manish.I am in software job in india. Any idea what is this X amount..is this fixed by irda?

        1. Vijay says:

          Yes you can go upto 8 times of your annual CTC

  58. Jayashankar says:

    Hi Manish!

    Good Day…

    I am basically NRI working in Nigeria for the past 13 years. I am 49 years old and my annual income is 30 lacs per annum. Basically non smoker and no chronic diseases. Every year undergoing for general check up as it is mandate for the company I am working. I am covered with Mediclaim from India and by the company. Have ulip plan and pension plan worth 75 lacs.

    I would like to go for a term insurance for 1 crore and would like to know I am eligible for term insurance and is Nigeria cover for term insurance by Indian Insurance providers.

    Regards,

    Jayashankar Nalode

    1. Hi Jayashankar

      It might happen that some companies might decline you term cover. Let me do one thing, let me connect you to my HDFC contact point and he will help you on this.

      Manish

      1. Jayashankar says:

        Dear Manish!

        Thanks a lot for your prompt reply and timely help..

        I appreciate.

        Regards,

        Jayashankar

  59. kshitij says:

    Dear Manish,
    thanks for sharing such valuable info.
    I am willing to purchase term plan.My annual income is 7.5 LPA.I am 28 years non smoker,non drinker.Should i go for 25 year or 30 year term?What may be an ideal SA for me? I have selected some companies viz LIC eTerm, ICICI iProtect, SBI eShield, HDFC Clik 2 Protect plus, Aegon religare &MAX Life (in decending order of premium amount per anum). Please suggest me the best one. Also should i go for single policy with say 1 Cr SA or with two different policies having SA of 50 lakh each?
    Waiting keenly for your reply.

    1. Hi kshitij

      You can go for 1 crore term plan in a single policy !

  60. satya says:

    Sir,

    I purchased term plan from HDFc insurance Office relationship representative. .he collect all my require documents. .but some of the things he won’t feel up even after disclose by me….
    -My height 5’9″ he wrote 5’8″
    -No identification marks ..I have
    -My existing LIC policy
    -column regarding any family doctor who looks during last 3 month…he wrote no permanent doctor. ..though I was fully fit and not visited any doctor during 3 mnth time of purchase of policy
    -family health before age of 62…no one were in BP or any disease. ..so what if someone have in Family after purchase of policy

    kindly suggest…should I disclose through a mail to Hdfc …for future reference

    Regards
    satya

    1. It was not filled up mainly because your agent wanted the details to look as if there wont be any rejection of policy . Better contact the HDFC and tell them about it

      Manish

  61. Prasad Naik says:

    Manish, I have couple of life insurance policies and Term insurance Policy , In future incase of my death my Family claim both , Is it possible to get my Claim settled from both of them ?

  62. Lakshmi says:

    If i am alive after 75 years , then how this term policy benefit for me & my family..,

    1. Its not for that. its taken for the situation if you die !

  63. Swapnil says:

    Thanks for the information, but one thing is not clear that if we have multiple term plan and investment plan for life cover do your family member will get all the benefits of all the policy (Multiple term plan and multiple investment plan).
    Also I would like to know the place where we can verify this information.
    Thanks in advance….

    1. Yes, you will get it from all places. No need for verification ..

  64. krishgudd says:

    Hi,

    I am an IT employee and my wife is not working.Can we take Term Insurance for my wife. As per my knowledge term insurance is only for Working employees. Is there any insurance companies provides term insurance for dependents.

  65. sundaramurthy says:

    hey my question is …Is it mandatory for an insurance company to settle the claim if the policy holder has regurly paid the prmiums for continuously three years and the death occured after three years??

    1. THe claim will be paid irrespective of 3 yrs or not . The only criteria is that one should have not cheated the insurance company by providing some wrong info at the time of buying the policy

      1. sundaramurthy says:

        hey manish,

        thanks for your reply.
        my question is …even if we provide some wrong information like a smoker saying that he is non-smoker, is it mandatory for an insurance company to settle the claim if the death occurs after three or four years.

        1. No , if you have lied on that . Then the claim will be rejected

          1. sundaramurthy says:

            how do they know that i am already a smoker at the time of policy taken. because that i could have developed smoking after i have taken policy. you have answered in your 9 important questions that i need not inform the insurer if i have turned as smoker after taking policy.

            Appreciate your answer
            Sundaramurthy

            1. There are medical checks regarding that . They can figure out those things ..

            2. sundaramurthy says:

              1.do the family members need to inform the insurance company before going ahead with funeral process of the insured?
              2. If yes and if the family members dont know about the insurance policies at the time of death and later came to know about the policies then how to claim them by their dependents
              3. If production of original death certificate is sufficient to claim insurance, in this case how does the insurance company know that the insured is a smoker or had some health issue at the time of buying a policy?

              thanks
              sundaramurthy

            3. 1. Definately..

              2. I dont know about that

              3. Yes, but only if its not accidental dealth . If its accidental, then a FIR is also required

  66. GIRISH says:

    Hi Guys,

    Some really helpful information here. My query is that I am 35 years old and took 1Cr Term Plan from HDFC (Click to Protect) 3 years back at a premium of 14k PA (i was 32 then). Now i wanted to increase my SA and realised that the same 1 Cr. Term Plan from HDFC costs me 13k PA and from Max Life at 11k. I am a little surprised and confused here as due to increase in my age, the premium should have been much higher, isn’t it ?

    In such a case what is advisable, should I stop my old policy and buy a new 2 Cr policy or continue with the old 1 and add another policy of 1Cr..Please advise.

    regards

    Girish

    1. Hi GIRISH

      The premium has come down over last 2-3 yrs due to better mortality rates. I think for such a small difference you should not change the policy.

  67. Jitendra says:

    Hi Manish,
    Thanks for informative article. It’s very important subject & wish people understand it.
    I have a query. When I took the term plan, I was told that maximum cover that I can get depends on my income.
    Is there any condition for taking term plan for house-wife?
    Though she is not earning person, lot of house-hold things including finance are handled by her. And family may not be financially dependent on her but emotionally sure it does.
    Can you please provide details / any conditions applicable for term plan for house-wife?
    Thanks,
    Jitendra

    1. JItendra

      yes, the income matters . Generally a housewife who has no income cant get the term plan or very high cover because no one is financially dependent on her.

  68. Alpesh says:

    Hi Manish,

    I am planning to buy term insurance, googled a few and finally boiled down to HDFC Extra Life Term Plan (with accidental rider) which provides double the sum assured in case of accidental death.
    The policy term for HDFC extends till 40 years. My age is 28 years. I am planning for 1 cr insurance for 40 years. Should I go with this plan? Or are there better alternatives for the same? Should I consider splitting my term insurance as there’s always a fear of rejection.

    Thanks,
    Alpesh Rathod

    1. You can go ahead with that Alpesh

  69. Harsha says:

    The Reliance Term Life plan brochure says the following.. What does it mean?

    In the unfortunate event of demise of the Life Assured during the policy term and
    provided the policy is in force as on date of death, the nominee will receive the
    maximum of
    Sum Assured; or
    10 times Annualised Premium; or
    105% of the premiums paid as on date of death, excluding underwriting extra
    premiums, if any
    The policy will be terminated once the Death Benefit is paid.

    Thanks!

    – Harsha

    1. Whats not clear in that ? Which line ?

  70. Rohan Kumar says:

    Hello,

    I am a 28 year old smoker and a regular drinker ( i am trying to quit ) do I qualify for a term insurance
    a) Should i prefer Term insurance or i)go for accident and health insurance ii) Endowment policy iii) normal Insurnace , if yes then which companies ?
    b)If i take term insurance what are the info i should provide to company and documentation to ensure that if claim is there it can’t be refuted(on grounds of current drinking and smoking grounds)
    c) Taking the health check as per Insurance company and paying the premium installments for term insurance , and i still continue(smoking drinking) will i Get claim incase of death (assignable to any serious disease due to longer addiction)

    1. a) Go for Term plan anyways . Health insurance is a seperate product, its not related to term plan. You should any ways go for it. There are many companies you can look at , but one suggestion is HDFC, We have a HDFC agency, incase you are interested, let me know and I will connect you to HDFC Person.

      b) Just make sure you give all the info correctly, what ever is asked

      c) Yes, you will still get it . Just make sure you dont hide any facts

      Manish

  71. Shivakumar says:

    I thank the author for not being one sided. LIC plans by default cover the life of policy holder from Terrorism Attack and also from Tsunami/earthquake. LIC was the first to pay for Uttarakhand disaster and Lathur earthquake.

    FRIENDS, open your eyes before it is too late. Don’t make your nominees run from pillar to post for claims.

  72. Vikas says:

    Dear sir
    I have purchased lic e-term is it cover death by accident and suside???

  73. Amol Magar says:

    Sir, can term insurance companies put an extra load in intallment for diabetic person,is there mandatory to enter im a diabetic ,I am 29 years old, who will pay the medical exam charges ,in term insurance

  74. Sachin says:

    Dear Manish Sir,
    Me and my wife both took iLife term plan couple of year back. While filling the form I was not knowing that my father had already taken LIC policy for me and he was paying premium for that . Also I missed to list that policy because I gifted this policy to my wife and I was unaware of that .
    So we missed to disclose these details in the proposal form. So my questions here are 1. If I communicate these LIC policy details to Aviva then will they accept that .
    2. Will there be any problems during claim settlement because of this.

    Request you to guide me in the same regards.

    -Sachin

    1. Hi Sachin

      1. Yes, you can mention it to them and they will accommodate the request

      2. No

      Manish

  75. kamalkk says:

    I’m looking forward to a term plan and online option looks good to me as its a hassle-free process. But I’m still not confident that buying term plan online is a good decision or not. Is there any disadvantage of purchasing term plan online?
    Which is the best company in settling the claim in timely manner with an easy process. I’m a non-smoker, non-drinker and earns around 9lac/A. Also, what is the maximum SA I can opt for with my current financial condition. I do not own any other term plan insurance.
    Any suggestions are welcome? And yaa…this forum is great and people have lot of knowledge. Hoping someone will help me on this. Thanks in advance!

    1. When you say “Online term Plan” . All it means is that payment is done online and form is filled online . Nothing else changes . the medicals if any has to happen offline only. So dont think that its very different.

      If you wish, we can help you in HDFC term plan.

      Manish

  76. Raj Kumar Sharma says:

    Dear Manish,
    If I take term insurance policy and I die due critical disease then will it cover and my family will get sum assured or not ? Also I am suffering from Hepatitis B. but now DNA is negative.
    Kindly advice.

    1. It will cover, but I think if you already have the illness, you wont get the policy in the first place !

  77. Mihir says:

    Hi Manish / Advisor,

    I have seen very lucrative bundled LI, Accidental, Critical cover, Premium waiver offer on Aegon Religare website…

    1) Should I go with this company, is it good in settling claims and trustworthy?
    2) Should I go for a Plain vanilla term policy for easier claim settlement for my nominee on death?…
    or the option 1 kind of policy is good?

    Mihir

    1. Hi Mihir

      Which policy is that ?Can you share that

  78. vikrant says:

    Hello Manish,

    Thanks for sourcing all this information and keeping AAM AAdMI aware.

    My quey is, I bought a Birla Sunlife Dream Plan with an Enhanced sum assured of around 50lacs back in 2007. The premium I’m paying is Rs.12800.I was not that informed about the policy that time(I was only 23), but now what I understand its an endowment plan. Is it as good as any Term plan or do I need to buy a pure term plan to suffice my Life insurance cover.

    Thanks,
    Vikrant

    1. I think its not as bad as you think it is 🙂 . First get another term plan and then think about surrendering this

  79. Ganesh S says:

    Dear Manish,
    Nice article. Thank You.
    Please suggest:
    Looking for term plan of sbi smart shield 50 Lac with CIR 5 Lac and APTDBR 40 Lac (Permanent and Total Disability rider). ADR of 20 lac is taken seperately
    other from LIC 6 lac anmol jeevan
    Please suggest

    Thank You

    1. Whats your question ?

      1. Ganesh s says:

        Dear Manish,

        Thank you for your reply.
        Looking to take term plan please suggest is it ok ? or i can opt for other.
        trying to cover riders with pure term plan
        Married 30 years old 1 child
        1. SBI smart shield 50 Lac with CIR 5 Lac and APTDBR 40 Lac (Permanent and Total Disability rider). ADR of 20 lac is taken seperately from SBI .
        2. LIC 6 lac anmol jeevan
        3. 25 Lac online term plan of KOTAK

        Thank You
        Ganesh S

        1. Yes you can go ahead with these

  80. swapnil parikh says:

    Hi,
    A doubt about point 5 “What if a person becomes a smoker after some years of taking the policies ?”
    I have taken a policy of 75 Lac (non smoker /non drinker) and my medical was done. Now my policy also cover suicide.
    If in future I turn smoker or start drinking will I still need to inform policy provider? Since they are already covering me for suicide as well what is the need to inform?

    If so do you mean if post taking a policy I developed Cancer disease, I should inform policy provider?

    1. Hi Swapnil

      Actually it was a mistake on my side . I have corrected this point in the article .Thanks for sharing it !

  81. Hi Pavan

    Have you bought your term plan , I can connect you to the right company

    Manish

  82. Pavan says:

    Hi, Which is the best online term plan available with following features
    – Good claim settlement ratio
    – Covers Accidental death
    – Having flexible riders (can be added after taking policy)

    BTW, thanks a lot for such a valuable information on this website.

  83. Saurabh says:

    Hey Manish,

    I have one quick question if Term insurance,LIC,Health insurance etc taken in India well before one became NRI .Does they remain valid after status changed to NRI ?
    Does this has to be informed to insurance company ? Will they revise the premium ?

    thanks in advance !

    1. No , you can surely become NRI , but its a good thing to mention about it to them . They will not change the premium

  84. gaurav says:

    Can an Indian Resident living in India with own business in India, buy term or investment plan linked with insurance from other country like china, hong kong, japan etc & pls suggest is it good idea (My foreign friend suggested me to take it)
    If No – whats the reason
    If Yes – What are the formality.

    1. I dont think its possible , because generally companies given it only to residents of their country . It does not make any logical sense to buy a insurance from a company in country A , whereas your are a citizen of country B and also living in country B !

  85. Sandip Patil says:

    Hi manish,
    I hav read almost all above but still i have few doubt regarding term plan;
    1- How it works/or how we can change SA when our income growing yr by yr?? can we restructuer SA or any oth option.

    2-When some one private guy lost his job and die aft that how much will this term plans pay??

    3- Gaps in income earning(job lost) will affect sum assured becuse these are long term policy.some doing job after random gaps case.

    4-How crtical illness rider works in term plan(how benefits).On what ground besis we can say we need to take CI.

    5-Total/partial diability covers with ADB or we have to take seprate rider.

    6-which insurance cos providing term plan with ADB + CI

    7-Online insurance policy is good or not,can we trust new private cos for same.

    1. 1. You cant change the SUM ASSURED Of an existing policy , you can only take a new one !

  86. Raju Nallagopala says:

    Dear Sir,

    Now that LIC has launched its online term insurance plans, it would be of great help for your readers like me if you could post your reviews and compare LIC’s eTerm plan with the other term insurances available online.

    Thanks,
    Raju

  87. gaURAV says:

    YES YOU CAN

  88. Papia Mandal says:

    Hi Manish,
    My Husband died on Nov-12,having three LIC Policy.Policy was made before marriage. My mother-in-law is nominee of all policy.She did not make any claim till now because she has no death certificate,but she does not want to give me anything.Can i receive anything from this policy if i claim & submit Death certificate,Marriage certificate? I have two minor child(Twin) of two years old & have no income. If possible ,Pls tell me the process i have to go through.

    1. sanjay says:

      do court case and send aletter to lic benefit of minor child

    2. chinthub says:

      Papia, yes you can. But before that, one important question. Did your husband leave a WILL behind? If so, things are much easier. If not, still you can get your share. I understand that you have the death certificate in your custody. Thats good, but even if you don’t have it also, you can get a copy from the muncipalty or corporation office, or taluk office depending on where you are located.

      Below mentioned are based on my very limited knowledge. It better to consult and advocate for the same and correct details.

      Coming to the point, what ever financial benefits are left behind by your husband can be claimed by yourself, legal kids, your mother-in-law (widow) and unmarried or widowed sisters-in-laws (if there are any) for share if no WILL is registered. To process the claiming, you might first need heir certificate, which your advocate can help you to get it. If you have a ration card that will make things much easier, or else you can get a letter from TAHSILDHAR OFFICE. Once you have the heir certificate, remaining process would as usuall for all further proceeding to claim from the insurance.

    3. You and mother in law and your 2 children all have equal rights in those policies , so you all will get 25% each . You can approach bank with death certificate and also meet a lawyer who will assist you !

      Manish

  89. AVHIK KAR says:

    I am a marine engineer and i work in merchant navy. I want to have a term insurance of 1 cr or 50 for 20 years. I am 31 years old and smoker . how much is the premium

    1. Depends on company .. try their online calculator !

  90. Arjan says:

    Hi Manish,

    I came to know about your website only recently and glad to see such rich content of discussions regarding financial awareness. I have a few questions about term and health insurance myself. Appreciate for your guidance.

    I am an NRI since last 6 years and most likely will remain so for next few years. When I was in India I opened a LIC Term policy in 2005 for 15 lakhs; which I currently consider much inadequate ( Although I have few other insurance policy but pure risk term policy cover is very less) and want to take up another term insurance policy. However it seems there is hardly any option to subscribe such term policy online and open for NRIs. Appreciate to know if you have any suggestions in this regard.

    Besides I am planning to buy accidental death and permanent disability cover. It appears not many term policy is covered for accidental death and there is much scope for better cover if I buy a separate cover for accident and permanent disability. Tata AIG Accident guard seems good as it gives good cover with low premium. Kindly let me know if you have any feedback on this.

    Finally any suggestion for critical illness cover.. Easy to get confused with too many choices currently but I want to take 10 L cover for Critical illness for myself and family.

    Many thanks,

    Regards,

    Arjan

    1. For any term plan you will have to be in india for medicals , you cant just do everything online . Yesterday only the LIC ONLINE Term plan is launched . Have a look at them

      http://www.jagoinvestor.com/2014/05/lic-online-term-plan-eterm-review.html

  91. Sankalp says:

    Hi Manish,

    Very informative article.
    1) while judging a company’s term plan what factors should be kept in mind (i.e Company profile and expertise) and where to get information regarding claim settlement percentages company wise.
    2) Criminal deaths murders related claim settlements are they in IRDA guidelines for term plans.
    3) Buying online is as good as buying offline infact better in my opinion ?
    Thanks in advance.
    Regards
    Sankalp

    1. 1. Your trust level with the company

      2. Yes

      3. Yes .. it saves you premium money !

  92. Babun says:

    Dear Manish,

    My present employer is proving one trerm insurance plan of 1 Crore to me. But I am interested to take a personal term plan of Rs 1 Cores also, because the present term plan will not continue, if i resign from my present employer in future.
    Q.1. Do i need to mention the present term plan when i am buing a personal one, if i resign in future from my present employer?
    Q.2. If I do have both the term plan, will my nominee get total 1+1=2 Cores of rupees in case of my death?

    1. 1. NO , any term plan for which you are not paying premium should not be counted and informed to next insurer

      2. YEs

  93. maria reen says:

    if when i take a term insurance i am employed in india — then after some years i take up employment abroad — will the term insurance hold good still— what are the problems —–especially with regard to bajaj allianz—– i quote from their faq

    ”.I am a non-resident Indian (NRI)/ Person of Indian Origin (PIO), Can I buy eProtect Plan?
    eProtect Plan is available only for residents of India. We have other plans which can be purchased through our advisors for NRIs & PIOs.”

    in bajaj allianz—in their faq—it says –if you are vacationing for more than 100 days abroad they have to be informed—- please elaborate.

    1. In that case, YES – if you are going abroad for more than 100 days, then better info them !

  94. Debajyoti Bhattacharjee says:

    Dear Manish and Dhawak,

    Very important and useful information provided by you which is very helpful to all. I have the below queries:

    1. How many term insurance I can buy for myself and upon my death will all of them be liable to pay the SA?

    2. I am an NRI for last 5 years and in all probabilities will remain so. But my country of residence will change. Do you still think I can be denied Term insurance by Indian Insurance companies?

    Thank you in advance.

    1. 1. You can buy any number of term plans and all will pay you .. but you need to always inform the new insurance company about your old policies

      2. You might be .. just make sure you answer all their queries and things which are asked in FORM , and then they will decide if you are eligible or not !

  95. Sachin says:

    Dear Manish,

    I want to buy a 1 cr Term insurance plan for my wife. She has been working since 1 year. Can you please let me know following
    1) Is it required to work at least 3 years (to produce 3 years ITR) to get a policy of such high sum assured
    2) Is it fine to go with Private companies i.e. any companies other than LIC including SBI Life

    Thanks for your help.

    Regards,
    Sachin

    1. 1. Yes at times companies want to know about your INCOME .. and ITR is the valid proof for that. so they might ask for that !

      2. Yes

  96. KETAN SHAH says:

    Dear manishbhai

    My age is 40 years. (i.e. Birthdate – 21/6/1974)

    In past, my father has taken money back policy, i have paid last premium in 2013. Now on maturiy, i will received maturity amount in 2018.

    I have also take policy of my two son komal jiven. Now, I want to buy term insurance. Iam getting Rs. 5 Lac per annuam. Please advise me, how much amount, i have to cover & from which company, i have to take policy (LIC or Private). If private then, which one is best.

    Please also advise me, how i take new policy online / offline. (Is their any risk to buy policy by online).

    If iam crossing the age of 40 years, is their any change in policy amount.

    On your reply, i will take policy.

    Ketan shah

    1. Hi Ketan

      When you buy new life insurance policy, you have to declare all OLD policies to NEW company . you should take your policy for sum assured equal to 300 times your family monthly expenses . that would be sufficient for them , so if its 20,000 per month expenses, take 60 lacs of term plan .

      Take a online term plan directly from company website , make sure you give all the correct info about health, thats all you need to do . Good luck !

      1. KETAN SHAH says:

        Dear Manishbhai

        Thanks for your reply.

        Now, what is your advise to purchase insurance from Private or LIC. As i read in above post, that LIC charging more premium & their is no major issue in private insurance co., which is the best in terms of less premium & good management.
        Awaiting for your feedback.

        1. I would go with Private !

  97. Mohammad Nadeem says:

    hi Manish
    again nadeem
    manish i want to buy an accidental policy for one or two years with permanent disability cover of more then Rs 1 Cr
    please tell me which one is good for my needs

  98. Mohammad Nadeem says:

    Hello Manish
    i am 28 years old
    and i have accidental policy by hdfc ergo about 20 lakh and another one from sbi for 2 lakh both this i buy when i had open an a/c in these bank

    sir i want to know can i buy one more
    and i had polio in my right leg ,in some case some thing happen to me or in any accident i lose my any part of body like my polio defected leg or my other leg or both or both hand
    can this company pay me claim
    because one verry sprichual person told me that in next one or one and half year
    i should die or i loos a part of my body for this time i am in very big tension please help me my no is 8802895358

    1. Hi Mohammad

      Yes you will get the claim if something bad happens, but please do not believe anyone who tells you that something bad can happen in future . One cant predict anything like that !

      Best of luck

  99. Mayank says:

    Hi Manish,

    One question. If I buy a term insurance now as an Indian citizen and if I later change my citizenship, will the India term insurance become invalid? I know it can continue if I become an NRI, but not sure of above point.

    Thanks!

    1. I am almost sure that it will not be valid if you change your citizenship .

  100. hiralal says:

    Hi Manish
    I’m 36 year old. If I have 4 different LIC policies, Jivan Chaya, Jivan Ankur, Jivan Sathi and Jivan Anand. In case if i dies, can all 4 policies pays the death benefit?

    Hiralal

    1. Yes, they will all pay the death benefit , but the bigger question is – IS IT ENOUGH for your family ?

  101. hiralal says:

    Hi Manish,
    I am 36 year old. I Have 4 LIC policies, Jivan anand, jivan ankur, jivan chaya and Jivan sathi, in case if I died, are the lic is paid deth benifit for all 4 policies?

  102. Sam says:

    Hi Manish,

    I would like to buy Max Life Insurance term plan for 50L to cover my liabilities. What is your opinion on Max life insurance?

    1. I would suggest you go for more talked about one’s like Aviva, HDFC or Kotak !

  103. Swapnil says:

    Hi Manish/Dhawal,

    What do you think about the new term plan launched by Aviva iLife Secure, where they don’t pay the entire sum assured at once, but it is given in following manner.

    1. Lump sum Benefit – to be paid out immediately :10% of your Sum Assured
    2. Annual Income – for the next 15 years : 6% of Sum Assured.

    So if i have a policy of 1 Crore, then my family will get 10L as lumpsum benefit, and 6 Lakh every year for next 15 years. But considering inflation etc reasons, do you think 6 Lakh will be enough for the family in later years (e.g. 10th year onwards)? Or should one stick to traditional term plan where entire 1 Crore will be given at one time itself?

    1. Its a good plan overall with good feature . Just that the premiums will incorporate these points !

  104. Swapnil says:

    Hello Manish/Dhawal,

    At the time of claim settlement, I have heard many times nominee does not get the entire amount of cover, but only certain percentage of it. Is is true? Does the claim benefit depend on some other factors such as age at time of death, current income of policy holder etc?

    Swapnil

    1. This cant happen . A nominee has to get the full amount . The only case can be when there are 2 nominees and the policy holder has asked to give teach 50% 50% or some other ratio !

  105. munish singh says:

    My question is that after taking term insurance if some thing bad has happened with the insurer. To claim the insurance a what formalies should be done by nominee to get claim. As most of the house wifes are not very much aware about this.

    Plz give your answer on this issue.

  106. Siddhartha says:

    Is there any problem in claiming term insurance amount, if the person has defaulted or stopped any other insurance policy in his lifetime?

    1. No , there is no impact on one policy because of other policies. Each one has separate existence and are not inter dependent !

      Manish

  107. VIVEK says:

    Dear sir, i need a advice with you,i am 34 year old male,a public sector navratan company employee have annual income of 6 lacs,i have two kids ( Both daughter)i have 2 ulip plans of private companies which i have taken 6 years back, and 1 LIC traditional plan taken 12 year back,total sum assured with these policies is 8 lac only with no critical illness or any other rider, A very serious concern with me is i have been on anti anxiety drugs for last 10 years(not disclosed earlier with any insurer) and totally depend on these,this keep pinning me always,kindly give guidance to me is there any option so that i can go for a term plan for high insured value aroung 50 lacs,so that i can give financial protection to my family in time of need.

    1. When you took those policies , were you suffering from this problem and shared it with them ? If not , please do !

      Also when you take new term plan, you will have to mention it to them . It would depend on companies if they want to give you a term plan or not !

      Manish

  108. vinod says:

    hello Manish

    i am 34 years old. non-smoker. my annul income is Rs 2,60,000. i am having a pension policy from ICICI. I am having home loan of Rs 9 Lakh. now i am planning to take a term plan for 30 years. i am having 3 dependents (my wife and 2 children, aged 3 and 1 1/2 years respectively). now i am planning to buy a term plan for 30 years for Rs 50 Lakh. please suggest best term plan that suits me.
    with regards
    vinod

    1. Aviva and HDFC Click2Protect are good options

      1. vinod says:

        thank you Manish

  109. Ashok Goyal says:

    Dear Manish,
    Your article is valuable guide for the younger generations to read in between the lines as you have covered most of the riders inserted by companies like ICICI Prudential or other Private Companies. Solvency of the Insurers and their balance sheets with % age of unsettled claims not in numbers but in terms of value is more important as it will effect the solvency position of the insurer company. While taking the policies the consumers sould also take a written commitment about of office and place as to where the policy will be served. If the insurer closes its offices in the city of the insured and asks to visit head office like Bombay, Bangalore, New York or London for even petty surrender cum maturity claims then the insured would like to forgo the claim then to visit distant places where the expenditure incurred will be more than either the surrender value or maturity value. Read the experience of a retired chief manager of a Bank as per link below and while insuring the insured must take firm commitment for getting serviced the Policy at least in City of your Origin, where policy is issued and the Company subsequently closes its office leaving its insured customers high and dry:
    https://www.google.co.in/search?q=icicipru+testimonials&oq=icicipru+testimonials&aqs=chrome..69i57.9343j0j7&sourceid=chrome&espv=210&es_sm=122&ie=UTF-8#es_sm=122&q=icici+prudential&lrd=lrd

    1. Can you give me the exact link ?

  110. Ashok Patil says:

    Hi Manish,
    I am planning for life cover + investment .
    After reading your review on Jeevan Tarang, I’ve decided to go for separate policies for Insurance and Investment.
    Amulya Jeevan (LIC) for Life and PPF (SBI) for investment. I hope my decison is correct.
    I am 35 yrs old. My requirement is 5oL after 15 years from PPF and 50 lacs life cover for 30 yrs.
    EMI comes to 1.5L+18k per annum resp.

    But have below queries:
    1 – Here I read people taking separate policies for Disability/Critical Illness/Accidental Death. Doesn’t Amulya Jeevan cover all this?
    2 – I am out of India, would visit India just in vacations. Is ther any problem taking the Term Insurance?
    3 – Do you have some other advice.

    1. 1. Yes, it does not cover all this, most of the term plan are plain cover insurance
      2. You will have to be in India when you take term plan
      3. Nothing more

      1. Dr.S. Chidambaram says:

        Respected Ji
        I would like to take term insurance policy through online in any Nationalised banks. To Whom should I meet / contact/ or to directly apply for the same?As the agents are discouraging the same online payment mode I seek your humble advice regarding this. Chidambaram.

        1. You should just contact customer care of online term insurance companies. visit their websites and you will get the contact details

        2. ICICI Prudential says:

          Dear Mr. Chidambaram,

          Do assess your needs before you decide on the cover amount. You can use our online calculator to access the ideal life cover: http://bit.ly/12UdTxU

          You may consider ICICI Pru iCare, our online term plan which can easily be purchased online and allows you to get a cover of upto Rs. 1 crore without any medical tests. To know more visit: http://bit.ly/15pbB0V

          Regarding claims, we are committed to honor all claims quickly and fairly. In its annual report for FY12 by the industry regulator IRDA, ICICI Prudential has a healthy claims acceptance ratio of 96.5%. You can access the report by clicking http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearLayout.aspx?page=PageNo1848

          Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

          Warm Regards,
          Life Insurance Help
          ICICI Prudential Life Insurance

  111. Ashoka.T says:

    Highly appreciate the site.
    The no. of question and answers truly reflect the popularity and utility of this site.

    To start with my knowledge of insurance is very limited.

    I thought of a Term policy for life cover.
    The Term policy is for 45 year old male, non-smoker, insurance cover of 1 cr. for 20 years period.
    When I searched on the net, I found the following.
    LIC – Amulya Jeevan – Premium 71,200 / annum.
    SBI e-Shield – Premium 31012 / annum.
    HDFC Term policy 25,300 / annum.

    What surprised me is the huge difference in premiums. What is the catch in this?
    For a common man, this is highly confusing. Kindly give your advise.

      1. Ashoka.T says:

        Hi Manish,

        I read the link. It is a good one explaining about the insurance business and various type insurances and why premium is different for different persons. It is quite clear.

        My question is about 3 different companies giving widely different premiums for the same person for the same terms of insurance. It is understandable, if the premiums are within+ or – 10% . In this case, it varies from 25K to 70K / year.

        If possible, please answer.
        Best Regards

  112. sanjay singh says:

    sir, i recently purchase LIC term insurance policy. premium is about 6900 per yr… but insurance agent is also one one more document from me. he want me to submit my ITR form of last two year saying that it is nesscessy if insurance amount is more than 3000000….

    I want to know is it necessay??? or for what purpose he is asking???

    1. Yes, it can be neccessary !

  113. Vishwas Joshi says:

    Manishbhai,

    I smoked once before a year, so as per insurance companies: 1) I am non smoker or smoker. 2) What should I mention while taking policy.

    1. you will be considered SMOKER

  114. Mihir says:

    Hi,

    Still I have quetions
    1. How the claim settlement ratio is calculated.? Is rejected claims count anywhere?
    2. Can you tell hidden reason for which the claim can be rejected.
    3. We have 10 options before taking policy. but suppose if we have taken one policy and then developed some illness and we report it then the company may charge unrealistic premium also and if we don;t then they may stop the policy , any way consumer is at loss
    is there any way forward.

    I have one car insurance got rejected just because of some documentation error at their end. it was tick for CNG in my car.

    Do such thing happen in

    1. 1. Its total claims settled/total claim recieved
      2. If you cheat them by hiding any information at the time of taking the form
      3. No it does not happen that way, you dont have to report any illness after taking the policy, I am talking about life insurance here.

      Also, if you feel something is not justified, you should complain to IRDA on this

  115. Brijesh Kumar says:

    Hi Manish,

    Mate I might sound funny or stupid but it seems a genuine question to me, i got a call from *** Ins. company offering a term insurance for a good Sum Assured saying that ” Sir Suicide is also coverede after 1 Year”. If you have something to share on this please.

    1. Yes, Suicide is covered after 1 yr in all term plans . Thats right

      1. Gyanesh says:

        I got the question .

        We need check with company on that some company does not support .

        For example If you are driving without helmet .. This is not cover .

        Please correct me If I am wrong …

        Just Check any other clause like that .

        Thank you very much for your post .

        1. No its not like that

  116. ajay says:

    Hi Manish ,

    I am 38 years old and want to go for the term insurance for 30 years for an amount of 2Cr, I am thinking about SBI or Kotak, Which one you think is better in claim settlement also premium wise , LIC is just 2.5 times than other , Is there any additional benefit in going with LIC? I am diabetic and under medication , When I spoke to agents from kotak , they told as you are diabetic the loading will be 100% , is that right? I mean what is the normal loading for a diabetic patient?

    1. Yes . If you have this diabetis , then you should be paying loading , around 100% more for sure .

      Manish

  117. ss kubrey says:

    hi manish, i am 39 yrs old and searching for a good term insurance policy, i am bachelor yet want to know that is term and condition as for as change in nominee is concern, can i change or add the nominee in future?

    1. You can change the nominee anytime in future . Do not worry on that . Take aviva or HDFC

      1. ss kubrey says:

        thank you for responding quickly and giving your valuable advice to me.

        thanks again.

  118. saravana rajesh says:

    Hi Manish

    Recently i have joined in 100 Actions plan and i’m working on it. Really!!!!!
    I saw the info that death in natural disasters / terrorist is not payable by insurance companies. I feel bad on this. I understand the background why they deny but i feel this as a loophole. Nowadays apart from diseases death possibilities are through terrorist attacks alone. How they can deny.?? Any latest developments in this regard???

    1. Saravana

      Its not that all companies do that, Some companies pay on that.

  119. Shiva says:

    Im the fan of JagoInvestor. 🙂 and I like the artciles here @Manish (I remember this name). Thanks for this post. Im planning to take 1 term policy soon.

    I should not stop myself in leaving a comment here when I realize I am at 100th comment….since I started reading this artcile.. 🙂

    Thanks Manish for your time in resolving our queries.

    1. Glad to hear that Shiva . Keep commenting once in a while and have conversations 🙂

  120. saurabh says:

    Hi Manish,

    I want to but a 50L + term & plan but I am actually confused between LIC and private players as LIC reputation settlement ratio is higher which is coming at almost 4 to 5 times higher premium.How pvt players able to manage so low premium compare to LIC ? Even among pvt player I can lot of premium variation .It looks a simple policy/insurance with no such twist and turn so for me it should be same premiums,Isn’t it ?

  121. Naresh says:

    Hi Manish,

    I am 45 working in Pvt. Bank. My gross Income is 12 L. I have liability of Home Loan of Rs. 45 L with instalment of Rs. 35 K .(No term plan to cover Home Loan is taken) I have surrenderred endowment plans recently and willing to opt Term Plan of 50 L preferably from AVIVA. I live with my wife (house wife) and two kids persuing study in graduation and secondary school . I drink once in a year and smoke too that time. Seek your advice
    1. Am I considered as smoker and alcohalic
    2.Is 50L term plan is good
    3. Should I opt term plan till the age of retirement (15 years from today) or to the age of 75 years

    Regards
    Naresh

    1. 1. There is no clarity on this from life insurance companies, as far as I know they follow the rule of “once a smoker/driker” , its a smoker/drinker only.

      2. You need to tell me that what your family will do with 50 lacs once you are gone

      3. Yes, only till retirement

      1. Naresh says:

        Thanks Manish.

        Purpose of 50 L is to repay Home Loan , that is biggest and only liability I owe.
        I was paying 60 K towards Metlife which I have surrendered as it was covering only 6 L. So out of this 60 K i wish to divide in term insurance and PPF/MF

  122. Naresh says:

    Hi Manish,

    I am 45 Years and recently discontinued endowment LIFE Plans. Annual Income is 13 L ad I am carrying a Home Loan of Rs. 45 L . I am with my wife (Non working) two kids , one in graduation and othr in secondary school. I drink once in a year and somke too that time.I planned fr Term Plan for 50 L peferably from AVIVA. Should I opt term plan till the date I am working or for longer duraton say 30 years . Because I dont want to put a burden ofmy premium to my kids in future

  123. Akash says:

    Hi Manish

    Thanks for your valuable inputs.
    I am an adventure enthusiast and planning to take online term insurance.
    Does companies provide insurance for person involved in High Risk Adventure activities.
    If yes, which companies?
    Also,can you please let me know companies providing permanent disability riders.

    Thanks,
    Akash

    1. Yes they can , but your loading will be higher .

      1. Akash says:

        Then in that case what do you suggest?
        I have also heard of general accidental insurance.
        Should i take term and general insurance both?

        1. Yes, you can go for seperate one ‘s .

          1. Akash says:

            Thanks a ton Manish.
            🙂

  124. N Vijayakumar says:

    Hi Manish,
    Realy your article is very very good and given a good idea about Term Insurance.

    My Question here is :-
    1) What is the differenece between taking policy thru online and offline.
    2) When I checked in online the premium amount difference is too much btw ICICI and Aviva.
    For example . SA 50,00,000 Term 30 years . ICICI :- 12191 / Aviva :- 5069

    Thanks
    Vijay ( vijkum22@yahoo.co.in )

    1. 1. Online has cheaper premium

      2. Yes, depends from company to company

  125. Achut says:

    Dear Manish,
    I am planning total 1.5Cr term insurence where in 1Cr from Aviva and 50Lacs from Bajaj Allianz with ADB rider(which is also providing premium weiver incase of permanent disability). However the base cost of Bajaj Allianz iSecure it self is quite high(double that of Aviva) however the rider premium is not that significant. So the overall cost of Bajaj is coming high. Is there any other company provides the premium weiver rider for disability in lower overall cost for 50lacs of SA & 24Lacs of Accidental Disability? Based on my serched, I could only find Birla SL term policy which provides similar rider, but overall cost is very much high as compared to Bajaj. Kindly suggest. Thanks

  126. Niranjan says:

    Hi Manish,

    If I take a term insurance policy today as Non smoker, Non drinker, not having any disease, & lets say after some years I diagnosed that I have something like BP or diabetes or any other disease. Please let me know 1) Should I inform it to insurance company? 2) Will they increase the premium after I disclose it?
    Thanks.

    1. You dont have to inform the company afterwards for anything , thats what INSURANCE means

  127. aggy says:

    hi manish
    thanks for the great information
    i am a military, fighter pilot….
    -age 28 yrs
    -health- no problem,
    -accidental death risk- yes quite high
    ….can u please suggest me a policy that would give me max accidental death coverage vs premium ratio

    1. Go for Aviva or HDFC , but the issue is that when you will mention about your job profile, your premium will be increased as you will not be considered as a normal customer , as your job has high risk attached

  128. Manan Vora says:

    I wanted to know how there is such a big difference between the policy amounts of each of the companies offering term policies. Aegon Religare offers the one of the best policies at Rs. 7300 whereas LIC offers a general one at Rs. 33600?

    1. Yes, thats because of the way they calculate premium and the data they use which is available to them about the historical deaths (mortality tables) .

  129. VINAY says:

    Sir Manish ji ,
    I want to know that i take the online term plan, i see the 2 low premium of insurance company Bharti axa & aviva in both company Bharti axa have low premium. I want to know that is this safe to take Bharti axz online term plan, this bharti axa company is good claim ratio and Solvency Ratio. According to you which one is best for online term plan. please tell me to find out good term plan, my annual income is 232000/- last fin. year so tell which one is best

    1. You can go ahead with Bharti Axa

  130. Raja Bhattacharya says:

    Recently i’ve bought a online term plan from Bharti Axa e-protect of 25 lakhs upto age. Is this plan is ok? My annual income is 2.0 lakhs, can you sir suggest whether i should continue with this or go for any other ?

  131. ketan jain says:

    Dear Manish ji,
    My DOB 21/03/1975. I wanted to buy term insurance. I am afraid of Companies other then LIC . Can you pls guide me for best policy for term insurance for age upto 70 yrs or above and why ?
    Reg
    ketan Jain

    1. You can go with Aviva, if you do not trust other companies other than LIC , it would be tough for you to go ahead then

  132. K C Rana says:

    Hi Manish,

    Thanks for your articles and for your suggestion which I have taken in other fields.Now I want to have your best tips in insurance field.I am a recently married 28 years old non smoker and want to buy LIC’s term insurance Amulya Jeevan of 25 lacs for 30-35 years.I have following questions:
    1)Should I buy the policy for 30 years or 35years?
    2)Should I make single payment or yearly payment for the policy?
    eg if I go for onetime payment it will be 1,32,600 for 35 years.When I visited JagoInvesor calculator with 9% interest it shows the values as 27,06,892 ,which I think is quite high than if I pay the premium on annual basis ie 9125*35 = 3,19,375 for 35 years .
    3)Associated to above question ……Will my premium remain same ie 9125 for this policy ie Amulya Jeevan.
    4)How can I avail the policy document?
    5)What will be the impact to sum assured if I die due to illness :
    a)which occur prior to policy period.Actually I have gone through ear surgery for heavy discharging around 2 years back.Though I think its not a major problem…The situation is ok ok ie discharging very very slowly…..I sometime use ear drops and some tablets for this
    b)which occur during policy period.
    6)Should I buy any health insurance in addition to it?

    Thanks & Regards,
    Krishna

    1. You should choose a yearly payment plan for next 30 yrs only .

      1. k c Rana says:

        Manish Sir….Thanks for your kind suggestion….
        Wish you and your family a Happy and Prosperous Holi :)…..If possible can you please also suggest for other queries.

        Regards,
        Krishna

  133. vivek says:

    Hi Manish

    i have an NRI status but keep coming to india …I need the best policy with rider covers ( ADB , critical illness ) etc and i can easily done the medical checkup in my homer addrress in india .
    I am willing to declear that i am an NRI , will there be an problem by declaring that ???
    also ,i am at marginal suger increate (type 2 diabetic)…which is the best term insuranbce plan for me ,specially this have been seen that the term insurance is rejected for diabetic people…plz respond at the earliest as only i am for next 5 days in india

    vivek

    1. You will have to declare about your status and in that case you will have to take a offline term plan , not online term plan .. due to your diabetes , your premiums will be high too

  134. Deepa Dixon says:

    I read the following in an article… and I wanted to know if all insurance providers offer this facility coz the agent I spoke to did not have information about this…

    “What is successive nomination? Successive nomination means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law. “

    1. I am not sure on this then . I just checked google and seems like a lot of companies offer this option , You have to directly talk to company to ask this.

  135. Jubin says:

    Great blog Manish !! Extremely helpful 🙂

  136. Deepa Dixon says:

    Hi Manish,

    Is successive nomination allowed by all insurance companies in India?

    1. Yes, you can change the nominees later !

      1. Deepa Dixon says:

        Sorry, my question was not clear… I read the following in an article… and I wanted to know if all insurance providers offer this facility coz the agent I spoke to did not have information about this…
        “What is successive nomination?
        Successive nomination means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law. “

  137. Deepa Dixon says:

    Hi Manish,

    I’m looking for a term cover of 1cr. LIC’s premium is thrice the amount of HDFC. Is there any benefit of going with LIC with a three times higher premium?

    1. If you are too scared with pvt companies, going with LIC will give you a good sleep . Thats the benefit I can think of

      1. Deepa Dixon says:

        Thank you for your quick response. I’m going ahead with HDFC or Aviva 🙂 Please do let me know if there is a better option.

  138. Akhilesh says:

    Hi Manish,
    it was really very informative blog, however i have a question
    I tool term plan in year 2008 from LIC for sum 25 lac, and now i’m working in Australia. So do i need to infor LIC about this, as i have become an NRI. my contract is for two years, but i’ve not decided whether to extend it or come back to India. my age is 29 yrs.
    Thanks

    1. Yes its a good idea to just inform them

  139. SUBHADIP ROY says:

    Currently I am unemployed, can I too buy term plan?

    1. I dont think it will be given to you

  140. SUBHADIP ROY says:

    Currently I am unemployed. Still can I buy a online term plan?

  141. satish says:

    Dear Manish,

    Thanks for maintaining this blog so well & upto date. Request your advice for the below requirement:

    Age – 39 Y, Income-25 Lakhs / year, Existing coverage – 25 Lakhs – Life & 1.3 CR – ADB

    Would like to take coverage as follows:

    1) Term Insurance – Life – Rs 50 Lakhs from LIC Amulya Jeeva -> To cover Natural death
    2) Critical Illness – Rs 20 Lakhs from HDFC Critical care -> To cover the risk of critical illness
    3) Disability -> Rs 1 CR from New India Assurance. However, they said the max coverage for ADB is 72 times the monthly salary by any provider. I won’t be eligible as I already have 1.3 CR ADB

    My questions are:

    1) Is this a right approach?
    2) Am I covered by all risks or any loop hole?
    3) Any trick in critical illness policy. Do they honestly settle the claim or is there any clause I should focus before investing
    4) Is there any aggregate cap of 72 times monthly income (SA from all providers put together)?

    Thanks in advance.
    Regards,
    Satish

    1. You plan looks good to me .. just go ahead with those policies and what ever max you can get .

  142. SATISH says:

    Dear Manish,
    Got to know many details on term insurance after going through this superb blog
    Request your guidance for selecting good policy. My annual income is 25 lakhs. At present I have a term policy for 20 lakhs and another policy for 5 lakh. ADB coverage is 10 more lakhs. My age is 39. I am planning to take the following:
    1) ADB Coverage from New India assurance – 72 times monthly income – 1 CR – premium 10 K
    2) Critical Illness policy from HDFC Critical care – 20 lakhs – premium – 20K (tax benefit 80D ~ 6 K, so net is 14K)
    3) Term Insurance – LIC – Amulya Jeevan – 50 Lakhs – premium – 23 K

    So, with a premium of 47 K, I can get all the coverage. The reason for such a selection is LIC is not providing ADB & CL and to take HDFC policy with all the riders is costime me about 52 K that too with limited coverage on critical illness as against a comprehensive critical illness coverage like Critical care plan
    Post above policies, my situation looks like this:
    Regular life cover – 50 + 20 + 5 = 75 L
    ADB Death – 75 L + 1 CR = 1.75 CR
    Disability – 10 L + 1CR = 1.1 CR
    Critical Illness – 20 L
    Kindly let me know your views on my thought process

    1. I think you are on right track, only thing is it will be tough to get a ADB cover of that high amount .. Also I need your life cover should be high . Is 75 lacs enough for your family for whole life ?

      1. SATISH says:

        Thanks Manish for your quick response. Planning to increase the life cover to 80L (overall cover will be 1 CR)
        Regards,
        Satish

  143. rajesh says:

    If i have 2 Mediclaim policy of 2 different companies and in case of sudden death during the policy term, will both of them will pay total sum assured to my kin.

    1. Does it cover death ?

      1. rajesh says:

        Yes it has death benefit.

  144. Saravanan says:

    Hi Manish,
    I just took a term insurance from aegon-religare.

    I have a question , what if the company closes its operation in india, will it settle all the premiums we have paid? What is the risk involved?

    1. Can you share your rational behind this logic ? Why will the company pay back all the premiums ? They had covered you all these years right ?

  145. 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 ?

    Thanks,
    Neelesh

    1. Anindya Ray says:

      Neelesh,

      Its better to take insurance when you are insurable.
      Who knows after 5 years down the line you will at all be insurable ?
      You may get some health issues or any other, anytime which in turn will end up , you as uninsurable!

      Take as much insurance as you can get, now. Then increase you insurance every 5 years accordingly if possible.

  146. Prakash says:

    Hi Manish,
    I am planning to go for a Tearm Plan of 50 Lacs, which one is the best in the market in terms of Premium, Claim settlement rate & Stability of the insurer. If in case I decide for a rider for major illness, how much extra do I need to pay as premium?

    Thank you in advance.

    Best Regards,
    Prakash

    1. There is no one plan which can fit in this requirement. You can go for options like Aviva, HDFC or Kotak

  147. Vishal Jain says:

    I have taken a term plan from 2 companies. First was with Kotak and 2nd with Metlife. While taking policy from metlife i have provided information about my existing policy with kotak. Do i need to inform kotak as well about taking my new policy with metlife.

    Thanks and do you have any workshops in kolkata?

    1. No you dont have to inform OLD about the new ! , we dont have workshop planned in Kolkatta

      1. Vishal Jain says:

        For making a policy paid up, do we have to inform the company or we can just stop paying premium and it will automatically be paid up? Also while taking a new policy we have to provide information about policies only for which we are paying premium or details of those also which are paid up.

        Thanks

        1. Vishal

          It will be automatically be made paid up if you stop the premiums, however nothing stops you from informing them with a mail that you want to make it paid up ! .. You always have to inform the NEW insurer about OLD policies at the time of buying it.

          1. Vishal Jain says:

            Do i need to inform about policies which are paid up also.

            1. Yes. all the policies !

            2. Vishal Jain says:

              Thanks Manish. I have checked all my policies and I have found that in some cases details of all existing policies at that time has not been given. What should I do. I have been paying premium for them for more than 2 years now.

            3. You should check with the insurer about it and inform then . Mostly they should be able to take up this request and add this information on their side, without affecting anything .

            4. Vishal Jain says:

              Thanks a lot.

            5. Inform the new company now about the old policy .. they will incorporate that information !

  148. rahul says:

    hi manish,

    i am a doctor age is 30yrs would like to buy a term plan…but no idea which is best..
    one of my friend doc advise me go for iterm of religare….
    but i dont know no anything about this company and whats its claim settlement ratio..

    appreciate you could provide any knowledge and advice on it….

    1. You can go with any company , just make sure your information is correct. you have other options also like HDFC or Aviva !

  149. chandrakant bankar says:

    sir, i m diagnosed with brain tumour in Jan 2013. i want to take term insurance policy from lic or hdfc life. can i get term policy ?

    1. I am not sure if they will give you, you can try once

  150. Namit says:

    Dear Manish,

    Good job you doing!!!

    Currently here in India and planning to take a term insurance, however say 5 years down the line you move to a different country and become a citizen of this new country, can you still continue with the insurance and post notifying your provider will the premium change?

    If you have to close the same will you get your paid premiums back?

    Regards
    Namit

    1. I am not sure if you will get the insurance cover if you are not an indian citizen. Its term plan, so there is no question of getting back your premium.

      1. Namit says:

        Hi Manish,

        Thanks for the reply. Checked with Aviva, citizenship matters while taking the insurance and the insurance will continue but have to inform them about the movement ensuring premiums are paid on time, also settlement will be done only on indian address and INR. And as you rightly said nothing will be paid back since its a term plan.

        1. Good to know that 🙂 . Know see what makes sense in your situation !

  151. riya says:

    Hii,

    I want to know how can insurer pay 50 lacs / 1 crore for such low premiums explain with example. Do they really pay S.A to nominee?

    1. You are not then not clear about the insurance as a concept. Its like this .. lets out of 1000 people in a given year the chances of a person death is just 0.2% .. so out of 1000 , 2 people will die in a year on an average . Now these 2 families need 50 lacs for their family in case they die, But they do not know who are those 5 people who will die . So you need 1 crore to help these 2 families . Right ?

      there comes insurance company . They will charge Rs 15k from each family as PREMIUM for 50 lacs cover, so the total amount collected will be 15k * 1000 = 1.5 crores .

      In order to collect the premium they have a lot of costs , suppose 20 lacs is the total cost , then out of 1.5 crores, the amount left is 1.3 crores . Now suppose 2 people die here .. So the insurance company will pay 50 lacs to their families and 30 lacs will be remaining . .this is will profit of the insurance company .

      Now in a given year the number of people who die can vary from 1,2,3 or 0 .. at times 4 also .. so thats the reason why Insurance companies need to factor in all those things in premium and in a long run they will make profits !

  152. Pranay Sharma says:

    Hi Manish,
    Just need your quick advise:

    I am 25 yrs old.
    – I have recently taken an Aegon Religare term insurance cover of 1Cr. + Accidental & Critical Illness Riders
    – Am planning to book another 50Lacs policy from LIC by the time I am 30 and surely by then LIC premium will also get down…once they revise the mortality data and launch online products.

    Am I on the right track? I am usually outside India for most part of the year….travelling for I.T. projects. Would my claim be paid if something unfortunate happens when I am outside India?

    1. Their rates will come down , but because your age will be high then , you will pay mostly the same amount as of now or may be higher .. Yes Term Plans pay for deaths outside India !

      1. Pranay Sharma says:

        Manish,
        Thanks a lot for your prompt response.
        I think, I should add a LIC policy to my current portfolio! 🙂

  153. jagmohan says:

    Recently i purchased aviva -i life term plan.In policy document they not given that which type of death is covered in aviva -i life but on my query they replied me via email that it covers natural disaster like earth quack, volcano, tsunami also .
    whether it is correct. i have doubt about it as people are telling that no company covers natural disaster.

  154. NANDKISHORE says:

    Dear Manish,

    I have taken Home loan from SBI for 15 years , 55 L.
    Is it mandatory to take life insurance policy from SBI only. I am interested in Terms insurance policy from any agency. Can it be attched to current SBI home loan insurance?

  155. Shankar says:

    Hi Manish,
    Great article on term insurance. I would be happy to see that you covered every aspect of term insurance. I think you can also talk about “Married women’s property act” as most of the people think that nominee gets the money always. We know that creditors gets the share first, remaining as per the WILL, if no WILL then it goes the legal heirs. Here the nominee just a person who entitled to receive the money but could NOT use them.
    Since most of us won’t create WILL that easily while in good health, it is better to get the policy under “MWP act”, then the insured amount will goes to wife and Children ONLY(should also be a nominee). This I believe supersedes WILL , legal heirs and creditors. Even court cannot do anything on this insured amount (if it is under MWP act) . So even if the deceased person has 1 crore in debt and his insurance amount(under MWP act) is 5 crores, even court cannot do anything to settle the debt from this insured money.

    One catch is we have to ask for insurance under MWP act when we open the policy (during proposal stage). I have bad experience with Online policy where there is no option given about this act in their application form and once the policy is issued they are saying that they cannot modify it. Luckily since I am in free look back period requested them to make this change, still awaiting their response.

    Hope this helps!!

    Thanks,
    Shankar

    1. Yea .. i am aware about it .. once you get it done please mail me with what happened and how you got it done !

  156. Ravi Kumar says:

    a very very thanks manish sir…….

  157. Ravi says:

    hi manish sir,
    i have plan to buy a term plan pls.tell me which is the best in aviva,aegon religare or hdfc life…my cover is 50 lakhs only.

    1. Go for Aviva or HDFC ..

  158. Abhijit Buchake says:

    Hi Manish,
    I have a doubt.

    I have taken term insurance from Aviva in which they asked me to declare if I have any other insurance policy (Endowment/ULIP). I declared that I have a ULIP from Kotak and an LIC policy.
    But now, I have have discontinued my Endowment policy from LIC as it is in initial stages and returns are also not lucrative in long term.

    Do I need to inform the Insurance company (Aviva in my case) that I have discontinued the LIC policy?
    If I don’t inform, will there be any problem in claim settlement due to this in extreme situation?

    Anyways, I was surprised to here that Term plans do cover deaths outside India. 🙂

    1. No , you dont have to inform them about discontinuing the old policies ! .. nothing will happen 🙂

      1. Shankar says:

        Hi Manish,
        I would say better to inform about the old policies too .. if I remember correctly Aviva asks if I ever took or has any policy. In my case, I mentioned all policies and near to the policy name mentioned whether I closed it OR planning to close it.

        1. Yes. .thats one of the thing you have to do !

  159. Anshul Dixit says:

    Hi Manish,

    Very helpful article that cleared a lot of my doubts. Thanks! 🙂

    I have left you a message on Facebook, you might have to look in your ‘Others’ folder.

    1. Thanks Anshul .. let me check that

  160. Sanjay Sharma says:

    Hi Manish

    thanks for this artilce it contains all the information about insurance.
    want to know how do i know if i have mentioned other insurance or not in my policy

    have different policy with different companies, is there any way to get this done

    currently have policy with

    LIC, Tata Aig, Birla sunlife

    thanks

    Sanjay

    1. Sanjay

      YOu can contact the customer care of respective companies and ask for this information

  161. Abhishek says:

    Hello,

    I have term policies from Kotak and LIC totalling to 75 lakhs. In one of LIC policy they have charged me more premium as my cholesterol report showed high during that time (around 3 years back). Now I am 31 and planning to buy another 50 lakhs of term plan through online policy. Will I get online policy when I mention that I have exisiting policy with more premium? or Will I have to go for medicals again. My total income is around 12 lakhs.

    Thanks, Abhishek

    1. You will have to go for medicals again and based on your information , obviously your premiums might increase once agian. but its always a good idea to give it a try once !

  162. Sumit says:

    Hi Manish. A nice post indeed. But the comparisons are somewhat old. Could you please post the latest snapshot? I want to take a plan for the future of my family, but for that I need to see the latest trends and features offered by different companies. Looking forward to latest comparisons. Many thanks in advance.

    1. THis is an old article . What exactly you need ?

      1. Sumit says:

        Hi Manish,

        I needed the latest premium amount comparison and the latest Claim Settlements for various term plan providers in India. Would be great if you can post that info.

        Thanks
        Sumit

        1. That should take some time

          1. Sumit says:

            Please take whatever time you need to post the info, but do post it. I believe many investors are looking for it, so it will be a great help for many. Thanks Again.

            Best Regards
            Sumit

            1. Kiran Gohel says:

              Hi Maneesh,

              Thanks for wonderful post.
              Please update term plan comparison article or it is already updated?

              Regards,

            2. Its not updated yet , but I will be updating it soon .. give me some time

              Manish

  163. Gaurav says:

    I really appreciate your above efforts and help to people like me..
    1) I have a very basic question over reliability of PVT players like AVIVA, Edielvise, Kotal, ICICI, HDFC and aegon-religare.. over a period of 20-25 years downthe line.. what if any of this companies discontinue after 20 years or default in financial crisis..
    2) Next month I am moving to UAE for JOB for a period of 2-4 years in a company.. My job is international marketing, and I will need to travel various countries in Africa, Europe and Asia from UAE frequently..
    Please advice which kind of plan and policy I should choose for securing my family,..My current income is INR 6lakh/per annum.. I want my life to be covered for 50 Lakhs sum assured- Pure term plan…
    Please advice..Regards, Gaurav .

    1. Gaurav says:

      Hi Manish,

      Will appreciate if you can revert it soon..
      Regards,
      Gaurav Soni.

  164. Gaurav says:

    Hi Manish,
    I really appreciate your above efforts and help to people like me..
    1) I have a very basic question over reliability of PVT players like AVIVA, Edielvise, Kotal, ICICI, HDFC and aegon-religare.. over a period of 20-25 years downthe line.. what if any of this companies discontinue after 20 years or default in financial crisis..
    2) Next month I am moving to UAE for JOB for a period of 2-4 years in a company.. My job is international marketing, and I will need to travel various countries in Africa, Europe and Asia from UAE frequently..
    Please advice which kind of plan and policy I should choose for securing my family,..
    My current income is INR 6lakh/per annum.. I want my life to be covered for 50 Lakhs sum assured- Pure term plan…

    Please advice..
    Regards,
    Gaurav.

  165. Jay says:

    Hi Manish – I am 32 years old and want to take Term plan for 25-30 years for 75 lacs. I feel that Disability and Waiver of Premium riders are important, but they come at cost, should i opt for them or not? I am thinking of Aegon Religare.

  166. singaravel says:

    Great work Manish, keep up, we are with you,…
    I have one suggestion, there are good message in the discussion/comment section,
    it is highly difficult to catch from the heap,.. is it possible to give some star or like buttons,… such that the good messages will be highlighted,…

    singaravel

    1. Not sure how to do that in wordpress. will have to find it out !

    2. RD says:

      Hi Manish,

      I have taken an online term life policy with ICICI and paid the premium for 1 year, the next years premium date is coming up. I have not declared the previous policies that I had taken. What do you suggest in this case?

      Thanks
      RD

      1. You should have done that .. now contact the company and see what they are saying , if they accept it , then its fine , if they do not, better dump the existing policy and take a new one

  167. sudeep says:

    what about Zurich international and friends providential term insurance , which is the best pls advise .if any dispute happen about claim where we can approch .is their any authorities available to control these international produce .
    In simple are we safe or advisable to invest in such companies

    1. We have no idea about Zurich International as its not Indian . .

  168. sudeep says:

    Hi Manish
    I am 30 years old .I am working in Dubai , I am planning for a term insurance of 1.5 crore with a critical illness coverage of 500000 Rs on 30 years period of time . Last week on agent advice me about the Zurich International and Friends providential term insurance policies . pls advise me, where these International policies or Indian polices are better while comparing the claims .
    1. Is the Indian policies are internationally valid ?
    2. International policies every 5 year reviewing the policy premium , what about the Indian policies? Are they revising the premium ?

    1. Indian policies are fixed, but they will be higher from the start itself .. You will also have to be in India to get the indian policies .

      1. pravin says:

        I am planning to take two term policies
        One from private insurance company for 50 lakhs &
        Second from LIC for 15 or 25 Lakhs

        1.Could you please suggest which private insurer is more reliable among HDFC & ICICI.
        2.Is online insurance has low claim acceptance ratio (If compared to insurance taken at branch or agent) ?

        1. Pravin

          Both of them have very high claim settlement , you can choose any of them

  169. Babu C says:

    Hi Manish,

    I have been researching for a while on Term Insurance. I have cornered on Kotak Prefered & SBI Life reason being Both of them offer Permanent Disability Rider and have comparable premiums. I want to avoid LIC due to non-availability of PD rider & high premium. I wish to take policy for 50/75Lacs SA. Please suggest me which will be best SBI or Kotak. As Kotak is private, I am in dielemma.

    Will it be a good idea to break up into two policies 50L SA with SBI & 25L SA with Kotak?

    Thanks,
    Babu.

    1. You can do the break up in SBI and Kotak if you feel that Kotak is not that great option being a private company !

  170. reddy says:

    Recently i approached a LIC agent to buy a term insurance policy, he says that no need to under go medical testes etc… our doctor will give the certificates.. so don’t worry I will manage those certificates. Which is wrong… and i did not go with that agent. The problem is when you want to claim the policy, we may have to face lot of problems. and it can lead to claim rejection, if its proved that you wantedly did not disclose the correct info about your/your family health history.

  171. pravin says:

    Hello sir,
    really nice article.
    I wanted to take term insurance for 25 lacks ( to cover my home loan).
    1. I go to trekking very often, Could you please let me know if anything BAD happens during trekking is it included in term insurance.
    2. I head adventure sports are not covered in insurances ? is it true?
    3. is trekking included in adventure sports ?
    thanks in advance

    1. If you are too often going on these kind of adventure events, then you should mention it , your premium should go up because of this, but its fare !

  172. Avinash says:

    Hi,

    I have a existing Term policy from HDFC Life which I took when I was workinh in India.
    Now I have moved to Dubai . My doubts are:
    1. Same policy is valid or not?
    2.If not what is the procedure to convert it?
    3.Whether existing premium will be changed ?
    4.Going forward the source of funds/Debit instruction for ECS must be from NRI account ?

    Thank you in advance !

    1. 1. Valid

      2. VAlid

      3. No

      4. Yes, your existing account should be converted to NRE/NRO account

  173. Satyavir Singh says:

    Excellent advise,

    I have two more questions:
    1. If I have taken one policy of Rs.25 laks from Aegon six months back. Now I feel I want to take 50 lacs or more policy. Should I continue with 25+50 lacs another or should take one policy of Rs.75 lacs or so.

    2. At the time of policy, I have opted for medical and Aegon have arranged and done required medicals and issued the policy. Now if the death occurs due to any of the reason at an early stage, claim will be settled or company can deny settlement on any of the available ground.

    pl advise.

    1. Satyavir

      1. If you go for 1 policy of 75 lacs, the premium will be cheaper than 25+50 option , so its your call now

      2. No , they cant deny the claim !

  174. Sunil says:

    I need to buy Term Insurance amt rs.25 lacs + Accidental Insurance amt. rs. 25 lacs (Total Rs.50 Lacs.). What will be the Premium for 25 yrs and Premium for maximum tenure ?

  175. Anand Kumar says:

    Dear Sir,

    I have a newly purchased Anmol Jivan -1 term insurance. Is it safe ? Is it give the rider benefits. Kindly suggest me the best term insurance plan.

    1. Its safe , just that they do not have any riders !

  176. sasi says:

    Hi Manish,
    My question is that reason for reason for death of parent in certificate is differs with actual. Which one to be mentioned in application and how it affects claims.
    Thanks in advance

    1. How can death certificate have some thing different than what was actual ?

  177. abhay says:

    I have been disbursed home-loan recently by ICICI Bank. Along with Home lOan I opted for Home Safe Plus policy by ICICI Lombard.

    Now after informing myself I find the policy is not useful in my case. So I requested a cancellation.
    Does the normal view and return rule of IRDA applies here also or it will be a special case as its linked to home loan?
    (the origin of question lies in the fact that the sales adviser ICICI Lombard says there is a 22-25% cancellation charges in the first year, of course the 15 days limit is not yet over)
    What can/ should be done?
    Please advise, thanks

  178. Ranjan says:

    Hi Manish,
    Hope you are doing great. I just read all your suggestions and guidance regarding Term Policies, thanks a lot for that.

    I am planning to go for Term Insurance(50lacs, 38 years now) and last two weeks I was doing lots of comparison of the products and now I am very much confused which one I should opt for. I am looking for a Premium around 10K. I have shortlisted HDFC, Bajaj Allianz and Aviva. Though I am interested for HDFC for the brand value and good settlement ratio but Bajaj is interesting for its riders(CAP, permanent disability premium weaver and critical illness) but here premium is higher than HDFC and less brand and settlement ratio.

    Can you please suggest, are Riders are important for a term insurance and let me know which one I should go for among these two and the reason? I need your valuable advice to fix one asap.

    Quick reply much appreciated. Thanks and Regards. Ranjan

    1. I think in your situation , just go ahead with plain term plan for now , else you will never take action in search of perfection .

      Just go ahead with HDFC or Aviva . not at all an issue !

      1. Ranjan says:

        Manish, Fantastic!!! Thank you so much for your valuable advice. I am much relaxed now. Just need your quick suggestion- I will opt for hdfc and here are two figures for the premium: 1) Rs. 7893-25yrs-25lacs 2) Rs.10225-25yrs-50lacs. Which one should I go for?

        Please advice. Thanks in advance for your great suggestions and help.

        1. I think if you can get 25 lacs more at just additional 3k , why not go for it ? What is your requirement ?

          1. Ranjan says:

            Manish, thanks a lot for your advice and valuable time. I opted for 25lacs. Also could you please suggest some traditional children’s investment plan? Thanks in advance.

            1. Why do you want to invrest in traditional plans , they are not suggested !

  179. priyanka says:

    Hello Sir,
    I want to buy HDFC term insurance policy, my que is in any casy can i change the nominee?

    1. Yes Priyanka .. you can change the nominee later when you want after buying the policy !

  180. Kshitij Banthiya says:

    Hello Manish,

    I am really impressed with your article, thx for getting all info @ one place 🙂
    My Age is 31, married with 1 yr old daughter, my parents are also dependent on me;

    kindly suggest be on below questions –

    – I want to take a TERM INSURANCE of 1 CR, shd I take two 50-50 lakh cover from 2 companies OR shd take 1 CR from a single company ?

    – Kindly suggest which is the best insurance company among these, I will go for that only for TERM INSURANCE, I have also mentioned the premiums they are quoting me for 1 CR –

    AEGON RELIGARE iTerm (Medical) Plan for 40 Years – Rs. 8,427 for 1CR
    Bharti Axa eprotect – Rs. 8,202
    Aviva ilife, for 35 Yrs – Rs. 8,346 for 1 CR
    HDFC Click 2 Project, which for 30 Years – Rs. 11,910 for 1 CR
    ICICI Prudential – icare – Rs. 13,708

    I was first interested with AEGON RELIGARE, however it seems they have a very low claim settlement ratio, what u suggest ?

    1. Kshitij

      You can take 2 term plans from Aviva and HDFC .

      1. Kshitij says:

        Thx Manish,
        I have taken 70L for HDFC.

  181. abhay says:

    I had bought a policy from BSL- Flexi Save Plus 2006 in July 2006, after a personal loan was linked to it.
    However, due to urgent movements I never happened to receive the policy.

    I requested the details from BSL in the past but never got it. After a lot of struggle I got the details from BSL in this week. All the personal details given in the policy are wrong. But the premiums have been deducted since the start of the policy from my account.

    What can be done as of today. Please advise,

    1. File a case against them now .

      1. abhay says:

        with consumer forum or IRDA or both?

        1. IRDA if its only related to Insurance , if its also related to bank , then both

          1. abhay says:

            Thanks a lot will update on the outcome of the gross negligence of the companies involved.

          2. ankush says:

            Dear manish,
            I am a seaman by profession and maintain my NRI status by staying 183 days onboard foreign ships and do not pay taxes. Can I also buy term insurance plans..?? which one would u suggest..
            Thanx in advance..

            1. Yes, you can also buy a term plan , but then you will have to go for offline term plans, try LIC and SBI !

  182. Kaushik says:

    Hi Manish,

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

    1. You have options like Aviva, Kotak , HDFC !

      1. Kaushik says:

        Hi Manish,

        Thanks for info. But I also want disability rider which is available in Bajaj. Can i take term insurance from Bajaj or do you have any other preferences.

        Thanks once again.

        1. You can go with Bajaj if you find them ok !

  183. Bask says:

    My mother underwent cancer treatment 2 years back and she is fine now.Will i be able to take a term cover for her

    1. Its very tough now ! , still try to apply

  184. Paresh says:

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

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

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

    Please reply.

    Thanks
    Paresh

    1. Its fine .. You always need to inform the company about the “old” policies !

      1. Paresh says:

        Hi Manish,

        Thanks for reply. I wanted to ask that after my death my famaily can claim all policies or any one comapny will give the claim.

        Also may I need to infrom to ICICI regarding Kotak and Met Life policy?

        Thanks
        Paresh

        1. They can claim all companies ! .. you need to inform the new company about the old cover. not vice versa !

          1. Paresh says:

            Thanks Manish!

  185. Alex says:

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

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

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

    1. I am sure it will be high , can be 50% to 100%

  186. kamini says:

    Hi,

    My Husband is 31 yrs old.

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

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

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

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

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

    Plz help…..

    1. Ask yourself if 18 lacs is enough ? can it provide you everything you wnated , obvioulsy not ! , Dump this and take a term plan !

  187. Kamal says:

    Hi Manish,

    Nice article. Thanks for making awareness among policy takers.

  188. Shankar Anand says:

    Hi Manish,

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

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

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

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

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

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

    —————————————————————

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

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

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

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

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

    1. Regarding any detailed discussions, better open a thread on our forum – http://www.jagoinvestor.com/forum/

      1. Shankar Anand says:

        Manish,

        I have asked this on the forum here:
        https://www.jagoinvestor.com/forum/lic-policy-surrender-vs-paid-up/5281/

        It would be great if you can help me.

        Thanks,
        Shankar

        1. It will be answered !

  189. VEDVYAS VERMA says:

    Good Day Sir,

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

    1. It will be decided as per your brochure and the fund value you have currently .

  190. Himanshu says:

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

    1. Good to hear that Himanshu !

  191. Himanshu says:

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

    1. Thats a different thing 🙂 .

      1. Himanshu says:

        Will Companies Cover Death Case By Drink And Drive ? Is It A Way Of Indirect Sucide ?

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

          1. Himanshu says:

            Sorry Manish , I Am Arguing With You

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

            1. Himanshu

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

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

              Manish

  192. Naresh says:

    Sir,

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

    1. Yes, I think the policy is still active and not closed, in which case you need to mention it !

  193. Ravi Kumar says:

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

    1. If you discontinue your premium, automatically your policy will become “PAID UP” , in which case you will get your premiums paid + bonus if any at maturity

      1. Ravi Kumar says:

        Manish sir,
        lic says me if u discontinue ur premium than i got a s.v. on my policy..which cost is very low in that time and on the maturity date the s.v. is same. what can i do?
        sir pls suggest me………

        1. Yes, thats how LIC policy works !

  194. Shrikant Mhaisekar says:

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

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

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

  195. Avinash says:

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

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

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

    1. Avinash

      They can not force you to buy another term plan , if you have existing you can assign it to them. ASk them for terms and conditions and RBI guidelines on this .

  196. Abhijeet says:

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

    so what you suggest??

    1. Go for yearly premiums only

      1. Abhijeet says:

        Hi Manish, Any specific reason other than
        i) above cons
        ii) Remaining amount can be used for other investment
        iii) A little bit risky to give complete amount in advance and make LIC benefits
        iv) In case in between need to go for other better plan and makin LIC to refund or adjust amount would be difficult

        Regards
        Abhijeet

        1. The thing is why to pay one time basis , when you can keep the same one time amount in a FD and pay using the interst out of it ?

          1. Abhijeet says:

            Agreed and Thanks for taking out time to read and reply

  197. Balaji says:

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

    1. Yea why not, if it makes sense form a financial perspective , then you can do it

  198. Vinay says:

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

    1. Depends which policy !

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

  199. Prashant says:

    Dear Manish Sir,

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

    Regards
    Prashant

  200. ravi bhadra says:

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

  201. sl says:

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

    Thanks & Regards,

    sl

    1. First thing is , I think you are taking policy from metlife , just that its through PNB , nothing else.

      The tests will be simple

      Manish

  202. Ram Mohan says:

    HI Manish,

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

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

    Thanks,

    Ram

    1. Just continue the policies (both) ,they will also cover you abroad, just that they will pay you in India . Inform your life insurance policy about your move before moving, so that they update the information on their side.

      Manish

      1. Ram MOhan says:

        Thanks Manish

  203. chilida says:

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

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

      Manish

      1. chilida says:

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

        1. Chilida

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

          Manish

  204. Satish M says:

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

    1. Actually it will not matter, all companies will treat you the same way . There is no companies who will prefer you more than others

  205. Rahul says:

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

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

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

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

    Naturally
    Due to desease
    Due to Accident

    1. 1. No , it can not be a cause for claim rejection

      2. No , it will also be covered.

      3. It calls for a seperate post altogether ! , will do it soon !

      1. Rahul says:

        Thank you Manish

  206. Rahul says:

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

    1. Thanks can be decided only by insurance company , but 20 times should not be an issue !

  207. Abhijit says:

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

    1. Good to hear that .. thanks

  208. Dhananjay Kale says:

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

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

    Thanking you in advance,

    Best Regards,
    Dhananjay

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

  209. ISHA says:

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

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

    Kindly send me a email

    1. There is nothing like that, just be patient and dont worry on this. you have taken a right decision !

  210. suvajit mitra says:

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

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

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

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

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

  211. Nag says:

    Hi Manish,

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

    Thanks in advance,
    Nag.

  212. Babu says:

    Hi Manish,

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

    Thanks,
    Babu.

    1. Better go for yearly premiums instead of one time !

  213. Manoj says:

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

  214. ram says:

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

    1. Yes you are eligible , you can go with any company , like Aviva, HDFC or Kotak

  215. ravi agnihotri says:

    Dear Manish,

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

    1. We do not recommend ULIP at all .. this plan looks like that and your fund value will totally be depending on the market .

  216. gajendra says:

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

    1. Gajendra

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

      1. Gajendra Singh says:

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

        1. Gajendra

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

          1. Dhawal Sharma says:

            @Manish/Gajendra,

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

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

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

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

            Hope this information could be of some help..

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

  217. Satveer Gurjar says:

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

  218. John says:

    Also.. guide me to go for a single or split policy.

  219. John says:

    Thanks Manish for the swift reply….

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

    Which is more economical and effective ???/

    1. Btter take it as seperate policy

  220. John says:

    Manish,

    Appreciate if you can help me on the below queries,

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

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

    Cheer’s
    J.

    1. You cant get these riders in online term plan . you will have to take a offline term plan only

  221. dibyanka says:

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

    1. Yes ..you can change your nominee in any product (not just term plan) after wards . contact the customer care or the company for this and they will guide you

  222. Vijay says:

    Hi Manish,

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

    Thanks for your effort.

    1. its just life cover , thats all

  223. Dixon says:

    Hi Manish,

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

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

    Thank you & regards,
    dixon

    1. Dixon

      Both are same ..

  224. Dixon says:

    Hi Manish,
    Can you please name any 2 – 3 health insurance plan that will cover the OP bills,
    Thank you,
    Dixon

  225. Dixon says:

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

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

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

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

    Thank you & regards,
    Dixon.

    1. No , you dont need to pay any tax in India

      1. Dixon says:

        Thanks Manish,
        On my tax doubts,
        Regards,
        dixon.

  226. Dixon says:

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

    So please help me find:

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

    Thank you & regards,
    Dixon

    1. Dixon says:

      Thanks Manish,

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

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

      Regards,
      dixon

      1. Dixon

        You will have to show them your residential proof in India and some id proof . But mainly talk to the companies directly , they will guide you in better way .. tell them you are NRI and will come for 5 days

        1. Dixon says:

          Thanks Manish,
          Regards,
          dixon

  227. Gaurav says:

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

    Thanks

    1. Gaurav

      You can go for online mode with HDFC and Kotak

      1. Gaurav says:

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

        1. Gaurav

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

  228. Arvind Goyal says:

    Manish

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

    1. Arvind

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

  229. Ramesh says:

    Sir,

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

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

    Waiting for your valuable inputs..

    1. Ramesh

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

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

      1. Ramesh says:

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

        1. Ramesh

          I think you should mention this while taking up the policy, mostly you will not get the policy at all , but thats better than rejection

  230. santhosh says:

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

    1. Santosh

      HOw much is your premium, not all companies have these kind of ITR rules . Better search for some other companies and see how much SA you can get with that kind of premium !

      Manish

      1. santhosh says:

        HI MANISH,
        My premium is 1900 for half year and it is taken from INDIA FIRST LIFE INSURANCE COMPANY and it is going to expire in the month of April 2012. So please suggest me the company which does not ask for ITR for 20-25lakhs sum assured.

        1. Santosh

          I think no other company asks for ITR for such a small cover anyways .. so go for Aviva , AR or Kotak , also see this article , it will help you : https://www.jagoinvestor.com/2012/03/term-insurance-plan-cover-above-50-lacs.html

  231. Suvendu Tandy says:

    Very useful information ! Thanks a lot.

  232. Arvind Goyal says:

    Hi Manish,

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

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

    Thanks and Have great future ahead.

    Regards,
    Arvind Goyal

    1. Arvind

      You can then go with LIC . Kotak and HDFC also have decent claim settlement, i dont think others factors really are that big decider !

  233. Bhavin Nagda says:

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

    1. Bhavin

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

  234. Darshan Shah says:

    Hi,

    Thanks for the Good article.

    One question regarding the exclusion from Death at point 7.

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

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

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

    Please Advice

    1. Darshan

      Yes suicide clause is same with all companies, they all do not cover suicide in first year .

      Manish

      1. Darshan Shah says:

        Manish,

        Does that mean death by Terrorist attack or natural disaster will be covered?

        can i go for 2 policy instead of 1 term policy for higher amount? any idea about aegon religare policy?

        Regards,

        Darshan

        1. Aegon Religare now covers terrorist attacks

  235. abhay shah says:

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

    1. Abhay

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

  236. Sapan says:

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

    1. sapana says:

      Dear Mr. Manish, No response for my query?? Pls reply

    2. Sapana

      You can go with term plan from HDFC/Kotak/Aviva .. but you will have to be in India for that . also check if you need insurance or not !

  237. alpesh pancholi says:

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

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

    1. Alpesh

      Bad news for you .

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

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

      Manish

  238. Vipin Agrawal says:

    Got good information here.

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

    1. Vipin

      Its because company should know how much insurance you already have , so that you dont cross a limit which you deserve.

  239. Jitendra says:

    Hi manish,

    Thanks for all above information.

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

    Thank you

    1. Jitendra

      Claim half the premium paid from tax point of view ?

  240. SUNILKUMAR N says:

    hi manish,

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

    1. Sunil

      No, he does not need to inform his company .

  241. yug bandhu says:

    ONLINE TERM PLAN KAISE LE. KYA LIC KE ALAWA AURO SE LENA SAFE HE

    1. Ji Haan .. sab safe hai .. but agar aap LIC par hi wiswaas karte hain , to LIC se hi lijiye !

  242. Rajeev Shukla says:

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

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

    Regards
    Rajeev

    1. Rajeev

      Your Bajaj term plan is useless just because you have hidden your LIC plan , though its a small policy but you have violated the rules and your claim will be rejected incase they find it out .

      So better dont do this in next term plan , aviva or kotak are good one’s

      1. Rajeev Shukla says:

        can i inform to bajaj Alianj now about my LIC money back policy.

        1. Rajeev

          Try letting them know about it , but I am not sure if they will accept it or not .

  243. Surendra Jain says:

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

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

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

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

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

    1. SUrendra

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

  244. Muneswar says:

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

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

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

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

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

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

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

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

    Thanks in advance.

    1. Muneswar says:

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

      1. Muneshwar

        It would be tough to find out some one who has a claim experience .

    2. Muneshwar

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

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

      Manish

  245. Muneswar says:

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

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

    2. Any insurance company went bankrupt in the past?

    Thanks in advance.

    1. Dhawal Sharma says:

      @Muneswar,

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

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

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

      Dhawal Sharma
      URJA WEALTH CREATORS

    2. Muneshwar

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

      Manish

  246. ashis says:

    Dear Manish,

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

    regds
    Ashis

    1. Ashis

      A lot of companies might reject if you are not earning .. But try companies like Kotak or HDFC

  247. ashis says:

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

    Please guide.
    regds
    Ashis

    1. Ashish

      its the companies who will decide if they would like to give you insurance or not .. what matters is your current employment status, not old

      Manish

      1. Shiva says:

        Hi Manish,

        What if I leave my job after taking the policy(say after 2 or 3 years) and continue with some other profession/business? As the source of income is changing, will it matter at the time of claiming?

        Please advice.
        thanks,
        Shiva

        1. No it will not matter. What matters is your disclosure at the time of buying . What you do later has nothing to do with policy !

          1. Shiva says:

            Thank you very much for prompted response Manish…. 🙂

            -Shiva

  248. NILESHKUMAR says:

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

    1. NIlesh

      You have to mention all the policies you hold

  249. Saket says:

    Thanks Manish!

  250. Saket says:

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

    Just One question on

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

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

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

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

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

    1. Saket

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

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

      Manish

    2. Vipin Agrawal says:

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

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

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

      1. Yes Vipin

        Not having nominee is something which should be completed soon ,else the family will suffer like anything

    3. Dixon says:

      Hi Saket,

      Can you pls send me the link for ebook by Manish, to dxndxb@hotmail.com
      Thanks,
      dixon

      1. Saket says:

        Dixon
        Here it is
        https://www.jagoinvestor.com/2012/01/term-insurance-plan-ebook-free-download.html

        You need to share the link your facebook/twiter account before you can actually download it.

        I found answers to a lot of my questions (similar to the ones people are putting on this page) in the book. And If you are a beginner, Manish’s book Change your relationship with money also makes a very good read.

  251. dr ravi narayan says:

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

    1. Dr Ravi

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

      Manish

  252. Prashant says:

    Dear Manish,

    What is different between Kotak e-preffered Term Plan and Kotak term plan.

    Regards
    Prashant

    1. Prashant

      Kotak epreffered is an online term plan which you can buy online , but kotak preffered is an offline version which you can buy from a agent

      Manish

      1. Prashant says:

        Dear Manish,

        thax for reply,
        kotak e preffered covers suicide,accident,disability and critical illness.

  253. gaurav says:

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

    Premiums are different and that is secondary.

    1. Gaurav

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

      Manish

      1. gaurav says:

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

        1. Gaurav

          It will not be soon .. but LIC online term plan will surely be cheaper than its offline version , but not too much cheaper 🙂

  254. Prashant says:

    Dear Manish,

    Kotak E term covered Suicide and accident death benefit or not?

  255. Surendra says:

    Could you please provide me the link, where I can check claim settlement ratio of all the companies for Term Insurance

      1. Surendra says:

        Thanks Manish, could you please share your feedback ofm HDFC term Policy ‘Click to Protect’ I am planning to go for it because of HDFC’s 2nd best claim settlement ration

        1. Surendra

          Most of the online term plans are almost same .. there is no need of review in that .. just choose one which you trust

          Manish

  256. Dhawal Sharma says:

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

    1. Dhawal

      Good to hear that .. thanks for the news

      Manish

    2. SUNILKUMAR N says:

      Hi dhawal,

      Does good solvency ratio indicate average claim settlement ratio.

      1. Dhawal Sharma says:

        @SUNIL KUMAR N

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

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

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

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

        1. SUNILKUMAR says:

          thanks for clarifying my doubt on solvency ratio.

    3. Dixon says:

      Hi Dhavwal,
      Can you please send me the link or the pdf file to me at dxndxb@hotmail.com
      Thanks,
      dixon

  257. Vinay Maithani says:

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

    1. Vinay

      You can go for a term plan with 1 crore of SA . You have options like Aviva ILife , Kotak and LIC

      Manish

  258. Sruhid says:

    Hi Manish,

    I want to buy a Term Insurance plan.Will you suggest a plan to me?

    1. Sruhid

      You have many options like Aviva iLife , Kotak epreffered and LIC

      Manish

  259. Pranav says:

    Manish, Dhawal, et al,

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

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

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

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

    1. Dhawal Sharma says:

      Thanks Pranav for your appreciation..

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

      Dhawal Sharma
      URJA WEALTH CREATORS

  260. SMANAND says:

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

    1. Smanand

      You are in a deadlock in that case .. you will have to choose one of them with their conditions

      Manish

  261. Deepthi Nambiar says:

    Hello Manish,

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

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

    How do you rate Birla Sunlife Dream plan?

    1. Deepthi

      I am not aware of any rule like this that if after 3 yrs , the fund vlaue is less than 1.5 times SA , then it will expire , its not like that .

      You can read more about this policy at our forum : https://www.jagoinvestor.com/forum/query-about-birla-sunlife-dream-plan/779/

  262. DArshan Parkar says:

    What if I suffered from disease after taking policy ?

    1. Darshan

      No issues , thats fine

      Manish

  263. arun madan says:

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

    1. Arun

      That calls for a seperate post . for now ask this on our questions and answers forum : https://www.jagoinvestor.com/forum/

      Manish

  264. JITEN DESAI says:

    Hello sir

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

    1. Jiten

      Go for Aviva for Kotak

      manish

  265. Suhas Suryawanshi says:

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

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

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

    Please give me your valuable suggestion as soon as possible.

    1. Suhas

      Yes you will be covered , but as your work is more risky than others , there might be an increase in premiums . Try to go for Aviva iLife or ICICI iCare

      manish

  266. N. Srinivas says:

    Hi Manish

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

    1. No , there is nothing like that . Do you think there will be any company who would do that ?

      manish

  267. Balu says:

    Hi Manish,

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

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

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

    1. Balu

      You always have to mention the list of al the policies which were FUNCTIONAL at the time of taking some policy , so at the time of second policy was the first one already in your hand ? If no , then its ok , else not .

      Endowment policies are not easy to close , you will have to take up a huge loss : You should understand your LIC policy by reading this : https://www.jagoinvestor.com/2011/08/lic-policies.html

      1. Balu says:

        Thank you Manish!!

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

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

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

        Thank you
        Balu

  268. Arun

    You can look at ICICI iCare or Kotak

    Manish

  269. arun says:

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

  270. Kundan says:

    Hi Manish,

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

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

    Thanks,
    Kundan

    1. Anand says:

      Kundan,

      The claim would be settled by ALL OF THEM.

    2. Kundan

      All of them will honour the claim 🙂

      Manish

      1. Kundan says:

        Thanks Manish 🙂

  271. Mudit says:

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

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

    1. Mudit

      What they have said is right ,this article is little old now ,

      Manish

  272. Muneswar says:

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

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

    Thanks in advance,
    -Muneswar

    1. Muneshwar

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

      2. Ask LIC , call Customer care

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

      Manish

  273. arun madan says:

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

    1. Arun

      This is an issue .. You have given a wrong indication about your salary which forms a basis for underwriting , you should look at other policuy now

      Manish

  274. Ajit says:

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

    1. Ajit says:

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

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

        You will be very clear of things

        Manish

  275. Ajit says:

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

    1. Ajit

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

      Check your premiums online on these sites

      Manish

  276. Arun says:

    Manish,

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

    1. Arun

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

      Manish

  277. Dinesh says:

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

    — Dinesh

    1. Dinesh

      Good to hear that 🙂 . Keep coming back and readng more and more

  278. santhosh says:

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

    1. Santosh

      What suggestion you want here ? You already decided it , Also you can go for high cover , you can get 50 lacs cover in 5-6k

  279. Joshi says:

    Hi Manish,

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

    1. Joshi

      NO , there is no option like that

  280. Prabhu says:

    Hi Manish,

    Below are my few questions related to term policies

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

  281. Deepthi Nambiar says:

    Hi Manish,

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

    1. Deepti

      If its a term plan .. you can go for it, but check its premium with other companies

      Manish

  282. ajay says:

    good site

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

    1. Dr Maulik

      Most of hte company have it included , I am not sure about LIC ,. the claim ratio can be seen at IRDA annual report

  284. Rahul says:

    Hi Mohit,

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

    Please suggest.

    Regards,
    Rahul

    1. Rahul says:

      Hi Mohit,

      Waiting for your advise on above raised query.

      Regards,
      Rahul..

      1. Rahul says:

        Sorry Manish. My Query was to you. Kindly advise.

    2. Rahul

      Yes, if you are going to be financially dependent on her ,then you should take a term plan for her .

      Manish

  285. Satya says:

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

    1. Satya

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

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

      3. Yes you need to mention that .

      Manish

      1. Satya says:

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

        1. Satya

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

          Manish

  286. Nirmal Singh says:

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

    1. NIrmal

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

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

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

      Manish

      1. Nirmal Singh says:

        So nice of u Manish.
        I want to take online term policy but agents always say that there are many problems in taking online policy. What u think ?

        1. Nirmal

          there is no problem in taking online policy . Agents will say that because their commission is at stake

          Manish

  287. Jateen says:

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

    Thank you

    1. Jateen

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

      Manish

  288. ramesh c sharma says:

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

    1. Ramesh

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

      Manish

  289. Anand Modi says:

    Hello,

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

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

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

    OR

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

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

    1. Anand

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

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

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

      Manish

      1. Anand Modi says:

        Hi Manish,

        Thanks for your response.

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

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

        1. Anand

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

          Manish

  290. j k sahu says:

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

    1. J k Sahu

      Its mainly because of two factors

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

      Manish

  291. Ravi says:

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

    1. Ravi

      Most of the insurers provide the cover till 70 , and some of them do for 75 also , see this for reference : https://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

      How much you can take would depend on your yearly income and previous cover . Check with the insureres , you can go with mix of 2 insurers

      Manish

  292. Durgesh Salunke says:

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

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

    1. 1, Yes

      2. Yes

      Manish

  293. Praphool says:

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

    1. Praphool .. u can read about term plan here : https://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

      It has the detials

      Manish

  294. shyju says:

    nice info… thanks,

    is there any maximum age beyond which term insurance is not given?

  295. r.p.shrivastava says:

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

    1. RP Shrivastava

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

      Manish

  296. r.p.shrivastava says:

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

  297. Rajeev Bhatia says:

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

  298. SA says:

    Hi Manish,

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

    Thanks
    SA

    1. Sa

      No that will not be true , where did you read it ? It will cover death by any means ,. all term plans do

      Manish

  299. Naveen says:

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

    1. Naveen

      I am not sure about non-life insurance policies . Regarding interest on claim amount, it should be there after a long time like 3 months or 6 months

      Manish

  300. Muthu says:

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

    1. Muthu

      NO , that should not be an issue . As per rules, you should disclose the existing policies only

      1. Muthu says:

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

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

        What is your opinion?

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

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

        1. Muthu

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

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

          Manish

          1. Muthu Krishnan V says:

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

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

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

            1. Muthu

              I personally feel that you should wait for few years and see the rejection ratios of AR . if you have given all the info properly ,there is nothing to fear .

              Manish

  301. Kaushik says:

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

    1. Kaushik

      Note that insurance is a proposal from your side, so you should reveal anything which can impact the premiums . Almost everthying is in the form itself .

      Manish

  302. Ilesh says:

    I was undergone certain ECG, urine and blood investigations at the time of policy taken.

  303. Ilesh says:

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

    1. Ilesh

      Was it specifically asked that “How did you father die ? ” If it was then you should have disclosed it . Incase there was nothing asked , it should be ok

      Manish

      1. Ilesh says:

        Thank you Manish,

        Yes, they have asked specifically in form. What should I do now? Can I disclose this matter afterwards? Pl guide me…

      2. Ilesh says:

        Manish,

        Thank you for your kind response. Yes, they asked me specifically. Now what should I do?
        Pl guide me.

        ILesh

        1. YOu should provide the info ion that case

          Manish

  304. venkatesh puthige says:

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

    1. Venkatesh

      There wont be any issue with your policy .

      Manish

  305. Bhavin says:

    Hi Manish,

    Thank you for the article.

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

    Thanks!
    Bhavin.

    1. Bhavin

      I am not 100% sure , but it has to be from the date you have paid the premium .

      Manish

  306. manojkumar says:

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

    1. Manoj

      Thanks for reading 🙂 .

      Is 50 lacs enough to take care of “EVERYTHING” for your family ?

      Manish

  307. Dayanand says:

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

  308. Rajesh Jain says:

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

    1. Rajesh

      1. NO
      2. You will be considered Drinker im this case
      3. No idea

      Manish

  309. Tushar says:

    Dear Manish & Team;

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

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

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

    Thanks & Regards

    Tushar

    1. Tushar

      Great to hear that 🙂 . Keep reading and spreading the knowledge 🙂

      Manish

  310. Deepthi Nambiar says:

    Hello Manish,

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

    1. Deepthi

      No , If your husband was not smoking drinking at the time of taking the policy ,there should not be issues .

      Manish

      1. Deepthi Nambiar says:

        Thank you Manish.

  311. CT says:

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

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

    1. CT

      No , you dont need to notify your old insurer about new insurer . But you need to do it vice versa

      Manish

  312. Manish says:

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

    1. Manish

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

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

      Manish

      1. Manish says:

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

        Regards

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

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

          Manish

  313. Aman says:

    Hi Manish,

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

    How other family member get money.

    Aman

    1. Aman

      In that case , the nomination becomes ineffective and the situation it treated as if there was no nominee , then it is recieved by legal heirs or as mentioned in the WILL

      Manish

      1. Aman says:

        Thanks for info Manish,

        Manish please guide me which term plan is good for me. My age is 25 and I am looking term plan for 50,00,000/- & I will invest till to 65 of my age.

  314. Gopal says:

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

    1. Gopal

      I remember I was not asked any income proof while buying term insurance for me , so you can buy it . Ask an agent what all documents is required or just shoot a question on our forum , there are many who have bought term insurance recently and will be able to answer you : https://www.jagoinvestor.com/forum/

      Manish

  315. ZOHAR BATTERYWALA says:

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

    1. Zohar

      For term insurance you can opt for SINGLE premium option , for health insurance I am not sure if single premium exists !

      Manish

  316. Sukhanya says:

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

  317. Vikram says:

    Hi Manish,

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

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

    can you please clarify on this?

    Thanks,
    Vikram

    1. Vikram

      You missed reading the latest article , you will get your answers : https://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

      Manish

  318. Kempraj says:

    Hello Sir,

    Risk cover Ok in term insurance policy. But, Is it disability covered in term insurance?

    1. Kempraj

      Not always , you have to take the rider which adds one extra feature that will pay you in case of disability , not all term plans have that . Look at this article which explains the list https://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

  319. abhishek manot says:

    thanks for your valuabel comments
    with regards
    abhishek

  320. Kuntal says:

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

    1. Kuntal

      Yes , just mention that you already have company insurance . I hope there will be some place to fill that

      Manish

  321. binod mahanta says:

    Dear Sir

    I want to know some information

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

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

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

    1. Binod

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

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

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

      Manish

  322. Deepthi Nambiar says:

    Hi.

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

    1. Deepthi

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

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

      Manish

  323. sumit says:

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

    1. Sumit

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

      Manish

  324. sumit says:

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

    Thanks & regards

    1. Sumit

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

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

      Manish

  325. sumit says:

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

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

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

    1. Sumit

      I think this point is there for Kotak as the writer is from Kotak , so lets not generalise it , Even I am of the same view like yours 🙂

      Manish

  326. Deepak says:

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

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

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

    Thanks in Advance

  327. Siva says:

    Hi Manish,

    As usual nice post. I have a question.

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

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

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

    Please clarify.

    1. Siva

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

      Manish

  328. Deepak says:

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

    1. Deepak

      Great to know that you got all your answers , i feel great that you got served at jagoinvestor for your queries and doubts :). visit again

      Manish

      1. Deepak says:

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

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

        Thanks in Advance

        1. Deepak

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

          2) Smoker

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

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

          Manish

          1. Deepak says:

            thanks buddy… really appreciate your response..

  329. yogesh says:

    yes correct. 204 profit can also be interpreted tht company is not settling claims and keeping mpney with him 🙂

    1. Yogesh

      Not really , It can happen that they are not getting any claims 🙂 ..

      Manish

  330. dhawal sharma says:

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

    1. pattu says:

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

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

    2. Dhawal

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

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

      Your thoughts ?

      Manish

      1. dhawal sharma says:

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

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

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

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

        1. Dhawal

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

          Manish

        2. Raja says:

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

          Regards
          Raja

          1. dhawal sharma says:

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

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

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

            1. Dhawal

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

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

              Manish

            2. Raja says:

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

              Regards
              Raja

            3. Raja

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

              Manish

        3. pattu says:

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

  331. vinay says:

    Hi Manish,

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

    Thanks.

    1. Vinay

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

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

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

      Manish

      1. vinay says:

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

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

        Vinay

        1. Vinay

          Let me forward this to Dhawal

          Manish

          1. Dhawal Sharma says:

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

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

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

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

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

            http://www.economywatch.com/insurance-in-world/reinsurance-companies.html

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

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

            1. pattu says:

              Informative post Dhawalji, Thanks.

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

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

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

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

            2. vinay says:

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

              Vinay

            3. Shiva.K says:

              Great Explanation ….. Thanks Dhawal & Manish… Kudos 🙂

  332. Jig says:

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

    Example:

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

    Keep sharing is my intention here.

    wish you keep sharing knowledge here

    Regards
    Jig

    1. Jig

      Read next article on Monday, after that article , you will have no question on Life Insurance 🙂 . Guarantee 🙂

      1. Jayaprakash Kanreddy says:

        Waiting for that manish 🙂

  333. yogesh says:

    Hi Manish,

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

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

    Regards
    Yogesh

    1. Yogesh

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

      Manish

  334. Seena J says:

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

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

    1. Seena

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

  335. Tarun Maheshwari says:

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

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

    1. Tarun

      Thanks for the info

    2. amol says:

      Tarun,

      thats valuable information you have come up with. any idea about SBI and Kotak?

      thanks again!

  336. amol says:

    manish,

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

    Can you or Dhawal Sharma please advice on this point

    1. Amol

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

      Manish

      1. amol says:

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

        1. Amol

          When in Nov ? We can do something around Diwali time if others are fine , I am there in Diwali time .. what about 6th or 7th morning ?

          Manish

          1. amol says:

            6 or 7th 🙂 these are actual festival days as I know
            I am fine with date after 7th Nov.

            1. Jig says:

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

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

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

            2. amol says:

              Jig,
              Thanks for the info!
              I will get in touch with them for more details

  337. herge says:

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

    1. Herge

      No , there are no statistics , we are saying that based on login and reasoning

      Manish

  338. Abhi says:

    Hi Manish,

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

    Thanks
    Abhi

    1. Abhi

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

      Manish

  339. yogesh says:

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

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

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

    1. Yogesh

      Thanks for this info , I am sure it would be help ful for many

      Manish

  340. yogesh says:

    Hi Manish,

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

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

    Regards
    Yogesh

    1. gkdoda says:

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

      Hope it will help you.
      InvestmentKit

      1. Gkdoda

        Is there a limit for those expenses . suppose preium is 10k , but the expenses for medical is 40k and done by NRI’s themselves, will it be refunded ?

        Manish

  341. Jig says:

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

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

    Keep sharing..
    Njoy

    Jig

    1. I will come up with ULIP comparision soon , for now just understand that its not that clean as it sounds 🙂

      Manish

  342. Abhi says:

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

    1. Abhi

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

      Manish

      1. Abhi says:

        Hi Manish,

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

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

        Abhi

        1. Abhi

          Great to hear that 🙂

          Manish

          1. Abhi says:

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

            1. pattu says:

              Abhi,

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

            2. Pattu & Abhi

              I think thats the only way it can be , do you agree or offer a cleaner way of doing this , suppose you are insurer .

              Manish

            3. Abhi says:

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

              Note: Again, this is as per the LIC agent

            4. Abhi

              I am not sure if they would return 100% , every insurer cuts the expenses done on medicals atleast .

              Manish

  343. Anand says:

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

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

  344. Pallavi S says:

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

    1. Pallavi

      Thanks for your appreciation . Let me answer your doubts

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

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

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

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

      Manish

  345. Rahul says:

    Hello Manish,

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

    Looking forward for a reply from your side.

    Thanks
    Rahul Goel

    1. Rahul

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

      manish

    2. Jayaprakash says:

      Rahul,

      Yes, medical test is done in Aegon Religare iTerm policy.

      JP

  346. pattu says:

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

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

    1. Pattu

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

      Do you think its the case with LIC also ?

      Manish

      1. pattu says:

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

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

  347. Mohit says:

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

    1. Mohit

      No need to tell about health insurance policy .

      manish

      1. Mohit says:

        But i have accidental insurance also. And i have lic endowment plan, for which i am not paying premium from last 7 months. And have taken term plan 20 days ago. I have not submited the purposal form yet.

        1. Mohit

          If you are planning to pay the premium of endowment policy , then it will be in force and in which case you should notify to the company about it .

          Manish

          1. ashish says:

            Being a ignored investor, if someone had missed to inform new insurers about old ULIPs/term plans (Taken from other insurers earlier) then can he/she update this info after taking ULIP/term plan from one company ?

            1. Ashish

              Yes you can do that , but that might increase the premium because these information are part of underwriting which decides your premiums

              Manish

  348. Sampath Venkatesh says:

    Thanks for your quick and smart response

  349. Sampath Venkatesh says:

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

  350. Hemant says:

    Manish I don’t think this point is right.

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

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

    1. Hemant

      I am relying on Dhawal’s input who is himself a Kotak insurance agent . Are you sure its not correct ?

      Dhawal ?

      Manish

      1. Hemant says:

        Yup

        But let’s wait for dhawal’s comment.

        1. Pankaj Parashar says:

          I am with Hemant on this one…let’s wait for Dhawal’s comment

          1. I am following up with Dhawal .. wait for it

            Manish

            1. Dhawal Sharma says:

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

            2. Dhawal

              Makes sense 🙂

              Manish

            3. Hemant says:

              @ Dhawal

              I don’t agree can you share some authentic material on this.

            4. pattu says:

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

              If its mentioned in the document then fine.

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

            5. I dont do drugs or smoking .. but my BMI is now getting detoriated 🙂

            6. Dhawal Sharma says:

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

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

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

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

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

            7. pattu says:

              Dhawal,

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

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

            8. Totally agree with Pattu on this , If its not there on the legal document, then we can challenge the insurer

              Manish

            9. nixon says:

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

  351. Anand says:

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

    1. Anand

      I dont thing you can go that detailed , but the simple thing is to say that anything which is abnormal compared to a healthy person , it would lead to increase of premium .

      Manish

  352. vijaya says:

    Hi Manish,

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

    1. Vijaya

      If you are not residing in India , better let your insurer know about this , because if tomm claim is rejected on this ground , you will not even be present to regret 🙂

      Manish

  353. Manish says:

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

    1. Manish

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

      Manish

      1. prabeesh says:

        Manish

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

        1. Prabeesh

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

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

          Manish

  354. Vinay Sarda says:

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

    1. Vinay

      SBI customer care is the real source of truth , if they say yes , then it is.

      Manish

      1. Pankaj Parashar says:

        Under Term Plans…death due to any cause is sovered…accept 1st year suicide exclusion….
        other terrorism..war…these exclusions are for riders only…

  355. S71814 says:

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

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

    Thanks.

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

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

      Manish

  356. Harish says:

    A quick question

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

    Regards
    Harish

    1. Harish

      No , term insurance does not allow that . You will have to take a seperate policy now and the premium will be as per your current age .

      Manish

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

    1. Kailas

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

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

      Manish

      1. Thanks for reply.
        Regarding overweight issue, the Treadmill Test clarifies most of the questions regarding effects of overweight. But it is not well taken or understood in present insurance framework.

        1. What is treadmill test ?

          1. kailas says:

            In Treadmill test, a person has to walk on treadmill at different speeds for about 35-45 minutes. Probes are connected at different places (on chest, arms, stomach, just above palms etc) to record variation in pulse and blood pressure is monitored at every speed variation by doctor.

  358. Krishna says:

    Hi Manish,

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

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

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

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

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

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

    Please comment.

    Regards,
    Krishna

    1. pattu says:

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

      *(Any instrument @8% )
      calculate using
      https://www.jagoinvestor.com/calculators/html/Future-Value-Calculator.html
      you would get more than 22 lakhs!

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

    2. Krishna

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

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

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

      I am counting on your reply !! please reply

      Manish

      1. pattu says:

        Nice reply Manish! Didn’t think about this. Its more important!

        1. One just have to attack at the most sensitive area 🙂 , not hard 🙂

          Manish

          1. Krishna says:

            @Manish & @Pattu

            Actually, I had assumed same SA in both cases. But, I am more than convinced about taking term insurance. Cleared my all dilemmas.

            Thank you Pattu for calculation!

            Krishna

            1. Sure .. good to hear that 🙂

            2. Ramesh says:

              Manish, Krishna, I had same question like this. Finally which one is better, Amulya or Amrit? Please reply.

            3. Ramesh

              Amulya .. as its a term plan

  359. Amit says:

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

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

    Senario 1 : Current Tax System

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

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

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

    Is it good idea to buy flat in parents Name :

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

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

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

    Thanks

    Amit

    1. Amit

      Please ask it again on forum , it should not be an issue , be brief instead of asking a long one : https://www.jagoinvestor.com/forum

      Lets make sure the question asked is relevent to the current article .

      Manish

  360. Dhawal Sharma says:

    @MANISH – Please give a look at this article in today’s ECONOMIC TIMES where LIC’s CHAIRPERSON Mr T.S.VIJAYAN speaks about the LIC’s NON-EARLY DEATH CLAIM SETTLEMENT ratio is 95.16%..Might be an eye-opener to lot many on this blog..

    http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/LIC-settles-claims-worth-of-Rs-539540-crores/articleshow/6615833.cms

  361. Rakesh says:

    Manish,

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

    Rakesh

    1. Rakesh

      I am not continuing it now as its an expensive policy now provided so many of new plans are on offer , I am planning to find another insurer for me now .

      Manish

      1. Pankaj Parashar says:

        The new Term Plan of SBI Life..Smart Shield is pretty competitive in the offline policies available…

        1. Pankaj

          Yea .. thats on my list ..

  362. pattu says:

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

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

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

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

    1. Jayaprakash says:

      Good point pattu.

    2. Pavan Kulkarni says:

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

      Manish,
      As usual, great post! 🙂

      1. pattu says:

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

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

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

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

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

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

        Of course its only an expectation.

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

        1. Dhawal Sharma says:

          @Manish & PATTU – Please take a look at the comment made by LIC Chairperson Mr T.S. Vijayan about LIC’s claim settlement ratio in case of NON-EARLY DEATH CLAIMs is 95.16%..Might be an eye-opener to lot many readers of our blog…

          http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/LIC-settles-claims-worth-of-Rs-539540-crores/articleshow/6615833.cms

          1. pattu says:

            Thanks for the link. My eye open wider:

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

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

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

            1. Raja says:

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

              Regards
              Raja

            2. pattu says:

              oops I meant 95/100 claims settled in 15 days!!

  363. Naren says:

    Hi Manish,

    Just wanted to know, which company is preferable according to you?

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

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

      manish

  364. gopal says:

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

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

    I got this in written from them via email.

    1. Gopal

      Good to hear that , but generally people are confused on this fact and hence the doubt .

      Manish

      1. Pankaj Parashar says:

        Death is covered for all cases…these exclusions are for riders mostly….

  365. Jayesh Trivedi says:

    Dear Manish,

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

    1. Jayesh

      Will come up with ULIP rules and features in some other articles , for now if you have a specific question , ask on forum : https://www.jagoinvestor.com/forum/

      Manish

    2. Dhawal Sharma says:

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

  366. Jagbir says:

    Again good article, Manish.

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

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

    1. Jagbir

      Yes you can look at that option , if the cost of the iProtect + PA looks better , you can go for it . Its more of a data driven decision , than a conclusion based decision .

      Manish

      1. Madhav says:

        One cache here is – Term Insurance Premium will not change once it is taken. However, Personal Accident Policy will be one year period – which can be changed at a later stage.. however, as PA premium is low – can consider separate policies as well..

        1. Madhav

          thats a great point . I didnt consider that 🙂

          Manish

  367. Raja says:

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

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

    Regards
    Raja

    1. Raja

      1) Yes
      2) No , you have to inform them if you are going for a very long time .

      Manish

      1. Pankaj Parashar says:

        i would reiterate myself… there is no need to disclose even if you are abroad for a long term, just make sure that you keep paying the premiums and policy is inforce…

        1. Pankaj

          Are you sure on this that a person has to not disclose it if he is going for very long term for settling ? I will have to reconfirm it from Dhawal who has given the inputs ?

          Manish

          1. Pankaj Parashar says:

            Manish..
            Please reconfirm

          2. Rajni says:

            Sir,
            If i go outside India for 30 days, should i inform it to the insurance company .Is there any time limit upto which i do not have to inform . What about the death certificate if the person died outside India

            1. No time limit unless you are going for years and decades ! ..

              Even if the person dies outside India, they still will get death certificates here in India

  368. Raj says:

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

    1. Raj

      As a general rule , the level of investigation would be more if it has happened early. It happens with us also in real life , doesnt it 🙂 .

      Manish

      1. Dhawal Sharma says:

        @Manish – Please give a look at this article in ECONOMIC TIMES of today where LIC chairman Mr T.S.VIJAYAN speaks about their claim settlement ratio in case of NON-EARLY claims (DEATH CLAIM ratio) is 95.16%..Might be eye-opening to lot many readers on this blog..and give them a better understanding of the concept of EARLY CLAIM, both in case of LIC as well as PRIVATE PLAYERS..

        http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/LIC-settles-claims-worth-of-Rs-539540-crores/articleshow/6615833.cms

        1. Dhawal

          thanks for the link , I am already writing an article on that , this article will help 🙂

          Manish

  369. herge says:

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

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

    1. Herge

      You dont have to disclose it to LIC if you are provided insurance by your employer , but mentioning it wont hurt . The best would be to ask your LIC agent on this .

      Manish

      1. Pankaj Parashar says:

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

        1. herge says:

          Many thanks. LIC’s form no 300

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

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

            Manish

            1. Pankaj Parashar says:

              ya..group insurance is not considered…however ..herge..u r right..the form is badly worded 🙂

            2. herge says:

              Manish, Pankaj,

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

            3. Herge

              I dont think you have to mention this one to LIC , Its not something you choose on your own .

              Manish

            4. Abhijeet says:

              Hi Manish,

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

            5. No , you dont need to intimate LIC about your new point . Its always informing about the old one to new

  370. Sampath Venkatesh says:

    Very Useful informations sir. pl. clarify sir.

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

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

    1. Sampath

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

      Manish

      1. Raja says:

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

        Regards
        Raja

        1. Raja

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

          Manish

          1. Dhawal Sharma says:

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

            1. Raja says:

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

              Whats the solution to this problem ??

              Regards
              Raja

            2. Dhawal Sharma says:

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

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

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

            3. Raja says:

              Dear Dhawal,

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

              Regards
              Raja

            4. Dhawal Sharma says:

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

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

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

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

            5. sudhir says:

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

            6. Thanks for your comment sudhir

            7. Basavaraj says:

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

  371. Sandy says:

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

    1. Sandy

      You only have to notify the new insurer, not the old one .

      Manish

  372. pattu says:

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

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

    1. Pattu

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

      what do you think on this ?

      Manish

      1. pattu says:

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

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

        1. Pankaj Parashar says:

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

          1. Pankaj

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

            Manish

            1. Pankaj Parashar says:

              Hi Manish…

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

  373. prabeesh says:

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

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

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

    1. Prabeesh

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

      Manish

      1. Dhawal Sharma says:

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

        1. Pankaj Parashar says:

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

        2. Dhawal

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

  374. JayaprakashReddy Kanreddy says:

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

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

    1. JayaprakashReddy

      Yes , its covered after first year . Are u planning :0 ?

      Manish

      1. Jayaprakash says:

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

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

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

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

          Manish

          1. Raju says:

            To avoid hasty decision….idea is plan everything well in advance (including suicide).

  375. Venkatesh Kumar says:

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

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

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

    thanks,
    Venkatesh.

    1. Venkatesh

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

      No need to tell them for pension schemes

      Manish

      1. Pankaj Parashar says:

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

        1. It might not be on travelling , but if you settle down there .. you have to notify them as per the guest writer of the article who is an Insurance agent of Kotak .

          Manish

          1. Pankaj Parashar says:

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

            1. Dhawal Sharma says:

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

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

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

            2. Dhawal

              Thanks for the update 🙂

              Manish

  376. NARESH SHARMA says:

    Dear Manish,

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

    1. NARESH

      If you take ICICI while you are already covered , then you have to tell them , else if you leave AVIVA , then no need to tell

      Manish

  377. Harish says:

    Manish,

    Very useful and detailed information..

    Just a quick query:

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

    Regards
    Harish

    1. Harish

      No , you dont have to notify old company about new one, they dont have to do anything with it . You just have to tell new one about the old policy .

      Manish

      1. Harish says:

        Thanks Manish for your quick reply…

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

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

        -Harish

        1. Harish

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

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

          Manish

  378. Sanjay Sutar says:

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

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

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

      Manish

      1. lakshay says:

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

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

        1. Hi lakshay

          In that case, your are safe . The policy will be valid !

    2. Pradeep says:

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

      How is their claim settlement ratio ?

      Pradeep

      1. Pradeep

        You can go with them ..

        Manish

    3. kiran bhandari says:

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

      1. You can look at claim settlement ratio numbers from IRDA website

Comments are closed.

Subscribe to Emails

More than 1,50,000 investors across the world trust & read Jagoinvetor articles. Subscribe for emails updates and get instant access to a free ebook.

Jagoinvestor is one of the most trusted personal finance websites which writes on various topics like financial planning, mutual funds, insurance and banking.

 

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today