Can someone help me in choosing Term insurance plan between SBI and LIC ?

POSTED BY Anant ON July 8, 2014 7:40 pm COMMENTS (7)

Hi,

I am 29 yr old, single, working (Business) male with annual income 15L+. about to get married in 1 year.

I want to have 50L or 1 Cr life insurance. can anybody help me selecting the term insurance?

Below 2 term insurances looks good to me

1. SBI Life- eShield http://www.sbilife.co.in/sbilife/content/9_6971

2. LIC’s E-TERM http://e2e.licindia.in:8080/onlinePlansIndex/login.do;jsessionid=FEF621A27AA7F7DCA6E12C3D795216B01

or anyone have other good suggestions?

Thanks,

Anant

7 replies on this article “Can someone help me in choosing Term insurance plan between SBI and LIC ?”

  1. Anant says:

    Hi Hemanth,
    I agree with your point. but in case if one company rejects the claim, then there will be one more option..

    I wasn’t knowing about this, insurance should be 10-15 times the annual income rule . I have just roughly taken 1 cr figure.
    as I am businessman and its too from software industry, so the annual income will vary each year. I cant predict my exact annual earnings.

    what is your view on my insurance amount? how much should i take?

    1. Hemanth Chandra says:

      If you think it is good to take from two companies… take from two companies…. its ok…. declare everything correctly while taking the insurance and everything should be fine….

      The funda behind the number 10-15 is below.

      Suppose a person is earning Rs. 12X per year (X per month). He takes term insurance for 120X. Suppose, now, the person is no more…. and the family of the person get 120X….. If the family keeps this money in a pure FD (which is the safest investment as on today), the family can get the Rs. X as interest per month (if opted for monthly payout) which is nothing but the salary of the person for one month.

      So, the family can lead the same life.

    2. Hemanth Chandra says:

      So, as you are telling that you are doing business and the income is not constant….. better take 10-15 times of the minimum income that you will get every year…. So decide accordingly…..

      1. Anant says:

        Thanks Hemanth. 🙂

  2. Hemanth Chandra says:

    Suppose a person takes term insurance from companies, when something bad happens to the person, then the family of the person should (can) claim at both the companies.

    At that time when the person is no more, there will be emotional unhappiness to the family and they have to claim at two different companies which is a burden for them.

    So, IMHO declare everything true in the application while applying for term insurance and take from one company which you trust and fine with the premium.
    Term Insurance from one company should be fine.

    Also, how you come to a conclusion to take life cover of Rs. 1cr. …. any calculation…. ??

    Generally, it is suggested to take a term insurance of 10-15 times the annual income of the person.

  3. Hemanth Chandra says:

    Both are fine…. Go for the company in which you believe and feel secure

    1. Anant says:

      Thanks Hemanth.
      If i want to have insurance of 1 cr. then is it better to go for 1 company or shall i take 50L- 50L insurances from two different companies? any advantages having insurances from 2 different companies? or any drawback of having a insurance from single company?

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