Clarification on term insurance SA

POSTED BY praveen ON November 5, 2012 11:30 am COMMENTS (4)

Hello Jagoinvestor readers,

I would like to congratulate Manish for his work educating on Personal Finance. I have question regarding sum assured of term insurance plan. My CTC is 11L what would be eligibility of SA. As I read through the blog it is recommended to split total SA across two companies. After reading lot of reviews, I have finally decided to take term insurance of 1Cr from AVIVA I Life and 50L LIC Ammulya Jeevan for term 35 years(this is my conservative choice). would like to is it possible to get total cover of 1.5Cr for my CTC?  or will LIC object to give the Policy since I will have 1Cr SA from AVIVA since lack of eligibility ? Please through some light ? 

4 replies on this article “Clarification on term insurance SA”

  1. Dear Praveen, if I’m in your position, I w’d purchase just 5L Rs. anmol Jeevan from LIC & 1.5Cr. cover from Aviva. As your yly income is 11L Rs. you may get cover of 2Cr. Rs. very easily.



  2. I suggest you do this

    1. Take the 50 lacs term plan from LIC first

    2. THen take 1 crore term plan from Aviva , disclose it while taking the LIC one .

    3. I am sure you will be able to get 1.5 crores given 11 lacs of salary .


    1. praveen says:

      Thanks Manish. I stay in Bangalore, I’m wondering it would be better take LIC policy from hometown or from B’lore. since I know the LIC agents from home town they may give good service and would be easy for me to follow-up. Is it right thinking , will it create any issues in the future if I take the policy from home town if god forbids if something happens in which case settlement would be hassle free ?

  3. Biswa Singh says:

    Your term insurace eligibility depends on your salary. I am sure you will get 1.5 Cr eligibility. If you are not sure then check online eligibility with Aviva.

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