Is my life insurance sufficient ?

POSTED BY Biswajit Das ON February 1, 2013 11:21 pm COMMENTS (5)

Hi All !!

I have taken a term insurance Kotak E-Preferred Term of 75 Lakh in 2011 for 25 yrs.Apart from this,I have 2 LIC policys (Jeevan Anand & Endowment plan) of SA 10.5 Lakh and 18.5 Lakh in various ULIPs of ICICI,HDFC & SBI. I am 29 yrs old with my wife(non working) & 2 yrs son.I have a SBI home loan of 20Lakh with a linked insurance.My monthly expense incl EMI is 40000. Now my questions are

1.Is my term insurance cover sufficient?

2.Though I’ve taken Kotak insurance,after issuing of policy,I was not that comfortable.As they didn’t have any medical checkup of mine.Hence there may be some complication for claim settlement though all information given by me were 100% correct.Hence i have 2 options (a) discontinue this insurance and start a fresh one with sufficient or present cover, or (b) continue with this and start another one for balance amount of cover. After continuing for say 10-15 yrs,I can discontinue one of those. Which option is better? and in place of Kotak, which is most preferred term insurance right now?

3. Is it wise to continue with the ULIPs as most of them have not given any return over a period of 2.5-3 yrs.The agents say,I’ll get a good return if I pay for complete policy term of 5yrs and keep them for atleast 10yrs. My ULIPs are only for investment purpose. If they are to be surrendered,then what are other options of investments, purely for long term purpose like child’s education.I am already having SIPs.

Sorry for writing such long questions but I am really confused, as I had to pay 75000 ULIP premium during Jan and I have not been able to make my mind yet.Please help


5 replies on this article “Is my life insurance sufficient ?”

  1. Kotak Support Team says:

    Dear Sir,

    We request you to write us on along with policy no. and email ID for better assistance.

    Kotak Support Team

  2. Dear Biswajit, I’m hearing this online LIC term plan since 2011 & it’s almost 2Y. Many persons like you are waiting for it. When this wait ‘ll over, I do not know. I’m comfortable for my own life in the hands of pvt. insurers as I have declared my details honestly & after that my prem. was loaded up due to my job profile. I happily accepted & now covered for the same.

    My own insurer is Aviva, you may opt from any online term cover as per below list. This is an indicative list only & not the order of preference.

    Aegon Religare



  3. Dear Kaushik, What’s your mly income. From your expense figure of 40K, if I assume your mly income as 80000 Rs., your yly income comes out around 10L Rs. roughly. @ 15 times multiple of yly income + home loan liability, your total cover requirement = 1.7Cr. Rs.

    In my personal opinion for you, purchase another term cover of 1Cr. Rs. to make it Kotak + new cover = combined term cover of 1.7L Rs.

    Surrender all those crap policies be it Anands or Tarangs or ULIPs. Even a simple product like PPF can generate far higher return than those traditional plans.



    1. Biswajit Das says:

      Thank you Ashal for your reply. Can you suggest my second term insurance..heard that LIC is coming up with online term insurance.

      1. Dear Biswajit,

        Use this calculator find out your additional insurance requirement exactly

        LIC online plans will not take off as their strong agent base will and have opposed it.
        Don’t wait for that. Take more insurance immediately.

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