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POSTED BY ON May 26, 2013 12:46 pm COMMENTS (9)
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Sir,
Few times back, i took the subject “Insurance” as completely for granted, but the more I have tried to understand i have realized that it is the most important field to be focused for anybody reasonable & foresighted. For past 2 years i have delved deep into the subject & have found that a person must have the following types of insurances(my viewpoint), to fulfill all types of contingencies.
Term plans ,with disability & wop clauses( to pay for policies when disabled), dedicated critical illness & personal accident policies (take joint if possible) & health plans.
Now presently, I have the following policies:
1 .Term insurance:
ICICi pru : 40 lacs (Premium 13000)
Aegon religare : 40 lacs (upto 7 years)(premium 10000)
LIC (Jeevan Mitra triple cover endowment plan): 21 lacs from (premium 33000)
Bajaj Allianz : 25 (me)+20(for housewife) Joint term plan (planning stage) (premium 14000)
Apart from these i have plans for purchasing “dedicated” policies for joint Critical Care illness & Personal accident or disability, from:
Max Bupa Critical Care (Joint policy): 7.5 lacs S.A (premium 4037)
Tata AIG personal accident (Joint policy): 30 lacs (premium 5400)
Health insurance:
Oriental Insurance: 4.5 lacs floater with my parents included (company provided but will use the portability feature to convert it to personal)
All this will cover me sufficiently for around +1 crores with personal accident or disability amount to be around 50 lacs + waiver of premium on Critical Illness & complete disability on most policies..
NOW MY QUESTIONS ARE:
1.) Is it really wise to purchase a policy on features, even if the company has got low CSR (like Aegon religare), considering i didn’t conceal a single drop of information & had medical tests done for each?
2.) What are the cons of purchasing from too many companies, apart from increased paperwork..do they all require a look at the original FIR, Postmortem reports etc,coz i’ll be having only one original copy..
3.) I have tried to be prepared for any contingency in life. Am i on the right track, I mean i have only one endowment plan rest are with no returns?
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Dear Neeraj, I have a term cover from Aviva for 50L Rs. Earlier I applied for 1.1Cr. To consolidate my term cover. Due to my job profile, the prem. was loaded heavily & the prem. went up 3.5 times of the original prem. So I settled for a lower sum assured of 50L Rs. Before this policy, I was having a 25L Rs. sum assured purchased in 2006, which was OK to me as per my requirement at that time. Now as I could not opt the 1.1Cr. cover due to heavy loading, I’m continuing the 2 policies. As of now I’m out of india. Once I’ll be back in India, I’ll consolidate to my original planned cover of 1.1Cr.
Please do not think that I’m doing different than what i’m preaching you. I intend to do the same. The only thing is being out of India, I can not do it right now. 🙂
Thanks
Ashal
Dear Neeraj, please read my reply again. I already said that if your family is comfortable with the Idea of multiple policies (I’m not discussing health or accident insurance, only life insurance), there is no harm & you should enjoy what you are doing.
Thanks
Ashal
Sir,How have you planned your insurance?? just asking to get a brief insight of it.
and it is against KISS principle.
Mr.Bharat Thans for reminding of the KISS principle..read it long back..anyway The thing is…Nothing in this world comes without some pain ..& Insurance is a subject where you can’t be just simple,infact no insurance policy itself is simple(drawing money out of somebody’s pocket is never simple)….I mean it has to cater to different contingency situations & all the clauses in policies have to be understood in detail..Now no single policy in the market is flawless or covers all the demands..like disability benefits,critical illness,waiver of premium,higher claim settlement ratio’s,low premiums etc…so i had to choose between simple or being stupid trying to be simple like the rest 80% who take 1 or 2 policies for 4-5 lacs from LIC & boast of being sweet & simply insured & are ready to defend their stands to any boundaries…I am not arguing coz everybody is free to have an opinion ,its just that..What will Look SWEET won’t be ever SIMPLE…and again like i said for different situations i had to take multiple policies
Imagine a person with 3 term insurance policies. His spouse is well aware of the details of the policies and even knows the procedures to make a claim. Now the guy does. Wife makes the claim.
In each claim form details of the other policies have to be entered. So in principle one insurer can contact the other and share information.
Ease of claim settlement depends on how you die (and when you die. That is less than or more than two years after issue of policy). Even for common death (in hospital due to illness) the insurer can seek any past information from the nominee. if one insurer seeks this, the other insurer can also do, either independently or after discussion with other insurer. Nothing in law which prevents this. Let us say all the information is available and clean so the claims are processed.
I would still go with single insurer only because, i don’t know about you, but I buy insurance because I want my family to receive the money asap after my death.
Multiple insurers complicates claim settlement and probability of delay is high depending on the mode of death.
Since I cannot control the way I die I would prefer to keep it simple.
Good luck.
btw here is some food for thought:
http://freefincal.wordpress.com/2013/05/04/the-games-life-insurers-play/
oops. I meant the guy dies! He has to!
Dear Neeraj, you have purchased insurance for your family’s financial security. When there is a claim, you are no more. In this case, how can your family pursue with 4-5 life insurers? if your family is comfortable with the Idea. so be it. else, it’s time to consolidate your life Insurance policies.
Thanks
Ashal
Sir,
I understand ur concern but as a part of being prepared for any contingencies..i have long prepared a consolidated Excel sheet which has all the required information of all my Insurance policies,insurance amounts, benefits assigned,Hyperlinks to login pages for claims,whom to contact in emergencies regarding each policy,my bank accounts,credit cards,passwords etc.also i have circulated the sheet to my parents & brother as well & from time to time i keep my wife showing how to use the information.The thing is that for different types of insurances i had no option but to choose from different insurers,but the only thing is that,Is it the perfect way to prepare for any future contingencies..?should i advise my brother & friends to plan in same fashion or what??also plz note.. now i’ve exhausted my future options of taking any further policies in future,what if some more attractive policy is launched in future by any supreme reliable insurers like LIC..