LIC Amulya Jeevan + Kotak e-Preferred Term Insurance – how good is this?

POSTED BY monGenie ON December 24, 2011 12:28 am COMMENTS (9)

Hi Money Geeks!
We are planning for term insurance of 72L for my husband and are about to finalize a combination LIC Amulya Jeevan (25L) and Kotak e-Preferred (47L) term insurances. What do you people think? Are they good choices?
While researching on Jagoinvestor, I have realized that LIC online term plan is coming… premiums will be 15-20% lesser than what are right now. Can we convert/change our LIC policy later?
Thanks!

9 replies on this article “LIC Amulya Jeevan + Kotak e-Preferred Term Insurance – how good is this?”

  1. Deepak Patil says:

    Dear Ashal, your above reply is based on assumption or its a fact? Why would a new insurer ask for our prev policies? It should be none of their business. What if we decline to share those details?

    Also I never saw any agent writing down details of prev policies, so on what basis they share details with other insurers?

    Insurance is a subject matter of solicitation, one should never force me to buy insurance based on my prev policies.

  2. Dear Pavan, While applying a fresh policy, the new insurer asks for your prev. policies. At the time of a claim this small info is used among insurer to contact each other for the claim filed. Accordingly, you may understand what ‘ll happen then.

    Thanks

    Ashal

  3. Dear Mongenie, my reply is same as given to dear Pavan.

    Thanks

    Ashal

  4. Dear Pavan, Here is my take –

    1. LIC’s good claim settlement record is a 1/2 truth. As per IRDA’s report, the average sum assured comes out around 93K Rs. for LIC for total filed claims, where as for Aegon Religare it was around 11L last year. There is more to it – when a new co. receives just 50 claim & out of which it delays or investigate only 25 claims, the ratio of claim settlement ‘ll show only 50%. In case of old cos. The no. of claims filed ‘ll be say 1K or 2K or 5K & out of which even if only 100 claims are denied or pending, the ratio of claim settlement ‘ll indicate 90% or better.

    2. I do agree for suspicion of online term covers. barring few lucky ones, most of the online buying experiences are very fearful & in most cases, prem. loading was done. So I ‘ll prefer a little bit costly offline policy from the same insurer.

    3. Well splitting the cover has it’s downside risk too. What ‘ll your family do, if the claim filed with the preferred insurer is rejected itself & which ‘ll lead to claim rejection from all other insurers.

    Thanks

    Ashal

    1. Pavan Avala says:

      Doubt regarding your following statement

      “3. Well splitting the cover has it’s downside risk too. What ‘ll your family do, if the claim filed with the preferred insurer is rejected itself & which ‘ll lead to claim rejection from all other insurers.”

      When we apply insurance claim to all insurers, do they interact with each other or contact higher/central authority before settling the claim?

  5. Dear Mongenie, why are you not going for a single cover of 72L from Kotak itself? Can you reason the split? Regarding LIC’s online term cover, Yes it was in news around Diwali but nothing has come out from LIC’s moth till date on this online term cover. If you want to wait, you may do so.

    Thanks

    Ashal

    1. Pavan Avala says:

      Not to doubt your suggestions. To understand, I am asking following question.

      I too have similar doubt that what are the advantages of having single term plan with huge cover instead of multiple smaller covers?

      My reasons for having multiple smaller covers are
      1) TRUST on LIC: LIC’s claim ratio is good and smooth in claim settlement (heard). So, many agents (need not be LIC agent) suggest to have at-least one LIC policy. As it is costly to get single LIC policy for huge (targeted) cover, so, at-least having one policy with smaller and more guaranteed is better (I thought).

      2) Suspicious about Online Term Policies: As Online policies are new and very cheap, seriously doubting their claim settlement ratio and smoothness in claim settlement.

      3) As per your earlier statement “Life insurance companies are not there for charity, they do their best to reject claims”, having multiple policies gives more chances of getting some settlement amount instead of either getting full or nil.

      What do you say? My understanding is wrong?
      Please provide your comments.

    2. monGenie says:

      Hi Ashal,
      First of all, thanks for your help!

      My reasons for split are same as that of Pavan.

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