Hi Manish,
I am very much impressed by your work of helping all of us in solving complex financial issues. Thank you.
I am 38 yr old NRI and have one term policy of 10lacs from SBI life.
Now I want to increase the cover. I contacted one agent, he offered me endowment + term combined plan from LIC having 1 and 1/2 times accident cover. That is to pay premium 2.4lacs per year for first 10 yrs, then for next 10 yr it will decrease to 1.9 lacs like that for 35 yrs. It will cover from 80 lacs to 1.3 crores. After 30 yrs on maturity i will get 90 lacs, and 1 cr after another 5 years or else take 1.9cr after 35 yrs. One advantage is i can withdraw upto 10 lacs after first 10 yr, then gradually every year there is chance to withdraw upto 90lacs till 30 yrs (it is useful for children\’s higher education or else even to pay premiums!) It looks interesting as it is saving and insurance. I only have to pay for first 10yrs later i can withdraw from the policy and pay, of course they deduct that money instead of 90lacs I wIll get 50lacs after 30 yrs and 1cr after another 5yrs. Hope mentioned this plan as clearly as possible.
But according to most of your blogs, you recommend to go for term and invest in others like FD, MF…
Here I m bit confused (as I am not a disciplined investor) wether to go for this policy or just take another pure term policy of 1cr from LIC for 30yrs (here it is coming nearly 60000 pa). I feel if I take
above policy, I will have one way of saving and insurance cover that I wanted.
Any input on this will be appreciated.
Thanks again,
Best regards,