POSTED BY February 1, 2014 5:58 pm COMMENTS (7)ON
I am 37 year old and want to take term insurance covering maximum age but i am confused weather to go for term insurance with no return or for term insurance which give back money after completion of term like iraksha trop of simple iraksha. (i want to pay for 10 years only ie years while i am earning).
Secondly i am thinking if I go for term insurance without return and depositing remaining amount which otherwise i will give extra for money back term insurance; i will accumulate more then what i will get in money back term insurance.
can some one have calculation of this and guide me with calculation taking my date of birth in consideration i.e 10may1976.
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7 replies on this article “Need a term insurance covering maximum age ?”
Dear Singwithme76, also look this way, you paid 8-9 prem. and died. the sum assured is same but you paid higher prem. than regular one due to limited prem. payment. 🙂
Dear Singwithme76, what ‘ll be the value of your sum assured @ age 70 or 74, if we assume your death happens at that time?
Purpose of term insurance is to provide financial security to your dependents in your absence.
Dependents could be your Kid, Spouse and Parents. Ideally you need insurance till your Kids become independent so that your family is financially secured. No need to go for Age upto 75.
Since you are 37, choose a term for another 23 years (If you think that by that time your Kids will be independent and will be earning). Higher the insurance higher the premium. Also think about the assets (Property, Savings, Bank Balance etc) you will generate in these 23 years which anyway will be good enough for your dependents after you.
Invest wisely and choose an appropriate term for insurance instead of maximum.
Dear Singwithme76, why do you want to get cover for age 75 or 80 or 100 under your term plan?
dear thanks for ur reply let me inform u that i am looking for cover upto 75 because in ireksha plan if i pay uptill 75age my premium will be approx 8000/- for 50lac. and if i pay limited time i.e for 10years and take coverage upto 75age i have to pay 19000approx. if i calculate it our 75age i am paying just 4500approx per year over75years coverage is’t it wise decision? to go for limited year payment and take longer coverage so that if something happens to me , my sibling gets benefit meantime ur also geting tax rebate and bigger coverage 50lac which normal policies (life insurance traditional or ulip ) never provides…
Awaiting ur comments…
If you want to pay for 10 years, then you get insurance also for 10 years term .. but if thats the period you are going to be earning for and retiring after that (at 47, really?), then you need insurance also for 10 years only.
After that you can continue but it will be purely like purchasing lottery tickets.
1. In my calculation if you buy a pure term plan and start a monthly SIP on the extra amount that you would have given on a policy that guarantees return of premium you will earn more.
2. I do not understand your thoughts on covering till maximum age, a term plan should only be covering you till the age you think you will be earning. Most Indians retire at 60 and take up a job later but give up working sometime after 65. Hence a policy covering you after 65 is meaningless. Considering you are 37 you should have a cover with last premium paying term on age 59 to 64
Since I work with a rival Insurance company it would be not fair for me to comment on iRaksha policy. You may contact representative of that company to understand the policy in detail.
Voluntary Disclosure: I am a LIC of India agent.