New Term Insurance Clarifications

POSTED BY Vinodh Kumar ON July 2, 2012 5:54 pm COMMENTS (3)

All,

Currently, I have Jeevan saral policy paid for 3 Half year premiums (30325INR). I decided to stop this policy [Even though I don’t get single rupee] and take the Term Insurance. Now my questions are

1. Jeevan saral policy: For FY 2010-2011 I used the premium paid 60650 for my IT tax exemption . Now what will be the effect if I stop the policy which I already claimed the exemption benefit.

2. Term Insurance: I gone through jagoinvestor blog/forum/comments about term insurance. But can you please highlight 4-5 top points to consider to choose;
a. Preference of insurance company [Claim Ratio 1 factor] b. Offline Vs Online [Online has low premium]

3. I am 26, Single based on the jagoinvestor insurance calculator[till my age 58] the insurance value should be 1 Crore approx. Now whether I have to opt the complete money with single company or I have to split it into two companies. [Even I am waiting for LIC online term insurance]

Regards,
Vinodh Kumar

3 replies on this article “New Term Insurance Clarifications”

  1. Dear Vinodh, Instead of waiting endlessly for LIC online, please cover yourself from other insurer. As & when LIC comes with it’s plan & if it fits your requirements, you may purchase it & dump the other plan.

    Regarding term plan, as there is no return of money is involved, so the people prefer to go with the insurer which is offering the cheapest prem. for the given sum assured & term combination.

    Regarding claim settlement – My take is to go for a 1C policy from the choice of your online provider as of now & purchase a 5L cover of Anmol Jeevan from LIC. I’m recommending LIC’s Anmol Jeevan not as it’s great product but for the basic comfort of most of the people that LIC ‘ll provide the claim (reality may be different).

    Thanks

    Ashal

    1. Vinodh Kumar says:

      Hi Ashal,

      Thanks for the reply. I am not specific to LIC, when one declares the facts during buying the policy doesn’t matter whether it is private or public. Also can you please let me know on your comments on the below.

      1. Jeevan saral policy: For FY 2010-2011 I used the premium paid 60650 for my IT tax exemption . Now what will be the effect if I stop the policy which I already claimed the exemption benefit.

      1. Dear Vinodh, as the plan in question is not offering any surrender amount. You need not to worry. Please sit easy as the income tax benefit was claimed by you on this policy when this was active.

        Now you are not claiming any Income Tax benefit from this policy & this is also not active so no problem at all for past actions.

        Thanks

        Ashal

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