Please suggest me a good term plan. I would like to get an coverage of 45 lakhs.

POSTED BY Megha Hannibal ON November 29, 2012 12:17 pm COMMENTS (9)

9 replies on this article “Please suggest me a good term plan. I would like to get an coverage of 45 lakhs.”

  1. Himanshu says:

    see their is no need to worry about settlement ratio if you are disclosing all the facts clearly , true and best to your knowledge… As IRDA is their, every insurance company need to honor the legitimate claim and even in case if company gets acquired by other company, which most people talk about when it comes to buying insurance from new company, the new partners need to honor all the existing policies.. also, a new insurance company less then 5 year old will show bad settlement ratio compared to old players in the market..

    you can get a cover of 45lacs for next 40 years at a premium of some 5800+taxes.. for this i’ll suggest go with Aegon as you can add woman illness rider and critical illness rider also,but do not go for accidental rider.. if you need it then buy a separate accidental policy.

    If you are worried about Aegon’s settlement ratio then you can go for HDFC which will give you a cover of 45 lacs for next 30 years at a annual premium of 6750 + taxes (approx) but no riders are available.

    you can read more about riders on following link
    https://www.jagoinvestor.com/2012/02/life-insurance-riders.html

  2. Amarr says:

    Any Term Insurance will do. What has me concerned is the amount of cover you have decided upon.

    Here is how I came to after calculations. Lets assume your dependent puts Rs.45 lakhs in a bank and is able to get 7% p.a.. Thats about 3.15 lakhs interest and approx. 26,000 monthly. I am not sure if that is sufficient to sustain.

    Add to that existing liability (if any), taxation, longevity and long term care for elder dependents etc.etc.

    Oh..and before I forget, for the sake of simplicity I have not factored in inflation in the calculation.

    Key Points:

    1. Decide on cover first.
    2. Make sure you do proper disclosures and go through medical tests.
    3. Do not mix riders with Life Insurance.
    4. Critical Illness and Personal Accident would be separate dedicated policies which would be cost effective that way.

    My Views, not the RIGHT views 😉
    Amarr Bhalsing

  3. Megha Hannibal says:

    But i see claim settlement ratio for SBI is comparitevely less

  4. BanyanFA says:

    From offline insurance companies, I find SBI Life quite attractive. They also offer riders such as Critical Illness, Accident, etc. which are not offered by many online insurance companies.

  5. Megha Hannibal says:

    Thank you Himanshu for your reply.

    I am 32yrs old. Considering riders and settlement ratio which one is the best?

  6. Himanshu says:

    Dear Bond Bhai,

    That post is almost 2 years old now and the insurance market has became more mature since then..

    premium rates have also come down by approx 1000-1500 INR. as compared to what has been mentioned in the post.

  7. Himanshu says:

    Dear Megha,
    the coverage amount as well as premium need to be paid depends mainly on your annual income and the age bracket you belong to.

    Though you have not mentioned the same, i would suggest you go for either of the these three policies :
    > Aegon Religare
    > Aviva
    > HDFC

    please keep in mind that you can go for a coverage of max 20times of your annual salary/income.

    Also, if you go for Aegon, then do not go for accidental rider, you may take critical illness rider.
    Aviva and HDFC do not have rider option.

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