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POSTED BY ON March 1, 2013 1:54 pm COMMENTS (10)
Hi,
I thought of going for HDFC Click2protect term plan. But even for 1 crore there is no medicals (http://localhost/jagoforum2/hdfc-click-2-protect-without-medicals/6771/). Finally I have decided to go for Aegon Religare iTerm plan for 1 crore SA. I am stuck up on below 2 points. Can you please helpe me out
1. Aegon provides coverage upto 75 years of age. or 20 25 30 35 40 years. I am confused which policy term is better to get maximum benefits?
2. Annual payment or onetime payment? Which is better to get maximum benefits
Waiting for your valuable suggestions
Thanks,
Chetan
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Dear Manish, thanks a lot for a very detailed explanation. That ‘s really cleared my doubt. I am buying the iTerm tomorrow with 35 yrs of policy term..
Thanks to Ashal, FFC, Ramesh and everyone who helped.. Love you all 🙂
Long live Jagoinvestor!!
Dear Chethan, I do hope deart manish’s detailed reply has quenched your thirst for knowledge. if you need PEPSI – DIL MAANGE MORE, please do tell me. 🙂
Thanks
Ashal
Chetan
Thats not the right thinking and a flawed one .. Let me clarify .. What you get is what you pay for . You are free to take it till 75 yrs ! .. Not an issue, The premium which you pay factors in all this . The option of taking it till 75 yrs , looks attractive to you , because you have in your mind somewhere assumed that “what if I die before 75 yrs” .
However Note that you will be paying a “PREMIUM” for that, and the chances of you dying before 75 yrs will be very very low , assuming the future of 2040-50 . The life expectancy at the moment is 70-75 yrs , forget future , it will be 80-85 yrs .. and when you already have access to good health care and good life style , its mostly in favour of insurance companies itself .. Not sure if you are getting what I am saying , but the point is .
Looking at this product for what it offers and what its main functionality is , and a term plan is taken to make sure that you cover your life , till the time people are financially dependent on you. which is till retirement .
If you look at the “profit” angle, be assured that you are not going to benefit because Acturies are much smarter than us and you cant beat them 🙂 .. Actuaries are those professionals who help a insurance company to set the pricing , find out if a customer should be accepted or not .. and if they are accepting you as customer and allowing you to take insurance till 75 , then there is a very very very high chances that you will live till 75 and keep their pockets filled 🙂
And now after answering this, I think its time to make an article out of it. Thanks to you to give birth to this idea 🙂
Manish
Why not read up a bit more on what Actuaries do? How do they analyse and assess?
That should provide good supplemental knowledge.
Although, I do think, pure term policies are easier to analyse and manage, than the endowment and annuity products (from the point of view of an actuary). In these, the main thing is the competition and the margins.
Dear Ashal, you just read my mind. I just want to make sure that if i am not around family should live happily.
I know my family. They will be happy if am here. I don’t understand why you raised this question. Is it wrong/not good to have coverage until 75? I just want to understand the things.
PS: I am still beginner. Takes time to understaond all insurance related thing and to bcome like you people (like Manish, FFC, Ashal and many more)
Dear Chetan, so you are dead sure to make your family, you should die. As you ‘ll die, your family ‘ll file claim & ‘ll get money from your term cover & all the remaining members of your family ‘ll live hapily in your absence. As you the head of the family, had done the right thing to purchase a term cover till the point that you w’d die & family ‘ll get sum assured.
Am i right in my understanding?
Your’s reply is a typical case of Indian thinking just like that Maruti advt., ” Kitna Deti Hai?”
So by hook or by crook, if it’s Insurance, return should be there.
This is your own thinking but please ask your family members & tell us in what scenario, your family ‘ll be happy? You are here or you are not here?
Thanks
Ashal
1. What will be the difference between Opting for Insurance upto 60 years (assuming your retirement age) and 75 years?
2. What if you live beyond 75 years? Will the extra money paid as premium justifiable in that scenario? Calculate the time-value of those premiums and see if that gives you a better benefits vs costs.
3. You can check these values by using their One-time Values also, which are just their own assessments of those time-value money.
check and post here.
Manish, we were missing you from sometime. Its nice to have you back 🙂
1. you are right. But suppose if i go for upto 75yrs then family will be getting more benifits than going for upto retirement. Even after retirment family ll get benefits which is good. It’s just my thought. What you say?
2. Agree with you.
Upto retirement a term plan is a necessary expense. Beyond that if you have enough corpus saved up it is an unnecessary expense.
1. Term should be upto your retirement age .
2. You should go with yearly payments ..