Suggestion on Term Insurance .

POSTED BY Mukesh Agarwal ON April 1, 2011 2:51 pm COMMENTS (7)

Hello Manish & All

I am 25 years old and decide to take Term Insurance of Rs 22 lakhs for 30 years and split this into two companies

One is LIC Anmol Jeevan – I (10 Lakhs for 25 yrs, Premium-Rs 2861/year) & another is

Kotak Term Plan (12 Lakhs for 30 yrs ,premium-Rs 2236/per year )

Total premium of Rs 5097 yearly for SA 22 Lakhs.

Is this planning is good for me  or should i have to do some changes in this or take Term plan from another company or somethingelse. And also suggest me is there any Term plan can i take more than 30 years.? please give your valuable suggestion .

I will be greatfull to all of you..


Mukesh Agarwal.

Hare Krishna.

7 replies on this article “Suggestion on Term Insurance .”

  1. Kaushik G says:

    Hi Manish,
    Do you know if it is possible to buy an LIC Term Plan without the help of any agent? I registered on their website for buying a term plan, and I got a call today explaining the details of the plan, but it appears to be from a sales agent and not an LIC employee. Is there no other way for this?

    1. SK says:

      LIC as on date does not have an online term-plan.

      In my experince, its very very difficult to avoid agents in LIC. Even if you visit their office(LIC direct), they would suggest you name of some agent to come through. (And in a number of cases, these agents are their spouses/brother-in-law/sister-in-law/friend ;-).

      I ssupect that the powerful agent lobby of LIC is not allowing their online term-paln to be launched.

  2. ashish9750 says:

    dear mukesh,
    in your planning if u choose only single company policy of lic amulya jeevan, bczz if u choose this policy your premiam will be less and realibility of lic, choose only single policy of lic, bczz every year lic setteled highly claim . but other private company r new in this market and claim is very poor…..ashish gupta

  3. ashal jauhari says:

    Dear Mukesh, I understand your point of split but my dear friend, please look deep into the cover you are going to purchase. At your age of 25, you are either unmarried right now or may be just married. Due to increase in your family size as well as your liabilities for home loan, car loan etc. your current cover of 22L Rs. ‘ll fall short. There is another angle to this tale – Inflation. Yes Inflation ‘ll also impact your sum assured which seems enough right now to you may not be enough after 5-7 or may be 10 years.

    Think over it.



  4. Asif says:

    Amulya Jeevan from LIC is for 35 years but it requires a minimum SA of 25L.

  5. Mukesh Agarwal says:

    Dear Ashal Jauhari
    Thanks for your Reply.

    First- I split the policy into two part because, EX-at the time of claim if Kotak rejects the claim due to any reason and LIC settle the claim or vice-versa, then the nominee can reclaim from KOTAK on the basis of LIC claim Settlement.

    Second- Suppose if i am unable to pay the premium in near future for any reason, then i can discontinue one policy and continue the another one.

    Only this is the reason for spliting the policy.

    Hare Krishna

  6. ashal jauhari says:

    Dear Mukesh, As you are selecting a policy from LIC & another from Kotak, I’ll ask you to go for a 25L Rs. 30 Y term, single cover either from LIC’s Amulya Jeevan or from Kotak Term Plan. The reason is simple, the single cover of 25L Rs. is higher than what you are going (22L Rs.) with your split cover yet the prem. is cheaper than your split cover.

    Sample this –

    Kotak Preferred Term Plan 25L for 30Y term Prem. including service tax = 3778

    LIC Amulya Jeevan = 6525



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.