Term Insurance for person in Merchant Navy

POSTED BY Rahul ON August 8, 2013 11:37 pm COMMENTS (8)

I have a query for long but unable to find a satisfactory answer..want to have a term insurance plan with aviva/religare/LIC…LIC having the highest % of claim settlement and contact/agent to talk to my parents in case of death unlike other online plans… the problem is I am in merchant navy…

I don’t pay tax as i earn in dollars and enjoy benefits of NRI…are these term plans allowed for NRIs or not…insurance companies esp religare mailed that yes they do for merchant navy but i still doubt it that claim settlement may be an issue then and can be denied on the grounds of me being NRI…my friend recently got one from religare and they have mailed that it is accepted..

haven’t got satisfactory answer yet from anywhere… please help…

8 replies on this article “Term Insurance for person in Merchant Navy”

  1. Mohit Pandey says:

    Rahul, Please read the below airticle, it can help you to purchase the right term insurance:-

    http://www.financebandhu.com/2013/08/term-insurance-points-to-remember.html

  2. Rahul says:

    thanks Gotu.

    i just had a telecon with religare executive mentioning my job details and other factors. i had been told that they provide this plan to merchant navy officers and even to army and airforce officers. so there should not be a problem.
    still will do more research before going for the plan. neways LIC having the highest claim settlement ratio, i would like to know whether it works same for them. as with LIC, there is no reliable customer care and agents tell yo what benefits them.
    LIC policy is best told by someone having detailed info about the field and surely agents are not one of them.(personal opinion though)

    inputs are welcome.

    1. Gotu says:

      From personal experience:

      Pros of LIC:
      1. Largest and oldest life insurance provider in India
      2. Very high claim settlement ratio, hassle free settlement. Forget about official figures, I don’t remember if someone from my family or friend circle have not received claim from LIC, but I know many of them who have got claims settled very easily, without any problems, agent did everything for them. In current online era, its even more easy and fast…which is very unlike for PSU/semi govt. organisations.
      3. High profits, big network, no. of policies to chose from and many more….
      Surely you have been told the same by your “expert” friend. Everything is true. but lets see the other side…

      Cons of LIC:
      1. Most of the insurance plans are mix of insurance + investment type. I hope no more explaination required on this.
      2. For regular plans as well as term insurance plans, LIC premiums are very high…. For the reason high agents commission, online options not available, old life expectancy tables used, etc etc….
      3. Normally disclosed claim settlement ratio are generally for all types of policy i.e. ULIP, inv+insu. kind of policies, as well as term insurance policies…. As LIC claims are normally for first two kind of policies, Sum assured is quiet low and LIC pays it happily… In India, Serious awareness about term insurance has been generated just few yrs. back(in true sense its still amongst very few people). So claims for pure term insurance are still very low… So referring to claim settlement ratio may not be a wise idea…

      There can be many more arguments in favour as well as against, and it is highly debatable issue…. Read on past discussions on this and other forums, you will get lot of info. over this…

  3. Gotu says:

    Hi Rahul,

    I am not an expert, but with the little knowledge of term insurance that I have, I can safely say that while filling the application form once you mention all the correct information about your job, etc, and after that if your application is accepted, then there is no reason for claim rejection on the grounds of your profession or residential status.

    Regards,

    Gotu

  4. Rahul says:

    Dear Ashal and Banyan FA,
    Thanks for the reply

    i am not technically a NRI in conventional sense. I dont live outside India. being in merchant navy allows me to spend 3-4 months at my home in India. I have attained NRI status only because my job needs me to stay out of India for more than 186 days that too not in any country but in international waters most of the time and that too on ships.This type of NRI status is creating all the ambiguity

    Anyways all the companies are providing term insurance for merchant navy officers (better term in my case than NRI).

    i am only doubtful about claims since all of them have agreed for the term plan, i want to confirm that it should not be rejected later when needed on such useless grounds.

    if i get a mail(or hard copy on their companies pad) from their executive mentioning that merchant navy officers are eligible for this, will this help at a later stage in case of an unfortunate incident?

    sorry if i am wrong and do reply.

  5. BanyanFA says:

    Hi Rahul,
    You can try Bajaj Allianz. I have been able to get his done for one of my NRI clients.

  6. Dear Rahul, as you are NRI, nor many insurer ‘ll come forward to offer you Term cover. Please accept the one you are getting from Religare or check with LIC.

    Thanks

    Ashal

  7. Rahul says:

    would like to mention that i live in India and spend around 3-4 months per year at my home town.

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