Term insurance advice needed

POSTED BY rajesh ON September 16, 2012 3:11 am COMMENTS (8)

Hi

I am currently 25 and am planning to take up a term insurace plan of 50L . My question is that the term insurance plan provides one with a cover of 30 years except aegon religare and Aviva(35 years). Considering my age at present i.e. 25 insurance will cover me till the age of 55. So is it advisable going for insurance at this stage and i am not considering any riders as i think amount of cover is already enough.

General info :

Dependent : 2 (Parents) (Not actually dependents ; it is just that i want them to have a                                                                comfortable life in case anything happens to me) 

Marital Status : Single

Companies being considered(in priority order) : HDFC , Kotak, Aviva . LIC is completely a different league. 

 

 PS : Will surely take another insurance plan in future if i take one at present which covers me only till the age of 55 .

PS : To know how naive i am please refer : http://localhost/jagoforum2/need-insurance-and-investment-advice/4487/ . Yes since then i am reading a lot about all this   stuff 🙂

 

8 replies on this article “Term insurance advice needed”

  1. rajesh says:

    and what is your take on Health insurance ? Should i go for a term plan which comes with additional rider benefits like accident coverage , critical illness rider or should i buy a separate health insurance ?

    From what i have read there are mixed reviews about it on internet. Few people like the policies which comes the benefits of additional riders and some prefer a separate Health insurance policy.

    Note : My company provides me with a group mediclaim (Family floater) of 2.5 lakhs and Group Accident Insurance for Employee of 3lakhs

    1. Dear Rajesh, 15 times of your yly income should be your basic sum assured in Term cover. To understand the low claim settlement ratio of Aegon against others, please do note Aegon is just 3Y old company & most of it’s claims fall in early claim category i.e. claims filed within first 2Y of policy.

      For bundling of riders with Term cover, I w’d like to go for standalone plans for Accident, Critical for the basic reason that in case of term plan, the cover is one time affair where as in case of standalone plans, it can be multiple times just like a normal health plan.

      Thanks

      Ashal

    2. Dear Rajesh, 15 times of your yly income should be your basic sum assured in Term cover. To understand the low claim settlement ratio of Aegon against others, please do note Aegon is just 3Y old company & most of it’s claims fall in early claim category i.e. claims filed within first 2Y of policy.

      For bundling of riders with Term cover, I w’d like to go for standalone plans for Accident, Critical for the basic reason that in case of term plan, the cover is one time affair where as in case of standalone plans, it can be multiple times just like a normal health plan. Also the scope of coverage is very limited in term plan riders but the standalone plans are very wide in coverage.

      Thanks

      Ashal

    3. shweta kumari says:

      Hi
      Rajesh

      I think you may go for 10 to 15 or more times of your annual income depending upon your comfort zone for term insurance. You must add your debt(loan etc.)in sum assured for term coverage. you may also decrease sum assure as your present assets belongs to you.

      Please do not take bundle product as if you wish to terminate it for one reasone then all the facilities would be terminated.So,take isolated plans.

      Thank you
      Shweta

  2. rajesh says:

    Hi shweta,

    aegon religare has a very low claim settlement ratio .

    That’s why i reduced my options to HDFC,kotak and aviva .

    Thanks
    Rajesh

  3. shweta kumari says:

    Hi rajesh,

    I agreed with Ashal.Jaha tak co. and amount ka sawal hai:- aegon religare n aviva both are good.You can consider one of them. Amount aapke take home salary par depend karta hai. The thumb rule is 10 times of your annul income.

    Thanks
    Shweta

  4. rajesh says:

    Hmm which insurance company and the amount of insurance do you suggest ?

  5. Dear Rajesh, please go for a term cover & the term of your choice as of now. Say even age 55 is ok as of now. Once there is more load on you in terms of financial liabilities due to increased family size, you may increase your cover later on for age 60 if you feel so.

    Thanks

    Ashal

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