TERM INSURANCE PLAN & INVESTMENT

POSTED BY Manoj Kumar ON October 25, 2012 4:48 pm COMMENTS (8)

Dear Mr Manish

Personnel brief :

My Age is 35 Yrs. (Family – Spouse & 1 Child (6 Yrs),  Income 3.20 Lacs per year.

 

Q. 1 –  We make  a plan to purchase Term Insurance Plan to protect Life.  I am looking LIC, HDFC Life &  Birla Sunlife. Which plan is the best with reason.

 

Q  2. – Our plan about purchase a flat  within 1-2 yrs. (Net cash require in hand Rs 5 Lacs minimum). Can you tell me the best plan to invest in which provides maximum return after 2 years on maturity.

 

[Right Now Child Education Purpose invested in Mutual Fund through Monthly SIP (ICICI Prudential Discovery Fund- Growth– Rs 1000 + HDFC Top 200 Fund Growth – Rs 1000) ]

 

Thanks & Regards,

8 replies on this article “TERM INSURANCE PLAN & INVESTMENT”

  1. Manoj Kumar says:

    Dear All,

    Thanku very much for all your views share with me. I have choose two Online Term Insurance Plan (SA 50L) i.e. Aegon or Aviva. This week may be purchase.

    Suppose Ex. i choose Aegon. Can i pur. addl rider i.e. Diagnosis of terminal illness. If the policyholder is diagnosed with any of the terminal illnesses, an amount equal to 25% of the sum assured will be paid. This amount will be reduced from the death benefit amount in the policy and no further premiums will be charged once the terminal illness claim is accepted

    Only i thought CSR which is the best. Pl suggest, what is the best option in two categories & why.

    Thanks.
    Manoj

  2. Dear manoj, what you have done after the discussion. Please update us.

    thanks

    Ashal

  3. Sandeep says:

    Hello Manoj,

    I have gone thr most of the comment on this blog. Aegon & Aviva are the cheapest online term plan.
    CSR- forget about it. its a fake or may be old data or its a mix data incl other insurance claim, not only term ins data.

    e.g. For age 35, SA-1Cr, Duration: 35yrs, premium of Aegon/Aviva would be approx. 11k wherein for other providers its more .

    Product is same. only coating is different on it and accordingly price. All company follows IRDA guideline, Only thing, these company’s are new.
    Similar opinion (trust) comes when ICICI, HDFC…comes into banking sometimes back.

  4. Viswa says:

    Hi Manoj,

    Can i know, is there any specific reason for going for LIC, HDFC Life & Birla Sunlife only when there are few other insurance companies offering Term insurance (online) at much more lesser premiums.

    Thanks,
    Viswanath

    1. Manoj Kumar says:

      Hi Vishwanath,

      I think LIC, HDFC’s settlement claim ratio’s more than other scenerios & V.Imp Trust the the above two segments in future (after 25 yrs) not disappear.

      Pl suggest if anything else the best plan.

      Thanks to all your views share with me.

  5. Dear Tapas,

    You should take into account your annual income and financial liabilities before deciding on the cover amount.

    Our online platform, http://bit.ly/IgvQDe, takes these factors into account and recommends a cover that is right for you. Additionally, there are a few things you should consider before choosing a term plan:
    1. Claims performance
    2. Service reputation of the brand
    3. Convenience offered in terms of medical checkups, online sign up/ payments and services

    You may consider ICICI Pru iCare, a term plan from ICICI Prudential Life Insurance which has been chosen by consumers as the “Product of the Year 2012” in the Life Insurance
    Category based on a survey of over 30,000 people by Nielsen.

    ICICI Prudential Life Insurance has a healthy claims record as cited in the following news articles http://bit.ly/HejDZA and http://bit.ly/HTbw7S.

    This plan can easily be purchased online and allows you to get a cover of upto 1 crore without any medical tests. This makes it very easy and quick to get protected.

    To find out more about this product and to see if it suits you, please visit http://bit.ly/IgvQDe

    Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

    Warm Regards,
    Life Insurance Help
    ICICI Prudential Life Insurance

  6. BanyanFA says:

    Hi Manoj,

    I can probably respond to your second query – 2 years is not a long time horizon to invest into Equities, I would suggest to invest into FDs in your wife’s name for 2 year horizon. In case she is not earning, it would provide you tax free return of around 9-10%. Alternatively, you could invest around 10-20% into Monthly Income Plans for 2 year horizon.

    Regards
    Banyan Financial Advisors (BanyanFA)

    1. Biswa Singh says:

      I think you need to check other companies to comapre the premimum. I think Bharati AXA also you can check as the premimum is very cheap. Also you need to see the settlement ratio.

      Keep in mind that tax “You will not get tax benifit if you open FD in your wife’s name”. I think BanyanFA is not clear about it. If the source of your money is you then the income from your wife’s FD will be clubbed to your income and will be taxable.

      If you want to save tax then please invest in DEBT funds.

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