Term Insurance Query

POSTED BY Manoj Pote ON September 26, 2012 12:05 pm COMMENTS (7)

Hi All,

I am considering buying Term Insurance. At 38 years with 1 child (soon to be 9yrs) and spouse who is home maker, I have several queries regarding the term insurance I should buy. Appreciate feedback/comments for JI members.

1) Is LIC the best term life plan to go for? I know it is the expensive of the lot w.r.t coverage you get for premium paid.

2) If not, which are the others who have best claim settlement ratio.

3) Is it advisable to go ahead with a combination of LIC + Private Plans? Rationale: In case LIC accepts and pays the claims, same can be referenced with the private provider in case they reject the claim.

4) If I apply for any plan now, and my status changes to NRI, how do things work out? Is any action expected from my end to keep the policies active? Does anything change at all?

Regards,

Manoj 

 

7 replies on this article “Term Insurance Query”

  1. Manoj Pote says:

    Dear Ashal,

    Appreciate your sarcastic but honest answers. Keep them coming…

    Regards,
    Manoj

  2. Dear Manoj, here are the answers for your queries as you do not have time for yourself.

    1. 1) Is LIC the best term life plan to go for? I know it is the expensive of the lot w.r.t coverage you get for premium paid.
    Yes LIC is best plan, if you have faith only in LIC. No LIC is worst plan if you understand how the term cover works & how you should purchase it.

    2) If not, which are the others who have best claim settlement ratio.
    Best claim settlement ratio is not a guarantee for your or anybody’s case that the claim ‘ll be accepted & granted. If you had been dishonest in revealing your health condition or job profile or any other materiel facts, no matter it’s LIC or any other the best claim settlement ratio insurer, your claim ‘ll be rejected.

    3) Is it advisable to go ahead with a combination of LIC + Private Plans? Rationale: In case LIC accepts and pays the claims, same can be referenced with the private provider in case they reject the claim.
    Yes, for your faith on LIC & no faith on other players, please purchase a small cover of say 5L Rs. from LIC & a big cover of your need from pvt. insurer of your choice.

    4) If I apply for any plan now, and my status changes to NRI, how do things work out? Is any action expected from my end to keep the policies active? Does anything change at all?
    Your residentship at the time of purchasing the plan matters but in case you are planning to leave India permanently or for at least 15-20-25 years time, please check with your insurer for exact details.

    Thanks

    Ashal

  3. Biswa Singh says:

    I think i got what Ashal wants to get accross. He has been tired answering the same queries again and again. I think if you go through the forum questions and topics posted by Mansih you will get all the answers. Everthing has been explained in detail. So just give one or two days going through it. All the best!

  4. Manoj Pote says:

    Not sure if I understand what you mean. Can you please clarify? What is the ambiguity you are noticing in my query?

  5. Manoj Pote says:

    Dear Ashal,

    You mean few days of time to become NRI? 🙂

    1. Dear Manoj, No not at all. I does not mean for NRI. I want your time for understanding your own needs.

      Thanks

      Ashal

  6. Dear Manoj, instead of answering your query at this point of time, I want to know, do you have few days time with you or not? If yes, please tell me, if not notify the reason of not having time? So please answer in any case. 🙂

    Thanks

    Ashal

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