Term Life insurance

POSTED BY maverick muguda ON March 27, 2013 10:50 pm COMMENTS (5)

Hi Folks,

   I am looking for advice on choosing the provider for Term Life Insurance

  I am 35 and am the sole bread earner of the family. I own my house and am debt free. I have a reasonable bank balance. I have a Term life insurance policy from LIC for 20 years. It  started 1.5 yrs  back and whose sum assured falls significantly below the 10x of my annual income.  I am looking for a second term life insurance policy.

 

What parameters should i consider to decide on this term life insurance?

LIC’s premiums are significantly higher than other providers. Are there non emotional reasons to go for them again?

Most providers have a better solvency ratio than LIC. That doesn’t seem right considering their dominant position. does it?

If i were to choose annual or periodic payment options, should i continuously monitor the provider’s finance?

what are the pros/cons of switching from one provider to another later?

which of the providers cover “Death due to Terrorist attack” option?

My LIC policy doesn’t state inclusion/exclusion of the “Death due to Terrorist attack” does it mean it is covered?

 

Thanks,

Maverick 

5 replies on this article “Term Life insurance”

  1. Dear Sir(Maverick),

    We understand from your conversation with Ashal that you are clear on how much cover you need. You may consider ICICI Pru iCare which can easily be purchased online and allows you to get a cover of upto Rs. 1 crore without any medical tests. To know more visit https://onlinelifeinsurance.iciciprulife.com/BuyOnline/ICare.htm?execution=e1s1

    Consumers have chosen ICICI Pru iCare as Product of the Year 2012 in the Life Insurance Category based on survey of over 30,000 people by Nielsen.

    Regarding claims, we are committed to honor all claims quickly and fairly. In a recently published annual report for FY12 by the industry regulator IRDA, ICICI Prudential has a healthy claims acceptance ratio of 96.5%. You can access the report by clicking http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearLayout.aspx?page=PageNo1848

    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

  2. Dear Maverick, in the light of the info, please opt for an online term cover as per your need. If it’s 10 times of your yly income so be it. If it’s 15 times, purchase that much. As you are already 35Y old, please do calculate your exact term need say 20Y or 25Y or 30Y & purchased for that term.

    Disclosure – I’m having 2 term covers & both are from pvt. players IPru & Aviva. I’m comfortable with both of these insurers. Please decide your own comfortable choice & purchase from that insurer.

    Thanks

    Ashal

  3. Dear Maverick, do you really require a new term cover? From your other post on fixed deposits, I am assuming that there is a certain valuation of assets in real estate & gold & liquid cash (for FDs) with you. In addition you do have LIC’s term cover. Still you are falling short of your term cover requirement?

    Please clarify.

    Thanks

    Ashal

    1. maverick muguda says:

      Dear Ashal,

      Thanks for the reply and the observation.

      Life insurance is for my loved ones and not me. my current policy’s SA is 2.5 times of my annual salary. Considering that I have no loans and with reasonable assets. The only reason i am looking for another policy is to ensure my loved ones can continue to have the same quality of life in the eventuality of my death or critical illness. That’s the reason why i am looking at another policy.

      I would love to hear your thoughts on this.

      Thanks,
      Maverick

  4. If an insurer doesnt not say death due to terrorism will not be covered then it will be. Same goes for LIC.

    You can afford to switch and monitor the finances and other aspects of the provider if you are health and in your 20s. In your age you are better of getting from someone you are comfortable with and sticking to them. Switches will become more and more expensive with age.

    Solvency ratio is irrelevant the way I see it since it governed and mandated by IRDA.
    Death settlement ratio: there are views for and against it.
    The paramount thing is to be honest in fllling the form declaring the old policy. Personally I would choose someone who is a old player has decent death settlement ratio has a office in my town and with whom I am personally comfortable. Emotional or Otherwise.

    ps. I have an Amulya Jeevan from LIC and got it much before the online players came on. Switching for me at 38 and considering my heath is not beneficial.

    The more important thing is not to wait too long and go for it. Waiting six month to choose an insurer is like waiting an year in the eyes of the insurer -premium wise

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