POSTED BY May 25, 2012 10:38 pm COMMENTS (3)ON
Planning to take Term plan for 33 male for more than50 lac.
So decided to split it between Ageon Religare and HDFC click to protect reason being settlement ratio of HDFC is good and Relgare premium is very cost effective.
Do you all think this makes sence.
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3 replies on this article “Term Plan”
Dear arti, the points raised by dear Wealthucreate are valid ones. The only problem is it’s not you who have to fight for claim settlement but your family or legal heirs w’d have to because you ‘ll be no more & that’s why there ‘ll be that claim. 🙂 🙂
Splitting the insurance has its own benefits.Yes there could be cases where in you may end up paying bit extra pemium. Here are the benefits i see. Instead of buying 1 crore policy from single provider. Split with two.
1. Later when you accumulate enough wealth you may not need 1 core insurance. You can close of one.
2. If one of the provider takes time to settle you bank on other.
3. If one regects and other settles, you can fight it out with the provider who has rejected. Its just like diversification.
Make sure you consider settlement rate when you buy term plan.
Dear Arti, instead of splitting the sum assured between the 2 insurer, opt the one you are comfortable with. Say HDFC, the single policy of 50 or 60 or 70L ‘ll be good. If your yly income is in the range of 5-7L Rs. + a home loan of 12-20L Rs, you should go for a 1C cover.