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POSTED BY ON January 19, 2014 6:57 pm COMMENTS (2)
I am planning to take an online term plan for 1 crore. can u please suggest a good plan that covers me for a term of at least 30 – 35 years. Only 2 plans are there that give cover for such a duration i.e Aegon religare i term plan and the other is Aviva i life. However i am not confident about the claim settlement ratio of these 2 plans.plz give your valuable opinion.
I am 38 yrs, my wife is 33 yrs and son is 2.5 yrs
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Dear DrGaurav, are you sure that your financial planning ‘ll remain problematic till your age 73Y?
Thanks
Ashal
@drgaurav75,
Buying a Term Cover is an essential step in Personal Finance. However, pls note that, idea of Term Cover is ‘replacing financial income’ of policy-holder after death, for his financial dependents. Now you want a cover to last for 73 years of age (38 + 35).
You may not need cover that long, because;
– You may not be earning at that point in time and hence may not need replacement of your income
– If you are still earning, you probably would have generated enough wealth for yourself and for your dependents
– Your son will be 37-38 years of age and may not depend on you financially.
– Last but not the least, amount of Rs. 1 Cr after 35 years with inflation @ 8% will just be Rs. 6.7 Lacs (which may not mean much).
Considering these points and also considering that you have doubt on claim settlement ration of mentioned companies, you may choose to go with respected, large & high claim settlement ration company like HDFC Life. It offers cover upto 65 years of age (in blocks of 5 years each). Meaning you may get cover upto 63 years of age (38 age + 25 tenure), which may suit your need.
Hope this helps.