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POSTED BY ON August 5, 2014 7:47 pm COMMENTS (2)
Hi Manish
I would like to buy an insurance policy, but I am not able to take the decision that which policy should I take. Please guide me. My requirement is minimum policy coverage is 75 lakh. Policy term 30-35 years. So please guide me should I go for term plan or the policy which gives return (as they are much costly).
Please guide me which policy and company i should go for.
Regards
Rahul.
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@Rahul – It would depend on what is your current age. Rule of thumb is you should not go for insurance above the age of 60, so choose the term plan accordingly, unless you have dependents(children) of age <25 when you reach 60(exceptions ultra super rich who keep working and earning after 60), assuming your children will be able to take care of themselves by 25 and you would have invested in your future income/retirement plans. Since you have decided your sum assured amount to be 75 lakh, you can split this into 2 insurance policies(both term insurance) rather than one, reason is that the chances of your claim getting approved will be more(speculation but it's true), higher the amount more the rejection, and even if one insurance rejects your claim the other might approve. Again while choosing the insurance policy you need to get the claim settlement ratio's of the policy, rule of thumb higher the claim settlement ratio, higher will be the premiums. LIC has come up with its online term insurance plan, though it is costlier then the other market players, but it has the best claim settlement ratio. Also the premium is reduced to nearly half of what it used to be in in its usual term policy. I would suggest go for LIC online term plan and then choose one from HDFC / ICICI / MAX (these are also good), do take additional advise and always remember while taking Life insurance you do not take into account you risk taking abilities but you asses what is the risk to your family and dependents if you are not there to support
Whats ur age?
why do u need returns from insurance policy? How much return do u need at the end of policy term? Decide the return u need and invest separately for that goal. Then u pick ur term insurance.
If u go for insurance+return policies,for 75 lakhs the premium will be high.
That premium u can split in to ‘term insurance premium + investment’ and make a decent return later