Need advice regarding Term insurance

i am also looking for term insurance. Thinking of going for LIC online, for 27 years of age, for 75 lacs insurance, premium is about 12 k per year for 35 years.
 
viva1986 said:
how is PNB Met-Life "Met Family Income/ Protector Plus" term insurance?
Click to expand...
In my opinion, you should keep insurance simple. Assess your insurance requirement and take the online route. As always, marketing people take advantage of low awareness level and introduce products which are complicated and you end up paying more which was ought not to be paid.
 
A friend works in financial planning, I am planning to have one term plan for myself...
In a brief discussion with him he told online plans are good but make sure you opt for medical test. Buying without medical test isn't recommended at all..
 
I used to pay close to 50k for LIC policies for insurance around 6-7 L (thanks to my ignorance/negligence). Last year after doing careful analysis and calculation and considering all the points, I stopped paying all the LIC premiums and opted two online pure term plans and invested rest amount in tax saving bonds (MF) and PPF –
  1. HDFC - for reliability factor - 50 L for 6.5k
  2. Aviva - for max duration 35 years - 50 L for 4.5k
 
today i got my Insurance cover note according to which, it is MET Family Income Protector Plus-INV (Non-Linked, Non-Participating Term Assurance Plan).
 
Vagabond said:
A friend works in financial planning, I am planning to have one term plan for myself...
In a brief discussion with him he told online plans are good but make sure you opt for medical test. Buying without medical test isn't recommended at all..
Click to expand...

why is that? isnt requirement for it decided by the insurance co.?
 
^ You can buy online without medical test too but in case of claim the criteria would be much strictly followed I believe.

The form includes things like smoker, non-smoker, if quit from since, etc. The premium amount is calculated based on many such criteria.
 
^any claim would be after death of insured so after that the co. cant refuse to pay if they themselves didnt conduct medical tests, no?
 
True, there is no option to the insured person to decide on whether to give medical tests or not. The insurance co decide the same looking at your profile. The insured person should give correct picture of the health and leave the decision to the insurance co.
 
Why take chances, I prefer doing through a trustable advisor who can help with it when you won't be around.
Pfa docs requiment post death. Just FYI...
 

Attachments

  • 1408596283531.jpg
    1408596283531.jpg
    162.4 KB · Views: 150
Always go for term plans for Life insurance purpose as they are way cheeper than the money back plans and the money back plans gives much less returns than Recurring deposits at Nationalized banks ,never go for any thing linked with equities.
i have a bad experience with Bajaj alianz equity linked plan where i lost 50% of my investment and above that Rs 5000 for processing fee to get the money . its better to rely on nationalized insurers as these privet company changes terms and conditions and insurance premium as per their wish , I had a health insurance with icici lombard and for three years premiums docent have much hike on the forth year they said they have withdrawn that plan and i have to take a upgraded plan which is around 40% costlier premium with out offering much benefits. stay with LIC , oriental , national insurance etc , its safer .
if you are going for money back life insurance , check with an online compounding interest calculator about the difference between FDs and money back returns many times you will be surprised to see the difference after a 15 year tenure .
 
Last edited:
Criminal said:
^^ how can you compare money back life insurance policies with other investment-only options such as RDs, FDs etc?
Click to expand...
Do this comparison:

LIC with moneyback (like Endowment plans)

vs

Term policy + Recurring Deposit

You will be surprised ;-)
 
^^
Just do a simple calculation say you want to invest some amount let it be A per year


Investing in Money Back Insurance Policy (MBI)
1. Money back Life insurance policy premium per year = Rs . A
2. life insurance coverage offered by the above policy = Rs .B
3. Money you will get back X number of years = Rs. C

Investing in term insurance and RD for the same premium per year as above
3. premium of term insurance which will give you the Life coverage equivalent of the MBI (Rs B) = Rs. D
4. suppose we invest amount equivalent to ( A-D ie the amount left after paying the premium for Term insurance ) in RD say at 9% per year
3. money you will get after X years = Rs E

Rs "E" will be much higher than Rs."C"

so you are getting the same life coverage and investment in RD / PPF etc which is compounding and offer higher returns .Now show me any money back Life insurance scheme which will give you returns which is higher than FD+Term insurance
 
^^ please "remove" term policy from your calculations/assumptions... it wasn't there in your earlier comparison:
madhukannan said:
if you are going for money back life insurance , check with an online compounding interest calculator about the difference between FDs and money back returns many times you will be surprised to see the difference after a 15 year tenure .
Click to expand...
 
well not in my post, right?

with term + RD, you get great returns and also life insurance.

And those who are little adventurous, replace RD with SIP into an Index Fund/Blue Chip fund = Pure awesomeness.
 
^^ no, i am not hitting on you. no, it's not about your post. :p

my comment was meant for only those people who insist investing in FDs, RDs etc is better than putting money in moneyback insurance policies/endowment plans. i don't know why they even try to draw a comparison when each option has a different objective.

i have my own reasons to opt for moneyback/endowment plans even though i know i'd get less money on maturity. i'll keep the longer explanation for some other post... here's a recent example to explain the benefit:

i got my 7th moneyback policy 3 months ago. i paid around Rs 12K for the first quarterly premium. my family will get Rs 60Lacs in case i die or get disabled in the next 20 years. in case i die tomorrow, my family will get Rs 60Lacs against Rs 12K only. in case i don't die during the insured period, i'll get back Rs 24Lacs after paying premiums for a total of 15 years.

here's why i buy such policies: the moment i paid Rs 12K to enrol in above policy, i or my family got instant benefit of Rs 60Lacs. had i put Rs 12K in RDs, FDs, MFs, savings account or equities etc, my family would get something closer to Rs 12K only, in case i die tomorrow.

a term insurance plan would've gotten a lot more returns for my family but i am not comparing it against moneyback/endowment plans as they cater to different requirements.

i've got my money blocked in PPF, RD, FD, tax saving bonds, NSCs, Term Insurance Policy, Moneyback and Endowment Plans. I've quit Equities and ULIPs. but i'll start investing in equities very soon. i haven't dabbled in MFs, Derivatives and F&Os.

so far, LIC policies are taking care of Section80C for me.
 
Last edited:
Back
Top