Best Term Plan Ion in India (W, Ith Detailed Charts)

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Best Term Insurance Plans in India [Comparison with Charts]
December 23rd. 2010 ' ' Print This Post ' 595 comments
by Manish Chauhan on December 23. 2010
LIC Term Insurance or Pvt LiIe Insurance Term Plan ? Which is the best term insurance in India ? Which Insurance company has the best
claim settlement Ratio? Online term Insurance or OIIline Term Insurance ? These are some oI the questions which comes in the mind oI every
Term Insurance buyer! . So are you looking Ior Term Insurance comparison at one place ? Do you have all the suIIicient inIormation to decide
which is the Best Term Plan you can buy? Today I will show you all the data like riders. maximum/minimum tenure. max age till when term
plan covers a person and data on the premium. Claim settlement Ratio at one place! . There are many term insurance plans in India. but all oI
them have diIIerent premiums and Ieatures which conIuses a prospective customer to choose the best term plan Ior him. II you any question
about Term plan you can look at these 9 most asked questions about Term Insurance
Looking at above comparison chart you would have got a Iair idea about the online term plans also. which have recently made its entry in India.
: The premiums displayed are indicative and should not be considered as final
premiums as they are taken from online insurance comparision sites. Its only for
illustration purpose and very much correct as on Dec 2010 . They might change in
future, please check the premiums on the respective websites.
Brief overview of Riders
AD (Accidental Death) : The policy pays you additional sum assured in case the death happens due to an accident . Note that
even iI you don`t take this rider. the sum assured is always paid on death. whether accidental or not !.
CI (Critical Illness) : This rider gives you a lump sum amount iI you are diagnosed with an illness which is mentioned in the
policy . Generally all the maior illnesses are covered in Critical Illness cover.
DR (Accidental Disability Rider) : This rider covers you Ior disability and pays you Sum assured in 10 installments per year
incase you becomes temporary or permanent disabled person.
WP (Waiver of Premium) : This rider makes sure that incase you are not able to pay Iuture premium due to disability or income
loss. the Iuture premiums are waived oII . but your policy is still in Iorce like
always !
Claim settlement Ratio of Insurance Companies
While deciding on a term plan. the biggest point which a person concentrates is the
Claim settlement ratio (read this comment) . So here is the list oI all the Insurance
companies in India with the claim settlement ratio . The data are Irom the recent
IRDA report Ior 2009-2010. One important detail you should note down is that 8
out oI 23 liIe Insurance companies have reported proIits . which are LIC. ICICI
Prudential. Kotak Mahindra. SBI. MetLiIe. Baiai Allianz. Sahara India and Aegon
Religare . II you do not beleive in Term Plans then you should read this article .
ICICI Health Insurance
Single Policy For Entire Family No
Checkup upto 45 years
www.icicilombard.com
Cheapest Term Plan Quote
Cover for 50 Lakhs for Rs 399 pm Get
Quote of All Insurance Comp
www.bimadeals.com/TermPlanInsurance
49.9 Lakh Cover @ 450 PM*
30 Lakh Insurance Cover @ Rs.270PM*
No Medicals upto age 45.Buy online!
Online.futuregenerali.in
Online Term Insurance vs Offline Term Insurance
With online term plans coming in market. two things has happened. First. Customers have really got excited seeing very low premiums which
insure them at throw away prices. however low premiums does not appear on the top wish list oI customers and what everyone needs is very
high claim settlement ratio and excellent customer service. This is where online term plans have disappointed customers. there has been huge
disappointment Irom ICICI iProtect and Aegon Religare iTerm Plan in terms oI customer service. There have been cases where customers
bought the online term plan and aIter that. they had horriIying experiences starting Irom increase oI premium once they bought it. No-response
Irom the company Ior long duration and Long & Irustrating delays in medical tests. This is what pisses oII customers most and they get a Ieel
that II situation is bad at the time oI buying the policy. then what will be the response when their Iamilies Ior claim settlement .
Another important point which comes to a persons mind is Are private Insurance companies saIe ? and what is the claim settlement ratio oI
the company. From last year IRDA report. we came to know that Aegon Religare did not settle even a single claim out oI total 7-8 claims they
got . However. this years IRDA report (2009-2010) shows that its better at 48 settlement ratio Ior Aegon Religare. but LiIe Insurance is not
a maths exam where 90-91 marks will make people happy. We all need 100 or 99 at least !. Because most oI the companies are very
new. the trust Iactor is missing Irom public. Note that not everyone who bought online term plans had bad experience. there are many buyers
who got very good response and good customer service. but it was a smaller section .
So iI you a kind oI buyer who understand Insurance very well and how things work in this area and you also have trust in online term plans then
you can go Ior online plans. But iI you are not comIortable with it. then you should try the old way oI buying insurance through an agent.
However it would cost more than online term insurance. which many are comIortable with! .
II you concentrate on the claim settlement and trust Iactor then the only option is LIC Term Insurance (1eevan Amulya). However iI you
are Iine with the pvt Insurance. but still want the best Ieatures. I personally see Kotak-preIIered Plan as a good option. The premium Ior
Kotak-PreIIered is the lowest in the oIIline term plans and this plan has good riders along with other good options. Term Plan Irom LIC is
obviously the best option iI you do not believe in the pvt companies and insist on high claim ratio. but premium Ior LIC term plan is too high .
So I think you can consider a mix oI the LIC term insurance and any one Irom Pvt insurer.
Special Features in Some Term Insurance Policies
There are some term plans with very diIIerent set oI Ieatures. Lets have a look at some oI the those. These Ieatures can help you Iurther in your
decision.
Which term plan do you have currently and incase you planning to have one. which one those the above will you buy ? Will it be LIC Term
Insurance or some one else and why ? Also share. II you need any other Iactor beIore choosing the term plan ? Which one do you think makes
sense out oI online and oIIline term plan ? Give your suggestions .
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595 comments. read them below or add one }
1 Hemant Beniwal December 23. 2010 at 9:03 pm
Manish
Very well researched article.
My 2 cents on selection oI term plan:
Kotak PreIerred term is least expensive term plan available oIIline. Its death claim ratio is bit lower than LIC but premium is iust halI oI
LIC term plans. II you give right inIormation at the time oI taking policy there is hardly any chance oI getting claim denied. Claim
settlement normally stuck when you or your agent have Iilled wrong inIormation or hided things. We normally suggest that one should
divide their sum assured in 2 policies Irom diIIerent insurers. It`s having 2 beneIits Iirst it gives Ilexibility iI you want to reduce your sum
assured in Iuture due to any reason & second which is bigger beneIit in case one oI your claims is denied your representatives can reach
ombudsman & show that other insurance company has cleared the claims on same grounds. This increase chance oI getting claim.
Reply
2 Manish Chauhan December 24. 2010 at 12:06 am

Online Term Insurance
providers in India
Do you have any idea
how many Insurance
companies are providing
online term plans in
India at the moment ?
iTerm . Cheapest Term
Insurance Irom Aegon
Religar...
Comparision with other
Insurers II I compare
Term Insurance
Premiums oI DiIIerent
Insurance Companies .
iTerm Comes out to be
really really cheap . The
second ch...
9 most asked questions
about Term Insurance
Yes. term insurance
pays in case oI an
accidental death. The
sum assured or cover
taken under the term
plan will pay the claim iI
the death has occurred
due to a...
Return oI Premium Term
Insurance . Is it Worth !!
Term Insurance is the
best Iorm oI Insurance .
but why not take
'Return oI Premium
Term Insurance Policy
. which is same as Term
Insurance . but with
return oI...
Concepts to explore:
Popular
Recommended Ior you
Insurance
Insurance companies.
Insurance premium.
Endowment policy. Insurance
policy
Investment
Equity mutual Iund.
Investment product. PortIolio.
Personal Iinancial planning
Health insurance
Health insurance company
ICICI Prudential
Illness Insurance
Excellent Idea , I am participating !
Looks good to me , but not sure If I will participate
Dumbo ! . Why do you get so idiotic idea's !
201 share 39 2 242 share
Thanks Ior your suggestions on Kotak . Why do you say that its death claim is 'bit lower than LIC. Most oI the people would
call it huge ! . 95 to 87 is huge ! . Is it not !
Manish
Reply
3 Hemant Beniwal December 24. 2010 at 5:37 am
( Mainsh
No it`s not huge Ior Iew reasons:
87 is superb iI we consider how agents Iill these Iorms.
Average claim settlement ratio oI private cos is less than 85 kotak score is better.
Averages some time creates illusions average age oI your readers is 28 but their can be a reader oI 98 & also 16.
But still let me add Iew more averages
Average claim per policy:
LIC Rs 73775
Private Insurers Rs 172000
Kotak Rs 298382
We can`t directly compare LIC with Private Cos due to 2 reasons:
1. The kind oI small sum insured policies that LIC sells
2. Establishment date oI Cos older policies will always have a better death claim settlement ratio.
Reply
4 neerai saini December 24. 2010 at 11:26 am
sir.
iI you say lic sell small sum insured it will be wrong rather we can say that private companies Iocus only on high sum.
Reply
5 Manish Chauhan December 24. 2010 at 5:01 pm
Neerai
No . I thinks its appropriate to say that LIC sells low SA . we are talking about pure term plans here and the
average term plans SA is in range oI 30-40 lacs . Its the right SA Ior most oI the people . I would say every
that is less .
Why do you think pvt insurers Iocus only on high sum ? Examples ?
Manish
Reply
6 Tarun January 15. 2011 at 12:35 pm
(Hemant. (Manish
The above claim settlement ratios which Manish has shown I believe are overall company-wide across
various products i.e. ULIPs.endowment/term plans etc.
Considering Kotak or Ior that matter even ICICI/HDFC.; iI you see the number oI and type oI policies
people buy here are mostly ULIPS. Actual number Irom agent I talked to says about 70-80. Now
given that these ULIPS are costly and mostly people buy around Ior 10-20 years; claim settlement is
not a problem Ior the company as the cost is already covered within Iirst 3-5 years so its easy Ior the
company to settle the claims.
Given this background I think actual term insurance claim settlement ratios will be Iar less. And I doubt
most private companies add lot oI veriIication activities which make claiming diIIicult.
AIter all these private companies do need to make proIit and the investors would like to see how many
reiections have been made to maintain their balance sheet.
LIC on the other hand even though a money making entity the basic idea is govt. promoted to help
people insure their liIe.They dont do that exhaustive veriIication when claims are made i believe.
Reply
7 Manish Chauhan January 15. 2011 at 9:00 pm
Tarun
Yes . you are correct
Manish
Reply
8 Anurag February 12. 2011 at 12:35 pm
well said Tarun
the contribution oI Lic oI India can not be overlooked
Lic oI India has always taken responsibility towards Indian Economy.
we as a policy holder should not think only about the return.
when we think about the saIety oI our Iund
there is Only One entity that is LIC
as per political situation oI India. Lic is secure than GOVT.
Reply
9 Manish Chauhan February 12. 2011 at 12:39 pm
Anurag
Then why not FD with SBI or invest in debt Iunds oI LIC only ?
Manish
Reply
10 Jayant Bhat March 31. 2011 at 11:30 am
Any comments on latest scandal oI LIC housing. Basically. any government backed
institution cannot rule out corruption and scandals at peak.
LIC is purely trading with citizens sentiments stating it is Govt backed company. II it was
worried about India and Indian Citizens. could it not get into the cheapest term plan
business. Is it not governments responsibility to oIIer liIe cover at most aIIordable prices.
LIC started playing with peoples sentiments. making huge proIits by selling endowments
and mostly endowments Ior over halI a decade.
Hence it is not doing a Iavour by helping govt when in crisis. Its is our own money which
they have looted Ior years. They have always thought about their proIits.
II LIC has guts and public responsibility. then let it launch a campaign to oIIer the
cheapest term plan in India.
Reply
11 Manish Chauhan March 31. 2011 at 12:50 pm
Agree
Reply
12 gaurav March 31. 2011 at 1:09 pm
'Is it not governments responsibility to oIIer liIe cover at most aIIordable
prices. ~ No. It is not. Where does this say in the constitution? It is hard
to Iathom that a person interested in personal Iinance and investing would
even make a comment like this.
13 Akshay Telang April 24. 2011 at 11:42 am
completely agree !
cant Iind a better example oI 'mass public looter in india than LIC..
its agents are very well trained to sell 'absolutely useless and 'diIIicult-to-sell
among-the-knowledgeable low-returns policies to ignorant (mainly) rural Iolks by
playing with their sentiments and hiding the crucial beneIits oI other useIul
policies.
no wonder they are sitting on huge cash reserves as many people (especially rural)
Iail to continue premium payments and avail maturity / death beneIits.. i hav myselI
seen thousands oI such examples !!
i dont knw much abt businesses oI pvt insurance companies. but LIC no doubt a
big public looter !!
Akshay Telang
Reply
14 viiay March 22. 2011 at 6:01 am
Many Pvt LiIe insurers sell plans with high SA and with Minimum premiums rates which are always high
and which is not aIIordable Ior most oI the people( common man).Why they Iocus on High SA? they
want more premiums collections and iI they sell small SA plans like LIC the average premiums will be
less.
Reply
Viiay
So you are concentrating on premiums or SA ? IF you need cover oI 50 lacs . then what do you
do ?
Manish
Reply
16 Shyam June 2. 2011 at 5:35 pm
Hi Manish
I am oI 29 years old working in BPO company and it has been one year when i purchased LIC term
insurance plan Ior 50 Lakh and halI yearly premium is Rs 8772. Earlier i was not aware oI the claim
settlement ratios oI ICICI and Kotak but now they are seemed me more reasonable than LIC. Please
suggest was my decision to buy LIC term plan right? Should i continue this plan or changed to some
other plan as it has been only one and halI month? Please suggest
Thanks & Regards
Shyam
Reply
Hemant
Ok got it
Manish
Reply
18 Tarun Mittal February 15. 2011 at 2:44 pm
Manish
Thanks Ior providing such valuable inIormation with regard to term plans. It has helped cleared many doubts in minds oI
layman like us. My age is 33 years old and i am planning to buy a one crore term insurance. Although i have zeroed on in
Kotak PreIerred Term. i am yet to take the leap.
I still have some questions in my mind which i would like to ask you :
1. Why does LIC charge such a heavy premium Ior the same product and so. why is it so uncompetitive in the term
insurance market?
2. (this is a logical corollary oI 1st ques)
Why and how does private companies like Kotak charge such low premium and how do they survive? Do they reIuse
claims on miniscule things and issues?
3. What precautions should one take while providing inIormation while Iilling the application and other papers beIore taking
the policy?
4. I am told that the company will carry out a nicotine test Ior detection oI nicotine in blood. and other very exhaustive tests
to ascertain the proIile oI the to-be-insured. My ques in this regard is:
a) what tests are generally carried out?
b) who Ioots the bill Ior the same?
c) once the company has carried out the tests and has issued the policy obviously on the basis oI those tests. how and upon
what grounds in the world can the company reIuse to pay claim? Isnt it in our own beneIit also that the tests are carried and
whatever reports come. are actually being acknowledged and accepted by the company beIore issuing the policy? Doesnt
it provides a shield Ior us as well against reIusal oI company to pay claim?
5. Supposingly the company goes bankrupt or runs into losses or other Iinancial trouble in Iutute. is our insurance saIe? is
our sum assured saIe? Are there any speciIic provisions in law Ior the same? In other words. how do we ensure our peace
oI mind with regard to companies like Kotak. when the sole purpose oI buying the insurance is to guarantee Iinancial
security oI the Iamily and peace oI mind as well?
I and many readers would be really thankIul to you Ior providing answers to the above questions.
Regards.
Tarun Mittal
Reply
Tarun
1) Because oI thier mortality tables which are very old . Thier data depends on the old inIormation about health .
so hence they are still charging higher premiums .
2) No company is charging you less. every one is charging right premium their proIit margin . they have revised
mortality rates they have online option also which saves them admin costs agents commission .
3) Just make sure you give all authentic inIo ..
4) companies bear the expenses Ior everything . This test is generlaly to make sure you are healthy and to Iind out iI
they need to increase the premium or not ... There are several things which cant be known by your medical test . like
bad medical history . iI you have some medical issue beIore 3 yrs or things like that .. and most oI the reiections oI
claims are because people give wrong inIormation while taking the policy .
5) generally i am not sure oI the guidelines .. but incase a company ius getting bankrupt or anaything like that . its
taken over by other .. but anywyas you should go with compnay which you TRUST
Manish
Reply
20 Tarun Mittal February 15. 2011 at 4:34 pm
Manish
Thanks Ior answering my questions.
Given my age (33 years) and my requirement (one crore insurance). which according to you will be the best
option Ior me?
Also. as regard to riders. you have suggested to somebody that one should take 50 as base cover and 50
as a rider. But iI you take example oI Kotak. the riders cant exceed ten lacs. What is to be done in such a
scenario where one is looking Ior a one crore insurance and the riders available are no more that 10-15 oI
the total sum assured.
Tarun Mittal
Reply
21 Jitendra Wagh April 7. 2011 at 1:38 am
Hi Tarun.
In my opinion. you should go with two diIIerent insurers iI you are getting yourselI such a high cover.
say 50-50Lacs each. This will take care oI the risk Iactors involved.
Cheers
Jitendra
Reply
22 CA RAJIV SAXENA March 17. 2011 at 11:44 am
MANISH. FATHER DIED IN 1989. AS PER DEATH CERTIFICATE. CAUSE OF DEATH IS
'RESPIRATORY FAILURE. SHOULD I MENTION IT IN PROPOSAL FORM FOR TERM
INSURANCD. I WILL DEFINITELY MENTION IT IN PROPOSAL FORM. WHAT WILL BE THE
CONSEQUENCES? WILL PREMIUM BE LOADED?
Reply
Raiiv
I dont think it should be an issue Ior premium loading . It depends on company . Also you will have to
mention it iI its asked in proposal Iorm .
Manish
Reply
24 Sandy June 30. 2011 at 6:06 pm
Term insurance is long term. 20-30 yrs. Insurance sector was opened up in 2001 when most private companies got their
licenses. So the max policy term holder in private companies would 10 yrs while avg holder might be around 5-7 yrs.
The reiection ratio is higher in case the policy is recent. The portIolio oI LIC is much more balanced and hence its reiection
ratio looks better.
Reply
25 Manish Chauhan June 30. 2011 at 7:03 pm
Sandy
True . and thats the maior reason why pvt insurers reiection ratio is on high side .
Manish
Reply
26 Sud December 23. 2010 at 9:06 pm
Hello Manish.
Excellent comparison between diIIerent companies and their term plansclaim settlement ratio. I have iust went Ior LIC Term Plan with
9060 yearly premium 30L risk cover Iew days ago . because I think even in Iuture I need to increase my risk cover because oI inIlation.
I would go with other private players. which might be 5-10 years down the line. giving me enough time to look at the claim settlement
ratio oI these companies. I decided aIter lot oI thought. and I Ieel I am very much right . Plus your comment about it at the end
encouraged me! Thanks Manish
Reply
Sud
Good to know that you already have the term plan Ior yourselI ! . However iust wanted to know iI that is suIIicient at this point oI
time ? II anything has to happen today to you . will the term plan Irom LIC be good enough to cover every thing Ior your
dependents ?
I think its better to get covered Ior the higher amount iI the situation demands . what do you say ?
Manish
Reply
28 steven December 23. 2010 at 10:06 pm
Very nice inIormative article as always.
Last year I had come to know about Term Insurance Irom this blog.
I think in one oI your previous post or some other website there was a reIerence to the Annual Report by IRDA. I had seen that the
claim settlement ratio oI LIC was the best (95.48 in 2008-09 pg no:146 ). So i had taken the Amulya Jeevan plan in ian 2010.
Personally i Ieel the most important thing is the Claim settlement ratio.
From the list above
- The cheapest insurance is MetLiIe which costs 5450.
- LIC Amulya Jeevan costs 14600.
The diIIerence is 9150 which comes down to 762.5 per month.
Now since we are taking a term insurance to protect our Iamilies Irom
the liabilities which might arise in case oI death. The Settlement oI the claim becomes the crucial Iactor. Even though we pay an extra
amount to 762.5 per month ( which is equal to the cost oI 4 to 5 movie tickets in metros ) we can be at peace that in case oI death the
large sum oI money would be given to our Iamily.
Instead oI saving those 762.5 rupees per month and investing or spending somewhere it would be wise to pay Ior a peace oI mind.
Reply
Steven
Yes . that makes sense . But the diIIerence is huge in rupee terms and percentage terms compared to the cheapest one . What are
your opinions on mixing the insurance . one Irom LIC and other Irom metliIe ?
Manish
Reply
30 steven December 24. 2010 at 12:15 am
Yes i plan to take another term insurance when my liabilities increase.
currently i am single and no dependents. Later when i have liabilities i will take sbi shield with increasing cover or some
other with high claim settlement ratio.
Reply
OK nice . So conclusion is that at this point oI time. iI you die . your Iamily will be Iine with that much insurance
money ! .
Manish
Reply
i took the policy this year because the premium is less. i took a 35 year 50L policy. Actually right now there
are no liabilities so they do not need that much money now
Steven
Reply
Steven
I am still not sure and hence want to do a small exercise . Can you list down with steps A.B.C . iI you
die today how that 50 lacs will help your Iamily . how much will make up Ior monthly income . how
much Ior paying oII debt . how much will help in investment Ior your children Iuture ! . Can you do that
.. a short one .
Manish
Reply
34 steven December 26. 2010 at 6:14 pm
I am single and my parents are not dependent on me.
Parents don`t have any debt.
So iI i die now 50lacs would be extra cash Ior parents.
Reply
steven
The only question is are they Iinancially dependent on you or not . II not . then you can
miss this
Manish
Reply
36 Suresh January 4. 2011 at 1:16 am
I agree with you. Most oI us have atleast one LIC development OIIicer or LIC Agent in the immediate Iamily. On our death we
can be assured that they will help us to get the claim. This assurance will not be there Ior pvt. players.
Reply
37 Rakesh December 23. 2010 at 10:38 pm
Manish.
Excellent article. very nicely put. Thankyou Ior your eIIorts.
I have an old term plan Irom LIC. recently did not renew my Aegon religare term plan and canceled Icici iprotect plan as i was not
satisIied by their service.
The next choice that i have is Kotak.
Rakesh
Reply
Rakesh
I would suggest dont get too disheartened with the bad service. As the online model is very new in India . it might take some
'extra time . but let it go through and what a big deal iI it arrives 2-3 months late in your hand .
Even kotak will not be that great in service Ior its online term plan .
Manish
Reply
39 Basavarai December 24. 2010 at 7:40 pm
Hi Manish.
2 to 3 months oI delay means too late right? One more thing. iI death occurs within that period then Insurance company will
settle the claim?
Reply
Basavarai
No . Even with oIIline term plans it takes close to 1 month Ior policy to come in your hands. given that its Iine iI one
gets a online plan in 2-3 months. I consider it Iine .
Manish
Reply
when you need to dig the inIormation about your policies
lic is only providing the portal in simple steps
lic provides inIormation about lapsed policies..this is really awesome Ieature oI Lic portal
Reply
Anurag
Great. thanks Ior your reply .
Manish
Reply
43 Jitendra December 23. 2010 at 10:47 pm
Hi Manish.
You have written a selI explanatory and unbiased article. Kudos Ior it.
I have taken LIC Jeevan Amulya policy. And I will consider to get another policy Irom PVT company.
LIC has a huge trust Iactor. So I don`t mind at all paying little bit extra premium to LIC. No why I am calling it little bit is due to the
Iact that we are taking term insurance Ior death beneIit. And small amount Iew hundreds should not matter.
Thanks a lot.
Reply
Jitendra
Ok . even though its 'little bit . its 100 or 200 more sometimes compared to other insurers. what are your views on mixing
LIC and other Ior 50:50 ?
Manish
Reply
45 Anunay December 28. 2010 at 11:20 pm
Hi manish
I would suggest that we should not have 2 term plans Irom diIIerent insurer simply because higher the sum assured. lower
the premium(Per lac). Taking 2 policies would simply not cost eIIective and great idea.
As Iar as claim reiection is concerned. i dont think that iI everything is declared correctly. insurance company will not reiect
the claims. AIterall they reinsure themselves with Insurance reinsurance company to reduce their risk.
Reply
Anunay
There are pros and cons oI getting 2 insurance policies. II you dont want to get it Irom diIIerent insurer . then you can
take it Irom the same insurer. it iust gives you a Ilexibility to reduce the cover later incase you want to .
Re-insurance by insurance companies is nothing to do with our claims directly. its iust another way Ior them to
reduce their risk .
Manish
Reply
Anunay
iI you declare every thing about your health and living habbitts
the insurer will deIinitely load extra premium as per their policy underwriting rules
thats why some oI very normal wrong declarations are always been possible.
Reply
48 rahul December 23. 2010 at 11:03 pm
Excellent article Manish and great contribution Irom other readers as well.
I have couple oI questions
1. Can NRI`s buy Term LiIe Insurance?
2. How can they buy them and what would be the process oI claim settlement iI needed?
3. In the Iirst chart. Kotak PreIerred has 'X in all the 4 categories (AR. CI. DR. WP). How is this policy better except lower premium.
Forgive my ignorance.
Regards.
Reply
Rahul
1.2) Insurance companies requires Iew things Ior giving term plans.
a) Person is required physically Ior medical exams
b) Address prooI in India
c) some source oI income in India
II NRI`s can provide these . he can get term plans
3) Despite oI being oIIline . its premium is very very low . it also have all the riders and its settlement ratio is also good . not the
best but seems to be good . these Iew things itselI make it good . not much apart Irom this .
Manish
Reply
I am an NRI. i have LIC Amulya Jeevan
It takes iust 1 day to apply and 1 day Ior medical test which would be done at one oI their related hospitals. You could ask
the agent to come along with you Ior the medical test.
UnIortunately i received the policy document aIter 3 months to my india address. Later on you can pay all your premiums
online.
Also Dont Iorget to take a prooI oI your income outside india.
Steven
Reply
Steven
So the medical is done outside Indian at your country or you have taken it while you were in INdia ?
Manish
Reply
India
Reply
53 Prasanna December 28. 2010 at 12:23 am
Steven.
I think that iI you are a NRI & you do not have a source oI income in India you cannot get a term Plan in India. This
is what my agent told me some 3 years ago !
You said above 'Also Dont Iorget to take a prooI oI your income outside india
I guess your agent has not mentioned in the application Iorm that you are a NRI.
Any comments Dhawal or Manish??
Reply
Prasanna
Incase agent has not mentioned that a person is NRI and the person is actually residing outside India . the
claim will be reiected and it should be reiected also as its a stright case oI hiding oI Iacts. either by the actual
customer or agent . doesnt matter .
Please re-check the Iacts
manish
Reply
55 pprairu January 13. 2011 at 3:27 pm
(manish. thanks Ior the article!
i also plan to buy term insurance. so am digging the inIo on web & Iound the Iollowing results
in my view.
4) kotak`s max rider amount is 10L only whereas in sbi`s it is upto SA.
also
i) solvency ratio oI sbi is more then kotak`s (reIer statement 18 in irda report)
ii) in sbi. additions to new policies are more then deletions whereas icici delitions are more then additions whereas kotak is
having additions nearly equal to delitions (reIer statement 8 in irda report).
so my preIerence would be :
#1 sbi
#2 kotak
Reply
pprairu
Looks good to me . both are good
Reply
57 Mayur Modi February 8. 2011 at 1:37 am
Hi Manish / Rahul.
OIcourse NRI can buy LIC and other career policy.
Just to bring your attention here. most oI NRI apply Ior Green Card / Permanent Residence and they disqualiIy Irom LIC
policy .
Source: http://www.licindia.in/nricentre.htm
# NRI should not be a green card holder. He/She should not have applied Ior or planning to apply in the near Iuture Ior
acquiring citizenship oI his /her present country oI residence or any other country.
# It is clariIied that People oI Indian Origin having Ioreign nationality and residing in Ioreign countries (PIO) are not
considered as NRIs Ior the purpose oI allowing insurance. Rules applicable to PIOs are given in the last paragraph.
Thanks.
Mayur Modi
Reply
58 Manish Chauhan February 8. 2011 at 11:08 am
Mayur
Thanks Ior the inIormation :0
Reply
59 Mayur Modi February 8. 2011 at 1:45 am
Hi Manish / Rahul.
OIcourse NRI can buy LIC and other career policy.
But iust to bring your attention here. most oI NRI apply Ior 'Green Card / 'Permanent Residence and they disqualiIy Irom LIC
policy .
Source: http://www.licindia.in/nricentre.htm
# NRI should not be a green card holder. He/She should not have applied Ior or planning to apply in the near Iuture Ior acquiring
citizenship oI his /her present country oI residence or any other country.
# It is clariIied that People oI Indian Origin having Ioreign nationality and residing in Ioreign countries (PIO) are not considered as
NRIs Ior the purpose oI allowing insurance. Rules applicable to PIOs are given in the last paragraph.
Thanks.
Mayur Modi
Reply
60 Ramesh Desai December 24. 2010 at 12:41 am
Excellent write-up ! Very inIormative !!
Reply
Ramesh
Thanks . are you planning to buy term plan Ior yourselI . let us know how do you plan to buy it ? Criteria ?
Manish
Reply
62 iig December 24. 2010 at 4:24 am
Good one manish.
should we buy term plan with riders or without riders?
As some oI them having riders and some havent. what we should do in such cases where riders are not available?
BDW excellent gathering. its looks same like as on apnainsurance.com. don`t you think so?
keep sharing..
nJOy
Reply
Jig
Should you buy riders or not is not a question ! . Its Ior you to answer . Do you want them ? Tell me what happens iI you take
term insurance. but you become disable . it will not pay anything iI you dont have disability rider with that . So its something you
have to answer that you want it or not !
Manish
Reply
64 NARESH SHARMA December 24. 2010 at 5:56 am
Good one Manish.we are sensing Health Insurance may be on the same lines.our needs and requirements grow Iaster than
anythings.
A big clap Ior well researched article!
Reply
Naresh
Yea .. Health Insurance will also come this way in some time
Manish
Reply
66 Senthil Nathan December 24. 2010 at 6:06 am
Kudos Ior an Excellent Article Manish.
AIter reading several articles in blogs related to Term Insurance My Understanding regarding Term Insurance is that Term Insurance
Premiums tend to decrease over period oI time.So I guess it will make sense to take the policy Ior smaller periods and then purchase a
new policy at the end oI the coverage period rather than going Ior a single policy oI a longer period.
Any comments on this idea ?.
Regards.
Senthil
Reply
Senthil
A little Ilaw . when you take it second time you will get the policy with higher premium as your age will be higher ! . Nice try !
Manish
Reply
68 iig December 25. 2010 at 3:07 pm
At the same time your tenure will be less too.
Reply
Jig
Yea tenure will be less . but why do you want it to be less . you can take the plan Ior higher term and close it anytime
you want . there is no problem in that !
Manish
Reply
70 bharat December 24. 2010 at 8:00 am
i struggled almost Ior one month to get this data.. I bought KOTAK term plan this month through agent and satisIied too aIter reading
this data and your views Ior KOTAK.
Post is very nicely illustrated which is easy to understand and compare.
I must appreciate your eIIort Ior every post.
Reply
Bharat
Thanks Ior your appreciation . do you agree that its premium is one oI the lowest
Manish
Reply
72 Srikanth December 24. 2010 at 8:33 am
Fabulous article. Manish! Thanks Ior the eIIorts (both research and presentation).
Regards.
Srikanth
FundsIndia.com
Reply
Srikanth
Thanks Ior the Ieedback and the RT
Manish
Reply
74 srg December 24. 2010 at 8:57 am
hi this is timely. iust planning Ior term insurance and had shortlisted kotak and hdIc. Also debating the online and oIIline option
Reply
Srg
Nice to hear that it helped you on time . so which one you Iinally decided ?
Manish
Reply
76 nitin December 24. 2010 at 8:58 am
Hi Manish.
Excellent end to 2010 with such a important article !!
I have Birla Dream plan liIe cvg Ior 25 yr term.I am 31 yrs old..I am paying a premium oI 17k per annum Ior a coverage oI 70 Lac
with no riders..I bought it 2 yrs back.
I am not sure iI it`s really a term plan..but when I bought it premium was very competitive to term plans.
Thanks again Ior excellent article.
Reply
Nitin
To get more idea on Birla Dream plan . read this discussion on Iorum : http://www.iagoinvestor.com/Iorum/query-about-birla-
sunliIe-dream-plan/779/
Manish
Reply
78 S Pani December 24. 2010 at 9:52 am
I have taken a LIC Jeevan Anmol Policy (30 lakhs .Premium:Rs.21.510.00.age:39yrs.Now I am 42yrs old. & intend to take a Rs.1
Crore policy but I Iind that the Online policies are not vailable at Rourkela.Orissa.The oII line policies have quoted very high premium.
I am in adilemma.
S.Pani
Reply
S Pani
Why do you want the change ! . Is the premium too much Ior you ?
Manish
Reply
80 S Pani December 27. 2010 at 2:43 pm
It will be in addition to existing policy.
Reply
ok in that case its Iine
Manish
Reply
82 JKMishra May 22. 2011 at 1:31 am
S Pani
Online policies are available on internet. In Rourkela. we have cybercaIes/Internet parlours.. you can visit there. go to the
respective companies website & buy on their websites itselI.
i hope this satisIies your query.
Reply
83 Manish Chauhan July 18. 2011 at 6:23 pm
Yes you can do that
Reply
84 Prashant December 24. 2010 at 10:20 am
Hi Manish.
Execellent article manish . gives in depth idea oI Term Plan. I have already bought a term plan plan Irom Kotak around 3 years back Ior
25 Lakhs . Planning now to go Ior LIC Term Plan Ior the same amount. I think even though the premium is high in case oI LIC . most oI
us would preIer LIC due to the claim settelment ratio which is quite better then the private players
A superb article Irom you !!
Reply
Prashant
Hmm.. I would say you cant iust go with LIC iust because oI claim settlement ratio . You have to understand that its not a variable
which decides the chances oI your claim settlement . Have a look at this comment : http://www.iagoinvestor.com/2010/12/term-
insurance-plans-comparisions-india.html#comment-18077 and http://www.iagoinvestor.com/2010/12/term-insurance-plans-
comparisions-india.html#comment-18092
Manish
Reply
86 Mitr Singh December 24. 2010 at 10:21 am
Hi Manish.
Thanks Ior wonderIul article.
I am planing to take a term plan but due to some conIusion i iust took it on hold. My mind is going Ior LIC Amulya Just because oI
Claim settlement ratio. trust Iactor and I will not mind to pay some extra Ior peace oI mind. I agree with you Ior 50:50 (Lic : Pvt) but the
Iirst 50 is LIC and later will go Ior some other one.
Great going Manish. May god bless you.
Mitr Singh
Reply
Mitr
I would say you cant iust go with LIC iust because oI claim settlement ratio . You have to understand that its not a variable which
decides the chances oI your claim settlement . Have a look at this comment : http://www.iagoinvestor.com/2010/12/term-
insurance-plans-comparisions-india.html#comment-18077 and http://www.iagoinvestor.com/2010/12/term-insurance-plans-
comparisions-india.html#comment-18092
Reply
88 Prasoon December 24. 2010 at 10:51 am
On SBI website. premium (without any rider) Ior 30 yrs old male comes to 9161 Ior 50L Ior SBI Smart Shield Level Term Assurance
Policy. You have mentioned 14.567. Am I missing something here?
Reply
Prasoon
I actually took the data Irom policybazaar.com . Even I saw that what you say is correct . I will have to correct it Irom my side
Manish
Reply
90 Shilpi Chaudhry December 24. 2010 at 11:22 am
Hi Manish.
your research on term insurance plans in the market has been really enlightening. My husband plans to have 2 term insurances oI 50 L
each. we have concluded to ICICI prudential. Aegon religare & Kotak. Pls suggest iI this is the right choice or we shd make changes.
we r in a Iix..
thanks Ior ur help!
shilpi
Reply
Shilpi
Any term plan is right choice as Iar as you give right inIo in the Iorm and take all precautions to provide right inIormation . I would
suggest go with Kotak ICICI
Manish
Reply
92 gaurav December 24. 2010 at 12:00 pm
Manish;
Excellent article. Well compiled.
In my case. I already have a term insurance policy Irom ICICI. Over the next couple oI years I plan to sign up Ior another one and will at
the time look at the Ieedback on the online policies. Who knows. maybe LIC will start an online policy by then too.
It would be good to see the claim settlement ratios oI the pvt companies split into online / oIIline policy settlement though I doubt they are
obliged to provide it.
Reply
Gaurav
Two points.
1) You cant expect LIC to come up with online term plan .thats not going to happen ! . LIC has huge network which reaches all
over and its structure is such that coming up with online term plan is anti-LIC and its Govt owned !
2) IRDA does not publish the diIIerent data Ior oIIline and online plans . it iust publishes the total claim settlement numbers !
Manish
Manish
Reply
why you need diIIerent claim ration data? i mean is there any diIIerent methods they are Iollowing Ior processing claim
considering type oI buying?
i dont think so..
Reply
Jig
I am saying because people are more concerned with online plans . so they can see how much is the ratio Ior
online/oIIline seperately
Manish
Reply
Sorry manish
but my question was to Mr Gaurav.
keep sharing
Reply
97 gaurav January 12. 2011 at 9:41 pm
(iig;
Just to see iI the 'agent hand holding during the claims process has any real impact. I went to ICICI`s branch and
spoke to the branch manager there about another policy. I asked him that with their iprotect rates so much better
than the oIIline rates why should I go with the oIIline policy (through the branch). His answer was 'with the oIIline
policy. the branch will be there to help the nominee with the claims process while there is no such help with the online
process. Having a agent helping you is so much better. I iust smiled and said you sound like the LIC agent who was
trying to tell me why I should go with a LIC policy v/s ICICI`s.
In anycase. knowing the oIIline v/s online settlement ratios is more a curiosity.
Reply
98 Sunil December 24. 2010 at 12:25 pm
Guys..
The discussion on the term is very inIormative here.. thanks to all.
In my case. I have planned everything Ior my Iamily like
bought 2 plots Ior my 2 kid Ior Iuture education purpose
planning to retire early by age 40 itselI ( 35 now ) with 40L in hand which to be invested in POMIS with monthly income as 30k Ior rest
oI years leading a simple liIe as a private college lecturer in my home town( not a city )
So the question is do I need term insurance now though I have set a permanent income to my Iamily. Please suggest on this..
Reply
Sunil
Do you need liIe insurance ? This question depends on your current situation . iI you die today how will your Iamily survive ! . So
take the insurance which they would need in your absense ! . http://www.iagoinvestor.com/2009/11/how-much-insurance-cover-
is-enough.html
Manish
Reply
100 Krish December 24. 2010 at 1:39 pm
Very inIormative article. Obviously LIC is way ahead oI others. I understand the table reIers to claim settlement ratio Ior all types oI
policies in general. The ratio Iurther comes down Ior the private players iI the comparision is done Ior term insurance alone. In this
context. even the 50:50 argument may not be a great suggestion.
Reply
Krish
I think iI we seperate it Ior term insurance. it would be low Ior LIC . because Ior pvt insurers term plans are big chunk as overall
percentage . For LIC endowment plans make huge chunk
Manish
Reply
102 Arindam December 24. 2010 at 3:19 pm
Hi Manish.
It`s an amazing co-incidence that by the time I completed my research on Term insurance with riders (which is today morning) that I saw
this blog and the recommendations are same. I Ieel conIident that I am on the right track. And thanks a lot Ior making it easy to choose
Ior millions oI ordinary Iolks like us.
Reply
Arindham
good to know that . which one did you choose Ior yourselI !
Manish
Reply
104 Arindam January 5. 2011 at 11:34 am
I have almost decided Ior Kotak PreIerred along with CI beneIits. I`d have gone Ior an online one (ICICI Pru Iollowed by
Aegon Religare in that priority). but since they don`t have riders. I am trying out Kotak preIerred Iirst. II there are any
surprises etc. I`ll keep you posted. Thanks once again.
PS Smoking kills. and till then makes you pay more premium!!
Reply
Forgot to add one more thing iust as inIormation Ior Iellow visitors that I already have good liIe cover Irom the
company I work (Ior which I guess I don`t pay any premium). This nw insurance I am going to get is kind oI
additional (mostly Ior home loan protection along with rider). II this was my Iirst term policy (and given the Iact that I
am a smoker). I`d have probably got an LIC (because oI high settlement) inspite oI high cost. So as you rightly
suggested. Iellow investors should probably split between LIC and private.
Reply
Arindam
You are not paying premium Ior your company insurance directly. its called group insurance and your
company is paying the premiums . its part oI your CTC .
Manish
Reply
107 Harish December 24. 2010 at 3:24 pm
Manish
Kudos to your eIIort and detailed analysis on term insurance plan. I believe it will help many oI us in choosing the right product.
I must say time to time you have produced many good and wonderIul article. and I think this article you can put in Hall oI Fame`
Thanks & Regards
Harish
Reply
Harish
thanks . I do not consider this as the best one . As this is iust a knowledge article. I consider those articles as hall oI Iame which is
regarding psychology changing . which you generally dont read anywhere .
This particular article can be done by anyone who can spend some time Iinding inIormation on internet !
Manish
Reply
109 sb December 24. 2010 at 3:31 pm
Very good article. Much eIIort has gone into putting the data together. Congratulations!
Are you planning on doing something similar on health insurance sector? That would be oI beneIit to a lot oI people I am sure.
Reply
sb
Yes. but not very soon !
manish
Reply
111 Dhawal Sharma December 24. 2010 at 4:37 pm
MANISH Now this is what i called RESEARCH PAPER..Excellent and Superb..I have Iorwarded the link to many oI my clients..Just
two things i want to add..
ONE. iI you have Iilled your Iorm properly and provided accurate inIormation/documentation while applying Ior the insurance. and later
on the claim is GENUINE. then there is no way on earth that claim will not be settled (Irrespective oI the claim settlement ratio)..
SECOND. IRDA report with its claim settlement ratio part. nowhere mentions it to be DEATH CLAIM SETTLEMENT
RATIO..maior chunk oI the LIC policies are endowment or moneyback policies which are settled very nicely by LIC (In some oI the
cases. Iinal amount cheque post dated reaches the client even beIore the last date oI policy) and most oI these endowment and
moneyback policies are running Ior last so many years so they get settled very smoothly. So this Iactor should also be kept in mind that
its not DEATH CLAIM SETTLEMENT ratio but iust claim settlement ratio..II somehow death claim settlement ratio be procured Ior
every insurance company. then on an average. every company will come around to 90 to 92..
By the way. the IRDA report portion which you have produced above in your article shows CLAIMS REJECTED and CLAIMS
PENDING by LIC are 17750 and combined total oI PVT. PLAYERS Ior these two catagories is 6500 (Maior culprits are BAJAJ.
ICICI PRU. and MAX)..huge diIIerence. isn`t it..and the ratio comes out to be 75:25 in Iavor oI LIC Ior CLAIMS REJECTED and
CLAIMS PENDING..means out oI every 100 claims reiected or pending in the insurance sector. LIC accounts Ior 75 oI them
Reply
Dhawal
I myselI understand this Iact that claim can not be reiected iI one Iills the Iorm and advocated this myselI. but you know public .
http://www.iagoinvestor.com/2009/02/are-private-insurance-companies-saIe.html
Manish
Reply
Dhawal
Added your comments in the main article
Manish
Reply
114 herge December 25. 2010 at 8:28 am
Dhawal.
Agree with your points but this:
'II somehow death claim settlement ratio be procured Ior every insurance company. then on an average. every company will
come around to 90 to 92..
is pure speculation. Since you work Ior Kotak let us know what it is Ior Kotak.
Reply
Herge
I think the Iine. As most oI the companies maior market is endowment or ULIP`s . term plans are smaller section . so iI we
iust look at term plans death claim reiection ratio . it should be in range oI 90 . Thats my way oI concluding it . What is
your counter argument on this point ?
Manish
Reply
116 herge December 25. 2010 at 12:39 pm
Agreed its smaller but dont see why this means 90 oI that small no will be settled. We still need data.
Reply
Herge
Yes . we need data Ior that 10 reiection . but we can guess it very well and its 'Wrong inIormation or
incomeplete inIormation at the time oI Iilling up the Iorm . you can see many people want to not disclose that
they are smoker or have some illness . I dont understand why they Ieel they are smarter than companies .
Manish
Reply
Herge
Yes . we need data Ior that 10 reiection . but we can guess it very well and its 'Wrong inIormation or
incomeplete inIormation at the time oI Iilling up the Iorm . you can see many people want to not disclose that
they are smoker or have some illness . I dont understand why they Ieel they are smarter than companies .
companies do not give segregated data to IRDA on this .
Manish
Reply
Well.
take an example that i gave wrong inIormation. that Ior what purpose they do medical test?
and once the medical test done by company means they are aware with the medical condition oI the
applicant. and they accept the proposer with that condition.
now aIter 10 years i die. how they can reiect the claim on basis oI wrong inIormation? what is that
criteria. what they are gonna check?
Manish. i think this inIormation will be quite useIul iI you can publish here.
Dhaval
how the kotak treating such cases? can you elaborate that procedure Ior claim settlement?
thanks
Reply
Jig
The medical test they do are not quiet detailed . it does not catch maior things . So iI you are
smoker or had some illness in past (but not at the moment) . the medical tests are not able to
catch it . The medical test they do is to make sure they catch some things which even you might
not be aware .
Manish
Reply
121 iig December 27. 2010 at 12:01 am
can dhaval say something on this?
i mean still i m not Iully agree or satisIy with answer.
Whatever tests they Iollowed . it must be the minimum requirement Ior accepting the
proposer by applicant Ior getting insurance. In short they are ok with the details Iilled in
and they have cross variIied by doing medical test oI applicant. also as per IRDA they
have 2 year span to complete variIy those details.
Waiting Ior the Dhaval`s reply on this as he is attached to one company.
Regards
Reply
122 Dhawal Sharma December 27. 2010 at 1:47 am
There are certain medical tests depending upon the medical grid under which the
applicant is Ialling. For eg: anyone below age 35 will be catagory A (The Doctor
will visit the client at his home and take blood/urine sample. normal height-weight-
and BMI etc.) and so on according to the medical grid..Higher catagory client has
to visit the medical center in the vicinity oI his area aIIiliated to Kotak LiIe where
diIIerent tests can be done like ECG. TMT etc..
Now medical tests are done to check the physical health oI the applicant at that
point. But there are various other medical Iactors as well (Family history oI BP.
Heart Problem. Diabetes etc) and some other personal Iactors such as smoking-
drinking habits and history oI such usage as well as work related hazards etc..
Because oI all those details. many oI the applicants skip a part or two (Stating that
his/her mother died a natural death whereas it was heart attack nonsmoker.
where as applicant use to smoke heavily at one point)..And all these missed
inIormation add up to a big issue..
Plus always a Iactor oI early claim..Any claim arising within Iirst 2 years oI the
policy are treated as early claim and the cases are investigated thoroughly and there
is every chance oI some misinIormation coming up (Given the way clients share
inIormation the way agent Iill the Iorm)..
And above all. this is an act oI UTMOST GOOD FAITH whatever the client is
disclosing is taken at Iace value by the insurance company and will only be treated
as MIS-INFORMATION iI there is a strong evidence later on to prove that
certain material inIormation was supressed knowingly/intentionally.Minor
inIormation undisclosed is not a big issue..Someone said his mother died a natural
death and later on. that person (Policyholder) dies due to heart attack and later on
company. in its investigation came to know oI this thing. it will be a strong ground
Ior reIusal oI the claim..
BOTTOMLINE Accurate and proper inIormation given. and genuine claim
CANNOT be declined by any company anywhichway
Reply
Hi Dhawal.
Adding Iew more points to your answer. II insurence company come to
know at any point oI time that the insured person puposely hiden materiel
Iacts then they can terminate the policy at any point oI time. So. it is allways
better to be Iare while declaring materiel Iacts.
Dhawal
Thanks Ior the answer . it clearly explains the things .
I would like to add that anyone who does not want to provide right and Iull
inIormation should stay away Irom term insurance. there can be a case
where a person does not want to disclose the Iacts Iully and also wants
company to not reiect the claim . its a Ioolish wish .
Manish
Jig
The Iirst point is that. insurance is a proposal you are putting to insurance
companies . So its your responsibility to give all the Iacts and Iigures and make sure
they are right . Its not companies responsibilities to make sure everything as LiIe
Insurance is not like Mutual Iund or any investment product which is proposed by
Company .
Manish
Reply
126 Jig January 2. 2011 at 5:19 pm
thats good to know.
Dhaval:
Once i Iilled Iorm by myselI only providing each and every minor detailed
mentioned in Iorm.provided all required documents then why again kotak
require/ask to sign three diIIerent papers( like smoker/alcoholic/ working in
hazardous area). all details i have put in Iorm and signed that means
whatever i declared is correct Irom my side.
Second thing. Is it correct that once i cancelled the policy with KOTAK i
cant take insurance again Irom KOTAK? Neither online nor oIIline?
Regards
Jig
127 Hari December 24. 2010 at 5:22 pm
Hi.
I am having Kotak preIerred Term plan Ior 50 Lacs (Ior 30 years). I am paying halI yearly premium 7846 (yearly 15.692). In your
article the premium looks 7.252 per year. I am currently aged 32 and started this plan on 28. Why the diIIerence in the premiums?
Thx
Hari.
Reply
Hari
How was your medical test ? was it normal or there was some problem . they might have increased the premium . It might be
increased in you are a smoker . Also the case may be that earliar it was higher and now its reduced . you need to enquire on this .
Let us know what was the case !
Manish
Reply
129 Hari December 24. 2010 at 8:03 pm
Hi manish.
I am non-smoker. During medical test there was a second test Ior HepB which i am aIIected. But can i continue with this
amount or switch to some other product ? anyway i will veriIy with them..
Thx
Hari.
Reply
Hari
II there is some medical issue. then the premium will be higher only . inIact now iI you go to another one . they will
charge more premium as your age is higher now compared to the time when you took the policy . You can take the
quotes !
Manish
Reply
(Hari As you have mentioned that you have taken up Kotak`s TERM PLAN about 4 years ago. want to share
the Iact that Kotak`s premium quote Ior term plan were slashed by almost 40 around Feb 2010..So iI you will
calculate premium at KOTAK site today with your date oI birth you will Iind the diIIerence..
Reply
Dhawal
Is it not companies responsibility or proIessional behavior that they adiust the customer premium also when
the old premium changes. What is the logic oI continuing the old premium Ior older customers ?
Manish
Reply
(Manish these changes are not with retro-eIIect..They are eIIective Irom certain particular
date..Otherwise everybody having ICICI term policy will ask ICICI to alter their previous premium to
the level oI I-PROTECT..
Reply
Dhawal
Yes . i understand that oIIline term plan permiums can be made same as iProtect . ok i got it now
.
As kotak preIIered term plan is already giving an agent his commissions . the Iuture changes cant
be incorporated into the older policies .
Is that the meaning oI 'retro-eIIect ?
Manish
Reply
135 Suiit January 9. 2011 at 9:03 pm
Dhawal/Manish
I have been paying a premium oI 9k Ior Kotak PreIerred Term Policy Irom last 4 years.
What should I do to change it to new one with cover oI 50L with lesser premium.?
Reply
Suiit
Yes . its recommended iI you want to pay lesser premium Ior the same thing
Manish
Reply
137 Suiit January 9. 2011 at 9:25 pm
Thanks Manish.
But Iollowing the other conversations. I was iust trying to iudge iI there are
any riders Ior doing the same. .
I would be opting Ior this new arrangement soon.
My heartIelt thanks Ior starting out with this thread.
Regards
Suiit
138 Pramod January 10. 2011 at 11:11 am
Manish.
Thanks Ior the wonderIul article. I was searching many websites Ior this inIo as am
planning to take one.
Had you mentioned SA also know. it would have been even better.
Pramod.
Reply
Pramod
Its mentioned within the chart only . see at the end . its Ior 50 lacs SA Ior a 30 yrs
old male Ior 25 yr duration
Manish
Reply
140 shashank kashettiwar December 24. 2010 at 5:31 pm
Very nicely put Dhawal! What you say about the death claim settlement is very very correct. Nobody can deny a genuine death claim.
The systems put in place by the regulator are quite capable oI doing that and the ohter mechanisms created by the laws oI the country
are also there in case.
Why people are so Iocussed on this claim settlement ratio bogey is quite puzzling. Splitting the covers in two so as to Iorce one insurer
through ombudsman and all that is very odd indeed even iI it sounds to be sensible.
Actually looking at the LIC`s premium Iigures and the claim ratio even such conclusion can be drawn that their exorbitant pricing is
allowing them to pay claims generously which shouldn`t have been paid in the Iirst place. A case oI robbing a huge number oI Peters .that
to with astronomically high extra premiums to pay a small number oI Pauls again a paltry sum as covers. And what is so big achievement
in it?
Manish please don`t Ian this claim settlement ratio bogey Iire.
The regulator and the systems are robust enough to pay up a genuine claim. And where Irom are we collecting all such data. From that
reglator only. no? Still we behave as iI the regulator is tracking all such Iigures Ior the sake oI iust data collection only!
II this is the way learned and educated are behaving even aIter receiving so much wisdom Irom this blog being inIluenced by the trust
Iactor` in a single company. it is not a surprise that in our country blind Iaith` is such a prevalent Iactor inIluencing the uneducated and
the rural populace in big way.
shashank
Reply
Shashank
I myselI agree with Dhawal and your comments . and Ior number oI times I have advocated the same. but as you said . common
man does not think this way and have blind Iaith in LIC .
Manish
Reply
142 Sachin March 30. 2011 at 1:28 pm
Hi Shashank.
I think you missed the bus completely.I have an answer to your say doubt why do even educated class is going Ior LIC and not
pvt isurer.
Take this case -~ Why does one buy insurance or Ior that Term Insurance?
In order to ease the Iinancial burden when he/she (the insured) is not there.
Now iust imagine.what is the state oI the dependants iI they have to run Irom pillar to post oI pvt insurers to get the claim settled.
II the policy has been taken Irom LIC.there are 100s oI agents around (Iriends.relatives.Iriend oI relatives.relatives oI Iriends.
take ur pick) to help the dependant Iamily members in getting the claim settled.
I had taken Term policy Irom Reliance LiIe.
When someone told me.iust imagine what is ur mom or wiIe are going to do to settle the claim when you are not around?
I was shocked to imagine that.
Bottom line:Go with LIC not iust Ior some Iancy statistical thing (I know death claim ratio oI LIC would be around the same as
pvt insurers).but Ior the 'ease oI procedure when you are not around.
SAchin
Reply
143 Dhawal Sharma April 5. 2011 at 6:29 pm
Dear Sachin.
I can bet when you say 'SOMEONE told you to imagine. that someone is an LIC agent
How can you be so sure that while making claim to private company. you have to run Irom PILLAR to POST and in case
oI LIC. the claim amount will come to the house via speedpost?? It does not happen that way sir ii..There are certain
Iormalities to be completed to get the claim amount. both at PVT COMPANIES as well as LIC..
Secondly. why do you think an agent will help you or your Iamily members when you people have not taken policy Irom
him?? II you have taken a TERM PLAN oI LIC Irom agent X Ior 20 years and policyholder dies aIter 12 years. that
means agent X has taken commission Ior those 12 years..So how/why would agent Y (as you put it Friends. Relatives.
Iriends oI Iriends. relative oI relatives etc..)would help the greiving Iamily members oI a deceased policyholder when he has
not had anything Ior 12 years and neither will he be getting anything by RUNNING FROM PILLAR TO POST to get
your claim cheque??
Please understand. each and every insurance company is here to do business and make proIits. and they can survive only
through satisIied customers..So each company tries its best to keep its policyholders happy and satisIied by providing
timely assistance and only in case oI some genuine mistake/Iraud do they stop the claim and that can happend with
anybody. PVT COMPANY or LIC.
Dhawal Sharma
URJA WEALTH CREATORS
Reply
144 Sam December 24. 2010 at 5:39 pm
Hi Manish.
Just one more query..how does single premium Iare against yearly premium.
On a single premium policy Irom LIC Ior 35 years. the discount is coming to almost 55.
I want to buy term insurance Ior oI 1 Cr. I am looking at getting Rs 50 lacs as single premium Amulya Jeevan Irom LIC Ior 35 years (till
age 70). balance Rs 50 lacs split into 25 / 25 lacs Irom 2 other insurer`s on a yearly premium basis Ior 25 & 15 years respectively.
I estimate my insurance requirement will go down over the next 10-15 years as hopeIully I will be able to get my selI debt Iree. set up a
sizeable Iund Ior my child`s education along with my retirement Iund.
Kindly advice iI this strategy makes sense. I am 35 years oI age & accordingly. I will have Rs 1Cr cover till age 50. Rs 75 lacs cover till
age 60 & Rs 50 lacs cover till age 70.
Thanx
Sam
Reply
Sam
Your comment that single premium policy is in discount oI 55 is very wrong ! . Its not the right way oI looking at it . You have
not considered the time value oI money .
Its like this. You pay me 1 lacs today and and I will pay you 3k per year Ior next 50 yrs ! . That way you will get 1.5 lacs iust by
paying 1 lac . thats 50 . Right ! . In that same way when you pay Rs 1 today its the same thing that you are paying Rs 2 in next
20 yrs in installments .
Manish
Reply
146 Amit December 24. 2010 at 5:57 pm
Thanks Ior inIormative article.
Reply
Amit
thanks
Reply
148 Pankai Parashar December 24. 2010 at 6:50 pm
the Iirst comment is. very well researched.which i dont agree with..
SBI LiIe doesnt oIIer shield anymore.
it has got two new plans. Smart Shield (Ior Sum Assured 25 lakhs & above) & Saral Shield (upto 24 lakhs)
The premium Ior the given scenario in the post Ior Smart Shield comes out to be
9161 inclusive oI service tax...
Apart Irom that the Accidental riders oIIered with Smart Shield have lower premium than most oI the riders oIIered in the market in same
category.
This is not a critique oI this article.. iust wanted that proper inIormation should be given to the blog readers...
I havent read any comment apart Irom the Iirst line oI Iirst comment..so iI anyone has pointed out this..it is good...
I would like to request Manish to update the chart provided.. also the special Ieature section..
And I guess the premiums Ior other companies should also be checked Irom their websites where they are easily available..
then only we could call this well researched.
P.S. : am an admirer oI the great work being done by Manish. hope my comments will help you.
Reply
Pankai
Yes I accept . Actually I took the premium data Irom policybazaar.com and I guess it had old data. Also I think premium data
here is important but this is not poeple are looking at right now . because Iinally they will be calculating the premium themselves .
There is one person who pointed out this mistake apart Irom you . thanks Ior your comment . I will be changing it soon
Manish
Reply
150 pattu December 25. 2010 at 1:21 pm
Didnt want to comment earlier since I wanted to see how others react. Her are my 2 paisa:
1. 'II somehow death claim settlement ratio be procured Ior every insurance company. then on an average. every company will come
around to 90 to 92..
II we are going to look at Iacts and Iigures the above statment in the absence oI data makes no sense and is misleading. The only Iact is
that death claim data is not available. Period. So this a pure guess.
2. Did you see table 12 oI the IRDA report:
TABLE 12 INDIVIDUAL DEATH CLAIMS : LIFE INSURERS (2009-10)
So I think I can saIely assume this does not contain any maturity claims
So the privates are about 8 lesser in claim paid.
Claim reiection ratio is a little misleading. This should be as small as possible Ior a trusty company and not as high!
96.54 Ior LIC in your table above is the same as that in table 12 oI the report. So it related to death claims. OI course death oI ulip.
endoment and term policy holders.
This statement is also Ior deaths:
The percentage oI repudiations Ior LIC was quite low
at 1.21 per cent (1.33 per cent in 2008-09) as against
7.60 per cent (9.97 per cent in 2008-09) Ior the private
liIe insurers.
3. Group insurance claims are more or less the same Ior everyone acc. to table 13.
4. Being honest and truthIul is mandatory while getting an insurance. But this doesn`t mean claim settlement will be peaceIul. One may
have to go to ombudsmen iI there is delay. LIC or others delays can occur.
5. The (young) readers oI this blog must realize the author. the writer oI this comment and several other contributors are relatively young
people. My guess is their experience with actual term insurance claim settlement is rather limited. So iI you are in doubt about which
policy to buy inspite oI looking at the above Iacts seek out someone with experience.
Seek out some who works in the claims dept oI an insurance company and get oII the record insight Irom them. This is worth the eIIort
since we are talking about the well being oI your Iamily when you are not around.
6. I have said several times beIore that I trust LIC. Not because it is backed by the govt and other usual reasons but because it is a
dinosaur. I trust it not to probe too much into my policy and about my liIe when I die. It is likely to delay the settlement oI 60 lakhs to my
wiIe. But I have instructed her to wait Ior a reasonable time and then go to the ombudsmen. I have also told her she could approach
someone like PV Subramanyam. Manish or Hemanth Ior help (Ior a Iee oI course) to get the money.
Wish you all a happy X-mas
Reply
(Pattu Merry christmas Irom a YOUNG contributor on this blog (as you have mentioned yourselI)..
Let me dissect every Iact which you have put in..Claim repudiation has gone down Irom 1.33 to 1.21 by LIC and private players
have improved to 7.6 Irom 9.97..Just a bit that LIC repudiation is more or less same where as Private players are improving a
great deal I was not born when LIC was iust 10 years old so cannot say what was its claim settlement ratio at that time but
SENIOR CITIZENs like you or other people oI the same age over this blog may be able to share some thoughts but i stick to my
stand that FULL & PROPER INFORMATION PROVIDED AT THE TIME OF FILLING FORM and CLAIM BEING
GENUINE. NO POWER ON EARTH CAN REJECT THE CLAIM (Be it LIC or any PVT company)
I know many people in insurance industry (Particulary Irom LIC) who are since long in the business and have settled claims Ior
their clients..And Iirst thing they say is claim will be settled no matter what. atleast on HUMAN GROUNDs..they have
approached higher authorities. branch heads zonal heads. to help them out in this case..So ONLY EXPERIENCED PERSON
will be able to help out in this case. i doubt..Even experienced person will say the same thing. Iill the Iorm properly provide all
inIormation asked correctly. and the claim will be settled no matter what..So no rocket science in this. new or experience..
LIC is a dinosaur. YES..Its claim settlement ratio is higher. AGREED..But again sir. LIC is not be all end all..Most oI the
Private players are improving and coming up..within the next decade. you will see their claim settlement ratio will be the same as
LIC..till then. advice Ior everybody is iust stick to plain Iact: FILL THE FORM PROPERLY PROVIDE ALL
INFORMATION REQUIRED/ASKED and that would be suIIicient.
(MANISH I will be waiting Ior such a reply Irom now I KNOW WHO
Reply
Dhawal & Pattu
Thanks Ior your comment . I conclude two things Irom the above discussion
1) Giving right inIormation while Iilling up the Iorm is the ultimate thing which will decide iI the claim will be reiected or not .
2) LIC has better claim settlement ratio compared to other pvt companies may be because oI its size .experience and trust .
PS : Lets use each other knowledge and experience to add positive knowledge on comment and avoid personal attacks .
Manish
Reply
The data you have given is death claim settlement ratio only please check page 122 (in the pdI Iile) oI the report. Please correct the
article accordingly
Reply
Ooops . I iust saw that . My bad . I have updated the article .
Manish
Reply
okay. I think you title it as Death claim Settlement Ratio. otherwise it is misleading in the light oI some oI the comments
above (you know by who )
Reply
(Manish. Pattu.
Can we get the URL oI the PDF?
Reply
157 Dr Firoz December 25. 2010 at 2:26 pm
This is my Iirst comment.i cannot express my gratitude towards manish in words.i am a orthopaedician who literally had no
knowledge whatsoever about personal Iinance.
a chance encounter with an insurance agent trying to sell an ULIP policy (which at that time i thought as a godsend) made me search the
net and i came across this blog..and my liIe has changed completely since then.
this is a very inIormative blog..what is better is the comments section..i have learnt so much. but still need to learn a ton.
anyway in my humble opinion. every novice like me should at least read a Iew good books like Rich dad Poor dad so as to gain the
correct perspective and then this kind oI blogs will enrich him..
Regarding Term insurance. aIter going through above and also tinkering with various premium calculators.
i. take initial term insurance Irom LIC (costly but peace oI mind)
ii. aIter a Iew years evaluate pvt players and take term Irom them with riders
iii. accidental death beneIit should not matter much
iv. critical illness and permanent disability are much more important. I have Iound that the CI charges are much more. so whether to take
CI rider with term plan or another health plan?
Kindly comment on my assumptions and show my mistakes (which i am sure are there as i am novice)
Thanks again
Reply
Dr. Firoi
Thanks Ior your comment . I Ieel honoured . Regarding your points
1) that decision is yours iI you want to go only with LIC . I would suggest read Dhawal comment on this comment section .
2) Thats Iine
3) In all cases accidental death is highly probable. and you can get extra sum assured with a little extra cost . So depends on how
you take it .
4) I agree .
There is a book coming on personal Iinance purely Ior Doctors by PV Subramanyam . Keep an eye
Manish
Reply
159 Shilpi December 29. 2010 at 2:24 pm
Hello Manish.
Very well researched and elaborate article Manish!
I couldn`t agree with you more regarding Accidental Insurance.
we suggest individuals to buy comprehensive accidental policy along with medical insurance policy. Critical Illness and
Permanant Disability are equally important.
Term plans certainly are best but it is always useIul to diversiIy with 2-3 diIIerent companies. A mix pvt and public
company is Ok. Most importantly the amount oI Sum assured should be appropriate. Hyper or Hypo insurance can be
harmIul!
Being a doctor is one oI the most responsible and stress giving proIession! The nature oI their work always keeps them
busy and occupied. They are hardly leIt with time and energy to take notice oI their own Financial Health. This leads to
ignorance and various hasty and unIortunate decisions.
I hope all Doctors can get some unbiased advice beIore they take any decision with Iinancial impact. We trust them with
our lives. hope they can also trust someone with their money!
shilpi
Reply
Shilpi
Good points Irom your side . I am sure every proIession demands high busy-ness at times . One can take help oI an
advisor iI one does not have time to plan it themselves
Manish
Reply
161 PolicyWala December 25. 2010 at 9:30 pm
Excellent comparison. Must read Ior all the people. who are looking to buy term insurance. Keep it up.
Reply
Policywala
Thanks . I think you are the right resource to comment on how authentic and Iresh is the data on the comparision sites . I Iound
that some oI them had stale data .
Manish
Reply
163 Jana December 26. 2010 at 12:26 pm
Manish.
I bought LIC amulya Jeevan 3 years back Ior 25L. ICICI PruliIe 15L & 10 L. Aegon Religare 10L & 10L & still continuing paying
premium. All polices are in Iorce & medical tests were conducted at the beginning. There is no medical issues at that time.
My question here is. now my Blood Pressure levels are little increased & I`m taking medicine Ior that. Do I need to inIorm my medical
status to insurance companies or keep silent ? How will these Insurance companies will react at the time oI claim i.e no BP during
medical tests & developed aIter 3 years oI insurance status (in Iorce).
-Jana
Reply
Jana
No . its not a maior change in your health . You dont need to inIorm them on this . They should pay the claim without any issue as
this is something which happened aIter taking the policy and not at the time oI taking the policy
Manish
Reply
165 Balaii December 26. 2010 at 5:10 pm
Hi Manish.
Thanks a ton Ior the article. I am 31 yrs old working in a soItware Iirm. Got married recently and have a 5 mnths old girl. I have not
taken any liIe insurance soIar. Now I am planning to take Term insurance. AIter some research. i have Iinalised the Iollowing.
1. Planned to take SBI smart shield with 25 lakhs SA. Additional critical illness rider Ior 5 lakhs and Permanent disability rider Ior 25
lakhs
2. AIter 3-5 yrs. i will take another Term insurance policy Ior 25 lakhs
your comments please.
Regards
Balaii T K
Reply
Balaii
Looks Iine to me . As Iar as you are careIul while providing the inIormation in the Iorms . any term insurance should be ok .
Taking riders is good .
Manish
Reply
167 shashank kashettiwar December 26. 2010 at 11:34 pm
Balaii.
You are going to commit a very common and grave mistake oI liIe insurance planning. What is it? Buying 25 lakhs now and
deciding to buy 25 lakhs 3 yrs down the line. This is akin to PLAYING GOD. Means as iI you know Ior certain that
nothing is going to happen to you within coming 3 yrs! Don`t do this. Start with 50 lakhs or more and then reduce it. iI at all
you don`t want to carry more insurance.
(From your brieI proIile I would say even that 50 lakhs cover is also underinsurance. but let it be!)
shashank
Reply
Shashank
Good point . I didnt give much thinking why Balaii is doing this . thanks Ior bringing this up .
May be he might be having additional responsibility coming his way in next 3 yrs like another child or some planned
loan . so let him conIirm what is it .
Manish
Reply
169 James December 26. 2010 at 6:23 pm
The IRDA report clearly says Death claims so it does not include maturity payouts. UnIortunately Ior the privates and their agents LIC
has the lowest claim reiection ratio. I think the table you have given above should clearly mention about this.
A simple search Death claim` in the pdI Iile would have revealed this
I am surprised to see that the research put in does not match your own previous standards. Blind Iollowers oI your blog will be
misguided by such hasty work.
This also allows agents like Dhawal to Iurther spread misinIormation.
- A disappointed Ian
Reply
James
Yes . I accept I did not put much eIIort in Iinding this part . my apology . However the Iact that II a person takes all the eIIort in
putting right inIo while taking the policy . his claim can not be reiected still holds true . Also another point is that this death claim is
Ior death arising Ior policy holders oI all kind oI policies like term plans. endowment and ulips and as LIC has the biggest market
in Endowment plans and ULIPs which are small ticket sizes unlike term plans. the payout is not such a big issue .
Manish
Reply
171 James December 26. 2010 at 8:10 pm
Thanks Ior your reply. No apology reqd though.
LIC does have a lot oI ulips/endowment etc. compared to term plans. This has a lot to do with Indian buying mentality. The
same mentality exists while people buy Irom private players. Private players also have business Irom non-term plans more.
The key point is sums assured in non-term plans are low. So iI private players don`t honour these claims how will they
honour big amounts in terms plans. The reasons oI the claims being the same: death.
People don`t Iill up inIormation careIully. That is the same on an average Ior LIC and Ior other players.
I would like to think the privates latch onto the misinIormation more than LIC does.
Yes iI all inIormation is correct claim cannot be denied but it can be delayed. High the sum assured I Iear the chances Ior
delay will be more. Sometime back shubramani.com had such a story.
Reply
172 Krish December 27. 2010 at 11:51 am
For those who advocates right Iill up oI the Iorm. I would like to say that insurer claim/protection should be made
mandatory as like in West. The insurance companies and agents should be made responsible that iI they accept the
premium Irom any person. the claim must be settled. There should not be any arguments.
UnIortunately the mighty set-up oI insurance organization and agent`s knowledge oI dealing with the customers are
used to counter the claims which is very unethical. AIter all. an individual buys Iew policies in whole liIe time. You
can`t expect him to research every stuII.
In our country a lot need to be done. I would like to see 100 settlement Ior all the premium payers. No less
percentage is accepted.
Reply
Hi.
Think one moment that around you Iew people are their who need Insurance cover at any cost with hiding the
reality (materiel Iacts). In that case also you are thinking that claims must be settle without any questioning?
Insurer`s ask more inIormation or search more inIormation about the hapening oI the event when their is early
claim or when they have doubt about the cliam aIterwards also. So. iI you think that they have to settle all the
claims. then what is your say about the people who want to have insurance cover at any cost???
Reply
174 Krish December 28. 2010 at 2:05 pm
Let insurance companies come out with all kinds oI tests to understand the customer. Let them reiect it.
iI they want to. prior accepting the premium. I am saying let the companies do their due diligence or
complete investigations beIore issuing a policy. Once the premium is accepted. the company should
take the responsibility and should not have the right to reiect claim. In west. right to reiect claim aIter
accepting premium is not there. That`s the protection to the customer that am talking about.
Reply
Krish.
Insurance business runs on law oI average. II according to you they start to veriIy in all grounds
to all aged people then their may be more mantainance cost which again they will suck Irom you.
One more thing. their is a irrevocable clause in insurance. Under which insurer have the right to
cancel the policy within 2 years oI start oI the policy iI they Iind something Iishy related to
materiel Iacts. This clause protects both insurer and insured Irom escaping the responsibilities.
When you are 100 genuine while delcaring about Iacts related to your health. income and
Iamily background then why you have to worry about reiection? They have to accept.no doubt
on that either you have taken in India or outside India.
Reply
Krish
Is it manadatory in US that iI a person pays the premium . he cant be denied the claim on grounds oI mis-
inIormation or any thing else ? I doubt it ! . but i will rely on your inIormation and Iacts provided .
Manish
Reply
(James Me spreading MISINFORMATION??
Me saying LIC settlling its ENDOWMENT & MONEYBACK policy claims in such a nice way that they even send maturity
cheques (Post dated) even beIore the policy matures is MISINFORMATION?? No sir. check it with most oI the LIC
policyholders and they will vouch Ior it..They receive this intimation months in advance to deposit policy documents which are
about to mature.NO MISINFORMATION..
My statement that 75 out oI 100 reiected cases are Irom LIC is based on the table above produced by MANISH..Do your
calculations and check iI this 75 is aggegerated.NO MISINFORMATION..
Now to the real table oI IRDA report..It says LIC settled 96 claims and TOTAL PRIVATE SECTOR 85..This ratio is
greatly eschewed because oI the presence oI new players like CANARA HSBC. AEGON RELIGARE etc. whose claim
settlement ratio is plumming around 70..So iI we exclude them (Because most oI the readers over this blog who buy pvt
insurance players are limited to ICICI. KOTAK. HDFC etc..then these companies average too will come around to 90
92..Still stand by this statement oI mine and mind you. again this is NO MISINFORMATION iust a plain calculation by Iacts
which you are not sure oI because you are not Irom insurance sector..
Lastly. when i was talking oI 'AVERAGE FOR EVERYBODY (Including LIC) coming around 92. then IRDA report itselI
proves me wrong when it says INDUSTRY AVERAGE (Including LIC) is 95..Yes. this is misinIormation that i tried to put it at
92 where actually it is 95..
DHAWAL SHARMA A disappointed and hurt Iellow reader oI the blog
Reply
178 iames December 27. 2010 at 2:22 pm
Dhawal.
This is what I reIer to as misinIormation:
Extracts Irom your post:
1. 'IRDA report with its claim settlement ratio part. nowhere mentions it to be DEATH CLAIM SETTLEMENT RATIO
~ Totally wrong. Just shows you have not read the report careIully
2. 'maior chunk oI the LIC policies are endowment or moneyback policies which are settled very nicely by LIC (In some
oI the cases. Iinal amount cheque post dated reaches the client even beIore the last date oI policy) and most oI these
endowment and moneyback policies are running Ior last so many years so they get settled very smoothly.
So this Iactor should also be kept in mind that its not DEATH CLAIM SETTLEMENT ratio but iust claim settlement ratio
~ First para is irrelevant (since the data is about death claims) and misleading. last sentence as no. 1 is plain wrong
3. 'II somehow death claim settlement ratio be procured Ior every insurance company. then on an average. every company
will come around to 90 to 92..
~ Same reasons as above ~ Wrong. They are available in the report.
4. Accept your last point. But more the number oI policy more will be claims pending and reiected. That is why people use
percentages.
Why do I say misinIormation. (its a strong word. I accept): You are an agent you should know better about what the report
contains. So wrong statements Irom you will be taken on Iace value by many people. How many people have time to look
at a 500 page PDF Iile?
Reply
(James My apologies that i didn`t checked the report regarding 'INDIVIDUAL DEATH CLAIM part
So again. wrong inIormation on my part. but not MISINFORMATION (Intentionally or unintentionally)
DEATH CLAIM SETTLEMENT RATIO individually Ior each and every insurance company is not there (Or is
it???)..average ratio given(Inclusive oI LIC and pvt players) i.e. claim settlement ratio accross the industry is 95
where as i have said it would be somewhere around 92..i believe that is not way oI the mark
Last point. again i want to emphasis that no need to be so Iussy about claim settlement ratio..iust Iill your Iorm
accurately and claim will be settled..
Reply
180 iames December 29. 2010 at 11:15 am
individual death claim details oI all insurers are given on page 122 (in the pdI Iile) oI the report. This
corresponds to page 106 oI the report.
ps. The beauty oI a pdI Iile is it is searchable. All one needs to type is
'death claim or '96.54 to get details.
The dictionary deIines misinIormation` as inIormation that is not correct. I would like to think this is the same
as wrong inIormation`.
I will however accept it was not intentional on your part.
My point is people in the Iield have to be careIul about such things.
Reply
yes .. even I didnt gave much thought on this while taking inIo . my mistake
Manish
Reply
(James/Manish i accept and apologize..as James rightly put it. me being an agent. i should be in
know oI things in much better way or i should have use the technology oI SEARCH
appropriately..would be more cautious Irom now on..Sorry once again Ior any unintentional
MISINFORMATION on my part.
Reply
Dhawal
Np . happens
Manish
Reply
184 Atul December 27. 2010 at 10:41 am
Hi Manish.
This is really good piece oI inIormation. With my liabilities increasing I was planning to buy more term insurance. This inIormation will be
beneIicial.
Regards
Atul
Reply
Atul
Nice to know that . I would suggest do your insurance planning where you look at your Iuture liabilites also and take the required
cover right now .
Manish
Reply
186 Shankar December 27. 2010 at 2:18 pm
Hi Manish.
Can you please explain what is rider in Term liIe insurance???
Reply
Shankar.
Rider is the extra beneIit which you will get along with SA. For example. iI person take accident death rider and the person who
taken. dies oI accident then he will get the equal amount oI the Rider SA which he opted. II accident death not occured during the
period oI the Term then nothing will be payble.
Reply
Shankar
Riders are like 'EXTRA things you can take along with term plan . iI you dont take them you will be iust paid incase oI death .
But riders give some extra beneIits Ior which you pay additional premium .
Manish
Reply
189 Pradeep December 27. 2010 at 6:42 pm
Hi Manish.
I had a query regarding validity oI the term insurance plans outside India.
Assuming that one buys one oI these plans when in India satisIying all the conditions. And aIter Iew years. gets deputed to some other
country Ior some period oI time even though the premims are paid out regularly. II unIortunately something happens during this period.
will the claim be still a valid claim? In short. is the term insurance valid iI death occurs outside India?
Reply
Pradeep
Yes oIcourse .
Just let company know incase you are going out permanently and your residential status changes (like iI you become NRI) .
Manish
Reply
Hi .
Even inIorming the insurance company is about ur getting relocated is not required.. insurance is issued on the basis oI the
inIormation given by u at the time oI taking the policy. iI any change occur aIter the issuance oI the policy u r not bound to
inIorm the insurance company.
iust keep paying ur premiums. although change in address is an important thing to inIorm iI u want to receive premium due
notices and all.. but now a days i think most oI the companies provide that on email too..
Reply
192 Sagar December 27. 2010 at 7:14 pm
Again Great Job Manish.
1)What is diIIerent between Amulya Jeevan I & Anmol Jeevan-I
2)I am over weight person so they can reiect application Ior that
3)Accidental Disability Rider is most important think but LIC not provided. what to do
4)Right now I am 29. Is the advisable to take Term Insurance 35 years
Thanks in advance
Reply
Hi Sar.
1) Amulya Jeevan have SA cover oI less than 25.00.000 while Anmol Jeeven starsts with min SA oI 25.00.000.
2) It depends on the underwriter oI the company with whom you are opting to take the insurance. II you are overweight then they
may charge some extra premium or they may reiect the proposal.
3) II you are interested to take accideent rider then go with the chart which Manish published and opt other companies. As you
may see premium is also high with Term insurance product oI LIC`s. So better to go with suitable companies which Iullills your
needs.
4) My advice is to take the Iullest available term. because iI you want to buy the same product aIter Iew years. premium will be
high with that they may ask Iew more things about your Iitness. So while taking term insurance plan Ior the longest available
period.
What is your say Manish??
Reply
Basavarai
PerIect
Manish
Reply
195 Amit Gulati December 27. 2010 at 7:59 pm
Hi Manish
I have one concern with the term plan Ior Rs.20 Lacs I have bought Irom ICICI pru. While Iilling up the proposal Iorm my agent
speciIied 'high Iever as the reason Ior my Iather`s death whereas he died due to heart attack caused by high BP. Do you think insurance
company can reiect or delay the death claim due to this?
Thanks
Amit
Reply
Amit
The Iirst point is that why did you allow this to happen ? Do you know the reason why Agent did this ? I will tell you . II he had
mentioned that it was due to heart attack . there was a chance that your premium might have increased due to a bad Iamily
medical issue . this might have caused you to show dis-interest in taking the policy or you might turn the deal down and which
might have directly impacted your agent commissions . So he made his path smooth at the cost oI your insurance portIolio . tomm
iI you die oI heart attach . the company can reiect the claim saying that a part oI this was because oI medical history in Iamily
which was not told to them and its Iair to reiect your policy .
II you were a insurance company. even you would do it ..
Discontinue the policy now and take another one with 100 right Iacts and then you can be assured that your Iamily will get the
money Iter you are gone .
Please Iill the Iorm yourselI . Not your agent .
Manish
Reply
Manish
Many thanks Ior your response and so much patience while replying to several such queries. I will deIinitely take some
suitable action on this.
Thanks & Regards
Amit
Reply
Nice ..
Reply
Manish
I iust came to know about the 'Incontestability clause in LiIe Insurance which prevents the insurer. aIter two years. Irom
denying liability under the policy Ior misrepresentations or con-cealments by the insured.
Do you think this may be oI any beneIit to the Iamily oI the liIe assured in such a case?
Thanks
Amit
Reply
Amit
Yes . this clause protect customers Irom getting claim reiected Ior very minor mistakes done in the Iorm . Those
things are well deIined in IC-33 which is a handbook Ior IRDA course Ior becoming an insurance agent . but this
clause does not mean that you can do any mistake and hide inIo and company can not reiect the claim . iI you hide
big Iacts like you were smoker or you didnt had a good medical background . then this clause does not prevent you
Irom that ! . So iust make sure you understand that this clause not a loophole in the system which a person can use
and give wrong inIormation and then get out oI it iI 2 yrs passes .
there is no alternative than provide right inIo in the document .
Manish
Reply
There is a term used 'material Iact.
II a 'material Iact is not disclosed then the incontestability clause doesnt apply...
a material Iact is a Iact which might have aIIected the decision oI the underwriting the policy.
in Amit`s case the death oI his Iather due to heart attack will become a material Iact in case god Iorbid the
same happens with him..
so please do as Manish instructed. discontinue the policy.take a new one.and more importantly
discontinue the agent ...
Reply
202 bharat shah January 3. 2011 at 4:05 pm
(amit
Iirst take newpolicy then discontinue the existing!
Reply
203 Amit puri December 27. 2010 at 11:58 pm
i was looking Ior all the data which is compilled by manish. thanks a lot..
my query
iI we spilt the total sum assured Ior term plan in two and opt Ior two diIIerent insurance company will it not be expansive as in some case
higher the amt the premium is lower. i studied this Irom on line ageon religare term plan calculator?
second query
except kotak which one would u like to advice me Ior 1 crore term plan?
thanks and with regds
amit puri
Reply
Amit
Yes it wil be bit costly . but it gives you Ilexibility to reduce the cover later . but you have some plans which give you that option
later
You can look at SBI liIe and Birla as option Ior 1 crore .
Manish
Reply
there are high sum assured rebates in most oI the term plans..
Ior example : iI u opt Ior 50.00.000 SA in SBI LiIe Smart Shield . u will get a 7 rebate on ur basic premium.
For 1 cr & above. apart Irom this rebate one more rebate is there which is 0.25 Rs. per 1000 SA.
other companies also have similar rebates. this is why Ior higher sum assured premium is lower
Reply
206 kumaran December 28. 2010 at 12:22 am
II giving correct inIo mean no chance oI claim being reiected why should one take two policies:
I dont see why one should reduce sum assured at later time because more money is anyway good and one insurer with correct inIo is
good enough. Also means less work to do Ior nominee.
Reply
Kumaran
May be Ior you there is no case oI reducing the cover. but what iI some one has to ! Ior any reason . May be some one wants to
reduct the cover onces his home loan is over in 5 yrs. what iI some one wants to reduct the cover once her daughter is married
and gone to other home . there can be some cases !
Manish
Reply
208 ariun December 29. 2010 at 4:12 pm
I have had a ridiculous experience with an LIC Agent recently.We bought 2 IiIty lakh LIC Amulya Jeevan policies in Sept 2010(My wiIe
and I) and handed over separate cheques Ior the same.The money was debited Irom our bank accounts the next day itselI.We were told
that the policies would be sent to our home address in a month.Both our basic medical tests were also done(haemoglobin.blood
count.urine tests.ECG).
However.in Oct .my wiIe was inIormed that she would need some certiIicate Irom a gynaecologist also.We then decided that as our long
term plans had changed(wiIe leaving iob).it would be better not to take the policy in my wiIe`s name and inIormed the agent.He dallied
around Ior 2 months and then suddenly said that the policy(wiIe`s)has come through.We think that he Iaked the gynae report and pushed
the policy through on his own despite being speciIically asked Ior a reIund!Is it not lack oI ethics and a breach oI trust on the part oI the
agent?Could something be done?
P.S We do not have either policies in hand right now as they are apparently being sent to our permanent address.
Reply
Ariun
Yes . its a clear case oI unethical and vilation oI code oI conduct . The agent has Iallen short oI his duties knowingly . I am sure he
does not want to loose his 25 Irom the 60-65k premium Irom both oI you iointly . so its around 15k commission Irom him .
honouring your wish would have meant that he looses 7.5k . So I would say you should complain to IRDA along with agent
name and his agent-code (incase you dont have it . thats ok i guess. you might try to get this inIo Irom IRDA website) .
Manish
Reply
Hi Ariun.
It is good Ior you that you have not yet received the Policy Documents.
There is a clause called Free Look Cancellation..which gives u 15 days Irom the receipt oI policy to reconsider your
decision iI u r unhappy with any terms and condition...and in my opinion this will also include the behaviour oI ur
agent..so as soon as u get the policy check out the Free Look Cancellation clause and apply Ior the same.. u will get ur
premium back aIter very minor deductions.
However. I would like to advice you to have policy under your wiIe`s name too even iI she is leaving the iob. u may opt Ior
lower Sum assured.
Thanks & Regards
Pankai
Reply
211 Sunil Date January 8. 2011 at 6:35 pm
( Pankai Parashar This article is about term plans. II the wiIe has leIt her iob and may noyt have an income. why
would she require insurance ? Curious to know ( I am discounting that she may again get a iob later)
Reply
( Pankai Parashar This article is about term plans. II the wiIe has leIt her iob and may not have an income. why
would she require insurance ? Curious to know ( I am discounting that she may again get a iob later)
Reply
213 Arudra Kumar December 29. 2010 at 5:58 pm
Hello.
I have taken a SBI Shield term insurance policy in 2009. BeIore taking this policy. I have taken 2 LIC policies in the year 2005 and
2006. Both these LIC policies are In Force as on date.
However. the details oI these policies are not entered in the SBI Shield application. At that point oI time I was ignorant that this
inIormation should have been declared (The application was Iilled by the agent). Thanks to Jago Investor Ior enlightening people like me.
What should I do now? Need some advice please.
Regards.
Arudra
Reply
Arudra
This is a clear case oI hiding oI previous insurance policies and can surely become a ground Ior reiection . Please update this
inIormation in your term policy .
I would suggest close the current policy and re-take it again . I am saying this because the term plan rates are slashed a lot in
recent times and you will get the same Sum assured Ior the less premium . Check it
Manish
Reply
Hi Arudra..
Manish`s advice is very apt..
SBI has revived Shield & come up with Smart Shield plan where in premiums are much lower than Shield.as u have
taken Shield only last year. it is very much advisable to u that u opt Ior Smart shield & discontinue shield. u will get it at
much lower premium than shield.
Reply
216 Venu December 29. 2010 at 8:26 pm
Manish.
Once again. good iob!! Very helpIul inIormation about term plans !!
One question I m interested in a liIe cover with AR. CI. DR riders and assuming that cost/permium is not a Iactor. which one oI the
Iollowing you recommend? And why?
1) Buy a term plan like SBI Smart shield with all three riders AR. CI. DR
2) Buy a pure term plan and buy another plan Irom general insurance companies like National Ior accident. disability and critical illness
cover?
Thanks in advance.
Reply
Venu
You can go with SBI Smart shield or Even Kotak preIIered plan . these are oIIline options . assuming you dont want online one`s
. I dont have any reason to say which is better or not. Just make sure you Iill all inIo correctly in the Iorm
Manish
Reply
218 Paresh December 30. 2010 at 3:44 pm
Hi Manish.
Excellent article as always. I already have Jeevan Amulya Term Insurance cover Ior 35 lakhs. Planning to go in Ior another Term policy
to cover the liability that will arise out oI a home loan (exceeding 35 lakhs). Someone told me to wait Ior LIC to come out with Mortality
tables (the ones they are using were last updated in 1995) beIore I buy a new Term Plan. Also mentioned that all Private LiIe Insurance
players use the same table. The new revised table Irom LIC will bring down the Insurance premiums.
Questions:
First oI all. is the inIormation I was provided correct?
Secondly. does it make sense to wait Ior the revised tables (are they going to come in the next Iew months)?
Tempted to give Kotak plans a try. aIter reading your article.
Reply
Paresh
Yes . thats true . I am not sure about when it will come or iI it will come at all . but their table is old and new should be there soon
! .
I dont think you should wait. what will you do iI bad thing happens in between ! . I would suggest Ior got Kotak or anything .
atleast Ior 50 at the moment and rest later .
Manish
Reply
220 Paresh December 30. 2010 at 3:59 pm
Hi Manish.
Excellent article as always. I already have Jeevan Amulya Term Insurance cover Ior 35 lakhs. Planning to go in Ior another Term policy
to cover the liability that will arise out oI a home loan (exceeding 35 lakhs). Someone told me to wait Ior LIC to come out with Mortality
tables (the ones they are using were last updated in 1995) beIore I buy a new Term Plan. Also mentioned that all Private LiIe Insurance
players use the same table. The new revised table Irom LIC will bring down the Insurance premiums.
Questions:
First oI all. is the inIormation I was provided correct?
Secondly. does it make sense to wait Ior the revised tables (are they going to come in the next Iew months)?
Tempted to give Kotak plans a try..
Reply
221 Prasad December 30. 2010 at 7:45 pm
Thanks Ior an excellent article. Manish. It came at the right time Ior me. when I am on the look Ior a term plan Ior myselI. This will be my
Iirst term plan. and I`m decided to do it the online way. I`ve decided on the iProtect Irom ICICI. mainly due to the additional rider that it
oIIers. For my age (30yrs) and health condition (non smoker. non drinker. no medical illness). I`m getting a premium oI Rs.9400 Ior SA
value oI 50 lakhs and a period oI 30 years.
AIter another 6 months. I`ll take another term plan this time oIIline Irom LIC Ior a similar amount oI 50 lakhs. Please comment about
my plan. Any suggestions Ior the same?
Also. let me know what would be your advise about insurance coverage Ior my wiIe right now she is a homemaker. Is a term plan
advisable. or should I go Ior some endowment policy?
Reply
No term plan Ior her as you are not Iinancially dependent on her at all .
Also i would advice Iirst go Ior 50 lacs cover Irom LIC . and then Irom other company . why not Kotak or SBI . why ICICI
Protect ?
Manish
Reply
223 Prasad December 31. 2010 at 7:01 am
I wanted to go Ior an online policy. That rules out SBI. The Kotak e term plan does not provide additional riders. while
ICICI iProtect does. That was my only reason to choose ICICI over the rest.
Reply
224 ariun December 30. 2010 at 11:11 pm
Regarding posts 164/165/166 Thanks Mr.Chauhan and Mr.Parashar Ior the advice.Does the IRDA really look into these cases?AIter
all.it was a verbal instruction and the agent could iust deny the whole episode.The only thing which gives me hope is that he had asked
Ior some gynae tests which we did not go Ior.
Reply
Ariun
I am assuming that he has some kind oI written prooI Ior what he is saying . iI it was iust verbal communication to agent . then it
cant be proved and it does not hold any water.
Manish
Reply
226 shilpa December 31. 2010 at 2:13 pm
Manish
Good article and so is the subsequent discussion.
Is there any drawbacks oI taking an online version oI the term plan . apart Irom the Iact that the initial time taken Ior getting the policy
could be higher ? I ask this because I have an ICICI Pure Protect plan Ior Rs. 50L taken two years ago which comes to an annual
premium oI Rs.10100
Now Ior the same parameters . the iProtect version comes to a premium oI Rs. 6400 Ior my present age. Would it not be a sensible
thing to switch to iProtect ?
Shilpa
Reply
Shilpa
II the riders which you opted in ICICI Pure Protect are same with the iProtect then you may replace with existing one. Else think
twice about the rider part also while taking. What is your view Manish?
Reply
228 Manish Chauhan January 1. 2011 at 2:18 am
Basavarai
I replied to Shilpa . you are correct. But i dont think she has taken any riders !
manish
Reply
Shilpa
Yea .. it would make sense . considering you give a thought on what Basavarai said below . incase you also have riders (which I
think you dont have looking at premium) . iust see how much badly you want those riders. iI not then you can shiIt to ICICI i-
protect
Reply
230 Gunian Gandhi December 31. 2010 at 4:29 pm
Manish Thanks Ior this nice Personal Finance blog.
AIter reading the review oI iProtect I went Ior ICICI Prudential iProtect option 1. SA 1 crore. Term 30 years. My age 38.
Applied Ior it on 4th December. Medical Tests including TMT were done by 10th Dec. Received policy on 24th December. EIIective
Irom 22nd December.
Reason Ior going Ior ICICI lowest premium Ior 1 cr amongst three online term policies one oI the best claim settlement ratio among
private players.
Have also went Ior 25 Lakh LIC policy premium reciept received. yet to receive policy.
Thanks to this blog (articles comments) decided to go Ior online. ICICI and two term policies.
I have 3 LIC polices investment liIe type. Going to surrender it. Will get less money back than the premium I paid. But will put that
money in PPF and hopeIuly will recover it down the line.
Reply
Gunian
Looks good. iust see that instead oI surrendering your policies . it might make sense to make it paid up . Look at this discussion :
http://www.iagoinvestor.com/Iorum/lics-ieevan-anand-policy-surrender-value/854
Manish
Reply
232 Gunian Gandhi January 1. 2011 at 2:13 pm
Manish.
Checked with DO and looking at PROs n CONs the paid up money will iust seat their accumulating no Iurther bonus.
Instead i put in PPF i will recover the premium paid in 3-4 years and in next 10 years by still keeping in PPF. will get
more return then the policies would have given me at maturity.
Reply
Gunian
You have Iound what others millions oI policyholders dont ! . Simple logic!
Manish
Reply
234 Gunian Gandhi January 1. 2011 at 11:43 pm
Was it a compliment or pun intended.:-)
Reply
Gunian
It was pure compliment. this is a simple thing and one should be able to Iind it out . still many struggle .
you have shown good ability to come to the conclusion
Manish
Reply
236 sk9 January 1. 2011 at 8:11 am
I am wondering. that while purchasing a term/mediclaim insurance. would one need to declare that he has migraine? Perhaps iI declared.
it may be used by the company to later Iind a reason not to make a payment?
Reply
Saurabh
Yes you should declare this . the company can not reiect any claim on this as they might be charging extra premium on this . So
this Iact can become a reason Ior increasing the premium . but not reiection oI claim iI you have declared it
Manish
Reply
238 Subin C B January 1. 2011 at 12:25 pm
Hi..
This is a wrong data you gathered in terms oI claim settlement.. as per my knowledge LIC has not done 96 claim settlement iI you see
BirlasunliIe claim settlement is 99.89 till last iuly and am not sure about other companies. Please share with me iI am wrong.
Reply
The data I gave was Irom IRDA report . So what do you have to say that IRDA authenticity ?
Manish
Reply
240 Subin January 2. 2011 at 11:33 am
Please go through this link.. sorry iI am anything wrong..
http://insurance.birlasunliIe.com/LinkClick.aspx?Iileticket3cgLDAv6MMk3D&tabid279
Regards
Subin C B
Reply
I have no idea what that 100 means in reality . but IRDA report should be the Iinal one and should be taken as
source oI truth . LIC also have 95 settlement ratio .
Manish
Reply
242 Prasoon January 1. 2011 at 3:25 pm
I already have a policy with A. I`ve applied Ior a new policy with B. I`ve declared that I`ve a policy with A. I`ve not received the B`
policy yet. II I apply Ior a policy with C. I`ll tell them about A. But do i need to tell them about B as well. Ior which I`ve not received the
conIirmation yet?
I hope. I am not complicating with this ABC.
Reply
Prasoon
I am not sure on this . but I think as you have already applied Ior it . you should be telling this to company C . You might want to
get more inIo on our Iorum : http://www.iagoinvestor.com/Iorum/
Manish
Reply
II you read the proposal Iorm it generally mentions that do you already have a policy or have you applied Ior one etc.
So mentioning about existing and applied policies is a must. Alternately. you can wait Ior decision Irom B and then provide
appropriate inIo to C.
Reply
Sunil
Thanks Ior conIirming this
Manish
Reply
246 webhaw January 1. 2011 at 5:04 pm
Hello Manish.
First oI all i want to wish a Great New Year...2011. And i must say your article is wonderIul and it is helping us in a big way..I
have some Q`s ..
I am 30 Years old. and planning Ior term insurance Ior 30 years term.
What should be the correct SA ? and which is the best plan ...?
I already have Home loan oI 20 Lac and i am paying EMI Ior that....
I am also planning Ior Term plan Ior my wiIe (27 year old) ..What should be the correct SA ? and best plan ...Ior her term
plan...? as she is also working..and she is already paying separately Ior loan oI 5 Lac....
In this page i Iound ICICI iProtect is best..and what about Kotak`s eTerm/PreIerred Term plan..?
I Iound Kotak is some what cheaper...compare to ICICI....n Why there is a big diIIerence in premium Ior various
companies....are not they providing almost same things...
I have a doubt that ..Why people what additional riders..say Accidental ... is it..people require more money. iI the death occurs
due to accident.?..II it is so..directly take the policy Ior 50 Lac SA.....
25 Lac SA 25 Lac Rider (Acci) 50Lac SA...(Why not)....
Please. answers my queries...
Thanks in advance..
web
Reply
wehaw
This article will help you to understand how much insurance you should take : http://www.iagoinvestor.com/2009/11/how-much-
insurance-cover-is-enough.html
Manish
Reply
248 Amit puri January 1. 2011 at 7:37 pm
Hi Manish
unable to understand why on line policy vs policy through agents cost is less.
the reason usualy given is that agent is not involved. right.
but then one time agent involvement at the start oI poliy why it should cost so much. why it is not a one time extra charge?
iust to uderstand the costing model oI insurance companies.
amit
Reply
249 Prasad January 1. 2011 at 11:08 pm
Agents get a commission oI every premium amount you pay. and that is not limited to the Iirst instance alone. I am not sure what
margins they get. but assuming the commission Ior the agent is 10 oI the premium. every time you pay a premium oI Rs.10.000
towards your policy. the agent gets Rs.1000 and the insurance company gets the balance Rs.9000. That is why online policies are
cheaper.
Reply
Amit
Its not iust agent . its also less cost due to online model . also agents gets commission every time you pay premium
Manish
Reply
251 Ankur January 2. 2011 at 9:04 pm
Hi Manish.
Nice article. I bought Aegon religare iTerm plan sometime back. It covered me suIIiciently in terms oI death amount(50 lac). But looking
at claim settlement ratio Ior it. do u think I should quit and enroll Ior others. I am bit conIused here. I am Married and 27 yrs old.
Reply
252 Ankur January 2. 2011 at 9:28 pm
One general query. lets say iI one drink and/or smoke occasionaly.like 1-2 times per month..should he/she decalre same while
purchasing liIe term insurance? Is it case oI tobacoo or alcohol user? Any idea why do insurer asks such inIormation while Iilling up
application? I noticed it increases the premium. Please provide me link iI it is already explained somewhere.
Reply
It is always necessary to answer all the questions honestly and provide all the inIormation. Let the insurance co. decide whether
the inIormation is relevant or not. II you do not. then the purpose oI insurance may be deIeated totally. Your agent may advise you
otherwise but remember. it is not the agent who is going to pay the claim amount and neither can he overrule the underwriter or
the claim settler.
II it true that you smoke occasionally or drink on rare social occasions the policy may not be loaded. I got a whole liIe policy. at
an gae oI 51. w/o any loading. with an option to increase the cover. iI I wished. (oI course to a certain extent) even aIter declaring
the above Iacts.
It is common knowledge that smoking ( and even passive smoking) is iniurious to health. so is excessive drinking. thereIore the
probability oI risk increases and that is why it is a relevant question. You may be aware that most oI the insurance companies are
oIIering preIerred policies Ior non smokers.
Reply
254 Jig January 4. 2011 at 12:24 am
HELLO MANISH
Good News in Insurance sector.
see the video. http://www.moneycontrol.com/video/special-videos/insurers-will-now-redress-investor-complaints2-weeks474495.html
Now company has to redress the customer complaint in two weeks. STRAIGHT TWO WEEKS.
JIG
Reply
Jig
Seems like this rule is there around Irom some time . not sure how much companies are obeying this rule
Manish
Reply
256 pravin January 5. 2011 at 5:20 pm
Manish.
Thanks Ior the inIo!
Whats is the policy oI insurance companies towards already disabled person? Do all companies increase the premium in such cases?
Thanks in Advance!
Reply
Pravin
There is a very high probability that a disabled person is not earning and no one is Iinancially dependent on him/her .So there is no
'Insurable Interest in those cases . Hence they are not liable to take insurance .
Manish
Reply
258 Peenuts January 5. 2011 at 6:39 pm
Excellent article. However can u also mention the sum assured Ior which u hav calculated the premium?
Reply
You can see iust below the chart
Its 50 lacs Ior 30 yrs old male Ior next 25 yrs duration .
manish
Reply
Hello Dhaval.
i am doing copy paste oI reply Irom KOTAK.. i havent any prob with this reply but it sounds strange so iust needed your two words on
this.
'Sir currently we would not be able to provide you the medical documents as you have cancelled the policy with us .( THIS I CAN
UNDERSTAND)
Sir currently you would not be able to avail either the e- term plan or the normal term plan through us. due to the cancellation ( HOW IT
SOUNDS LIKE?).
regards
Jignesh
Reply
261 Dhawal Sharma January 6. 2011 at 11:59 am
( Jigs Same thing has happened to Iew oI my clients as well so i would answer your questions in two parts..
A) One oI my client has got ELEVATED NICOTINE LEVEL and ELEVATED LIVER ENZYMES in his medical tests and the
company applied loading to his premium. i.e. his premium was increased Irom 17.154 to 23.777..The client did not gave his
consent as he thinks he was Iully Iit..He wanted to see his medical reports Irom company`s medical tests labs..So what we did
was submittted a written request. duly signed by him and deposited at our Kotak Janakpuri Branch that client wants to see his
medical reports..Reports were subsequently provided to him |although it took almost a month |..Now the process is that
company waits Ior client`s consent Ior certain speciIic period and till that time. policy is considered alive. not cancelled..Till the
policy is not cancelled. client can ask Ior the reports..But as in your case. you have cancelled the policy and so you are not in a
position to ask Ior reports which are legally the property oI Kotak..
B) The thumb rule is that iI certain policy is reiected by the company or cancelled by the client. he/she will not be allowed to apply
Ior next 6 months..and aIter 6 months. that person can apply aIresh and a new medical will be done and iI at that time. condition
oI the applicant is Iit. company can issue the policy..Reason i can understand behind this logic is company does not want to look
STUPID in this case. that we have reiected the policy today Ior any x.y.z reason and iust within a day or two. we are issuing the
policy Ior same person without waiting Ior suIIicient period oI time to get that reason ratiIied..So its not like you can never apply
Ior the policy Irom the same company Iorever..Its iust that you have to wait Ior 6 months to get a new policy Irom the same
company..
Hope it will clear your doubts
Reply
Yep it sounds ok.
There are some company oIIering plan without medical upto certain amount oI SA. Now suppose i took one Irom one
company oI SA 20 lac without medical . and same can be get Irom other one? iI they have plan oI nonmedical and i have
already one oI the same kind . what will be there reaction while processing proposal?
thanks dhaval Ior clariIying in details. Actually expecting the same kind oI reply Irom the KOTAK NRI HELPDESK
PERSON but surprised with their reply which i had mentioned in above comments.
thanks once again.
Regards
Jig
Reply
263 Dr Firoz January 7. 2011 at 4:20 pm
hi Manish. Thanks again Ior the excellent article..
I am going to narrate a Iunny but clearly UNETHICAL incident that happened to me a Iew hours ago.
i had gone to a reputed bank Ior investing in a Fixed Deposit. there the customer relation oIIicer told me about a new` product oIIering
15 return. when i enquired they presented it as a new mutual Iund like scheme with guarenteed NAV etc. these terms as well as the
mention oI 80c tax beneIit set alarm bells ringing in my brain. i asked them whether it was an insurance plan. only then did they sheepishly
acknowledge that it was ULIP. by that time around 15 mins had passed.
so in those 15 mins they never ever uttered the terms insurance`. ULIP` or like that.
Jagoinvestor had made me ready Ior the trap. but i am sure many others will Iall Ior it.
so my question is Is it not unethical?
and what can be done to prevent it?
Reply
Dr. Firoz
Yes I would call this unethical as they are misleading people with wrong claims and not giving right inIormation . However the
solution Ior this is that one should make them selves aware about investments and related things .
Manish
Reply
265 Sohil January 8. 2011 at 12:14 am
Manish i wanted to ask suppose i start a policy oI say 20 lakh.ANd later say aIter 5 years i want to upgrade the same policy to 50 lakh
is it possible?
Reply
Sohil
Not always . very Iew policies allow that . have a look at the chart in the article. Also there are some policies which have
increasing premium policies but that has to be decided at the time oI taking the policy itselI
Manish
Reply
267 Anui January 9. 2011 at 8:49 pm
Hi Manish.
I am 41 aged. My Iinancial planner asking me Ior go Ior Aviva`s LiIeShieldPlus or LiIeShieldAdvantage. What should I do? Which term
plan is good Ior me that return my money with interest iI I don`t die aIter plan completion.
Thanks.
Anui
Reply
Anui
Dont get in the trap oI 'getting money back incase I dont die . You get money back only because you pay more right now . So
its the same thing that you buy pure term plan and invest some additional amount in some product .
Manish
Reply
269 Gaurav January 10. 2011 at 4:18 pm
Hi Manish.
I am a 25 year old. only son with no Iamily liabilties as such apart Irom a education loan which in itselI is covered by a term plan. I am
planning to take a term insurance oI around 1 crore(as per the Iormulae 10 times oI your yearly income). I had shortlisted LIC Amulaya
Jeevan but the premium Ior 30 years is coming out to be 27000 approx/- Now aIter reading your article i am a bit conIused as to should
I go Ior this or should i take two diIIerent 50lacs cover. one with LIC now and other oI a private player(say Kotak) 3-4 years later when
probably i will be planning to start a Iamily? Please guide as i am starting my career and want to build my assets and hence is reluctant to
pay so much premium annually.
Reply
Gaurav
Yes . you should be reluctant at the moment as I assume there is not much people dependent on you Iinancially ? For whom are
you taking this term insurance. Who will be Iinancial aIIected iI a truck runs over you tomm ? II its no one . then no need to take
any insurance at the moment . Once you are married . you can think at the same time .
Splitting your cover in LIC 1 pvt insurer like kotak or ICICI will be a good option
Manish
Reply
271 Gaurav January 10. 2011 at 7:31 pm
Thanks Manish.
Currently. i plan to take insurance Ior my parents who arent dependent on me as such but being the only son. they are
somewhat relying on me.
So. as per your thinking. shall i hold my plans to take insurance or shall i split it into a smaller amount and buy later when i
do have a dependent Iamily?
Reply
Gaurav
II you Ieel that they should get some money incase you die . then its a good reason to take insurance . So go ahead
and take some . and add more later when you are married
Manish
Reply
273 Abhiiit January 10. 2011 at 10:06 pm
Hi Manish
Want to share my experience with Kotak.
Recently I had applied Ior kotak preIerred term plan Ior a SA oI Rs 50 Lacs Ior 30 yrs.(I m 34 yrs old)AIter the medical tests were
carried out I received a letter Irom kotak inIorming that my premium will be increased due to elevated sugar level.I immediately
checked my sugar level and my doctor inIormed that its well within limits.Hence.I made repeated communications & complaint with
kotak asking them the reason and their criteria Ior 75 increase in premium.But I did not get any answers regarding their criteria neither
did they share the medical reports.
I was really disappointed with this and hence decided not to go ahead with this policy.
Now I wonder which is my best option Ior term plan
What are your thoughts..Manish?
Reply
Abhiiit
I am not also not sure why this happens . Why your doctor says that there is no issues and companies doctors say that there is .
May be Dhawal can shed some light on . Let me bring him to answer this
Manish
Reply
275 Dhawal Sharma January 11. 2011 at 10:24 am
(ABHIJIT/MANISH This process is known as LOADING..It means when company Iinds some medical complication
or certain medical readings oI the applicant above the requisite levels. company can make the counter oIIer. by increasing
the premium..As in your case. as it was Iound out to be ELEVATED BLOOD SUGAR. company does want to take up
the risk BUT at slightly higher rate which they made oIIer to you by putting LOADING in Iorm oI premium increase by
50 or whatever..
Now coming back to what could have happened (This is all hypothetical. as Iar as i can make out).You got your blood
sugar level done on 10th DEC on Iasting basis (empty stomach) or something like that..that day in the morning. you might
have iogged to the medical center or had some sweets or pastries the night beIore and subsequently it showed
ELEVATED BLOOD SUGAR..Now you got this communication on 28th oI DEC and you went to your doctor on 2nd
JAN and by that time your ELEVATED BLOOD SUGAR level has settled to the normal levels. and hence this
discrepency..
and yes. why is it that tests done by the company at their aIIiliated lab or by their undersigned doctor might be wrong and
not by your own local doctor???
Medical reports are basically the company`s property (MEDICO-LEGAL) document and its at the company`s discretion
to share those documents with the applicant..Generally they dont share these reports with the applicant but iI you hand over
a written request through your agent to the concerned branch. this might materialize..I have done this Ior my client but this
does take some time..
Reply
276 kumar January 11. 2011 at 11:09 am
OI course nothing could be wrong with the medical test done Ior Kotak by a third party. The mistake is with eating
habits oI the client! What else can be the reason!
All speculation is bad. Speculation about medical conditions by a non-medical proIessional is rubbish.
A simple internet search will tell you that sugar gets processed in the
body in 4-5 hours.
But lets not worry about that. The Iault is only with ABHIJIT.
Even speculation oI any other possibility is impossible.
75 increase in premium while being the insurers prerogative seems high. I know oI a loading oI 15 Ior Blood
pressure by LIC
Ior my Iriend.
I have no issues with 75 but arm chair speculation is unacceptable.
The Iault could be been ABHIJIT`s. It could also be Irom the side oI the lab assigned by Kotak or the lab ABHIJIT
went.
Common sense suggests that its best not to comment on things without data/inIo.
Reply
( Abhiiit / manish. Mr Dhawal Sharma has given a very detailed reply. I would like to add one more point. The insurance co
medical underwriters not only look at the diagnosis ( medical test results) but also at the prognosis ( prediction). They look at the
age / the nature oI work / the physical attributes / Iamily history etc and do the prognosis. It is one underwriters perception based
on their companies set rules etc. It is not necessary that underwriter oI some other co may arrive at the same conclusion. You
believe in your Iamily doctor and iI he says nothing is wrong be happy and approach some other insurance company.
In case oI some Ins companies. iI the policy is reiected or deIerred or loaded and iI you request them Ior the medical details and
inIorm them the contact details oI your doctor. they will explain their views to your doctor.
Since they have paid Ior the medical test. you cannot insist on them to give you the medical report. You can go the same
diagnostic center. pay the Iees and get the reports Ior a Iresh test.
Reply
278 Sampath January 11. 2011 at 3:47 pm
Hi Manish
I am 24 years old. i was planning to take Aegon Religare earlier but looking at the Settlement ratio. i lost interest in it. Can i go Ior Kotak
preIerred Or ICICI or any other (30L)? Next year am planning to take LIC. Please advice..
Also my mother has diabetes since 10 years. and last year my Iather passed away because oI poor health (High alcohol usage). Do you
think this will increases my premium? What kind oI cautions i should take while Iilling up Iorms?
Thanks
Reply
Sampath
You can go Ior Kotak or ICICI .
The only precauation you should take while Iilling up the Iorm is to mention everything correctly . dont hide anything . thats all
Manish
Reply
280 Balaii January 11. 2011 at 3:47 pm
Hi Manish.
Great article. I ( 32 yrs ) have planned to take a term plan. I am diabetic and my Iamily has history oI Cancer. What will be the
approximate premium Ior me Ior policy term oI 28 yrs ? Which insurance should I go Ior?
Regards
Balaii
Reply
Balaii
It would depend on the company you are choosing out oI . You can expect an increase oI 50-60
Manish
Reply
(sunil date
i like your inIormation . but not reasoning:Since they have paid Ior the medical test. you cannot insist on them to give you the medical
report. You can go the same diagnostic center. pay the Iees and get the reports Ior a Iresh test.
i argue. it is my body. and irrespective oI whosoever paid. it is my right to know the tests` results. Iurther iI i accept it with load. who is
paying aIter all?i i had bitter experience Irom hdIc standard in 2002 0r so. when i took the term insurance . they raise my premium by
20-25 without inIorming me about the inIormation about the tests . even aIter buying it with load. i requested them to Iurnish the results.
so i could try to improve. but they did not reply.
Reply
283 Abhiiit January 11. 2011 at 6:10 pm
(Dhawal I agree that there could be diIIerence in the results bcoz the sugar levels are tested aIter a time gap. To exactly know
the details I had requested the reports through my agent.And iI it is the company policy not to share the reports then this was
going to be the same report which the insurance company promised to give alongwith the policy document once policy is
registered!
(Kumar/Sunil I am not speculating regarding medical tests conducted by the lab or my doctor .the As a customer I only
wanted to know the reason Ior 75 increase in premium.
Reply
(Bharat Shah. I still maintain that no body has stopped you Irom going to the same diagnostic center and getting the same
medical tests done aIter paying the Iees.
The prognosis process is proprietary inIormation and the insurance company will not be ready to share it. They may share the
same orally with your doctor.
Insurance is a matter oI solicitation; it is not covered under the MRTP act. It is their privilage to accept a proposal or reiect it
WITHOUT giving any reason. II you do not agree with the increased premium you are Iree to decline their counter oIIer.
Reply
(Bharat Shah : When the company gives a counter oIIer loading the premium they do inIorm the basic reason Ior the
same.
Reply
(sunil date
thank you again Ior good inIormation that it is not covered under the MRTP etc.! it is not that i had taken the insurance.
though i did not want. i am only representing the insured`s views. the laws and rules are changing. sometimes on public
opinions. i consider such blogs to air the views on insured/investor side. it is the Iacts about my case in yr.2002.
Reply
287 Balaii January 11. 2011 at 3:53 pm
Hi Manish.
I ( 32 yrs old ) have planned to go Ior term plan ( SA 50 lakhs ). I am diabetic and my Iamily have history oI cancer. What will be the
approximate premium Ior policy term oI 28 yrs? Which insurance should I go Ior ?
Regards
Balaii
Reply
Balaii
Go Ior any Insurance you trust and your premiums will be increased . you can expect upto 100 more premium . but get
conIirmation Irom the company on this .
Manish
Reply
289 Amit January 11. 2011 at 6:51 pm
Hi Manish.
Thanks Ior the very nice article. hope people will understand the importance oI the term insurance.
Please let me know iI I split the Term insurance between LIC (20) and Private (80). During the claim time iI LIC paid the amount
and private company reiect Ior any reason. Can my Iamily drag private company to the court on the basis oI LIC payment.
Reply
Amit
I dont think so . The Iorm you have Iilled Ior two companies are diIIerent and it might happen that you gave all right inIo to one
company . but wrong inIo to others because oI which your premium was normal with Iirst . but unnormal with other one . So its
not the case that you can drag one company iust because other company has paid (Its not about LIC vs pvt)
its about company vs company . It might happen that pvt pays you and LIC does not pay
Manish
Reply
291 Raghu N January 12. 2011 at 1:04 am
Manish.
Excellent read. Felt like heaven. The three types oI investors mentioned in your article '3 type oI Investors. which one are you?. i Iall in
the Iirst category making an eIIort to move to the third category. AIter searching Ior guidance Ior a term Policy. i`m sure i Iound my
answer in your article. I request your views on the Iollowing thought oI mine...
II a private insurer goes bust/bankrupt. what could be the Iate oI people to whom it has sold insurance?
Regds.
Raghu
Reply
Raghu
Thanks Ior your comment. glad to hear that you got the Iinal answer on my blog
the chances Ior any insurance company going bust is almost nil . as our IRDA makes sure that they maintain solvency ratio which
is good enough to pay oII every coverholder . Also incase one goes bankrupt . it would deIinately be taken over by some other
company ..
These are the thoughts well considering . but make sure that these do not stop you Irom taking ACTIION
Manish
Reply
1.regarding selection oI online or oIIline Irom a particular company. i think. more important point is the riders. particularly . ci and
permanent disability due to accident . are not available through any online term insurance. so your choice Ior rider preIerence would be
oIIline only.
2. submission oI same correct inIormation to any insurance company. i was inIormed that the insurance compny . in my case . kotak liIe.
would give the copy oI our application alongwith the policy document on Iinalisation oI the pocedure.
Reply
294 sunil gavaskar January 13. 2011 at 3:37 pm
(Manish
An useIul reply by one oI our Iriend to my query on
was removed. Could you please post again in respective Iorum or iust send me the content to sunilg78(yahoo.com
Thanks
Sunil
Reply
295 Gurmeet January 13. 2011 at 4:28 pm
Mansih
Thanks Io this wonderIul article
However. I have question..
I am a housewiIe and has no source oI income and I want to take a term insurnace plan. But I guess the insurance companies looks Ior
the source oI income to calcualte the required sum insured to ensure that whether the person is over insured or not.iI this is true then I
can not take term plan?
can I take term policy and my husband can pay the yeraly premium?
What do you say?
Gurmeet
Reply
Gurmeet
there has to be a 'Insurable Interest Ior some one to get insured . What insurable interest does your husband have on you ? He
will not be Iinancially impacted incase you are not there tomm .. I am not sure saying that you can not get any insurance. but it
might happen in worst case that company reiects to insure you !
Also why you want to take insurance ?
to answer your question . you can take insurance and you can pay the premium (indirectly your husband) . note that he wont get
any tax exemption Ior this
Manish
Reply
297 dr kishan March 9. 2011 at 12:04 am
dear manish
this was avery inIormative article to read modiIying many peoples` concepts.
in the above matter i wish to correct that the premium paid Ior insurance oI spouse and children is also allowable under
section 80c at present (although it may change with DTC).
keep enlightening.
tum andhere mein asha ki kiran ki tarah ho
dr kishan
Reply
Dr Kishan
Ahh thanks . I made that mistake it seems
Manish
Reply
i read one mail Ior preIering sbi term insurance v/s kotak liIe Ior considering sbi could give rider oI a/m upto sa v/s limited to 10 lacs Irom
kotak. i like to bring to notice that ci rider is given initially Ior 5 yrs. in case oI sbi (subsequently it could be Ior more period with changed
premium). v/s Ior whole period in case oI kotak liIe.
Reply
Bharat
OK . this was some thing nice inIo to know ! . How do you know this ? Does it mean the premiums might get revised aIter 5 yrs ?
Manish
Reply
301 bharat shah February 12. 2011 at 1:17 pm
(manish
i knew Irom the inIormation document Irom their site. it clearly indicated that the premium Ior ci rider would change.
one request : can you make possible to go to bottom Irom top and vice versa Ior any page? it will save lot oI time Ior
regularly visiting members Ior Iurther comments .iI any.
Reply
302 Rohit January 13. 2011 at 4:51 pm
Hi.
Want to understand a situation. I am 34 years. male. 94 kgs and Ior the Iirst time diagnosed with type 2 diabetes. The tests done last
year were well within limits. All other test as part oI executive check up are normal and well within limits including tmt test. I am a non
smoker and have diabetes history Irom my maternal side though none oI my parents are diabetic.
What are the prospects oI me getting a term policy with all 4 riders Ior say a SA oI 50 lacs? What would be the loading that the
company would be doing as compared to a similar person who is non diabetic?
A reply would be highly appreciated.
Rohit
Reply
Rohit
I dont think it should be a big issue to get a term plan . The only thing is that your loading will be higher . may be upto 50-100
depending on the severity and the company .
So the only way to Iind out is to actually apply Ior the company . Better go Ior the oIIline plan Iirst and get the quote Irom the liIe
insurance company
Manish
Reply
304 Vinu January 15. 2011 at 7:19 am
Private LiIe Insurers are there only Ior the past 10 years.
Atleast 50 oI the death claims they receive would deIinitely be 'Early Claims to the company.
Probing into an 'Early Claim in all aspects in iustiIied.
Obviously when there are any hick ups in the Proposal Iorm signed by the Client. the LiIe Insurer has the rights to reiect the Claim
Are we right in comparing companies based on the Claim settlement ratio??
Do you think LIC has the same Claim settlement ratio (i.e 96.54) to all its 'Early Claims?
Reply
Vinu
Thats a great point . But iI thats the case . what you are saying is that its not iuistiIied to compare claim ratio oI LIC and pvt as its
diIIerent
Manish
Reply
(Vinu (Manish.
What I had read somewhere is that 'Early claims are those which are made immediately aIter start oI the policy say within/beIore
5 years. This obviously iustiIies veriIication irrespective oI the company private/LIC.
I think its right and worthwhile comparing based on claim settlement ratio as thats the Iinal goal oI all this exercise oI getting the
insurance. More so this becomes important due to the Iact that new private are new into the market. Companies have to make
business the more they reiect the more money they make and more happy are the investors. Though IRDA does have rules and
regulations there are always small iIs and else that companies can put into their policies which could help them make valid
reiections. For e.g. in one oI the policies I saw this ridiculous statement Ior accidental beneIit iI traveling as a Iare paying passenger
on plane. The Ilight has to be on scheduled time and route. What does it mean iI Ilights are operating say on late schedules Ior
some reason the claimer won`t get his claim. Thats like a good escape window to pay the claim.
Reply
Just to be clear on my point.Early claims are related to the start oI the policy. By start oI the policy I meant start oI the
individuals policy(aIter taking it Irom the company) and nothing to do with when the policy was incorporated as a product
by the company Ior everyone.
Reply
Hi Manish.
Excellent Iorum and excellent insight Irom you in all the articles. Jagoinvestor is deIinitely helping people to increase awareness kudos to
your work! I have deIinitely learnt a lot here in last 3-4 days.
I am being pushed to get term plan by one oI my knowns (ICICI agent) Ior ICICI pure Protect. I am not really motivated to take any
kind oI insurance as I am 32 with no liabilities/mortgage or dependents etc. However. the agent says that now you are young so u should
get in now later it will be costly. Lets say iI I buy aIter 5 years with 25years coverage vs now Ior 30 years I do see 17-20 diIIerence in
premium with LIC Amulya plan(which I will have to pay Ior rest oI the term irrespective oI when I start) so I am kind oI convinced that I
need to take now. In Iuture liabilities are deIinitely going to increase and so is dependents (most probably I will get married )
I am also convinced that I need to split it with two companies. So right now I am looking Ior 50Lacs cover. I am going to take second
50L later may be aIter 5 years when my liabilities really increase. Also. I have narrowed down to LIC and one private(most likely
ICICI). However I am in doubt which one should I take now LIC or ICICI(say iProtect) here are two line oI thoughts.
1) Take LIC now as premiums will be higher later better to get in later. Also as time passes the clam settlement numbers will be more
evident Ior private players and perhaps we can go Ior it later when the need be.
2) Since there is no liabilities/dependents now whats the point taking some high cost policy (LIC). Better iust take iProtect at dirt cheap
price (may be with adviser) and be happy. As the competition in market increases with time even LIC will bring down price and perhaps
may be will have online term insurance later so take it then ?
What do you think will be a good path right now?
PS: One thing I hate about iProtect is there is no disability/critical illness Iee waiver. Perhaps I should take PureProtect instead or may be
Kotak which has everything but then my agent is going to be angry. Will be diIIicult to paciIy him.
Thanks again Ior your great insights.
Best Wishes!!
Reply
Tarun
The Iact that you will pay more premium later is true but not always a bad thing . because you will NOT PAY Ior some initial
years . So iI what you save in Iirst Iew years can make up Ior next many years . its ok .
Imagine paying 10k Ior 30 yrs or waiting Ior 5 yrs and then paying 13k Ior 25 yrs . you will pay 3k extra Ior 25 yrs which is 75k .
but you have also saved 50k in 5 yrs which makes the situation same !
Manish
Reply
Thanks! Any suggestion on which option should be better 1) or 2) ?
Reply
Option A will be better assuming you put those premiums in some other product which will grow . Ior example debt
oriented Iunds
Manish
Reply
312 Sudha January 17. 2011 at 2:21 pm
Came across this site in my net wanderings Ior Iinancial inIo and am so glad to have Iound it. Excellent articles they have really iago-
ed` me in terms oI depth oI inIo. Thanks!
Had a query. I have a money-back guarantee term insurance plan Irom LIC. During the plan term. I have received some monies back as
bonus. Is this money-back option better/worse/not really beneIicial than the above term insurance plans? At the time I took it. LIC was
the trusted one around. My plan will expire soon. so I would appreciate advice to make a choice as to renew the money-back plan or
opt Ior something like a kotak preIerred.
Reply
Sudha
As your policy is close to maturity . you better continue it now .
Its all about how much return your policy has generated Ior you . II you look at endowment/money back plans . they give around
5-6 return at the end !
Manish
Reply
Thanks a lot. Manish. Intend to keep the plan to maturity.
I never thought oI returns as one oI the yardsticks to choose a plan. Never thought oI insurance that way. The return you
have mentioned re: the endowment plan is good or ?? Or. aIter maturity oI my current plan. would one oI the plans you
have mentioned would be a better choice in terms oI cover. returns?? Do excuse iI these seem like dumb questions. but am
iust learning and would really appreciate any inIo on this whole returns matter.
Reply
Sudha
Yea .. those are not great returns considering you have alot oI time in your hand and you can make better return .
remember that inIlation is also there so iI inIlation in 8 and your retunrs are 7 . you are at 1 loss only .
For more on these things read
http://www.iagoinvestor.com/2008/06/evaluating-returns-which-return-is.html
http://www.iagoinvestor.com/2009/05/video-post-on-basic-Iormula.html
Manish
Reply
Thanks. Manish. Ior the advice & insights. Will check out the links.
Reply
Sudha
Thanks ..
Reply
318 Rai January 17. 2011 at 5:21 pm
Hi Manish.
I am 29 years old. I have taken one term insurance one year ago Ior 15 years term and 10 lacs cover Irom LIC. I paid this with single
payment.
Now i want to again buy one more term insurance with long duration.
can you suggest which one i should buy.
I want to buy companies which are 100 indian owned like LIC. SBI. I know only two. do you know any one which are 100 indian
owned and less premium with good claim settlement.
Reply
319 pprairu January 18. 2011 at 9:30 am
i dont think that any other insurance company is 100 Bhartiya (Indian). almost all oI them are like 76 Bhartiya. 26 Ioreign
including SBILiIe
Reply
320 Dhawal Sharma January 18. 2011 at 8:58 pm
(Rai Sorry to disappoint you but SBI LIFE is a ioint venture between SBI and BNP PARIBAS on 76:24 basis. as like
any other insurance company in the market..II you are looking Ior 100 Indian owned company other than LIC. you can
consider RELIANCE LIFE INSURANCE..
Reply
Rai
I think you should take your concentration Irom 100 owned to a consistent perIormer . See Dhawal comment
Manish
Reply
322 Aiay January 19. 2011 at 11:16 am
Hi Manish.
nice comparison! however. one thing to keep in mind is that (based on my reading oI IRDA`s report & talking to the Aegon Religare
person on phone) the claim settlement ratios are Ior overall policies not broken down by type (e.g. iTerm / pure term etc); hence.
diIIicult to iudge speciIically Ior term plans which could be diIIerent (since premiums are low).
Secondly. what I`m also hearing is that even iI I wanted LIC term plans. apparently. LIC reiects application itselI iI the applicant`s
medical tests show up higher cholestrol etc in other words. instead oI adiusting the risk premium a bit upwards. they simply reiect it
and hence can aIIord to show the higher settlement ratio. Am not sure how accurate this is but I got this inIo Irom a Iriend who
approached an LIC agent who is his Iriend and this is 'inside inIo in some sense. Have you or anybody else had such experiences with
LIC (or any others like Kotak preIerred)?
Reply
Aiay
What you have said is exactly what I also Ieel and have got inIo Irom sources in last many years .. No doubt LIC claim settlement
might be better than others. but its still exaggerated and 'careIully prepared and not very well understood
Manish
Reply
324 pattu January 19. 2011 at 2:06 pm
I got Amulya Jeevan a year back. No lipid proIile was done. So they cant know whether I have cholesterol or not. I was
overweight and have BP. So my premium was loaded by 15.6
Reiect a policy is underwriters discretion. It seems like a intelligent move to me Irom the companies point oI view. II this inside
gyan is correct (I dont trust that in the Iirst place) I surprised that LIC actually think this much ahead!
Reply
Pattu
Why did you think that LIC cant think this much ahead . They have been the Iirst in this area and they would be having the
best processes I am sure .
Manish
Reply
326 Basavarai January 19. 2011 at 8:57 pm
Aiay.
I want to tell one general thing. II either LIC or any other private insurer reiected your proposal then they have to give valid reason
Ior reiection. II proposer not satisIied with the reason then he may go to regulators as they can`t bias considering their proIit
gaining or mantaining their Claim Settlement ratio. So to me this point looks not valid. Every insurer has to work under the
regulators. They cant work on their own wish.
Reply
327 Madhukara January 19. 2011 at 5:35 pm
Even though the comparison is good. but many oI the premiums when I tried to validate are not accurate. you need to validate the
premiums. Also you need to mention your age while calculating the premium.
Reply
Madhukara
Yes . I used online comparision sites Ior the comparison and they had stale data . The data is Ior 30 yr old person with 25 yr oI
tenure . Its written in the chart downside
Manish
Reply
329 Pradeep January 19. 2011 at 5:39 pm
Hi Manish.
I wan to buy Health Insurance Ior my parents. both are at 60. my dad is having High Blood Pressure. Diabetes and moms health is in
good condition.
Can you please suggest best Medical insurance plan. So that they can get best possible treatment in case oI emergency. covering all
critical illness. Even iI Premium is high. no problem. please suggest best one.
Regards
Pradeep
Reply
Pradeep
The best place to ask this is Iorum : http://www.iagoinvestor.com/Iorum/
Manish
Reply
331 ShanmugaNandan January 19. 2011 at 8:52 pm
First oI all. I would say 'Thanks a ton to the author Ior this article.
i have been searching Ior inIo on term insurance. no where i could get such a comprehensive one..Thank you.
I have a query.
I am 30 years old applied Ior 1 crore term Irom LIC (Jeevan Amulya). premium paid & underwent medical test iust yesterday and yet to
get policy.
aIter reading this Iorum. I am seriously thinking oI reducing the SA to 50 or 75 lakh & go Ior ICICI iProtect Ior another 50lakh which
actually charges 1/3rd the premium amount Irom LIC.
what do you suggest ?
Also anybody knows iI LIC can reduce the SA and reIund the diIIerence premieum?
also read in the Iorum that LIC planning to revise the premium rates. hope it will be applicable to old policy holders also.
Reply
ShanmugaNandan
Thanks Ior your appreciation . It Ielt great to hear that your last search on term plans was this article .
Regarding your policy with LIC. as you iust now applied the policy and you still have to get it in your hand . you have a solution to
your problem . Whenever you get the policy in your hand . Irom that day . you will have 15 days in your hand to return the policy
and those 15 days are called 'Free look up policy . You should return the policy and only medical costs will be deducted Irom it
and rest will be reIunded to you .
There aIter you can apply Ior ICICI or Kotak or any PVT insurer Ior 50 lacs and rest Irom LIC . Note that it might happen that
you will have to apply in LIC only aIter 6 months oI cancelling the policy .
Overall . you will pay around 60-65 oI the original premium which you would pay iI you had gone only with LIC . so there will
be some savings Ior you . Apart Irom that you will have Ilexibility oI closing one term plan later incase you want to reduce your
Insurance costs .
II company revises the old rates . it does not go to old clients .old clients have to close their policies and take new again .
Manish
Reply
I am planning to buy 50 Lakh term insurance as ICICI prudential is less prmium but you said its settlement ratio is not as good . In ICIC
premium is approx 8.5 K Ior my age 33 (retrierment Age 60). I donot abt LIC premium but it will be deIinatly Hogh . Can you Pls tell
iI i atke online than there will no issue Ior claim settlement . so should i go ahead or not with ICICI.
Reply
Amit
II you Iill all the data correctly there should not be any issue with claim settlement . Why dont you break your cover into two ?
Manish
Reply
Dear Manish.
Thank you very much Ior a very quick response.
You mean break in to two means one in LIC 30 Lac & other in ICICI 30 Lac . Also let me know hwat do u mean all data
connreclty Iill . whatever its their we will Iill up that column. what are the data come under that.
Thanks & Regards.
Amit
Reply
336 Vats January 21. 2011 at 6:43 pm
Manish.
Post is Very well articulated. I would want to know one thing. What`s your view on buying Term Plan by paying a single Insurance
premium than paying annually. Can you please provide some numbers related to the same? Or do you Ieel it will be a burden Ior the the
person taking insurance to pay such heIty sum one shot.
Reply
Vats
Not always . You can deIinately pay single premium iI thats what you want . the only thing is why to pay so much in one go even iI
you have it ! . Cant you put 'Single Premium worth oI money somewhere and generate 'Annual-Premium out oI it ? II YES .
then iust pay annual premium ! . II your concern is 'what iI I Iorget paying the premium and it lapses . then its a diIIerent thing .
Do some maths yourselI and come up with a conclusion and share with us
Manish
Reply
Also. lets say Ior a 50Lacs you have to pay single premium oI 5L and lets say something happens to you in 2nd/3rd year.
Then essentially you got only 45Lacs back. There seem to be not much value in paying single premium. II you are worried
about paying premium better put the amount one side into a savings account and setup an electronic transIer with the
company. You are happy and so is the company
Reply
Tarun
Check the numbers Ior one time premium and yearly premium and see iI you can generate that yearly premium with
single premium or not
Manish
Reply
340 ashish January 23. 2011 at 2:09 pm
hi.
May be a silly question to ask but do you know oI someone whose claim was genuine but still was reiected. challenged beIore the
regulator and still reIuted.
Reply
Ashish
I dont know any one like that personally
Manish
Reply
342 Arun Kumar Sharma January 25. 2011 at 12:34 pm
Dear Manish
Bravo !!! Well done !!!
Thanks very much Ior this nice article ! Your this article has timely helped me in making my mind.
Now. i am going Ior LIC Amulaya Jeevan (25 lacs) & Kotak PreIIered term plan (25 lacs) with additional disability rider (10 lacs) &
Critical illness (4 lacs).
Thanks Buddy & keep posting these inIormative article !!!!!!!!!!!!!!!11
I Ieel good that at such a young age. you advise is like a CFA.
Thanks a lot again !!!!!!!1
Reply
Arun
Thanks . I am glad it helped you in taking decision . btw . do you know any CFA who advises well in personal Iinance. I think
you wanted to say CFP !
manish
Reply
344 Arun Kumar Sharma January 29. 2011 at 5:19 pm
Yes Manish ... I wanted to say CFP (CertiIied Financial Planner). not CFA .. thanks Ior pointing &
correcting....
Manish. also i want to congratulate & wish you all the best in your liIe/career.
Your reply to each & every query is highly appreciable. In iust 2 years.. you were able to get so much oI crowd.
Keep it up buddy. i`ll be looking Iorward Ior your new articles.
Reply
Arun
Thanks Arun:)
Manish
Reply
346 nairobi January 27. 2011 at 6:45 pm
Thanks! very useIul inIormation!
Reply
347 Sachin January 29. 2011 at 6:01 pm
Hi Manish
I want to take a term plan shortly and mostly I will go Ior LIC Amulya Jeevan through single premium option. However. what are the
implications iI I take up iob outside years in next Iew years? The iob overseas may be Ior a period oI 6 to 8 years and aIter that I plan to
return to india. Will my policy continue to be in Iorce iI I intimate LIC oI the change in Job / Residence status? II the policy is to be
closed. what happens to the premium paid and should I go in Ior single premium (in the likelihood oI overseas iob) or should I go Ior
yearly premium? Any other implications?
Reply
Sachin
there should be no issues actulaly .... you should go Ior yearly premium only. as you can always pay LIC premium online
Manish
Reply
349 Sunil January 30. 2011 at 12:27 pm
Following you people`s sincere advices on revealing every health inIormation..
http://www.iagoinvestor.com/2010/09/9-most-asked-questions-about-term-insurance.html
I decided to reveal. my gastro related issues and my back pain problem. etc
But when I was asked to scan my spine to diagonise my back pain problem.
Iound disc prolapse causing back pain
additionaly it`s Iound that there is a tumour in my spine which is causing nothing now. but may cause disability or unexpected thing in
Iuture.
Should I need to reveal that too? II so. will my policy be accepted ( by LIC ) ?
LIC having most claim settlement ratio. shall i ignore the last inIo? bcoz taking no term is better than this ingnoring one such inIo?
plz throw some light on these.
Reply
Sunil
I am not sure .. obviously stating it would mean increase in premium .. but you know it now as you have done the tests . what iI
you didnt do those tests . would company have come to about it ? thats my conIusion also .. ask it on Iorum :
http://www.iagoinvestor.com/Iorum/
Reply
351 Sunil January 30. 2011 at 12:48 pm
A small correction on my comment. 318
LIC having most claim settlement ratio. shall i ignore the last inIo? bcoz ignoring one such inIo is better than not taking term!!
plz throw some light on these.
Reply
352 sunil gavaskar January 30. 2011 at 8:54 pm
Points to consider while calculating SA .. ( Death beneIit value )
Most oI the employer has Group Term insurance Helps much to reduce required personal Term insurance SA
To include corpus as Irom Employee Provident Fund account while calculating the SA.. which will be one oI the maior contributor
The monthly expense will go to 40k in next 12-15yrs and corpus required Ior MIP should be considered careIully. ( say 60L in MIP )
Reply
353 viiay r d January 31. 2011 at 12:50 pm
hi manish.
I`ll be 31 yrs in iune 2011. I am married with 1 kid. My kid will be oI 1yr in iuly 2011. Our monthly income is 43k. Planning to buy
house worth 13lkhs with homeloan.
I read all your excellent articles about investments and insurance. But. i need your guidance Ior planning my insurance with above
inIormation and what way i should go Ior it.
Thanks&Regards.
Viiay Doiphode
Reply
Viiay
You should but the term plan . It would require some calculations . but you can always have a rough idea on how much money
would be enough to take care oI 'everything incase you are not around . Split it in two ..
What speciIic inIo you need ?
Manish
Reply
355 nilesh January 31. 2011 at 6:44 pm
sir.
a good anaylisation oI term plan.i have gone through your suggesstion & Iacts
which has really helped me to known about private players.i think you are rather
biased in suggesting kotak as best plan.to me how could we trust any company
Ior 25 to 30 years without any track like lic.sbi which existed Ior past 50-60
yrs.moreover kotak is managed by proprietorship type with no government
intervention in case oI any colaspe only irda to help it out.so according to
a layman trust Iactor could be applied Ior long term on lic & sbi.pl kindly
clear my misconception about it.
thanks.
Reply
nilesh
all insurance companies are governed by the same laws and rules which is insurance act and regulated by irda . i understand the
trust Iactor with lic as its the oldeat one . but others are also doing good . the reason Ior suggesting kotak is that its one oI the
cheapest . old and in-proIit companies in pvt insurance comoanies . same with sbi also
manish
Reply
357 Dhawal Sharma February 1. 2011 at 10:24 am
(NILESH Just to set the records straight. KOTAK LIFE is not even 25-30 years old as you have put it..PRIVATE
PLAYERs are in the INSURANCE SECTOR since 2000 only. so all insurance companies except LIC are 11 to 12 years
old at the most.
Secondly. KOTAK LIFE has a very good track record oI late..For last 3 consecutive years. its posting proIits (only 3 or 4
private companies are in the proIits)..Claim settlement oI KOTAK LIFE is in decent range oI 88 to 90..
KOTAK LIFE is a ioint venture between KOTAK MAHINDRA GROUP and OLD MUTUAL INSURANCE which is
150 year old company (Much-much older than LIC and has proven track record over such a long period and that too in
45 countries)..
Another point to add is that SBI LIFE is also in ioint venture with BNP PARIBAS INSURANCE oI FRANCE..So
according to your understanding. its also a PRIVATE COMPANY and it certainly does not have a track record oI 5o-60
years as you have put it.
Just to add lastly. iI your documents and inIormation is correct in the proposal Iorm then there is no Iorce in the world
which can deny the genuine claim. no matter Irom where you have taken your policy. be it LIC. KOTAK. or the newest
entrent INDIA FIRST.
Reply
358 Girish February 2. 2011 at 9:42 pm
Hi Manish.
Really nice write up Ior novice who cant read whole oI irda documents.
I m interested in buying Term plan Irom Kotak Ior 75 lacks Ior 30 years
Premium comes out to 8500 something.
My question is that my Iather is patient oI depression
and my mother is having high Blood pressure.
I was having problem oI nuphritus(kidney problem) when i was 5 years old and Irom last 12 years it is perIectly Iine.
My age is currently 23 years
Do I need to mention all these things while Iilling the Iorm.
And is it right to take term plan at such a less age?
Your response will be most awaited
Reply
I have replied you already about this on Iacebook
Manish
Reply
360 Hema February 3. 2011 at 4:25 pm
I was looking at inIormation on term policies and stumbled on your blog. Your blog is good with lot oI inIormation and I did like ur sense
iI humour in some oI the comments.
I looked at various sites oI insurance companies and have sound out these Iacts
1. Aegon Religare is the cheapest online insurance iI you consider pure term policy with no riders Ior a 34 yr old. term 25yrs (maximum).
annual premium is Rs.7776 Ior 50lakhs SA
2. ICICI I protect option 2 is one step ahead with accident rider but a bit costlier than Aegon Religare Ior a 34 yr old. term 25yrs.
annual premium is Rs.10423 Ior 50lakhs SA
3. Kotak PreIerred term plan is the next Ior a 34yr old. term 25 yrs annual premium is Rs.9210 with no riders.
ICICI I protect seems to be the cheapest iI you consider the additional cover on accident with a bit extra cost. Iam conIused whether to
take Aegon Religare or ICICI. No one has mentioned about Aegon .Iam not sure iI its ok to take it or take ICICI with a bit extra cost
which will give additional beneIit in case oI accident??
Hema
Reply
Hema
Did you check Kotek e-PreIIered plan which is thier online option . I am sure it might turn out to be cheapest . You can go Ior
ICICI .. but read others review about their customer service
Manish
Reply
362 dhawal sharma February 10. 2011 at 7:05 pm
(Manish Very interesting.Please check this out.
http://www.Iinwinonline.com/2010/05/how-much-time-it-takes-to-settle-liIe.html
Reply
Dhawal
This needs to be done again Ior the recent data ! . Looks good
Reply
364 chandranshu pandey February 11. 2011 at 4:49 pm
Dear all.
I read the blog and decided to go Ior ICICI i protect Ior 50 lakhs. paid premium on 10th Jan and policy got issued on 11th Feb. As oI
now on net it says policy in Iorce` and document to reach within 15 days. Very pathetic experience Ior last 1 month. it was beacuse oI
earlier commenst that it takes 30 to 45 days I held on to it. Hospitals tied up with pru-liIe were third grade. the person who wanted to
collect document had diIIrent application no. I had to go to branch to submit documents and press Ior issuing letter Ior medical check up.
Over all blog did help to get policy issued. Also aIter reading this blog I decided to take 50 lakhs each Irom ICICI and LIC. Now I will
try to take polict Ior LIC.
Chandranshu Pandey
Reply
Chandranshu
Sorry to hear your experience ! . Did you read all the comments beIore going Ior the policy ? I think there were enough number oI
people who had bad experience .
Manish
Reply
366 bharat shah February 12. 2011 at 1:31 pm
i read a post to praise lic Ior providing support by Iunding govt. eIIorts Ior upliIt the country on this blog. indeed it is. however one should
also recall that there was no oIIering oI pure term insurance in india beIore entry oI pvt. players in the Iield. and so needy could not aIIord
it. and perhaps most oI who were getting insured. really did not require it! premiums came out aIter pvt. players` entry is other story.
Reply
367 Prasad February 15. 2011 at 7:32 am
Here`s an update to my earlier comments.. On 8th Jan 2011. I applied Ior the ICICI iProtect II term plan that includes accidental death
beneIit too. Within a couple oI days. I received the email requesting me to undergo a medical check up. I was also asked to submit a Iew
documents to the collecting agent in my city. Did both within a week`s time (by 16th Jan). On 30th Jan. I made a call to the customer
care enquiring the status oI my application. I was told that the medical Iindings were already with them. but the documents hadn`t
reached them. The representative was well mannered and had the courtesy to apologize Ior the delay he also mentioned that they were
having problems in many places with regard to tie-ups Ior document collection. He also suggested me to scan the necessary documents
and email it to them. and the policy would be issued promptly (medicals were all Iine).
I sent the scanned docs on 3rd Feb via email. On 9th Feb. I received a message stating that the policy had been issued. On 10th Feb. I
could create a user id and password to login and manage my policy online. On 11th Feb. the policy documents were sent by Blue Dart
which I am yet to receive. HopeIully. I will get them within a couple oI days time. Overall. it was a pleasant and uneventIul experience. I
too was apprehensive aIter reading the reports oI bad customer service. but my apprehensions were proved wrong. I would deIinitely
recommend ICICI iProtect.
Reply
368 Tarun February 15. 2011 at 11:35 am
Prasad.
Could you tell which city you did this? My guess is metro city/Bangalore? Also. as you were considering Ior riders. I think this one
doesnt have waiver premium/critical illness/disability cover. Accidental death beneIit doesnt seem to be useIul eithere since when
the death occurs one is anyway entitled to get the SA. So getting extra money when death occurs speciIically due to accident as
such provides not much value. I would have liked instead iI they had disability/critical illnes/waiver premium.
Thinking in this manner I Ieel spending extra 30 premium Ior iust this is not worth taking this option.
http://www.icicipruliIe.com/public/LiIe-plans/iProtect/Ieatures-iProtect.htm
Manish/others have any view on this ??
Reply
Tarun
I look at this a bit diIIerent way .. accidetal rider gives you Ilexibility to take extra cover at minimal cost . so take 50 oI
what you want to take as base cover and taken 50 more addition as accidental rider . so u end up taking proper cover
Ior yourselI .. this you will get a cheap extra premium because oI rider . with very high probability some one dies by what ?
I think accident only !
Views ?
Manish
Reply
370 Prasoon February 15. 2011 at 4:40 pm
I`ve heard that insurance providers do their best to deny claim Ior accidental rider on basis oI silly excuses. And
sometimes. they ask Ior such prooI which are almost impossible Ior hapless/helpless Iamily members. Denying death
claim is obviously diIIicult. but denying accidental rider amount seems very easy Ior them. Are my concerns
baseless?
Reply
Prasoon
They are not baseless . but they are incomplete .. the cases which you have heard are Irom Iamilies where
they didnt give some right inIormaiton or incomplete inIormaiton which only the main person knew ! and not
Iamily and once the main person dies . the company comes to know about the 'base less Iact or 'silly
excuses which was silly or baseless Ior Iamily but not Irom company point . and hence denying the claim is
very well in thuier rights . its because they have covered a high risk person but got normal premium Irom him
all these years ..
I hope you will get convinced a bit Irom my answer iI not Iully ..
Imagine your selI as company and you are doing business. you insure a person and have two rates . Rs 10 per
year Ior non smoker. but Rs 20 Ior a smoker .. Now i have smoked Ior 15 yrs and then leIt smoking 2 yrs
back .. but as i dont smoke now . i dont mention it in policy . i hide it thinking ki 'chalta hai! .. i get Rs 10
Irom him Ior next osme years ..
Is it risky Ior me to cover him than a normal perosn ? NO ! . he has been a smoker and his lungs and heart
are all hallow now ! .. they are inIected and he has high chances oI DYING than a normal person .. then he
actually dies .. autopsy is done and report says lungs gone because oI smoking all these years .. I reiect claim
because i was underpaid and I was made to beleive that the person was healthy . thats the reason i was
charging him less premium .. so I DENY .. I as a company am right and in very ethical with the customer and
my business ..
But imagine what happens to Iamily .did this person tell his wiIe or children about his 'hiding oI inIormaiton .
NO . because it was too small things to discuss .. Iamily thinks they are secured . have no issues.. and later
when their main bread winner dies . and in that rona dhona they dont get the money . out oI Irustration
everything will look like 'silly excuse or 'baseless . Insurance is not a easy thing to understand .. big
regulators are watching .. everything is audited .. the main problem is we dont look into it and try to
understand how it works .
Its a pure business .. Insurance companies will always be in proIit iI they pay all the genuine claims . Its we
customers who have to get genuine Iirst !
Manish
Reply
372 Prasoon February 15. 2011 at 5:12 pm
Thanks Ior detailed explanation. I completely agree with the Iact that iI one hides something Irom
insurance companies. the onus oI reiection is on no other than him/her. AIter reading your
posts/comments (Ior 1-2 months) I have got a good idea oI this complex thing.
But. my concern is here regarding Accidental rider claim. Is there any case where company pays death
claim but does not pay accidental beneIit? On the grounds like person died Iirst and accident happened
later or vehicle was not registered or something other.
One oI other question. iI we remove reiection cases oI within two years and smoker/non-smoker
cases. will percentage oI reiection reduce drastically?
Reply
Prasoon
hmm.. I am not sure on that .. may be we need experts opinion on that .. let me bring dhawal
sharma Ior that .. our helper in trouble .
Also . Most oI the reiection cases are very new one`s as there is generally a detailed check and
investigations in cases less than 2 yrs old .
Manish
Reply
374 Dhawal Sharma February 15. 2011 at 8:25 pm
Thanx Ior the Compliments Manish..I like HELPER in TROUBLE
As Ior the hypothetical situation put Iorward by PRASOON. hypothetical answer would
be that iI a person dies oI HEART ATTACK/HEART FAILURE while driving the car
and car collides with a TRUCK/WALL. and later on its written in DEATH REPORT that
death has occured due to HEART FAILURE and not due to any accident. then company
will be in its legitimate rights to deny the claim..I have not come across any oI such cases
in my career nor have i read something like this but Iew seniors told me that almost always
these kind oI cases are complied with by the company on the humanitarian grounds (OI
course. SUM ASSURED being less and not Ior cases where sum assured is 50 lakhs
)..
Thirdly. again i will emphasis that ALL INFORMATION DISCLOSED in PROPOSAL
FORM. GENUINE CLAIM at the time oI DEATH. DEATH within the parameters oI
the POLICY (Death due to TERRORIST attack and policy covering these types oI
claims). and all documents required are provided to the company (DEATH
CERTIFICATE. ORIGINAL POLICY BOND etc) then no matter what ratio or which
company. CLAIM will be paid..
So lets Iocus on getting these things right rather than what would be the claim ratio and
all..
Reply
Dhawal
Thanks Ior the reply
Manish
Reply
376 iames February 15. 2011 at 10:36 pm
Don`t see the need to go to such a complicated scenario person died Iirst and accident
happened later although it is possible. Much more simple and common problems are there:
Accident claims require prooI oI accident. In most case it is FIR. In hit and run cases this maybe
diIIicult. Perhaps then claim can be delayed or reiected.
Also iI company gets evidence oI recklessness driving with someone without license or
unregistered vehicle or vehicle with poor brakes claim can be reiected. So FIR report can be
used to reiect claims!
Consider this: Suppose a manager while on site inspection gets hit by a crane and dies. The
company has to agreed to Iile FIR only then it can be proved it was an accident. So in this case
it maybe diIIicult to claim rider amount.
Reply
377 Prasoon February 16. 2011 at 11:59 am
Thanks James Ior clariIication. That was my point. In many cases it may be really diIIicult
Ior kins oI deceased to provide accidental prooI to satisIy insurance provider. While
getting death claim only is relatively easy.
However. I may be wrong completely!
Reply
378 Tarun February 19. 2011 at 5:17 pm
Good point to consider. But the amount oI clauses they have put Ior accidental makes me skeptical e.g. Flight
should be on scheduled route and on time 'Accident should be clear evident Irom external source etc Also to
illustrate. My cost is coming about 7666 Ior basic insurance.while it is 10.203 with accidental Ior 50Lacs. While Ior
1Cr the cost comes out to be 12.330. So one could as well take 12.300 to assure 1Cr.
Reply
Prasad
This shows that its a case to case experience iI its bad or good .. some places have bad adminstration and other places dont .. But
overall I personally would rate ICICI Protect as bad service providers as 50 or more cases I have heard had horror stories in it
.
Manish
Reply
380 Tandon Ji February 16. 2011 at 6:35 pm
Namaste Manish Ji.
Thanks Ior doing a wonderIul iob with your blogs on insurance in general and term insurance in particular.
AIter reading a Iew oI your blogs and many oI the readers` comments. I must say I was stunned to realize my own lack oI knowledge in
this subiect matter. So thanks once again!
For a term insurance buyer. the trustworthiness oI a private insurer is the biggest Iactor. But private insurers being private insurers can
never match up to LIC on this. However. iI a private insurer has been selling a particular term insurance policy Ior quite a while. it would
give the buyer some assurance that because so-and-so policy has been around Ior quite some time. there must be something good about
it.
I believe it`d be a good idea to compile a list oI all currently available term insurance policies chronologically. the logic being: the older
the policy has been in the market. the more trustworthy it is.
Do you think it`d be useIul?
Regards.
Tandon Ji
Reply
Tandon ii
Thats a good point ! . In that case you can look at SBI . HDFC and ICICI as options . they are pretty old now
Manish
Reply
382 Anand February 17. 2011 at 6:28 pm
Another view to the whole term buying experience. A Iew months ago I wanted to buy a term policy and approached a number oI
insurance companies (called up the company and asked them to send an agent etc.). Almost all the agents who came over. gave me the
top level quote Ior a term policy (mostly avbl at the site) and then started pushing ULIP and other policies with higher commisions. Once
I stressed that I wanted a term policy. almost all oI them got uninterested. So I think the only option leIt to actually buy a term policy may
be via online. even iI there is delays and bad customer services (atleast it cannot be worse than what I get Irom the agent route)
Reply
Anand
haha .. i like that one :0 . Like I say 'iI you have waited Ior 30 yrs . why not 30 more days !
Manish
Reply
384 raiiv saxena February 20. 2011 at 5:11 pm
hi. what is the procedure Ior death claim Irom insurance companies?
please reply
Reply
Raiiv
See http://www.iagoinvestor.com/2010/09/9-most-asked-questions-about-term-insurance.html
Reply
386 Sampath February 21. 2011 at 9:32 am
AIter lot oI research. i decided to go Ior Kotak PreIerred Plan.
I wrote to their Customer Service. Iilled the Contact us Iorm. No one cared to call me . its been 3 weeks
Now am aIraid about these guys. they are not even calling people (Irom Metro city) who wanna take policies. Dont know what will
be the situation during claims..
Reply
387 Subhashis Das February 21. 2011 at 5:34 pm
AIter reading this good topic & discussion Iorum. I zeroed on Kotak & went to buy a SA 1 crore term policy Ior myselI. I went to
Kotak LiIe Insurance`s 'Chinsurah (W.B.)Branch oIIice to Iind what term policies they oIIer & what are the details. The branch is on
2nd Iloor oI a shabby looking building in a busy area & it appears that customers do not visit the branch personally. The staII were
clueless about term policies & seemed apathetic to customers. AIter reIerring me Irom one table to other Iinally a manager looking
elderly guy appeared & told 'e-preIerred policy is reserved Ior Kotak`s own employees & thats it! I turned out saying thanks to them.
No one bothered that a potential customer is leaving the door. I wonder what kind oI service the staII would be able to provide iI the
need arise. My total sympathy is with Kotak`s policyholders.
Reply
Subhashis
Thats bad . Its not a healthy sign Ior great customer service .
manish
Reply
389 Ankur February 21. 2011 at 7:57 pm
Hi.
Thanks Manish Ior this insightIul article.
I am 28 years old. married with no kids. My wiIe is currently studying and will start working in an year or so. I have a home loan oI 44
lacs and hence interested in a term insurance policy.
Reading the article and all the comments above I would go Ior either LIC or ICICI protect. I plan to take 50 lacs oI insurance cover.
What I want to know is: why is it generally considered better to take health policy etc to cover accidental death. permanent disability.
critical illness etc. instead oI going Ior the riders in the same insurance policy.
Also. I am conIused whether I should split my policy among two diIIerent insurance players iust to split my risk in the event oI claim
reiection?
Thanks!
Reply
Ankur
There are diIIerent cost involved in a product . sales cost . distribution cost . operational overheads . documentation etc . IN term
plan . its all there already and you iust have to add in the Ieatures oI those add-on products . due to which the costs come down .
In stand alone policies there are all the costs seperately .
Yes you should split the policy to diversiIy the risk and to get Ilexibuility oI reducing the cover later incase you need it
Manish
Reply
391 VJ February 21. 2011 at 10:40 pm
Hi Manish. I must compliment you Ior your wonderIul blog. I have made it as a habit to check your blog beIore deciding on any Iinancial
product. I have a query and grateIul iI you could help me. I have a MET Suraksha policy Irom MetliIe Ior Rs. 30 lakhs with CI rider oI
Rs. 5 lakhs and the policy term is 20 years. I have been paying premium oI approx. Rs. 30.000 p.a. regularly Ior the past 4 years. But
MetliIe service is pathetic and I do not wish to renew it. I already have applied Ior Kotak preIerred term plan Ior Rs. 60 lakhs which I
am yet to receive the policy document. I wish to go Ior another term plan using the premium oI Rs. 30k p.a in addition to Kotak
preIerred term plan. I have shortlisted i-Term. i-Protect and SBI Smart Shiled. Could you please help me in choosing the appropriate
plan? My age is 48. Thanks in advance.
Reply
VJ
30k premium Ior 30 lacs cover is too much Ior your age . because you have taken it 4 yrs back the rates are the older one and
very high . As you want to go with Kotak . I would suggest going Ior Kotak e-preIerred instead oI kotak preIerred . as its a
online term plan and will be a cheaper one . Note that you should split your insurnace in LIC kotak-epreIIered .
See how much is the premium Ior 30 lacs in LIC 30 lacs in Kotak e-preIIered . I think it will not cross 30k . Also be patient
with online term plan . they are more slower than oIline plans . which city are you in ?
Manish
Reply
393 VJ February 22. 2011 at 11:37 pm
Hi Manish. Thank you very much. I think I have not conveyed the inIormation properly. I will try to bring in more clarity on
the Kotak insurance policy. I have already paid my Iirst premium Ior Kotak PreIerred plan Ior Rs. 60 lakhs and underwent
the required medical tests too. I am told by Kotak that I would be getting the policy document anytime now. I wish to take
an additional policy in lieu oI MET Suraksha Ior which I am paying Rs. 30.000 p.a currently. As you have rightly pointed
out that the premium rate is very high Ior MetliIe policy. I wish to opt Ior a term policy Irom some other insurance company
other than Kotak (as I have a policy with them already). I wish to use the Rs. 30k that I am paying currently to MetliIe and
take this additional policy. Shortlisted ones are i-Term. i-Protect and SBI Smart Shiled. I have checked the LIC policy and
the SI would be around Rs.30 lakhs only Ior an annual premium oI Rs.30.000. Will LIC be better than ICICI. Religare
Aegon or SBI? I have no concerns about going with private insurers. I live in Bangalore. Regards. VJ
Reply
VJ
You have taken the oIIline version oI term plan Irom Kotak . Now you can go with an online version oI term plan .
So better go with ICICI Protect or MetliIe . I would have suggested LIC . but its premium is very high and you are
ready to go with pvt insurers anyways
Check iI your total cover can be near 1 crore only . Is that enough Ior your dependents considering EVERYTHING
Manish
Reply
395 ShanmugaNandan February 22. 2011 at 9:01 am
I had applied Ior LIC`s Amulya Jeevan Ior 1 Crore term plan..initial estimate was Rs. 31800/- aIter medical checkup and one month
.now they are quoting
Rs. 49.166/- !!!!!! .
I am seriously disappointed.
I am non-smoker. non-drinker. normal bp and no history oI diabetics in Iamily. Age 29 married.only problem is with my weight which
is 95kgs.however i wont look like one as my bone weight is always high.
I am seriously thinking oI cancelling it.and going Ior others.wht do you suggest. ???
ICICI iprotect initial quote is 11k additions may get to 20k max..but 49k is Iaaar higher..
Reply
Shanmuganandan
You dont need to be disappointed . its a pure business act . LIC rates are higher than others as their mortality rates are older .
they are not revised .
There are two suggestions I can give to you .
1) Why dont you Iorget about term plan Ior a while and seriously work on reducing your weight . you might be thinking about it
Irom long and beleive me it will never happen iI there is no motivation . you need to be more committed . not iust interested in
reducing weight . Make a proiect . take 6-9 months. reduce it to decent levels . And then apply Ior the term plan . YOu will be
happy Ior two reasons |RECOMMENDED|
2) TAKE 25 lacs Irom LIC and rest Irom ICICI .
Manish
Reply
397 ShanmugaNandan March 2. 2011 at 9:07 am
Thanks Manish.
I would also like to discuss one important thing.
LIC oIIicer told me the that premium Ior term policy has two components
1) estimate (what you see in premium calculator online)
2) loading (on the basis oI medical tests).
Loading is categorized to type I. II. III. IV based on medical conditions. Type-I is least and Type-IV is highest.
Type-I is 55 oI the estimate premium and I have been charged the least loading he says.
I am wondering iI that is the actual way..its Cheating !!!
when you have no problem at all why should they add 55 extra premium as loading ??? why cant they say it in estimate
only?
Is this how it works with other insurance agency only?
Reply
398 Sunil Date March 2. 2011 at 7:43 pm
(ShanmugaNandan You have admitted that you are overweight. What is your body mass index (BMI) ( Weight in
Kg/Height in meter Squared) ? II it is ~ 30 then it is a case Ior concern. As Manish has suggested consult your co
doctor on this issue.
Each Insurance company has its underwriting norms. They not only study your current health status / your working &
personal liIe style / Family history etc (i.e diagnosis) but also do a prognosis. II in their opinion it is a sub standard
case they load the premium ( i.e consider the proposer to be oI a higher age) so that it is not unIair to the other
standard policy holders. It is not necessary that each medical underwriter would arrive at the same conclusion (
prognosis based ).
You must have accepted the addl premium demand beIore the policy was issued. We cab Iairly assume that it is not
in all cases that addl demand is made.
Reply
Shanmuganandan
The procedure looks right . its very right way . Imagine you are insurance providor . how will you decide the
premium beIore hand ? Unless you do proper checkup . what iI the person have heart blockages and he does not
know him selI . so aIter the medical exam only you have to see how severe the person is and how much loading can
be applied.
In you case you are saying that you are healthy and nothing is there. then ask them what is the reason Ior loading?
Manish
Reply
400 Dev February 22. 2011 at 11:25 pm
Manish.
I have gone through this post oI term insurance and Iirst would like to thank you Ior such a wonderIul post. This has been an eye opener
as I was not knowing any details. necessities and beneIits oI term insurance. Thanks to many knowledgeable Iellow posters also who
have asked good questions and also provided answers.
I an in the process oI identiIying two term insurance policies Irom 2 players Ior 50 Lakh each. AIter hearing Irom you. Dhawal Sharma
and others I have decided to go with private insurers and stay away Irom LIC due to their high premiums . At least it appears that no
claim can be reiected iI all the Iacts are provided correctly and genuinely I don`t have any intention oI cheating insurer as well. Also.
hope policy portability moves by IRDA will become easier and easier as time passes..
By looking in to comments Irom Iellow posters. I have all most Iinalized on Kotak e PreIerred and ICICI i protect plans Ior 30 years.
But AVIVA and MetliIe are providing policy till the age oI 70 which would come to 34 years in my case. It seems there is not much
discussion on this point oI having policy more than 30 years in this post.
Given the Iact that customer service seems to be average or below average in most cases/companies. I Ieel that its better to go with
company which can provide cover Ior a longer period. I have calculated the premiums and its not signiIicantly higher Ior policy oI 34
years. I am Iine paying a little higher premium Ior longer coverage. I will always have the option to stop paying the premium at a later
date iI I want to.
Whats your thoughts on this ? Do you suggest to go with AVIVA/MetliIe Ior 34 years or KOTAK/ICICI Ior 30 years.
I will post my experiences once I complete the exercise oI buying. I am in the process oI contacting the insurers and this post has already
helped me a lot to look Ior right inIormation and ask right questions to agents.
Thanks !!
Reply
Dev
Thanks Ior your comment . You can get your selI insured upto 34 yrs Irom AVIVA or MetliIe . thats Iine .
Just make sure you trust the company you are going with and also you are right tht you will be able to stop the premiums
whenever you want
Keep posting your experience
Manish
Reply
402 Hema February 23. 2011 at 1:40 pm
Hi Manish.
We Iinally bought kotak e-preIIered term plan SA 50 lakhs Ior my husband age 34 non smoker. non drinker and general health good. It
was very easy to buy we Iilled the application and made payment on 4th Feb. was called Ior medicals on 9th. 19th the insurance was
issued and on 23rd Ieb recieved the insurance document. It was Iast and easy.
We need to take one more term policy ..will keep checking to see what others experience is and then decide on one..
Regards.
Hema
Reply
Hema
Nice . I think you can go Ior a small amount with LIC now or with ICICI . Do your research
Manish
Reply
404 viiay February 25. 2011 at 9:26 pm
Feeling bad aIter reading article. Purchased Aegon religare 50 lakh Ior 25yrs on recommendations Irom apna insurance. Medical
checkup over. still to receive policy. i understand that claim ratio oI aegon religare is very bad. what should i do?
Reply
Viiay
Dont get too disappointed . II the data you have given is all correct . You should not worry much
However incase you want to discontinue . you can surrender the policy as soon as you get it in your hands . make sure you do it
within 15 days
manish
Reply
406 Sunil Date February 28. 2011 at 7:18 pm
( Viiay. LIC has a 50 years history. Compared to the policies sold the reiected claims will come down Ior the new
entrants. Other companies are relatively new so the claims reiected ratio may look adverse. The reiected claims will not
increase in proportion to the increase in number oI policies sold.
II i see only the absolute number oI claims reiected. the no Ior LIC is huge. But in statistics many a times. one can twist the
logic to suit ones expected answer. As Manish has mentioned. iI one has provided all the data correctly and honestly to the
insurance co. then there is no way a claim can be reiected.
Reply
Thanks Sunil Ior the reply
Reply
Thanks Manish Ior the quick reply
Reply
409 harsh yadav February 26. 2011 at 9:53 am
I think i would go with a mix oI LIC and SBI liIe. trust oI government support. and a decent record and premium oI both the companies.
Your views Manish ??
Reply
Harsh
Note that only LIC and Reliance are pure Indian companies . Rest all the companies have some ioint venture with Ioriegn partners
. but i dont think it should be huge concerns .
Go Ior LIC SBI . looks good
manish
Reply
411 Sahil Bhatia (v-2sahb) February 27. 2011 at 5:50 am
Hello Manish.
I am a regular visitor to your blog and Iind your articles very very inIormative.
Although I am working on your advice (Irom your blog) slowly and gradually. but I would like to tell you that you have totally convinced
me about taking Term insurance and investing in MF through SIP`s. I would also like to thank the readers oI this blog Ior their valuable
comments.
Regarding the term insurance. I went through this article and I have contacted Kotak to get a term plan Ior Rs. 30 Lakh Critical Illness
Rider (5 Lakh) Permanent Disability Rider (9 Lakh) coming out to be around Rs. 6100 Ior my age 24. But I am expecting the amt to
go higher since High Blood Pressure Heart disease Diabetics. run in my Iamily. I will deIinitely Iill the Iorm myselI and give the
correct inIormation so the claim cannot be reiected.
Let`s see how this goes !
JagoInvester Admirer
Sahil Bhatia (v-2sahb)
Reply
412 Amit Kumar Saini February 27. 2011 at 7:13 pm
Hi Manish.
Please let me know iI come across this Irom ICICI. I tried to buy iProtect Irom the ICICI web site. My name is Amit Kumar Saini on all
legal documents. while Iilling my details they have First Name and Last Name. so I can only enter Amit Saini. Please let me know iI it be
a problem in Iuture. or it can be changed on the policy.
Thanks
Amit
Reply
413 Prasad March 1. 2011 at 6:10 pm
HI Manish.
Thanks Ior such a beautiIul article. I have been 'Sols Jeevan Anand policy by an agent. AIter Paying one premuim (5000) I realised it`s
not worth it hence and did not want to continue. When I approached LIC. they said I have to pay Ior 3 years to surrender. However. I
decided to not pay any more premuim. taking 5K as sunk cost and let the policy lapse.
Now. I want to purchase a term plan. Given. the high claim ratio oI LIC. I want to go Ior it. But do you think my earlier policy to be a
deterrant in case oI any claim settlement in Iuture as a breach oI trust etc.?
II yes. can you suggest me a pure term policy that can be good.
Regards.
Prasad
Reply
414 Guru March 1. 2011 at 10:41 pm
Hi Manish .
Could you please let know the details oI a) SBI insurance agent b) Kotak insurance agent Contact details iI you know some good
agent in BANGALORE ?
Thanks
Guru
Reply
415 vinod pal March 3. 2011 at 11:51 pm
Manish & all.
I need your openion!
I am having Amulya Jeeven oI 25lac Ior 35 years and took it in 2008. I submitted wrong ducument (illegal) is that i am a graduate
person. which i am not.
in Iuture.
1. Will it be a reiected at time oI death claim? or
2. Should i close this policy and take a new one Irom other providers?
3. Should i stick with the same?
3. i want to take more cover 50L. high premium not a problem i can pay it Ior my 100 trust on LIC. coz i want 100 saIety Ior my
Iamily.
your comment and suggestion are greatly appriciated.
Thanks in advance
Reply
416 Manish Chauhan March 4. 2011 at 1:07 am
Vinod
while there is no example i have seen that giving wrong educational qualiIication is an issue. the question is why did you did it in the
Iirst hand ?
This can become the basis oI reiection as there is an element oI breach oI trust here .
Manish
Reply
417 vinod kumar March 11. 2011 at 8:23 pm
Thanks Ior your reply.
i given that because i thought my 12th.. will not be good enough Ior taking oI sum assured 25 lac Ior Amulaya ieeven.
now should i stick with that or i take a new policy?
plz suggest wht should i do.
Reply
Vinod
I am not very sure on this now . You can ask your agent on how this will have impact .
Manish
Reply
419 RAJIV SAXENA March 5. 2011 at 9:58 am
hi manish.
i am abount to take a term plan Irom kotak. how should i disclose the Iollowing in proposal Iorm.
1. details about mother. she died in 1984 suddendly while cooking. cause is death is unknown.
2. details about Iather. he died in 1989 due to ulcer disease.
iI i mention 'NATURAL DEATH Ior parents. will it be suIIicent? or it will be wrong inIormation submitted in proposal Iorm?
Reply
Raiiv Saxena
Is there any option given in the Iorm or is it blank where you can Iill in anything ? II its blank . then iust Iill in what happened . For
mother . you can Iiill in natural and Ior Iather ulcer disease .
Manish
Reply
421 Rahul March 8. 2011 at 11:57 am
Hello I am 28 yr old. Single. leaving with my parents.
Father will be retired in next 2-3 Years.
Parents having their own home in aurangabad and I am working in Pune and planning to take Ilat in next year with home Loan oI 20-
25Lac(at this time Home loan will get covered by another insurance?)
My annual income is 4.5L and I am going to marry next year.
Now Question is:
I would like to take Term Plan.
I search term plan in market and Irom your site I decided to take Kotak PreIerred Term Plan Ior Premium oI 30L Ior 30 yr with
accident death beneIit rider 7. 50.000 and Permanent disability 7. 50.000.
From my overall planning Can this Plan is ok? Or shall I need to take more cover?
Is LIC is better option than Kotak Ior me?
Please Guide..
Regards.
Rahul
Reply
Rahul
30 lacs looks ok Ior now . Considering your parents are partially dependent . Once you are married . you might want to
reconsider additional term plan .. Incase you dont have any Iinancial dependents right now . you can ignore insurance at the
moment .
Manish
Reply
423 Krishanu De March 10. 2011 at 12:19 pm
Manish.
I have a typical scenario. I am willing to take up a term insurance with cover oI 50 Lacs currently but I might have to move outside India
in couple oI years and eventually apply Ior citizenship there. Will I be still covered?
Regards.
Krishanu.
Reply
Krishanu
once your citizenship is with other country. it would become a little diIIernet . you can then inIorm the company . Anyways its a
yearly contract . you will atleast be covered till you move to diIIerent country permanently !
manish
Reply
425 Mani March 10. 2011 at 2:47 pm
Hi.
Thanks Ior an excellent article.
I have decided to take LIC`s Amulya Jeevan plan Ior 25L and iust wondering will it make any diIIerence in claim settlement between the
policy taken in a metropolitan city or in a small town.
Please Advise
Thanks.
Mani
Reply
Mani
No . it will not make any diIIerence
manish
Reply
427 dr kishan March 11. 2011 at 2:00 am
DEAR MR DHAWAL SHARMA / MANISH
i wanted to clariIy some things.
1) whom should we make nominees in term plans? what is your suggestion? is it spouse or is it minor children with equal percentage
share and spouse as appointee. will making the spouse as appointee lead to any problem during claim settlement iI the children are still
minor at the time oI death oI liIe assured. or will the money be handed over to the appointee easily.
2) imagine a case where the spouse is made the nominee and not the children. now the spouse dies Iirst and then the liIe assured dies.
then will the money be handed over to the children automatically. iI the liIe assured person does not update the insurance company about
nominee change.
3) can we change nominees aIter the policy is issued. iI yes what is the procedure?
4) iI the whole Iamily dies in an accident then who gets the money? how does the company decide who gets the money?
you may Ieel that my questions are paranoid. sorry Ior that
but i wanted to clariIy all scenarios possible which i could think oI.
i have already taken two policies oI 50 lacs each Irom LIC and AEGON religare. thanks to you manish. i am in the process oI taking my
third 50 lac policy which is Irom KOTAK (preIerred term plan)
awaiting your answers
dr kishan
Reply
Kishan
You can make the nominee who you think will be there to recieve the money . Spouse would be better .
Manish
Reply
429 Ilesh March 12. 2011 at 1:18 pm
I have taken term plan Irom Birla Sun LiIe one year back oI Rs. 50.00.000 Ior 30 year term. At that time I have not revealed that my
Iather`s death was due to cancer. He died at the age oI 60 years and 4 months. I have undergone ECG and Urine and Blood
Examinations.
What is the consequence oI hiding such inIormation in Iuture in case oI my death?
Can you give advice regarding same
Reply
Ilesh
This one is answered in the previous article .
Reply
431 Rahul March 12. 2011 at 1:30 pm
I (Male. 33 Years) am seeking quotes oI 1.00.00.000 Ior 25 year term My mother died oI cancer when she was in her late 60s. I have
no medical problem. Every time I Iill up the Iorm I have been asking about anyone in immediate Iamily member died oI cancer beIore 60.
What should I do? I should reveal the inIormation? What will happen? and what will happen iI i hide such inIormation.
Thanking you
Reply
Rahul
II you dont disclose it . your claim can be reiected . II you tell this inIormation . then a small loading can happen (increase in
premium) . but that would be better Ior good
Manish
Reply
433 raiu March 14. 2011 at 12:21 pm
Hi Manish.
I am considering to take online term policy either Irom ICICI
Pru iProtect or Kotak e PreIerred Term Plan.
Which is better Insurance house in terms oI customer care and claims settlement ratio and any other Iactors?
Regards.
Raiu
Reply
I Would suggest Kotak
Reply
435 sravi March 16. 2011 at 2:52 pm
hi Manish.
Great iob done with this very useIul blog . Keep it up:)
Please suggest me which is the best among the below term policies as my husband . age 28 is planning to take 50L coverage term
insurance.
1) ICICI Pru iProtect Ior 25 yrs.
2) Kotak e preIeered term
From your blog i have seen that many customers Iaced issues with ICICI custome service. Please suggest me the good one.
Please note that my husband took one ULIP policy Irom Kotak 2 years back and it was terminated due to policy is not revived within
revival period.
My question is :
1. Incase. he takes the term insurance Irom kotak . Will it be the problem at the time oI claim settlement.
do you suggest us to go with Kotak term plan as other ulip policy is terminated by them.
Thanks in advance.
cheers.
sravi
Reply
436 Dhawal Sharma March 17. 2011 at 11:32 pm
(SRAVI Respected Maam. Iirst thing i would like to add is which term plan is better depends upon an individual`s
perception..There is no one single TERM PLAN which is THE BEST. suitable to everybody on every single criteria (Low
Premium High claim settlement ratio trust proIessionalis and customer care aIter sales service etc)..II there would have
been one single TERM PLAN which IulIills all the above criteria. then everybody would have purchased that plan and this
discussion would not have been going on and on..So iust check out on your own Irom KOTAK E-PREFFERED and ICICI
IPROTECT whatever criteria are you looking Ior and whichever suits your needs best. iust go Ior that..
Second Scenario which you have mentioned is that your husband`s ULIP policy has not been revived within the revival period..II
someone dont pay his/her premium at due time. company consider those policies as LAPSED and give them 2 to 3 years to re-
activate or REVIVE those policies by paying the outstanding amount with some charges..In your case. you did`nt revive your
policy so its your mistake and not that KOTAK has terminated your policy..
by the way. there will be no eIIect on your purchase oI new plan Irom kotak regarding lapsation oI your last plan..II at all there
would be any repercussion. it would be that KOTAK wont issue you new policy at all.So there would be no point oI your claim
being reiected in the Iuture..
Dhawal Sharma
Reply
437 sravi March 18. 2011 at 4:34 pm
Thanks Dhawal Ior the reply. I have a small question regarding claim settlement.
1. Suppose. husband is the policy holder and wiIe is the nominee Ior that. in case anything happens to both oI them. is there
any chance to get the claim settlement Ior the children.
II not. Do you suggest to select nominee as children or wiIe. which is good.
2. II Children is chosen as nominee as she is minor selected another appointee. Incase anything happens to appointee is
children need to wait till they are 18 maior to get claim settlement.
Thanks.
sravi
Reply
(SRAVI Respected Maam. Iirst part oI your question is Irom very unIortunate case where husband and wiIe
(Policyholder and the nominee) both died in a same accident. claim can be made by their CHILDREN or children`s
LEGEL REPRESENTATIVE by Iorwarding their case as legal hairs oI the deceased..Yes. there is Iull chance oI
claim settlement in Iavor oI the kids but it would not be as smooth and include many legal Iormalities as well as an
honest relative/person who could look aIter the interests oI the kids..But i still would suggest WIFE as nominee
because even iI child is the nominee. WIFE would automatically be in the picture as APPOINTEE..
2. Second part is not that diIIicult..II appointee is no more there. policyholder can assign somebody else as
appointee oI the kids and this appointee can be changed.Policyholder. in case oI death oI the appointee (Who may
be his wiIe). can make children`s GRANDFATHER/GRANDMOTHER/CHACHA/MAMA as the new appointee
oI the kids in the policy..
Dhawal Sharma
Reply
439 Rahul March 16. 2011 at 7:37 pm
I want to buy online metliIe term insurance. They only give term insurance to person who retire by the age 60. I m state govt employee
and Ior us retirement age is 62. Is there anything related to retirement age in metliIe or any other company
Reply
Rahul
There is nothing like that . Dont tell them that you would retire by 62 . tell then you are planning to change your iob .
Manish
Reply
441 Guru March 16. 2011 at 10:56 pm
Dear Dhaval / Manish.
I have taken Kotak preIered term plan . Agent 1 ( manager is the designation in business card ) came to me and did all processing and i
got my policy. While veriIying the policy doc i am surprised to see that some other agaent name is mentioned in Iinal policy document .
When i asked Agent 1 why his name is not there in polic doc ? then he replied that the other agent is his team member and iust to
encourage the team members he has given his business part to his team member and i dont have worry about it. But i have not met this
new agent.
Is it a problem tomorrow ?
In Iinal policy document . last pages Kotak puts the xerox oI applicaiton Irom Iilled in during submission. There i can see that Checked
by 'Agent 1 whom i met and did every thing Ior me and under Broker/agent coulmn i see this new person name.
Please let me know iI it is a problem or nothing to worry.
Thanks
Guru
Reply
(GURU Great that you have Iinalized on TERM PLAN. the REAL INSURANCE..
Now let me tell you how the INSURANCE COMPANY in the AGENCY MODE works..(I am explaining this with authority
because I myselI had worked in two insurance companies beIore taking up the AGENT role Iull-time)..The SALES MANAGER
oI any INSURANCE COMPANY is not entitled to sell insurance because only an AUTHORIZED AGENT (The one who has
qualiIied by passing the IRDA exam) can sell insurance products..In the AGENCY MODEL. a sales manager is required to build
his team oI AGENTs/ADVISORs and even iI he himselI picks the case. be it Irom Iriend-relative-client. that case has to be
logged in through some agent code who can be a member oI his AGENT/ADVISOR team..So iI that SALES MANAGER says
that he has picked the case Irom you and given it to somebody Irom his team. that is Iine BUT..
..Yes. the problem part is that because this sales manager is on the pay-roll oI the company and he is not an AGENT oI that
particular company. he will be shiIting his iob Irom KOTAK to ICICI or HDFC or SBI Ior sure within the next 6 to 7
months..For every service part related to your policy like change oI address. change oI nominee. or GOD Iorbids. at the time oI
claim. it will be only AGENT who will be standing by you and not the sales manager..
So Iirst step on your end should be to meet this AGENT 2 immediately. check out his credentials (Is he a Iull-time or iust part
time. time passing guy. how many clients he is handling etc-etc)..On Iirst meeting. you will come to know about the AGENTs
sincerity/knowledge/commitment level..II this AGENT appears genuine and proIessional. then nothing to worry about in your
case..
But iI this AGENT2 is a part-timer guy. with knowledge limited to only commission part and on top oI that. he is new to
industry; then there should be some apprehensions on your part..(But no need to worry because even iI the SALES
MANAGER/AGENT are not serving you. you can directly approach the company`s branch and get all the things done. nothing to
worry)..
But in any case. you should give a strong reply to that SALES MANAGER that this is as good as cheating or what we call
DHOKA..
My humble advice to everybody on this blog is PLEASE CHECK THE PHOTOCOPY OF THE LICENSE OF THE AGENT
WHO IS VISITING YOU. BE IT FROM LIC/KOTAK/ICICI/SBI or WHATEVER..Beacuse only AGENTs are authorised to
sell insurance products and nobody else..
Dhawal Sharma
Reply
443 Vivek March 18. 2011 at 2:04 pm
Dear Manish.
While researching online about term ins.. i stumbled upon your article and Iound almost everything i was looking Ior and many new inIo
also.
thanks and many congratulations
as a query. even though many people in this blog are Iorming a positive opinion about kotak. i had zeroed in upon kotak insurance even
beIore reading this article Ior my term plan. as i could set aside Rs. 7200 as annual term prem. in my budget. and i wanted a 25lac
policy with 25 year exposure illness riders and kotak Iit the bill out oI lic. icici pru. sbi liIe. reliance. hdIc standard. and kotak. which i
selected overall as Iirst choice.
my concern is about loading charges. i am a 35 year. healthy. no prev. illness. nonsmoker guy. married and with 1 daughter. Will the
actual premium be diIIerent than what is shown online. I am about to go Ior it. Any other important pointers?
Ieedback would be very much appreciated.
thanks in anticipation.
vivek
Reply
Vivek
Note that the actual premium will not be diIIerent than online shown iI you are a healthy person . but iI in medical you have any
issue . then they can load the premium .
Manish
Reply
Dear Manish.
Might be oI some interest to everybody.
http://www.policywala.com/content.php/202-Insurance-company-can-t-deny-claim-iI-the-insured-did-not-reveal-inIormation-about-
his-earlier-liIe-insurance-policy!
Reply
446 Subhashish Das March 19. 2011 at 4:40 pm
Hi. Manish
Your articles are always an eye opener Ior me and written in such a way that even a layman can comprehend easily complex matters
such as Iinance/insurance peretaining to his needs.
Today I came across an inIo regarding Aviva LiIe Shield Term Assurance where I questioned why compared to others the premium was
a bit high. It was reasoned that iI you survive expiry oI the term the premiums paid Ior the whole tenure will be reIunded (but without
interest); so to Iactor this the consequent high premium (not sure how).
This I believe might be a ploy to play with the general psychology oI getting back your investment in case nothing happens.
Best Regards
Subhashish
Reply
Subhashish
Yes . those are called 'Return oI premium term plans where they take extra premium Irom you . invest it in some thing secure
which can generate amount equal to your total premium and they pay you back that whole amount . Nothing special about it
Manish
Reply
448 ABHIJEET March 22. 2011 at 12:12 pm
DEAR MANISH/DHAVAL
Gr8 Job.Hell lot oI inIormation.
Now only thing I w`d like to know that.I heard that somewhere(Irom some agents) that the LIC either accepts & pays ur amout or
reiects it straight a way.
But private insurers sometimes do some bargaining on case to case basis Ior payment.
HOW MUCH TRUTH IS THERE IN THIS?
& II that is the case this ratio stated above will be completely Ialse.
can we have the claim settlement data in terms oI amount(i.e. TOTAL AMOUNT CLAIMED vs. TOTAL AMOUNT DISBURSED)
instead oI no. oI claims
Reply
449 kavita k March 22. 2011 at 12:15 pm
hi manish.
i have 1 query regarding term insurance. my husband is 49 years old and we have not taken a term insurance as nobody had suggested it
earlier. but we have our LIC policies.. so can he take a term insurance policy at this age because it will be till 60 years and the premium
will be too high? pl suggest what to do as the agent is now telling us to take the same.
Reply
Kavita
You can take the term insurance . but as you said the premium will be very high now . But still now its your choice to take the risk
oI now having the saIety net or having it and paying the high premium
Manish
Reply
451 kavita k March 22. 2011 at 12:20 pm
hi Manish.
i have 1 query regarding Term Insurance. My husband is 49 years old and we do not have a term insurance. as no one suggested it
beIore. Now the agent is pesterering us to take the term insurance. What do u suggest?
kavita
Reply
452 ABHIJEET March 22. 2011 at 1:51 pm
Dear Manish/Dhaval
Gr8 post & hell lot oI inIormation. Anyway I want to know that the claim settlement ratio speciIied in chart is on the basis oI no. oI
claims.
But I came to know thro` somebody (INSURANCE AGENT) that LIC is either accepting a claims & pays completely to the nominee
oI the insured person or reiecting completely. But the private insurers use to reiect the claim & then negotiate & pay the amount which is
much lesser than the sum assured (may be something like 10 lacs against 25 lacs sum assured)
SO I wanna know how much oI truth in this?
Did u heard oI such practices beIore?
& Is there any authorised inIormation available anywhere which depicts the claim settlement in terms oI amount(i.e. The total amount
disbursed against the amount claimed Ior insurance)by all the insurance cos.(PSU`s & Private cos.)
Reply
Abhiiit
Where did you see that inIo that pvt insurance pays much lesser aIter negotiation . It might be a case with court and it might be
something related to 'settlement . Can you give some source data
Manish
Reply
454 Abhiieet March 23. 2011 at 9:24 am
Dear Manish
I do not have any data regarding.But iust a say by an agent.
That why asked u about the truth but as u r saying
'It might be a case with court and it might be something related to 'settlement One can say that it might be in apractice to
some extent.
That is why I am interested to know that iI anybody on this Iorum had the data Ior claim settlement in terms oI amount
payed against claim
Reply
Abhiiit
Ok . in that case the best idea would be to open up a disucussion thread at our Iorum because thats where
everybody look at things . This place will now be seen by me and you only at the moment . Its an old article now .
http://www.iagoinvestor.com/Iorum/
Manish
Reply
456 ravi March 23. 2011 at 2:11 pm
I had a good time reading your article on Term insurance. Post analysis and reading this article I had zeroed in two plans Kotal eternal
term plan and SBI smart sheld. My analysiss led me to the opinion that kotal eternal term plan Ior 25 yrs would suit me the best. This is
because i am covered even aIter the premium payment period is over till i am 99 yrs old.
I also Iound SBI smart shield to be a promising plan but was not able to decide because i am not sure iI the insurance cover is valid even
aIter the premium payment period is over.
Considering my age oI 31 i am planning Ior SA 1 crore term insurance.
So please advise which plan do i opt?
I also had a thought iI i take 50 lacs in kotal eternal premium plan and 50 lacs in sbi smart sheild but will this be a good option. I am also
considering to include riders Ior critical illness and accidental beneIit.
Reply
457 Ravikrishna March 25. 2011 at 10:53 am
Hi Manish.
Looking Ior your inputs/suggestion Ior my below comments. Please do guide.
I had a good time reading your article on Term insurance. Post analysis and reading this article I had zeroed in two plans Kotal eternal
term plan and SBI smart sheld. My analysiss led me to the opinion that kotal eternal term plan Ior 25 yrs would suit me the best. This is
because i am covered even aIter the premium payment period is over till i am 99 yrs old.
I also Iound SBI smart shield to be a promising plan but was not able to decide because i am not sure iI the insurance cover is valid even
aIter the premium payment period is over.
Considering my age oI 31 i am planning Ior SA 1 crore term insurance.
So please advise which plan do i opt?
I also had a thought iI i take 50 lacs in kotal eternal premium plan and 50 lacs in sbi smart sheild but will this be a good option. I am also
considering to include riders Ior critical illness and accidental beneIit.
Reply
Ravi
note that eternal is not a term plan . its a whole liIe plan . Stay away Irom it .
Reply
459 Deepak March 27. 2011 at 8:34 am
Hi.
I am looking Ior a Term Plan Irom Kotak. I have the Iollowing queries i.e
a) Can i add the diIIerent riders to Kotak PreIerred Term Plan/Kotak ePreIerred Term Plan much later aIter initially buying a policy. For
ex I buy a Term plan without riders and Iive years down the line. i want to add riders to the same policy.
b) Incase it is possible to add the riders later on. who will bear the cost oI the Medical Checkup.
c)What is the claim settlement ratio Ior Pure Term Plans Ior Kotak LiIe.
d) Till what age is the riders applicable. Is it till 65 only.
Regards
Deepak
Reply
Deepak
a) Its tough . I had a policy with SBI. but i was not able to add the riders later . So I assume it wont be possible with Kotak also .
c) This kind oI seperate data is not published . You will be able to Iind only total claim ratio . I know this is weird !
d) depends Irom company to company .
Reply
461 Sandeep March 27. 2011 at 5:05 pm
Hello.
Requirement: Buy term plan Ior myselI and wiIe. Both are 26 years old. non-smoker and wish to have sum assured oI 50-60 lakhs.
Please suggest a suitable plan
a) I will give more preIerence to claim settlement ratio iI compared to cost
b) PreIer to have Accidental Rider as I stay in metro city
c) PreIer policy term Ior 30 years
I have checked term plan`s on net. gone throw you article cum read many comments and wana choose:
a) Male ICICI i-Protect with Accident rider Ior 30 lakhs/30 yrs costing rs 5190 and LIC Amulya Jevan Ior 25 lakhs/30 yrs costing rs
6825. Total 12K per year.
b) Female ICICI i-Protect with Accident rider Ior 30 lakhs/30 yrs costing rs 5250 and LIC Amulya Jevan Ior 25 lakhs/30 yrs costing
rs 7150. Total 12K per year.
Please provide your valuable Ieebback.
Many thanks in advance Ior your time and sharing your knowlege.
Regards
Reply
Sandeep
Your plan looks good to me . You can also choose Kotak over ICICI incase you want . LIC would be a good choice . iust that it
does not have any riders !
Manish
Reply
463 Sandeep Kumar March 28. 2011 at 2:31 pm
Many thanks Manish Ior your reply.
Did you mean
Kotak e-PreIerred plan -~ Male- 30 lakh/30 yrs rs 4000 and Female- 30 lakh/30 yrs rs 3404?
II yes. can you please advise why you have suggested same (Are you scaling on claim settlement? or any thing else?)?
I undertand.
-~ Kotak don`t have any rider but have a good Ieature that will increase your insurance amount (As mentioned in your
article)
-~ ICICI i-protect without rider cost less (3600 as compared to kotak e-PreIerred)!!
Reply
Sandeep
Some oI the ocmpanies like ICICI . AR and kotak are oIIering thier plans online . Kotak has all 4 riders and people
have experienced a little better service than ICICI
Kotak has all the iriders. its LIC which does not have it
Yes without riders it costs less
Reply
465 Sandeep Kumar April 5. 2011 at 4:41 pm
Hi Manish.
Thanks Ior your comment and while I was to buy policy I got one more question/suggestion. which is related
to term oI plan:
As I am buying policy on line then I may go with 'Met LiIe`s Met Protect as it has 35 years oI term (In your
article`s on JAGOINVESTOR. you have not talked much about metliIe. Any speciIic reason Ior it? How you
rate this in term oI claim settlement? FYI II you wana buy metliIe met protect then you can buy only online
i.e. there is no customer support as compared to ICICI iprotect. Ageon e-term. Kotak e-preIred).
As my current age is 26 and iI buying policy with 30 years term then I may go policy less at age oI 55. In this
case I may have 2 choices:
a) But new plan at 55 which will should be too costly at that time
b) Again buy new/Iresh plan at age oI 30-35
Can I request you again to share your knowledge?
Reply
466 Manish Chauhan April 5. 2011 at 5:26 pm
Sandeep
Insurance till 55 should also be ok . it does not make a lot oI diIIerence . you need insurance especially
in start oI your liIe . not much at later point.
Reply
467 Sandeep May 1. 2011 at 8:03 pm
Hi Manish
I want to share my BAD EXPERIENCE WITH KOTAK. which I got while I was trying to get
inIormation about kotak e-preIerred plan.
For kotak e-preIerred plan step-up option. I had Iollowing queires:
a) On 1st. 3rd. 5th policy anniversary. how premium will be calculated i.e. will Iactors like
smoking. health condition. re-medical check-ups. economy inIlation etc be considered? Or only
3 oI basic premium be increased on 1st. 3rd .5th year and birth oI child?
b) Is there any expiry oI step-up option. By expiry means that will aIter 45 yrs oI age will sum
assured will be increased premium due to step-up option or original premium oI 25 lakhs?
Same inIormation I had contacted with kotak customer care via mail and phone. but did not get
replied since 2 weeks. Most horrible experience was with customer contact number 1800-209-
8800. where I had waited Ior almost 1.30 hrs. but even aIter that also I was not connected to
customer care!!
II this is beIore product sale condition. then what should be aIter product sale?
Reply
468 Manish Chauhan May 2. 2011 at 8:18 am
Sandeep
Bad to know that kind oI bad experience . I can understand how it Ieels on the phone
waiting Ior cc to talk to you . I would suggest talk to some kotak agent oIIline whom you
know .
Manish
Reply
469 Viiayakumar March 29. 2011 at 3:23 pm
Hi Everyone.
Thanks a lot Ior sharing all your valuable experience here. It helped to Iinalize a term insurance plan. I have take a policy Irom Kotak E-
PreIerred. One quick question about the medical test. did any one get a copy oI the medical test results Irom the insurance company? iI I
ask. do they provide? My instinct says they should because aIter all it is my medical test result and nothing is going to stop the insurance
company in sharing this. Please share your experience in this.
Thanks
Viiay
Reply
Viiay
Yes . you can get the medical reports once you get the policy documents in your hand . Ask company to give it to you
Manish
Reply
I have seen that some oI the application Iorms ask Ior inIormation oI existing Term Plans/Mediclaim Plans..Is it necessary to disclose the
same..Why is this inIormation required by the insurance companies..
Regards
Deepak Behera
Reply
Deepak
Yes its important to know Ior companies that how much LiIe insurance you already have in total . so that you dont have much
more than you deserve . You can take 10 crores insurance iI you have 5 lac per annum salary . There has to be a limit .
Thats the reason companies want previous insurance policies inIo
Reply
All the pre existing diseases and Iamily history need to be declared at the time oI enrolling in a Term/Health Policy..Do we need to
mention any disease/illness contracted aIter enrolling Ior a policy or any change in Iamily history during subsequent renewals..Till now no
company has asked me Ior inIormation at the time oI renewal..
Regards
Deepak Behera
Reply
Deepak
No . once you take the term insurance. then you dont need to do anything .
Manish
Reply
Is it applicable Ior Health Insurance Policy as well?
Reply
Deepak
Yes . same applies to Health Insurance as well . See 2nd point in http://www.iagoinvestor.com/2010/10/17-most-
asked-questions-in-health-insurance.html
Manish
Reply
477 Deepak K Nayak March 31. 2011 at 7:53 pm
Dear Manish.
I am 36 years old (DOB 25/6/1975). married with 1 kid. Currently looking Ior a 1 Cr. term plan. I have gone through all the discussions
that has so Iar happened against this particular post & I must acknowledge that it has helped me in my evaluation process immensely.
However I also wanted to share with you some insights based on which I am planning to base my decision as they might not been
explicitly discussed so Iar. Would appreciate yours and other Iellow bloggers to comments / critiques / insights: -
1) Veering around to the view oI going ahead with a private company as against LIC as its premiums are very high (42K vs. ~ 25K).
More over i am not Iorceesing any harassment / delay Irom private insurers as my declarations will be Iactual.
2) Looking Iavourably at HDFC as the company is known to be conservative in its approach (an welcome trait Ior any company dealing
with Iinance). It also happens to be my salary account and I am a preIerred customer. So I have personal banker at my service. So I
expect good service level Irom the personal banker (iI not the insurance company)
3) I think HDFC has become too big a Iinancial institution in India which can very easily be classiIied as 'too big to Iail.
4) I am looking at a tenure oI 25 years even though higher tenure policies are available. because I dont think there is any reason to take a
term policy beyond your retirement age. You are not anyway earning actively and hence your demise will not negetively impact cashIlow
(your Iamily will continue to get retirement beneIits)
Do let me know what you all think oI my musings )
Deepak K Nayak
Reply
Deepak
1. Yes . you can go Ior private insurere. but make sure you trust them . in your case its HDFC
2. Agree
3. Yes . HDFC .ICICI . Kotak . there are some companies which are big enough . but in worst . incase oI some natural disaster .
things can be on extreme end
4. This is straight common sense which you showed here. very rare
Manish
Reply
479 Deepak K Nayak April 1. 2011 at 6:10 pm
Thank you Manish Ior taking time out and replying. WOuld appreciate comments Irom some other Iriends.
Thanks
Deepak K Nayak
Reply
480 Viiay April 1. 2011 at 4:10 pm
Hi.
I was going through Kotak Term policy Policy and Iound that iI critical illness clause is exercised then SA gets reduced upto that level.
So it means .iI i have policy oI 30 lacs and i am claiming Ior 10 lacs(Ior critical illness) then Irom next year my policy will have SA oI
20lacs. II it is the case then HDFC has good policy in which basic cover remains as it is. Please let me know iI this is correct.
Reply
Viiay
can you give me the links
Reply
Sure.. here are those
This is Ior rider oI Kotak:
http://insurance.kotak.com/individual/pdI/KotakRiders.pdI
and For HDFC:
http://www.hdIcliIe.com/sites/HSFCSL/Resources/Products/Downloads/PL-ProtectionPlan.pdI
Reply
483 Manish Chauhan April 4. 2011 at 10:50 am
Viiay
Hmm.. yea . I can see that part in Kotak . The SA will reduce by that amount
Manish
Reply
This one is Ior HDFC term plan:
http://www.hdIcliIe.com/sites/HSFCSL/Resources/Products/Downloads/HDSL200000000020Term20Assurance.pdI
Reply
485 Sandeep Kumar April 6. 2011 at 5:55 pm
Hi.
Also I rider amount in kotak are less as compared to HDFC. e.g.
Kotak ciritical illness (CI) beneIit is max oI 20 L (but 12 diseases) vs HDFC CI is equal to your sum assured
Kotak accidental death (AD) beneIit is max oI 10L vs HDFC AD is equal to your sum assured
Also HDFC has slight more claim settlement ratio (91 vs 87) as compared to Kotak
Source.
http://www.irda.gov.in ~ Annual Reports ~ Annual Report 2009 -10 Download ~ Check Page 105 106
Reply
486 Deepak April 1. 2011 at 10:44 pm
Hi Manish.
I had an existing term policy with a private company. AIter coming across articles regarding reiection oI claims due to
incorrect/insuIIicient inIormation. i decided to revisit my policy document. I was surprised to see that not all Iacts were mentioned in the
document because the agent said that it is not necessary. Also the premiums Ior the existing plans were cheaper in the market. Then i
decided that i would not renew my existing Term Plan and would go Ior a diIIerent plan. Your article did help me a lot and i Iinally
decided upon Kotak PreIerred term plan. Despite the agent telling me to ignore certain things. i was adamant and i made sure that i read
the policy document well and Iilled in the application Iorm to the best oI my knowledge. This makes me believe that most oI the agents
are not honest with their clients. What will happen in cases where the agent has guided the client not to Iill in all the inIormation. Is there a
legal recourse Ior such cases?
Regards
Deepak
Reply
Deepak
At the end oI the day you signed those documents. It means you are responsible Ior what is Iilled in there. So I think the best thing
you could do now is to let your insurance company know about what is missing. iI it does not help . retake the insurance policy.
but deIinately dont leave it idle . as it would mean you are risking with the claim at the end
Manish
Reply
488 Zubair April 7. 2011 at 3:19 pm
Hi manish/dhawal.
II a person go Ior the non-smoker premium. But at later stage oI liIe becomes a smoker.
a)does he needs to inIorm insurance company at that time?
b)what happens to claim iI doesnt inIorm ?
Thanks & Regards
Zubair
Reply
Zubair
No you dont have to update the company about it .
Manish
Reply
490 Rai April 9. 2011 at 1:39 am
Kudos.Manish...Nice article..ended here upon searching on term insurance.
Was eye opener with your Ilow oI inIormation and language.
Well..im 26.planning to take term insurance ..may be Ior 50L.My question is :
1.How does (any percentage)the premium vary incase taking term insurance along with riders?
2.Is it possible as the industry matures with new entrants and new products the premium level will down?
3.As mentinoed n blog replies.iI Y person started X policy with higher premium Iew years back and iI Z person gets same X policy at
reduced premium due to exisiting scenario.what should the Y do .should he quit the policy and switch over to new one or continue with
same?
Reply
Rai
1. You will have to look at the online calculators Ior that .
2. Yes . the mortality rates can do down Iurther . but not a lot . as maiority oI downIall has already happened
3. He should close the policy and see how much will be the new premium iI he takes the same policy again . most oI the time he is
paying as per old mortality rates
Manish
Reply
492 Sunil Date April 9. 2011 at 5:18 pm
I would like to correct the sequence oI action. Manish. II one has a policy and wants to avail another replacement. Ior
whatever reason. then it is always better to close the Iirst policy AFTER the issue oI the replacement policy. One should
never Iorgo cover at any point oI time i.e there should not be a gap between closure oI Iirst policy and issue oI second
policy. Ideal would be to apply Ior the second policy about one and halI months beIore the Iirst policy anniversary. and
always declare that you already have a policy. You or the agent can mention in a separate report that the Iirst policy is to be
closed aIter the second policy is issued. This may be necessary Iact Ior Iinancial underwriting.
Reply
Sunil
Thanks Ior the correction . I know thats the right order . Didnt think to that level while making the comment above
Thanks Ior correcting
Manish
Reply
494 Amol Deshmukh April 13. 2011 at 10:17 am
Hi Manish.
I have Iound this article very very helpIul Ior a person like who is new to this Term plan insurances. I have Iound a lot more discussion on
'DEATH CLAIM SETTLEMENT RATIO.
So I have searched on the IRDA website (http://www.irda.gov.in) and Iound that there are annual reports published with all the details
that are discussed here.
On this link 'http://www.irda.gov.in/ADMINCMS/cms/IrmGeneralNoYearList.aspx?DFAR&mid11.1
there is list oI all last 5-6 years reports.
In report 'Annual report 2009-10. I have Iound the 'Individual Death Claims on page no. 18 in TABLE 12. also the point I.3.21 Ior
Individual Death Claims would be helpIul Ior others.
Regards.
Amol Deshmukh
Reply
Amol
The data used in this article comes Irom those annual reports only
Reply
496 Amol Deshmukh April 13. 2011 at 11:43 am
Manish.
I wanted to say that as 'Dhawal Sharma said there is no DEATH CLAIM SETTLEMENT RATIO mentioned in IRDA
report.
Which is incorrect. as it is mentioned in very much details in table 'INDIVIDUAL DEATH CLAIMS on page 105 & 106
in that report.
Correct me iI I am wrong.
-Amol
Reply
Amol
You are correct. Dhawal was wrong and he accepted that he was wrong in the comment section
Reply
498 J S Dutta April 23. 2011 at 9:09 am
Dear Manish.
I have one 11 lakh TATA AIG Raksha term plan. I want to close it and want to take metliIe online plan with 25 lakh Ior 30 years. I am
30 yr old.
I want to take another plan Ior 10 lakh Irom FUTURE generali. but i want to take this plan with riders.
pse suggest me that riders is necessary or not like adb and ci.
Reply
JS Dutta
There is nothing manadatory to take the riders . it depends on your personal preIerence iI you want those riders or not .
Reply
500 narendra April 23. 2011 at 1:40 pm
Hi.
I am 35 years old have taken 2 years back a BSLI Term Plan Ior 2 cr. tenure is 25 years. The premium Ior the same is about 55k.
which going through your table. I think is Iairly on the higher side. What do you suggest? Shud I stop this and take a new policy. maybe
Kotak PreIerred? II I take a new one. will I have to go through the medical tests and all one again or they will be carried over Irom the
previous plan.
Reply
Narendra
What is your age ? In last 2 yrs the mortality rates have come down . so the premiums should be cheaper now . So it would be
better to re-take the policy
Manish
Reply
502 Thinking May 2. 2011 at 3:55 pm
Hi Manish.
First oI all Iantastic article and even better is that you take the time to answer everyone`s questions
I am a 30 yr old Iemale. married with no kids. We are not interested to have kids in the Iuture as well. Both me and my husband are
salaried individuals. My husband and my parents are well settled and have a regular income and do not depend on us Ior their living
expenses.
a. Do me and my husband need to take liIe insurance?
I am considering a 1 crore Term insurance policy. so is my husband. (According to our income the online calculator suggests we take 3
crore).
b. I already have a term policy with MetliIe oI 20 lacs Ior the last 5 yrs. Should I discontinue that when I take the new policy?
Please help throw some light on the same. Thanks Ior your time.
Reply
503 Manish Chauhan May 2. 2011 at 4:21 pm
Swapna
II you both are well settled and in a good iob . I dont think you are Iinancially dependend . You have to ask yourselI. how
absence oI one going to aIIect another Iinancially ? II one is going to be aIIected . then one has to take liIe insurance else not !
Manish
Reply
504 Ritesh May 6. 2011 at 1:12 pm
Hey Manish.
I am looking Ior a term plan and my Iirst preIerence would be LIC Term Insurance (Jeevan Amulya) however; no rider attached with the
LIC.
Looking Iorward Ior your suggestion.
Reply
505 Vidyadhar May 23. 2011 at 12:35 pm
Hi All.
I gone throw all your discussion and truly it was really well compiled.
I want Term Insurance Policy Ior my Dad (Age 63). Can any one suggest me is this possible to take Term insurance Ior this age? He is
medically Iit.
Please let me know any good plan Ior this above criteria (LIC or Private)?
Also. please let me know any good Term Insurance plan Ior me. my age is 28. Thanks in advance!
Reply
Hi All.
I want Term Insurance Policy Ior my Dad (Age 63). Can anyone suggest me is this possible to take Term insurance Ior this age? He is
medically Iit.
Also. please let me know any good Term Insurance plan Ior me. my age is 28. Thanks in advance!
Reply
Hi All.
medically Iit.
Also. please let me know any good Term Insurance plan Ior me. my age is 28.
I want cover oI 50 lac and Medical upto 10 Lac.
Thanks in advance!
Reply
508 Vid May 23. 2011 at 1:07 pm
Hi All.
medically Iit. I iust want Critical illness claim up to 10 lac Ior him.
Also. please let me know any good Term Insurance plan Ior me. my age is 28. Plan should be like nominee should get amount up to 50
lac and illness cover up to 10 lac.
Thanks in advance!
Reply
509 Rishi May 24. 2011 at 2:43 pm
I am in merchant navy. age 35 yrs. i am still struggling to get correct answers Irom all the insurance companies.
1. I stay out oI India Ior 6 months to maintain the NRI status.
2. II I buy insurance. then will it cover all my sailing period as well?
3. We undergo medical checkups every 6 months beIore ioining the ship. therIore medical checkup is not a problem at all.
Could you please suggest the best insurance company to buy 1 Cr insurance Irom?
Reply
510 Ravi May 25. 2011 at 3:35 pm
Hi Manish.
Its very good article and helps us a lot to understand about the term insurance.
The best is that you take the time to answer everyone`s questions.Thanks.
I have Iew questions while going Ior term insurance.
I am a 29 yr old. married and have one kid (2Years). Both me and my wiIe are salaried individuals. We are having home loan and one oI
ours take home is going Ior that loan.
Me and My wiIe have LIC Jeevan Tarang policy Ior 5lacks each Ior 20 Years.
We have taken HDFC youngstar Ior our kid.
Please let me know whether me and my wiIe need to take term insurance?
So iI.
how much do we need to take?
is it good to take Irom same insurer or diII companies?
Please help me on these. Thanks Ior your time.
Ravi.
Reply
511 zubair May 30. 2011 at 2:33 pm
Hi manish. Aviva has introduce on line product i liIe whose premiums are very low. maybe lowest in this category. But is AVIVA a
trusted name? I mean looking at current company proIile can we say its a 'Lambi race ka ghoda.
Or there are question marks on its Iuture?
Your comments are really important Ior me to choose between ICICI and AVIVA.
Thanks
Zubair
Reply
512 vishal June 13. 2011 at 12:27 am
Hi Zubair.
Did you buy Aviva iLiIe term plan. can you share your experience?
Reply
513 zubair June 13. 2011 at 10:18 am
Hi vishal. I am in the Iinal stage oI buying the plan.Initialy there were some hiccups while Iilling the Iorm as it was not going
Iorward but the customer care were constantly in touch to resolve the issue.
So overall it was a good experience.
Regards
Zubair
Reply
514 DMan May 31. 2011 at 1:13 am
Hi Manish.
This article is quite inIormative and saves the run around oI individually checking Ior each insurance company. iI you are looking Ior
comparisons in a nutshell. Good iob.
I iust want to make one point here. Some posters. including you. have commented that LIC has a high premium compared to other
companies. Agreed. indeed it does. But iI you compare the maximum term that most insurance companies oIIer(between 5-30 years)
and that oI LIC(35 years) and the maximum age upto which you can be insured(upto 70 Ior most companies including LIC) I think the
higher premium is iustiIied to some extent due to the combination oI the term and maximum age. which is among the best available.
Agreed that some people may think a maximum age oI 65 vs 70 may not be a big deal. but I think the chances oI one`s demise may be
higher during those 5 years as compared to the other years that the policy might cover(I am talking about death due to natural causes
here).
I am still in the dilemma oI whether I should split my term insurance between LIC and a private company. or stick with only LIC. I will
make my decision in a Iew days.
Your comments are welcome.
Thanks.
Reply
515 deepak May 31. 2011 at 5:00 pm
whats ur opinion on 35 yr period aviva term plan supposed to be the cheapest?
Reply
Deepak
Yea . it seems to be one oI the cheapest one . try it out Irom internet explorer
Manish
Reply
517 Asthi June 4. 2011 at 10:48 am
Dear Manish.
I read the artical and Iound out it to be very good and useIul.
But still i have a doubt:
II the insurance company ask Ior a medical test and i go Ior it. will the insurance company can provide me a copy oI the medical test to
me?
Because even i want to be sure oI what the medical report is all about.
II suppose they hide some XYZ disease and that becomes the cause oI death and they reIuse to pay the sum assured.
Reply
Asthi
Yes you can get the copy oI medical test iI you go Ior the policy . iust ask Ior it Irom the customer care or your agent (incase oI
oIIline agents)
Manish
Reply
519 Dhawal Sharma June 12. 2011 at 12:24 am
Dear MANISH.
A very interesting development has taken place which i want to raise up in this Iorum as it would help to clear many doubts about the
PRIVATE SECTOR INSURANCE COMPANIES..
IRDA says that ONCE ANY COMPANY HAS STARTED ITS OPERATIONS IN INSURANCE. IT CAN NOT CLOSE DOWN
THE BUSINESS..ALL IT CAN DO IS AQUIRE OR MERGE WITH SOME OTHER COMPANY..
As in the latest development. RIL (Headed by Mr Mukesh Ambani) has buy out BHARTI AXA..
http://economictimes.indiatimes.com/personal-Iinance/insurance/insurance-news/ril-buys-out-bharti-Irom-insurance-ivs-with-
axa/articleshow/8809612.cms
So now what will happend to policy holders oI BHARTI AXA LIFE INSURANCE?? Simple. they will become policyholders oI the
new RIL INSURANCE COMPANY or whatever the name oI this new ioint venture..As also happend a Iew years back. APOLLO
DKV becomes APOLLO MUNICH as JOINT VENTURE partner oI APOLLO changed Irom DKV insurance to MUNICH
insurance..
This is a big point i want to bring to everybody`s notice on our blog that they should buy insurance policy Irom any PRIVATE
COMPANY iI they like the TERMs and CONDITIONs. PREMIUM is pocket Iriendly. and they TRUST the ADVISOR oI that
company..This apprehension should never cross their mind as to what will happen iI this PRIVATE COMPANY (ICICI
PRUDENTIAL/HDFC STANDARD LIFE/KOTAK OLD MUTUAL or any company) will close down in the near Iuture or distant
Iuture?? ANY OF THESE COMPANIES CANNOT CLOSE DOWN THERE INSURANCE BUSINESS..At most will be that their
policies will be shiIted to the new company..
Dhawal Sharma
Reply
Dhawal
Thats a nice update . I will surely do a post on this .
Manish
Reply
521 shashank kashettiwar June 13. 2011 at 11:20 am
Manish.
This interesting development` is not something new at all! This has been always there in the IRDA regulations! I`m in
insurance Iield Ior last 8 yrs and know about this regulation oI IRDA Irom initial days oI agency & have been using this
knowledge to do the obiection handling oI clients regarding continued existence oI private players in the very long run.
I usually add one more scenario to such point iI raised by the prospective client. What could be the worst case possibility-
that again the govt is natinalising the insurance sector. So all these companies would be merged in LIC. But even in that
case the plans will continue to run and all the promises given by the previous company would still be honoured by LIC.
(There were some 250 companies/entities merged in LIC when in 1954 the sector was nationalised. and all the plans.
promises were honoured by LIC. Amazing Ieat indeedI We should be really proud oI the people who were at the helm oI
aIIairs then Ior bringing into existance such a complex merger).
Now iI this is the possible worst case scenario; which is quite happily acceptable to one and all policy holders. why worry
that you are insuring with private players as the government can always step in as they did in 1954; when there was not
even a regulator to approve the products and vet the policies and procedures oI insurance players so closely. as it is being
done today!
The bottom line is- whatever lacunaes an ordinary person can think oI or imagine in the running and existance oI the private
insurers has already been thought oI and a remedy provided Ior by the regulator IRDA-which came into existence beIore
the sector was thrown open to private enterprise!
shashank kashettiwar
Reply
522 Manish Chauhan June 13. 2011 at 11:23 am
Shashank
But a investor is not worried about the case when he is alive . II he dies . he 'assumes that its much tougher to claim
it Irom pvt insurer and thats the main reason he is hesitent with insuring himselI with Pvt companies .
Thanks Ior letting me know that its a old rule and not a new one .
Manish
Reply
523 Dhawal Sharma June 13. 2011 at 11:26 am
the INTERESTING DEVELOPMENT which i was reIerring to was RIL taking over BHARTI AXA
This TERM is quite old and me too use this law to convince my PROSPECTs/CLIENTs to not to worry about the
SECURITY oI the PRIVATE COMPANIES..
..And great to see someone Irom the same breed on JAGOINVESTOR. that too 8 years old..
Reply
524 vishal June 12. 2011 at 3:13 pm
Hi Manish.
Could I request you to write a review about Avicva iLiIe Term plan please.
1)It is the cheapest plan currently available only online. however. some people suggest that because its launced only 3-4 months ago
there is no claim history and should be avoided. But the cheapest premium is tempting. For a person ager 31years. 50 L coverage costs
Rs.4769
2)It does not have any rider. will it work out cheaper to cgo Ior this policy and then go with a seperate policy Ior
AccidentDisabilityetc with other general insurance company OR to go with Kotak ProIerred or ICICI iProtect?
Reply
Vishal
You should go with comments section Iirst to learn more about the subiect. a review on iust one product is not recommended nor
Ieasible .all the products are similar these days . I would say go Ior Aviva or Kotak or ICICI . but make sure you are putting right
inIo in the Iorm .
Manish
Reply
526 Rahul p June 19. 2011 at 3:10 pm
Manish.
Do SBI smart shield is backed by SBI or it is a separate org?iust like LIC is backed by government.i am asking abt stake?or sbi smart
shield is iust like any other pvt company.plz give your opinion abt sbi smart shield.
Reply
Rahul
SBI Smart shield is oIIered by SBI LiIe Insurance company which is a ioint venture between State Bank oI India and BNP
Paribas Assurance oI France. Note that its a PVT company and not a govt company . SBI iust has some stake in it .
But you should not worry on that . go ahead with the policy .
Manish
Reply
528 Rahul P June 22. 2011 at 10:53 pm
(manish:thanks.Ior advice on SBI smart shield.recently i have heard one case in which settlement oI a term plan oI a
person was reiected bcoz he was having insurance oI other companies also and in this case court also given verdict in Iavor
oI insurance co.this is iust a small abstract oI the story.my question is DO THIS CAN HAPPEN TO ANYONE? and iI
yes then what precautions one should take beIore buying term insurance.
Reply
Rahul
No . the case which you are mentioniong .it might happen that the person didnt reveal this Iact and hence his claim
was reiected .
Manish
Reply
530 Rocky June 21. 2011 at 11:13 pm
Hi Manish.
First oI all. Thanks Ior loads oI inIormation sharing on this thread.
Its quite inIormative and helpIul especially Ior people new to Term plans like me.
I am 30 yrs now and planning to buy a term plan/plans ( with SA worth 1 cr ).
I researched on a Iew websites and a bit conIused.
BeIore reading this article. i was planning to go with a single service provided but i guess its recommened to go with 2 (50:50). Am i
correct?
I Iound Aviva iTerm plan quite tempting due to low premium.
Can you suggest some options Ior me?
Thanks and Regards.
Rocky
Reply
Rocky
Yes . Aviva is good option . also consider Kotak . ICICI
Manish
Reply
532 Rocky June 23. 2011 at 1:17 pm
Hi Manish.
One query.
II someone has 2 term plans Irom 2 diIIerent companies then in case oI ones death both can be claimed. right?
I came across comments Irom someone saying that 2nd comapany reIused the claim on the grounds that they have also insured with
other Iirm also.
Thanks and Regards.
Rocky
Reply
Rocky ..
No thats not true . You can claim Irom other companies also .
Manish
Reply
534 Ashok July 4. 2011 at 3:14 pm
Hi Manish.
I think its possible they will not help with claimed amount. iI you have not inIormed to them on the time oI taking the policie.
you are already holding any term plan.
Regards.
Ashok
Reply
Ashok
Yes. iI you dont disclose the Iacts completely . then its right that they dont honour your claim
Manish
Reply
536 Jawaid June 29. 2011 at 10:30 pm
Dear Mr Dhawal Sharma.
In LIC proposer has to mention his income and SA limit is as under
upto 30 years oI age maximum SA is 22 times oI the average annual income
31 to 40 years oI age 17 times oI the average annual incone
41 to 50 years oI age 12 times oI the average annual income
51 and above 10 times oI the average annual income
One Important thing is SA oI LIC Term Plan has Sovereign Guaranty ( iI LIC couldnt pay due to insolvancy SA will be paid Irom Sarkai
Khazana)
Reply
537 Sumeet K June 30. 2011 at 1:54 pm
Hello Manish.
There are cases where people have diIIerent birth dates than actual in certiIicates. passports etc. Parents use to do that to make kids ioin
school earlier. So in that case I believe only prooI oI date that one has is the one on certiIicates. but that will be diIIerent than biological
age.
I need to understand does it aIIect claims process at later stage. pls advice
Reply
Sumeet
I think the birth dates on oIIicial documents will be take as the source oI prooI
Manish
Reply
539 vishal July 1. 2011 at 1:47 pm
Hi Manish.
This is an excellent platIorm. however. not so easy to read on.
II possible could something be done so that the latest post comes at the bottom.
Means earliest to recent ones.
Vishal
Reply
Vishal
Go to archives section : http://www.iagoinvestor.com/archives . it has all the articles till date . read Irom bottom to up
Manish
Reply
541 mukesh July 3. 2011 at 11:19 am
http://www.moneyliIe.in/article/online-term-plans/17600.html
Reply
542 Ashok July 4. 2011 at 3:09 pm
Hi Manish.
Many thanks Ior providing that level oI details.
I am looking Ior term plan oI 50K riders. but getting conIused in that many planyer in pvt. sector. I also want to go through agent as I
don`t want any trouble Ior my Iamily in Iuture.
Could you please help me. which one is better iI I make sure everything is entered in Customer Iorm properly or Do i need to go only
through LIC.
iI you don`t mind can you tell me iI you need to buy any term plan what would be your preIerence.
Regards.
Ashok
Reply
Ashok
You should be Iilling the Iorm yourselI . not expect some one else to Iill 'properly Ior you . You can go with LIC a pvt insurer
Manish
Reply
544 MPG NAMBIAR July 8. 2011 at 8:56 am
MAD PLATINUM PROTECT PERSONAL ACCIDENT BENEFIT RIDER (PAB) IS AVAILABLE. THIS IS MAX UPTO
RS. 40 LACS EVEN IF SUM ASSURED IS ABOVE IT. AND WHEN IT IS BELOW PAB WILL ALSO BE LOW. THEY ARE
ALSO COVERING 10 MAJOR DREADED DIESES AS RIDER FOR PLATINUM PROTECT.
THANKS
NAMBIAR
Reply
545 Bhavesh July 8. 2011 at 5:58 pm
Dear sir.
Any one give me to advise Ior term insurance
i am 37 year old. as per web site oI diIIrant co` my premium Ior 25 lacs Ior 28 yaer is HDFC liIe is Rs 11830 & Kotak preIered Rs
7664 & kotak term is rs 9270. which plany i have to take.i am a not a tobacco user. Pl. advise me.
Reply
Bhavesh
You can go with Kotak . I would suggest take a high worth plan like 50 lacs cover .the premium would be almost same .
Manish
Reply
547 Dan July 11. 2011 at 3:15 pm
Dear Manish.
All comments and inIormation here are excellent.
I would like to clariIy the Iollwoing:
1) I am an NRI. what sort oI income prooI will be required Ior term insurance?
2) II I have a doubt in Iilling the application Iorm. how can I clariIy the same? (the agent may be pushing us to Iill the Iorm Ior his beniIt)
3) I I take 2 or 3 term insurances at the same time. how can I disclose the details one another in the application Iorm?
4) do we have to update our health status once the policy has commenced?
5) will they increase the premium once the policy has commenced and later the insured has been diagonised with some illness?? (which
did not prevail at the time oI application).
Thanks.
Dan
Reply
Dan
1. You need to provide income prooI in India and residentail prooI . this depends Irom company to company .
2. Dont let your agent Iill it at all . Iill it yourselI . no matter what
3. You only have to declare about the policies which are 'in Iorce . II you take 2-3 parallal policy . then you only need to tell
them iI there is any coloumn Ior that \
4. No
5. No
Reply
549 Dan July 11. 2011 at 4:08 pm
I think since LIC is not considering the health status oI the applicant. one should easily get insured with LIC irrespective oI the health
status.i mean medical report..or does LIC reiect proposal based on medical reports?
Thanks.
Dan
Reply
Dan
Why do you think it does not look at health ?
Manish
Reply
551 Dan July 14. 2011 at 9:15 am
(Manish. LIC premiums I thought was high due to the Iact that they do not diIIerentiate between healthy individuals and
unhealthly one.and hence they charge more Ior all or lets say higher premium Ior all. Pvt companies have good rates Ior
healthy nonsmokers..!
Reply
Dan
There is nothing like that . II the amount oI insurance taken is high with any policy . the medical is done . The main
reaason Ior those policy charging high is that they will give back the money on maturity .
Manish
Reply
553 Dan July 17. 2011 at 9:58 am
Manish. does that mean that other companies charging low rates will not pay you back on maturity?? I have
also seen that Insurance is not questionable aIter completion oI two years!whats your go?
Reply
Term insurance does not pay you anything back on maturity . because its only charging Ior your saIety .
the point oI 'Insurance is not questionable aIter completion oI two years is highly misunderstood . That
clause is only Ior small points which can not Iorm a basis Ior reIusal oI claim . but material Iacts like
health related inIormation does not come under that 2 yr clause .
Manish
Reply
555 Viiay July 13. 2011 at 10:24 pm
Hi Manish .
Nice post by you its really inIormational and helpIul in picking the right policy.
I am 26 yrs old and i have taken LIC Term policy last year Ior myselI and i Ieel it the saIe even iI i endup paying more bugs..
AIter reading all kinds oI scenarios i got a diIIerent scenario Ior you.
Suppose iI a person takes an term policy and aIter an year iI he is diagnoised with Cancer then what would happen in his case..
Reply
Viiay
Nothing . you dont get unless you die .. you live with it . whenever you die .you will get the money . But Its very rare that within
the 1 yr itselI someone gets cancer . it would have got detected in medicals with all probability .
Manish
Reply
557 Ganesh July 15. 2011 at 10:07 am
Hi Manish.
I wish to goin Ior Aviva i-liIe term policy Ior 1.25 crores. due to 'low premium. I will endeavour to give Iull true Iacts to them so that
they can`t have any reiection oI claim howsoever deeply they investigate.
but it does not provide any oI the 4 riders.
can you suggest the best low term policy Ior 1.25 crores Ior 34 yr old male (married/non-smoker) with good riders.
can these riders be availed with health insurance in that case i need not worry about these riders.
(i plan to get both term or health insurance soon)
pls suggest on this blog so that others also can beneIit with your reply.
rgds.
ganesh
Reply
Ganesh
You can look at this article Ior rider inIormation : http://www.iagoinvestor.com/2010/12/term-insurance-plans-comparisions-
india.html
Manish
Reply
559 Asthi July 15. 2011 at 3:41 pm
Dear Manish.
I have a doubt realted with one oI the condition mentioned in kotak document.
Kotak e-Term/e-PreIerred Term: Terms and Conditions
1. Death BeneIit:
The death beneIit payable would be Sum Assured less the balance oI the premium (iI any) payable in the year oI death.
I am not very sure about this condition. Does it means that iI i have a term insurance Ior a term oI 25 years with a permium oI say 4000
and i die on the 20th year so they will deduct the total amount payable sum assured (6 * 4000). Where 6 is the number oI remaining
years oI premium payment.
Reply
Asthi
Yes .. thats true ..
Manish
Reply
561 Swapnil July 15. 2011 at 5:13 pm
Hello.
I am 29 years old and I want to buy a Term Insurance Ior 30-40L. While going through Iew sites iust Ior comparison I looked on
PolicyBazzar Ior the comparison. I got a call Irom PolicyBazzar Customer Service Executive. He suggested me to go Ior Online Term
Insurance as those are little bit cheaper compared to other oIIline plans (imp: policy premium is not a main criteria Ior me) as there will be
no brokerage Ior any agent. In Online policies also he suggested me to go Ior Aegon Religare i-term plan which is a online term plan
which has a main point that 'Covers all Iorms oI death. even terrorist attacks. this line is written on the company website
'http://buyonline.aegonreligare.com/iTerm-plan.asp.
Currently I am little bit conIused should I go Ior Online or OIIline Term plan. And also oI which company plan should I take.
I also discussed about this with Baiai Capital Executive. As per him I should go Ior OIIline Term plan.
Please suggest me as early as possible.
Can you please suggest me should I go Ior Online Term plan or OIIline Term plan and oI which company. As there is no premium
amount criteria.
Reply
Swapnil
In that case you go with LIC term plan which is a oIIine term plan . seems like Ior you the main criteria is the brand and trust
Manish
Reply
563 Swapnil July 18. 2011 at 5:35 pm
Hi Manish.
Thanks Ior the reply. Can you please tell me which is the best online term plan currently and having good Ieedback.
Reply
Swapnil
There is nothing like hte 'best policy: . there are people having bad and good experience with each company . But
you can consider Kotak. ICICI or LIC
Manish
Reply
565 Raiu July 18. 2011 at 7:25 pm
Manish.
Appreciate your eIIorts to compile needed inIo.
Could you publish updated ( as oI iuly 2011) table comparing diIIerent term plans?
At my age 39. i am looking at term plan Ior 1 crore AD DR CI. Should i choose this option or do things diIIerently.
thanks
Reply
Raiu
For now you will have to use the same table . I will update it soon as I get time .
Manish
Reply
567 Karthikraia July 25. 2011 at 10:09 pm
Hi
Finally i took policy Irom Aegon ( 50L . 25 Years). their at home medical check and customer care is excellent. i yet to receive my
policy kit.
Thanks Ior your guidance and excellent write ups.Please guide all novice investor like me.
Reply
568 Manish Chauhan July 26. 2011 at 10:56 am
Karthik
Good ot hear that . Keep it up
Manish
Reply
569 Rosh July 26. 2011 at 2:47 pm
Manish
What is your thought about aviva liIe shield Advantage ?
Please comment.
Reply
Rosh
Look at this : http://www.iagoinvestor.com/Iorum/aviva-liIeshield-advantage-term-plan-need-review/1766/
Manish
Reply
571 Aiit July 26. 2011 at 5:03 pm
What is more important during purchae oI Term Plan Long Duration or Good Riders? In the sense. what one should opt Ior Policy Ior
35 years with no riders or Policy Ior 30 years with 2/3 riders?
Reply
Aiit
Both oI them are independent oI each other . .You choose duration based on how many more years will you work . you choose
riders depending on what all risks you want to cover
Manish
Reply
573 Nikhil July 27. 2011 at 4:16 pm
Hi Manish.
KUDOS Ior the good work oI enhancing everyone`s knowledge.
I have a query. I took LIC Amulya Jeevan policy two years back. I took a scanned copy oI all papers that the agent Iilled and I signed. I
was going through them last week and observed that there were details oI my Iamily Iather mother . number oI brothers/sisters etc.
I observed that in Sisters column only one sister is mentioned. Actually I have two sisters. though one is living with my uncle since
childhood. But legally she is my sister. So legally I should have mentioned TWO SISTERS. But the Iorm submitted with LIC has online
ONE.
Will this lead to reiection oI claim in Iuture.
Is there a way to get this corrected/rectiIied.
I asked the agent but he says it wont create any problem; but I am worried
Regards.
Nikhil
Reply
574 Manish Chauhan July 29. 2011 at 11:52 am
NiKhil
This is not a material inIormation (inIo which can aIIect the premium) . But still see how it can be updateds . you can talk to
customer care Ior htis . This should not aIIect your claims
Manish
Reply
575 sakshi iuneia July 30. 2011 at 1:21 pm
i`ve got ulip plans oI lic like market plus.Iuture plus.money plus. my lock in period has completed oI al these. should i continue with these
or withdraw? also i want to buy a term plan.so which one should i buy-kotak preIIered or lic?
Reply
576 sakshi iuneia July 30. 2011 at 1:21 pm
i`ve got ulip plans oI lic like market plus.Iuture plus.money plus. my lock in period has completed oI al these. should i continue with these
or withdraw? also i want to buy a term plan.so which one should i buy-kotak preIIered or lic?
Reply
577 sudhanshu badola July 31. 2011 at 11:00 am
Hi Manish.
Thanks Ior the valuable inIormation. Can you please update the claim ratio data. premium amount once again Ior the beneIit oI all.
My age is 28 years. I am single and parents are not dependent on me. They don`t have any debt also. I don`t smoke and dont have any
illness.
I have one endowment policy ( ieevan anand Irom LIC ) and one pension plan Irom ICICI prudential. I do make some investment in
PPF also .
I am looking Ior an term plan with a coverage oI 1 crore ( AD CI DR components included).
Can you please suggest me any good term plan with better clam ratio?
What will be your advise oI going Ior 2 policies with 50-50 lakh cover?
Looking Ior your advise.
Thanks and Regards
sudhanshu badola
Reply
578 Manish Chauhan August 1. 2011 at 8:25 pm
Sudhanshu
Take any Irom Kotak . aviva or metliIe .. iI you want highest claim ratio . then go Ior LIC
Manish
Reply
579 Suresh August 2. 2011 at 11:44 am
Hello Manish.
i am 30 years old and i have taken term policy Irom LIC Ior 25L two years back. Now I am planning to take one more term policy Ior
20L or 25 Lacs.
Could you suggest which one should i go Ior LIC or pvt insurance. iI private . which one is better ?
Reply
Jig
I dont think its true that you cant take policy again Irom a company iI you cancelled one . Why do you say so ?
Manish
Reply
Hello Manish.
I got the reply Irom company and i share here to know wether it should be like this? That was the reason i asked directly Dhaval as it is
regarding KOTAK.
regards
Jig
Reply
Sohil
Not all . only kotak epreIIered and AR provides it
Manish
Reply
583 Deepak March 27. 2011 at 12:04 pm
Thanks Ior the quick response..You have provided excellent inIormation Ior comparison oI term plans..I am also looking Ior such kind oI
inIormation Ior standalone critical illness plans..The inIo that i am looking Ior is
a)Incase i am not taking a term/liIe insurance plan and i need a critical illness policy ..is it better to take a standalone critical illness plan or
a Health plan with critical illness rider?
b) Is it better to take a standalone critical illness plan Irom a LiIe Insurance Company or General Insurance company Ior ex HDFC LiIe
vs HDFC Ergo..Inputs will be appreciated.
Reply
584 Dhawal Sharma January 5. 2011 at 4:12 pm
(JIG Sorry. didn`t read your query earlier..Can you please put it one more time..
Reply
Hello Dhaval.
i am doing copy paste oI reply Irom KOTAK.. i havent any prob with this reply but it sounds strange so iust needed your two words on
this.
'Sir currently we would not be able to provide you the medical documents as you have cancelled the policy with us .( THIS I CAN
UNDERSTAND)
Sir currently you would not be able to avail either the e- term plan or the normal term plan through us. due to the cancellation ( HOW IT
SOUNDS LIKE?).
regards
Jignesh
Reply
586 Nitin Agarwal March 19. 2011 at 1:32 pm
Hi Manish.
My cousin (Age 40) is interested in Term Insurance oI Rs 5 Crore. Online I Iound that premium (including taxes) oI ICICI iProtect is Rs
1.11.955/- and MetliIe MetProtect Rs 1.67.892/-. I know both policies are to be pruchased Online and there might be delay in
receiving it. I`m asking him to go with ICICI iProtect as it is cheapest. II you can please advice whether it`s right decision or there is any
better policy. Also his annual income (ITR Iiled) is around Rs 6 Lacs but he has assets worth Rs 1 Crore. So Ior income prooI does
Insurance company also consider assets?; iI yes then what are the documents required Ior the same.
Reply
Nitin
I think there will be issue with him getting 5 crore oI insurance . companies have some internal rule oI limits . II your Iriend income is 6
lacs . the company might restrict the limit oI insurance to 20 times or 25 times (depends on them) . So 1.0 crores or 1.5 crore looks a
resonable insuance Ior him .
Manish
Reply
588 Sunil Date March 19. 2011 at 3:55 pm
II he already has assets why does he require insurance ? Insurance is Ior protecting Iuture income Ior dependents. He has to be using his
knowledge and skills to earn an income which will be lost in an unIortunate event; that is the income which has to be covered. The one
crore assets will still remain Ior his Dependants.
Reply
589 Nitin Agarwal March 21. 2011 at 12:04 pm
Sunil.
Your point is valid but he needs insurance oI 5 Crore & he has assets only oI 1 Crore.
Manish.
I`m surprised that assets are not considered by Insurance company while deciding Sum Assured
Reply
590 MPG NAMBIAR July 8. 2011 at 9:14 am
asset and insurance are two diIIerent things. so argument that iI asset is there why insurance required is incorrect. eligibility oI higher sum
assured (inclouding the need) should be checked. AML guidelines will come into picture.
thanks
nambiar
Reply
Nitin
II you see any term plan online website . they only ask you about 'Income level . never they ask you about your assets .
Reply
(MANISH/NITIN AGGARWAL I can say with authority about KOTAK LIFE INSURANCE and not every insurance company
but i hope this will hold true in most oI the cases..
In KLI iI someone is going Ior a big SUM ASSURED. The client is required to Iill two seperate Iorms along with the proposal
Iorm..One is FINANCIAL QUESTIONNAIRE Iorm and second one is MEDICAL ADDENDUM Iorm..In FINANCIAL
QUESTIONNAIRE Iorm. client is requested to disclose his ASSETS and LIABILITIES to ascertain his NETWORTH..ASSET side
asks Ior BANK BALANCE. FD/RDs. VEHICLE BY HIS NAME. PROPERTY BY HIS NAME. SHARES. MFs. INSURANCE.
GOLD etc and LIABILIATY side asks Ior LOAN (PERSONAL. BUSINESS. PROPERTY). VEHICLE LOAN etc..So yes.
valuation oI ASSETS and LIABILITIES are also taken into consideration Ior deciding upon NETWORTH oI an INDIVIDIUAL Ior
HIGH SUM ASSURED TERM PLANs..
Please note. i am telling this Ior KLI and not sure about other insurance companies but i believe more or less. they too will be Iollowing
this procedure..
Dhawal Sharma
Reply
Dhawal
Ok . I didnt knew this actually . But I think this will happen only incase oI high sum assured .
Manish
Reply
Deepak
Name
Email
You can go Ior a stand alone Critical Illness policy . you can go with a general insurance company as oI now
Manish
Reply
Deepak
You can get all your answers Irom this article : http://www.iagoinvestor.com/2010/10/17-most-asked-questions-in-health-insurance.html
Reply
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