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Old 2nd February 2017, 22:21   #376
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Default Re: Best Life Insurance provider

@shipnil @hothatchaway thanks for the replies. The desperation was because I was comparing term insurance policies yesterday on a new whim and today I got a call saying if I do not purchase today the premium will increase. Gullible as I am, I made this post. Thanks for your answers, I am not going to purchase anything right now.
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Old 3rd February 2017, 14:53   #377
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Originally Posted by diyguy View Post
. You can ignore their existing base cover insurance and only claim under yours for any unfortunate expenses that do come up.
Unfortunately, I cannot just take just the top cover for my parents through my Er's service provider. They insist that I need to take the base cover as well and only then can I take the top up coverage as well.
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Old 26th February 2017, 20:50   #378
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I am thinking of buying an additional term policy of 1 cr sum assured cover for 25 years, and HDFC life Click2Protect Plus costs ~ 20k, while LIC e-term cost ~ 31k (41 years non-smoker in decent health).

Insurance Gurus, need your advice on whether or not HDFC Life is a good option for a term insurance policy, w.r.t claim settlement ratio, speed of disbursal etc. Or should I stick to the evergreen LIC?

Cheers,
Vikram
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Old 26th February 2017, 22:43   #379
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Originally Posted by bluevolt View Post
Please suggest me some good term and endowment policy providers & plans.

LIC is bit expensive with not so great returns with its endowment plans. Also is the interest earned through insurance policy taxable?
The first and last rule of investment-Keep life insurance for insurance needs and invest in MF and NPS for returns. Always remember that all endowment plan comes with mortality charges and other policy administration charges, resulting in reduced returns.

If you need tax saving, then please opt for ELSS or NPS. Trust me this is coming from a banker. Your term cover should be minimum eight times of your gross annual salary. Good term insurers are IDBI Federal, HDFC Standard and Bharti AXA.

Based on your age profile do invest in long term equity funds and some mid chip funds. Today's mid chip will be tomorrow's blue chip.

Happy investing.
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Old 27th February 2017, 22:48   #380
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Default Re: Best Life Insurance provider

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Originally Posted by comfortablynumb View Post
I am thinking of buying an additional term policy of 1 cr sum assured cover for 25 years, and HDFC life Click2Protect Plus costs ~ 20k, while LIC e-term cost ~ 31k (41 years non-smoker in decent health).

Insurance Gurus, need your advice on whether or not HDFC Life is a good option for a term insurance policy, w.r.t claim settlement ratio, speed of disbursal etc. Or should I stick to the evergreen LIC?

Cheers,
Vikram
While not a guru, I can attempt to answer your questions basis my experience with these products. While we may agonize over settlement ratios, please understand this - life is a highly regulated segment in the insurance business and once a policy has been issued, it is very difficult to deny a claim and once 3 years have elapsed after a policy has been issued, a claim CANNOT be rejected on any grounds whatsoever, even if the applicant had misrepresented information at the time of application - http://www.livemint.com/Politics/Lk8...over-3-ye.html

In light of the above, it should be a no brainer to choose between the two options you have listed above, I mean, do you really want to pay more than 50% extra premium? However, be advised that the rates quoted online can change post your medicals which at our age (35+) can throw up minor surprises. Insurers like HDFC are notorious for jacking up premiums on the pretext of the slightest of health scares.

Also, do take the maximum possible tenure, since you already seem to have an existing policy, you can always discontinue one or even both depending on your requirement at an advanced age. After all, one only need to stop writing cheques to discontinue the policy, but you would not be able to get/extend a policy later should there be a need to. The premium will slightly increase though. Getting a premium waiver rider on diagnosis of listed critical ailments is also a good bet. Do not get overwhelmed by the riders on offer though, there is only so much risk that you can mitigate for the amount that you are willing/afford to pay as premium.

Last edited by hothatchaway : 27th February 2017 at 22:49. Reason: typo
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Old 28th February 2017, 09:19   #381
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While not a guru, I can attempt to answer your questions basis my experience with these products..
hothatchaway, thanks a lot for your reply & advice!

After I wrote my post, I also checked out ICICI Prudential's term plan, and that is cheaper than even HDFC, for a sum assured of 1 crore (plain vanilla, no riders at all). So most likely, will be opting for that.

Thanks again

Cheers,
Vikram
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