[Shankyz]

hmmm, no reply by anyone so far !!!

Does it indicate lack of interest or no one has any idea about it? Considering the knowledge spread around various posts on T-BHP about Term insurance, I'm sure a sizeable population has chosen it already, so can these people share their experiences so far and any inputs for prospective buyers would be very helpful too.

Thanks in advance

[Technocrat]

Well unless you post the difference it would be difficult to answer.

Typically LIC is a bit on Higher side when it comes to premiums. The private firms are usually cheaper. You get peace of mind with LIC as its the oldest player. Others are new & hence lure with cheaper premiums & in some case even claim to give insurance without a medical check up.

Before making a final decision do read the fine print. One important aspect to consider while going for Term plan is to check if they have cover for disability or not.

Hope this helps

[ubsmart]

It is always advisable to stick with LIC for term insurance as a typical term plan is at least 15 years long and we cannot anticipate the turn of events in today’s global economy which can make the fortunes of private players either turn good or bad. Since we are paying for peace of mind and not for returns, why don’t we pay a little more for a real peace of mind rather than a virtual one?

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[zen91]

Originally Posted by Shankyz

ok, so the best insurance in term insurance but from which provider ? LIC only? While comparing for term insurance on apnainsurance.com, I see several providers offering same coverage but the premium to be paid differs vastly. any insights into why it's like this ? is there a catch that I'm missing?

Thanks in advance

All insurance companies are governed by a regulator called IRDA and have almost similar policy on products and services provided by them.

The difference in the premiums is because of the different mortality charges /administrative charges levied by different companies, however this again should not be too vast a difference.

Always ask for an illustration of the product to get the exact details of the charges.

Check if any any riders have been attached to any policy.

[Rocky_Balboa]

Guys,

Any feedback about Birla Sun Life's Dream Plan?
I am planning for a long term and the following offerings from the policy seem attractive.
a) My choice of Basic Sum Assured and Enhanced Sum Assured.
b) Return of sum assured plus enhanced sum assured - incase of Death.

My need - to invest for about 20 years and have a guaranteed returns for my kid's schooling/other needs.

Advice please.

[ashthedivx]

I believe Term policy is as good as liability cover and safe guarding only as you won't get any thing in return when the policy term is matured. For Investment purpose you should looks at PPF and FDs.

[zen91]

Originally Posted by Rocky_Balboa

Guys,

Any feedback about Birla Sun Life's Dream Plan?
I am planning for a long term and the following offerings from the policy seem attractive.
a) My choice of Basic Sum Assured and Enhanced Sum Assured.
b) Return of sum assured plus enhanced sum assured - incase of Death.

My need - to invest for about 20 years and have a guaranteed returns for my kid's schooling/other needs.

Advice please.

Any investments in the Capital market with a long term prespective will give you good returns. Since you wish to invest for a period of 20 years, you should be safe and expect 15 to 20% returns. Incase the funds have been managed well because of the switching option available in Insurance products, you can expect more.

There are some products which guarantee the principle that you pay, however in your case since the tenure is long, you need not worry on the guarantee part.

Look at the options that the product is offering and incase the product offers higher of the two i.e Sum Assured or Fund Value, go for it.

Look at the charges deducted for the premium you are paying and always ask for a benefit illustration before signing on the dotted lines.

[NetfreakBombay]

Originally Posted by Rocky_Balboa

Any feedback about Birla Sun Life's Dream Plan?

It is not a good plan from investment point of view.

Birls Sun Life would charge you approx 5 - 10 lakh Rs more then a comparable investment on Mutual fund. That is over 20 years.

Ad they guaranty just 3% growth rate for your funds.

Thats too low for such high charges.

Originally Posted by Rocky_Balboa

My need - to invest for about 20 years and have a guaranteed returns for my kid's schooling/other needs.

Talk to a certified financial adviser who is not a insurance salesman.

What you need is:

1. Term insurance plan to help your family in case of some unfortunate event
2. a SIP that would invest some amount "every month" for a period of 20 years.
3. Investment in PPF/RD/FD

An adviser should be able to help you with

1. Allocation of money in Mutual funds and other Fixed returns (Like FD/RD/PPF)
2. Selection of Mutual funds that are broad based and are not tied to a perticular sector

[ashthedivx]

Hey team,

What is you opinion regarding the single premium term insurance. While calculating the intial difference between yearly premium and single premium, it turned around to be a very good saving in terms of money paid to insurance company.

For ex.



Does paying premium in one shot is good for longevity of policy, as you are somehow bound to the company ??

[NetfreakBombay]

Consider 10% returns that you would get if you put this money in safe investments like FD.

[muralisk]

Originally Posted by ashthedivx

Does paying premium in one shot is good for longevity of policy, as you are somehow bound to the company ??

Not advised to pay for insurance well in advance as there are many parameters that determine whether you need one or not based on certain events that might happen down the line.

Hence, if you have a need to get an insurance (need to analyze this with a proper financial advisor), then get the cheapest possible term plan and it is best advised to pay yearly.

[ashthedivx]

Got your point guys...

Now my consideration is to break up total term insurance into two parts and continue both of them simaltantouly so as i can close one of them whenever required.

For the same I am following HDFC and LIC
> LIC for long term i.e. 35 Years span
> HDFC for semi-long term i.e. 20 Years span


Am in on the right track ??

OT: Anyone providing Accidental Death Coverage as well ??

[muralisk]

Originally Posted by ashthedivx

Got your point guys...

Now my consideration is to break up total term insurance into two parts and continue both of them simaltantouly so as i can close one of them whenever required.

For the same I am following HDFC and LIC
> LIC for long term i.e. 35 Years span
> HDFC for semi-long term i.e. 20 Years span

Am in on the right track ??

OT: Anyone providing Accidental Death Coverage as well ??

I am confused here. Why would you want to break up and have two term plans - one for long term and one for short term. Ideally, it would make sense to get one for the longest period that the insurance company can offer. Having said this, you might have to review this once in 5 or 10 years and then buy it another to cover up additional requirement.

As far as I know, most insurance companies do allow you to buy various riders and accidental death coverage is one among them.

[The Wolf]

My dad is a LIC insurance guy, and not coz he is but he always says interms of pure customer benefit and no gimmicks go for LIC. If any tbhpian has a query pls pm me, I'l get answers from my dad and respond.

This service is free of cost for the tbhpians

[ashthedivx]

Originally Posted by muralisk

I am confused here. Why would you want to break up and have two term plans - one for long term and one for short term. Ideally, it would make sense to get one for the longest period that the insurance company can offer. Having said this, you might have to review this once in 5 or 10 years and then buy it another to cover up additional requirement.

As far as I know, most insurance companies do allow you to buy various riders and accidental death coverage is one among them.

Well, two logical reason for break-up

a) Most of my responsibility will be over till age of 50, there after i can enjoy a single policy with lower premium. I need not to carry the big policy every year after 50 with me which will be a wastage of money. One may argue, that I can discontinue the big policy at 50 and opt for a single small policy but the premium will be surely higher then current one considering my age at that time i.e. 50 Yrs.

b) One should not bet on a single horse all the time. At times if LIC fails or HDFC fails to pay, due to any particular reason, hope will be there to have atleast 50% recovery from another insurer.

Originally Posted by The Wolf

My dad is a LIC insurance guy, and not coz he is but he always says interms of pure customer benefit and no gimmicks go for LIC. If any tbhpian has a query pls pm me, I'l get answers from my dad and respond.

This service is free of cost for the tbhpians

Thanks, Can you confirm if Accidental benefit is available in Amulaya Jeewan ?? I.e. Insured amount will be paid even death is caused due to an accident.