Term insurance - Buy and Queries?

I want to buy term plan for myself and wife. We both are 26 years old, non-smoker and wish to have sum assured of 50-60 lakhs. Please suggest a suitable plan
a) I will give more preference to claim settlement ratio if compared to cost
b) Prefer to have Accidental Rider as I stay in metro city
c) Prefer policy term for 30 years

I have checked term plan's on net and need your feedback on:
a) Either ICICI i-Protect with Accidental rider or Kotak e-Preferred for 30 lakhs/30 years
b) LIC Amulya Jevan for 25 lakhs/30 years

Many thanks in advance for your time and sharing your knowlege. :eek:

Some of my observations about the plan mentioned by you -
1- Kotak Life e-term offers flexibility to Step-up and Step-down (increase or decrease of sum insured) your insurance cover in future (no need to buy new insurance policy).
2- Kotak e- term and LIC Amulya Jeevan - you can pay premium monthly/quarterly/half yearly/yearly mode in others only yearly mode. But ensure that you select annual premium payment option instead of monthly/quarterly/half yearly payment, it will save your premium outgo.
3- ICICI Prudential Life Insurance iProtect also provides you option to buy ‘Accidental Death Benefit’ Rider on payment of additional premium. This accidental cover - only cover, death due to accident. So better in addition to this go for general insurance PA cover from other companies like IFFCO-TOKIO, ICICI Lombard, HDFC Ergo, New India, National etc., which will also cover you for Permanent and Temporary disability benefits.

Kotak Life e-term and ICICI Prudential Life Insurance iProtect – both are new policies and so it’s not possible to judge their claim ratio in such a short span. LIC is there for long so we have full statistics available.

Always disclose correct income, health issues and other insurance policy related details in the proposal form.

You may also check - Met Life's Met Protect - where Maximum policy term - 35 years, as you have mentioned, your age is 26 years and going for 30 years, you would be without cover at 56. I would go for insurance cover till 60-65 years.

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Originally Posted by PolicyWala

You may also check - Met Life's Met Protect - where Maximum policy term - 35 years, as you have mentioned, your age is 26 years and going for 30 years, you would be without cover at 56. I would go for insurance cover till 60-65 years.

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Thanks for sharing your knowledge.
Agreed to your point that Met Life's Met Protect can add further advantage if compared to kotak or ICICI online product, if looked at cost (Women premium is less as compared) and term (of 35 yrs).
But how much you rate on claim settlement ratio if compared with Kotak, ICICI and Met life?

Also, I have LIC and its maximum term is 30 years so should I,
a) But new plan at 55 which will should be too costly at that time
b) Again buy new/fresh plan at age of 30-35

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But how much you rate on claim settlement ratio if compared with Kotak, ICICI and Met life?

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Check here -
www.irda.gov.in > Annual Reports > Annual Report 2009 -10 Download > Check Page 105 - 106

LIC Amulya Jeevan is good. Why don't you go for Jeevan Anand where you get life time coverage. On maturity you get the sum assured plus bonus. But insurance cover continues lifelong.

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Originally Posted by venkat

LIC Amulya Jeevan is good. Why don't you go for Jeevan Anand where you get life time coverage. On maturity you get the sum assured plus bonus. But insurance cover continues lifelong.

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Venkat - The query is about term insurance.

Hi destinysandy .. the Maximum Term of the Amulya Jeevan is 35 Years .I would suggest that you can take up Term Policy Up to the age of 60 ,because that is the age where we tend to retire from work .

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Originally Posted by LIC_DO

Hi destinysandy .. the Maximum Term of the Amulya Jeevan is 35 Years .I would suggest that you can take up Term Policy Up to the age of 60 ,because that is the age where we tend to retire from work .

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But you have to pay BIG money from your pocket at the age of 60 (when most of your liabilities are over)

copycat

Can you explain ??

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Originally Posted by LIC_DO

copycat

Can you explain ??

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Term insurance policy premium is directly associated with the risk of the proposer. Elderly people have more risk since they are susceptible to diseases and ageing of the body. A 20 year old person has good many years ahead of him as compared to 60 year old person. So the young person has better probability of survival till the end of the term in comparison with elderly person. This makes the premium for elderly person a bit on the steeper side.

copycat

The Term Insurance plan is give insurance for the breadwinner .If something Happens to the breadwinner ,the bread should continue for the family . At age of 60 ,bread winner would have retired and at that time he needs a whole life plan not term plan....