Need help with term insurance

vyral_143

vyral_143

Jarvis
Staff member
Super Mod
I am looking to buy Term Insurance for myself. I have almost zeroed down on HDFC Life. Apart from term insurance, they are offering a Disability rider which would pay 1% of Sum Insured for 10 years.

I would like to know how easy or tricky process is for claiming this rider benefit ?

The Definition of Disability
1. Unable to Work:

Disability as a result of injury or accident and is thereby rendered totally incapable of being engaged in any work or any occupation or employment for any compensation, remuneration or profit and he/she is unlikely to ever be able to do so.

2. Physical Impairments:

The life assured suffers an injury/accident due to which there is total and irrecoverable loss of:
a) The use of two limbs; or
b) The sight of both eyes; or
c) The use of one limb and the sight of one eye; or
d) Loss by severance of two or more limbs at or above wrists or ankles; or
e) The total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above wrist or ankle.

The disabilities as stated above in Part (1) and (2) must have lasted, without interruption, for at least 6 consecutive months and must, in the opinion of a medical practitioner (as defined below), be deemed permanent. The benefit will commence upon the completion of this uninterrupted period of 6 months. However, for the disabilities mentioned in (d) and (e) under Part (2), such 6 months period would not be applicable and the benefit will commence immediately.
 
this particular disability rider is a sadly a joke. the conditions mentioned that you need to have always 2 disabilities, eyes limbs and/or both is like 'what are the chances our customer when an accident does happen will have it in 1 part of the body or two'
 
Have a HDFC Life Term Plan - I took the one that offered 1 Cr insurance and thereafter 60 lakh @ 6 lakh/year for 10 years in event of death. NO Riders.

What's the point of riders? Like there was an additional 50 lakh on accidental death rider for some incremental premium. I would rather make the base 1.5 Cr and pay the additional premium for that instead (difference between the 2 is not very large). Coz if in case I dont die in an accident, that rider is useless anyway. Whereas if the base itself is bumped up, cause of death (accidental or non accidental) wont matter.
 
Riders are good for health insurance. A lot of stuff like cancer and other conditions have limits to coverage and in some cases no coverage in an insurance. A rider gives extra coverage or a new coverage.

They key is to go through those many pages of insurance policy details to actually see what is covered and not and how much.
 
Neo-N said:
What's the point of riders? Like there was an additional 50 lakh on accidental death rider for some incremental premium. I would rather make the base 1.5 Cr and pay the additional premium for that instead (difference between the 2 is not very large).
Click to expand...
I believe increasing the base coverage would add a lot more to the premium than opting for a rider.

For eg: I used the HDFC click2protect plus premium calculator for the below.

Base coverage: 1 crore. No riders. Premium - Rs.14037
uUktQOv.png


Base coverage: 1 crore. Rider opting for double coverage in case of accidental death (so, 2 crores in essence). Premium - Rs.19757
g4Sul9j.png


Base coverage: 2 crore. No riders. Premium - Rs.28074
NUDlmXE.png


Same was the case with my ICICI term insurance policy. For 50 lakhs coverage, the premium was around 6K+. With accidental death rider adding another 50 lakhs, the premium was another 1.5K more. Nothing wrong in opting for a rider if it suits your requirements, I guess.
 
Not sure what plan I am on but my premium for 1.6 Cr (1 cr immediate payment + 0.6 cr in 10 years @ 50k a month) is way lower than what you seem to be getting on the online calc. And I only took the policy 2 years ago i.e. when I was 25. Below is the screenie of last premium paid.

upload_2016-5-7_12-40-49.png
 

Attachments

  • upload_2016-5-7_12-39-53.png
    upload_2016-5-7_12-39-53.png
    9.3 KB · Views: 148
My concern here is how do I cover myself in case of disability ? Because in case of disability I would not be able to pay Term plan premiums. Any suggestions ?
 
I checked quite many offerings. There are some offerings with waiver of premiums on disability. However, their definition of disability is almost same as what is in spoiler part of first post. So, I am back to square one.

How do I cover myself in disability to pay premiums of term plan, barring rider option ?
 
Bump

Also which provider is better ?

ICICI - 15k premium with Terminal Illness and Waiver of Premium in case of disability
HDFC - 15.5k premium with no frills
 
Last edited:
google basunivesh and check the site for articles on insurer comparison.

I settled on HDFC click2protect plus (instead of the one without plus)
in hind-sight, should've gone for Max, which was 25% cheaper and now may be merged with hdfc.
 
Vince said:
in hind-sight, should've gone for Max, which was 25% cheaper and now may be merged with hdfc.
Click to expand...

Max is providing coverage for 35 years of term whereas HDFC and ICICI are giving 40 years of term. It might be handy at later stage of life. Or any other way to circumvent this ?
 
If you have not already bought - you can check the articles on live mint. They have a list of top term policies for various ages. Helpful read.
 
Back
Top