Suggestions for Term Insurance & Mediclaim

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dipen01

dipen01

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Hey guys,

I am looking for suggestions in following areas :

1) Term Plan - 1Cr

Details : Age - 25 yrs, Married, Non Smoker, Non Drinker
Duration - 35 yrs

Details - A year back, I had checked Online Plans with premium of approx 7-8k for a cover of 1Cr - 30 yr but just wast comfortable in going ahead With Term Plans

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2) Mediclaim - 2-3 Lacs

Details - Me & My wife - Including riders of Accident, Critical Diseases

Note - Although my employer currently provides Mediclaim for Myself, My Wife & My Parents - 17k/ Year - Total 4Lacs

Please suggest :
1) Companies
2) Plans
3) Your experiences.

Cheers,
Dipen
 
Buddy
Dont take 1 Cr from 1 company, split into two, 50 lakh + 50 lakh

50 lakh from Aviva iLife is around 4k online
50 lakh from LIC will be around 8k
 
Term: LIC or HDFC or ICICI : comparitively longer lasting companies.
MediClaim: Star or BajajAllianz : better service record.
 
For Term Insurance, I don't want to settle for 'OR' that's why I am keen to go for LIC, it being government co. with highest claim ratio.. I just read few months back that they were planning to launch some online plans !!

For Mediclaim - Any specific plans ?
 
AT this point of time I would go for an online term insurance from either Aviva or ICICI - both are reputed companies with proven track records, but not so encouraging claim settlement ratios as compared to LIC. I would have loved to go for LIC, but their premiums are outrageous. Not to mention outdated. One of their senior executives mentioned they are retabling everything as many things have changed in India, particularly life expectancy
 
I am worried about things down the line.... Something like Aviva, we can't be completely sure will continue to exist in 10-12 years

Any info on online plans for LIC ?
 
dipen01 said:
Any specific reason?
Click to expand...

Reason for taking 2 is, if one rejects atleast family gets 50 lakh from another. If you take 1 cr from one & thats rejected you have no where to go.

LIC is still in process of launching online. Current premium would be around 8k+ but seeing its claim ratio settlement, its wise to go with them.
Aviva iLife is cheap & good. Check their rating in Times Of India Wealth. They have got best rating & online cheap plan with 4k premium.
 
Term Plan:
i also

  • was in the same dilemma sometime back.
  • wanted to buy LIC policy for the trust factor, govt backing, claim ratio etc. but the premiums were just too high
  • heard that LIC is coming with an online plan
  • wasn't sure of trusting aviva etc.

however, i am not sure if in the near future LIC would be successfully be able come up with the online term plan, given the huge number of LIC agents, this plan will surely run into road blocks and backlashes from agents (since for many their livelihood depends on LIC commission).

so instead of waiting for an online plan from LIC, i decided to go for the online term plan for HDFC for about 70% of the initial cover that i had planned. After PSU's, i found HDFC as a company to trust and also their claim settlement ration was the highest after LIC with ICICI closely behind followed by Kotak.

so i would suggest, choose the online term plan from one of these old, trustworthy and reliable corporate houses and get going, so atleast you are covered. then if in future when LIC launches its online term plan, you can buy one accordingly.

Mediclaim:
I found it safer to go for PSU's rather than going for pvt companies.

I would only suggest not to buy accidental plan as a rider (neither in term or medical). buy a separate rider which is more comprehensive and would cover situations like partial disablement (permanent/temporary). in term plans, accidental rider pays you only incase of death, so go forbid if you are left partially disable, its no good.

I am also searching for a good accidental plan and reading on critical cover.
 
I wonder whats the fuss about the term plans. A term plan works on just one criteria. If the person dies, the nominee gets the money. No matter what. Heck, after 1 year, even suicide is covered. All the insurance companies are governed by IRDA and would have to settle claims. Again, No matter what.

Get that, before applying for a license to provide insurance, the company has to show assets to the IRDA that can cover up for the all insurance liability, in case something bad happens with the compnay. IRDA ensures that unless the company doesn't have the means to compensate for the insurance liability, the license is not issued; which ensures that the end user would always be covered. Third time, no matter what !

And I do not see much value in getting two plans from two different companies, as long as we are talking about the term insurance. (Though for ULIPs it makes sense since your invested assets get diversified and you get the advantage of having your funds managed by two different asset managers.)

Also for Medical cover, it is preferable to have private players specially with tie ups with hospital chains, when you are living in metros. It helps to get faster cashless processing. With the gvt providers, cashless is more of a hassle.
 
why do term insurance claims get rejected?
I have no idea about the matter. Could someone please clarify it.
 
My Query:

Does IRDA check licensee applicants property personally or just checking ON PAPER?
Does IRDA provides guarantee that if Company windup after ANY YEARS peoples money with same company will be safe under Govt. of India Custody or IRDA's custody?



Vasishta.Sushant said:
Get that, before applying for a license to provide insurance, the company has to show assets to the IRDA that can cover up for the all insurance liability, in case something bad happens with the compnay. IRDA ensures that unless the company doesn't have the means to compensate for the insurance liability, the license is not issued; which ensures that the end user would always be covered. Third time, no matter what !
Click to expand...
 
Emperor said:
My Query:

Does IRDA check licensee applicants property personally or just checking ON PAPER?
Does IRDA provides guarantee that if Company windup after ANY YEARS peoples money with same company will be safe under Govt. of India Custody or IRDA's custody?
Click to expand...

Will it resolve your query?
http://www.jagoinvestor.com/2009/02/are-private-insurance-companies-safe.html

btw, about my query - why claims may get rejected, people have commented on this blog post about that
http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html#comment-18077


btw, this 'jagoinvestor' blog is quite informative for financial/investment n00bs like me.
 
Vasishta.Sushant said:
I wonder whats the fuss about the term plans. A term plan works on just one criteria. If the person dies, the nominee gets the money. No matter what. Heck, after 1 year, even suicide is covered. All the insurance companies are governed by IRDA and would have to settle claims. Again, No matter what.
Click to expand...

You are wrong my friend. I have seen a live case where person died & claim got rejected. Company said one of the illness was not covered while taking the cover.
They go as low as, person started smoking more.

You are wrong with this statement - If the person dies, the nominee gets the money. No matter what.
Check on internet & see there are so many people who have not received money from term loan once person died.

If every company starts paying, you will see 100 % claim settlement rate of all companies, have a look at Economic times or policy bazaar, you will have facts right.
 
Praks said:
You are wrong my friend. I have seen a live case where person died & claim got rejected. Company said one of the illness was not covered while taking the cover.
They go as low as, person started smoking more.

You are wrong with this statement - If the person dies, the nominee gets the money. No matter what.
Check on internet & see there are so many people who have not received money from term loan once person died.

If every company starts paying, you will see 100 % claim settlement rate of all companies, have a look at Economic times or policy bazaar, you will have facts right.
Click to expand...
I am talking in perspective of Term Insurance not the general life insurance. can you please confirm that ?
 
Vasishta.Sushant said:
I am talking in perspective of Term Insurance not the general life insurance. can you please confirm that ?
Click to expand...

Even I am talking about Term Insurance only.

They will outright reject it even if they find out some medical test was not done. Insurance companies are notorious for that & thats why they have low claim settlement rates.
 
If the person doesn't declare the things that can pose a life risk, its a case of concealing the facts which anyway breaks the agreement between insurer and the person purchasing the cover. Term insurance providers make you go through a series of medical tests before offering you the insurance.
 
Vasishta.Sushant said:
I wonder whats the fuss about the term plans. A term plan works on just one criteria. If the person dies, the nominee gets the money. No matter what. Heck, after 1 year, even suicide is covered. All the insurance companies are governed by IRDA and would have to settle claims. Again, No matter what.
Click to expand...

Which company has such great facilities?Already 1000 of farmers commit suicide i can finance their stay for a year and than be part of 50 percent ; share after suicide.

Either you giving false details.Or the company saying same or in written is a bigger idiot in providing such facility.(No harsh feeling ...just stating fact in harder sarcastic way).

To dipen Malique post needs to be followed.

Splitting between two is as said claim rejection another might help.But do disclose 2nd company before buying that you do have 1 policy from another company.Else after death using non disclosure clause they can reject claim.

And yes LIC wont come with online policy as their agents are not allowing same.Also the only reason to go for it is claim settlement ratio.But again Lic is testing its waters in shares.One needs to be aware of the risk of UTI 64 bonds.

Also check jagoinvestor site or policywala forum for more details regarding same.

Also depen if your monthly salary is 40000 than 10 times is the limit of your insurance term i.e 40 lakhs .Still you want to go for higher value than you need to show your assets like properties etc.


For mediclaim i am myself in doubt so wont comment but i am finding bajaj alliance plans attractive but i havent gone through records of medcilaims.
 
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