This article on whether and how to split your term insurance plan is perhaps the most important article for a term insurance buyer, especially if it is their first term insurance plan. The situation of too much or too little insurance cover is very common for many term insurance customers, and unfortunately both are bad situations to be in. So we recommend you read this article on splitting term insurance very carefully – it will surely be worth your time.
There are ek, do, teen – 3 ways to split your life insurance cover.
1 : Splitting your Term Insurance Plan based on Time
Your term insurance needs are not always constant. That’s because your income, lifestyle and life stages, and therefore the amount of income protection you need, keep changing over your earning years. So you needs start low when you are early in your career and life stage, keep going up as your income and needs grow and it reaches a high when your responsibilities and economic worth are highest. As you approach retirement (and have accomplished a large part of what you were supposed to contribute monetarily to your family), the level of insurance protection you needs comes down and ends when you retire.
Look at the table below to understand it. (Click on it to see it full screen)
Simply put, you need up to 3 term insurance plans during your lifetime.
- Buy your first Term Insurance Plan with basic life cover during Stage 1 when you start working and are single – from age 20-27 to go on till Stage 5, i.e. till age 51-55 years, or till 60 if you can get it. Since you are young, this term insurance plan will be very cheap.
- In Stage 2, as you settle down in your career and also get married and have children, buy another term insurance plan with bigger cover that covers you till Stage 6, i.e. your retirement age. You are now protected with 2 term plans and your cover level is high.
- In Stage 3, as you approach the peak of your career, buy yet another term insurance plan with an even bigger insurance cover once you are clear how much you need at the maximum level. Again, buy for a period till retirement. Notice that between ages 38 and 55, your life insurance protection is maximum and adequate to cover expenses for your family in case something were to happen to you. Also, you will now be paying premiums for 3 term plans, but since your salary is high as well, you will be able to afford the premiums easily.
And you don’t need life insurance cover for Stage 7, i.e. beyond retirement. Know why.
2 : Splitting Term Insurance Plan based on your Needs
Splitting your term insurance plan based on Needs is the most important reason of all.
This kind of splitting works best if you are buying life insurance to cover debts such as home loans. In such cases, since you know that you will be paying off your debt over time, it is better to have separate term insurance plans for each large debt so that when the loan is paid off, you term plan also ends or you can stop paying the premium for it.
Home Loan (outstanding today) = Rs. 42 lakhs, EMIs to be paid for balance 16 years.Term Insurance Plans to be split as follows:
Policy 1 : Rs. 75 lakhs till retirement
Policy 2 : Rs. 42 lakhs for 16 years – continue this policy till all EMIs are paid off in 16 years. And in case the loan is paid off earlier, just stop paying premium for this policy. Simple.
3 : Splitting Term Insurance Plan between Insurance Companies
Of late, we keep hearing that we should split our term insurance plan between companies so that just in case one company doesn’t pay the claim, the others will.
Our view is simple – there is only one set of rules that govern our life insurance companies, and enforced by the IRDA. So it is highly unlikely that the decision on your claim will be different from different companies.
Also, when you apply to 2 companies simultaneously or serially, you have to disclose that you already have life cover from another company, or are applying for it. So each life insurance company knows that another company is also involved. At the time of claim, nothing stops these companies to speak to each other and jointly decide the fate of your claim. Normally, the reasons for claim acceptance or repudiation (denial, rejection) are the same across all insurance companies.
So as long as you have been truthful and accurate in whatever you mentioned in the application form, buying your term insurance plan from just one company is good enough. It also saves the headache of applying to different companies, doing medicals many times over, paying renewal premium for each policy every year, and a lot of hassles for the nominee when applying for a claim.
However, you can split the term plan between companies for a specific product benefit inclusion/exclusion. e.g. some companies cover death from a terrorist attack, while some others don’t. You may want to split between companies to accommodate both the benefits. That’s ok.
We hope this article gave you a good perspective to buy your term insurance plan. Make sure you read these points carefully before you fill up the application form.
Quite possible. Is there something you are trying to point out?
I checked on policy bazaar. A 70 Lc + 30 Lac combo has 1000 to 1500 Rs higher premium than single policy of 1 Cr.
Pleasure to help, Mr. Mehra.
Ok, got that.
1. You got it absolutely right. For Stage 3, 4 and 5, you need maximum protection, so all the 3 term plans cover you together. 8000 vs. 8000 x 3 … the 8000×3 will give you 3 times the cover. If you need that kind of cover, you will need to have it. If 8000 worth of cover is enough, then so be it. It all depends on what is the total cover you need at your prime stages (3, 4, 5) – 1cr or 3cr.
2. Term plan protection beyond age 60 is like betting on death. There is no specific ‘need’ to protect either income or loans. Read the below article for more.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
So it’s your call, Neo, you may keep the term till 75 if you still choose to.
Hope we were able to give you a perspective.
Here’s where you can compare and get the best term insurance plan.
https://www.mintwise.com/term-insurance-compare
By ‘additional premium’, I meant that if I buy 3 term plans, (for. eg. in the stages 3,4, and 5, there are 3 term plans), then I’ll need to pay yearly premium for each term plan. If each plan has a premium of about Rs 8000/year then in the stage 3 to 5, I’ll be paying avg. 3*8000 = 24000 as premium every year. While having a single term plan for longer duration requires only 8000/year. Please clarify.
And I went for iTerm upto 75 age, because buying a term plan in the 60s will incur huge premium if a normal term plan ends at 60 age and I don’t die. I mean what if I die at the age > 60. Additional term of 15 years will get my family financial security in case of my death.
Neo, you have mentioned 2 separate points.
One, as long as the duration of cover goes, we recommend it is not required beyond your retirement age. You will never get a loan beyond your retirement age, so all your loans and debts will stop at that age. We presume here that your retirement would happen between 60-65 years. Use the rest of the money to create a better retirement fund rather than use it for insurance that you may not really need. But it’s entirely your call. You can go ahead with your approach as well.
Secondly, your question on splitting is unclear, Neo. Not sure what you mean when you say ‘additional plan’ and ‘additional premiums’. Do clarify please.
If you have checked your needs thoroughly and have decided on Aegon iTerm, you can surely go ahead with that.
If I buy Religare iTerm plan till the age of 75, (insured value – 1Cr.), do I need to have the split term plans that you talk about in this article? Because, if my single iTerm plan covers me till 75 age, buying additional plan will again burden me with additional premiums. Also, I am assuming that by the age 75, all my loans and debts will be settled.
This is a nice information for my benefit. I was not able to decide first before reading this article. Now it is very clear that I dont have to unnecessarily split term plan into many companies to get the claim. thank you mintwise.
Very nice article. Never knew term insurance could be split
Best article on term insurance.. superb blog.
Of course, Krishna, you can shift to a cheaper one if that really works in your favour cost-wise. Do check for the need to split and whether you really need protection beyond retirement age.
Hi, As the term insurance premiums are going down regularly, isn’t it wise to shift to a new policy with higher coverage for lesser premium? A few years ago, a 25 lakh coverage was costing approximately 7000 Rs. for a 25 year old. Now, when the same person reached 30, he is able to get almost 1 Crore coverage for about 9000 Rs. So, do you think it is wise to continue the first policy still?
You are absolutely right, Ravinder. But don’t be worried about the number of plans… even if it may be a little tedious to manage, it works best for you. Would you not walk the extra mile if what you see after you do is really worth it?
thanks. very highly informative and educational. i just wanted a clarification.. based on your recommendations above, it is possible, i may have to buy more than 3 term plans over time..e.g 1 at age 25, then again at age 33, then again a separate one when i take a home loan, etc. is my understanding correct?
What a wonderfully written article!!! and good language, easy to understand. thanks mint wise.
Wow, I felt enlightened reading this.. Well written. Great website. keep going …
Thank you for your kind words, Kritika. Your feedback is noted and we will do the needful.
Thank you for your kind words, Kritika. Your feedback is noted and we will do the needful.
this is very nicely explained. superb website. can you give more articles on health insurance. thanks, mintwise.com
this is very nicely explained. superb website. can you give more articles on health insurance. thanks, mintwise.com
Very informative and logical. thanks for this article which comes right on time because I was just about to buy my term plan.
Very informative and logical. thanks for this article which comes right on time because I was just about to buy my term plan.
Soumen, this article has been revised (simplified) based on reader feedback. You may go through the same again if it is still relevant for you.
Soumen, this article has been revised (simplified) based on reader feedback. You may go through the same again if it is still relevant for you.
Oh, sorry about that. Thank you, Soumen, for pointing it out.
Oh, sorry about that. Thank you, Soumen, for pointing it out.
The article on splitting the term insurance plan went invisible for sometime 🙂
It’s back now. Thanks.
The article on splitting the term insurance plan went invisible for sometime 🙂
It’s back now. Thanks.
Which one in particular are you looking for, Soumen?
Which one in particular are you looking for, Soumen?
Hi MintWise, I can’t find this particular article anymore. Can u check?
Hi MintWise, I can’t find this particular article anymore. Can u check?
Ashwini, indeed you must split it. Have a term cover of Rs. 40 lakhs (or whatever is the outstanding loan amount as of today) for the period till when the home loan EMIs will be completed. If you are able to pay of the loan earlier, just stop this term plan by stopping the premium.
Take a separate plan to protect your income, up to your retirement age. Use the link below to calculate how much of cover that should be. (When calculating, input loans as zero since you have already taken a separate plan for that.)
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Hope this helps you, Ashwini.
Ashwini, indeed you must split it. Have a term cover of Rs. 40 lakhs (or whatever is the outstanding loan amount as of today) for the period till when the home loan EMIs will be completed. If you are able to pay of the loan earlier, just stop this term plan by stopping the premium.
Take a separate plan to protect your income, up to your retirement age. Use the link below to calculate how much of cover that should be. (When calculating, input loans as zero since you have already taken a separate plan for that.)
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Hope this helps you, Ashwini.
Hi, First i would like to thank you for such a good information. I am at my 35th year, Working in a IT Company, Have 40 Lac of Home Loan. Annual Income is 10 Lac.
Can i Split my term Insurance policy.? or should i take one term Policy From 35 to 75 Year
Hi, First i would like to thank you for such a good information. I am at my 35th year, Working in a IT Company, Have 40 Lac of Home Loan. Annual Income is 10 Lac.
Can i Split my term Insurance policy.? or should i take one term Policy From 35 to 75 Year
Hi Rishabh,
We must first congratulate you for going in for a term insurance plan at 23. Yours is an example that we urge readers to emulate. Well done.
Following are our views.
1. Starting with 1cr looks ok at his time, but in 3-4 years please reassess your requirements and increase the cover if required.
2. Your planned accident cover is too low. It should be at least equal to your life cover of 1cr. Don’t be constrained by the rider in the term plan (or choose the term plan because of the rider) – just buy an additional Personal Accident policy to cover not just accidental death but also cost of treatment due to an accident. At younger ages, the chances of accidental injury/death are far higher than at higher ages.
3. On the term insurance cover age limit, you haven’t mentioned why you do not agree with the logic (if it is beyond the exceptions already mentioned). Most people find it difficult to ignore the lure of getting back a ‘princely’ sum of money even if it is after 60. Few realize that it may not really be that princely at all, especially if you are starting the policy at a very young age. But of course, you are free to ignore that logic. Perhaps, you will get the point at a later stage especially when the concept of planning for retirement rings in.
4. We do not comment on companies or products to keep our advisory unbiased. That is entirely your call.
Hope this helps.
All the best, Rishabh.
Hi Rishabh,
We must first congratulate you for going in for a term insurance plan at 23. Yours is an example that we urge readers to emulate. Well done.
Following are our views.
1. Starting with 1cr looks ok at his time, but in 3-4 years please reassess your requirements and increase the cover if required.
2. Your accident cover is too low. It should be at least equal to your life cover of 1cr. Don’t be constrained by the rider in the term plan (or choose the term plan because of the rider) – just buy an additional Personal Accident cover to cover not just accidental death but also cost of treatment due to an accident. At young ages, the chances of accidental injury/death are far higher than at higher ages.
3. On splitting, you haven’t mentioned why you do not agree with the logic (if it is beyond he exceptions already mentiones. Most people find it difficult to ignore the lure of getting back a princely sum of money even if after 60. You are free to ignore it as well. Perhaps, you will get the point at a later stage especially when the concept of planning for retirement rings in.
4. We do not comment on companies or products to keep our advisory unbiased. That is entirely your call.
Hope this helps.
All the best, Rishabh.
Hi MintWise Team,
All your articles are very insightful and crisp. And I have come across these when I need it the most (Inception of my Job career). So here goes my question:
I am 23, Single (obviously), 8L CTC. Non-Smoker, Non-Drinker. I am planning to buy term insurance for 1 Cr till the age of 63 years. I have planned to split it into HDFC C2P Plus (50 Lacs) till the age of 63 and another 50 Lacs in “Religare iTerm” till the age of 73 (I feel having term insurance till the age of 75 makes sense. Yes, I have read your article which is against this view but sorry, I didn’t buy your argument 😛 ).
I am taking ADB of 25Lacs in “Reliagre iTerm” as well since it is for 75 years and taking ADB in Reliagre was cheaper vis-a-vis HDFC. The Premium break up for HDFC & Religare is around INR 5100 and 6100 respectively, totalling to 11200.
Please share your views on my plans, it shall be highly appreciated. Thanks !
P.S. I will turn 24 in a months time, therefore needless to say I am in a bit hurry to buy term insurance to avoid some extra premiums. 😉
Awaiting your reply !
Regards,
Rishabh
Hi MintWise Team,
All your articles are very insightful and crisp. And I have come across these when I need it the most (Inception of my Job career). So here goes my question:
I am 23, Single (obviously), 8L CTC. Non-Smoker, Non-Drinker. I am planning to buy term insurance for 1 Cr till the age of 63 years. I have planned to split it into HDFC C2P Plus (50 Lacs) till the age of 63 and another 50 Lacs in “Religare iTerm” till the age of 73 (I feel having term insurance till the age of 75 makes sense. Yes, I have read your article which is against this view but sorry, I didn’t buy your argument 😛 ).
I am taking ADB of 25Lacs in “Reliagre iTerm” as well since it is for 75 years and taking ADB in Reliagre was cheaper vis-a-vis HDFC. The Premium break up for HDFC & Religare is around INR 5100 and 6100 respectively, totalling to 11200.
Please share your views on my plans, it shall be highly appreciated. Thanks !
P.S. I will turn 24 in a months time, therefore needless to say I am in a bit hurry to buy term insurance to avoid some extra premiums. 😉
Awaiting your reply !
Regards,
Rishabh
VJ, following are our views.
1. You are on the right track as far as insurance is concerned. You need sufficient term insurance cover and you can go in for an online term insurance plan which is very cost efficient. Please refer to our article to check how much insurance cover you ideally need.
2. You also clearly need additional accident cover either through an attachment to your term plan or a standalone personal accident policy.
3. There is nothing called best term plan, else only one company would be selling. You can refer to our comparison article to get all the information you need to take the decision. But the decision will be yours. We do not recommend any specific companies or products.
4. Indians save 22% of their income every year on an average. Your savings rate appears to be lower than this average. START SAVING, YOU WILL NEED IT!
Hope this helps.
VJ, following are our views.
1. You are on the right track as far as insurance is concerned. You need sufficient term insurance cover and you can go in for an online term insurance plan which is very cost efficient. Please refer to our article to check how much insurance cover you ideally need.
2. You also clearly need additional accident cover either through an attachment to your term plan or a standalone personal accident policy.
3. There is nothing called best term plan, else only one company would be selling. You can refer to our comparison article to get all the information you need to take the decision. But the decision will be yours. We do not recommend any specific companies or products.
4. Indians save 22% of their income every year on an average. Your savings rate appears to be lower than this average. START SAVING, YOU WILL NEED IT!
Hope this helps.
Sir, i would like to know which term plan or product will be good for me, i am 33 and have no other major savings till date (typical Indian class) i am the sole breadwinner of the family and need your expert advice for a good product which i am planning to buy on 1st Nov, can i opt for 1 Crore so my family is taken care of well in case of an eventuality because i drive a Motorbike daily to work for 50Kms (round trip)
Sir, i would like to know which term plan or product will be good for me, i am 33 and have no other major savings till date (typical Indian class) i am the sole breadwinner of the family and need your expert advice for a good product which i am planning to buy on 1st Nov, can i opt for 1 Crore so my family is taken care of well in case of an eventuality because i drive a Motorbike daily to work for 50Kms (round trip)
Dear BK,
You are at a good starting point as far as your finance goes. But we can see you still have a long way to go. Good that you are planning to buy your term policy. As far as the how much goes, you could use the calculator in the article linked below, to check if Rs. 1 cr. is enough now.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Also, your decisions on both splitting and Accident Insurance are accurate.
Whether you choose Max, ICICI or anything else, it is completely your decision. Like your advisor, we also truly believe that all companies are more or less the same since they are under the IRDA, but we also believe in looking at evidence that differentiates one from the other.
We presume you have read this article linked below. It will give you a fair idea.
https://www.mintwise.com/blog/compare-online-term-insurance-plans-india-2014/
Unfortunately, we do not recommend any specific company or product. Anything that we say would be baseless if there is no evidence or data to support. And all the information that we have is already presented on this website.
So if you are willing to pay a premium to get peace of mind, do that and take your own decision. You are not likely to be wrong in the long term.
Hope this helps, BK.
Dear BK,
You are at a good starting point as far as your finance goes. But we can see you still have a long way to go. Good that you are planning to buy your term policy. As far as the how much goes, you could use the calculator in the article linked below, to check if Rs. 1 cr. is enough now.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Also, your decisions on both splitting and Accident Insurance are accurate.
Whether you choose Max, ICICI or anything else, it is completely your decision. Like your advisor, we also truly believe that all companies are more or less the same since they are under the IRDA, but we also believe in looking at evidence that differentiates one from the other.
We presume you have read this article linked below. It will give you a fair idea.
https://www.mintwise.com/blog/compare-online-term-insurance-plans-india-2014/
Unfortunately, we do not recommend any specific company or product. Anything that we say would be baseless if there is no evidence or data to support. And all the information that we have is already presented on this website.
So if you are willing to pay a premium to get peace of mind, do that and take your own decision. You are not likely to be wrong in the long term.
Hope this helps, BK.
Hello Sir
You article is insightful on splitting. Thank you for sharing your knowledge.
I am 33, Married, Single earning , 1 kid 2.5 years, 35 LakhsPA. Social drinker. No loans and no savings(paid off house/car loans), Already paying premiums for a LIC policy for 5 lakhs sum assured (8 years old policy), Jeevan anand for 15 lakhs ( 3 years old policy)
I am planning to buy term insurance for 1 cr and planning to add another 1 cr later. I was originally planning to split the first 1 cr as 50L/50L in two different companies which I decided against after reading your arcticle. Also i have decided to take accidental death benefit after reading your article.
There are online insurances which is as low as 9K premium from reliance to 13k from Max life to 15K for ICICI prudential. Does it really matter which company I select. I know how these companies fare in claim settlement ratio. But my financial advisor says it does not matter as all these companies are governed by IRDA. I am ready to pay a higher premium to reduce or avoid any hassle later. Please advise if you have some thoughts on this…Thanks for your time..God bless you.
Take care
BK.
Hello Sir
You article is insightful on splitting. Thank you for sharing your knowledge.
I am 33, Married, Single earning , 1 kid 2.5 years, 35 LakhsPA. Social drinker. No loans and no savings(paid off house/car loans), Already paying premiums for a LIC policy for 5 lakhs sum assured (8 years old policy), Jeevan anand for 15 lakhs ( 3 years old policy)
I am planning to buy term insurance for 1 cr and planning to add another 1 cr later. I was originally planning to split the first 1 cr as 50L/50L in two different companies which I decided against after reading your arcticle. Also i have decided to take accidental death benefit after reading your article.
There are online insurances which is as low as 9K premium from reliance to 13k from Max life to 15K for ICICI prudential. Does it really matter which company I select. I know how these companies fare in claim settlement ratio. But my financial advisor says it does not matter as all these companies are governed by IRDA. I am ready to pay a higher premium to reduce or avoid any hassle later. Please advise if you have some thoughts on this…Thanks for your time..God bless you.
Take care
BK.
3. No such specificity for women in term plans (that’s important only when you buy health plans). Go ahead and buy the term plan that you feel is right.
3. No such specificity for women in term plans (that’s important only when you buy health plans). Go ahead and buy the term plan that you feel is right.
HI,
Thanks a lot for your quick reply.
1. I Understand that it is better to take term policies for both even working or not working. I understand that you had specifically mentioned before pregnancy to take care of the risk during pregnancy. I am bit late to plan for the same. Anyway better late than never.
And could you tell me whether term insurance is available as family or it is only single person basis.
2. Yes you are right about managing 3 plans. will think about SI/ECS options.
3. And please recommend about women specific Term insurance plan – benefits etc. to be checked if any..
Regards
Revathy Dasan
HI,
Thanks a lot for your quick reply.
1. I Understand that it is better to take term policies for both even working or not working. I understand that you had specifically mentioned before pregnancy to take care of the risk during pregnancy. I am bit late to plan for the same. Anyway better late than never.
And could you tell me whether term insurance is available as family or it is only single person basis.
2. Yes you are right about managing 3 plans. will think about SI/ECS options.
3. And please recommend about women specific Term insurance plan – benefits etc. to be checked if any..
Regards
Revathy Dasan
Revathy, we would recommend the following.
1. Good that you are thinking of the term plan. But if the plan you have mentioned is for you alone, that’s not the way to go. You and your wife (since she earns as well) BOTH need to have enough protection. Even if you are going the family way (and even if it means she will quit her job) it is better to take a good term cover for her as well before pregnancy starts – it just makes things a little easy later.
2. On the break-up of the companies you have chosen, they look pretty ok except that 3 plans may be a bit too much to manage. If you do go ahead with this, make sure you choose and automated monthly/yearly electronic payment so that there is no hassle managing the policy. We hope you have checked if the total cover requirement is correct. If not, you may use the link below. Check it separately for both of you.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
3. Please work on your emergency fund asap. You never know when you need it.
4. Check out your health insurance cover esp since you plan to increase the size of the family.
Hope this helps.
Revathy, we would recommend the following.
1. Good that you are thinking of the term plan. But if the plan you have mentioned is for you alone, that’s not the way to go. You and your wife (since she earns as well) BOTH need to have enough protection. Even if you are going the family way (and even if it means she will quit her job) it is better to take a good term cover for her as well before pregnancy starts – it just makes things a little easy later.
2. On the break-up of the companies you have chosen, they look pretty ok except that 3 plans may be a bit too much to manage. If you do go ahead with this, make sure you choose and automated monthly/yearly electronic payment so that there is no hassle managing the policy. We hope you have checked if the total cover requirement is correct. If not, you may use the link below. Check it separately for both of you.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
3. Please work on your emergency fund asap. You never know when you need it.
4. Check out your health insurance cover esp since you plan to increase the size of the family.
Hope this helps.
Hi,
Recently plying through internet for articles about planning term insurance and yours are best in term of eye opener and information.
Thanks a lot for your such valuable article, really appreciate it.
Request your opinion about my planning,
Me:
Age : 30 years
Married (planning for kid)
Salaried with wife earning as well
CTC – 18lpa
No emergency fund (giving a serious thought after reading Emergency fund article)
Liability – Total personal/home loan – 22lacs
No existing term insurance
Plan:
60Lacs (CI/WOP) – Aegon Religare for 35 years – to take care liabilities and for later stage as premium is very low
1 Cr – HDFC Income Plus option for 35years
50 Lacs – HDFC Extra Life options (ADB) – 35 years
Splitting just to have ADB benefit and am comfortable with HDFC as i have all relations with HDFC group.
Please share your opinion
Regards
Revathy Dasan
Hi,
Recently plying through internet for articles about planning term insurance and yours are best in term of eye opener and information.
Thanks a lot for your such valuable article, really appreciate it.
Request your opinion about my planning,
Me:
Age : 30 years
Married (planning for kid)
Salaried with wife earning as well
CTC – 18lpa
No emergency fund (giving a serious thought after reading Emergency fund article)
Liability – Total personal/home loan – 22lacs
No existing term insurance
Plan:
60Lacs (CI/WOP) – Aegon Religare for 35 years – to take care liabilities and for later stage as premium is very low
1 Cr – HDFC Income Plus option for 35years
50 Lacs – HDFC Extra Life options (ADB) – 35 years
Splitting just to have ADB benefit and am comfortable with HDFC as i have all relations with HDFC group.
Please share your opinion
Regards
Revathy Dasan
Praveen, download the free calculator from this link and find out exactly how much you need.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Yes, you can look at more than 1 company if the reason you are doing it is correct. Here’s an article that explains it.
https://www.mintwise.com/blog/term-insurance-plan-split/
Most companies settle claims in quick time. Check the table in this article to see which companies settle claims the fastest. But make a choice depending on all 5 parameters mentioned in this article, besides your own judgment.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
Praveen, download the free calculator from this link and find out exactly how much you need.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
Yes, you can look at more than 1 company if the reason you are doing it is correct. Here’s an article that explains it.
https://www.mintwise.com/blog/term-insurance-plan-split/
Most companies settle claims in quick time. Check the table in this article to see which companies settle claims the fastest. But make a choice depending on all 5 parameters mentioned in this article, besides your own judgment.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
At the face of it, your savings rate is very poor. A Rs. 14 lakh kitty till date including retirement plans, is very low given your income. You need to do much more on that.
Responses to your queries.
1) A Sum Assured of 3 crore (given you have a liability of Rs. 1 crore) is low. Please re-evaluate your needs once again. The link below could help. Use the calculator therein to know you real requirement.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
If you still want to go ahead with just the Rs. 3 crore cover, it is fine but do enhance it as early as you can.
Accidental death cover is very cheap and must DEFINITELY be bought; either as an attachment with the term plan or through a separate Personal Accident policy offered by General Insurance companies.
2) Perfect. Go ahead.
3) Some companies do not offer discount for higher Sum Assured, but most do. However, this is a cost-related decision you will need to make yourself. Our view can hold no weight, because only you can decide the real value of each option – paying a little more for splitting versus getting a discount for not splitting.
At the face of it, your savings rate is very poor. A Rs. 14 lakh kitty till date including retirement plans, is very low given your income. You need to do much more on that.
Responses to your queries.
1) A Sum Assured of 3 crore (given you have a liability of Rs. 1 crore) is low. Please re-evaluate your needs once again. The link below could help. Use the calculator therein to know you real requirement.
https://www.mintwise.com/blog/calculate-life-insurance-coverage/
If you still want to go ahead with just the Rs. 3 crore cover, it is fine but do enhance it as early as you can.
Accidental death cover is very cheap and must DEFINITELY be bought; either as an attachment with the term plan or through a separate Personal Accident policy offered by General Insurance companies.
2) Perfect. Go ahead.
3) Some companies do not offer discount for higher Sum Assured, but most do. However, this is a cost-related decision you will need to make yourself. Our view can hold no weight, because only you can decide the real value of each option – paying a little more for splitting versus getting a discount for not splitting.
Hello,
Thanks for this wonderful article on splitting. I request your help in finalising a Term Plan for me.
About me :
Age 34 years.
Married with 1 Kid.
Salaried and Single earner.
Annual Income : 37 LPA (CTC)
Liquid Savings of about 14 lacs (including retirement benefits)
Taken a recent Home loan of 100 Lac for a tenure of 25 years.
Existing Insurance : Term Insurance of 1 crore from ICICI Prudential valid for next 27 years with Accidental Death cover of additional 50 Lacs.
Questions:
1) I am thinking of buying two term insurances of 1 crore each from Reliance and Aegon. This is based on my revised lifestyle and the fresh loan liability. Of course I am considering them for the lowest premium they offer in the online plans. Is this cover sufficient enough considering a retirement age of 60 years? Should I opt for Accidental death cover in these policies too?
2) Intention to split the policies was considering the 5 point performance (read your other article) of 2 companies. This is purely from the company’s financial health perspective and not with the intent that one of the 2 may settle my claim.
3) I thought of continuing the ICICI policy given its position in Top 5 performers. And I didn’t find any discount for choosing a sum assured of 2 crores with any of the 2 companies (Reliance and Aegon). Would you still recommend me to go for a single policy of 3 crores with any one company (which may result in closure of the existing ICICI policy)?
Hello,
Thanks for this wonderful article on splitting. I request your help in finalising a Term Plan for me.
About me :
Age 34 years.
Married with 1 Kid.
Salaried and Single earner.
Annual Income : 37 LPA (CTC)
Liquid Savings of about 14 lacs (including retirement benefits)
Taken a recent Home loan of 100 Lac for a tenure of 25 years.
Existing Insurance : Term Insurance of 1 crore from ICICI Prudential valid for next 27 years with Accidental Death cover of additional 50 Lacs.
Questions:
1) I am thinking of buying two term insurances of 1 crore each from Reliance and Aegon. This is based on my revised lifestyle and the fresh loan liability. Of course I am considering them for the lowest premium they offer in the online plans. Is this cover sufficient enough considering a retirement age of 60 years? Should I opt for Accidental death cover in these policies too?
2) Intention to split the policies was considering the 5 point performance (read your other article) of 2 companies. This is purely from the company’s financial health perspective and not with the intent that one of the 2 may settle my claim.
3) I thought of continuing the ICICI policy given its position in Top 5 performers. And I didn’t find any discount for choosing a sum assured of 2 crores with any of the 2 companies (Reliance and Aegon). Would you still recommend me to go for a single policy of 3 crores with any one company (which may result in closure of the existing ICICI policy)?
Dear Mintwise Team
I have taken 50 Lakhs term plan with HDFC & my annual income is 7 Lakhs
For How much worth i can took term insurance & weather i can took separate compnay term insurance like Max they are giving settlement of claim in 10 days .
Please suggest what i have to do
Dear Mintwise Team
I have taken 50 Lakhs term plan with HDFC & my annual income is 7 Lakhs
For How much worth i can took term insurance & weather i can took separate compnay term insurance like Max they are giving settlement of claim in 10 days .
Please suggest what i have to do
Very nice article. Actually all the articles here make lots of sense… keep it up, guys!
Very nice article. Actually all the articles here make lots of sense… keep it up, guys!
Yes, you can top-up and there are 2 ways to do it.
First, if your existing term plan allows it. Second, if you have a ULIP, you can top that up as well by increasing Sum Assured (again, if your plan allows it), up to the level that your Premium to Sum Assured multiple allows.
Else just buy a new plan, Kedar. The term insurance premium rates have fallen steeply in the last 2 years, and this could actually work out in your favour.
You can do a top-up in 2 different ways.
One, if you existing term plan allows it. Two, if you have a ULIP, you can top that up as well by increasing Sum Assured (again, if your plan allows it), upto the level that your Premium to Sum Assured multiple allows.
Else just buy a new plan, Kedar. The term insurance premium rates have fallen steeply in the last 2 years, and this could actually work out in your favour.
Excellent informative article ! thanks a lot. Is it possible and recommended to do a ‘top up’ of term plan ? couple of years back when I bought the term plan , took for 50L from Kotak , however reading through your explanation, makes it clear that it should be in the range of 1.25Cr. Can you advise ?
Excellent informative article ! thanks a lot. Is it possible and recommended to do a ‘top up’ of term plan ? couple of years back when I bought the term plan , took for 50L from Kotak , however reading through your explanation, makes it clear that it should be in the range of 1.25Cr. Can you advise ?
This is the best advice I have got on this topic!!!! thank you sooooo much!!!!
This is the best advice I have got on this topic!!!! thank you sooooo much!!!!
Amit, firstly thanks for your kind words. (And who is Hemant?)
Your decision to buy a term plan is excellent. Go for it as soon as you can. Your queries responded here below.
1a and 1b. Absolutely perfect. Can’t advise any better. But after you take your 1 cr term plan, you need to review your needs after 3-4 years. My guess is that you may need to top up some more over time.
2. Mainly there are 3 kinds of additional benefits covered by riders – Accidental Death, Disability or Critical Illness. Each will have a separate Sum Assured and that is always in IN ADDITION to the main term plan Sum Assured. I strongly recommend Accidental Death Benefit rider since accidents are a matter of chance and you should cover for it. It is very cheap as well. I would also recommend a CI rider, especially if you do not have a comprehensive Health Insurance cover or Mediclaim.
3. Single premium is a good option too. If you find it convenient, go for it. But remember that this will take away the flexibility to shift to another insurance company mid-way just in case you feel the need to do so.
4. No insurance company checks CIBIL Report for underwriting a life insurance cover. Your CIBIL score therefore does not matter.
5. You don’t need to ask anything. Just go online and apply for the plan you choose. And be transparent. That’s it.
If you still have queries, respond back on this forum. Good luck, Amit.
Amit, firstly thanks for your kind words.
Your decision to buy a term plan is excellent. Go for it as soon as you can. Your queries responded here below.
1a and 1b. Absolutely perfect. Can’t advise any better. But after you take your 1 cr term plan, you need to review your needs after 3-4 years. My guess is that you may need to top up some more over time.
2. Mainly there are 3 kinds of additional benefits covered by riders – Accidental Death, Disability or Critical Illness. Each will have a separate Sum Assured and that in IN ADDITION to the main term plan Sum Assured. I strongly recommend Accidental Death Benefit rider since it a matter of chance and you should cover for it. It is very cheap as well. I would also recommend a CI rider, especially if you do not have a comprehensive Health Insurance cover.
3. Single premium is a good option too. If you find it convenient, go for it. Remember that this will however take away the flexibility to shift to another company mid-way just in case you feel the need to do so.
4. No insurance company checks CIBIL Report for underwriting a life insurance cover.
5. You don’t need to ask anything. Just go online and apply for the plan you choose. And be transparent. That’s all.
If you still have queries, respond back on this forum. Good luck, Amit.
Hello Hemant Sir,
I must congratulate and thank you for providing such a critical information with such a easy way. Please keep doing service to humanity like this. We all wish your success and peace in life.
I was wondering if you could also help me in clarifying my confusion.
About me :
Age 32 years.
Socially Smoker and Drinker.
Married.
Single earner.
No kids(not even planning)
Working in an IT firm(Bangalore).
Annual Income : 17 LPA
PPF investment 1 lac per year(accumulated 7 lacs by now)
NSC investment around 1.5 lac
Savings in account around 3 lacs
I have a home loan(HDFC Ltd) of 24 Lac.
Now my questions :
1). I am thinking of two term insurances.
(a). 25 lacs for 5 years(called Reducing type I guess) and from any cheapest premium provider company(Say Aegon Religare). I decided this because I am targetting my loan closure in 5 years from now. And once loan is closed, I will close this policy too.
(b). 1 Crore for longer period(say 30 years). This would be the one I would continue life long. I would choose some front runner for this(Say ICICI Prulife, HDFC Click2protect or LIC).
Am I thinking right or any advice for me?
2). I am totally confused about riders, I am completely failed to understand what are they, if they are included in package or not, if rider’s sum is extra on sum assured or is part of total sum assured. Any complete explanation/guide/article would be of great help!
3). I am also inclined towards single shot premium to avoid future tensions. In my stream we change companies almost every 2 years, bank account changes and so on. Please shed some light on it as well.
4). Also my CIBIL report is not that great, I do not get credit cards etc. Only I know how much pain I went through to get my home loan sanctioned. Would bad cibil report create any problem in getting term insurance?
5). If I get in discussion with some call center agent of any insurance company, what are those tricky questions I should ask to get all the important information extracted from them. Any sort of checklist you know.
At last I would thank you in advance for answering my queries and god bless you.
Amit Saxena
Hello Hemant Sir,
I must congratulate and thank you for providing such a critical information with such a easy way. Please keep doing service to humanity like this. We all wish your success and peace in life.
I was wondering if you could also help me in clarifying my confusion.
About me :
Age 32 years.
Socially Smoker and Drinker.
Married.
Single earner.
No kids(not even planning)
Working in an IT firm(Bangalore).
Annual Income : 17 LPA
PPF investment 1 lac per year(accumulated 7 lacs by now)
NSC investment around 1.5 lac
Savings in account around 3 lacs
I have a home loan(HDFC Ltd) of 24 Lac.
Now my questions :
1). I am thinking of two term insurances.
(a). 25 lacs for 5 years(called Reducing type I guess) and from any cheapest premium provider company(Say Aegon Religare). I decided this because I am targetting my loan closure in 5 years from now. And once loan is closed, I will close this policy too.
(b). 1 Crore for longer period(say 30 years). This would be the one I would continue life long. I would choose some front runner for this(Say ICICI Prulife, HDFC Click2protect or LIC).
Am I thinking right or any advice for me?
2). I am totally confused about riders, I am completely failed to understand what are they, if they are included in package or not, if rider’s sum is extra on sum assured or is part of total sum assured. Any complete explanation/guide/article would be of great help!
3). I am also inclined towards single shot premium to avoid future tensions. In my stream we change companies almost every 2 years, bank account changes and so on. Please shed some light on it as well.
4). Also my CIBIL report is not that great, I do not get credit cards etc. Only I know how much pain I went through to get my home loan sanctioned. Would bad cibil report create any problem in getting term insurance?
5). If I get in discussion with some call center agent of any insurance company, what are those tricky questions I should ask to get all the important information extracted from them. Any sort of checklist you know.
At last I would thank you in advance for answering my queries and god bless you.
Amit Saxena
Sravan, excellent question. The answer lies in the detail (and has nothing to do with the kinds of death covered by the company). I have mentioned it in the claims settlement ratio article as well, but let me reiterate that very important point.
All claims settlement ratios you see are at a company level and not at a product level. LIC sells truckloads of low risk savings plans wherein customers pay premium primarily with the objective of getting good returns. In contrast, a large proportion of Regon Aligare, ooops.. Aegon Religare’s plans comprises of high risk term insurance plans wherein repudiation (rejection) risk is very high. What we do not know is the claims settlement ratios for each company at a product category level, i.e. say what is the claims settlement ratio for LIC for only term plans. Our estimate is that claims settlement ratios of term plans (for most companies including LIC) is in the lower range. How much lower, we do not know – we do not want to guess a number, we’d rather wait till it is actually published by the regulator. In absence of such a number, the overall claims settlement ratio is the only one to go with, and it is at best an indicator.
What we have been trying to tell everyone is to be fully and proactively transparent when applying for a term insurance plan. If they are, their own claims settlement ratio will be 100%!
Hope this sounds clarifying.
Sravan, excellent question. The answer lies in the detail (and has nothing to do with the kinds of death covered by the company). I have mentioned it in the claims settlement ratio article as well, but let me reiterate that very important point.
All claims settlement ratios you see are at a company level and not at a product level. LIC sells truckloads of low risk savings plans wherein customers pay premium primarily with the objective of getting good returns. In contrast, a large proportion of Regon Aligare, ooops.. Aegon Religare’s plans comprises of high risk term insurance plans wherein repudiation (rejection) risk is very high. What we do not know is the claims settlement ratios for each company at a product category level, i.e. say what is the claims settlement ratio for LIC for only term plans. Our estimate is that claims settlement ratios of term plans (for most companies including LIC) is in the lower range. How much lower, we do not know – we do not want to guess a number, we’d rather wait till it is actually published by the regulator. In absence of such a number, the overall claims settlement ratio is the only one to go with, and it is at best an indicator.
What we have been trying to tell everyone is to be fully and proactively transparent when applying for a term insurance plan. If they are, their own claims settlement ratio will be 100%!
Hope this sounds clarifying.
hi,
Awesome article.
I get what you are saying regarding splitting between two companies.. But if both companies (say LIC and Regon Aligare) judge on the same terms, how come the claim settlement ratio is vastly different. Is it the case that very few types of death covered in Regon but people claim it anyway without reading the instructions?
hi,
Awesome article.
I get what you are saying regarding splitting between two companies.. But if both companies (say LIC and Regon Aligare) judge on the same terms, how come the claim settlement ratio is vastly different. Is it the case that very few types of death covered in Regon but people claim it anyway without reading the instructions?
Glad this helped you, Jitendra. Your suggestion is taken – we have received similar requests earlier also so we will surely put up content on health insurance shortly.
Glad this helped you, Jitendra. Your suggestion is taken – we have received similar requests earlier also so we will surely put up content on health insurance shortly.
This is really fantastic advice.
I was just about to buy a term plan for 2 crores to cover my income as well as my 60 lakhs of home loan taken 8 years back. I am now realising that I should break up the amounts and the policy term as well. so i should take 51 lakhs cover (i.e. outstanding principal of home loan as of today) for 12 years (i.e. remaining period of my home loan) and another one for 1.40 crores for 28 years (i.e. up to my retirement age of 58) to cover my income.
Over the entire period of both my policies, I WILL NOW SAVE NEARLY 72,000 bucks! THANK YOU SO MUCH!!!
FANTASTIC ARTICLE. please write something on health insurance also.
This is really fantastic advice.
I was just about to buy a term plan for 2 crores to cover my income as well as my 60 lakhs of home loan taken 8 years back. I am now realising that I should break up the amounts and the policy term as well. so i should take 51 lakhs cover (i.e. outstanding principal of home loan as of today) for 12 years (i.e. remaining period of my home loan) and another one for 1.40 crores for 28 years (i.e. up to my retirement age of 58) to cover my income.
Over the entire period of both my policies, I WILL NOW SAVE NEARLY 72,000 bucks! THANK YOU SO MUCH!!!
FANTASTIC ARTICLE. please write something on health insurance also.
Thanks for the feedback and the appreciation, Natarajan. And glad to know it helped you.
Will do our best on the topics you suggested.
Thanks for the feedback and the appreciation, Natarajan. And glad to know it helped you.
Will do our best on the topics you suggested.
Tx again.
I missed that scenario. You are right – it makes sense.
Hey – I think you should write a little bit about riders/ top-ups as well. btw – this article was very very helpful. Helped me make the right decision.
I missed that scenario. You are right – it makes sense.
Hey – I think you should write a little bit about riders/ top-ups as well. btw – this article was very very helpful. Helped me make the right decision.
Here’s why I wouldn’t do that.
1. Premium changes (increases) with the term you choose when you buy. So if you are 40 and choose cover till 60, i.e. for 20 years, your premium will be x. If you instead choose to cover yourself till 75, i.e. for 35 years, your premium will be more than x, say y. So if you choose the latter, and you discontinue the policy at retirement (assumed @ age 60), you still have to pay a higher premium for the first 20 years. I would invest that money somewhere to build a pension fund.
2. Now this is the one that I find it difficult to explain to most. Insurance is bought with a purpose – Protection. More specifically, against loss of income on death, and protection against liabilities such as home loans and personal loans, and other forms of debt. I must also point out that debt products such as home loan are also only offered for a period capped by your retirement age, and not for more than that.
If you are a rational person, you will agree that covering yourself till retirement age (or say till age 65 max) is good enough and it exactly meets the purpose we mentioned. If you choose to cover beyond that, then it is not for the purpose that I mentioned – it is like a bet on your death. “Why not pass on some extra legacy just in case I die” – is perhaps the motivation beyond extending the policy term beyond 65. That’s my view – but the final call is yours.
There is one segment of people however, who can look at cover beyond age 65 – proprietorships which may take business loans that extend well beyond 60 years. They don’t have a retirement age and liability of the proprietorship is legally also the liability of the proprietor, and they may therefore choose to have cover for a longer period. They need it.
Good question though, Natarajan. And I hope I could give you a perspective.
Here’s why I wouldn’t do that.
1. Premium changes (increases) with the term you choose when you buy. So if you are 40 and choose cover till 60, i.e. for 20 years, your premium will be x. If you instead choose to cover yourself till 75, i.e. for 35 years, your premium will be more than x, say y. So if you choose the latter, and you discontinue the policy at retirement (assumed @ age 60), you still have to pay a higher premium for the first 20 years. I would invest that money somewhere to build a pension fund.
2. Now this is the one that I find it difficult to explain to most. Insurance is bought with a purpose – Protection. More specifically, against loss of income on death, and protection against liabilities such as home loans and personal loans, and other forms of debt. I must also point out that debt products such as home loan are also only offered for a period capped by your retirement age, and not for more than that.
If you are a rational person, covering yourself till retirement age (or say till age 65 max) is good enough and it exactly meets the purpose we mentioned. If you choose to cover beyond that, then it is not for the purpose that I mentioned – it is like a bet on your death. “Why not pass on some extra legacy just in case I die” – is perhaps the motivation beyond extending the beyond 65. The call is yours.
There is one segment of people however, who can look at cover beyond age 65 – proprietorships which may take business loans that extend well beyond 60 years. They don’t have a retirement age and liability of the proprietorship is the liability of the proprietor, and they may therefore choose to have cover for a longer period. They need it.
Good question though, Natarajan. And I hope I could give you a perspective.
Quick Question on this part:
“And yes, another thing. Even if it is offered, I would not buy very high life insurance till the age of 80. It would be too expensive – instead I will cover myself well till retirement age. After that I will prefer to use the premium-equivalent money to sustain my own expenses when alive rather than after I die.”
Why not buy for age up to 80 and then discontinue after retirement? Why make the decision now when it can be deferred? I am picking the same trick you used to justify splitting.
Quick Question on this part:
“And yes, another thing. Even if it is offered, I would not buy very high life insurance till the age of 80. It would be too expensive – instead I will cover myself well till retirement age. After that I will prefer to use the premium-equivalent money to sustain my own expenses when alive rather than after I die.”
Why not buy for age up to 80 and then discontinue after retirement? Why make the decision now when it can be deferred? I am picking the same trick you used to justify splitting.
very clear, Sir. thank you very very much.
very clear, Sir. thank you very very much.
Not at all, Ravichandran. Don’t make that common mistake!
Assess the term insurance plan requirements for both you and your spouse SEPARATELY. That’s because death of one person should provide the exact amount of insurance benefit that the person’s absence will create the need for. Else it can go wrong.
e.g. if, based on your assessment, your insurance need is Rs. 1 crore and your spouse’s need is Rs. 30 lakhs, total being Rs.1.30 crores. If you split it as Rs. 65 lakhs each and if you were to indeed die, your family will get only Rs. 65 lakhs instead of Rs. 1 crore that they actually need. Hope you get the point.
Not at all, Ravichandran. Dont make that common mistake!
Assess the term insurance plan requirements for both you and your spouse SEPARATELY. That’s because death of one person should provide the exact amount of insurance benefit that the person’s absence will create the need for. Else it can go wrong.
e.g. if, based on your assessment, your insurance need is Rs. 1 crore and your spouse’s need is Rs. 30 lakhs, total being Rs.1.30 crores. If you split it as Rs. 65 lakhs each and if you were to indeed die, your family will get only Rs. 65 lakhs instead of Rs. 1 crore that they actually need. Hope you get the point.
very very good insights on term insurance plans. i have not seen this in any other blog.
i want to take term insurance plan for me and my wife. should i split it equally between the two of us?
very very good insights on term insurance plans. i have not seen this in any other blog.
i want to take term insurance plan for me and my wife. should i split it equally between the two of us?
Got it, Thanks a lot!!!
Got it, Thanks a lot!!!
Hi Varkey,
There is no need to split term plans between companies for the reason you mentioned. Let me explain why. Assume you buy 2 different term plans from 2 different life insurance companies. If you are applying simultaneously, you need to declare that in your application form (else it is treated as non-disclosure of information). So both companies know that you have applied from each. Now, in case there is suspicion in your claim, nothing prevents the two insurance companies to actually consult each other and then take a decision. It actually happens for parallel claims since both companies will benefit from each other’s investigation and assessment. So there is no chance that one company will give or not give you the claim for a particular reason.
Also note that SPLITTING is expensive as well.
The only reason you can split your term plan between companies is if there is a feature in one plan that is not covered by the other. e.g. one company may not cover death from terrorist attack, while another may. If the one covering it is slightly more expensive, you may still want to take some cover from that company, and the rest of the cover from a cheaper company. If you indeed die from a terrorist attack later, you know that at least 1 company will definitely give you the claim.
Hi Varkey,
There is no need to split term plans between companies. Let me explain why. Assume you buy 2 different term plans from 2 different life insurance companies. If you are applying simultaneously, you need to declare that in your application form (else it is treated as non-disclosure of information). So both companies know that you have applied from each. Now, in case there is suspicion in your claim, the companies will actually consult each other and then take a decision. So there is no chance that one company will give or not give you the claim for a particular reason.
The only reason you can split your term plan between companies is if there is a feature in one plan that is not covered by the other. e.g. one company may not cover death from terrorist attack, while another may. If the one covering it is slightly more expensive, you may still want to take some cover from that company, and the rest of the cover from a cheaper company. If you indeed die from a terrorist attack later, you know that at least 1 company will definitely give you the claim.
i read in jagoinvest that you should split term insurance between 2 companies so that chances of getting claim are better. your article is saying that it does not matter. i agree with jagoinvestor view since at least i can increase the chances when i am alive rather than dead.
i read in jagoinvestor that you should split term insurance between 2 companies so that chances of getting claim are better. your article is saying that it does not matter. i agree with jagoinvestor view since at least i can increase the chances when i am alive rather than dead.
thanks Siddharth.
thanks Siddharth.
excellent article. A friend of mine has taken 3 term insurance policies from 3 different companies. He was explaining that just in case 1 company rejects the claims, there is still a chance that other companies will pay. so it is a better way. However i was not convinced. So this article has come just in time for me since i have now understood that splitting should be based on our own needs and not between various companies. thanks to the author.
excellent article. A friend of mine has taken 3 term insurance policies from 3 different companies. He was explaining that just in case 1 company rejects the claims, there is still a chance that other companies will pay. so it is a better way. However i was not convinced. So this article has come just in time for me since i have now understood that splitting should be based on our own needs and not between various companies. thanks to the author.