Saturday, March 21, 2009

WHAT IS TERM INSURANCE??


Mr.Akhil Sharma wrote back :
thanks a lot Mr.Advisor.
You don't know what your recommendations and the information passed on by you means to me.I really hope that somewhere in life even i could be of any help to people.
Thanks again Sir!
But what i want to know from you is "what is term insurance".......can you suggest some product to me so that i can go thru it and understand and get myself insured!

Thanks a lot sir
Regards
Akhil Sharma

SRIKANTH SHANKAR MATRUBAI replied :
Dear Akhil sharma,

Term Insurance
The cheapest and the most basic, this is a no-frills life cover that should be one of your first financial instruments. Being a pure insurance cover, it does not return your money if you survive the policy term.

If you don`t, the sum assured is paid to your dependants. So, buy only if you have financial dependants, or you expect to have dependants in the future. If you expect to have dependants till a later stage of your life, look for a plan that has a high maturity age.
For a Term Insurance of 10 lakh, for your age of 24, you will have to pay approx only 3k per annum. My suggestion, take 5 Different Term Plans from 5 Different Ins Co.s which will cost you around 15k per annum.

Keep the highest possible term
Keep the maturity age as long as possible
Talk to 4-5 insurers or visit their websites to get premium rates
Choose the plan that has the lowest premium at your parameters
Undergo medical tests, if required
Keep the nominees informed
Pay premiums every year

As of now for all age groups, the ICICI Pure Protect Classic Term plan is cheapest for Sum assured up to 24.99L Rs. & Pure Protect Elite for SA more than 25L Rs. Plz. note that with Pure protect only ADDBR & WoP Riders r available.

For exact prem. u may check the same from ICICI Pru life website or contact their local agent.

Ha, one more thing, Mr.Akhil Sharma, I am not a Insurance Agent, so I do not know much about Insurance. Do contact your friends/relatives who know a bit about Insurance.
Best of luck,
srikanth shankar Matrubai

Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis

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