Widely read:
I am 25-year old, single and working since last two years. I have selected three term plans for myself for a sum assured of Rs 50 lakh. These are- LIC (with medical), ICICI Pru Care and HDFC Click 2 Protect (no medical). If premium amount is not the criteria, which one should I buy?
My mother and father are 49 and 53 respectively. What kind of insurance policy should I buy for them? Whole life insurance, endowment or term plan? They do not have any existing life insurance?
- Pratik Mehdiratta
You have made a wise choice in buying term insurance at an early age. All three plans that you have shortlisted are good. If premium is not the criteria, you can go for either of the policy but make sure to provide accurate and complete information in the proposal form. This avoids difficulty at the time of claim settlement in case of mishap.
For your next concern, you need to understand that life insurance aims at extending financial support to the family members if something unfortunate happens to the bread-winner of the family. It is crucial for those who have financial dependents. Thus, you may avoid life insurance for your mother if she is non-working. Another fact to be considered is the time left to retirement. One should be insured till the time he has dependents to support. If your father retires at 60, buy him a life cover for seven years or 10 years if a seven year policy is unavailable. Term Insurance is the best life cover.
We do not recommend whole life insurance or endowment policy at any age. Such plans mix insurance and investment in one scheme and do not disclose charges.This makes it tough to evaluate pros and cons of such plans. Always try to have independent insurance and investment products. Premium rates for shortlisted term plans are mentioned below..
*Premium rates for non alcoholic and non smoker; exclusive of service tax and cess.
This article was originally published on April 05, 2013.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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