I am 24, employed, unmarried, living with parents. I see many term insurances on market offering term of up to 35 years. I am planning to wait till I am 30, so that I can get a 35-year term and I will be covered till 65 years. I believe premium gets costlier as age increases, but if a person needs a longer term, say, 40-45 years, is there any insurance e-term that covers one for 40-45 years?
- Can I change the nominee after my marriage or childbirth?
- What are the important points to be kept in mind while buying e-term insurance in online mode? It is cheaper but is there any way to get break up in terms of the claims settlement ratio of online e-terms of an insurance company? I am little skeptical that I may miss out any details while applying online. If there is any step by step procedure to fill-out the form which we can refer that would be helpful.
- Also, if a person who was a occasional smoker but stopped years back, will he come under smoker or non-smoker category? Will medical test show the person as smoker?
- Is there any relation between my salary and sum assured? Can I avail maximum sum assured even though my income is less and will the insurance company check on my annual salary and sum assured before approving?
- Karthik
- Life insurance is required only till you have financial liabilities/dependents. Normally, a person would have settled his financial liabilities /responsibilities by 58-60, by the time s/he retires from employment. There is no point in having a cover beyond this age, as one is no more responsible for taking care of the financial requirements of the family. You can change your nominee by filling an additional form after your marriage.
- You can find the claim settlement ratio of an insurance company in the annual report published by IRDA. There is no classification on the basis of mode of buying. Online policies are cheap due to absence of commission given to intermediaries or agents. The online buying procedure is such that it will automatically ask required details from you. It is a sort of interactive form where, you will not be able to skip to next step without entering mandatory details. Just make sure that you do not enter incorrect or incomplete details.
- Smokers have to pay a higher premium. Insurer would ask you several questions to categorize you as a smoker or non-smoker. You should not lie as insurer can very well detect the same on basis of lab tests. Few questions asked to check smoking statues are as below:
- Do you consume tobacco products?
- Do you smoke?
- Have you used a tobacco product in the last five years?
- Have you ever consumed tobacco products?
- Yes, insurers may not allow you to buy insurance beyond a sum which is based on your income. The insurer would calculate and inform you about your eligibility status as you start filling details online.
If you are still worried, you can call the customer care of the insurance company. They will assist you while you fill the form online.
This article was originally published on October 20, 2015.
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