VR Logo

Can I buy a pure risk insurance for my new born?

The real purpose behind buying a life insurance cover is to take care of the financial needs of your dependents

Given the not-so-good news in the markets at the moment, is it advisable to invest in a pure-risk policy (1 crore for my new-born)? Is LIC safer than HDFC (premium cheaper)? Please advise.
- Roopin Ram

It looks like you are confusing investments with insurance. The real purpose behind buying a life insurance cover is to take care of the financial needs of your dependents in the event of your death.Your newborn child does not need an insurance cover. Insurance can't compensate for the emotional loss of losing your child. It is only meant to compensate the loss of income. Therefore, you should get an adequate life insurance cover for yourself so that the financial needs of your family including your baby, will be taken care of in your absence. Buy a pure term insurance plan to secure a larger cover now that your family has expanded.

All insurers, be it HDFC or LIC have to abide with the guidelines laid by IRDA. Both HDFC & LIC have a good claim settlement ratio in the past. On comparison, HDFC has easy accessibility, lesser formalities, and has lower premium.

You may consider online term plans such as Max online term plan, Aegon Religare iTerm Plan and HDFC Click2Protect. Find out the premiums applicable for your age under all these policies and select the one that suits your budget.

Post Your Query