I am 44 years old and have ICICI Prudential iCare Term Life Cover for ₹1 Crore for which the annual premium is ₹. 34000. I am the only earning member in the family. I have no debt outstanding (home loans/personal loans/vehicle loans etc. Is the term life cover adequate?
- Sundeep Mallya
Since you are the only earning member in your family, your dependents will be vulnerable to the loss of your income. This makes it essential for you to take sufficient cover. The overall cover should be enough to substitute both the loss of income and take care of important goals like children's education (if any), in your absence. Take stock of your monthly living expenses and consider an expected inflation rate and the expected life of your spouse while calculating the required cover. This will help you to arrive at a realistic amount and based on your affordability you can decide whether you need to increase your life cover.
ICICI Prudential iCare Term plan has a good record with a claim settlement ratio of 94 percent and their grievance resolution for the past financial year was 99.50 percent. However, the premium of this plan is relatively high. You may consider Max Life Online Term plan which has much lower premium. For your age the annual premium for ₹1 Crore cover (till age 60) will be approximately ₹17,300 (non-smoker) and ₹29,000 (smoker). Apart for that, the claim settlement ratio and grievance resolution of Max Life Online Term plan was 98.63 and 99.98 percent respectively.
This article was originally published on June 20, 2016.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
