I m looking for a term insurance for both me and my wife. I have read your previous advice of splitting between 2 companies. I m thinking of a ₹50 lakh policy from LIC and another ₹1 crore from a different company. I need one which covers accidental disability and pays a monthly income in case of permanent disability.
- Prashant Yelsangi
If you are buying a large term insurance cover, it is wise to split the cover between two different insurance companies to diversify risk. Permanent & Partial Disability riders are helpful in case you are disabled due to accident. In that case most of the policies pay for next 5-10 yrs a certain percentage of Sum Assured. This rider provides you with income in such cases. But do note that the rider is helpful only in case the disability happens due to accidents. Read the policy document of the company carefully to understand the exact wordings on these riders.
You can try out the combination of a pure term life insurance cover plus a standalone permanent and temporary disability policy. Take a decision based on your personal requirement.
Term plans should be selected after taking into account the claim settlement record of the insurance company and comparing the premiums offered by the insurer against competitors. You need to bear in mind that the premium of LIC term plan tends to be expensive as compared to covers from other private insurers, even if you compare with companies who have had good claim settlement ratio in the past. Based on these factors, Aegon Religare iTerm Plan, Max Life Online Term Plan HDFC Life Click2Protect are recommended to you. All these plans can be bought online.
Find the premiums applicable to your age under all these policies and select the one that suits your budget. Disclose all the details while filling proposal form to avoid any inconvenience in future while making a claim.
This article was originally published on March 17, 2017.
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