I have only an endowment policy. Should I buy LIC s e-Term Policy (Pure Term)? I am 47 years old.
- Nawang Dorje
Endowment insurance plans are expensive. They mostly fail to offer adequate insurance cover and they don't offer good returns either. Though you will make losses, it is not wise to continue investing in the product. You must consider surrendering the endowment plan and buying a pure term cover. You can invest any surplus premium in an investment product. .
In future do not buy an insurance cum investment product for insurance and for investment purpose. Term insurance is the only insurance product you should buy.
You need to consider that the premium of LIC term plan tends to be expensive as compared to other private insurance if you compare with companies who have had good claim settlement record. We have provided the annual premium of two private companies (47 years, non-smoker) for a pure term cover of ₹1 crore for 13 years (so that it will cover you until your retirement at 60):
Max Life Online Term Plan: annual premium of ₹30,000 (claim settlement ratio of 98.63 per cent) (Exclusive of Service Tax & Education Cess)
Aegon Religare iTerm Plan: annual premium of ₹35,000 (claim settlement ratio of 96.59 per cent) (Exclusive of Service Tax & Education Cess)
LIC's e-term plan : annual premium of ₹38,600 (claim settlement ratio of 95.99 per cent) (Exclusive of Service Tax & Education Cess)
Always remember to disclose all the details while filling proposal form to avoid any inconvenience in future while making a claim.