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Suggestion on Term Plan

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17 Dec, 2020 by  Alok Patro

Hello Experts,

I am 30 yrs old and unmarried, I have dependant parents now.

I have narrowed down my choices to 2 options-

Option 1:

ICIC iProtect

Sum Insured- 3 Cr till 65 yrs

Payment Mode incase of deat- 2.5 lacs per month for 10 years

Option 2:

Tata AIA

Sum Insured- 2 Cr till 80 yrs

Payment Mode incase of death- Total in one go

For both cases, the annual premium is similar. I have decided to take no additional Critical Illness/accidental death rider on and above the basic plan.

I am slightly bent on Option 1 considering a higher sum insured and duration till retirement. Seek expert advice to validate my understanding and second opinion.




2 Answer

20 Dec, 2020
Bwealthy Financials

Dear Alok Patro,

The amount you quoted is way high. You only need to pay half the price.

Like you said the objective of term plan is to cover till retirement. Since you have planned for a limited pay of 10 years the duration of cover depends on whether you want to capitalise on the plan as well. The probability of getting the amount by your nominee increases as you take more term.

Max life is the leader in term plan however they give a maximum term of only 50 years ie coverage till you are 80 years of age. They have a claim settlement ratio of 99.22% . If you go for 50 years term ie coverage till 80 years , 3 crore amount and only 10 years payment the amount is only Rs 111864

Here are the premium rates of other insurance companies

Bajaj Allianz coverage till 85 years, 10 years pay 3 crore - Rs 113015

Tata AIA - 3 crore coverage till 85 years 10 years pay - Rs 126024

There are also options of 10 years pay and coverage till 99 years which almost ensures that you will get the amount. These include

1. Bajaj Allianz 3 crore, till 99 years coverage Rs 174437 for 10 years

2. Aegon life 3 crore till 99 years coverage Rs 209380 for 10 years

3. TATA AIA fir 3 crore till 99 years coverage Rs 234348

You can also pay for only 5 years then options are

Max life coverage till 80 years 3 crore - Rs 207444

Tata Aia till 85 years - 3 crore - Rs 231516

Tata Aia till 99 years - 3 crore - Rs 470112

Bajaj Allianz till 85 years - 3 crore - Rs 235070

Aegon life till 99 years - 3 crore - Rs 422255

I am happy to assist you as my company Bwealthy financial solutions Private limited deals with all major insurance companies. We are a team of doctors who help people and guide people with their insurance so that they are not fooled. You can mail me at . Happy to help you and guide you

Dr Geomcy George


Bwealthy Financial Solutions Private Limited

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21 Dec, 2020
We breathe insurance :)

Hello Alok,

There are multiple decision points you are talking about:

  1. Calculation of Sum Insured: You must do a proper calculation here. Also, ensure you opt for increasing cover so that you do not have to go through the entire process again when you want to upgrade your cover in the future.
  2. Cover Duration: Depends on when you are likely to get financially free - when you would have enough wealth and passive income to take care of yourself and your dependent family members (if any)
  3. Payment mode: Although this is a personal preference, there is a math to this - we have touched upon this in our eBook.
  4. Critical Illness cover: Critical Illness rider is convenient and can be opted for - however, ensure you understand anc compare whether the cover is accelerated (part of the life cover) or separate

You should first close each of one of these before you jump into comparing insurance companies.

Recommendation: We would recommend you go through our (free for now) eBook - The Ridiculously Simple Guide To Term Insurance ( to get detailed answers with examples for each of these questions.


Team Beshak

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