Can you explain me in detail why accidental death benefit Riders in the term insurance is not advice-able to take?
I have checked some General insurance where Accidental insurance is costlier when compare to riders in term insurance. Can you give some details on this?
Mani-When we say accident insurance as a rider, then it comes with so many restrictions based on the base plan you buy from life insurance companies. By comparing premiums alone, you may feel that standalone accidental insurance may be costlier than the rider premium. However, when you look at the benefits the standalone accidental insurance offers then you understand the difference. Without going into any specific company product comparison, I suggest you to compare the rider features with standalone. You notice the difference.
Thanks Basu understand..Can you suggest whether the accidental plan and term insurance should be in the equal amount or suggest for how much we have to take cover for accidental insurance..suggest me which company to take whether bajaj or appollo munich?
Mani-No, term insruance must be around 15-20 times of your yearly income (ideally you must calcualte current value of future household expenses till your retirement and current values of your dependents financial goals). Regarding accidental, I prefer around 10 times of your yearly income. These are rough estimates. If you can afford more then opt for more.
Hi Basu,I am trying to buy a HDFC term Can you explain the below mention in the HDFC illustration.Higher Of:Illustrative Benefits on Death* 10 times the Annualised premium or* 105% of all premiums paid as on date of death or* Sum AssuredIn the event of the unfortunate death(Refer T&C pt 5) of the life assured during the policy term and if all due premiums have been paid, the above mentioned DeathBenefit will be paid to the nominee in the form of a lump sum.Death Benefit is payable only under the Base policy.
Mani-Don’t confuse. It is mandatory thing they mention. In case of term insurance it is always “Sum Assured”.