I have turned 40 in 2015. I have taken Anmol Jeevan – Sum insured 10 Lacs – Start date Feb 2011 – Yearly premium 5980 – Ending 2035 and Amulya Jeevan – Sum insured 50 Lacs – Start date Mar 2013 – Yearly premium 31000 – Ending 2045.
I have come across Tata AIA term insurance in which I will get 75 Lacs cover and I have to pay approx 80000 yearly premium for 5 years. After 5 years no premium to be paid and cover would be valid till the age of 80 (till 2055).
I am thinking of stopping two of the LIC term plans and start Tata AIA term plan. Please share your views on the same.
Parmar-The biggest surprise to you is that the guys who are NOT selling you TATA AIA term insurance. But a typical endowment plan. I have to salute to the selling tricks of Tata AIA sales team. Do you know the cost of term insurance these days from insurance companies? They are too cheap. If your age is 40 yrs and coverage is Rs.1 Cr then it will not cost more than Rs.30,000 (from LIC online term plan). I mentioned LIC’s term plan here to company, because LIC’s term plan is costliest in India. Then how can the not so settled insurance company offer you a term plan at Rs.80,000 a year.
I am sure that they are selling you either ULIP or Endowment plan but not TERM INSURANCE. Beware…
Dear Basu. The Tata AIA term plan I am referring here is iRaksha. As per the website this plan is – Online term insurance with return of premium. Here what I understand is I have to pay 80000 for 5 years and I will be covered till the age of 80. So, I will pay 4,00,000. While if I continue the LIC term plan I will pay every year till the age of 70, that would be 11,00,000.
Request your views.
Do feel they are offering you this at FREE? Second thing, I am not comparing this product to LIC. Do you feel it is worth to pay Rs.4,00,000 now is more beneficial than paying yearly of Rs. 30,000 bad? Money in your pocket for next premiums is best than paying money now wholly to them at once and surrendering whole premium to them.
Also, return of premium is worst idea one looks while buying term insurance. Rest is left with you.