Video Tutor on how to buy online term plan of LIC’s e-Term

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• Dear sir,
  I need some information on how to save tax & where to invest to save tax. My take home salary is 57k, but don't have any savings. Pls suggest. Ready to take risk by investing in investment plans, but i don't have any knowledge.

  • Manjunath-Do you have term insurance? Then first buy it. Second understand your goals and when you need money and share the same with me. Then we discuss about investing.

• I have some basic queries about form filling which you have demonstrated.
  1) Address Proof : Which address proof is needed permanent address or for correspondence address.
  What are the different address proofs needed
  2) It is asked in declaration : Have you ever taken leave from work in last 5 years ? Do we have to consider the major leaves or minor sick leaves...sick leave of 2 -3 days

  • Abhimanyu-1) It is for correspondence address and the list will be mentioned by them on the printout of the proposal which will be available at end.
    2) Sick leaves of 2-3 days are not to mention. If you was absent due to illness which may considered as an serious illness or long leave then you need to mention it. For example fever or cold kind of diseases are seasonal and no need to mention.

• Dear Sir,

  Myself Guru Prasad, 28 yrs old/ Married. Im planning to take Term Insurance. However, I'm eyeing towards SBI e-Shield. Can you kindly let me know if SBI e-Shield is better than LIC term policy? I see 'Accidental Death cover' option under SBI e-Shield as an attractive than LIC Term Policy.

  Kindly advice on which one would be good to choose?

  Thanks in advance.

  Thanks,
  Guru Prasad Pandurengan.
  Bangalore - 560071.

  • Guru-LIC not offers any additional riders. If you are so attracted towards SBI offer then buy it. But in my view it is better to buy such riders separately.

    • Dear Sir,

      Thanks for your advice. In one of the comments section, ( http://www.basunivesh.com/2014/02/24/best-term-insurance-plans-in-india-after-1st-jan-2014/#comment-26417 ) , you have stated as "on death of assured, nominee will receive the sum assured opted irrespective of death due to natural or accidental."

      Then, what does "Accidental Death Benefit" rider option that comes in SBI E-Shield? Kindly advice.

      Thanks in advance.

      Thanks,
      Guru Prasad Pandurengan
      Bangalore-71.

      • Guru-I said as considering LIC's online term plan or plan which does not have offer you accidental death benefit rider. But if you opted for accidental benefit rider then death occurs due to accident, in that case your nominee will receive SA+Accidental Benefit Rider Sum Assured.

        • Thanks Sir. I'm clarified now.

• Dear Mr . Basu
  I have a ICICI pru term insurance where paying annual premium 19250 for 50 Lakh sum assured + 25 Lakh accident rider . this is last 5 yrs .
  Now as online term insurnace policies are cheaper even including ICICI Pru .
  Is there any solution to continue my old policy with lower premium ?
  or
  Shall i surrender my old policy and buy a new online with more sum assured( say one cr ) where i believe my premium would be around same what i paying in existing policy

  • Srivastava-By premium comparison if the current online plans are cheaper than better to switch. But do remember that to cancel the existing policy only after getting the new policy in your hand. Otherwise you may end with loosing both.

• Hi Basu,
  Thanks for your video.
  I have some questions.
  1. I am single n 25. Is it possible to change the nominee details at later point of time after taking policy?
  2. If I opt for Online term policy, is it possible to change the address details later? Do we get any online account where we can modify stuff or should send letter to LIC in offline mode?

  3. My parents has diabetes and low BP which has common for aged people but apart from that there health is good and does there daily job well.
  Do I need to mention the status of their health Good or Not Good?

  4. I did not understand this point. Why do they reject the claim if they see some medical records are false at the time of claim.
  They do have medical test and why don't they learn from the medical report and report the insurer that you need to correct the record and pay premium accordingly.
  Do we have any policy that will make sure insurer are not get affected by false rejection by company?
  I have also learnt somewhere insurer company are not supposed to reject stating false medical details as they are bound to verify it during the first two year. Can you throw some light?
  There can be case where insurer believe they have given correct details but then if the claim is rejected then there is no point in paying the premium for so long and thinking dependents would be safe if something happens n they may suffer a lot.

  5. I have checked the premium is bit high compared to other online term plans. I understand LIC has high settlement ratio. but Frankly do you recommend LIC term plan? Do you see any hidden points?
  Is it worth and safe bet?

  Request your reply to all points and on point number 3 n 4 particularly( Give more details on point 4).

  • Elam- 1) You can change at any time and there is no limit for changing to. So free to change as and when you wish.
    2) You can change address also. But whether you can do it online or offline is question still need to check as this is recently launched plan and I am not sure how they set up such service related issues, especially for such online plans. But you can change it at any point of time.
    3) Better to disclose it.
    4) Your point is valid. But in some cases few intentionally hide some critical health issues as insurers not asked for the same. But in reality it is your job to be free and frank. This automatically will lead peace of mind. Why can't we disclose it and be at safer than complicate ourself?
    5) In my view claim settlement ratio itself is a false process of judging the insurance company. There is no such data where we can judge that how many term insurance claim each insurance company settled. LIC have highest claim settlement ratio, but do think in that how much is the % of term insurance products? I think it is hardly less than 1% too. So I don't think only with brand you can go with LIC. Instead your comfort with company, how well are they equipped for servicing and price. So to me disclose all things at your end and buy with sustained brands (including LIC), choose a plan.

• Excellent work Basu.. keep up the good work ..

  • Sreekanth-Thanks for your encouraging words :)

• Hi Basu ;

  I need your help to choose right mutual fund (SIP) to invest .
  My target is after 25 years i need aleast 1 Cr.

  Right now I am having
  1) HDFC Top 200 fund – 1000 rs
  2) DSP BlackRock Top 100 Equity Fund-1000 rs
  3)Franklin India Bluechip Fund-1000 rs

  Is the Mutual fund selection is right ?

  Now i want to invest 2000 rs more so let me know which fund will
  give good returns . I have 3 funds in my mind . U can suggest other mutal funds also.

  1) IDFC Premier Equity Fund-Regular Plan-Growth
  2)HDFC MID-CAP OPPORTUNITIES FUND – Growth Option
  3) SBI magnum

  Regards
  Nilesh Salunkhe

  • Nilesh-I already replied to your comment on my blog post "Best 10 Mutual Funds to Invest in India for 2014". Please check it.