FuzzyNarwhal
FuzzyNarwhal

Term Insurance

Which company is giving best term insurance? Till what year have people brought term insurance? What have you kept retirement age there? How useful be 1 crore term insurance be after 50-60 yrs considering inflation? I am currently 25 yrs old and was planning to buy good term insurance

16mo ago
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FloatingPancake
FloatingPancake

The purpose of term insurance is to act like a financial support for your dependents in case something happens to you.

Ideally it should be for as long as you believe that your children won't get financially settled. Once they start earning and able to cover their expenses, the insurance wouldn't make much sense.

For ex - if your insurance is till the age of 85, your children would probably be around 50-55 yrs old. In most likelihood, they wouldn't care much about the term insurance benefit as they would be already self sufficient.

IMO, the ideal age till which you should take insurance shouldn't be more than 55-65 yrs. Also, the premium will increase exponentially beyond this number.

FuzzyNarwhal
FuzzyNarwhal
Cred16mo

Thanks this is gold advice.

FloatingPancake
FloatingPancake

For sum assured, I would recommend doing it for atleast 20-25x of your annual expenses (considering a family of 4 people --> 2adults + 2 kids)

You can try optimising on sum assured vs retirement age. 1Cr will not really have a lot of value 20-25 yrs down the line. I have taken 5Cr till the age of 55 yrs at a premium of < 40k/year

DizzyLlama
DizzyLlama
Atlys16mo

Go and search LLA on youtube. They have videos on term and heath insurances. Go through It first before proceeding with any insurances

PeppyMarshmallow
PeppyMarshmallow

LLA looks trustworthy. I have been following them for some time now.

FuzzyNarwhal
FuzzyNarwhal
Cred16mo

Thanks for recommending LLA. It was really helpful.

GoofyPotato
GoofyPotato

I have a term insurance till 75 for 5 Cr, it costs 40k per year to me.

JazzySushi
JazzySushi

Which insurer is it from and at what age did you buy?

GoofyPotato
GoofyPotato

Age 22, Max Life. I bought it after having a call with Ditto.

QuirkyNugget
QuirkyNugget

Unfortunately the people who took the insurance aren't around anymore to tell you how the term insurance is.

FuzzyNarwhal
FuzzyNarwhal
Cred16mo

That’s true technically. But I was more interested in knowing till what age are people buying term insurance how much amount they are covering for.

WobblyBiscuit
WobblyBiscuit

try max life. Term is mostly simple and if you take it early its best.

SwirlyBanana
SwirlyBanana

Take Max life or tata they are good if u want to do research then look at claim settlement ratio and the value of claim settled.. tip do declare if u are a smoker or drink ..

SquishyNoodle
SquishyNoodle

I am an occasional smoker. Thinking of not declaring. How can it be an issue though - would love to understand.

PeppyMarshmallow
PeppyMarshmallow

Declare everything. Else in the event of loss of life, dependents won’t get anything

SleepySushi
SleepySushi
VMware16mo

Consult Ditto, they're free. You don't have to necessarily buy through them.

GigglyWaffle
GigglyWaffle

Go with established firms like hdfc, icici, max etc

SquishyLlama
SquishyLlama

Doesn't make sense if you are single, buy once you get married.

DizzyMuffin
DizzyMuffin

I had to subscribe a term insurance for my dependent parents. Getting wife is not necessary or sole reason to get a term insurance

SnoozyKoala
SnoozyKoala

LIC has best claim ratio around 98% as per IRDA. Though to get term policy you need lot of paper work n medical tests

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