SparklyNarwhal
SparklyNarwhal

Term insurance

How did you decide cover amount? What riders you opted and if critical illness is the one, how did you decided its amount.

13mo ago
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JazzyNarwhal
JazzyNarwhal

I'm an insuramcr advisor. CI is not recommended. But take WOP instead. Don't follow the suggestion not to take any riders by some users. They just believed what they read on internet and didn't have an advisor to guide them.

SparklyNarwhal
SparklyNarwhal

Thanks, based on what I could dig up WOP(waiver of premium) is a must.

SparklyNarwhal
SparklyNarwhal

Also @Sreekanth if you could clear one more thing, does taking insurance from 3rd party (ditto, policybazaar) make any difference during claim or I should go for online purchase from their site only?

CosmicRaccoon
CosmicRaccoon

Decided cover amount on the below mentioned calculations:

  1. Cost of current education, and added inflation to it
  2. Current investment value and predicted future value of investment
  3. Current living expenses and added inflation to it

I took a cover of 2Cr. Didn’t add any rider since already had medical insurance and additional life insurance. I am paying 1260/month. I would suggest you to take annual premium as it is comparatively discounted.

SparklyNarwhal
SparklyNarwhal

Got it Actually I was confused in deciding on a critical illness rider, is it really helpful.

CosmicRaccoon
CosmicRaccoon

I am not much sure about it. But as per my knowledge, it should be helpful. I think it gives additional coverage for critical illness. You should probably get in touch with folks at Ditto. Heard a lot about them.

DerpyUnicorn
DerpyUnicorn

Ideally the cover should 20x your current annual salary.

SparklyNarwhal
SparklyNarwhal

Have you taken a rider along with?

DerpyUnicorn
DerpyUnicorn

Hey, yes. I have bought a critical illness rider as well

JumpyPotato
JumpyPotato

There can be 2 ways -

  1. Hard way : Nitpick everything and make rigorous calculations with every current expenditure, their inflation rate in future, lifestyle inflation all other various costs and come to a figure.

  2. Easy way : Multiply your current yearly base salary (not CTC) with 20. That's the amount you should eye for in term insurance

SparklyNarwhal
SparklyNarwhal

Well easy way sure sounds tension free method

JazzyBurrito
JazzyBurrito

Ideally the cover should be able to take care of your dependences expense till they start earning amount which is capable of maintaining your current lifestyle + add the amount of home loan if you have already obtained it. Feel free to connect on LinkedIn or WhatsApp at 7990744040 and can share best plans with you based on your current cash flows and liabilities.

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