Breaking News
Home > insurance > Why You Should Go For Term Plans With 50 Lacs Cover Or More?

Why You Should Go For Term Plans With 50 Lacs Cover Or More?

Advertisement

If you are planning to buy an online term insurance than here are few things that you should consider before going ahead with your purchase. The very first thing that you should consider while buying a term plan is your Sum Assured (Risk cover against death of the insured). Try to keep your sum assured higher than Rs 50 lacks, as most of the insurance companies offering discount on premium where sum assured is Rs 50 lacks or more.

We all believe moving our sum insured on higher side takes our policy premium go up. But as I mentioned above, when you go higher than Rs 50 lacks you get discount on your policy premium and you get higher sum assured at premium equal to lower sum assured.

itermplan

Advertisement

Here are few example which will help you understand the concept little better:-

Aeogon Religare

Premium Payment :- Annual

Policy Term : 30 Years

Age : 27 Years

Sum Assured Annual Premium
Rs 40 Lacks Rs 3800
Rs 50 Lacks Rs 3300

Aviva iLife

Premium Payment :- Annual

Policy Term : 30 Years

Age : 27 Years

Sum Assured Annual Premium
Rs 40 Lacks Rs 4955
Rs 50 Lacks Rs 3958

Bharti AXA

Premium Payment :- Annual

Policy Term : 30 Years

Age : 27 Years

Sum Assured Annual Premium
Rs 40 Lacks Rs 4000
Rs 50 Lacks Rs 3250

As you can see above, in case of all three company, annual premium of the insured reduces on increasing sum assured from Rs 40 lacks to 50 lacks. You must be wondering why insurance companies offers high sum assured at lower premium?. So the answer is as sum assured moves up, most of insurance companies make it compulsory for the insured to go for a medical test. This medical test helps insurance companies to assess the life expectancy of the insured.

If you compare insurance companies who do not have requirement for medical test for term insurance plan are offering you same term plan at higher premium like in case of ICICI Prudential iCare Term Plan.

We will bring you the latest updates on the same as they happen. Stay tuned to Fingyan by following Fingyan Official Facebook Page and sign up for our free newsletter.

Advertisement

Leave a Reply

Your email address will not be published. Required fields are marked *

*