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
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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.
Thanks this is gold advice.
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
Go and search LLA on youtube. They have videos on term and heath insurances. Go through It first before proceeding with any insurances
try max life. Term is mostly simple and if you take it early its best.
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 ..
Consult Ditto, they're free. You don't have to necessarily buy through them.
Go with established firms like hdfc, icici, max etc
LIC has best claim ratio around 98% as per IRDA. Though to get term policy you need lot of paper work n medical tests