Home |Life Insurance |
If the difference between a term plan and a return of premium plan is 700rs per month for 40 years, for a same cover, is term plan still a better one?
If the difference between a term plan and a return of premium plan is 700rs per month for 40 years, for a same cover, is term plan still a better one?
Share
Shailesh Kumar, Co-founder, Insurance Samadhan 
Answered on November 02,2021
Dear
Yes , term is always better .
Why should you pay extra . Save the money in mutual fund and you will get appreciation to cover all premium paid for term insurance .
Never buy term in monthly mode , you are paying 8% more . Pay under annual mode and reduce your premium .
Hope this clarifies
21 views
Related Questions
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on January 01,2022Shouldn't we consider inflation while calculating the insurance cover? Because considering a life cover of 30 years or any no of years, inflation will play major role in evaluating the value of insurance cover one has.
Dear Sum assured is taken on the basis of your income generating capacity today. In future you may earn less ...
1
0
106
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on February 14,2022What is difference between Term Insurance and Life Insurance?
Dear Term insurance is a type of life insurance where sum assured is paid on death only and there is ...
1
0
59
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on May 05,2022What if my private company has provided me health and term insurance of good amounts? Shall I still buy the personal insurance now or wait for some years until I quit the company and then buy the personal health and term insurance?
Your group insurance is a rented property . You have it till you are part of group . You ...
1
0
70
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on October 13,2021An LIC agent told me that if I invest 5 lakh per year for 5 years in SBI Life Retire Smart scheme, then from 10th year onwards I will get 40000 per month pension for rest of my life. And after our expiry (me and my spouse), nominee will get the Corpus amount. Is it true or Am I missing something? How to verify it?
Dear You have been given wrong information through mis-selling . Facts are stated below : SBI Retire Smart is a Unit Linked ...
1
0
1957
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on October 18,2021If we are taking a life insurance cover of 1 Cr, what should be the average amount for the riders? (Critical Illness and Disability Addon)?
Dear As per IRDA directive , maximum amount amount on rider can not exceed more than 30% of the premium ...
1
0
50
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on January 05,2022In a term plan we are paying premium every month for the coverage but what if a person face death early (say after one year only of taking life insurance) in the period so he has not paid the amount of the coverage so will his family be getting the full coverage amount?
Yes , claim will be payable .That is the purpose of Insurance to cover the risk of uncertain event ...
1
0
73
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on November 17,2021If I die after just 2 years of life term insurance, am I guaranteed to get the full amount?
No , as per Section 45 a claim can not be repudiated after payment of 3 annual premium and ...
1
0
147
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on December 17,2021If i bought a term life insurance and I end up paying till maturity age. What's my benefit then ? will I get any premium ?
Dear Pure Term Insurance offer sum assured on death only and nothing is payable on survival . However , there are ...
1
0
43
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on December 11,2021If a person dies and does not have any life insurance or cover but he was a tax payer, is he eligible for any kind of benefits from IT department?
Dear There is no benefit from Income Tax Department , but other countries provide benefits to Tax Payer.
1
0
44
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on April 17,2022If my father has already taken an life insurance for me and if I also take another one separately. Is there any problem?
There is no problem . Please declare the details of old policy when you apply for new . As you ...
1
0
135
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on January 01,2022I'm still a student and my age is 23. I want to buy a term insurance now so that my premium remains low. So can I still buy a 2 Cr sum insured term insurance without actually securing a job?
Dear No , you are not eligible for Term Insurance of more than Rs 10 lakh. For higher sum assured , ...
1
0
20
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on September 17,2022If I buy a term insurance plan from any insurer and unfortunately the company gets shutdown in the middle of term then what happens to my insurance policy, will it be active or not for the entire term?
Dear As per Insurance Act , no insurance company can shut down . At the most , another company would ...
1
0
163
-
Shailesh Kumar
Co-founder, Insurance Samadhan . Answered on December 07,2021I am a handicap person, and this disability exists since my birth. My annual income is 4.5 lakh. I have tried to cover myself, but because of disability no company is ready to cover me. They reject me at the stage of medical checkup. What should I do?
Insurance has a risk and underwriters accept the risk on the basis of facts given in Proposal Form . So ...
1
0
39