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Date : Aug 5, 2008

Question

My DOB is 21.11.1972 and in good health. I wish to buy a Term Policy for Rs. 1 crore. Can you advise me which company offers the best premium and for what tenure should I take the policy for. My wife's DOB is 29.12.78 and I have one son DOB 20.09.2005> THANKS . ANUPAM PAUL

Answer

Term insurance is a pure risk cover plan, which gives you protection against the uncertainties of life. The lump sum will be a Level percentage of the initial Sum Assured means the cover under the policy remains same throughout the period of the term.
Premium for Term policy depends on age, sex, occupation, health, habits & income source. For term policy maximum tenure available is 40 years.
As far as you son is concerned we believe that first you have to take health insurance of an amount of Rs. 50000/- atleast and you need to buy term insurance plan which would protect your child's education in case of uncertainties.
But for your information there are various children`s policies available in the market. These policies are designed to provide a quality higher education to the child. It also ensures that the child is taken care even in the absence of their parents. Many policies have a benefit of premium waiver. There are payout options at various pre-determined tenure of the policy to meet specific needs of the child.
In most of these policies the life insured is the parent where the beneficiary is the child. The premium of the policy depends on the age of the proposer parent or guardian and the child.

 

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