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Certain Benifits Should Not Be Deciding Factors For Plans

Monday, March 09, 2015
By Manoj Aswani

Manoj Aswani is VP at MyInsuranceClub.com

I am 25 years old and I can save up to 14,000 /- p.a. for a period of 20 – 25 years, which policy should I buy? I was recommended LIC Jeevan Anand Plan. Can you explain the death benefit and riders of LIC Jeevan Anand?
—Ramesh Kumar, Andheri

Death benefit: On Death during the policy term: Death benefit, defined as sum of Sum Assured on Death and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, Sum Assured on Death is defined as higher of 125% of Basic Sum Assured or 10 times of annualised premium.

On death of policyholder at any time after policy term: Basic Sum Assured

Benefits payable at the end of Policy Term: Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

LIC's Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium during the policy term. In case of accidental death during the policy term, Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.

I am 40 years male and non smoker. I need to buy a Term Plan for myself. I read that Religare Aegon iTerm plan less than Rs. 50 lakhs does not require medical tests. Is it true? Which are the other term plans I should compare or consider?
—Ganesh Puri, Colaba

Insurance companies waive the medical test up to certain sum assured limits. there is no requirement of medical tests. But that should not be the deciding factor for opting for this plan. Because, you might still be asked for a medical test if the underwriting team feels so. It is always better to go for a medical test and allow the insurer to do some basic checks on your medical background. If there is any issue with your health or medical history, then it will get flagged off at the time of application. Other Plans would be

  • Reliance Online Term Plan
  • HDFC Life Click2Protect Plus Term Plan,
  • Max Life Online Term Plan

I have a LIC Jeevan Anand policy with Sum Insured of 10 lakhs and an annual premium of Rs. 25,152. Is it advisable to continue with the policy?
—Sameer Jadhav, Charni Road

LIC's New Jeevan Anand Plan is a participating non-linked plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival.

It is a good plan and you should continue paying the premiums.

I have a family floater of Rs 5 lakhs and my company covers me and my family for 2.5 lakhs medical, but I want to increase my family coverage to about 12-15 lakhs ie.5 to 7 lakhs more. What are the options available?
—Kundan Kumar, Thane

There are quite a few options that you have to increase your coverage.
1)    Increase your existing Family Floater Plan by another 10 lakhs
2)    Buy another Family Floater Plan from the same company or a different one for Rs 10 lakhs
3)    Take a Top Up or a Super Top Up Plan.

Among the 3 options mentioned, the best Option is to go for a Super Top Up Plan as you would be able to effectively be able to increase the coverage without much increase in premium and heavy medical requirements.

A Top Up Plan provides for coverage of expenses arising from a single illness or disease in one year but only after the initial cover has been exhausted and the premium is usually much less than normal plans.

A Super Top Up Plan provides coverage of expenses for all illnesses in one year after the certain threshold level has been exhausted. This limit is called Threshold Limit.

The premium for a Top Up Plan or a Super Top Up Plan is usually much less than a full-fledged Health Insurance Plan.

Bajaj Allianz Top Up Plan, Star Health Super Surplus Plan, United India Top Up Plan and United India Super Top Up Plan are some of the common Top Up and Super Top Up Plans that are available in the industry.

(The author is Vice President at www.MyInsuranceClub.com, insurance comparison website in India. You may write to him at
[email protected]).

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