manoJ aswani
is VP at MyInsuranceClub.com
I am a permanent resident of Dungarpur district in Rajasthan. I wish to buy a term plan for sum of Rs. 50 lacs for a period of 35 years. My date of Birth is 09/01/1970 and my annual gross income is Rs. 245,000/-. Which online term plans can I buy? My resident city is not shown in the web sites of the companies which are offering various term plans. Can I still buy these plans? Also tell me the documentation which is required for such plans.
—Vishal Singh, Model Town Andheri (W)
Online term plans are cheap and easy to purchase and that is why every person wants to buy online plans today. Given your details, one of the options for you is to buy ICICI Prudential iCare or India First Anytime Plan which is available for all the locations in India. If your city is not showing in the list of cities on the insurance company’s website then do not follow up or chase that insurance company or any representatives. If the company can offer service in your city then they will add your city in the future.
Address proof refers to a document which has your name and address mentioned on it such as –
- Passport / Voter Id Card
- Ration card / Unique Id
- Bank pass book / statement
- Rent agreement
It is important that you or your family members stay at this address. So it could be your current address of stay or your permanent native address. You cannot give an address for which you do not have a proof – so I don’t think you can give the address of your in laws.
The documents usually asked at the time of application for a term plan are –
- Photo ID Proof - Pan Card / Passport / Driving License
- Passport size photo
- Income proof – Salary slips / Form 16 / ITR
- Address proof
I have a ULIP pension plan from HDFC Life Insurance Company. The premium is Rs. 15,000 annually for a period of 25 year. I am not sure if it is a good plan to wait all these years. Please advice whether to continue or exit the same.
—Suhel Joshi, Dadar West
HDFC ULIP Pension Plus plan is now withdrawn from the market, but I think it is a good plan. There are loyalty units in the plan and the charges in the policy were low. You can withdraw 1/3rd of your fund value on maturity and the rest needs to be invested in an annuity from where your pensions will start coming in. Contact HDFC Life’s customer service team and ask for your current fund value. Fund value = Total of your premiums + or minus the returns of investment minus charges. This should give you an idea of the status of your policy.
I have taken SBI Smart ULIP and the premium is Rs. 50,000 annually till 5 years. I have paid 2 premiums but I am not sure if it will fetch me good returns after waiting for 10 years. So please suggest if I should continue or quit this plan?
—Deepak Chabria, Santacruz West
SBI Life Smart performer is a unit-linked insurance plan with the new rules and charges structure. It is a good plan with low charges and you should stay invested till the end of the policy term. Please check where are your premiums being invested – equity (high risk high returns) or debt (low risk low returns) or balanced (mix of equity and debt)
Your premiums are invested after deducting the charges and the insurance company gives you the value of your fund. You will get this fund value at the end of the policy tenure. Keep checking your fund value from time to time.
(The author is Vice President at www.MyInsuranceClub.com, insurance comparison website in India. You may write to him at [email protected])