Frequently Asked Questions: Term Insurance

31) I bought a term insurance plan of Rs. 50 Lakh in 2010. My salary has increased and I want the amount to be Rs. 90 Lakh. Should I buy another term plan of Rs. 40 Lakh or is there a way to increase the amount in the existing plan? Which will be cheaper?

You have no options but to buy a new policy. As there is good competition among Life Insurance Companies you can contact good Insurance Brokerage Firm and you can get a good economical product. Other terms remaining equal 2 policies is a better bet as consolidating into a new policy of Rs. 90 Lakhs may have negative point. In the event of lodging of claim for Rs. 90 Lakhs in first 3 years of new policy your nominee may face difficulty in claim settlement.

32) I bought four endowment plans four years ago and the total premium outgo is Rs. 60,000. I recently realized that term policies are cheaper? Should I stop the four plans and go for a term plan?

Do not do it – take long term perspective and go on paying.
If possible you can buy term insurance policy with premium of Rs. 20,000.

33) I paid premiums for my policy for 17 years and then stopped paying since January 2007. I would now like to pay the premium and make my policy active. How do I do that?

Approach your insurance company. They are desperate for premium. I am sure they will do something which will be in your interest.

34) I pay an annual premium of Rs. 3.5 Lakhs for my LIC policies. Can I get these policies converted into online plans to save on the commission being paid to the agent?

Now you can not do it. For existing policies charges will be same whether you pay online / cheque / cheque through advisor, who sold the policy to you.

<< 1 - 2 - 3 - 4 - 5 >>