Different scenarios of long term insurance. Want a real life example.

POSTED BY Gaurav ON May 6, 2012 9:38 am COMMENTS (2)

Hi folks,

Could anyone please provide with a real life example of :

scenario 1 – life term + normal health policy
scenario 2 – life term + accidental policy + CI policy

and under which circumstances each would work?

Thanks and regards,

2 replies on this article “Different scenarios of long term insurance. Want a real life example.”

  1. Dear Gaurav, please read my reply in addition to dear Kunal’s reply –

    Term Plan & Health plans are must for every one. The persons who are more in travelling jobs, Personal Accidental Plans are again must. For persons where there is a family history of critical illness, CI plans are must.

    Please check where you stand for your own life.



  2. Kunal Roy says:

    Scene 1 –
    Life term insurance – a person dies, nominee gets the money
    Health policy – person is sick and need to be hospitalized then it will cover the hospital costs based on the terms in contract and upto the limit specified.

    Scene 2 –
    Life term insurance – a person dies, nominee gets the money
    Accidental insurance – This has several sub divisions – permanent disability/ temporary disability or partial disability and you get paid according to level of disability as stated and also it covers your loss of income upto few months(differs from scheme to scheme).
    CI – If you are diagnosed with any of the CI as specified in the policy and it is clear that you didn’t know about it earlier and it has been diagnosed only now then you will receive a lumsum amout(policy amount ) and you can do your treatment.

    Scene 2 is much better with a health policy as you will be covered against all dangers. In my personal opinion a breadwinner of the house dies it is still better than if he has an accident and loses limb and has to be confined to bed or is not able to do any work and become helpless and also a burden on the family. But this is taken care by accidentalpolicy which don’t let you become a burden as it pays a lumpsum amount in case of disability. even if there is a fracture and aperson can’t work for a few days the loss of income will be compensated. Plus if you have a health plan to take care of the hospitalisation expenses in case of any illness or accident it is a plus as you don’t have to ask for any money at the time of need. CI can be purchased clubbed with life insurance policy as well but mind you it pays only for specific illness and nothing for others so it is an advantage ove health plan but can not replace the health plan..

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