Term Insurance


I am 30 years old and have 2 LIC money back policies in my name (New Bima Gold of SA:15L for 30 years paying monthly premium of 4556 from July 2009 & Jeevan Saral of SA:12.5L for 25 years paying monthly premium of 5260 from Sep 2009) and 1 in name of my 2 years old daughter (Jeevan Tarang of SA:10L for 20 years paying monthly premium of 4220 from May 2010).
New Bima Gold has Extended Term cover benefit of 7.5L & Accident benefit of 15L.
Jeevan Saral has Death and Accident benefit of 12.5L each.
Futther i wish to take Term cover of 50L-1Cr.
There is a Condition in both of these policies which says, ” In addition to Sum assured under Basic Plan, an additional sum equal to the Accident Benefit Sum Assured shall be payable under this policy, if the Life Assured ………… However, such additional sum payable in respect of this policy shall not in any event exceed Rs. 50L taking all existing policies of the Life Assured and under individual as well as group schemes including policies within built accident benefit taken with Life Insurance Corporation of India and other insurancecompanies.”
I have some Qs regarding this statement.
Does this mean if i take a Term cover of 50L and in case i am not around in future my family will only get 50L and not the benefits of other policies which i have taken including the group scheme of my employer company?
If such is the case some part of the premiums which i am paying at present for these benefits is a total loss for me?
And in case if i take a Term cover of more than 50L, then also will the benefits to my family will be limited to 50L only?

One reply on this article “Term Insurance”

  1. Dear Arvind, the said clause for accidental rider part only & not for the main sum assured. In simple words, the accident rider from these LIC policies ‘ll limit it’s amount to the extent that all of your accident riders be it from LIC or other insurer as well as group accident polices sums up to 50L.

    For example, your employer is providing a 50L accident (I repeat accident) cover, then these LIC policies ‘ll only provide the basic sum assured of each policy & no money for accidental riders.



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