Term plan query

POSTED BY Sanjay Sutar ON October 3, 2010 9:23 pm COMMENTS (8)


I am planning to take Term plan for 1 crore.

One of my friend suggested me an idea :

  • Take LIC term plan for 25 Lakhs first
  • Then go for any other reputed Term insurance company for remaining amount of 75 Lakhs

Doing above would have following benefits:

  • If LIC settles down the claim, the other company has to accept the facts and evidences and also has to settle the claim

Just wanted to find out how much true is the above fact ?

Thanx in advance.

8 replies on this article “Term plan query”

  1. sidrana7 says:


    Just read an article on subramoney blog. check this out. http://www.subramoney.com/2010/10/which-medical-insurance-should-i-buy/

    Not exactly what you after but a good enough discussion on term plans. I like when Subramoney says buy term plan from a general insurer which does not care about its share holders.

    I believe Jeevan Amulya does not have any rider on the term plan. in that sense private players offer some riders.

    Hope you find your solution.


  2. rakesh says:

    You can take Amulya Jeevan Plan for 25 Lakhs and do your own research from the other companies for the remaining 75 Lakhs. LIC’s claim settlement ratio is very good. For other companies i won’t be able to comment, you can refer the IRDA site. I have had bad experience with ICICI and AGEON and have cancelled my term plan due to poor customer service. I still have Amulya Jeevan plan will be invested in it.


    1. Sanjay Sutar says:

      Price difference is around 3K-4K.

      I think apart from LIC, Kotak and SBI are good option.

      What do u say ?

      1. vazzy says:

        I think so yes. went for one term policy each from SBI and Kotak after surrending my LIC endowment plans

      2. sidrana7 says:


        Is the 3k-4k difference between LIC 25L v/s Others 75L?
        I doubt this much difference is between 25L LIC v/s 25L private?


        1. Sanjay Sutar says:

          Hi sidrana7,

          For 25 Lakhs or any same amount, the term plan rates vary by 3K-4K.

  3. Yes, if one company has settled any claim, the other other generally settles their claim application also, for the same investor. But this is not a hard rule. For higher S.A., there will be medical tests & one should not hide any information which increases in risk of life.

    If the other company later founds that the person had hide something in the beginning from the company, they can reject the claim, even if other has accepted on same ground.

    The summary is “DO NOT hide anything and no one can stop claim.”

    Hope it will help you.

    1. sidrana7 says:


      I will say this is a definite Grey Area and a lawyer only can help you find an possible clarification based on the fine prints of LIC and other insurances companies. Again these terms and conditions are open to changes anytime from the Insurers.

      Personally I will be wary of accepting blindly that a claim accepted by an GOI Insurance subsidiary may be plainly accepted by private insurer. Both do have separate claim processes and reasons/grounds for rejection.

      Exactly how much is the Rs difference in the policies? If you pay the annual premium it will be lowest of the quotes. Will that price difference be worth of such a risk?

      Good luck.

      P.S. Hurry up the more you wait the more you pay in premium, in regards to term plan because you cant stop ageing. 🙂

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