Which type of policy (Term, Med, Accident, CI) is really useful and how to decide?

POSTED BY Vijay G ON June 24, 2013 4:09 pm COMMENTS (6)


I have been asked to purchase the following types of policies,

Term Insurance – 1cr for self and 50L for spouse.
Medical Insurance – 5L family floater.
Personal Accident Policies – 1cr for self and 50L for spouse.
Critical Illness Insurance – 5L.

I am in the late thirties. Me and my wife are working members of the family. We have company insurance coverage.
I am spending a lot of time trying to think if this is really needed as the premium itself comes to 60,000/- per annum.

Please suggest.


6 replies on this article “Which type of policy (Term, Med, Accident, CI) is really useful and how to decide?”

  1. Bunker says:

    How different will be the personal accident policy from the term insurance? Is it more related to permanant disablement from an accident hence policy pays the policy holder?

  2. healthinsuranceshoppe says:

    You can avoid CI policy here.

    Rest all are good recommendations.


  3. VijayG says:

    Dear Ashal,

    Reading through various threads on Jago site, I understand that,

    Term policy is typically 10x of the yearly expense.

    Accident – I don’t have a calculation, thus asking. Though I do not do a travelling job, it is typically home to office and back.

    CI – I don’t have a calculation, thus asking. No medical history like Angelina Jolie.

    Medical Insurance – I see that it is recommended you take this even if you have a company coverage. Thus taking it.

    Thanks & regards

  4. Dear Vijay, how did the planner in question arrive on these figures of sum assured for each type of policy? Was there any calculation based upon your income numbers or was it a comfort number for both of you? Accident Policy of 1 Cr. Rs. – Are you in extensive travelling Job or remain on Road for most of the day or in a high accident prone job so that the risk of accident is high in your job?

    Please clarify.



  5. VijayG says:

    A Finance planner recommended that to cover all possible risks, it is recommended to take all these. What is your recommendation on deciding between these? What criteria do you look at before taking a call?


  6. Dear Vijay, who asked you to purchase such insurance? Any paid financial planner? Any insurance agent? Any bank Relationship manager?

    We can not comment with out knowing the background of your query.



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