Are you properly insured? Are the policies that you have taken sufficient to take care of your near and dear ones in case of anything untoward and unexpected?
Insurance and investment consultant Jigessh Patel answered many such queries during a chat on Wednesday. Here is the transcript:
JIGESSH PATEL says, Hi everybody. This is Jigessh here. let's chat.
Kausik asked, Can we depend on private insurance players like ICICI Prulife or Metlife?
JIGESSH PATEL answers, Yes you can totally depend on all the private players such as ICICI, Prulife and Metlife as all the insurance companies are strictly regulated by IRDA and also all the foreign insurance companies are amongst the best in the world. Also most of your sum assured is reinsured overseas.
Subrata asked, I am 26, married for last 1.5 years and both of us are working & no kids still now. I am looking for pure term Insurance for my Family which should be able to cater to the following needs in case of an unfortunate event: 1) Meet daily requirements of my Family for next 28-30 years 2) Get a House(with all accessories), Car for them 3) Take care of my Childrens() educational needs as well as their Marriage needs. Our present expenditure in 43,000 pm which includes some EMI on personal loans & a monthly retirement savins of 3,000 pm. What amount should i be looking for TERM Insurance?
JIGESSH PATEL answers, You require a term cover of at least 15 times of your annual expense to take care of inflation too. You should take separate cover to insure your personal loans.
Sindhu asked, Hi, I am sindhu,a housewife with a 2 year old.My husband earns Rs.35000pm.We do not have any insuance policy till date. Which one should we take and how should we plan cover or investment for the baby for her future?
JIGESSH PATEL answers, You can go for a term policy of Rs 50 lakhs or an ULIP policy which will take care of investment for your baby's future too.
Parag asked, How can I safeguard myself for accidental death
JIGESSH PATEL answers, Please go for a personal accident insurance policy. It is normally 10 times your annual income.
Udayan asked, Is there any insurance, which will avail maternity insurance cover
JIGESSH PATEL answers, There is maternity insurance cover which is normally given only to corporates under group medclaim package.
Gummi asked, Dhrumil, Private owners are also okay. Govt. of India has rules and regulations to ensure that private companies don't run away with your money. What you need to be careful is whether the Insurance company is a reputed one and will process claims quickly without hasseles.
JIGESSH PATEL answers, Kindly declare correctly all the facts related to your health and finances on the application forms while buying the policy so that the insurance company cannot reject your claim.
Kausik asked, Hi I am Kausik, I am 29 years old married and having a one year old daughter. Currently I am having One Endowment policy with SA 400,000, One Money Back policy with SA 300,000 and One Pension Policy with SA 275,000. Cumulatively I am paying premium of Rs. 44,000 PA. How much Insurance do I need at this age? I am looking for a good Term Plan and a Kid's Plan. CAn u suggest?
JIGESSH PATEL answers, Ideally your sum assured should be 20 times your annual income to account for inflation or at least 10 times your annual income to cover today's financial hazard in case of an eventuality.
Dhrumil asked, Since insurance is a long term thing and it is to benefit our loved ones incase of our unfortunate death, can we rely on private players for Term Insurance or should we stick to state owned companies?
JIGESSH PATEL answers, Most of the private players have tied up with top insurance companies of the world which are more than 100 years old. Also the local partners are in the business for long. Therefore, they would lot of care in protecting their reputation.
Gummi asked, Hi all. I am gummi. I think the best insurance plan is the Term Plan
JIGESSH PATEL answers, It depends on what situation you are in at present. For the young, who do not have many financial obligations, term plan would not be advisable because normally most are not motivated to continue after a few years. It is better to go for a whole life ULIP plan.
Sachdevb asked, My Age is 29 and I have policy with SA approx 9 lacs. What is the Ideal figure that I should be insured for ?? Well I am the only Bread earner of the family and have a Daughter, wife and Father as my Family members
JIGESSH PATEL answers, Ideally, you should be covered for 20 times your annual expenditure (keeping inflation in mind) or a minimum of 10 times your annual income.
Babu asked, what are the advantage of ULIP compare to other Insurance policy?
JIGESSH PATEL answers, The premiums are lower than regular endowment plans. There is more flexibility in paying options, like premium holiday The policy charges are lower Therefore, the benefit of the returns is passed on to the policyholder and the returns are expected to be higher than an endowment policy. ULIP plan returns will normally beat inflation of 6% while regular endowment plans are not giving more than 6% The capital will be eroded. In ULIP plan, you have the option of getting the choice of investing in equity like Mutual Funds.
Pranshu asked, my mother is 50yrs old. i want a good medical/health insurance for her, which is the ideal one?
JIGESSH PATEL answers, I would suggest you go with New India Insurance.
Rakesh asked, My age is 31 & as of today, I have three ins policies totalling to Rs.16.50 lakhs. Do you think this is enough as I am already paying Rs.85,000 as annual premium on all these policies
JIGESSH PATEL answers, You need to mention your annual expense to get the correct sum assured and investment amount.
Bharat asked, what u want to say regarding Insurance Sector.
JIGESSH PATEL answers, It's a growing sector. We expect a bigger growth in the health insurance sector.
Ashwin asked, Jigessh, i wanted to invest in a term assurance policy . Which is the policy that has the lowest premium per lakh.? Do you have any policy in mind.?
JIGESSH PATEL answers, SBI Life is one of the lowest. Different companies have competitive offers for different age groups and varied sum assured brackets.
rohan asked, if i wnt 2 big insurance cover shld i tk i ulip with high insurance cover or a pure term plan
JIGESSH PATEL answers, I would suggest you go for ULIP because it is a long term plan like a Test match whereas a term policy is a limited term plan, like a one-day match. It is better to for a permanent plan as the health standards are expected to change with age. International service shows approximately 80% term plans lapse before maturity.
Pranshu asked, pranshu again sir, does the New India Assurance also ask for medical tests after the age of 45. If yes what are the kind of tests.
JIGESSH PATEL answers, Yes it does. They will provide you the list of medical tests required.
Sid asked, Incase of TPA's in health insurance,what happens in case of disputes?are the tpa's qualified to handle them?
JIGESSH PATEL answers, In case you are not happy with the TPA, you can complain to the insurance company in writing. In case you are still not happy with the answers, or there is no reply within a month, you can approach the ombudsman for a fair solution.
Niku asked, should we take insurance for people above 50 years
JIGESSH PATEL answers, yes, of course.
Mayank asked, I am now 35 years old with a 8 years son and 3 years daughter. Working in abroad. I have LIC policies worth 850,000 for self and 150,000 for my wife and son. I wish to know the reasonable amount of sum assured. Also I would like to know about medical insurance policies on which we can genuinly rely.
JIGESSH PATEL answers, Your ideal sum assured should be 20 times of your annual expenditure to take care of inflation or 10 times your annual expenditure. For medical insurance, it is better to take the local medical policies of the country you are working in.
Niku asked, should we take insurance for wife if she is not working
JIGESSH PATEL answers, Insurance is mainly purchased with the objective of protecting future income flow to the family. If the wife is not a financial contributor, it would not be advisable to buy an insurance policy for her.
Niku asked, should we combine insurance with investments
JIGESSH PATEL answers, Ideally no.
Vipin asked, What do we do if an insurance company is giving us a run around for a simple thing like canceling a rider. It is allowed as per the policy document but the company in question is asking me to send the request exactly 30 days in advance of the next premium due date, not later and not even earlier. I am not going to be in the country around that time and there policy of not submitting an application earlier than usual beats me. This is a private company and I am surprised by the quality of their service.
JIGESSH PATEL answers, You can always give it in advance stating that you want the rider cancelled effective from a certain date as per the policy clauses. take a stamped acknowledgement for your safety.
Rizwan asked, my parents are 75 yrs old. i want a good medical/health insurance for her , which is the ideal one? Is their any age restriction for medical/health insurance.
JIGESSH PATEL answers, At 75, you won't get any mediclaim policy.
Anurag asked, I am 31 yrs & with 2 dependents. Looking for a mediclaim policy. How much amount can be a taken as an optimum coverage for family?
JIGESSH PATEL answers, You can take a sum assured of Rs 5 lakhs for yourself and two dependents. You will get upto Rs 10,000 tax benefit.
CVR IYER asked, I have three insu policies two with LIC and now recently during March 06, i took one policy from TATA AIG. Now I am 49, they made me go thru hell by having repeated medical tests due to high SGPT / SGOT in my blood level plus sonography. then they increased premium and reduced the units (NAV). after two months they dispatched the policy. after reading i found that torrorism cover is not there. is this considered automatic or specific cover is required (considering July 11, 2006). Premium also seems to be quite high compared to LIC. ?
JIGESSH PATEL answers, All insurance policies cover risks except for the exclusions mentioned in the policy document. If terrorism is not mentioned among the exclusions, then it is automaticlly covered.
Rk asked, What are the advantages of Jeevan ananad Policy?
JIGESSH PATEL answers, They are a whole life policy. Good options. As for other advantages, we need to have a detailed discussion some time later.
Durgesh asked, Hi I am Durges Patel,I am 24 years old,unmarried, still I don't have any policy.I am working in private sector.salary 4+ lacs/annum.How much Insurance do I need at this age?
JIGESSH PATEL answers, Buy a whole life ULIP policy with sum assured 10 times of your annual income. Also look for policies with good liquidity options.
Hitesh asked, Hi, I would like to know what are the aspects that one should look for before taking an insurance policy
JIGESSH PATEL answers, You must take into account: What are the present insurance policies you have Your financial goals How much money you can put aside every month/year Only after the sole income provider is fully insured, dependents' policies should be considered.
Dna asked, SENIOR CITIZENS - Are there any policies for people who are 65+ and yet need coverage ?
JIGESSH PATEL answers, There are a few companies which do, like MetLife after necessary medical tests.
Pravin asked, Hi,I am Pravin can u tell me is there any mediclaim policy for whole family and which it is.
JIGESSH PATEL answers, Most companies are giving mediclaim for family with 10% family discount.
Vijay asked, I am 29 yr, Could you please tell me which long term policy can give me the maximum benifits .
JIGESSH PATEL answers, You can go for ULIP whole life policy.
Anandagopalan asked, Do I have choice of TPA when I insure with any insurance company.
JIGESSH PATEL answers, No you won't have a choice.
Amrita asked, Am looking at Insurance as a investment option also...which policy will give me the best assured returns i.e a min of 8%?
JIGESSH PATEL answers, No insurance company gives you an assured return of 8%.
Suresh asked, hi which is the best policy to go for a 28 yr old bachelor getting married soon
JIGESSH PATEL answers, Go for ULIP whole life policy.
Sthitha asked, Hi, I want to know all the cases in which I can't claim the insurance
JIGESSH PATEL answers, Suicide in the first year -- for almost all insurance companies. Also, wrong declaration in the application while purchasing the policy.
Arun asked, Hi, I am Arun, married for 2 years. I am looking for pure life coverage insurance which would cost minimum with maximum advantage.. Also I would like to know how better it is to take ULIP ie combining insurance and investment?
JIGESSH PATEL answers, I would suggest you buy an ULIP which would give you maximum sum assured at minimum premium for long term. ULIP is expected to give you reasonable returns between 8 to 12% in the long term wherein you go for a balanced equity/depth fund option.
Shishnetin asked, sir plz tell about ULIP policy
JIGESSH PATEL answers, Please refer to my earlier answer.
Suma asked, My son is 10 years old. Which policy should would be the best for him?
JIGESSH PATEL answers, I would suggest you to first buy insurance to fully cover yourself (sum assured = at least 10 times your annual income). Make your son the beneficiary as in case of a children's policy, you will be paying extra for the premium waiver benefit rider.
Kunal asked, Hi Jigessh......I have a couple of questions.....1) How do you see the Insurance Sector in terms of growth opportunities for employment 5 years down the line??......... 2) Insurance or Mutual Funds - comment on the preferred choice for a common man??....... Thanx!!!!!!
JIGESSH PATEL answers, It has excellent prospect. Mutual funds are good for short term (up to 5 years) but insurance (ULIP) is good for long term (10 years and more) as it helps to create disciplined saving.
Babulmore asked, Is jeevan anand the best policy in the market today
JIGESSH PATEL answers, No we can't generalise like that. It depends on the buyers' need and goals.
SEHGAL asked, I am 42 & having a son 7 year old, what will be the most suitable policy for him?
JIGESSH PATEL answers, First cover yourself adequately and in case you still want to buy a policy for your son, go for an ULIP whole life policy which has no penalty for partial or full withdrawal after 7 years.
Kishorekumar asked, how far LIC ploicy are better when compared with private insurance companies(icici prudential insurance)
JIGESSH PATEL answers, Both the companies have great policies though are different in features and benefits. Presently, ULIP policies are more popular because of the flexibility and higher return options.
LaxmiPadhi asked, Plz tell me about LIC's ULIP named "Market Plus". What are the benefits and its term.
JIGESSH PATEL answers, It's a pension plan with equity option. You can expect higher returns. You are suggested not to go for full equity if you belong to the older age group.
Aj asked, hi i am interested for a mediclaim policy with family and i am not working anywhere i am self employed which are the top ones Except ICICI Lombard as they have cheated lot many people in Bhopal we dont trust
JIGESSH PATEL answers, I suggest you go for New India Insurance Policy as it is one of the most profitable insurance companies in the government sector. The claim settlement records have been good.
Maheshsmanian asked, Hi This is mahesh here. I am married and both me and my wife are working. Our monthly net pay will be around 1.1 Lakh. We have 2 home loans (total of 50000 Rs / month). We are agaed 30 Yrs now and dont have any kids. We dont have any insurance now. I want to start saving for our future and for yet to come kid's future. Also I am ready to take a small amount of risk if the money will grow faster. I also need insurance cover for us, which will give atleast around 30K per month to our dependants and which will cover our home loan (total value of the two loans is 50 Lakhs). I also want to plan for my retirement. I am planning to close my home loans within the next five years even though there terms are for 15 years and 20 years respectively. Can u suggest me some good investment ways along with some good insurance schemes?
JIGESSH PATEL answers, Pls mail me at jigishpatel@rediffmail.com. I will reply after working out the details.
Pooja asked, Among the private insurance players, who do you think is offering the best and most flexible plans?
JIGESSH PATEL answers, Most of them are good and are coming out with new options every now and then.
Gan_lokhande asked, i am newly married.Can u pls sujjest me the best policy
JIGESSH PATEL answers, Go for ULIP whole life policy which would give you maximum sum assured with minimum premium and approximately 10 to 15 years' paying period.
JIGESSH PATEL says, It was very nice chatting with you all. Hope to be here again sometime soon. Happy investing.