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I simply love my readers. I was a bit apprehensive about how my “quick notes” reviewing online term life insurance plans would be received, but seeing your responses to the first one has me motivated. Now, for the second review in this series, I’ve picked up an online term plan from Kotak Life Insurance called Kotak e-Preferred Term.
Note: To help you to keep up with new term plan reviews, to go back and refer to past reviews, and to share all of this content with your friends, I’ve created the following easy to remember link — http://bit.ly/termplans. So, go ahead, bookmark and share.
Here’s what I think of this plan –
- I really like the Step-Up option that lets you increase your coverage at key stages in your life (marriage, purchase of a house, and birth or legal adoption of a child being the key ones) without undergoing new medical tests. These typically are the situations when you’d need to review and increase your life insurance needs. And normally these changes in your life do occur before you turn 45 which is when this plan would no longer give you the step-up option. So, I’m OK with that clause.
- What’s more, there’s even a Step-Down option if you need to lower your insurance needs!
- Maximum maturity age is 70. So, unlike the Bharti AXA Life eProtect plan, you’ll be pretty well covered even into traditional retirement. The policy term is continuous (anything from 5-years to 30-years) rather than being restricted to blocks of years (5-years, 10-years, 15-years, and so on up to 30-years).
- For our 30-30-1 benchmark plan (30-year old buying a 30-year plan for Rs 1 crore cover), the indicated premium is Rs 11,500 excluding service tax which is 1.57 times the Bharti AXA Life eProtect plan. That’s quite expensive!
- I’m also comfortable with the Kotak brand and if you’re keen on knowing the claims settlement ratio it’s about 89.30% for the time period 2010 — 2011.
- But what concerns me the most is the high premium (and the premium would only increase further with the step-up options and with service tax) for nothing spectacularly different. And remember, you’d be paying these high premiums for the next 20- to 3o-years.
So, for now, I still keep the Bharti AXA Life eProtect plan in pole position.
But what do you think? Do you agree with my reasoning?
Again, to help you to keep up with new term plan reviews, to go back and refer to past reviews, and to share all of this content with your friends, I’ve created the following easy to remember link — http://bit.ly/termplans. So, go ahead, bookmark and share.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.