Hello folks, has anyone taken a term life insurance. I am thinking of one, I do not have a partner at this moment or children, 38 years old and have dependent parents. Does anyone have any (would be unfortunate) experience in this domain? I am always biased to HDFC so I checked the HDFC Life website for their premium calculations.

Somewhat OK analysis done for it here (w.r.t to different companies) https://www.livemint.com/insurance/news/is-your-insurer-settling-high-value-death-claims-1548699986481.html

at this age the premium might be quite high for you, avoid if parents have significant amount of savings. As such, your savings will also go to them as they will be legal heirs for you in the absence of a partner / children / siblings

@wide-twilight-82330 the calculations are where I am unsure. An example premium calculation: • INR 1 Cr cover for 47 years from now (till I am 85 years old) • Pay premium for 10 years only (I want to clear it off plus get lower total premium) • Waiver of premium in case of 36 critical illnesses • INR 7252 for 120 months (total 870240), or INR 12843 for 60 months (total 770580) For the given premium amounts, my nominee would get INR 1 Cr till I am 85 years old (now my mom, later I can switch nominee to someone else). So overall premium seems like 8% of the cover. Given the uncertainties, particularly as an active nomad I am kinda inclined to take this.

@wide-carpet-65149 try reducing the policy term to up to 75 years of age, you should get much lower premium.

@wide-carpet-65149 • I would also suggest lowering the policy term upto 60 years. Thinking practically, you wouldn't need term life for you to help your parents by the time you reach around 60. • I would not suggest paying all premium upfront/5 years. Think about money value in terms of time. 7252 today, is not same as 7252 in 10 years. You are saving approximate 5000 Rs if you choose to pay 10 years instead of 5. You could invest this amount for next 5 years and calculate the returns. • I would even go a step further and ask you take policy until 60 and even payment terms until 60. That would lower your premium a lot.

Talk to Ditto, they provide good advice and help you through out the whole process. Also +1 for until 60 and paying until term ends, and check and select riders carefully, most of them increase premium heavily. https://joinditto.in/

@mysterious-yak-23452 I agree with your logic about the premium payment period. But with regards to the cover period, I feel as one grows older people can get more insecure about money for their dependants. I am not saying my parents will be dependants then, but rather my partner or children. Is it not true that after 60, when my income is perhaps not there, my family could most from such investments?

If someone pay upfront and unfortunately dies before the maturity then he had paid premium for the years where he will not be even alive.

I have maxlife term insurance 1.5 cr cover. Approx premium 12K. I think I have taken it till age of 55 or 60

I see your point @elegant-rose-70104. Basically after my 60's, I am most probably not taking financial liability. So it makes sense that way.

Another key point when it comes to insurance, term insurance in particular: Do not try and optimise for premium, go with hassle free and easy settlement. When/If the time comes to avail insurance your family won't be in a position to deal with nonsense, they will need help and support. I recommend using ICICI or HDFC only, for term life insurance.

I recommend using ICICI or HDFC only, for term life insurance.

ICICI Prudential has a lower claim settlement ratio compared to HDFC or Max Life.