ilmscore | Top 4 secrets to know before buying term insurance in India | 2023 | CA Rachana Ranade

Top 4 secrets to know before buying term insurance in India | 2023 | CA Rachana Ranade

Published: 2023-05-20
Status: Available | Analyzed

Predictions from this Video

Total: 8
Correct: 0
Incorrect: 0
Pending: 8
Unrated: 0
Prediction
Topic
Status
It is suggested that an individual might only need term insurance coverage until they are the primary bread earner, potentially around age 60, rather than for a longer duration like 60 years from the current age.
"so chandu could have taken the insurance only for 30 years instead of 60 years."
Term Insurance Maturity Age
Pending
A general rule of thumb for term insurance coverage is 10 times an individual's annual income.
"So if you ask me this same question and if you say rational I want an answer in one sentence I would typically say 10x of your income"
Term Insurance Coverage Amount
Pending
For individuals with substantial existing wealth (crores in net worth), a term insurance cover of 20 times their income might not be necessary as the primary purpose of such insurance is income replacement for those lacking sufficient funds.
"Insurance typically is looked at as an income replacement when you don't have enough money so even if Chandu warns he can take an insurance but I don't think he per I mean that's my personal opinion but I don't think he requires a cover of up to 20x of his income"
Term Insurance Coverage for High Net Worth Individuals
Pending
For individuals who are the sole breadwinners with significant financial liabilities and expenses, a term insurance cover of 20 times their salary is highly recommended.
"Well if you ask me my answer is hundred percent yes, now why? as I told you he does have liabilities he does have a lot of expenses and very important he is the sole bread earner in the family, now you can imagine unfortunately if something happens to Mr Bhandu then what big problem can Mrs Bhandhu face and that is the reason why he should take the insurance cover and if he is offered like a 20x of his salary cover he should definitely go ahead with that."
Term Insurance Coverage for Sole Breadwinners
Pending
The speaker advises against opting for 'zero cost' term plans due to potential losses from GST and the lack of inflation adjustment on premiums received back.
"So if you ask me should you go ahead with a zero term plan? My answer is a big No."
Zero Cost Term Plan Recommendation
Pending
A critical illness rider allows for the immediate disbursement of the assured amount to the insured person's bank account upon diagnosis of a critical illness, which can be used for medical bills and income replacement.
"the moment the person who is the insured is is detected with a critical illness say cancer immediately they will be disbursed the amount whichever is assured to the family members that money will be completely disbursed to the person's bank account."
Critical Illness Rider Benefit
Pending
Accidental disability riders can help families recoup lost income in cases where an accident leads to severe disability and the inability to work.
"Now don't you think that will lead to a big dent in the income for the family and answer is obviously yes so such type of riders will help the family members to recoup the income which is lost"
Accidental Disability Rider Benefit
Pending
Some insurers are expected to increase term insurance prices soon, suggesting a need for prompt action.
"I would also want to highlight a point that you ideally need to act fast because some insurers are hiking the term insurance prices very soon."
Term Insurance Price Increase
Pending