I was looking for the term plan and then I found AEGON Online Term plan very attractive. The reason was simple, lowest premium and life insurance till age of 75 years. At the same time there was buzz in my mind that how can company provide insurance at such a low premium! I have collected some data in order to back my doubt / query. These are as below:
1) I am a 30 year nonsmoker male. The premium for 50 Lakh insurance cover till maturity period (till 75 years) comes to R 5225.
Doubt: If someone invest R s 5225 every year at the rate of 10.5% per annum for 45 years, then the accumulate sum at the end of 45 years comes to almost 50 Lakh. Since average male age in India is 65 years, there is greater possibility of person to die much before age of 75. Even though if he dies at the age of 75, he would get his money back at the rate of 10.5% compounded annually.
2) Take another scenario where there are 10 people of same age group i.e 30 years, have taken policy worth Rs 50 Lakh each. Everyone would be paying RS 2.35 lakh in 45 years. Total payment for 10 people comes to Rs 23 lakh. Even though if you add the interest earned on it , then also total amount would not go beyond Rs 1 crore. Suppose 3 person out of 10 die before 75 year of age then company would need to pay Rs 1.5 crore. A loss of Rs 50 lakh
3) The claim settlement ratio of Aegon Religare shows around 52%, lowest in the industry. What is the exact reason behind that? Could you provide me the claim settlement ratio of online term plan? Even there is discrepancy between the claim settlement ratio published by IRDA and that on the website.
4) As published on the website one person’s claim got rejected (online term plan) because he has not disclosed his medical history. My question is when a person is undergoing medical test why do not they verify all the disease via test. It is good for both the insurer and insurance company.
5) Is there any impact on policy or claim settlement, when there is change in one’s lifestyle after he has bought the policy? Eg currently a person does not consume alcohol but later in his life when he climbs corporate ladder, he may occasional drink with his client/ friend.
6) At last but most important If I am ready to undergo any test or validation. I need assurance that my claim will not get rejected. Can company issue additional certificate that the person is fit and fine and there is no discrepancy in his form.
