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MISTAKE DONE IN TERM INSURANCE PLAN | BEST TERM INSURANCE PLAN IN INDIA | TERM INSURANCE | जीवन बीमा - YouTube
Channel: Invest Aaj For Kal
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The dark truth of term insurance.
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In today's video, we are going to talk about
some important term-insurance related facts
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that are very important for you to know.
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We had made a best term
insurance plan video,
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I am giving the link to that video
in description and the "i" button.
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In that video, we had discussed
how, based on criteria,
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the top-three term insurance
plans are HDFC, LIC and Tata.
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But in that video's comment section,
there came in a lot of questions,
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Many of them were from some agents
and they tried to misguide people.
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After that, you might be having a
a lot of confusion in your mind.
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Today, firstly, we will understand what
is the basic reason for term insurance.
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And if you make an error in
understanding the basics,
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there is a dark truth behind this term insurance.
and we need to understand the real truth
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and understand the matter in deep.
So, we are going to discuss that.
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After that, we will discuss some plans
which are highly recommended by people,
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But we have to stay away from such plans.
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I am clearly going to mention names
and the company's name
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and I am going to put up my opinion
about which plans to stay away from.
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Finally, we will conclude how important is
the best term plan video that we made.
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After considering all the
criteria we had made that video
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and explained what
are the best term plans.
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My name is Anant Ladha, CFA, CA, CFP, LLB.
And let's start with today's important discussion,
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It is going to be very important and I
recommend you to share it with friends.
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As you share, other people are also
going to gain some literacy in this matter.
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and we will understand a few important
points. So let's get started.
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[Intro music]
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We all know, term insurance is the
cheapest insurance in the world.
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Term Insurance actually benefits you when after
your passing away, your family needs support.
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Your family requires money for support.
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The premium of a term insurance plan
is any-which-way quite less.
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But, just to save some amount out of the
premium, we get stuck with some companies
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in which a lot of criteria are missing.
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So, first of all, let's talk about the criteria that we
should consider before buying term insurance.
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The most important criteria is how
good is their claim settlement ratio.
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Meaning, if a company is getting 100 claims to settle,
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meaning, 100 such people who bought
the term insurance from the company,
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After the person's death, when it was
the company's turn to pay back the family,
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So how many of those 100 people got
their claims settled by the company.
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That is the Claim Settlement Ratio.
which is important to consider.
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Because term insurance is only beneficial, when in
your absence, your family gets the support they need.
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In a lure to get a less costly term insurance,
many times our families end up suffering
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because we made this big financial blunder.
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So, the first important point is what
is their claim settlement ratio.
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Second important point is, what is
the claim settlement amount ratio.
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Suppose, some company's
claim settlement ratio is 99%,
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It is also important to check how much
amount of the claim did they settle.
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Many times, claims of small amounts
do get passed by the companies,
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But big claims get rejected.
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So their claim settlement ratio is good but
the claim settlement amount ratio is poor.
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So we need to check if the company
is getting a claim of Rs 10 Crore,
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Out of those 10 Crores, how much claim
has been passed by the company?
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So, it is important to consider the
claim settlement amount ratio too.
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Many times we miss the second
most important point here.
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Third important point is to consider the rejection
ratio. Sometimes we fail to see the rejection ratio.
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So what is the rejection ratio?
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It means If a company gets a
claim and for whatsoever reasons,
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the company denies the claim. If a term
insurance plan has a rejection ratio of more than 1%,
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more than 1%, we are going to
reject that plan outrightly.
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Also, we would know about some companies
whose rejection ratio is up to 3.5%,
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but their premium is less and because
of that, we end up buying their plans.
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We will discuss that in the next section. But before
that, let us know the fourth important point.
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Till now we have discussed 3 important points,
claim ratio, claim amount ratio and rejection ratio.
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And now, the fourth important point is the rider.
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Please pay attention, all the accidental rider and
critical illness riders should be with the term insurance.
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Because term insurance premium is always fixed.
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And usually, we buy term insurance at a young
age and the premium amount is also less.
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Since term insurance premium is fixed, we
should put the riders with the term insurance.
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Rather choosing this rider
with the health insurance.
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It is important to buy health insurance.
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I am going to link the best health insurance
video in the description and i-button.
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You have largely appreciated that video.
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Buying the best health insurance is very important.
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But on the rider part, be it accidental or critical
illness, we should choose it with term insurance.
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Because term insurance premium is fixed
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But health insurance premium keeps
on increasing with your age.
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Now let's move on to the next section.
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I hope you will keep these four points
in mind before buying a term insurance
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And do not fall for the trap of a
cheap term insurance plan.
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Let me cite some examples for you.
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On our best term insurance video, you
gave us lots of appreciation and support.
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It was shared and liked a lot by you
people. Like and share this video as well.
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In the previous video, the main query was
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I have given you the helpline number for the
health insurance and term insurance central office.
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I will mention that helpline
number in the description box.
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In our last videos, you had posted some queries.
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One of the main queries was that the
Bajaj Alliance term insurance is the cheapest.
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Bajaj Alliance insurance is upto 20%
cheaper than HDFC, LIC and Tata.
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Then why did you not suggest
the bajaj alliance insurance?
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So, the first point is that Bajaj Alliance's
claim rejection ratio is 3.49% in 2018-19.
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As per IRDA, which is a certified organisation,
and monitors insurance companies in India.
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Around 3.5% of claim
rejection ratio is a big ratio.
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Moreover, 8.71% is their
claim amount rejection ratio.
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Meaning if 100 claims are made, then,
amount wise rejection ratio becomes 8.71%
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So the claim rejection ratio
of Bajaj Alliance is very high.
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Maybe because it is inexpensive, you
may choose Bajaj Alliance today,
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But if at the time of need, your
claim ceases to get through.
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If the claim only doesn't get passed, buying
Bajaj Alliance insurance makes no point.
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HDFC, on the other hand, is always on
number 1 or number 2 of our list
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because its claim rejection ratio was 0.5%. So,
we should avoid buying the Bajaj Alliance plan.
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Your second query was related to Kotak Insurance.
Why should we not buy Kotak insurance/term plan?
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How are HDFC, LIC and Tata term plans better than
Kotak term plan. Let us understand that now.
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Kotak is not there in the top 3 of our list because
Kotak's claim rejection ratio is 2.21%
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Similarly for a lot of other companies.
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Maximum number of queries
were there for three companies,
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Kotak, Bajaj Alliance and the third one was
Max. We will cover Max also in some time.
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But for these two the claim
rejection ratio is very high.
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If we talk about Max, again,
its claim rejection ratio is 1.25%
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More than that, Max is now getting
support from the Axis Bank.
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That is how Max is surviving as of now. Sometime
back, Max was going for a tie-up with HDFC.
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So I had doubts about the stability of Max.
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Before, Max was tieing up with HDFC, but it
was cancelled. Now it has tied up with Axis Bank.
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More than that, its claim rejection
ratio is more than 1.25%
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1.25% means they upfront reject the claims.
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And as per our rules, the top-three term insurance
plan, all had a claim rejection ratio of less than 1%.
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Hence I say if you haven't seen
"the best term insurance" video,
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I have discussed every point in detail and have
clearly told you why these plans are the top three.
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I hope after watching this video, your basic
doubts would get cleared even better.
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And you would bear in mind that you
should not go for cheap insurance plans.
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I am ranking the term
insurance plans again,
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Number one is HDFC. Since HDFC's insurance
premium is less as compared to LIC.
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Number two were LIC and TATA.
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LIC currently because of the corona
pandemic they have delayed their claims,
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So, you may buy either HDFC
or TATA. Both of them are good.
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Even if LIC starts giving away timely claims,
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All three of them have the best
term insurance plans in India.
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All three of them should
be on your suggestion list.
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The final decision would be yours.
I have told you all the pointers.
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Told you all the Ifs and buts of the case.
The final decision is yours to take.
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Now before that I end the video,
I have one important point to tell you.
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That you must always remember
before buying a term insurance plan.
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Before understanding that important
point of term insurance,
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if you want any services from our end,
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Be it related to term insurance, health
insurance, mutual funds, financial planning,
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All the helpline numbers are given in the description.
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Term insurance-related helpline numbers will
directly connect you to the head office
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So you can directly connect with them.
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Also, if you haven't yet opened your DMAT
account, be it Zerodha, LISB or Angel,
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the link is in the description. Also, if you want
to be a part of our special DMAT account group,
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You will find all the details in the description.
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It is a private group only for those who open
their DMAT accounts through our links.
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Now let us know an important point that you
need to know before buying term insurance.
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Always buy term insurance
for the earning member only.
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Many times while you are buying term insurance, you
think of buying for your wife and a few others too.
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Term insurance or any
insurance for that matter,
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should be bought only for the
earning member of the family.
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the meaning or benefit of insurance is only
when if our earning member passes off,
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if we are getting financially impacted,
we can cover the losses through insurance.
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So, only buy term insurance
for the earning member.
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Make sure you don't get over-insured or buy
insurance for non-earning members.
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I hope you would remember this
last tip and would like this video.
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If you like it, share it with your friends.
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Don't leave without subscribing to our
channel and press the bell icon.
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Your complete financial planning related
doubts will get resolved on our channel.
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Be it Mutual Funds or shares, Anant ka funda
daily series or insurance and options.
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Everything related to investment,
you will find on this channel.
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Don't leave without subscribing to our
channel. We will meet in the next video.
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Till then, Happy Investing and do watch this
video again before buying insurance.
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I will see you very soon.
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