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1.4

Summary

PNB MetLife Life Insurance
Munish Goyal@IndianReviewer
Feb 24, 2014 12:15 PM, 31623 Views
Evaluate carefully before choosing!

Evaluate carefully before choosing.


Do not fall for that you have to pay only for 5 years. Because premium is high. For eg. premium for 1 crore cover is 50000 and you pay for 5 years totalizing 2.5 lac.


Now if you take conventional yearly cover for 25 year term, premium is around 12000. Suppose you go for it and you save 38000 every year for 5 years.= 1.9 lac


Now out of this 1.9 lac, if you FD it say at 8-9% approx return yearly= 15000. With that you can pay 12000 yearly as premium and save 3000 every year and invest it.


At the end of term you will have 20*3000= 60000+ compounded interest which will take it well over 2 lakhs. So you end up saving 2 lakhs or more. This is just conservative calculation. You may save more.


So evaluate carefully because I feel normal online term plan is more cost effective.

(1)
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