Life Insurance Payout

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Finance Mentor
Ramta_Jogi

As the title says - Does anybody here have any feedback on life insurance payout by companies? Something they have seen happening with their own eyes or case of payout being given to their neighbour or relative? 

Thank you. I have only seen 1cr + 1cr by ICICI oflate. 

@third.i.financial.advisors

@guest_999

@abhishek012

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Deal Cadet Deal Cadet
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Payout happens when someone dies.  We generally cannot directly ask. "Woh Mar gaya toh paisa mila kya insurance ka ?"

Finance Mentor Finance Mentor
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That's why I said relatives case /known payouts. You come to know about neighbours too - sometimes from bank managers or even insurance agents. Like you get it from LIC for sure though after 3-ish years. With icici I learnt about the payout almost on second day of death in hospital. 

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Critic Critic
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A few years back a friend whose relative died got the life insurance payout from a psu insurer but the process was not without hassle & took at least few weeks. the amt was also not that much (less than 10 lakh I think).

Deal Cadet Deal Cadet
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Varies from case to case

Benevolent Benevolent
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paji i guess you were against health insurances bases on ur experiences. planning to go with life insurance?

Finance Mentor Finance Mentor
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I am still against health insurance more so with their 24 hour reporting clause and tedious refund process.

The issue with life insurance too is the ticket size (claim packet size) is usually 5-10 Lakhs for many & that's mostly paid by the companies.. It's the over 50 lakhs payouts that I can't trace. I still don't have either. 

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Critic Critic
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For the typical LIC policies (not term insurance), have personally known folks getting the insurance payout in case of death. However, these were mostly in lower range with 5-10L max, as they aren't the term insurances.

Benevolent Benevolent
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bro how is pure life inusrance different than term insurance?
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Trailblazer Trailblazer
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Few months back my frnd died in Singapore they got instant pay of 1cr from term insurance n other 1cr took around 6 months n got lic insurance around 10 lakhs he is also having home loan with lic but they r saying no insurance is there  it seems

Finance Mentor Finance Mentor
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... Which term insurance? 

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Finance Mentor Finance Mentor
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Same doubt. Never personally witnessed anyone getting a payout from a term policy.

But I ve read that a lot of policies get rejected by the insurance companies if it is more than 1 cr.

Some people advised to get multiple policies with low payouts like 20L to 50L to avoid this issue.

You have to inform the second insurance company of the first policy otherwise they can reject when a claim is made.

Also if one company rejects claim for any reason, your other insurer can also reject claim citing the same reason.

These are all what I have heard and read. These policies are a headache on many levels. What is the point if These companies can just reject claim?
Finance Mentor Finance Mentor
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This is what I am coming too as well... For 2cr coverage take 1cr plus 1cr. More work for the nominee but at least looks like less hassle if claim gets stuck for prolonged time in one insurance for whatever reason (investigation, documentation etc.)


Also, icici seems to have an edge in payouts; at least from what I have gathered from around my place. Talked to bank RMs/BMs, relatives, some insurance cum investment agents, CAs.


And Hdfc term insurance (online) has a really messed up clause. If your spouse is 10 years or more than 10 years younger to you, then they don't cater to you at all! What the actual F? 

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