I am a 22-years old, single and I would like to know whether I should go for a normal health insurance or a term plan. Some of the companies claim paying Rs. 50,000 pa will get me a return of 65 lakh after 30 years and with a cover of 12.5 lakh in this period?
It seems you have mixed up 3 different policies :
- Health Insurance
- Term Insurance
- Endowment Life Insurance
Under Health Insurance – your hospitalization needs will be fulfilled; Under Term Insurance – your nominee will get sum as per sum assured.You will get nothing if you will survive till the maturity date of Term Insurance Policy Under Endowment Life Insurance, you will get sum assured with bonus declared by the insurance company during 30 years. The exact calculation can be done after allocating funds out of Rs. 50000 for policy no 1 & 2. Broadly speaking if the sum assured is Rs 12.5 lakhs you will not get Rs 65 lakhs.