I bought a term insurance plan of Rs. 50 Lakh in 2010. My salary has increased and I want the amount to be Rs. 90 Lakh. Should I buy another term plan of Rs. 40 Lakh or is there a way to increase the amount in the existing plan? Which will be cheaper?

You have no option but to buy a new policy. As there is good competition among Life Insurance Companies you can contact a good Insurance Brokerage Firm and get a good economical product. Other terms remaining equal 2 policies is a better bet as consolidating into a new policy of Rs. 90 Lakhs may have negative point. In the event of lodging of claim for Rs. 90 Lakhs in first 3 years of new policy your nominee may face difficulty in claim settlement.