Source: Mint

I am 58 years old and have a term insurance of Rs. 50 lakh, which will expire in another two years. However, my children are too young right now. I want to have a cover for myself even after 60 years of age. What are the available options for me?

Several insurers offer term plans up to 70 years. If you buy another term policy with a Rs. 50 lakh cover until age 70 that will cost you about Rs. 50,000 per year. Few insurers offer a term until age 75. That will cost you about Rs. 62,000 per annum. These prices include service tax. In general, most insurers will require you to purchase for a minimum tenor of 10 years.

I am a 45-year-old smoker and planning to buy a term insurance policy for about Rs. 1 crore. I have received premium quotes from several insurers and one insurer is much cheaper than others. Could there be a catch?

There is no catch. Insurers follow different strategies with regard to the smoking risk. Some companies do not differentiate between smokers and non-smokers, others apply considerable premium loading for smoking and a few insurers add smaller amounts.