Life is full of if’s and but’s. None of us know what might happen even the next minute. If your child, life partner or your parent(s) depend on your income then you need to have Life Insurance plan.
In this post, let us shortlist and understand some of the best Online Term Insurance Plans in India. These best Term Life Insurance plans can be purchased through online.
What is “Term Life Insurance Plan?”
Term insurance is the simplest and most fundamental insurance product. Term insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.
Online Term insurance Plans are,
- Cheaper than conventional plans like money back life insurance or endowment plans (or) offline term plans. Online term insurance plans are roughly 30-40% cheaper than the offline plans.
- The entire application submission process happens online through the company’s website. So, it is hassle free.
- You may not be influenced by an agent/advisor during the buying process.
9 Best online Term Insurance Plans in India for 2017
I have selected and shortlisted the below best plans based on;
- Claim Settlement Record of the Life Insurance Companies as per IRDA’s (Insurance Regulatory Development Authority of India) latest Claim/Death Settlement Ratios (2018)
- Affordability (Premium amount).
- Brand name.
- Quality of service provided to its customers during the online buying process and after issuing the policy (policy life).
- Ease of buying the Term Life Insurance plan online.
- Feedback received from my friends/clients who bought online Term Life Insurance plans directly.
Below is the comparison of best online Term Life insurance Plans. (Click on the image to enlarge and open it in a new window)
(All the above premium amounts are for 30 year old male, non-smoker, for Rs 1 Crore Sum Assured with 30 year policy term. Optional Riders like Accident Death Benefit/Critical Illness are not considered. Premium Amount is for yearly mode.)
ICICI Prudential iProtect Smart Online Term Insurance Plan
ICICI Prudential has one of the best Claim Settlement data consistently, with 96.20% of the claims received were paid/settled. ICICI Prudential’s online term plan is known as ‘iProtect Smart.’ The premium amounts of this term insurance plan are very reasonable and are competitively priced. This term insurance plan also provides Waiver of Premium due to disability at no extra premium. Optional riders like Accidental death benefit rider and Additional cover for 34 Critical Illnesses are available.
You may like reading my review on ICICI Prudential’s latest online Term insurance plan – iProtect Smart Term Insurance Plan.
LIC’s e-Term Plan Online Term Insurance Plan
LIC of India had launched its online Term insurance plan on 17th May, 2014. LIC was a late entrant with respect to the launch of online term plans. But, one good point about e-term plan is that it is relatively cheaper than Anmol Jeevan/Amulya Jeevan (LIC’s offline term plans). However, when you compare the premiums of LIC’s e-term plan with private insurance players’ online products, you may find it very costly.
But, LIC has the highest claim settlement ratio (98.33%) among the life insurers. You can surely consider buying LIC e-Term plan. The minimum Sum Assured offered under LIC e-Term online insurance plan is Rs 25 Lakh.
As per the latest proposal by the Govt, all PSU insurance companies have been asked to provide Discount / rebate on online premium payments. As of now, LIC offers rebate on online digital payments as below;
(Click here to know more about or purchase LIC e-Term Plan)
Aegon Religare iTerm Plan
The claim settlement record of Aegon’s has improved significantly over the last couple of years, which is now at 95%. We need to talk about their online term insurance plan. They are the pioneers in online term insurance plans. They have changed the rules of the game by offering the cheapest online term insurance plans.
This plan has an Inbuilt Terminal Illness Benefit. On diagnosis of any Terminal Illness, 25% of the base sum assured will be paid (max.of Rs 1 Crore) & the base sum assured will be reduced by an amount equal to the benefit paid under this clause. It covers all forms of death, even terrorist attacks.
Aegon’s iTerm plan offers optional riders like Critical Illness and ADB. On diagnosis of any critical illnesses (as mentioned in the policy document) the future premiums are waived off.
Kindly read : My Blog Reader’s perspective on Aegon Life’s Online Term Insurance plan – iTerm Insurance Plan
HDFC Life’s Click 2 Protect Plus Online Term Insurance Plan
The premiums of HDFC’s Click2protect plan are lower than ICICI Prudential’s iProtect plan (old Term insurance plans). HDFC Life has launched Click2Protect Plus to compete with ICICI Pru’s i-Protect Smart plan. The latest claim settlement ratio of HDFC Life is 95%.
Click here to read my review on HDFC Click2protect plus
Click here to read my review on latest Term insurance plan of HDFC Life – Click 2 Protect 3D Plus
Max Life Insurance’s Online Term Plan Plus
Max life insurance company has the second best claim settlement record (which is 96.95%). The premiums are also comparatively very less. Max’s online term plan provides optional Accident Death Benefit rider. Besides basic cover the Max’s online term plan offers two options;
- Basic Life Cover plus Monthly Income
- Basic Life Cover Plus Increasing Monthly income
The premium rates are slightly higher if you opt for any these features. Kindly note that the merger of Max Life with HDFC Life has been proposed and is subject to approval by IRDA.
(Click here to know more about or purchase Max’s online term plan)
Bajaj Allianz Life Insurance eTouch online Term insurance Plan
This plan offers waiver of Premium under ‘Shield’ option. So, on the occurrence of an Accidental Total Permanent Disability of the Life Assured the remaining premiums under this term plan would be waived off, while the other insurance benefits will continue.
SBI Life Insurance eShield online Term Plan
SBI’s e-shield premiums are a bit higher than that of Kotak’s, Max’s, ICICI’s HDFC’s and other above online term plans (except LIC’s). The premium of e-shield plan is lower than LIC’s e-term plan premium. SBI Life’s e-shield plan can be an alternate to LIC’s e-term plan
SBI Life’s e-Shield plan offers four options;
- Level Cover (basic plan)
- Level Cover with Accidental Death Benefit
- Increasing cover (Basic sum assured is increased at the rate of 10% simple interest after every 5th policy year without increasing the premium)
- Increasing Cover with Accidental Death Benefit
(Click here to know more about or purchase SBI Life’s e-Shield plan)
Kotak Life Insurance’s Preferred e-Term plan
Kotak’s Preferred e-Term online insurance plan is one of the cheapest online term insurance plans. The company has decent claim settlement ratio (89%). Like Max’s plan, Kotak’s plan also has the option called ‘Recurring payout’ wherein part of the claim is paid on policy holder’s death and a fixed monthly/yearly amount is paid for next 15 years to the nominee. This plan offers an in-built feature of ‘Waiver of Premium on Total & Permanent Disability’.
(Click here to know more about or purchase Kotak’s online term plan)
FAQs (Frequently Asked Questions) while choosing best Online Term Insurance Plans:
FAQ 1 – Do I need to check the claim Settlement record of Life Insurance companies before opting for the best online term insurance plan?
Every year IRDA publishes the claim settlement (death claims) details of all the Life Insurance companies. Unfortunately this data is not segregated based on type of insurance plans (like term insurance, money-back or endowment). If you analyze the latest data, the average claim amount settled by LIC is very small, which is around Rs 1.14 Lakh per policy. (LIC settled death claims to the tune of Rs 8,475 crore and the total no of policies received for claim settlement are around 7.5 Lakh).
Claim settlement data is important but it should not be the sole criteria for choosing the best online term insurance plan. In future, if IRDA provides claim settlement details separately for Term insurance plans then this can be used as the main yardstick while opting best online term insurance plan.
FAQ 2 –How much insurance coverage (sum assured) should I purchase?
The quantum of insurance coverage can be based on your future income potential (income replacement method) or need based method (your financial obligations + liabilities – existing insurance plans/assets etc). You may use the below comprehensive calculator to know how much insurance coverage is required. (It is based on Need based method)
“Life Insurance coverage calculator” ( This calculator has been developed by Sri Pattabiraman, a physicist & Associate Professor working at IIT, Madras)
FAQ 3 – Till what age should I take the term plan cover?
The ideal answer is, up to your retirement age.
If you are confident that you may not have any financial obligations, loans and dependents (who are financially dependent on you) when you attain say 50 years, you can consider term plan duration accordingly.
FAQ 4 – Should I purchase two Term plans from two different Life Insurance Companies?
I believe, diversification across different companies may not be required. As long as you are honest and provide complete/accurate details (in proposal form) while purchasing the insurance plan, your life insurance company has to settle the claim (if any). In any unfortunate event, your nominee has to submit multiple death claims which may be a challenging task.
But, you may consider splitting the life insurance amount into two policies. For example – If you decide to buy Rs 1 crore worth insurance coverage, you may consider taking two Rs 50 Lakh worth term insurance plans (preferably from same life insurance company). The main advantage of splitting is, you can stop paying the premiums on one policy, in-case if you think that you do not require so much insurance coverage.
FAQ 5 – Can NRI buy online term insurance?
Non Resident Indians can buy online term insurance plans. The NRI can purchase the policy from overseas through written communication with the insurance company in India. There may be certain additional costs in such case. For instance, if you purchase the policy from abroad, you would have to do the medical examination and send the report to the insurance company in India. You would have to bear the costs of this medical examination yourself. However if you purchase the policy in India, you would not have to bear this cost as it would be inbuilt in the cost of your policy. The insurance policy purchased in India will cover death that occurs anywhere in the world.
FAQ 6 – Is it better to take riders separately or can I take along with the Term insurance?
As mentioned in the above list of best online term insurance plans, some life insurance companies provide optional riders (like Accident death benefit & Critical Illness) and optional features (like waiver of premium or monthly income options etc.,)
Do not complicate the things. Buy a simple term insurance plan with sufficient basic cover. I believe most of these online term plans do not provide “Total Permanent Disability rider” which I think is a very essential one. (TPD cover entitles you to receive a lump sum insurance benefit if you become Totally and Permanently Disable). You can consider taking stand alone Personal Accident plan. Also, you can ignore plans with ‘return of premium’ option. (Read : ‘Best Personal Accident Insurance plans‘)
FAQ 7 – Can I take single policy which offers joint life cover (for my wife and myself jointly)?
It is advisable to take separate or independent term insurance plans.
FAQ 8 – What are the required documents to purchase an online term insurance plan?
Generally you will be asked to submit; Identity proof, Address proof, Age proof and Income proof (Income Tax returns of 3 years / Form16s / Profit & Loss statements). You have to undergo medical tests too.
FAQ 9 – Should I buy online term insurance plan through Aggregators?
Aggregators are companies like policybazaar.com (Accurex marketing & consulting), policymatra.com and quickbima. I suggest you to use these websites to just compare and calculate premiums of various term plans.
You can then buy the selected best term plan directly by visiting that Life insurance Company’s website itself. Why do you want to add one more layer between you and the insurance company? Keep it simple. Buy direct.
FAQ 10 – Online Vs offline Term insurance plans? Why are online term plans so cheap?
Online policies are cheaper than offline term plans, because there is no agent’s fee involved and other administrative costs of the insurance company are also lower.
Most companies cite incomplete documentation or concealment of facts as the primary reason for rejecting death claims. Hence, while buying a life insurance it is of utmost importance that you furnish accurate information. You may just pick any one of the above best online term insurance plans as per your requirements and comfort level.
Let me know your views on best online Term insurance plans. Do you have a Term plan? Which one did you purchase? Did you buy it online? Share your comments.
Latest update : As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 years old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.
Continue reading other related articles;
- Is Term insurance a waste of your money? (Term Insurance Vs Endowment Plans)
- Traditional Life Insurance plan – a terrible Investment option?
- How Smoking impacts your Life Insurance Policy?
- IRDA’s Latest Claim Settlement Ratio Data
- How much Term Life Insurance Cover do I need? | Online Insurance coverage Calculator
I am looking for 50lac term plan from icici .
Should I go with cover fox or direct icici website.
Dear ManRam,
If you are comfortable, you may buy directly from the ICICI Pru website..
Very informative n salute ur effort.
Dear albin,
Thank you and keep visiting ReLakhs.com!
Hi Sreekanth! Which plan would you recommend between – TATA AIA Sampoorna Raksha and TATA AIA Maha Raksha Supreme? Thank you.
Dear Divesh,
You may buy any base cover plan of your choice, as per your requirements (affordability etc), but make sure you provide all the required info in the Proposal form honestly and accurately. Also, opt for a plan which has needs medical tests to be done.
Hi Sreekanth,
Thanks for quite informative blog. After reading this, I opted for ICICI prudential iProtect smart policy for 30 years.
After filling the form and uploading my document proofs, I was expecting medical tests to be undertaken. But out of no where, I see the policy being issued by ICICI. When I called up them regarding this, they claim the test was not necessary as I filled already the questionnaire regarding my general health conditions.
My big concern is, I might not been aware of my updated health conditions and what if the claim gets rejected mentioning as “pre-existing”? Is it not mandatory that the insurance providers should collect this data before issuing the policy?
Regards,
Arun
Dear Arun,
It is always advisable to opt for a term plan which has medical test mandatory.
If the policy is issued you can close it in ‘free look period’ during the first 15 days.
Thanks for the suggestion, Srikanth.
However ICICI claims that they would deduct the amount spent for stamp paper (which comes around 1500 Rs) during cancellation. I am worried that I am at loss and paying for company’s negligence towards customers. With the high sum assured and critical illness cover opted, I am surprised why would any provider not opt for medical examination.
Is there any way I can avoid the above loss?
Dear Arun,
You can not avoid the said cost/fees.
Related articles :
* IRDA Claim Settlement Ratio 2017-18 Data | Top 10 Life Insurance Companies based on CSR
* Latest Health Insurance Incurred Claims Ratio 2017-18 | Best Health Insurance Companies List
Hi Srikanth
Thanks for your valuable information & nice way of presentation.
I’m bit concern about LIC vs Private players.How we can trust the private insurance company in terms of getting the insurance(term) claims & if it somehow bankrupted/other unfortunate cases who will be responsible / what action been made to give the claim to policy holder/nominee.
Dear Boopalan,
Fortunately, our Indian insurance industry is very well regulated.
They can’t just close down the business.
The solvency ratio or margin could ensure that the insurance company won’t go bankrupted. The solvency margin refers to the excess amount of assets that an insurance company must maintain over its liabilities. Also, Companies are required to keep the customers’ accumulated premiums very strictly separated from the company’s own assets, liabilities and expenses.
While forming an insurance company comes with numerous restrictions, winding it up is not an option. The Insurance Act states that in case an insurer cannot continue business sustainability, it must merge with another company. The insurer cannot hope to run away leaving its customers in the lurch.
Realistically, what all this means is that insurance companies never go bankrupt; if they do badly, they are typically bought up by a competitor long before things get that bad.
Kudos for the great article and for this lucid reply.
You should make the above query as a separate article because its one of the #1 fears of Indians when it comes to Life insurance.
Hi Sreekanth.. Is it advisable to buy ” Premium return plans”
Dear Karthik ..Personally, I believe a plain basic life cover can be considered instead of Return of premium plans..
Hi Sreekanth i have jeevan anand policy 10 lakhs for 25 years plan. I am saving 5000 in PPf. Other than that i do not have any other savings. My CTC is 4.8 Lakhs per annum. I am recently married and my age is 29 years. Can you please suggest should i have both health insurance and other term life insurance (i saw icici will give 1 crore after my death to my family). i come from a poor family . Please suggest i want to look after my family for future.
Dear Pavan,
Life insurance plans like Jeevan Anand does not offer you adequate life cover at affordable premium rate.
Suggest you to to buy a Basic life cover through a term plan from any Insurer of you choice.
Once you get a term plan, suggest you to discontinue your Jeevan Anand policy. With the saved premium, you can consider buying a Health insurance plan (for self+spouse) and a Personal Accident insurance plan for self.
Kindly red :
* Traditional Life Insurance Plan – A terrible Investment option?
* If Life is unpredictable, INSURANCE can’t be optional
* 11 vital factors to consider when choosing the Best Health Insurance Plan!
* Best Personal Accident Insurance Policies in India : Details & Comparison
Hi Sreekanth,
I like to take some good and beneficial child policy..which one you will suggest? I already have term insurance on my name
Dear Roshni,
If you have adequate life cover through a term insurance plan then advisable to consider other better investment alternatives than investing in an insurance policy.
Suggest you to kindly go through below articles :
* Traditional Life Insurance Plan – A terrible Investment option?
* Calculate how much you need to invest for your Kid’s Education
* List of Best Investment Options in India
There are whole life polices covering upto 100 years of age like ILIFE(AEGON) / Mera Term Plan (PNB MET LIFE) and LIFE LONG PROTECTION (HDFC LIFE) – out of these 3 plans HDFC LIFE Is very costly –
1. Can you pls suggest which one is better between ILIFE and Mera Term plan. Premiums for AEGON and PNB MET LIFE is reasonable.
2. IF we are getting ABOVE whole life plans AT the cost of term plans for 60/65 years with other companies (LIC /HDFC/ ICICI etc). then I THINK ONE SHOULD OPT FOR 100 YEAR PLANS – AT LEAST PREMIUMS PAID for years WILL NOT GO WASTE AND YOUR NOMINEES ARE GUARANTEED TO RECEIVE THE PAYOUT of INSURED AMOUNT.
I know that insurance is not required in retired life – however for any reason if you cannot pay premium in your retired life- inform your nominee – they will make sure to pay the premium as they will get handsome amount after you die.
Pls share your views.
Dear Tarun,
Kindly note that the mentioned Plans (Aegon/PNB) are Term life insurance plan and not traditional whole life plans.
Are you referring to Aegon ilife or iterm??
I am referring to Term plans for whole of life -offered by PNB MetLife and Aegon
I am referring to Aegon iterm plan only
Dear Tarun,
Ideally, insurance may not be required once an individual is free of obligations and financial liabilities, so age is not the main factor, but the financial profile is what is important here!
Basic Term Plan from any insurer of your choice as per your requirements is fine.
I need to clarify if whole life Term plan is better or limited term plan upto 75-80 year is better. If whole life is better then which one is best.
Hi Mr. Sreekanth,
It was a pleasure reading your lucid descriptions of term life policies and the comparisons. I have been searching for an answer to a simple query, but have not been able to get a definite answer. The question is, would it be possible for a person who does not have a regular income and no ITR returns but who has assets (land and houses) to buy term policies? In other words, is proof of income mandatory for buying even a small term policy, say, for 10 lakhs ?
Thanks and regards,
Aravind
Dear Aravind,
Income proofs like ITR/Form-16s are generally required to apply for Term insurance policies. Based on which an insurer can underwrite the insurance proposal (whether to accept or reject, whether to give the proposed life cover sum assured or not..)
However, you can contact any private (aggressive) insurer and try inquiring about the low sum assured Term plans. You may submit a net-worth document certified/prepared by a CA to them.
The standard income proof documents which are accepted by most companies are:
Last 3 months salary slips.
Income Tax Returns of last 2/3 years.
Latest 6 months Bank Statement with salary entries in the last 3 months.
CA certificate in case of Businessmen.
Latest Form 16 .
Hi Sreekanth,
Myself Kishore, 30yrs old and I am married.
In Dec-2017 I had taken the Term Policy from Maxlife with all riders (Critical Illness, WOP and Accidental Benefit).
During the policy proposal time I did not mention that I am a Diabetic, As I wanted to avail the Critical Illness.
If I would have mentioned Diabetic then I was not eligible to avail the riders like Critical Illness and WOP. So, I did not disclose it. Luckily Insurance company had issued me the Policy without any medical test.
I am a Diabetic since June-2017 and currently my sugar level came down as I am doing regular physical exercises and taking 1 pill in the morning.
In this case what shall I do now, Should I inform the same thing to Insurance company or not?
Thanks,
Kishore
Dear Kishore,
You should have disclosed your medical condition at the time of taking the policy itself.
Now, nothing much can be done!
If possible and eligible, you may take one more Term plan, opt for medical tests, disclose all the required details, mention your existing policy details as well..
In case, you get the new policy issued, you may review your insurance requirements and then discontinue your earlier plan.
Thanks a lot for your quick response.
Shall I cancel the existing policy from Maxlife and will buy new policy with the Maxlife itself by disclosing all the truth.
Will they able to track my old records and cancel (if death claim happens).
Whats your suggestion now?
Shall I go with the same company by giving all truth information’s or Shall I opt for the different company as they do not have my old records with them.
Thanks in advance!
Thanks,
Kishore
Dear Kishore,
They can very well go through the old records during underwriting of new policy.
You may first apply for a new policy through Max or any other insurer of your choice and then consider discontinuing the existing one.
Thanks Sreekanth.
If I try with Max definitely they will compare my current details with old records and It will impact my future claims, So better I will try with different insurer by giving truth information.
Hi Sreekanth,
Excellent Post. You may have answered this query before from other people because its a long list, I am asking it separately.
I have a query regarding FAQ 4 – You mentioned to preferably purchase 2 plans from same firm (incase one is opting to split up the term plan), is there is any specific logic why to it should be from same firm?
For eg: If one wants a cover of 1 Cr total – one can split 50:50 between LIC and HDFC (with permanent disability and critical illness riders), so incase any disability or illness occurs, they can still pay premium of LIC (with highest claim settlement ratio but high premium) and manage basic costs.
Dear Bhautik,
Keeping in view of ‘convenience’ and ‘claim settlement procedure’ for nominee or legal heir, as it will be with the same company.
There is no right or wrong answer for this. Its just a suggestion.
Wonderful Article!.
Last section about 3 years rule is a big relief. I am thinking of buying a policy this year. I have a question:
What kind of medical tests do we need to go through? Can an occasional smoker buy the policy as non smoker. (I guess he’ll have to pay a much less premium then.).
If a person outlives the term the policy won’t fetch any amount to the nominee. Shouldn’t then it be a better option to buy full life insurance policy with assured sum at death?
Dear Devdutt,
Medical tests as per the insurer’s requirements.
Smoker or non-smoker? kindly read this article : How Smoking impacts your Life Insurance Policy?
May I know, what do you mean by ‘full life insurance policy with assured sum at death?’
An online term insurance plan with return of premium
To ensure that our loved ones are never wanting in terms of financial resources to live the life of their dreams, protect their standard of living as well as ensure that any unfortunate event does not place on their shoulders the burden of our debts & loans. An online term insurance plan(Life Insurance Protection Plan) is a plan that is the ideal solution to provide a strong ‘foundation’ to protect the income of our loved ones.
Quality of service provided to its customers during the online buying process and after issuing the policy (policy life).
How do you measure it Sreekanth? The actual problem of servicing is in between the two, when the insurance companies do not issue policy and you need a continuous follow up.
Hi Sreenkanth,
29yrs/non-smoker. wish to take a term plan for 1.5 cr for 30yrs. I see a huge difference in the premium amount between LIC and ICICI. LIC – Rs. 21k p.a and ICICI – Rs. 11k p.a
Why is it so? your suggestions please.
Dear Gautham,
Different insurers, different under-writing rules, mortality rates, business strategy, marketing plans etc.,
No two businesses can be run in the same way, am I right?
Suggest you to read this post @ Quora..
Hi Sreekanth
My query is on below of your update:
“Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Is this apply on all the policies (old and new) or just only for those policies which are going to be issue after any particular date/year?
Regards,
Harpreet Singh -09899012543
Dear Harpreet,
I believe that it is applicable for policies issued after this amendment 2015 (could not find any official source to confirm this on net).
Thank you so much for your quick reply. This is my first experience when I am seeing this much quick response. Now I can ask my doubt which making me confused from last few days..
Actually I already have term plan of Rs. 60L of ICICI iprotect and that is with me from last 6 years. Now I wanted to increase my cover with 50 more lacs so I was thinking to take one more Term plan but now as you said old policy is not covering 3 yr. clause so I think best for me to close the old one and take the new plan with Rs. 1 crore so that I will be able to avail the benefit of 3 years.
Also I wanted to know with which plan I should go and which riders are necessary to take along with Term plan or I can take Basic Term plan and for riders I can take them separately (whatever best in market).
My request you to please suggest which Term plan I can go for and which those riders I can add and which are good (premium vise as well as feature wise).
I am sorry my query is littltbit long but your answer can help me a lot to take my decision.
I will be very thankful to you if you share your contact/mobile with me so that I will be able to clear all of my doubts instead of writing more on it.
My contact is 98990125** (Harpreet Singh)…. thx very much in advance for your superfast reply.
Please reply Sreekanth, awaiting for you response on my query. after that I can decide to go for my term plan. thx
Dear Harpreet,
Sorry for keeping you waiting, generally I try to reply to blog comments within 24 hours 🙂
As mentioned in my previous comment, there is no official source to confirm if the said amendment is applicable only for policies issued after 2015. But somehow I believe that it is the case.
If you are confident that you have disclosed all the required information while applying for your first/current Term plan, kindly do not worry about the claim (if any) settlement.
Else, if you have eligibility and requirement, you may apply for Rs 1 cr (second policy) and check if you can get the basic cover.
Suggest you to kindly opt for stand-alone Personal accident cover.
Kindly read: Best Personal Accident insurance cover.
Do you / family have health cover?
Thx for reply. Yes I have family health plan of Apollo Munich (optima restore) of 10 lacs. Please suggest which term plan can be best for Rs. 1 Cr. ( I was thinking for Aegon Religare) as that have less premium with good claim ratio in industry. If I go with 1 cr. premium is around 18K or I will go with 50 lac premium is Rs. 10000. As I said I already have 60 L icici iprotect where I am paying 10717.
so if I will go with 2 policies (60 L + 50 L), premium would be (10717+10000=20717). If I go with one policy of 1 Cr. premium would be 18000. That’s why confused should I go with 2, keeping the old policy as it is or shall I close the old one and go for the new one of Rs. 1 cr.
one more thing which company’s rider is good to opt.
thanks for your precious time which you are giving to me.
Dear Harpreet,
You may keep the old one and apply for second policy, may be this is a good option.
Suggest you to buy a stand-alone Personal Accidental insurance plan.
Thanks very much Sreekanth for all of your updates. This is very much appreciated.
Hi Harpreet/Sreekanth
It is applicable for all the policies after the amendment. Insurance company can not reject your claim after 3 years even if the policy has been bought in 2010.
Its not advisable to close your old policy, infact buy a new one with the extra sum assured.
Thank you Ajay for sharing this info.
If you have any official source/link regarding this, kindly do share it.
Hi Sreekanth Reddy,
I am 34 years old, have the following LIC Jeevan Anand Policy
Started in March, 2004
Yearly Premium : 22556
Sum Insured : 5Lakhs
Is it better to surrender this and take term insurance plan , I have paid premium for 13 years.
Among Kotak, Max Life insurance which one is better .
Dear Mahender,
What is the tenure of this policy?
Suggest you to buy a Term insurance plan and then can make this policy PAID-UP.
Kindly read: What is paid-up policy?
Hi Srikanth,
Can we change the nominee name in future, if we buy the term insurance in online. ?
I want to buy a LIC term insurance in online, will they provide Accidental death benefit by default or it comes under any optional rider .
Please answer my questions.
Thanks you
Dear Ram,
Yes, you can change nominee name.
I believe that no riders are available with LIC’e e-Term plan.
Hi, Am Vijay and 40 years old. I would like to take Term Insurance Plan now for 75 Lakhs or 1 Cr. I gone through all the said options and bit confused. Could you please suggest me your personal choice for me?
Thanks,
Vijay Kumar A
Thanks for the information on life insurance online it was really helpful. Look for more blogs.
Thanks for same. e.g. like AIG was about to go bankrupt and in any chance operation has been ceased and that company is being bought by another company so will subscriber will get same level of coverage ( as mentioned 50 lacs coverage for 75 years)..if this is case and their is gurantee that after 3 years of service insurance company can’t deny claim then why any one should go for costly cover like ICICI pru or any if i can get same coverage for 1/2 price from AEGON.Please suggest which one should i buy ICICI/Aegon or max life and looking for Accidental rider
Dear akshay,
Each individual has his/her own requirements, perception, affordability, bias etc
Yes, once the policy is issued, same terms & conditions apply even if your insurance co gets acquired by another one.
Suggest you to consider stand-alone Personal Accident cover plan.
“Each individual has his/her own requirements, perception, affordability, bias etc” — if i want a basic life cover, shouldn’t i go for the cheapest one ?
Regards,
Deepak
Dear Deepak ..If it meets your other requirements, yes..
Dear Sreekanth
Thanks for great information.
I want to take 1 cr plan (M/29yrs/Non-smoker). Please help me to decide which company I should choose among: LIC/ICICI/HDFC/Max?
Which will be your personal choice. I know you might be hesitating to tell here. Can I request you to please mail me on nikhil.w***@gmail.com (if this is the case)
I am really very confused. I want my family to be protected as I am the main source of income.
Please advise.
Thanks
Nikhil
Dear Nikhil..just now replied to your msg on FB..kindly check.
Hello Sreekanth,
I am also in same situation, so please answer me as well for same.
I think its very common for our age person.
Thanks in advance.
Regards,
Ankit A
Hi sreekanth, I m also in same situation. I am 28 yrs I want to take 1 cr plan (M/28yrs/Non-smoker). Please help me to decide which company I should choose among: LIC/ICICI/HDFC/Max?
Which will be your personal choice. I know you might be hesitating to tell here. Can I request you to please mail me on kldpk75**@gmail.com (if this is the case)
I am really very confused. I want my family to be protected as I am the main source of income.
Please advise.
Dear Kuldeep,
Kindly reach me through Contact page..
Hi,
I am looking to buy Term insurance plan for my self Already i have taken Aviva term insurance for 50 Lacs and planning to take another 50Lacs from different provider. My query is what happened in case of Insuring company ( e.g. Tata or AIA) bankrupted, closed then what will happen to policy holders policy and claim ( after his death)..pls clarify
Dear akshay,
Fortunately, our Indian insurance industry is very well regulated.
They can’t just close down the business.
The solvency ratio or margin could ensure that the insurance company won’t go bankrupted. The solvency margin refers to the excess amount of assets that an insurance company must maintain over its liabilities. Also, Companies are required to keep the customers’ accumulated premiums very strictly separated from the company’s own assets, liabilities and expenses.
While forming an insurance company comes with numerous restrictions, winding it up is not an option. The Insurance Act states that in case an insurer cannot continue business sustainability, it must merge with another company. The insurer cannot hope to run away leaving its customers in the lurch.
Realistically, what all this means is that insurance companies never go bankrupt; if they do badly, they are typically bought up by a competitor long before things get that bad.
Thanks for same. e.g. like AIG was about to go bankrupt and in any chance operation has been ceased and that company is being bought by another company so will subscriber will get same level of coverage ( as mentioned 50 lacs coverage for 75 years)..if this is case and their is gurantee that after 3 years of service insurance company can’t deny claim then why any one should go for costly cover like ICICI pru or any if i can get same coverage for 1/2 price from AEGON.
I have disease Multiple Sclerosis since last 6 years and major problem is walking difficulty apart from this I don’t have any other problem, kindly advise me can I go for Term Plan for 50 laks.
Dear sanjay ..You can apply for a term plan but it depends on insurer’s underwriting (risk analysis) rules, whether you are going to get the policy or not. They may charge extra premium (loading) and issue the policy.
Suggest to try with few life insurers.
Dear Sreekanth,
Thanks for being so prompt to help. I’m 35 years old. Based on the comments below, I deduce that you suggest buying term plan without riders and go separately for personal accident cover and critical illness plans. Won’t buying these separately cause the overall total premium (aggregate) to increase substantially? Are there concerns in relation to limitations in coverage when riders are clubbed with the term insurance plan itself or the reason you suggest to not take plan with riders purely on premium swelling up?
Dear Jaspreet,
The optional riders linked to most of the available Term plans (especially the online ones) do not offer comprehensive cover ie disability or CI.
Accident death benefit rider is available with most of the term plan but Disability risk cover is not provided, which I believe is an important risk cover.
Also, if ones family has a history of any critical illness, better to opt for stand-alone cover.
One can check the risk cover (life, accident & CI) and premium quotes separately, if not affordable then of-course can take a term plan with riders.
Read: Best Personal Accident insurance plans.
Hello
I wan to know that is e-term Plan are safe, are Insurance company settled clime easily if there are any genuine case. ?
What is batter ? Go for offline term Plan or E-term Plan ?
Hi Bhavesh,
Claim settlement procedure & process is same for both online or offline cases. If you are comfortable with online mode kindly go ahead and buy online (directly).
Kindly read: Latest IRDA Claim settlement details 2015-2016.
Hi,
Reddy,
my question is
what is the meaning of a smoker while purchasing term insurance.
If i used to smoke in 2015 and since starting of 2016 , i quit smoking.
Then in 2017, i m going to purchase policy, then , i will come under what category ? smoker or non-smoker.
Please clarify.
yashraj
Dear yashraj ..Kindly read this article, can be useful to you : How Smoking impacts your Life Insurance Policy?
Dear sree!!!
Can you suggest best health insurance plan. I am 30, married, also wanted to include parents in the policy.
Thanks
Dear Abhee,
Advisable to buy separate mediclaim policies, considering the age profiles.
Kindly read:
Best portals to compare health insurance plans.
Evaluate these factors when buying a health insurance plan.
Hi Sree, I don’t have a birth certificate(Birth year 1976). Also my official birthday, which my passport, aadhar, voter id, school certificates says five months prior then my baptism certificate. It will create any issue to my nominee getting term insurance claim, if anything happens to me.
Dear Arun,
I believe that it should not create any issue.
nice article… thanks for the info..
Dear Sir,
I wish to take a term plan. Kindly suggest mee which will be better ..Basic Term Plan or Term Retrun of Premium (TROP).
Thanx,
Sudarshan
Dear SUDARSHAN,
Advisable to consider pure/basic term insurance plan and may avoid ROP term plan, they are costly.
Dear Sir,
I want to buy a term plan of cover Rs. 1 Cr. My objective is to get cover of max possible duration, which would be upto age 80 years.
I want to select one of the following:
1. Max life
2. Aegon life
Although Max life’s CSR is better, they aren’t providing cover of more than 35 years age.
And Aegon is although giving cover upto age 80, their CSR is comparatively low (though they claim to have improved year by year and their customer representative was claiming FY 15-16 CSR to be around 95%.
Aegon is cheaper, has better riders , gives housewife term plan cover option also .. my only hitch is their CSR.
Can you please suggest what should i do in this regard?
Dear Vinay,
CSR is important but not the FACTOR any more, provided you disclose the right/complete info in proposal form.
“As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 years old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Hi Sreekanth,
1) I am 30 year old single guy and i want to get online term insurance plan for 30 years for sum assured of 50 lacs + Please suggest which online term insurance would be the best. ICICI or HDFC or LIC? Which one you would personally recommend knowing my current situation.
2) Is it better to put money into more than one term insurance or only would suffice the purpose.
3) Also, as of today i pay 32500 as yearly premium for LIC jeevan anand and 10300 for LIC jeevan saral. Please advice if i should continue this or any changes are required.
Jeevan Saral
DOC – 14 Sep 2009
Sum Assured : 2,00,000
Policy term : 35
jeevan anand
doc – 14 sep 2009
sum assured – 6,00,000
policy term – 21
4) I dont have any medical/health insurance. Should i get one for my senior citizen parents along with me. Please suggest one.
5)I will be getting married next year and have 3 dependents in the family and i am able to save 50000 a month. Would like to know if the insurance is sufficient or i should get more?
Thanks,
Pankaj
Dear Pankaj,
1 – You may rethink about your decision to buy a term plan, if you do not have dependents and/or do not have any financial obligations.
Do you have adequate health insurance and Personal accident insurance coverage?
In case if you buy a term plan, you may Surrender both the existing life insurance plans.
Kindly read:
How to get rid off unwanted life insurance policies?
Traditional life insurance plan – a terrible investment option?
Hi
I has taken HDFC click to Protect term Insurance policy of Rs. 75.00 Lakh in the year 2012 for 30 years period and i had paid the renewal premium in 2013 but due to some reasons i didn’t paid the premium for 2014, 2015 and 2016 and now i am planning to pay the fine and to renew the policy. My question is as follows:
1. Is it good to continue with the HDFC click to protect policy if good is their option for medical checkup
to renew the polciy.
2. If not good means can i go for LIC e-term insurance policy.
kindly give your suggestion
Dear Ravindra,
You may opt for renewal of the lapsed term plan. Yes, there can be a medical-check up. Kindly check with your insurer.
HI SREEKANTH,
JUST ASKING A THEORITICAL POSSIBILITY. DONT KNOW WHETHER ITS RIGHT OR WRONG.
SUPPOSE IF A PERSON WANTS A TERM COVER OF SAY 1 CRORE. IF THE SUM INSURED IS SPLIT INTO 40 L, 30L, AND 30 L AND GIVEN TO 3 DIFFERENT INSURANCE COMPANIES. DONT YOU THINK CLAIM WILL BE BIT EASIER, AS NO SINGLE INSURANCE COMPANY HAS TO PAY BIG AMOUNT AND THEY MAY SETTLE IT RELATIVELY EASILY? SAY LIC 40 L , HDFC AND ICICI 30 L EACH. THESE AMOUNT OF CLAIM IS NOT BIG TO THEM. BENEFICIARY WILL GET 1 CRORE RELATIVELY EASILY. USUALLY WHAT I OBSERVED IS INSURANCE COMPANIES TAKE TIME TO SETTLE BIG AMOUNT CLAIMS (BASED ON THEIR BENEFIT AMOUNT SETTLED). THEY WILL BE CAUTIOUS IN SETTLING HUGE AMOUNT CLAIMS. KINDLY SHARE YOUR THOUGHTS. IS IT WRONG TO OPT MULTIPLE INSURANCE POLICIES FROM DIFFERENT COMPANIES?
REGARDS AND THANKS
RAJ
Dear Raj,
Kindly post your replies/comments in ‘Small-caps’. Thank you!
Claiming from three companies by the nominee(s), is n’t it tedious? Rs 40 L or Rs 30 L can be a big amount but may not be to the insurance company. Once they issue the policy and if the info submitted by the policyholder is correct, they have to honor the claim(s).
However, it is not wrong to opt for insurance cover from multiple companies though.
“As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 years old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Hi Sreekanth,
Sorry for “Caps”. Does Sec 45 of Insurance Act means that, after 3 years of running of policy, insurance company has to settle claim, even if the cause of death is from “Exclusion criterias?. what i mean is they have certain exclusion criterias like suicidal clause, HIV, Hepatitis B and all, related deaths and so many other things which they mention in the policy document. If after 3 years of time, if the insured dies due to reasons which the insurance company has mentioned in “Exclusion Criteria”. then will the insurance company honour the claim?
regards
RAJ
Hi Sreekanth,
you are right. 1 crore is huge amount for nominee. what i was thinking was from insurance company perspective. by splitting the insurance coverage, each company has to pay an amount which is not huge to the company. So i thought they will settle it with ease. any company will settle 25 L easily than a 2 crore insurance. in the latter case, they keep it pending for long duration. this is evident from their benefit disbursed percentage. So i thought.
regards
RAJ
Dear Raj..Kindly note that exclusions may also have certain time-limit. For example : There is a standard exclusion for claims on suicide in the first 12 months from date of commencement of a life insurance policy.
DEAR SREEKANTH
HOPE IT WILL BE OF SOME HELP TO THIS BLOG READERS. BOTH LIC AND ICICI ARE GOOD. BOTH ARE ISSUING POLCIES IN GOOD TIME. LIC TAKES 20 DAYS. ICICI TAKES 10 DAYS.
ONLINE REPLY FOR DOUBTS RAISED BY CUSTOMERS , WILL BE REPLIED BY BOTH COMPANIES, BUT ICICI IS VERY QUICK IN SERVICE IN ALL MATTERS, LIC TAKES LITTLE TIME BUT GOOD SERVICE THEY PROVIDE.
ITS GOOD TO UNDERGO MEDICAL TESTS, AS AT THE PROPOSAL STAGE ONLY PERSON WILL COME TO KNOW ANY PROBLEMS IF ANY, WHICH CAN HINDER CLAIM SETTLEMENT PROCESS. SO HE CAN TAKE ADEQUATE PRECAUTIONS. I WOULD LIKE TO ADVICE BLOG READERS GO FOR A POLICY WITH MEDICAL TESTS. LIC DOES EXTENSIVE TESTS WHEREAS ICICI TESTS ARE SIMPLER.
CUSTOMER CARE SERVICE OF BOTH COMPANIES IS VERY GOOD AND CORDIAL.
OVERALL EXPERIENCE WITH BOTH THE COMPANIES IS VERY GOOD. YOU CAN CONFIDENTALLY RECOMMEND THESE TWO PRODUCTS TO ANYBODY.
RELAKHS.COM IS DOING GOOD JOB.
WARM REGARDS
RAJ
Thank you dear Raj for sharing your views.
I have few queries in online term insurance policies .Please guide me
My age is 30 and looking to have 25-30 lakhs of SA.My queries are
1)If we buy policy by online , How the bonds and documents will reach to me ?
2)Is term insurance covers accidental/ if terror attack /murder by some one as well ?
3)I have mailed few queries @ [email protected]@licindia.com 15 days back,but still they not replied .How to trust LIC online plans if this is the case ? ?
4)For example ,25 lakhs SA, 30 years term, premium rates are different in each company . Is there any thing hidden by company’s since rates are different ? If i take low premium policy offering company ,any problem in future?
5)Please suggest any good plan if you knew.
Thanks
Manju
Also one more question , After buy of any term plan Is there any chance of getting premium rates getting increase by company’s stating tax hike or other reasons.?
Dear Manjunatha …Base premium rates will remain the same. The premium rates for OPTIONAL RIDERS may change, depends on the plan terms & conditions.
Dear Manjunatha,
1 – By post and/or Email.
2 – Most of the term plans do not cover risks due to Terrorism. Kindly check your policy or with insurer on this, as this clause varies from insurer to insurer.
3 – You may go for other insurance providers.
4 – Cheap is not the best, and also cheap is not bad. Kindly opt for a term plan of your choice as per your needs and affordability, and disclose all the required details in proposal form honestly. That’s enough!
Hi…I am Rakesh Khurana. I am looking for 3 Crore term plan. Please advise best options. Please also advise good riders which are must currently.
Dear Rakesh..You may buy the term plan from a company of your choice.
Base cover through term plan + stand-alone Personal accident plan can be considered.
Dear Sreekanth,
Very informative post. Any reason you have not covered PNBMetlife; seems to be a decent policy.
Dear Ravi..Kindly note that above list is not a comprehensive one and I am planning to update it very soon.
One can take a Term plan (with basic cover) from any company of his/her choice 🙂
Dear Shreekant,
Dear Shreekant
In the list of online term insurance plan i am confused between HDFC and MAX LIFE.
I wish to insure myself for 5cr. As per policybazar in HDFC the premium is Rs.81334/- per year and accidental disability benefits are included by default. In MAXLIFE the premium is Rs.57500/- per year. If I add accidental death+disability the premium is Rs.67857/-
Since the premium of maxlife is less i wish to buy this plan.Also i work in high risk zone hence accidental death and disability will get covered. And the claim settlement ration for MAX is 96.6%.
Out of the two which one will u advice to buy.
Regards
Dear ARUN,
HDFC Life & Max Life are going to get merged in few months as one entity 🙂
Merger.. So how will this effect both their policies (both companies)? Will the premium change? Should i wait for the merger to happen.Or should i just go for it?
Dear Arun ..Kindly do not postpone your decision to buy a term plan. I have just given you the information.
You may actually buy a term plan from a company of your choice and based on your affordability.
Thank You Dear.
You have been of great help.
Thanks Sreekanth, I have a 1 cr. term policy with MAX life. After merging with HDFC, my annual premium also increase (same as HDFC premium) or continue the same?
Dear Jins ..Should be the same 🙂
Dear srikant sir, I want to take term policy but I confused with number of companies, please suggest a good insurance company.
Dear prem ..You may just take a basic cover from a company of your choice and based on your affordability.
Dear Sreekanth,
Myself Deepak Gupta aged at 28 years. I have read 2-3 forum with respect to term insurance and came across that everyone says please consider amount of premium while selecting insurance company.
But my point of view is that when I am taking a decision to cover my life for my dependent after I am no more available for them, Should I really think of PREMIUM AMOUNT ????
Dear Deepak..It is purely ones personal choice. You may a term plan from the company of your choice.
Dear sir,
suppose mr x has two term insurance from 2 different company and they have not intimated about this information to both the companies.. he has not disclosed this at the time of proposal form.
after expiry of 3 years policyholder dies.how will it be claimed because there is two term insuarnce?
and will insurance companies honour the claim or not?
Dear govind..I believe that Not disclosing details of ones old Insurance policy can lead to Claim Rejection.
But, kindly note this recent amendment :
As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.
1.and will there not be any kind of investigation from insurer side after the 3 years of policy life?
and will it be settled in 30 days as per IRDA Guidelines.
2.- can a married women make his real brother as nominee in her term insurance or not.
3.-suppose policy life is 2 years and 9 month when policy holders dies…if nominee files for claim after 3 months …i.e. after 3 years of policy starting date. it will cross 3 years..will it be treated early claim or non early claim..
dear sir , kindly give focus all above question .thanks in advance
Dear govind,
1- Yes.
2 – She can.
3 – Generally the life insurance companies prescribe the time limit for submitting the Claim form and documents once an unfortunate event happens. It can be 7 days to 30 days in general.
I am buying a term insurance for myself to secure my wife for 2cr. I was advised that I should not go for accidental additions and term illness as it increases premiums.
couple of questions:
1. But if I die in a car crash, will my wife not get sum assured? What are the death incidents covered under insurance?
2. Will my wife’s maiden name be used to fill nominee details or her name after marriage?
3. Can I have two nominees and add my child in future? how is the claim settled if there are two nominees?
Thanks for all the guidance!!
Dear Amit,
1 – Claim will be paid in this case. But say if one loses two limbs (permanent disability) then death claim is not paid. I believe that death due to terrorist activities, earth quake (large scale damage) etc are not covered. But some term plans do cover these too. You have to check with your prospective insurance company before buying the plan.
Yes, instead of adding Riders, better to take stand-alone Perosnal Accident cover and/or Critical Illness plan (if required).
2 – As per the valid ID proof (passport/Aadhar).
3 – Yes, you can have multiple nominees and can change/add nominees in future. You can define the % of claim to be paid out to the nominees in the proposal form, in case of a claim.
Dear, Srikanth Sir, i want to purchase an online term insurance policy. But myself/insurer an physically handicapped person from my birth. So can i purchase the online term policy ? Am i eligible for for buying term insurance policy? Please give reply?
Dear Naveen ..You are eligible to buy. But do mention about your physical challenge in the proposal form.
Thank you Sreekanth sir for your reply..
My own inquiries reveal that LIC & SBI ON LINE term plans are not available for NRIs. Is it true pls ?
Dear Tom,
I believe that plans (SBI/LIC) are available for NRIs.
LIC even has a dedicated portal for NRI clients – LICinternational .com
Thanks Mr Reddy,Like U said the recent changes include NRIs. Some say that if you plan to stay abroad for a few years and then return to India say after 4 years,it is better to buy an on line PSU company vanilla policy (which is very cheap comparatively) now and when you return,port it to a latest one which meets all your future requirements. By this time you would have completed the waiting period for pre-existing diseases. Of course you will not be able to avail any meaningful benefits during this 4 years !
Hi, sreekanth sir, I am 38 yes old in defence alcohol and tobacco user looking for best term plan (5000000) which covers all types of death and easy claim settlement because any thing happens to me my nominee should not suffer for claim. Secondly in which mode of payment (monthly, quarterly, half yearly or yearly) should I pay and for this much cover what medical test they will do and the copy of medical they will give it to me or not. Kindly reply soon. Thank u very much.
Dear Sunil,
Any term plan which meets your requirement and affordable to you can be considered.
You may kindly consider aggressive private players likes Aegon, Max Life, Kotak etc.,
Premium mode of payment is based on your convenience. If it is affordable, kindly opt for annual payment.
I believe that you can request for medical reports from the insurance company.
Sreekanth sir, what do you mean by aggressive private players.
Dear Sunil..I mean, some life insurance companies do accept ‘high risk profile’ proposals and offer Life cover either at regular rates or by loading the premium. My observation is, players like LIC, HDFC or SBI are a bit conservative.
Hello srikanth,
what would be the best term plan for a 25 Year old female who wants to get covered
upto the age of 75?? Usually females do survive 70+ and if one wants to take a policy @25 Then max age upto which they will get covered is 65. So ????
Dear Divyu,
The life cover is generally required till the expected age of Retirement and/or till the time one believes that there will be financial obligations/liabilities to plan for. Beyond that period, life cover is actually not required.
What is the best critical health insurance policy in 2016?
Dear Pravat ..It depends on your requirements!
Kindly read this article : Best health insurance portals to compare health insurance plans!
Hi,
thanks for the details, but is the list comprehensive…..can you please tell me why Aviva is not in your list?
I have an Aviva term plan and paying premium for past 3 years….wanted to know if there is any issue with Aviva that you found?
Dear Suresh,
The above list is definetly not an exhaustive one.
Also, new term plans keep coming into the market. So, my suggestion to blog readers is to buy a term plan from a company of their choice, as per their requirements and affordability.
Hi,
want to take a term cover for wife, age 30, diabetic,but got more than doubled revised/counter offer from Max and AEGON, pls suggest for which insurer shall I try where counter offer will be less.
Dear bina ..Any plan is fine. Kindly disclose all the details accurately and honestly in proposal form. Do disclose about the diabetic condition.
Read:
My blog reader’s perspective on Aegon’s Term plan.
IRDA’s Claim settlement data.
Sir,I want to take E-term plan for ten years of Rs.25,00,000/- through offline in the Life Insurance(LIC) But in my mind coming one question that after dead a person (any type), Please let me know will the nominee can get the total value immediately.Pl guide me.
Dear DILLIP ..Yes, provided the information provided in the proposal form (application form) is correct and no info has been concealed.
“As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Dear Mr. Reddy Can I go for Icici or Pnb met Life for my father having an annual Income of Rs.3,00,000. His age is 55 yrs, doing good but does use tobacco products. is diabetic and has cholesterol problem.
Have gone through a few reviews where I found that the above companies does not refund first premium which is paid after filling proposal form in cases where policy is not issued on certain grounds.
Second point is about Settlement ratio as Data for settlement rati0 exclusively for term plans are not available. So how to trust them
When went for LIC, proved to be costly and there is no monthly or semi annually premium payment option in LIC.
Dear Sonu,
You may consider any term plan which you are comfortable with.
But considering the age & medical profile, getting a term plan can prove very costly affair or some companies may not even offer life cover.
Does he has adequate health insurance cover?
Claim settlement for term plans exclusively is not available. But kindly note that “as per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
dear sir,
i made the following 2 policies.
1. LIC WEALTH + in feb. 2010 by investing 60,000. the present value is 71,000. now should i surrender the policy or hold it, as i came to know from the websites that LIC will go for a IPO very soon.
2. on oct. 2008 i made a policy in BSL FREEDOM 58. the total premium paid for 5 yrs. is 1,20,000. now should i surrender the policy at present NAV?
pl. guide me. because your suggestion is very valuable to me.
Dear KAUSHIKI,
If it goes for public listing, may I know how will it benefit you directly as a policyholder?
Kindly note that if your requirement is life cover, you can buy a Term insurance plan (if you do not have one) and discontinue these policies.
If your objective is returns then there are better investment alternatives.
Hi Sreekanth….I intent to buy the Online term plan for LIC …however the extent of details required is so much that I am afraid now how it will be interpreted….My intention is not to hide any real facts but there could be a possibility as it seeks very minute details which i may even not remember….Is there a possibility if some of the minute details are missed which creates problem during claim settlement???
Dear Ankit,
As much as possible you disclose the details honestly and accurately.
Also, note that ‘As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.’
Please let me know if a term insurance policy can be rejected due to educational qualifications. My father is below metric and earns an income of 18+ lakhs a year through agriculture. However, PNB Metlife rejected insurance stating my father educational qualification and also mentioned it is as per IRDA guidelines.
Dear Vinay ..Yes, it is possible and can be as per an Insurance company’s under-writing guidelines.
Recently I have seen Aegon rejecting a proposal form for a Term insurance plan on similar lines.
Sir, I want to buy online term plan. What about ICICI term plan? Which one is better ICICI or HDFC life? Can you suggest any insurance company??
Dear Dharmaraj,
Both are equally good.
Kindly read:
IRDA’s latest Claim settlement ratio.
HDFC’s Click2Protect plus review.
Aegon’s iTerm plan review by my blog reader.
ICICI Prudential’s iProtect smart plan review.
NON-DISCLOSURE OF OTHER INSURANCE DETAILS
Being an expert in the industry, I would like to clarify the following
point with you :-
I have taken a term policy from Max Life recently for Rs.50 Lakhs.
My diabetic history was disclosed in the proposal. Though the
medical reports were normal, life insurance company charged me
50% extra premium based on my health declaration.
I have 4 personal accident policies and 2 mediclaim policies in my
name which I mentioned on my proposal form. How ever, I forgot
to give the details of 2 term polices which were lapsed in 2013.
Actually, those term polices were taken in 2012 but I discontinued
them due to the over charging of premium (on my health ground).
And I don’t have those policy details also. So I could not give the
details of those policies on proposal form.
Also I didn’t mentioned in the proposal form that I had been charged
with extra premium by other insurance companies earlier. However,
details of all current (existing) policies were given on the proposal.
In your expertise, should I ignore my new term policy and go for a
new term insurance plan to avoid any complications due to
concealment of fact and insurability.? Will my nominee face any
problem in case of a claim, since I didn’t mentioned the details of
expired policies.? Will this issue be treated as a very serious offense
even after paying the premium for 3 years.?
Please revert.
Regards,
Mathew K
Muscat
Dear Mathew,
I believe that this would not be an issue as the policies are lapsed.
Also, kindly note that ‘as per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.’
Dear Sreekanth,
This is Kaushik (32) from Kolkata. Me & My wife (30) both having one Jeevan Anand Policy
Sum assured: 5 lakhs, premium 30,000/- annually for both the policy, Term: 33 Years, policy is already more than 3 years.
We have our son (2 years). There is no Health Insurance Plan/ No Accident coverage/No loan liability.
Just started SIPs in DSP Black Rock & Franklin Templeton Smaller Companies. Mainly Invested in FDs & RDs around 10 lakhs. Have our own House.
Need your suggestion for Long term Plan regarding Child Education/ Health Coverage & Retirement Fund
Please suggest me in my mail : Kaushik.** @gmail.com
Kaushik Samaddar
Kolkata
Mob: 9830601***
Dear KAUSHIK,
1 – Kindly buy a Term insurance plan at the earliest and can surrender LIC policies. Is your wife an earning member of the family?
Read:
How to get rid off unwanted life insurance policy?
Traditional life insurance plan – a terrible investment option.
Best Term insurance plans.
2 – Consider buying a Personal Accident insurance cover with Disability risk cover.
Read: Best Personal Accident insurance plans.
3 – You can also have a look at Family floater health insurance plans.
Suggest you to go through this article (for planning your finances) : List of articles on key aspects of Personal Financial Planning.
4 – Any specific reason or strategy for maintaining Rs 10 Lakh in RDs/FDs?
Hi,
This information is too dated.. Claim Settlement Ratios for 2014-15 have already been published and many insurers hvae already launched multiple new products
Blog is Irrelevant
Dear Vaibhav,
Agree to some extent.
Kindly note that I have already provided link to 2014-15 Claim data and provided few links on the latest / popular / new term plans.
But will surely update the TABLE with the latest details.
hi shreekant,
i am confused between LIC and ICICI Term plan, can you help me which one would you suggest where at one side LIC is there with high settlement ratio and then there is an ICICI Term Plan with additional critical illness which giving the add on benefit to cover some of the terminal illness with same rate or premium.
let me know your views is there any marketing gimmick in addding a terminal illness as ICICI is also one of the reputed brand.
Dear Dilip,
Even if it is a marketing gimmick, you go for it if it is required.
Also, note that “as per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
So, claim settlement ratio is important but its no more THE FACTOR.
Kindly disclose all the required information in the proposal form accurately and honestly. You may buy a term plan from a company which you are comfortable with.
Dear SreeKanth,
I was going for HDFC eterm plan and infact I have already did medical exam and paid the fee but I have not accepted teh offer yet. After knowing that HDFC and Max life are merging together and max life term plan is 15% cheaper than HDFC, do you suggest to go for Max life rather than HDFC or you should I still go with HDFC?
Thanks,
Looking for your fast respond please. 🙂 (offcouse not faster than light :P)
Dear Prem,
It may take time for the merger process to get completed. I believe that the whole merger process can take anywhere from 12-15 months.
Also, the scheme of arrangement has to get regulatory nods from the Competition Commission of India, the Insurance Regulatory and Development Authority of India, the Securities and Exchange Board of India (Sebi) and a high court.
So,advisable to go ahead with your purchase. Kindly don’t take undue risk.
Hi Sreekanth,
Does Term Plan covers Terrorist attacks, war etc.?
As HDFC & Max are going to merge, which Term plan you recommend.?
Thanks & Regards,
Raghav
Max life term plan is best in term policy category. Is something that I miss ?
hi Sreekanth, thank you, by reading your blog and answers to all the comments my quires are answered, Please comment on below scenario,
1: I am 27 years, unmarried man,earn 5 lakhs per annum, have 27 lakhs home loan, 5 lakh cover from LIC for more 7 years, 1 each life and accident insurance from prime minister yojna of 2 lakhs each, hence total of 9 lakhs of life insurance.I need to purchase a term plan to cover the loan risk, should I target for 50 lakhs or 75 lakhs of sum assured ,for 40 years?
2: Since I became a ICICI advisor, I get a rebate on the premiums hence I am inclined to buy the the ICICI pru IProtect Smart as the premiums are very low as compared to LIC which is also seated in my heart from childhood 😉 Which one to choose?
Thank you.
Dear Pradip,
1 & 2 – If possible, kindly share the details of your LIC policies (Plan name, tenure, commencement dates etc)
Do you have any dependents? Are you planning to get married in near future?
If you do not have a Personal accident insurance cover, kindly buy it.
Read: Best personal Accident insurance plans? Why it is a must have cover?
Hello, I am looking for a basic term plan and I will go with one of the companies as per your list. I have a health plan too but the amount is very minimal. I will also have to take a personal accident insurance to cover disability. After all this I don’t see where will a cover for critical illness be covered? I need a cover for critical illness also.
Dear Rajeetta,
Stand-alone term plan, PA plan & health plan a must have ones.
A stand alone CI plan can be considered if in case your family has an history of any major critical illnesses.
Read:
Best Portals to compare health insurance plans / CI Plans.
Evaluate thees important factors when buying a health plan.
Thank you so much for your advise. I wanted to finalise a term plan and was confused between the Icici and Kotak e plans. Kotak is looks good for a basic term plan. 1 reason why I am holding onto Icici is that it offers a WOP in case of permanent disability. Is it a useful feature to take?
Dear Rajeetta,
The more value added features/riders you add, you have to bear more premium amount. So, its all about affordability. Also, kindly read the terms & conditions related to WOP on PD.
If you have comprehensive and adequate cover through PA plan then WOP may not be required.
Hi.. thnk u so much fr dis article..
My question is I want to buy the eshiel SBI policy of 5000000 with increasing assured money. The premium in online SBI portal and when I asked to SBI agent has a drastic change of about 2-3K. Why so? And should i go for online or offline plan?
Also, you said about claim being remjected due to documentation. Can you please enlist few chekpoint for documentation while buying online plans?
Thankx.
Dear Chirag ,
Offline premium rate includes charges towards marketing/commissions expenses.
Online plans which are bought directly from the company are cheaper than the offline ones, as no intermediary is involved.
If you are comfortable buying a term plan online, kindly buy it directly from the said Life insurance company.
One needs to provide and disclose all the required information in proposal form honestly. Do not conceal any information. Do provide all the details related medical history/treatments done (if any) in the past and about the existing illnesses (if any).
Thank you Sreekanth..!
Hi Sreekanth,
A doubt on the premium for term insurance. When you buy a term insurance, companies charge say Rs.7000/year for a 30 year old non-smoker for 25 years. Does the premium ever change during the tenure?
I think 7000 Rs after 10 or 15 years is worth next to nothing as inflation catches up.
In case of health insurance, they say our premium increases as we move from one age band to another (say 35-40 to 40-45). Is that true?
Dear Pradeep,
The premium for basic cover remains the same.
Instances like where a policyholder opts for basic cover + say critical illness rider, then the premium rates can change periodically. Kindly read the policy wordings and terms/conditions.
Health insurance – Yes. Sometimes there can be other reasons too. But health insurance company will inform you about the hike in premium rates (if any) well in advance. The hike can be as per the IRDA’s guidelines only.
Hi Sreekanth,
I want to buy eTerm plan of LIC – I was an occasional smoker but I quit smoking 8 months back. I’m guessing i’ll fail the non-smoker test anyway as it wasnt too long ago that i quit – therefore I intend to declare myself as smoker in the eTerm form.
However, I’d want to get converted to the non-smoker category after a few years (substantial difference in the premium). I can’t find any information on this conversion option anywhere.
Any clue if this option is offered by LIC?
Thanks,
Abhi
Dear Abhi,
As far as I know that there is no ‘conversion option’ and the premium rate will not be changed.
Read: Smoking & impact on your Life insurance policy.
Hi Sir
Nice information you shared.. Thanks ..
I just Purchased KOTAK term plan for 30 years.. They have dispatched policy without any medical examination.. i am very confused that should i accept it or cancel it.. I discussed with MAX also but they are are not committing also regarding medical examination..
Please advise,
Best Regards
Vaibhav
Dear vaibhav ..May I know the plan name & sum assured taken.
Plan name is Kotak Preferred eTerm Plan- Sum assured is 75 lakhs. Tenure is 30 years. But i am looking to change it upto 40 years.
But kotak is not ready for medical examination. MAX life insurance can not commit also if we buy term plan from MAX that they will issue their policy after medical only.
What do you advise.
Dear vaibhav,
This is strange and surprising.
I know one of my friends who have taken e-term plan after medicals.
I suggest you to take up a term plan for which medical tests are compulsory.
Yes . I am looking also for such type of plan.. Kotak has already issued a policy to me , but i can cancel as it is in free look period.
But main problem is that another company i.e. MAX LIFE INSURANCE is also not committing for medical examination.
SO what should we do? Which company should I prefer?
Please revert
Dear vaibhav,
Kindly call the customer care of other life insurance companies like HDFC / ICICI / LIC etc., and once if they confirm that medical tests are mandatory and if you are also comfortable with premium rate then kindly go ahead and buy a term plan from that LI company.
Thanks for the very useful article. Is there any additional fee (or disadvantage) if one were to purchase through folks like PolicyBazaar or Myinsurance Club?
They just direct us to fill in the form online directly in the concerned insurance company’s website. However, I just wanted to be sure that there will not be any problems later on or even additional financial impact by going through them.
Could you kindly share your thoughts on this.
Thanks.
Pravin
Dear Pravin,
Kindly do one thing..Compare the premium rate offered by them with the premium rate offered by the company (you can calculate the premium on life insurance company’s website). If there is a difference then that’s because the LI company has to bear the commission expenses.
They may assist you while submitting the proposal form, medical tests and also during the time of claim settlement. Kindly get the confirmation (written or in email) that they will assist your nominee during claim settlement.
Personally, I believe that it is better to buy either directly from LI company (online) or through a trusted agent (offline). Do let your nominee know the details of the policy and claim settlement procedure.
Very Nice Article, which provides lot of information on a single page. Will let you know, once I decide on the policy.
Sir I have taken lic jeevan saral policy in 2012paying 14000 premium p.a. in 2015 I have taken a loan of 35000 from that policy, will it affect my maturity amount and also what will be my maturity amount at the end of 25 years.
Dear PRAVEEN,
Kindly refer to our FB conversation.
Read:
Traditional life insurance plan – a terrible investment option?
How to get rid off unwanted life insurance policy?
Best Term insurance plans.
Dear shrikanth sir
I need a term plan with rs 24000 premium p.a. please suggest the best plan.I do smoking.
Dear Praveen,
You may buy a term plan from a company of your choice. Kindly go through above article.
Read: Life insurance Policy & Smoking habit..
Sir if i take a term plan with sum assured 50 laks and a personal accidental insurance policy with sum assured 10 laks
now i have a confusion
1) if death happened naturally ( due to illness ) benefit will be 50 laks + 10 laks = 60 laks
2) if death happened accidently ( road accident ) benifit will be 50 laks + 10 laks = 60 laks
Am i correct ?
Please reply
Dear Baliram,
1) No, its only Rs 50 Lakhs.
2) Yes.
Thanks for reply
I think for either option illness is not covered.
I want to know is there any hidden term and condition in the aegon religare i-rentun policy that i should take care at the time of purchase ? Can I trust on Aegon religare for the online cliam settlement process becuase after death nominee will face alot of problem for as the policy was made on online & there is no contact person to contact for settlement?
Please suggest , i am not able to understand what to do?
Dear bikram,
If have a TRUSTED agent who can assist your nominee in case of a claim, go ahead with offline mode.
But trust me, if you provide all your details in proposal form accurately and honestly, no worries.
Once you buy a term plan, you can educate about the claim procedure (if possible) to your nominee.
Read: IRDA Life insurance companies claim settlement ratio data.
Dear Mr Reddy,
Please suggest wheather i- term or i-return policy is better? Aegon religare is providing the i-retun policy for next 20 years. i have already a term plan of 50lakhs. i want to take another policy of 50lakhs. Shall i go go for that i-return policy or go with i-term.
Dear bikram,
Any term plan is ok if it meets your requirements and affordable to you.
My suggestion is to buy a BASIC COVER plan.
In case if you do not have a personal accident insurance plan, you can consider buying one.
Read; Best Personal Accident insurance plans.
Dear Shreekanth,
I need your help for choosing term plan.
1) Does highest settlement ratio is necessary to decide insurance company & term plan
2) Accidental Death (Not disability) due to any of following condition will settle claim
a) Any type of natural calamity (such as Tsunami, river flood, earthquake. etc)
b) During adventure sports activity(such as trekking, river rafting, bunji jumping. etc)
c) Due to Accidental Death in any mode of Transport without Accidental Death benefit rider (Train, Bus, Air plane crash, Car. etc)
d) Accidental Death / Natural Death in Overseas (if u r on Holiday trip or shifted abroad for job after issuing term plan)
Looking forward and highly appreciate your help in this regard.
Regards,
Sumit
Dear SUMIT,
1 – It is an indicator not a necessity as there is no separate data for Term plans’ claim settlement alone.
2 – a) depends on policy wordings.
b) Most plans may not cover, some may cover with Extra Premium loading . Have to check with the company.
c) Yes.
d) Yes covered.
Dear Shreekanth,
So, can u suggest any Term Insurance plan which will cover every thing or atleast most of it.
or which you prefer more beneficial to consumer
Dear SUMIT,
I believe that LIC settles death claims in the event of terrorist attacks, large scale calamities etc.,
But kindly get the confirmation from the company before buying a term plan. Also, read the policy document/wordings carefully.
Hi,
I am 27 years old and looking for term policy with regular income of 40k. I have shortlisted 3 term policy but confused between them.
1. Max Life Insurance’s Online Term Plan
2 .HDFC Life’s Click 2 Protect Online Term Insurance Plan
3. ICICI Prudential iProtect Online Term Insurance Plan
I am not sure why Max Life premium is so less compared with other 2.
Please suggest which one to buy.
Dear Sid,
It’s all to do with PRICING (based on underwriting guidelines) and their business strategy.
Suggest you to read below article:
How do INSURANCE COMPANIES make money? What is their business model?
Thank you Sreekanth for your suggestion. But still am not sure which one to buy among the 3 policies.
If you were given an option to choose life insurance policy which one you would buy and why?
Hello sir
I have quarry regarding maximum amount of term plan.
At present my income is 7,00,000/- p.a. At Vadodara city. My age of 30 year. My present term plan is of Rs 1,00,00,000/- from max life insurance online plan.
I have quarry regarding, am I eligible for 1,00,00,000/- considering my income?
And my another question is I am planning to buy home with taking home loan of 35,00,000/-. Is it is advisable to take another term plan for 20 year to cover loan risk?
Dear Bhavesh,
You have already taken a term plan right? As you were eligible (based on your income & profile) insurance company would have issued the policy.
Yes, it is better to enhance the sum assured by taking one more term plan. Kindly say NO to home loan insurance plan. You may assign the new term plan to home loan, inform your lender accordingly.
Please advise me which term Plan is most stable to protect my home loan ?
Dear Bhavesh ..A term plan (basic life cover) from any company should be fine.
Dear sreekanth i need your help regarding choosing the best term plan.pl suggest whether to buy metlife mera term plan or aegon religare .what i find from online search aegon has one rider that is waiver of premium on permanent disabillity which is not present in metlife. i have a personal accident coverage from apollo munich of 50 lakhs.but if i get disabled in future before my retirement age and could not pay premiums of term plan then my policy will be closed.so is it better to buy term plan with waiver option .please suggest.
Dear DEBAJYOTI,
My suggestion is, you may buy term plan from a company of your choice. Advisable to buy a basic cover and then a stand-alone personal accident cover. Kindly make sure you provide all the required details in proposal form honestly.
Read: Best Personal accident insurance plans.
i am looking to buy a term plan from Future Generali life insurance company since it is very cheaply availabel for me. but it is having a very low claim settlement ratio. i have read in a website called mintwise.com that claim settlement ratio is not fully correct and reliable. is it true? then can i buy from future generali? is it a good company?
Dear Mahesh,
It is realtively a new company. But this reason should not deter you from buying a term plan from them. If you are comfortable buying from them, kindly go ahead. All insurance companies are well regulated in India.
Make sure you provide all the required details in the proposal form honestly and accurately, that’s it 🙂
Hi Sree,
Please advise on which is the best online term insurance plan .Is it a completely online procedure or do I have to visit branch?
I am 28 and married and have a daughter (18 months).
Please advise about sum assured , i should go for?
Thanks in Advance!
Dear Preeti,
Once can buy a Term plan through online mode or through a Life insurance agent (offline mode).
In online mode, you have two more options – i) you can buy directly from the respective life insurance company website or ii) through online web aggregators like policybazaar or quickbima or comparepolicy etc.,
You may have to go through Medical tests and visiting a branch is not required unless you prefer to buy a term plan by visiting any branch.
Very Nice Article Sreekanth. This will help lot of people for choosing better term plan for them and their family. Just add one thing, should one buy term plan before marriage or after marriage (ofcourse one should buy it asap) but which option is good (in financial term). Thanks
What about online death claim document collect cant help agent or office staff why?
so online term insurance go to direct call customer care and details
future in case any thing happen death my wife talk only Tamil speak go to branch office document collect
can’t help office employer and agent?
so better offline term insurance agent helps.
i have 1 online term insurance ICICI pru life 40 lakhs SA and 1 offline term insurance Birla sun life 56 lakhs SA
hi sreekanth
i am ramagopala reddy, 44 year, i want to buy a best online term policy for rs.50,00,000/- sum assured for more than 30 years policy term, so please suggest me to choose right policy
Dear ramagopala..You may choose any plan from the above list.
Hello Sreekanth,
Myself thanuja 24 years old female. I am planning to take ICICI term insurance – iprotect smart for 50 lakhs for 40 years term. I need your valuable suggestion whether i can take term insurance at this age or not as the insurance will get completed at the age of 64 years. Please suggest me sree.
Dear Thanuja,
May I know few details..Do you have any family member(s) who are financially dependent on you? Do you have any financial liabilities/obligations?
Hi sreekanth,
Thanks for your reply. I am just 24 years and nobody is dependent on me as of now. The main reason that I am planning to take icici term insurance is for my kids who must be financially strong if in case when I am no more due to some critical situation. Can u pls suggest me sree. Thanks in advance.
Dear Thanuja..You are saying that no one is dependent and at the same time you are mentioning about KIDS? (a bit confused).
If you have dependents, kindly go ahead and buy a term plan.
If you do not have (as of now), you can buy a stand-alone Personal Accident insurance cover & a health insurance plan.
Kindly read:
Best Personal Accident insurance plans.
Best portals to compare health plans.
Evaluate these important factors when buying a health insurance plan.
Hello Sree, what i meant is as of now i am independent. Next year i am getting married. I am planning to take this insurance for my kids in the future. Is my thinking and decision to take this policy by now itself is a right decision? Please advise me. Thanks in advance sree.
Dear thanu,
As suggested in my previous comment, you may consider buying Personal Accident insurance plan and health insurance plan with adequate cover as of now and then can plan for a Term plan in future.
Hi Srikanth,
I have applied for ICIC iProtect term plan with 50lakhs coverage along with disability rider and critical illness coverage. Post medical tests, they have revised premium amount to 31,000. When checked on the revised premium amount, they quoted reason as over weight. I used to smoke till six months , which I have mentioned in the application form. Can you please let me know if this ok to go ahead, with this amount? or any other suggestion you can give?
Dear Ramesh..As per the company’s underwriting policies they would have revised the premium, the same may be or may not be with other insurance companies (w.r.t quantum of extra premium %). Personally, I believe that if you can afford to pay the said premium, kindly go ahead and get the policy bond issued.
Thanks Srikant. Much appreciated for your help.
All of the above customer , I personally suggest you, come on the online portal policybazaar.com and choose the best plan for you according your needs and banefit.
Dear Akki..May I know what are the value added features available on policybazaar.com ??
Hi SreeKanth,
My wife has eterm plan from Max life for 1.2 crore. I want to do the eterm from a company from whom settlement is easiest but at the same time don’t want to pay too much (LIC listening?). I am confused between which eterm plan is best for me, in term of settlement. Could you please tell on basis of your experience that which one will be better is my situation. Preferably, I am interested in eterm plan from company other than Max life because we don’t both husband and wife but your suggestion is very helpful for me to decide. I have two questions
1) I am confused between LIC, ICICI and max life. Could you please rank them for me please?
2) If I want term plan of 1 crore, Can I take 50 lakhs LIC for 27 years (retirement) and another 50 lakhs from ICICI (35-40 years) to reduce the overall cost?
Many Thanks for your suggestions in advance.
Prem
Dear Prem,
1 – As long as you provide the required details in the proposal form accurately and honestly, it really does not matter from which company you take a term plan. Suggest you to go ahead with the company you are convenient with (as per your requirements and affordability).
2 – Suggest you to take a policy from any one company.
Dear,
Prem
you should be go on policy bazaar.com and compare best plan for you..
Hi,
Nice information!
I am planning to purchase one plan.
What I observer that HDFC life has no WAIVER OF PREMIUM ON DISABILITY feature which is present in icici iprotect. Can u please help me to compare these two plans?
Dear Ajit,
Kindly read my reviews on both plans;
HDFC Click2Protect plus review
ICICI iprotect smart review.
Hi Srikant
I am planning to purchase HDFC life protect term insurance planfor 50 lakh but I have concern on one point in this policy which is very confusing for death benefit.
highest off-
. 10 times annualized premium
. 105 % of all the premium paid as on date death.
.sum assured
in My view in any cases sum assured is highest then why the are mentioning these option . I have hdfc person but they are telling that this is due IRDA norm
Please suggest
S.pathak
Dear spathak,
It is a standard guideline to comply with IRDA rules.
Dear Srikant
Thanks for your suggestion & review on quires. I am not satisfied with HDFC person regarding those three condition as mention in HDFC life insurance policy which is very confusing & you are also telling that this is as per IRDA rule but I have checked in LIC term plan there is no condition is mention is there . they are clearly mentioning that – on case of death benefit sum assured will given….
After month long lot of research & review finally I have take LIC E term plan for me 50 LAKH. I starting my leaning in insurance & investment on from you site only . you are doing very good job
& giving neutral valuable advice.
As per my suggestion of reader of you site in case insurance policy .it better go with LIC term only,
Regards
S.pathak
Regards
S.pathak
. highest off-
. 10 times annualized premium
. 105 % of all the premium paid as on date death.
.sum assured
HI SreeKanth,
Appreciated your effort in giving unbiased opinion and suggestion that can help readers like me in choosing about what is best available in the market. I am confused like a hell in choosing right term plan as its important decision for whole life. My wife have LIC eterm plan for 60 lakh. I want to take term plan for 80 lakhs but I am confused with which company.
1) I am confused between LIC, Maxlife and Religare. Please please choose one of them for me. I am 34 years old and I want 35 years plan.
2) I want 80 lkahs plan so does it make sense to go for 50 lakhs with LIC and 30 lakhs with max or religare? ( to reduce the overall cost).
Please let me know which one I should choose among LIC, Maxlife and Religare??
**P.S. If you think that your opinion in this blog will influence your reader then kindly let me know. I will write down email.
Many Thanks,
Parimal
Dear Parimal,
1 – My standard reply is – you can buy a term plan from a company of your choice based on your affordability and requirements.
2 – Suggest you to buy from one company (splitting/buying from diff companies might be beneficial if tenures are different and if you are buying at different life stages).
If you insist me to choose among the three then you may consider LIC out of the three options.
Dear shravan
I would like to know which are the policies that offer permanent disability riders. i e sum assured or a fraction of sum assured to be paid on installment some some years when a permanent disability occurs
Dear Subhasis..It is advisable to go for stand-alone Personal Accident plan.
Kindly read : Best Personal Accident Insurance plans.
Dear Sreekanth,
What is best to do and why ? Buying life term insurance plan from a Nationalized bank Vs Private banks.
Kindly Advise,
Thanks,
JK
Dear JK..It is advisable not to buy life insurance from banks..better to buy a life insurance plan as per your requirements directly from a Life insurance company.
sir,
nri is eligible for buying term plan in INDIA?
?
/
Dear RAJKIRAN..Yes (but terms & conditions can vary from one life insurance company to another)
Dear srikanth, please make some guidance regarding SBI Life – eIncome Shield plan
Dear Gajanan,
I believe that it is better to stick to basic life cove plans than to take ‘income replacement’ specific term plans.
SIR, I HAVE HEARD DURING BHOOJ EARTHQUAKE IN GUJARAT, SOME PRIVATE COMPANIES GAVE BONUS POLICIES TO THEIR EMPLOYEES WHO WILL SETTLE THE LOWEST CLAIMS FOR GIVE LOWEST AMOUNT FROM COMPANY KITTY AS CLAIM SETTLEMENT.
IF THIS IS CORRECT WHY NOT WE GO WITH LIC ONLY…..
Dear VIJAY,
I do not know if that is correct or not, but the point here is, if one is looking out to buy a life cover, term plan is the best choice.
It can be from LIC or XYZ company.
Dear Sreekant.
I am 28/M. My CTC is 9.2 lpa but actual lpa which I get after deducting tax+pf+variable I got 7.8. I need to ask what should I fill in Annual income section of proposal form ?
Also I am looking for 1 cr term plan for 35 years ( it will cover me till 63 y of age) , could you suggest is it good to go beyond 60 y of age
I am confused between Max life and Aegon. I insist you to kindly pick one for me depending on your experience of such a nice advisor.
Also is it good to take additional cover of i-disability of Aegon ( if you choose Aegon)
Kindly suggest sir, I am really confused and worried.
Best Regard
Ashish
Kindly reply sir
There is correction sir my ctc is 9.2 lpa but after deducting variable+insurance+food coupons I got 7.8 lpa ( including tax and p.f)
What figure I shall fill in annual income section?
Dear Ashish,
Generally, gross income can be mentioned. Suggest you to kindly consult the Life insurance company customer care regarding ‘proposal form’ related questions.
The tenure can be based on your expected retirement age and till the time you expect you have financial liabilities/obligations.
Max / Aegon both are good ones, kindly go ahead with the company of your choice, which are you comfortable with.
Regarding ‘disability cover’, suggest you to buy a separate stand-alone Personal accident plan.
Read: Best Personal Accident Insurance plans.
Thank you very much sir for valuable reply
But kindly pick one from max and ageon
Please I request
Regards
Ashish
I want to avail the term plan for myself & my family. what is the best plan for which i should opt for???
Dear NITIN..Kindly go through the list provided in the article.
Hi, Whats your say on Birla Sun Lifes Protect @Ease term plan .. as the ration is 95.3%…?
Thanks in Advance…
Dear Rahul..As long as it is a Term plan, you can go ahead and buy it from any company of your choice.
Hi Sreekanth,
I am 29 years old and I am paying Rs. 1500 towards my life insurance(LIC – Jeevan Anand). Kindly advice can I continue with this plan I need to come out of this?
If you say go with Term insurance plan which term insurance is the best one? Why can’t I go with what is the Term Insurance Plans With Maturity Benefit plans instead of Term insurance plan?
Thanks in advance.
Dear Deenadayalan,
Kindly be clear what is your requirement. If life cover is your requirement, can you afford to pay the huge premium for say Rs 1 cr policy on a traditional plan with maturity benefit? Even if it is affordable, will you be satisfied with 4 to 6% returns generated by such plans?
You can buy any term insurance plan from a company of your choice.
Kindly read:
Term insurance + PPF Vs Traditional life insurance plans.
IF life is unpredictable, insurance can’t be optional.
My view is that one should buy Term Insurance at young age say 25-28 and tenure should be p to 75 year age. I dont agree with the idea of coverage only till retirement i.e. 60 year age. After 50 it is very costly to get any insurance cover. So better to have long age coverage right from start. In case one faces financial problems in paying premium after retirement age, he can any day stop continuing Term Policy. If some one dies between 60 to 75 his widow will benefit from payment which is of great help.
Hence, my request please advise every one to buy Term Insurance coverage up to 70-75 (maximum available) year age.
I would like to know your comments on this please.
Dear Basant,
Thank you for sharing your views.
One can also consider splitting of term insurance policies ie buying additional cover depending on the life stage.
Let’s not generalize the advise, as it is PERSONAL finance and the requirements vary from one family to another one.
Dear Sreekanth,
Since natural or accidental death is a well-defined thing, on what basis can insurance companies evade paying insurance money? Why should claim settlement ratio not be 100% for all companies?
Thanks
Dear Bhagwan,
The risk event(s) might be well defined by a life insurance company.
But what if the policyholder provided false information or concealed important details in the proposal form, which the LI company might find out during the investigation stage for claim settlement.
Below is the latest update;
“As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.”
Hi Sreekanth,
It’s a very good article again.
1. I have one query regarding LIC’s e-Term. If I buy policy in this month and after few months if I move to abroad, still if this policy is valid.
2. I know all insurers regulated by IRDA, but still should I trust private players? I don’t want my family to fight to get money in my absence. I have read somewhere that even the marketing head of Aegon Life advised his relative to go for LIC’s e-term. This made me really confusing. I myself worked as an insurance agent with TATA AIA and LIC and found both are pure profit making businesses, no one guides customer correctly. And that why I have left 😉 and not enrolled anyone.
Thanks,
Sandeep
Dear Sandeep,
1 – Yes, it will remain valid.
2 – I can confidently say that you can go ahead and buy a Term plan from an insurance company of your choice.
Dear ShreeKanth,
I need your help for choosing term plan. Till now, I have choose LIC eterm 825 plan for 50L for me and my wife each, mainly because of LIC reputation from years and highest settlement ration (98% from last 3-4 years).
1) Could you please confirm if lIC eterm 825 will cover
a) Natural Death
b) Accidental Death (Not disability)
c) Suicidal (if premium of paid for more than 1 year then they will return 80% of premium paid minus taxes
I tried asking many people about this but did not get a satisfactory answer. so please take little time from your schedule to answer this question
2) I am not choosing term plan till my retirement (60 years) but I am choosing term plan for 35 years (present age 33) so till 68 years as there are higher chance that I will get some lumpsum money as there is more probability of having natural casuality by that time. do you suggest that I am thinking in right way or I am completely wrong?
3) Sorry for awkward question but which insurance do you have? I am asking this because I trust your decision more than other people who advice me for different plan 🙂
Looking forward and highly appreciate your help in this regard.
Many Thanks,
Prem
Dear Prem,
1- Ideally it should cover, but always its better if you contact them directly and get the confirmation.
2 – Tenure can be till the retirement age and/or till the time you think you will have financial obligations/liabilities. So, beyond this period its purely your choice and also note that you may discontinue paying the premiums anytime say after your retirement, incase if you think it is redundant based on your financial profile at that time.
3 – I am ready to disclose anything about my personal financial matters except for which Term insurance plan I have. It is a very very important decision and personally I do not want to influence my blog readers’ decision making regarding this. Apologies 🙂
Thanks SreeKanth for 1 and 2. For 3rd, I know it was first of all wired question from my side itself but I could not stop asking this question as you already pointed out that its very important life time decision. Anyway, being a frequent visitor of your blog and some of your point in this blog, I kind of already know what you must have chosen 😀 :L
Keep up the good work
Dear Prem..Awesome, in-case if you have guessed it correctly 🙂
Thank you for following my blogs. Cheers!
Very useful article. I am a sole earning member in my family with wife (homemaker, age 26), son (2.5 years) and myself (earning 25L PA from IT, age 31, non smoker, diabetes diagnosed). I already have a group term insurance provided by employer. Do I still need extra from my own pocket? If so, what is your recommendation?
Dear Shravan,
In-case if you come out of the organization, can you still continue with the group plan and convert the same into individual plan?
Suggest you to buy an independent term plan with basic life cover + a stand-alone Personal Accident Insurance plan.
Do you have health cover for self/family?
Kindly read:
Best Personal Accident Insurance plans.
Best Family Floater Health insurance plans.
hi sir,
what about Reliance Online Term plan…? premium is very cheap compare to others…thnks
Dear Pankaj..If you are comfortable buying from reliance LIC, kindly go ahead.
Hi Sree, Good day !!! i am fan of your all sites… you really doing a amazing job to all!!
After reading ur article even i am decided to take term insurance…. i just had 2 in my mind LIC & ICICI
1. Fine to take LIC and to pay around 10k per annum for 75 Lakh SA
2.Fine to take ICICI only Life for 1 Crore SA and pay for 778 per month
but in ICICI i see options called “critical illness cover ” & few things like Life stage protection etc….
so in this case which should be wise to take.
Also as u said i will be taking ADB separately…
Dear Sudhakar,
Kindly go through the policy wordings or Critical illness rider terms & conditions and then analyze if that is suitable to you or not.
In case if your family has a history of any Critical Illnesses suggest you to buy a Stand-alone CI policy.
Read: Best portals to compare Health insurance plans.
ICICI Pru iProtect Smart Review.
Hi Sreekanth
I see that even if I go through online mode for applying term insurance, it is asking for contact info and redirecting me to an agent. Do we still get the true benefit of going online than through tradition neighborhood agent?
Thanks
Deep
Dear Deep..May I know which portal (website) are you referring to??
Sorry, I misunderstood something. I am all set. I applied term insurance through ICICI website yesterday and waiting for next steps to happen. Thanks for all your guidance. Your website is really helpful! Thanks again!
I am looking for a term Insurance Plan. I still trust LIC more than any other company. What do you suggest ?
Dear Anirudh..You can go ahead with LIC term plan if you are comfortable with it and if the premium amount is affordable to you.
Hi shreekanth jii ur comments are very cool i am 30 years old non smo myker i want to take insurance best my monthly income is 40000 and my wife is hose wife i need to take family health insurance another one life insurance Still i am confused i need ur help jii
Dear Sumank,
You may buy a term plan from any of the above insurance companies.
Also, read;
IRDA’s latest Claim settlement data.
Best Family Floater health insurance plans.
Best portals to compare health insurance plans.
Dear Sreekanth,
My name is Sameer and I am 33 years old male. I have already purchased online term insurance from Aviva for Sum Assured 50Lkhs. I want to buy one more term plan for the same SA amount, I have applied for ICICI Pru and Om Kotak Life but both have declined my application saying reason that “Build Overweight” in both cases my Labs were absolutely normal while MER was normal as well still they declined my proposals.
Will you please suggest any plan provider who will give offer me term plan for SA 50 Lkhs.
Regards,
Sameer A.
Dear Sameer,
They might have valid reason for the rejection. Kindly check your Body Mass Index.
You may try with other insurance providers.
Hi Sreekanth
I am 30 years old and non smoker. I have hypertension since last 7-8 years. Will I be able to get a term policy with this existing condition?
Also I’m currently employed in US. I’ll be in India for next one month. I can give all the requested docs and undergo medicals here if required. The only document I won’t be able to give would be form 16 as I file taxes in US. What do you suggest for me?
Dear Deep,
It depends on a life insurance companies underwriting rules whether to consider your proposal as a high-risk one or not.
If you are coming to India and staying here for few days, suggest you to apply for Term plan here itself and get the medicals done in India.
Kindly disclose all the required information including your medical status details honestly and accurately in the proposal form.
Thanks for the suggestion. Which plan and how much coverage do you suggest for me? I am employed full time in a US based company and save close to 2l per month. I have a wife who is not working and one month old daughter.
Dear Deep,
The minimum life cover can be 10 to 12 times of your annual salary. You may go ahead with any term plan which you are comfortable with.
You may consider taking a personal accident insurance plan too.
Read: Best Personal Accident Insurance plans.
Hello Mr Sreekanth,
I am 44 years old fit ,nom smoker Chief Engineer in the Merchant Navy. Last year I applied for 1 Cr plan from Max Life super term plan with increasing sum insured.I had applied for a disability rider to get a waiver of my premium in case I have an accident during my work.
I passed the medical…paid thebcgequebof 65000 and after a few days I was told that the insurance underwriter has cancelled my disability rider.
Now nobody is able to advise me how do I go about buying insurance for my self.I want to get 2 CR cover .Kindly suggest suitable options which can also cater to my disability clause.
Thanks in advance.
Vikram
Dear Vikram,
Did you get any details about as to why they have denied the rider? Suggest you to accept the basic cover.
Also, you may consider buying a Personal Accident plan.
Read : Best Personal Accident insurance plans.
Dear Sreekanth,
Your article is very informative and I appreciate the fact that you have been responding to all the comments. I hope you will help resolve my query. Is there a ceiling on the amount for which one can get insurance. To clarify further, in case ‘X’ company approves 2 cr. term insurance on the basis of my income whereas I want a 3 cr coverage. Can I get the rest of the insurance from a different company or not and whether any of the two companies can reject the claim on that basis. Thanks
Dear Nisha,
Each life insurance company approves the proposal based on certain policies & guidelines (under-writing rules).
If X company has not accepted the proposed SA then Y company (may be an aggressive one) can issue the policy with the proposed Sum Assured.
You may definitely try with another Life insurance, but kindly disclose about your existing life insurance policies in the proposal.
HI Sreekanth,
I am Rajasekhar, I am interested in term policy for 1 crore.
Can you please suggest on all above policies are for only non-smokers?
I have been smoking for last 10 years. Can you suggest on this plz..!
Hi sir,
I am ram.age is 30 yrs.I would like to take 25 lacs term plan. I am non smoker. I am married and have one kid.
My monthly income is 30k. Can you please suggest me a best plan and company.
Dear Sriram..Kindly go through the above article.
Hi,
since last 2 year i am getting confused which term plan is suitable for me. and best of that i can buy i have searched some plan & company
Non smoker / 33 Year / Service / Male
1. Kotak Online Term plan- Equally Cheapest rate with monthly pay option
2. Aegon Life Team plan – Plan offer Cheapest rate with Critical illness benefit
i am prefer to go for Kotak but still please give your advice or suggest any other option
Dear Sachin,
Two years? That’s a really long time. Term plans are supposed to be the simplest forms of insurance. Kindly don’t postpone buying a term plan.
Kotak is a decent option. Suggest you to buy a basic cover and then a stand-alone personal accident plan.
Read:
Best Personal Accident insurance plans.
Hi
Me and my husband both are working and have a kid of 5years.
Currently both of us do not have any term insurance. I am planning to take term insurance (online) for my husband.
I have been suggested to declare all the policies he enrolled into earlier.
My question is…should I declare all the active and inactive ones? or only active ones.? what if we miss anything to declare?
Thanks
Dear Devina,
Suggest both of you to take adequate life cover through Term plans.
Kindly declare all the active ones. Ideally the life insurance company would like to take a look the existing coverage, income potential, occupation, medical history etc before finalizing on the Sum Assured.
Thanks for your revert.
I have one more query. IF I make payment for my Husband’s policy, who will be eligible for IT benefit under 80 C. Policy holder or Premium payer.?
Dear Devina..Yes, you can claim tax benefit.
‘Any amount that one pays towards a Life Insurance Policy premium for self/spouse/children can also be included in Section 80C deduction.
I am 40years old and want to take an term insurance plan suggest the best insurance company with good track record. Further can you pleases clarify whether a smoker can take term insurance plan or not. If it is so for how much term insurance plan for a 40years person as to take . Further i want to know whether there is any term plan which a self and spouse can take in one term insurance plan.
Dear bhoopal,
Yes, smoker can apply for a term plan.
The quantum of insurance should be based on your age/income/financial commitments.
Is your spouse an earning member of your family?
Read: IRDA latest Claim settlement ratio data 2015.
Dear Sir, I am 48 yrs old and not having any life insurance. I do not have any debt and assets worth 90 lakhs. Earn 20 lakhs per annum. Now that Iclosed all my debt, thinking of investing. Now when I try to take term plan, realise it is costly. Should I take one for 50 -1 crore or invest in mutual fund? If yes till what age?
Thanks
Dear venkiteswaran..Do you have dependents / have any financial commitments towards your dependents?
Dear Sir,
Sorry I was out of station.
I have two kids girl & boy aged 15 &11. Wife is working
Dear venkiteswaran,
Based on the info share by you, you may have to buy a Term plan for atleast Rs 1.5 cr.
Your spouse can also buy a term plan as she is an earning member of your family.
Kindly read:
Kid’s education goal & calculator.
Retirement planning goal & calculator.
Dear venkiteswaran,
I have a perfect plan for you. With a little investment you’d have an outstanding return.
Would like to share more details about it. Just call me on +91-8447488939.
Dear Navjyot,
Do you mean to say that you have a life insurance plan which can give ‘outstanding’ investment returns??
Kindly let me know the name of the plan(s)??
i take a hdfc term plan on 21 feb 2016 . i take option income plus option Rs 1 crore. i pay premium Rs 16473. i gave medical test on 27 feb 2016.but today hdfc life representive call to me and say that underwriter reduce your cover only Rs 6000000 on financial ground . what a joke .when i pay premium for Rs 1 crore. How to cheat customer when i don’t eligible for Rs 1 crore then Form is not submit and don’t take premium but this case company submit my form and take a premium and after 19 days you are not eligible for polcy pur Bakbassssssssssssss.
Dear Ranjeet,
Kindly understand the process here..
When you submit an application, kindly note that its just a PROPOSAL. Based on the details submitted, the life insurance company’s underwriting team goes through your income details/medical history/medical test reports/occupation details etc., before issuing the policy bond.
Based on their analysis, they can offer you the proposed sum assured or they can reject your proposal or offer you lower sum assured or same sum assured but with extra premium.
Dear Sir, last year I purchased a term insurance of 1.5 cr from max life. and completed medical test also and paid 12000 rs. Premium. Before getting policy document I received a call from max life stating that their under writing team approved cover only of 1 Cr. so I taken the refund of premium and cancelled the policy.
Now if the company is dealing in such a rude way at the initial stage of policy. What will they do during claim settlement. Will it safe to go ahead with such companies?
Dear Swapnil,
Did they let you know as to why they have offered less Sum Assured?
It could be due to your income earning potential/health condition/occupation etc..
Thanks for the valuable information.
Consolidated information to take a decision.
– Srikar
Dear Srikar..Thank you & keep visiting. Kindly share the articles with your friends.
Hi Sreekanth, I am 26 years old & married. I am having a one month baby. I have some queries related to financial decisions. First I intend to purchase a flat in Mumbai of RS 40-45 lakhs. Plus I am willing to purchase a insurance cover for me, my wife and my baby. There should be options to include my father & mother depending on various factors. My net take home salary is 27500 RS per month plus my wife gets approx 15000 RS/month. I don’t have any liabilities to be paid to any body till date. Plus we both are non smoker/drinker. We have approx 5 lakhs in assests excluding the normal insurance policies taken by my parents in my name. Further I have group mediclaim cover offered by my company(Manipal group). Policy is processsed by United India Insurance company. Please suggest as I am unable to take any decisions to close both of these home loan as well as life cover. Thanks & Regards, Suraj Rai
Dear Suraj,
Is your wife an earning member of your family?
Are you referring to health insurance cover or life cover?
Kindly share the details of your life insurance policies (Plan name, tenure , commencement date).
Read below articles:
The 6 most common personal finance mistakes.
Financial Planning Pyramid.
If life is unpredictable, insurance can not be optional.
Dear Sreekanth,
Yes she is earning member of the family, however all family related expenses are borne by my father. Her salary and mine is reserved for savings except our small needs. So at present I along with her together can save more than 30 K per month. In regards to policies, policies taken by my father in my name are life insurance while policies offered along with my job are mediclaim. I don’t have the documents as it was all handled by my mother, however one policy I remember in which
maturity will by 2019 and it was taken for 15 years period of time. There were only three installments of 10 K were to be paid in first three year. However I wish to contribute to my family well being on my own, parents are there for back-support if needed. Further mediclaim and other offeres stand at approx 22 lakkhs if served with company for long. Please let me how to go ahead for both needs, flat as well as family insurance cover.
Regards,
Suraj Rai
Dear Suraj,
Suggest you to know and be aware of life insurance policies which are in your name.
Read:
Term insurance Vs Traditional plans.
If life is unpredictable, insurance can’t be optional.
Kindly don’t depend only on Employer’s group mediclaim policies, you may consider buying an independent health cover.
Read:
Best portals to compare health insurance plans.
Best Family floater health insurance plans.
Best Health insurance plans for parents.
Having an adequate Insurance cover (life/health) is a must.
If you have allocated sufficient savings towards your important goals like Retirement, you may buy a property. Are you going for a home loan? Are you going to reside in that city in future?
Dear Sreekanth,
I would like to have a health cover and my preference is joint cover for me, my wife and baby as I don’t wish to get into multiple documentations for separate policies.
I am also confused in life cover/health cover terms. Can you please suggest integrated plans which offer good cover with both life as well as health cover for my my family. And yes I will take home loan for the flat. Please consider the same while suggesting.
Regards,
Suraj Rai
Dear Suraj,
Life insurance & health insurance covers are totally two different things.
Suggest you to buy a Term plan and also a Family floater plans.
Kindly go through the links that I have provided in my previous comment.
If you have allocated sufficient savings towards your important goals like Retirement, you may buy a property.
Hi srikanth,
I need your help, i am planning to take term plan,i have enquired in max life for 1cr policy with accidental rider +disability +monthly income option, premium goes close to 23k, my question how reliable max life is , is it fine to invest in max life term plan alone . One of my friend is suggesting to invest in two different companies like take 50L policy from HDFC (premiund 14k with income option) 50L policy from max life(premium 9k with accidental and disability rider) which one is better , please suggest me
Dear Kumar,
Any term plan is good. You may take from a company which you are comfortable with.
Disclose all the required information in the proposal form honestly and accurately.
Dear Sir,
I am 53 years old male, My Annual income is 2,50,000.
I want to purchase a term plan life insurance.
While reading the product brochure of the private life insurance companies I come across the below mentioned definition. … DEATH BENEFITS IS DEFINED AS 10 TIMES OF THE TOTAL PREMIUM PAID AT THE TIME OF DEATH OR 105 % OF ALL THE PREMIUM PAID AT THE TIME OF DEATH.
I am unable to understand this definition.
This is worring me that despite premium payments, my dependents will not get the claims.
Secondly, wht will be the maximum cover amount for my annual income, which is 2,50,000.
I request you for your kind reply.
Dear Om Prakash,
The death benefit in case of term plan is the basic sum assured that you opt for. In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
The above clause is relevant mainly to traditional plans.
For your insurance amount eligibility you may contact the life insurance company.
Hey Sreekanth,
I’m 26 and a non smoker. I have an SBI term plan for 50L (bought it when I was 23) and would like to get a 1CR plan in the upcoming financial year.
I know it’s weird for someone to get so much coverage before getting married and that too before 30. The idea is to get all my insurance coverage done before it becomes very costly. And I would ideally want this to become my last life insurance policy, unless I magically become a billionaire.
Keeping that in mind – I can see that AEGON covers up to 75 years and I heard from a friend he noticed plan in Max/Met life (not sure) which covers up to 80 years..
However, that’s a lot of time. So, if in the meanwhile, the company shuts shop, what happens to the policy? Does IRDA have any safeguards for that?
Dear Goutham,
Insurance industry is a very well regulated one in India.
The solvency ratio or margin could ensure that the insurance company won’t go bankrupted. The solvency margin refers to the excess amount of assets that an insurance company must maintain over its liabilities. Also, Companies are required to keep the customers’ accumulated premiums very strictly separated from the company’s own assets, liabilities and expenses.
While forming an insurance company comes with numerous restrictions, winding it up is not an option. The Insurance Act states that in case an insurer cannot continue business sustainability, it must merge with another company. The insurer cannot hope to run away leaving its customers in the lurch.
Realistically, what all this means is that insurance companies never go bankrupt; if they do badly, they are typically bought up by a competitor long before things get that bad.
Hi , I am looking to buy term insurance plan with cover worth 1Cr. i am planning to buy HDFC 2 Protect Plus Plan 9100 premium per year.
objective of my buying is i just want my nominee to get 1cr after i die due to any reason i have found many crap in policy document saying accidental death cover,Claim settlement amount highest of 3,
-10 times the annualized premium
– 105% of all the premiums paid as on date of death
– Sum Assured
Also there are some monthly payout plans.
Just want to know weather i am about to buy right insurance or not.i got confused with so many clauses and jargon.
what i want is my family should get 1Cr if i die irrespective of any form of death except suicide.
please advise me.
Dear Manish,
It is a good plan (as is the case with most of the term plans). You may just buy this plan with Basic cover and disclose all the required information accurately in the proposal form.
Kindly read:
HDFC Click2Protect Plus – Details & Review.
IRDA’s Claim settlement Ratio details.
hi Sreekanth,
I am (40yrs) looking for a term insurance along with few critical illness coverage (just in case) with low premium. Please, advice me which one will be the better one.
Dear saravana,
You may check out Aegone Religare iTerm plan or ICICI Pru iProtect Smart plan.
In case if your family has a history of getting diagnosed with any CI, suggest you to get a stand-alone CI cover.
Kindly read : Best portals to compare Health Insurance Plans.
Hi,
i am 35 year old and having 1 year old son. My earning is 30000/-p.m . i want to invest in SIP/Mutual fund and want my fund to invest in different SIP . My aim is to get 20 lac after 15 years for my child education and 25 lac after 20 years for higher education
kindly suggest me SIP plans
regards
Dear Nitin,
Suggest you to go through below articles & revert to me;
Kid’s education goal calculator.
Best Equity Funds to invest in 2016.
Financial Planning Pyramid.
Dear Srikanth, I am 30 year old and work in merchant navy as a marine engineer with an annual income of 18 lacs. I get tax exemption when I attain NRI status by sailing on ships for 6 months a year, and if I don’t fulfill the said criteria of 6 months in an particular financial year then I can’t be treated as an NRI and have to pay tax as well. I request you to suggest me a term plan which shall consider my profile and cover the claim even if I die on ships in international waters during the call of duty. Also suggest if in any particular financial year if i don’t attain the NRI status but the policy has been issued to me as an NRI, and if i die in that particular period will it make any difference at the time of claim settlement. I inquired with few agents and also the policy bazaar executive, but unfortunately none of them have a clear idea about my case, they just want to drag me into it anyway. Please note that I stay in India only when I am not sailing on a merchant ship.
Dear Praful,
As far as I am aware of, term plan once issued to you, risk cover is applicable whether your Residential Status is RI or NRI.
Your residential status will not impact claim settlement (if any).
While filling the Proposal form, you may inform clearly about your occupation to the insurance company. If they consider your occupation as ‘high risk profile’ one, they may load extra premium and then issue you the policy bond.
Dear praful,
I have a perfect plan for you that would suit your needs and solve these issues. Just call me on +91-8447488939.
Hi i am Anand kothari ageing 29 years. i want to buy life insurance. can you please suggest best policy/ term insurance? I am confused whether to go for survival benefit policy or pure death policy
Dear Anand,
Kindly buy a pure term plan if you have any family member(s) who are financially dependent on you and if you have any financial commitments.
Dear sir I am planning for on line term plan from max life with monthly payment option the agent says that my nominee gets the sum assured & month ly income also of .40% of sum insured in next 10 years it is true. ? ( please tell me) You don’t think that’s this type plan is a very good plan for a family in one single member is a urning member.
Dear MOHAN..Are you buying the plan online or through an agent?
If you believe that your nominee can not manage the claim amount, you can consider buying a term plan with income payment option.
Dear sir I am taking online plan but on company toll free no they tell me that in montly income plan policy we get sum assured at the insured person death & after that nominee also receive a monthly income for 10 years. So please suggest me that some extra premium we get extra monthly income + sum assured. It is not a good idea
Dear MOHAN..I have already replied to your query..
“If you believe that your nominee can not manage the claim amount, you can consider buying a term plan with income payment option.”
I am 47 year old female and planning to take 60 L as loan amount in 15 years installment basis for buying property flat which shall be given to me by 2018. I am earning around 15 L per annum. Though ICICI is insisting me to buy loan insurance from Lombard I have not considered the same as the premium amount per year is high Please suggest which is the best policy for me to buy.
Is it home loan insurance or personal insurance
Dear lakshmi,
Do you have any existing Life insurance policies?
If not, you can buy a Term plan with a cover of say Rs 1 to Rs 1.5 cr (as per your fin profile) and can assign this policy to your banker while taking a home loan.
This is acceptable.
Kindly read: ‘Life insurance policy & assignment..’
Hi, Is ICICI Iprotect still available or I can buy only ICICI IProtect Smart now?
I had taken ICICI IProtect Option 2 – 5 years back and is due for renewal now. The premium payable is Rs.16800. But ICICI IProtect Smart policy for 50L costs only 18700.
Should I continue with my existing policy or discontinue that and go for a new ICICI IProtect Smart policy?
Regards
Dear Baskaran,
Suggest you to keep the existing policy and you may enhance the life cover by opting the new plan.
Hi Srikanth, If I retain the 25L policy and take another fresh one for 25L, I will be paying Rs.34000 for the 2 policies. But if I take 1 single policy of 50L, I need to pay only Rs.22000.
Why do you suggest me to retain the existing one?
Regards
Dear Baskaran,
In that case, suggest you to apply for the new one with higher SA, but discontinue the first one only after receiving the policy bond.
Kindly note that you need to mention about the existing policy while submitting the new proposal form.
hi srikant, i am a regular reader of your valuable suggestions through your blog.
As u have suggested, I have purchased sbi life e-shield plan with cover of rs. 25 lacs. (current age is 32)
But now I want another term plan to purchase with another coverage of 30 lacs and some other benefits like permanent disablitiy OR joint life cover.
so which plan will you suggest to buy..?
Dear gajanan..You may select any one of the above plans.
Also, kindly read : Best Personal Accident insurance plans.
Suggest you not to buy joint-life cover plan.
Hi Sreekanth,
I am 29 years old(married) and i am suffering from diabetes from past 2 years and i want to take term insurance plan with HDFC clik2protect plus plan.
Which one is good for me either without medicals plan or with medal tests plan?
or else is there any other term insurance plans especially for diabetes?
Dear raghavendra..HDFC term plan is a good one. Kindly take a plan which has medical tests.
Dear Srikant,
My daughters DOB is May,1991, she is MBA and employed in private MNC with Annual Income 5 lakhs. This may increase since it is her 1st year only.she is unmarried and going to be married with in 1 year.
She has no liabilities right now. She need some tax savings also
which policy should I buy her. Term/endowment/money back and from which company.
Thanks in advance
Dear Anand,
As of now she does not have any financial liabilities / dependents, so she may buy a Term plan after her marriage.
She can invest a portion of disposable income in ELSS tax saving funds for long-term accumulation.
Read : Best ELSS tax saving funds.
Also, she can buy a health insurance plan (even if her employer provides). Read : Medical insurance & Tax benefits.
Have you earmarked any investments to meet her marriage expenses.
Thank You Srikant for prompt reply.
I will follow what you said and come back to you after reading about ELSS tax saving funds.
Yes we are very well prepared for her marriage.
Anand
Shreekanth, my date of birth is 08-03-1963, I want a reliable brand of insurance for whole life if possible as term insurance plan. I want sum assured for 2 crores with accident cover. Which company offers th best term plan which shall suit my requirements?
Dear Monoj..You may pick any one from the above list. Term insurance for WHOLE LIFE may not be required.
Hi Sreekant,
I am a 39 yr old male ( DOB : 18/02/1976 ), non smoker. I have a 10 yr old son and 5 mnth old daughter. I was having a term plan from ICICI prudential for 25 lakhs with Accidental death benefit totalling 50 lakhs for myself and my wife. Total premium paid for both was 15,700.
My wife ( 34 Yrs, DOB : 29/12/1981 ) is also working. Both of us are having annual income of 5.5 lakhs. After my daughter’s birth I feel that 25/50 lakhs sum is not sufficient, so I didn’t renew the policy.
I am planning to take a new term plan for both of us of 1 Cr. I was going to finalize Reliance because of low premium, but ICICI prudential came up with some new term plan that covers critical illness, but I don’t have a clear idea about this policy & which illness they are covering, and whether they will pay the sum insured amt on detection of these critical illness.
Please guide me with the tentative premium amounts for both of us from ICICI prudential .
Please suggest some other options of your choice.
Waiting for your reply.
Thanks.
Prashant Birari.
Dear Prashant,
You should you have continued the term plan.
Kindly read:
ICICI Pru new term plan – IProtect Smart Term plan – Details & Review.
HDFC Click 2 Protect Plus review.
Best personal accident insurance plans.
Dear Sreekanth,
First I would like to thank you for assisting many people in making such a wonderful decision in their life. I am taking a Term insurance in HDFC Click 2 Protect and signing MWP ACT. I want to clarify few points.
1. If I go to abroad for my career and if my dead happens in abroad, will my term insurance be valid? in other words is term insurance country specific like it is covered in Indian, US, Aus and not covered in some countries?
2. At the time of signing the term insurance I am a Resident of India, but lets say after 15 years if I get a PR for US or Aus , I settle there , I will become a Non-Resident of India,I am paying premium regularly that time should I intimate the company and will there be any extra payment to be made to make the TERM insurance to be still valid if I become a Non-resident.
3. Through my friend I heard certain types of dead are not covered in Term insurance and it varies as per the company. How and where will I know these information?
4. For Some high risk job is there any extra premium to be paid to come under cover, where to find the information of it?
Thank you
Balaji Srinivasan
Dear Balaji,
1 – Cover is available & valid.
2 – No extra payment is required. You have to update you life insurance company about your current residence & residential status.
3 – For ex, Death due to earth quake or terror acts may or may not be covered. You can get info by contacting the shortlisted life insurance company’s customer care or representative.
4 – Yes, you can contact respective life insurance company (or) sometimes they will inform you after submitting the proposal form .
Hi Sreekanth,
The Claim Settlement Ratios that you have used seem to be of the wrong year. Your own webpage on 2014-15 shows different ratios. It may force you to change the rankings actually!
Dear Vasudevan,
Yes, instead of 2013-14 i had mentioned it as 2014-15, I have now corrected it. Thank you for pointing this out.
But kindly note that the above plans are some of the best plans that are available in the market and they no ranks have been given (especially not ranked on claim settlement ratio).
Dear sir, firstly I am very thankful to you for very good information on term plan. Sir I am 37 year old I was a occasionally smoker before two years now I am coming which category smoker or nonsmoker. I am very healthy my family history is also very good.
Sir I choose a plan max increasing monthly income, sir you don’t think that a monthly income plan is a good option. I also have 5 lk family floater medical insurance by united & also have 10 lk personal accident policy by united, should I also take rider of personal accident with this term policy or not
Kindly suggest in some detail.
Very very thanks in advance
Dear Harmohan,
You may consider ‘Monthly income option’ if you believe that your nominee can not manage ‘lump sum claim amount’ (if any).
Else basic cover plan can be considered and invest the saved premium (differential premium) in equity mutual funds for long-term.
Read : Super Top up health insurance plans & benefits.
You may buy another stand-alone personal accident cover (if you are under-insured).
Read:
Best Personal Accident Insurance plans.
Sir please also tell in which category I will come smoker or non smokers
Dear Harmohan,
Even if you are not presently a smoker and have not smoked for many years, it’s better to mention that in the past you have been a smoker.
Hi Shreekanth,
Your blogs are cool!
I have bought HDFC Life Click 2 Protect having 50 Lacs cover till the age of 60 @ age 30.
I have below overall queries :
1. As you said one need to consider inflation and 50 lacs would be small amount at 60, should I start a new policy once I reach 45 ? or should I start a second policy at 45 and drop the existing one?
2. Can you please provide Incurred claim settlement ratio of each of the above companies ?
3. And why are LIC premiums higher than others ?
Thanks,
Dear Neeraj,
1 – Why do you want to drop the existing one. In future, if you realize that you are under-insured you can enhance your sum-assured by taking a new plan and also continue with the existing one.
2 – Kindly read my latest article : IRDA Latest Death Claim Settlement ration data 2014-2015.
3 – The premium rates are based on their underwriting rules.
I have applied two term plans of LIC term and ICICI i-protect smart 50 lakhs each. Whether the two policies will cover death due to terrorist attack and earthquake ?
Dear Debasis..Generally most of the term plans do not cover risks arising out of terrorist attack & earthquake.
Suggest you to check with their customer care and do update us the status/info.
I am 33Yr old male. I would like to take Term Policy for 1Cr – 15Yrs. Which one is better LIC / SBILife/ ICICI/Reliance /Bajaj ?
I prefer SBI. Please share your comments?
Dear srinivasareddy,
If you are comfortable buying a term plan from SBI, kindly go ahead.
Do disclose all the required information accurately in proposal form.
Thanks SreekanthReddy.
I don’t have any idea on any Inc company. I want to take SBI home loan in next year. So just preferred SBILife. Can you please comment on Kotak/Bajaj/Reliance/ICICI because these premiums are less than SBI/LIC ?
Dear srinivasareddy,
You can buy a term plan from any company.
If you insist me to tell few names, check out ICICI Pru iProtect Smart & HDFC click2Protect plus online term plans.
If you take home loan, you can assign this term plan to your banker.
Read:
iProtect Smart plan review.
HDFC Click2Protect Plus review.
What is assignment of life insurance policy?
dear reddy
Iam 40 yrs old nonsomker , i want to take pure term plan , which will be better between religare or max life , bit confused pls sugesst me and though I am suffering high BP from last 2 years and Now i am fully controlled and having normal BP from last one year , should I disclose it or not as it is normal now.
Dear kumar,
You have to disclose it. Both are good ones.
Read : Best Insurance company as per latest claim settlement ratio.
Hi
I am 33yr old male non smoker
I have shortlisted 3 companies for a term of 40 yrs for a sum of 1cr
1)Kotak with claim settlement ratio of 92% and good solvency ratio and premium of rs.11736
Kotak has a consistent claim settlement ratio of above 90% for 3 consecutive years
2)PNB metlife with similar claim settlement ratio of Kotak and same premium of rs.11781
PNB is a big nationalised bank and Metlife is one of the largest insurance companies in the world
3)Aegon life with claim settlement ratio of 89% and premium of rs.11172
Aegon is in partnership with bennett coleman company which is a times group company
Aegon doesn’t have a very good claim settlement ratio in the past but by paying an additional premium of 500rs you can get a waiver of future premiums on discovery of critical illness.
Please advise which policy should I go for considering I am taking a policy for 40yrs based on the data available of a few years.
Thanks
Abhishek
Dear Abhishek,
All the three plans are good ones. You may buy from a company that you are comfortable with.
If you insist me to shortlist then my vote would be for KOTAK out of these.
Hello Sreekanth !!
Its good to have knowledge of such kind specially when you are about to buy such plans. Thanks.
My question is- in any insurance cover, whether traditional or term plan, if we purchase two or more plans, and upon the death of the insuree whether nominee can claim sum assured amount from both the companies or only one company will pay, citing tha fact that ‘you have alraedy claimed agianst the death certificate and you cannot claim further’??
For e.g, I take 2 term plans of 1cr each (either from same company or different), then upon my death my family will receive 1cr or 2 cr?
Pl clarify.
Thanks.
Subham
Dear Subham,
The nominee can claim from multiple life insurance companies.
If everything is in place, your nominee would receive Rs 2 Cr.
Thanks for the reply Sreekanth..
I want to further ask that under term insurance death by what means?? whether death due to any reason will be covered including accidental death?
Thanks.
Dear Subham..Yes death due to accident is also covered.
Sir, some confusion wrt to what has been answered here about death due to accident. Say, a person takes term plan without ADB rider and dies in an accident. will sum assured be declined as death has been due to accident? if not, then why take a ADB rider?
And does death due to accidental murder and riot come under natural death or accidental ?
Dear Sri,
Term insurance without ADB Rider : Death due to accident is covered and the basic sum assured will be paid to the nominee.
Term insurance with ADB rider : If death happens due to an accident, basic sum assured + sum assured selected under ADB rider, both put together will be paid as
claim amount to the nominee.
Accidental death due to roits etc, if they are covered or not, one needs to check in the policy wordings.
Thanks for prompt reply. So , can we conclude ADB rider is only to make the policy look more attractive ?
And thanks for info on MWP Act. Wasnt’t aware of this.
Dear Sri,
It can be included based on one’s requirements, affordability and type of occupation.
My suggestion is to take a basic cover term plan and consider taking a stand-alone Personal Accident Insurance policy.
Read : Best Personal Accident insurance plans.
Awesome Article Sreekanth
Thank you very much.
I am a smoker with age 36, and family history of Heart attack is there, I am married and I have 10 months child,
I would like to take 1 Cr term insurance, and suggest any plan to secure my child future life.
I dont have any insurance plans taken yet.
Dear Pradeep,
Considering your profile, kindly buy a term plan with adequate life cover at the earliest.
You may consider two more things i) personal accident cover & ii) Health cover for self/family.
Once you plan for these things, consider investing in equity mutual funds for your retirement & kid’s education goals.
Read:
Best Personal Accident Insurance plans.
Best family floater health insurance plans.
Best portal to compare health insurance plans.
Retirement goal calculator.
kid’s education goal calculator.
Can we buy term insurance policy for non working people. Iam planning to buy the same for my wife.
Dear Rahul,
Life cover is not required for a non-working member of the family.
You can buy a health cover in your spouse name.
Read:
Best Family floater insurance plans.
Best websites to compare health insurance plans.
Hi Srikanth,
First of all Thanks from providing such a beautiful platform.
I hv gone through your article e-Term insurance plan & confused between ICICI & Max life.
Plz advise.
Dear Pramod..Both are good ones.
But you may read my article on : ICICI Pru iProtect Smart review and then take final decision.
Hi Sreekanth,
I am male, non smoker 34 years old , want a Term plan. I searched, Edelweiss Tokio giving 2 Cr term plan for 46 years (upto my 80 years) with Totally and Permanently Disable (TPD) of 1 Cr upto my 70 years at Rs. 30K. But its claim ration is very low (between 55-60%). Is it good term plan or suggest me other maximum long term plan with TPD at low premium.
Dear Mahesh,
As it is a new company, generally the new ones will have lower claim settlement ratio.
The policy term should be dependent on your expected retirement age, financial goals/commitments/liabilities.
hai sreekanth,
after going thro’ ur website, i have chosen icici and kotak for taking term plans as they were having certain common features like basic cover and tpd waiver. i need these things only. please suggest which is best and while comparing premiums kotak premium is cheaper than icici. shall i go for kotak? please advice.
Dear Babu..Both are good ones, you may go ahead with kotak.
Read:
Best Personal Accident insurance plans.
Hi Sreekanth,
I am 35 years old, non-smoker and don’t have any illness history.
I have two plans (money back) from LIC: 1. LIC Bima Gold, sum assured INR 5 Lakhs, purchased in year 2009 (premium Rs 17,800) and 2. LIC Jeevan Ankur, sum assured INR 3 Lakhs, purchased in year 2012 (premium Rs 14,000).
I want to buy term insurance worth 75 Lakhs/ 1 Crore till my 60 years of age. Please suggest on the following:
1. Should I surrender LIC Jeevan Ankur plan/ Jeevan Bima Gold plan? OR just I stop the premium and keep the plan.
2. Among LIC e-term and HDFC online plans, which is the best plan? Or could you suggest any other good plan.
Thanks
Dear Alok,
You may make BIMA as PAID-UP (stop paying the premiums) and consider surrendering Ankur plan.
Read: How to get rid off unwanted life insurance policies?
But before that, you have to buy a termplan.
Dear SriKanth,
First of all very thankful to you for creating awareness to the people to secure their lives by educating them thru blog. I am one of them . i would like to take term insurance plan, and shortlisted these three HDFC,ICICI,Aegon Life .
after gone thru various factors i would like choose Aegon Life iTerm Plan ,factors influenced me : premium,additional riders : Accidental death benefits+4 Critical illness benefits (cancer,openchest CABG, first heart attack and stroke) ,wavier of premium raider on critical illness .
i am 35 year old with a family of three , me ,spouse and baby
Policy term;30 year life cover :1,00,oo,000 accidental death benefit: 63,00,000, Critical illness benefit 10,00,000 Total premium for this plan is 18,332.
besides that i have 2 jeevan anand polices sum assure 3 and 5 laks receptively ,
i started 3oo0 per monthly SIP for MFs.Axis LT Equity Fund(G) -1500/ Franklin India Taxshield(G) 1500/
i would like to invest long term equity funds to have wealth at the end of tenure.i wud like invest more in equity .
Franklin India Oppor. (G) 60 %
Mirae Emerging Bluechip Fund (G) 20 %
ICICI Pru Value Discovery Fund (G) 20 %
Please help us in financial planning.
also suggest with best term plan.
Thank You,
Kishore
Dear Kishore,
In case if your family has a hisotry of critical illness , suggest you to buy a stand-alone CI plan.
I believe that it is better to buy a term plan with basic life cover.
Read : Best Personal Accident insurance plans.
When did you buy jeevan anand policies? You may provide more details.
Read : Term insurance Vs Traditional plans.
Regarding MFs, kindly go through below links;
Best Equity funds for 2016.
MF Portfolio overlap analysis tools.
Dear Sreekanth,
Thanks for your advice. i took Jeevan Anand in 2007 one policy and another policy in 2013 with lack of knowledge. as per your suggestion i am taking basic term plan with basic life cover and i will plan illness/ accident cover separately.thanks for help
Dear kishore,
You may make 2007 policy as paid-up & can surrender 2013 policy, after buying term plan.
Read : How to get rid off bad life insurance policies?
Great Article sreekanth ,
i have taken insurance form below company and i am paying 500/- per month to theme its cheap Can i know are they useful for me ?
and
Does it make sense for senior citizens to buy term insurance?
you can see this URL:-http://goo.gl/wwz0H0
Dear Rahul,
Future Generali is a new company nevertheless as long as you have disclosed right and complete info in proposal form then it is fine.
HI Sreekanth,
Currently i am holding below term plans.
I am 32 years of age, non smoker, non alcoholic.
1) SBI life sheild ( Sum assured-31 lacs ) – 30 Years-Started in year 2011 It will cover upto 58 years of my age.- Yearly premium- 7800
2) Bajaj Allianz sarve shakti – (Sum assured -1o lacs) -Premium paying term-10 Years– Yearly 24 thousand- started in year 2012.
3) Lic Bima Gold- (Sum assured-1 Lac)- Yearly 5500- started in 2011- premium paying term-16 years
My company also having group mediclaim which cover me and my family and its of 3 lacs.
Now i would like to discountinue SBI Life shied Premium due in Jan 2016 and want to opt for Aegeon religare iterm plan for 50 lacs with ICL , ADB, waiver of premium in case of ADB riders.
Also i am thinking to dicontinue Bajaj allianz sarve shakiti which is not at all good in ( Sept-2016) i will be doing that since some thing like 4 years i need to wait to discontinue that policy to get minimum interst what i had invested till now( nearly 80 thousand i paid till now)
My questions:
1) Firstly choosing Aegeon religare is good or bad compared with HDFC protect plus
2) Comparing Aegeon religare and HDFC protect plus Aegeon is giving life cover upto 75 years ( i.e 43 years from now for me). HDFC only 40 years
3) Based on your experience is it really required to take Term Insurance till 75 years of age.
4) I would like opt for 50 lacs as sum insured + Riders as well. Will this be fine?
Thank you in Anticipation
Dear Sandeep,
2 – Is this a term plan? (Bajaj plan) . How come for a cover of just Rs 10 Lac the premium is Rs 24k pa?
3 – This is not a term plan. Kindly do not get confused between a term plan & a conventional plan. It is a money-back plan.
Answers;
1 – Why do you want to discontinue SBI shield? (is it smart shield plan?). Both are good.
2 & 3 – Selection of Policy term should be based on your expected retirement age, financial obligations, financial liabilities etc.,
4 – Suggest you to buy a basic cover and then buy a stand-alone personal accident cover.
ICICI’s recently launched plan ‘iprotect smart’ also looks good.
Read:
Best Personal accident insurance plans.
ICICI new term plan iProtect Smart : Review.
Hello Sreekanth,
I am planning for term insurance, my age is 35 years, no disease history till time. Please advise term plans which covers deaths (all reasons) I mean terrorist attach, disability, road accidence etc. I don’t mind mid range perimium but success rate should be high.
Many Thanks
Madhav
Dear Madhav,
I believe most of the term plans do not cover risks associated with terrorist attacks or risks due to earth quakes.
Suggest you to check with the company that you have shortlisted.
Dear Srikanth,
As you know that insurance companies ask question about health and pathological test gone. If any interested person had gone some pathological test very long ago (say 4 years back) as per advice of doctor and in test no illness was noticed but the person has not kept those report with him present time and now he is planning to take e-term plan. In health question what should he mention regarding pathological test gone— YES or NO. If Yes is mention then he will not be able to fill information such as date of test and illness position due to non availability of report. Please give your opinion.
Shiv Shankar
Dear shiv,
I believe that 4 years is long-time back. You may mention it as NO and anyways they will do the medical tests again.
Thank you very much, sir, for valuable opinion.
Under what circumstances will my claims not be settled ?
The Policy shall be void if the Life Insured, whether sane or insane, commits suicide resulting in death directly or indirectly as a result of such suicide within one year of the Issue Date; or one year of the date of the latest reinstatement of the Policy. In the above cases, no benefits shall be payable For detailed Terms & conditions, please refer Policy Bond.
Above clarification has been given by Bharti Axa life in its website and the company has not written in the bond regarding exclusion of death claim in case of earthquake or terrorist attack etc. I think the company is liable to pay to insured nominee in case any reason death of the insured except mention above. What is your opinion Srikanth ji.
Dear shiv,
Generally life insurance company do not pay death benefit if suicide happen withing 2 years of policy issuance.
Generally risks arising out of earthquake or terrorist attacks are generally not covered under term plans. However you may get this re-confirmed with the company directly.
Thanx for valuable advice Shrikanth ji.
Hi Sreekanth,
Need your advice as to which term insurance is better for a Diabetic aged 33 years old with annual income of 12 lakh per annum.
Thanks in advance.
Warm regards,
Anjali
Dear Anjali..You may select any plan from the above list.Do disclose about the medical condition in the proposal form.
I have purchase bharti axa term plan 50 lakh after medical check up by company my annual income 380000 but I want to another company term plan also. Can I purchage and after death both company give me claim. Policy purchase time I give correct details
Dear ujain..You can apply but the life insurance company may or may not issue the policy. It depends on your income & other details.
hi,
first thanks to you for providing usefull information on life insurance.
I am 44 , looking for term ins plan, i m confused between LIC/HDFC,
lic because higher claim settlemant ratio but costly premiums,
hdfc good for low premiums as compared to other companies, but private player and low settlement ratio.please suggest. secondly, considering the followups after the death of the insurer , is it OK TO BUY TERM INS ONLINE MERELY BECAUSE ITS PREMIUMS ARE CHEAPER COMPARED TO OFFLINE .
Dear RAJESH,
Both are good ones.
Do not worry about claim settlement, kindly just disclose all the information accurately and honestly in proposal form.
sir, would like to buy term policy, suggest me some plan.
dob: 09/april/1984, income: 40,000/pm.
Dear ramnarayanreddy,
You may buy a term plan from any of the above listed companies.
Hi Sreekanth,
I am 39 and bought this 1 Cr term plan of Aegon Religare just before I turned 35 & am paying 12,500 p.a. for insurance with critical illness rider.
I am really worried of their low settlement ratio. Should I switch & to which other more reliable & renowned company, given that the premium be similar?
Dear Alok,
As long as you disclose right and complete details in proposal form, do not worry abt claim settlement (if any).
However, based on your income/economic situation you may enhance the sum assured by taking one more term plan of your choice.
Also read:
Best Personal Accident Health insurance plans.
Sreekanth,
Thanks for good explanations. found very useful.
i am a NRI for last 2 years and will continue to be atleast for another year. i wanted to buy a term insurance plan. i prefer LIC because of their claim success rate. i found in LIC website that NRI’s are not eligible to apply for e-term insurance.
i will be travelling to india shortly, can i apply for a term insurance policy when i am there? wanted to avail the low premium advantage of online plans. what would be the best for NRI’s.
Dear Mani,
If you are comfortable taking a term plan with LIC, go ahead. But do keep it in mind that their premiums are costlier than the premium of term plans offered by other LI companies. You may apply when you are in India, suggest you to complete medical tests and try to get the policy bond when you are in India itself.
Dear Sree,
Your blog is quite informative and impartial. I appreciate your efforts.
I am also looking for a term policy. I have few specific clarifications:
a. I am 37 years of age. Whats the risk if I don’t disclose that I smoke?
b. Somewhere in the QA there was a mention that home loan could be linked to the term plan. Did I get that right?
c. I am bit tempted with Max life plan with increasing monthly income. Any feed back from your en on this?
Thanks in advance.
Dear Satish,
They can find it based on the medical test reports. Be honest & disclose all the requirement information in the proposal form.
Home loan provider can ask the applicant to ASSIGN the term plan in their name, so that their risk is covered.
Kindly read : What is ASSIGNMENT of Life insurance policy?
Suggest you to buy basic cover & stand-alone personal accident cover.
Read : Best Personal Accident insurance plans.
Dear Sreekant, thank you for sharing such valuable information. Pl share your views on following points.
1. I have taken online term plan from Maxlife 50 lakh. with accident benefit rider of 23 lakh. I want to assign this policy to my home loan, which is around 35 lakh, should I go for conditional assignment, or absolute assignment?
2. I have taken this online plan through policybazar.com, and had good experience. Are these people getting any type of commission from insurance company?
3. Can you suggest any good health insurance plan? I am 30 years old, non-smoker. Also please suggest coverage amount of health insurance plan for me.
4.Should I take group health insurance plan, or go for separate plan for my wife?
Thanks , once again.
Dear Vivek,
1 -It is better to go for ‘conditional assignment’ right, so that after you repay your home-loan the policy comes back to you.
2 – Obviously yes. But nothing wrong in purchasing policy through them if you are happy buying thru them.
3 & 4 – Kindly read below articles;
Best Family floater health insurance plans.
Best portals to compare health insurance plans.
Hi Sree,
Nice details to choose from the Insurance plans. Just to add to your points on LIC e-Term Policy, I checked with LIC customer care and received a reply that “e-Term policy supports death due to critical illness as well as accidental death”.
Appreciate your service. Keep it up..
Dear Rajesh..In fact any term plan does that right? That’s the main purpose of a pure term plan.
Yes Sree,
Based on the article, i thought LIC may have additional riders to support Accident Death Benifits with extra premium. so confirmed with them. All set, applied today and waiting for Medical tests.
Dear Rajesh..I believe that ‘riders’ are not available with LIC’s e-Term plan. Could you please share any link / source for the confirmation??
Hi Sree,
Yes, Riders are not available in LIC e-Term Plan. According to the email reply from LIC representative, the plan itself covers “Death by critical illness and accident”. Did i get your question right?
Dear Rajesh..Those risks are provided by any term plan. Kindly note that LIC premiums on term plans are costlier than the term plans offered by other Life insurance companies. But if you are comfortable buying from LIC, kindly go ahead.
Hi Sreekanth!
I liked the Max Life online term insurance plan. I have to pay 12k per year from now (30 years old) till I’m 65 years. For 1 crore lump sum plus 40k per month for 10 years in case of an event (including accident).
But two things I didn’t like- No amount on maturity (my old-fashioned father shouted at me that there’s no amount on maturity!!)
Its valid only till I’m 65 years old. What happens after that???
Isn’t there a life insurance which will either cover my life forever or provide a maturity amount in case I’m still alive at the end of the period?
Please advise. Very confusing for me.
I really like your blog. Very useful for a new entrant like me (doctors start earning late and settle late in life!! ) Just one suggestion, when you reply to our queries, can a notification be sent to our mail box, so that we know when you have replied, and can click the link and directly see your reply??
Dear Vineetha,
Ideally insurance is required till the time one earns or have dependents or have financial liabilities (obligations). So, the ideal term (policy duration) can be till the expected retirement age.
Kindly share my article : Term insurance Vs traditional plans : with your father.
Term insurance plans do not have maturity benefit. You can buy a term plan and invest in other financial products based on your financial goals. This is the prudent way of investing and planning your finances.
By the by, regarding the ‘comment alerts’ option – work is already under progress. Thank you for the suggestion. Keep visiting!
Hi, I am little bit confuse whom to join as an agent either LIC or Max. Pls suggest.
Hi
If we purchase on line term plan and at the time of death of insured person any despite between nominee and insurance company, then what will the judiciary area. Can we choose our home town or it will be metro city like Mumbai etc. where corporate office of that company exist.
Dear Mr Singh…It will be given in the policy bond or policy wordings. But I believe that policy holder will not be given any choice, as it is the company which states clearly about the ‘jurisdiction area’ in case of any legal disputes.
I am 40, Govt. staff, old pension scheme with GPF. salary now 3 lac p.a . 2 children, spouse employed. Going to build house. wanted to join term policy with maximum age of 75. which company ‘s e-term policy is min. premium, max.sum assured. compare ICICI/HDFC/LIC.
Dear KARUNA..You may buy from a company that you are comfortable with. LIC term plan’s premium is costly when compared to pvt company plans.
nice work bro.
Hi I am planning to buy (LIC’s e-Term Plan Online Term Insurance Plan ) for 50,00,000 , I am working in software company. my question is can I get tax benefit(80 c) for e-term plan.
Yes dear Krishna..you can claim.
Thanks Sreekanth 🙂
Dear Sreekanth,
First of all thanks a lot of such an initiative of guiding the people. i have a few question..
i am 54 and my wife is 52. we both are having own business , i am a building materials supplier and my wife is having her own stitching and boutique shop. we both filled the ITR regularly. NOWmy question is i am looking for a term plan for myself and my wife. is it good decision as i recently came to know that the real insurance is term plan and health ,HEALTH i alreday bought of ourself. now pls suggest me is it good to buy a term plan at this age. and what documents i need to purchase the same.
I AM having all the doc like ITR,aadhar card,PAN CARD but dont have any proof for my educational qualification. pls suggest.
thanks in advance.
Dear INDER,
Do you have any family member(s) who are dependent on you? Do you have any financial liabilities or financial obligations?
You may enhance your health insurance cover by buying a Super Top up plan.
Kindly read : Best Super Top up health insurance plans & their benefits.
Dear Sreekanth,
First of all thanks for your kind reply. yes i have two son`s. Both are working in private sector. i have some financial liabilities also as well as according to our life style. that`s why i am looking for a term plan and want coverage upto the age of 70. So pls suggest is it good decision or its a wastage of money to buy term plan at the age of 54, as i am little but worried that is company really pay the claim at the age of 70.
Dear Inder,
It is not a waste of money if you have financial liabilities and if you do not want to pass on those liabilities to your sons.
You may buy a term plan with sum assured that can cover the liabilities. It’s the same case with your spouse.
As long as you disclose all the required information honestly in the proposal form, claim (if any) has to be honored by the insurance company.
Dear Sreekant,
i don’t want to pass any liabilities to my sons. that why so finally i am stuck between max and KOTAK term plan? which one is good? pls suggest. My last question is when i am going through to fill the application they ask my qualification. i am 10th but unfortunately missed my mark sheet about 10 years ago. is that mandatory requirement to buy or a company can reject my application or they need it at claim time. pls suggest
thanks a lot in advance
Dear Inder,
Both are good. It’s your choice 🙂
Why to take chances, you can clearly check with the company customer care about your education qualification matter.
Dear Sreekanth,
I have been looking for the term insurance plan from last month. No doubt your site helped me a lot. However, I am confused between “ICICI Prudential iProtect” or “ICICI Prudential iProtect Smart”.
When i tried to calculate the premium amount for both policies, the ‘iProtect Smart’ has less premium than ‘iProtect’, even though it provides additional benefits. How?
Plz help me out to understand this…Plz
Dear Siddheshwar,
I think smart is the new cheaper version of I protect. They have removed I protect from their site. You should go for the new one it has a lot of new features esp critical illnesss cover.
It covers a lot of illnesses but don’t forget to read exclusions.
Dear Sandeep..Thank you for sharing your inputs.
Dear Siddheshwar,
ICICI’s iprotect is a basic plan with only one rider (accident death benefit).
This new iProtect Smart offers basic cover + Critical Illness rider + Disability benefit rider + monthly income option. Kindly compare the premium for basic cover with other plans and go ahead. I believe that it is advisable to take stand-alone cover for CI & PA.
Read : Best Personal Accident insurance plans.
I guess they are trying to compete with HDFC’s protect plus plan.
Thanks brother for your kind help.
Hi,
I am NRI now and getting salary in USA.In term insurance,they are asking for Salary right, So should i give my USA salary converted into INR ? or i should give my Old Indian salary which i was getting while i was india ?
Why i am asking this is : In USA salary – if you convert it will be 30 lak + , So we can get Extra sum assured right ? But later on after 2 years if i come back to india,my salary will be less…
So how the sum assured will be taken care ?
Dear Jegan,
You can submit the last 2 to 3 years income details to the company, it can be your USA salary. Kindly note that you may have to bear all the medical test expenses. Suggest you to check with any of the shortlisted companies for more information. You may kindly share the learning here.
Very informative single source of information. I appreciate your good gesture. Please keep it up.
Dear AVS..Thank you! Keep visiting and kindly share the article(s) with your friends.
i already have a term plan of 50lakhs with HDFC life. i want to add another 50 lakhs to make it 1 cr. Should i go with existing insurer or buy a term plan from a new insurer?
Also i will be moving to a new location in few days so should i buy it at the present or new location?
my age is 25.
kindly suggest.
Dear mangesh,
May I know few details..
Are any of your family member(s) financially dependent on you? Your income range?
Taking a new term plan from another insurance company – it is purely based on your convenience, comfort level and affordability.
But my suggestion is to take it (if required) from the same insurer. Do disclose all the required info in the proposal form.
If you are relocating very shortly, suggest you to apply from new location.
Hi,
I have seen people say term insurance is not good for person will less age (Below 30-35). Is it true ?
When I ask them why they just say those insurance are designed for people with more age and you should go for policies where you can get some good returns back. But I feel like I should have at least one term insurance as my dependencies get considerable amount where they can not get the same in policies which offers some returns on maturity of policy. what do you say ?
Dear Harish,
More than the age, we need to look at two important factors – 1) If an individual is an earning member of the family, he/she has to buy a term plan irrespective of the age profile. 2) If one is an earning member and has dependents then Term insurance is must.
Hi,
I am planning to buy a term insurance, but having some doubts in declaring nominee. My parents don’t have any documents as proof for DOB. Would there be any difficulties for them to claim and assured amount ?
What I meant to ask is what are all the documents should be proper for nominee to claim the insurance?
Dear Harish,
There may not be any difficulty just because they do not have any proofs to confirm their age.
Hi,
how is kotak term insurance policy? its claim ratio is bit less when compare to others but it is above 90. i am interested with kotak as its premium is bit less for 1cr. pls suggest
Dear sharan,
Go ahead with them..just disclose all the required info in the proposal form honestly and completely.
Dear Sreekanth,
Many thanks for posting very useful blog on Online Term Insurance.
I’m looking to buy an online term plan for last 2-3 years but gets confused between my requirements, outgo towards total insurance policies, LIC versus many private players and of course the related chunk in my annual cash flow. My annual salary income comes around 8 lpa. FYI, I already have 25k annual outgo towards LICs Jeevan Saral. Please help me out by answering my below queries :
1) Do I need to surrender the existing LIC policies before buying the pure term plan ?
2) I’m very convinced with LIC’s claim settlement ratio but is also concerned about the difference in its premium with other top two players (ICICI and HDFC). Please suggest?
3) How much cover I need when I don’t have any loan/ children obligations at present. Will combination of two plans (LIC and ICICI/HDFC) and their term (what term you suggest as I’m 38 now) is of any help to reduce the premiums ?
4) Do I also need to have any Accidental insurance plans?
5) I’m having Rs.3 lacs Mediclaim cover for me and my spouse from National. Is there any need to enhance it ?
I’d be really grateful to you if you can specifically answer/mail me the answers to my queries as I’d already been to your excel calculator for same but is still lost.
Thanks in advance !
Dear Brijesh,
1 – No it is not compulsory. But it is prudent to discontinue traditioanl plans once you buy a term plan. Traditional plans can give you at the best 5% returns.
Read : How to get rid off unwanted insurance?
Term insurance Vs traditional plans.
2 – LIC / HDFC / ICICI. All three are good. You may go ahead with any one of them.
3 – Ideally, it is better if you take term plan cover till your expected retirement age.
4 – Better to go for stand alone PA plan.
Read : Best Personal Accident plans.
5 – You may consider buying a Super top up health insurance plan.
Read : Best Super top up plans.
Dear Sreekanth, thanks for your prompt reply !
I’ll surely try to follow and will get the desired plans soon.
Thanks & regards..
i am interested in a term life plan for 1 cr. would require assistance on the below point.
1) should i opt for single insurance company or 2 different companies – which are the best 2 in overall perspective.
2) is it better to take additional coverage for accident, disability and other benefits in the policy.
3) wanted to confirm if we dont take all these accident and other facilities in term plan , does the claim processing gets successful paid in other death reasons like – critical illness, accident, etc etc
hi , better you can go with Aviva Term plan , there premium is less , compare to other co.
and its a MNC co. with 300 years old co. there claiming ration is 87 per ….they wer incresing ther claiming ratio year by year…but co have a cases in court….in front of me i saw 1 person who has got 50 lakh……
thanks and regard
Manjunath
90289509**
Dear DEEPAK,
I have provided the best plans list above. You may choose any one.
My personal take is to go for basic term plan and standalone Personal Accident policy.
Kindly read :Best PA plans.
Hi Alok please suggest good investment plan i wish to create 10 lakhs ammount in next 3 years.
Hi,
Please suggest me some good investment plan.
Dear Alok..let me know your financial goal(s) and investment horizon??
Hi sreekanth,
its nice to see your comments and suggestion provided by you to comments.
I am a state govt. employee.32 years old and I have got sbi e-shield policy for life cover of 25 lacs and for 25 yrs term with accidental benefit with increasing cover rider.
As I have one child of 10 months and currently bearing no loans.
I want some good investment options for securing the child’s future. so that I can get money at the right time for his education and marriage purpose. so plz suggest me some options for this.
As well as is it enough insurance cover for me that I have chosen?
Dear Gajanan,
Suggest you to take health insurance cover too.
Kindly read;
Best family floater health insurance plans.
Best portals to compare health insurance plans.
Kids Education goal:
Suggest you to go through the below articles and revert to me;
Kid’s Education Goal Planning.
Best Equity funds.
Best Balanced funds.
Quantum of insurance is dependent on your future income earning potential, financial liabilities & financial commitments. You may consider buying one more term plan.
Dear Sir, at every quarter IRDA published the claim settlement ratio of each company and it is changed for every company every year, so how we will decide, which company is better and on what basis. Pls guide bcoz I also wants to take plan.
Pls tell me which one is better in future – AegonReligare or SBI shield.
Dear Rajeshree..I have replied to your email. Kindly check and revert to me.
sir,
I had term plan of icici for 50lac, but I want to switch over to Hdfc as providing accident desability plan
Dear srinivas,
It is not possible. Suggest you to buy a stand-alone personal accident plan.
Kindly read – Best Personal Accident plans in India.
Kindly suggest on one issue- if i take policy now and i may shift or go abroad for few years due to my job requirements, will that policy be in valid form?
And if i die abroad, will they accept the claim?
Dear Muks..it is valid and the claim will be accepted.
hai..
Bharti axa and Reliance have postponed (50 lacs each) due to kidney stones. My doctor had advised kidney stones are common . As size of these are <6mm, no treatment is required. In future, surgery may be required if grown more size.
Both companies told after 12 months, after clean medical history, can be applied once again.
my question is, can i apply now to other companies like SBI/MAX/HDFC/ICICI? will they accept my proposal?
I m ready to pay extra premium also.
Could you suggest me how can i get Term policy with my medical history?
Regards,
Siddesh
HAI…
ALSO SEE MY POST ON 22-SEPT-15, FOR UR ADVISE.Kindly reply.
Regards,
Siddesh
Dear SIDDESH,
You can definetly apply for other company’s term plans. But do disclose about your medical condition. You may also have to mention about the ‘rejection of proposal by other companies’ in relevant sections while applying afresh.
Some companies do issue term plan by loading extra premium.
I have already purchased Aegon online term plan for me and my wife, independently, over 3 years ago. Also have a few other offline term plans.
Am worried about:
The poor claim settlement ratio of Aegon that you have published
Am not sure whether I have divulged each and every term plan that I have held to other issuers.
Do these two points mentioned affect the claim settlement? Also if I have to buy more should I shift company? Can I now write in to the individual issuers and inform them of my other policies?
Dear Amit,
Claim settlement record is important but ff you had disclosed all the required information in your proposal form, I do not see any reason to worry now.
If you have bought say A, B & C plans. Then you can contact B company to check if you can update them about A plan. Same way to C about A & B plans.
Is it better to buy an insurance policy of 1.5 crore as:
50 lac from company-A,
50 lac from company-B and
50 lac from company-C
or
1.5 Crore policy together from shortlisted company ????
Please suggest.
Dear Jangir,
It is not advisable to buy from 3 different companies..in case of any claim, your nominee have to submit claim request to multiple companies.
You can buy it from single company but do disclose all the required information honestly and accurately.
Dear sir,
What will be the the approx extra premium if the person is diabetic
Dear Liju..that may vary company to company. The proposer needs to disclose his/her medical history details honestly and clearly in proposal form. Life insurance company will inform the proposer about the loading of premium while underwriting the application (if required).
Sir. I am 49 years old Ex-serviceman want to get a term life insurance for Rs 50 lakh which is the best one for me pl suggest me thanks
Dear Murugan,
You may select any plan from the above list.
I am a 26 year old smoker, interested in going for lic or hdfc life insurance for 2 crore cover.. I plan on selecting non-smoker in the application(confident of not having any issues during medical check-up as I am physically active) .. can I later (say maybe 5, 10 or 15 years down the line) say I have started smoking and then pay the higher premium? or would the insurance companies say that I have been lying right from the start and screw me over with very high premiums??
Dear chetan,
Once the policy is issued, company will not load extra premium. But if company comes to know about your wrong disclosure (may be during claim settlement, if any) then they may reject your claim.
Suggest you to disclose honestly about your habits and medical history.
31.10.2015
Dear Sreekanth
A very good afternoon to you and all our blog readers!
As I said earlier, I have purchased
1) Online term insurance, “HDFC Click2 Protect Plus” for 55 lacs,
2) Stand alone Personal accident policy for 50 lacs from “Apollo Munich”
3) Super top up mediclaim policy for 10 lacs with 1 lac deductible from “Apollo Munich” beside my company’s group medicliam policy for 2 lacs.
I would like to share my experience with the Companies while purchasing the policies, so that it will be useful for other readers.
1) Apollo Munich’s services are very very good, with one single personal meet at my home, just within 7 working days, I have received Policy document in hand both soft copy by email and hard copy by post. and
2) HDFC Life Insurance company, for my term life insurance, they have taken 45 days to issue a policy though it was purchased “ONLINE”. For each and every email communication, they took 3-5 working days to respond, acknowledge or confirmation whatever the communication is.
As I am 41 years old, as I mentioned “Hypothyroid and heavy snoring” in my proposal form, they have advised me to undergo medical checkup at their prescribed diagnostic centre, I have under gone. Further, they have loaded me with 90% extra premium.
Even, they have reduced my sum assured amount from 75 lacs to 55 lacs.
My over all experience with HDFC is “Very good” though it is delayed and loaded with extra premium, but they have taken all required steps, so that, I believe, when ever claim is required, my family members may not face any difficulty in claiming process.
Dear Sreekanth, Thank you for your advises through your blog, which were helpful for so many lakhs of people like me while taking such big decisions.
I would like to post the same info in your 2 – 3 relevant articles, which will be helpful for all other readers.
It is good to see that you have relocated to Proddatur, so when I visit my native place Kadapa, with your prior confirmation I would like to see you.
Thank you
Krishna KP
Dear Krishna,
I am very happy to know that ReLakhs.com helped you in making financial decisions 🙂
Thank you so much for sharing your real-life experiences with the financial service companies.
Which option under HDFC Click2protect plus did you take?
By the by, we can surely plan to meet 🙂
Dear Sreekanth
Thank you very much for your response!
I am extremely sorry, I didn’t see your response all these days, I was going through your other articles now and then, but I don’t know how I have missed it.
Under HDFC Click to Protect Plus, I selected “Simple Life Option”.
Krishna KP
Fine dear Krishna…In case if you do not have Personal accident cover, do buy it.
Nice job sir
age -49 years, male, non smoker. pl advice for 50lakh term insurance that sbi or lic.
Dear vickky..both are good, so it is your choice. But LIC premiums are costlier than SBI’s.
Dear Anand,
I am new to this term insurance. I would like to consider MAX insurance with monthly income plan. Please suggest is it beneficial and also please let me know how much we can depend upon these private companies.
Thanks in advance.
Warm regards,
Krishna
Dear Krishna,
As long as you disclose all the required info honestly in the proposal form, it really does not matter if the insurance co is a private one or a public one.
You may go ahead with your selection (Max).
I HAVE APPLIED FOR AEGON RELIGARE I TERM POLICY FOR 30 LAKHS. I AM A DEFENCE EMPLOYEE. THEY ARE CHARGING FOR DEFENCE EMPLOYEES MUCH MORE THAN WHAT THEY HAD QUOTED REASON IS SAYING RISK FACTOR. BUT THERE ARE SO MANY DEPARTMENTS WHO ARE NOT DIRECTLY LINKED TO WAR LIKE SITUATIONS IN ARMY ALSO. I HAVE FILLED THE EXTRA QUESTIONARE FOR DEFENCE EMPLOYEES AND THEIR DUTIES, AS THE SINGLE DUTY WHICH THEY ASKED IS NOT DIRECTLY LINKED MY ACTUAL DUTIES. WITH OUT ANY CONSULTATION TO ME THEY HAD CANCELLED MY POLICY. IS THERE ANY PROVISION FOR CHARGING THIS TYPE OF EXTRA PREMIUM, PL CLARIFY
Dear KRISHNA,
Yes, the policy issuance is purely based on company specific Underwriting policies/procedures.
Did they deny you the policy or offering the cover by charging extra premium?
sir,
plz kindly clarify
1.a person name “X” got term insurance rs.25lakh during policy tenure if he robbed&killed by thief, then will nominee get sum assured 25lak?
2.if “X” included his wife in term insurance(eg.bajaj allianz offering inclusion of wife) then wife of “X” died during pregnancy due to some jaundice or any other disease(in policy tenure of his husband), will “X”get sum assured amount?
3.what r dif typs of accidental & other deaths included in term life insurence in order to claim death benefits to nominee without any hurdles?
it is important to know before taking policy becaz now a days after death of person so many life insurance companies rejecting death claim simply showing different logics/tactics which r not informed to life insured before taking policy not even mentioning in sales policy brochure & policy document which ultimately results laments to nominee.
plz reply. ur answer will be helpful to all those people who generaly fooled by life insurance companies
Dear Anand,
1 – Yes, but after thorough investigation.
2 – Depends on plan or policy wordings. Kindly check out. I believe that the death benefit is payable on death of each life. On death of any one of the life assureds, the term insurance policy will automatically continue on the surviving life assured with a reduced premium amount.
3 – As long as the proposer discloses all the required information accurately and honestly, claims have to be honored. The proposer can ask all valid questions like the ones you have raised, before taking the policy. Get them clarified from the company itself.
Thanks for information. Which is the best insurance company in india in term of claim.
Dear Amit,
Kindly read my article on ‘Claim settlement ratios..”
Hello …..which insurance covers natural death ……its not clearly mentioned in any policy
Dear Harpreet,
All life insurance policies cover natural death. Kindly read the policy brochures or wordings carefully.
@ Sreekanth,
I would planning to buy term life insurance policy for me.Please suggest which is the best plan in the market.
I am very impressed by you to give valuable information abut term insurance.
plz keep it up.
Thanks
Dear Amit,
You may pick any one the above listed plans as per your requirements.
THE HITCHES OF ONLINE POLICIES
While, theoretically, the online facility looks good, there are a few drawbacks of the e-distribution channel. The insurance plans available on the net are mostly pre-set. That means, only the simple vanilla versions of the policies, which can’t be modified to suit individual needs, would be available to you. So, it won’t be possible to customise a plan to suit your special requirements or negotiate your premium with the insurer.
Also, a majority of exclusive online term plans will not have the option to select riders, such as accidental disability benefit, critical illness or premium waiver covers. So, in case you had planned to bundle these products, it won’t be available in an online sale. You will have to shell out extra for these protections.
Taking the case of Metlife Insurance, if you decide to buy their offline term insurance product, Met Suraksha Plus, it will give you an option to add riders like critical illness cover and additional accidental death cover which are available to you at a nominal rate. On the other hand, if you choose to buy their online term policy, MetProtect, it would have cost you less, however, the critical illness cover or for that matter any rider option would not be available with this plan.
When buying an e-policy, customers fill up the application form themselves, thereby, reducing the chances of mistake or a case of being mis-sold by a distributor. On the other hand, removing the intermediary can be disadvantageous for some.
The absence of an agent may not really help customers who depend on them to choose the right policy. Therefore, it is a good option only for the financially well-informed customers, who are sure about what they want to purchase.
“Insurance companies still don’t have a solid online claim processing mechanism. So, in case you want to file a claim, you will have to directly get in touch with your insurer or take the old route of contacting an agent,” says S K Sethi, vice president, Insurance Foundation of India.
If you are going through an insurance aggregator site, make sure the information provided by them is up- to-date. “Customers should ensure that they aren’t mis-guided by faulty information provided on the comparison sites. One should visit the company’s website and cross-check the information,” .
Like with any other e-transactions, there are some precautions you should take while buying online policies. Check for the websites security certificate (SSL) to verify that the site is legitimate and can encode files safely.
“The customer should always keep a screenshot of the transaction page, especially the page that shows you have made the payment. Lest there is any mis-communication or denial on part of the insurer, the customer should have some proof of the successful transaction,” .
I SUGGEST THE LIMITED PAY OPTION OF EXIDE LIFE INSURANCE which is good interms of affordability and long payment period.
Dear Shijo,
Thank you for sharing your views.
Insurance penetration in India is abysmally low. We definitely require services of GOOD agents who can give unbiased advice and provide quality service to their clients. Yes, most of the online term plans do not offer optional riders. But I believe that it is prudent to buy a basic cover plan and then buy a stand-alone comprehensive Personal Accident / CI policies.
Hello Sreekanth, The information you have provided is really helpful. About 10 days ago I was searching & comparing for a term plan on easypolicy.com..and in that process I gave my contact no. the very next day their employee called me…and pressurised a lot to buy HDFC click to protect plus… I got suspicious and denied.. since then they call me thrice everyday… are they agents or what…they said that they have mailed me a link…and i should file my plan through that link only…. why r they so much interested if no commissions are involved in online term plan. Please guide. I am 37 yr old, male,non-tobacco user…annual income 5 lakhs. please suggest a suitable term plan (1 crore).
Thanks
Sachin goyal
Dear Sachin,
They do get some payment from Life insurance companies.
You may pick anyone from the above list. Disclose all the required info in the proposal form honestly.
Dear Sreekanth
have a pleasant day,
i am confusing to choose term plan so please help me out –
My self prashant and on 18 oct 2015 i will be complete 30 year so i need to take before to save some premium, i am doing job and my annual salary 7 lack and as per my calculation i need 1cr so can i take two policy instead of one policy and any drawback in choosing two policy with different company’s.
Please updae me if any rider need to be add ( personal accident, criticl illness Etc.)
Thanks
Prashant
Dear Prashant,
You can buy basic cover term plan and then buy a stand-alone Personal accident plan.
Read my article on “Best Personal accident Plans“.
Hi Sreekanth,
I have read all yours article and Its very good for common people who purchase their policy blindly by hearing their adviser. Thanks for your effort.
I am 26 years old and My income is only 10000 per month,I have purchased LIC jeevan rakshak policy but according to you its not good for saving purpose. I want to know best saving policy for me.Kindly reply this.
hai sir…
I had applied 50 lacs term policy each form Bharti axa and Reliance. I had mentioned that i am having kidney stones and submitted with all medical reports. Doctor advised me that since stones sizes are less (4-6mm), no treatment is required and can be treated in future if it increases. Both the companies postponed the policy and told can be applied after 6 / 12 months with clear medical report.
(1) Kidney stones are common. If treatment is given also, some stones will be present inside. If so, how i can avail term policy?
(2) I m ready to pay extra premium. Shall i apply to any other companies SBI / LIC / ICICI / HDFC/MAX?
Will they accept my proposal?
(3) other than term insurance, how i can get Life cover for my family safety? I dnt like normal LIC policies like Jeevan aanand,etc….
Kindly guide me. Thanking you sir.
Regards,
Siddesh.K
Give me your contact details i will assist you to get a term plan
I liked the way you explained Sreekant
Hi Sreekanth,
I’m also in process of purchasing Online term insurance.my query is
is Term Insurance protect against accidental death also ?
As we are in process of purchasing the house.The Bank suggest us to take Home Protection plans from them.
which covers only our new Home in case of death.
But if I purchase Term insurance of 1 Crore which cover my new home as well as provide money to my family after me.
is my understanding is correct please suggest.
Thanks alot 🙂
Term insurance covers everthing there is only one exclusion that is sucide within first year of policy term .
If u want to know more about term plan and want know which plan will be best for you as per as your need provide me your contact details i will guide you
Hi Sreekanth,
Planning to buy term plan for 35 years for 50 Lakhs but do not have faith in joint ventures. Except LIC any good company to go for in your views.
Amit G
Hi Sreekanth,
Very nice article, I always read your articles and its really helpful.
I am married and we both are 25 years old and working and have combined income of 10 Lacs.
I am planning to buy ONLINE pure/basic term insurance (term duration – 35 years) for both of us, before buying i have done some ground work and shortlisted below 2 plans as the premium of these are very less compared to LIC, SBI and ICICI.
1. Max Life Online Term Plan Basic Life Cover (75 Lakhs) – For self
2. HDFC Life Click2Protect (50 Lakhs) – For Wife.
But here i am still little confused and have few questions.
1. should i take single plan for me and my wife or should i go for separate plan.
2. Also if I am taking separate plan then is it better to take it from the same or different companies.
3. Is it better to take additional benefits along with plan like AD, CI, WP, ADR.
I will buy term plan before end of this month, so Kindly let me know your suggestions. Thanks.
Hi Sreekanth,
Please share your opinion on my query, it would be helpful for me.
Thanks .
Dear Mr Mittal,
I have gone through your query dated 15/sep.
Did you buy any term plan? Is it under process?
The shortlisted plans are good ones.
1 or 2 : The decision can be purely based on your comfort / convenience / requirements. You can buy plans from diff companies or same company, will not make much difference. Do disclose all the required info in the proposal form.
3 – You can buy a basic cover and also a stand-alone Personal accident policy. Read my article : Best Personal Accident policies.
Do you guys have health insurance cover?
Hi Sreekanth,
Thanks for your response.
1. No, I haven’t bought yet but will buy at the earliest. I am planning to opt separate policies for both as it will be helpful for tax savings.
2. We have Company provided medical insurance, but not personal or family floater kind of health insurance. Can you suggest any ?
Recently one person from Max Life suggested me to take “Max Life Life Perfect Partner Super” policy for both of us as it will give “Yearly bonus” from the next year onwards and good “Return on Investment” after Maturity period. He provided the illustrative details, below are the details.
SA – 14 Lakhs, Yearly premium – 73K, Prm payment term – 20 years and Policy Term – 50 years.
He also told us that Term plan is not good compared to this as money will be wasted once your term duration is over.
So i am confused here, Kindly share your opinion and guide me so that it will be helpful for me. 🙂
Dear Mittal,
1 – Do not postpone buying term plan.
2 – Also, buy a personal accident plan (Read my article : Best personal accident plans). Regarding Health insurance : Do not depend on employer’s group cover alone. Buy a stand-alone health insurance plan for yourself and your family. Read my article : Best health insurance plans comparison websites to shortlist health insurance plans.
Ignore Max life plan.
Hi Sir,
I have purchased Online Term Insurance from max life last week.
Life cover 50 Lac + 20 Lac Rider Option
Premium is 6338
Is right investment return after death to protect my family. And is Right insurance company for invest.
Be cause I choose this company according claim ratio.
Please share your opinion. Its really help to me.
dear sreekanth,
i want to purchase a term policy.3000000 lakhs sum assure for 30 years. i have opted two policies. icici care 2 and maxlife. which i should choose. and also some of my friend suggesting me to buy pnb metlife. what is your opinion. please give me some suggessions
Well written on how to select term insurance polices.
03.09.2015
Dear Sreekanth
Today, I have purchased Online Term Insurance, HDFC Click 2 ProtectPlus for Rs: 75 L and opted simple Life Option.
My sincere thanks to you for the articles you provided which help us in making decisions.
Dear Krishna..that’s nice to hear. So, your next purchase should be Personal Accident cover and Health insurance ??
Dear Sreekanth
A very good afternoon to you!
Yes, I will now think of
1) stand alone PA Policy from Apollo Munich, and
2) Super Top up policy from Apollo Munich.
My decision is based on your articles on those topics, Can I go ahead?
Thank you
Dear Krishna..your decisions should also be based on your requirements 🙂
Thank you Sreekanth
I mean to say your articles are very helpful to take my decisions.
Have a great day!
Hi,
I would like to buy online term plan.I have wife & 2 kids (5yrs & 3 yrs. respectively).My age is 34 yrs.
How much I should buy sum assured ? which company ?term duration?
my yearly income is 7-8 lacs.Currently i m living in kuwait with family.
Dear Manish,
Your minimum coverage can be Rs 1 Cr. Assess your the quantum of insurance cover based on your Income potential + Financial liabilities (if any) + Financial commitments (goals). Ideally the policy term can be up to your Retirement age. You can buy term plan from any company as listed above.
Are you an NRI?
Hello Sreekanth,
I am an NRI and want to have term policy , my family lives in India only ,
After i read your article i choose LIC e-Term but they wont give cover to NRI’s
Would you please suggest me any other Plan
I am wondering why you ask here Are you NRI ?
As per your suggestions made to other readers, I have shortlisted a term plan, i.e. “HDFC Click2 Protect Plus”.
In short, I am 41 yrs, non smoker, and would like to go for “1 Crore”. I have already been insured for 30 L term Insurance with Exide Life Insurance and LIC (25 L + 5 L) since 2010.
1) Whether to go for one policy, and the option is simple “Life option” for full tenure i.e. 34 yrs and the premium will be Rs: 28,000/- (or)
2) Whether to go for 2 policies, 50 Lakhs each, one for 10 yrs i.e. peak of my requirement to family with single payment for simple “ Life option” (Rs: 68,000/-) and another for 50 lakhs for 34 yrs tenure, and the options for the second policy is simple “Life option” or “Life option plus Income disability rider” (not accident rider, extra life option). (Rs: 17,000/-).
Please suggest me, I will be waiting for your reply.
Dear Krishna,
1 – Go with basic cover (life option).
2 – Suggest you to buy a stand-alone Personal Accident policy. Kindly read my article on ‘Best Personal Accidental insurance plans‘.
Do you have health insurance cover? What about your for your dependents?
Kindly share the details of your LIC policies (Plan names, commencement date, Sum assured, policy tenure..)
Dear Sreekanth
Thank you a lot for your valuable suggestions!
1) I have Mediclaim Policy from Company for Rs: 2.5 lacs, but after reading your article on Super Top up Policy, I have decided to go for it in very short time.
2) You said to go for basic life cover. O.K. but you haven’t said whether to split 1 crore to 50 lacs each or not! I will be very happy if you again advice me on that. Further, please suggest me, on those 2 policies as per my previous post, i.e. one policy for 10 years tenure and another for 34 years tenure.
3) I have 25 lacs of Term Life from Exide which ends in 2035 i.e. when I will be at the age of 60 yrs and 5 Lacs of LIC Term which ends in 2033 i.e. @ my 58 yrs. Of course, another 2 LICs which are of 50 K each (small, endowment).
4) Yes, sure I will go for ‘Stand alone Personal PA Policy’ as per your advice.
And lastly, suggest me whether to go for directly on line or through Insurance Brokers like Zen money Insurance! (because, there is only Rs.1600/- difference in premium)
I will be waiting for your very valuable reply,