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The e-term plan (UIN: 512N288V01) is a non-participating pure life insurance plan which can be bought only through the online mode without the involvement of any intermediary. Pure life insurance cover means that only the policy holder’s life is covered.
If the policyholder happens to die during the tenure of the plan, then the beneficiaries of the policyholder are given the sum assured. If the policy holder survives the tenure of the e term plan, then nothing is given to the policyholder and his/her beneficiaries.
By a non-participating policy is meant that the policy does not participate in the profits through unit-linked schemes and no dividends are paid on this policy. A participating policy, on the other hand, participates in the profits and dividends, and bonuses are paid on the policy whenever applicable and as decided by the board.
Any Indian resident and non-resident Indian who has attained the age of maturity can buy the e term policy. The proposer should be earning an income which should be sufficient to cover all existing as well as proposed covers. Income earners generally buy pure life insurance policies to ensure that their dependents are adequately provided for in the event of their demise.
Non-resident Indians can apply for the e term policy during their stay in India and also if they reside in any of the countries among the list of permissible countries. The ‘Know your premium’ section provides information on list of permissible countries.
The e term life cover policy can be bought by individuals who do not have any existing policy as well as those who have. In the latter case income of the policy, proposer should be sufficient to pay premiums for additional policy. Many people buy additional policies if they feel that their existing policies do not provide them adequate cover.
Premiums of the e term plans are cheaper than the offline plans, which can be 30 percent or more, and they also offer online rebates to subscribers. Moreover, people who are net savvy and are comfortable with purchasing on the net can also buy insurance plan online. It is more convenient and time-saving.
The e term plan has two categories with respect to premium amounts, the aggregate and the non-smoker categories. Policyholders of the non-smoker category have to pay lesser premiums than policyholders of the aggregate category for the same cover plan provided the cover value exceeds Rs.49 lakhs. Below Rs. 49 lakh cover value all policyholders, irrespective of whether they are smokers or non-smokers, have to pay the aggregate premium rates.
Premium rates for the non-smoker category works out to be significantly less than the aggregate category. For example for a policy tenure of 10 years and age of the policy holder 30 years, annual premium per Rs 1000 sum assured works out to be Rs 1.1 for the aggregate category and Rs 0.77 for the non-smoker category
In order to qualify for non-smoker category policy proposers have to clear the prescribed urinary cotinine tests.
|Entry Age||Minimum 18 yrs and maximum 60 yrs.|
|Sum assured||Minimum: for aggregate category Rs. 25,00,00, for non-smoker category Rs 50,00,000
No maximum limit on sum assured
|Policy term||Minimum ten yrs and maximum 35 years|
|Premium payment frequency||Only annual|
|Income||Proposer should have own earned income|
|Person covered||Only life of proposer is covered. The policy does not provide for Key Man Insurance (KMI)/ Partnership/ Employer-Employee Cover|
The documents that need to be submitted by the proposer of the e term plan would include the proposer’s age, identity, address and income proof.
Documents for age proof: matriculation certificate, birth certificate
Documents for identity proof: Aadhaar, Pan, License, Passport
Documents for address proof: Passport, Aadhaar, electricity bill, gas bill, possession/rent document
Income proof: Source of income statement. If employed then income statement attested by the employer
Medical certification: all medical proofs, wherever applicable and as prescribed by us
Medical tests may or may not be necessary. It depends on the information furnished by the proposer regarding his/her health status and also on the underwriting requirements for the particular policy.
Proposers who propose for policies under the non smoking category and or the medical categories need to undergo the prescribed medical tests.
The company mostly prescribe only basic medical tests like blood and urine test. Proposers should truthfully disclose all required information including information related to health status as if found to be deliberately hiding information or giving false information at any stage; then policy benefits can get cancelled.
If the proposer’s proposal is accepted by both the parties then all the medical expenses incurred for the purpose of purchasing the e term plan shall be borne by us.
In certain non-normal cases, the company does not pay the claimed amount which is the assured sum, and this includes suicide by policyholder within 12 months of purchasing or renewing the policy. However, there is a provision that allows nominees to raise a claim up to 80 % of the total amount of premiums paid by the policyholder before committing suicide if at the time of suicide the policy has not expired, after deducting taxes and extra premium if applicable.
The salient features of the e term plan include the following:
Plan can only be purchased through online mode
Plan has to be purchased directly without the involvement of any intermediary
Proposer can only propose for self-life, not for any other life
Pure life cover plan
Non-participating, non-linked plan
Two categories of premiums
Only annual premium payments are accepted
Only death benefit, no maturity benefit
The e term plan does not acquire any paid-up value
The e term plan does not acquire any surrender value
All types of deaths covered including accidental death
Cooling period of 30 days is offered on the e term plan
The e term policy does not have riders
Loans cannot be raised against the e term policy
Substantial life cover at nominal premium rates
Lower rates for non-smokers
Hassle free online processes
Assistance through phone call, toll-free, email and chat facilities
Tax benefits under section 80 of Income tax act
The name is synonymous with assurance
Claim settlement is their top priority
The company has a claim settlement ratio of 98.14 (IRDA 2016-17 Annual report data)
The e term policy provides cooling and grace period
The life insurance policies have provisions for a cooling period. The e term policy has a cooling period of 30 days. This is a period provided to policy subscribers to read the policy document thoroughly and clarify any doubts which may arise.
If the subscriber is not in sync with the terms and conditions mentioned in the policy document and overall is not satisfied with the policy, then he/she may return the policy within this cooling period upon which the company will refund the first premium paid by the subscriber after making the applicable deductions.
A policy once returned cannot be subscribed again by the same proposer as per the rules and regulations
All the policies have a grace period. For the e term policy, the company has provided a grace period of 30 days. The grace period is a period which is provided to policyholders to pay up their pending premiums. Suppose a policyholder does not pay a premium for e-term policy subscribed by him/her on the due date then the policy will still remain in force for the grace period that is 30 days in this case.
The policyholder can make a premium payment any time during this grace period even after the due date. If the policyholder does not pay due premium amount even within this time then after the grace period is over the policy lapses and can be only revived as per the rules and regulations and on the grounds of genuine reasons within two years of a policy lapse.
The premiums of the policies remain the same throughout the tenure of the policy, once the policy has been issued to the proposer, and this includes the e term policy as well. The premium amounts can only change due to the service tax regulation that is only the service tax component of the premium amount can change as per government rules and regulations regarding the same.
Once the company issues e term policy to a subscriber, then the subscriber becomes the policyholder, and the company provides him/her cover in any part of the world where the policyholder may have to go for work and other reasons.