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Term insurance is basically a pure protection plan that provides the needful financial assistance to your family in case of need. It will be there to support your family in case of your demise. If the insured does not die in the policy term period then he/she will not be liable for any benefits of the term insurance plan. It is also the cheapest form of life insurance policy. You should go for a high cover sum assured plan as soon as possible. Ideally, you should go for a plan that can provide a cover of almost 15 to 20 times your annual income. And dont forget to increase the same as your income increases.Online Term Insurance Plans
On searching online you will come to know that there are many life insurance companies that deal with the same. The premium of such online insurance policies are 60-70% lower than the other term plans, all other benefits being the same. Online plans can help in saving your time and hard earned money as well. You can compare term insurance plans on the basis of features inclusions and exclusions among others. With the same, it will be quite easier for you to get the best one for yourself.High cover at low premiums
As it is a pure risk term insurance plan, hence there is no investment which can offer quick returns to you. It is a pure protection plan at a lower premium. With the same effective term insurance policy, you will be able to protect your family's financial security for 50 lakhs by paying an annual amount as low as Rs. 6,000 or even lesser. It is the most important form of life insurance that a person should have.Peace of mind
It is the most important financial instrument that a person should carry. But sadly, it is often ignored by people because of the absence of maturity benefits. It is advisable for all earning people who have dependents to buy an adequate form of term insurance to secure the future of your family.Tax Savings
The premiums paid and the payouts made in case of death are tax-free.
Term Insurance Companies
|Term Plans||Entry Age (Min / Max)||Maturity Age||Policy Term||Premium Payment Option||Minimum Sum Assured||Payout Type||Claim settlement ratio (FY 16- 17) as per IRDA|
|LIC’s e-term||18 / 60 Years||75||10-35years||Annual||Rs. 25,00,000 for Aggregate category
Rs. 50,00,000 for Non-smoker category
|Max Life Online Term||18 / 60 Years||70||10-35years||Annual||Rs 25,00,000||Lumpsum & Income Options||96.23%|
|ICICI Prudentail Life Insurance||18 / 60 Years||75||5-40 years||Monthly, Halfyearly,Annual & Single||Subject to minimum premium paid||Lumpsum & Income Options||96.20%|
|HDFC Life Click 2 protect Plus||18 / 60 Years||75||10 – 40 years||Monthly, Quarterly, Semi-Annual, Annual||Rs 25,00,000||Lumpsum & Income Options||95.02%|
|Reliance Online Term||18 / 60 Years||75||10 | 15 | 20 | 25 | 30 | 35 years||Annual||Rs 25,00,000||LumpSum Only||95.01%|
Age: As age increases premium will increase because, with the age, the danger of having vulnerable to life-threatening illnesses and sicknesses are greater in comparison to a person at a younger age. hence, if you purchase a term policy in 30’s the premium you pay might be less than at 40’s.
Gender: Insurance agencies take a ‘life expectancy’ into the account at the same time as calculating the premium. for this reason, some coverage organizations provide a lower premium to ladies in comparison to the men, because as per research ladies are believed to stay longer than guys. additionally, a few agencies offer discounts to ladies on a term plan.
Annual profits: Typically, the sum assured in a term plan is more or less 15-20% of the once a year income of an individual.
Form of the job: Depending on the risk element worried in a task top rate will vary. Higher the risk, higher will be the premium. The top rate for the sum assured will be higher for someone working as a fireman than that of someone operating having a table task.
Smoking: Yes, smoking behavior have an effect on your premium amount. A non-smoker can pay comparatively much less than a person who smokes.
Form of Payout: Relying on the form of payout you pick while shopping for a term policy will affect the premium you pay. You can choose lump sum gain or earnings gain as a payout. actors to maintain in thoughts even as evaluatingClaim Ratios of Indian Term Insurance Companies
|S.no||Life Insurance Companies||Claim Settlement Ratios|
|1||AEGON Life Insurance||95.30%|
|2||Aviva Life Insurance||90.60%|
|3||Bajaj Allianz Life Insurance||91.30%|
|4||Birla Sun Life Insurance||88.45%|
|5||Canara HSBC OBC Life Insurance||92.99%|
|6||DHFL Pramerica Life Insurance||57.19%|
|7||Edelweiss Tokio Life Insurance||52.10%|
|8||Exide Life Insurance||86.10%|
|9||Future Generali India Life Insurance||90.61%|
|10||HDFC Life Insurance||95.02%|
|11||ICICI Prudential Life Insurance||96.20%|
|12||IDBI Federal Life Insurance||84.79%|
|13||IndiaFirst Life Insurance Company Ltd - India First||72.71%|
|14||Life Insurance Corporation of India||98.19%|
|15||Max Newyork Life Insurance||96.23%|
|16||PNB MetLife Insurance||92.90%|
|17||Reliance Life Insurance||95.01%|
|18||Sahara Life Insurance||89.97%|
|19||Shriram Life Insurance||65.66%|
|20||Tata AIA Life Insurance||94.47%|
Whenever you compare, keep in mind to check a claim ratio of the insurance corporation. Always check claim ratio of 1 coverage organization with the alternative. A claim ratio number shows the range of claims settled in the previous year. It is really useful to go together with the insurance corporation having a better claim ratio.Riders
Have a quick evaluate for the ‘Riders’ supplied with the aid of a coverage agency. Riders are the way you widen up your base term plan. There are few common riders presented by means of each insurance organization whilst few groups might also provide additional riders other than the commonly to be had riders.Premium charges
The premium may additionally vary from insurer to insurer, however, this must not be the sole deciding component, although a few coverage organization can also offer the same sum assured at a high premium are claim ratio may be better too. Moreover, you ought to checkout ‘view details’ whilst evaluating the term plan offered through every coverage agency to understand inclusions and exclusions, as few insurance groups provide riders in their base plan itself which may be the reason for better premium.Figuring out Sum assured
generally, the sum assured is 15-20% of the once a year earnings. but you must additionally don't forget different factors earlier than fixing the sum assured. You need to remember: - Debts and inflation - earnings alternative for your absence to take care of your family. As per the thumb rule: Annual income X 10 or 15times + Loans/ Liabilities (If any).
1. Different factors which influence term plan premiums?
Basically, premiums of term insurance policies are affected by a number of factors such as the applicant’s age, family’s medical history, own health, weight, lifestyle habits like smoking, alcohol consumption, gender, etc.
2. Can someone get a loan on term insurance plans?
No, policyholders are not eligible for loans as the policy do not offer any maturity benefits nor does it attain surrender value.
3. What happens if someone change country of residence a few years after choosing the plan?
The policy will remain active, even when you relocate from India. However, ensure that you keep your insurer informed about such a change.
4. Is there any advantage in buying a term insurance plan at a young age?
Generally, term insurance plans do not cost high for people who in an early stage of their life. Therefore, buying a term plan at a young age is definitely beneficial.
5. Can someone buy term insurance online?
Yes, there are many insurance companies that carry online presence and offer customers the facility to not only purchase but also renew their term insurance policies online.