Top 5 Best Online Term Insurance Plans in India in 2017

We have around 24 Life Insurance Companies and as of now all insurance companies offer online term insurance plans. Hence, it is hard to shortlist the BEST among them. This post will help you in shortlisting the Top 5 Best Online Term Insurance Plans in India in 2017.

What is the meaning of Term Insurance?

Term Insurance is the type of Life Insurance. If death occurs of the policyholder during the policy period, then his/her nominee will receive the Sum Assured selected. If policyholder survives till the end of the policy period, then he/she will not receive any maturity amount.

This is the reason, these policies cost you very less and cover a large amount of life risk. This is the PURE LIFE INSURANCE. Hence, anyone who have financial dependents must buy this product immediately.

What are the advantages of online Term Insurance Plans?

Nowadays all Life Insurance companies offer you online term insurance plans. The advantages of online term plans are as below.

# It is convenient to buy as with the click of a button you can buy it.

# As there will not be any middlemen involved, the price is cheap than offline term insurance plans.

# You fill the proposal form on your own. Hence, an error of margin is LESS.

# Undue influence by agents is not there.

# Along with the discount of DIRECT purchase, if you buy through online then now life insurance companies will give you 8% on your FIRST YEAR PREMIUM. This is to promote cashless online transactions.

Top 5 Best Online Term Insurance Plans in India in 2017

Now let us shortlist the Top 5 Best Online Term Insurance Plans in India in 2017. How I selected the Top 5 Best Online Term Insurance Plans in India in 2017?

# How old are the companies

# Claim Settlement Ratio

# Premium Cost

# Plan Features.

How old are our Life Insurance Companies?

Below is the chart which explains the age of all life insurance companies. I am comfortable with the company which is at least 10 years old.

Age of Life Insurance Companies

You notice that among 24 Life Insurance Companies, only 16 companies completed 10 years or more. Therefore, my target is among these 16 companies only.

The reason behind this criteria is that Life Insurance is a long-term contract between you and insurance company. Hence, the older the company the more comfortable I feel.

IRDA Claim Settlement Ratio for 2015-16

I have already written a detailed post on this at “IRDA Claim Settlement Ratio 2015-16 | Best Life Insurance Company in 2017“.

However, for the better understanding purpose, I am putting the data again in this post.

IRDA Claim Settlement Ratio 2015-16

Here, you notice that I marked with green colour who have claim settlement ratio of above 90%. I marked few companies in yellow whose claim settlement ratio is between 89% to 80%. I marked few companies in red whose claim settlement ratio is below 80%.

Now in green, there are around 12 companies.

The common companies between the age of companies and claim settlement ratio are as below.

LIC, ICICI, HDFC, SBI, Bajaj, Reliance, Max Life, Sahara, and Tata.  Among these 9 companies, I have to shortlist the Top 5 Best Online Term Insurance Plans in India in 2017.

Premium Cost of Term Insurance Plans

Now I will consider an example of a person whose age is 30 years, Term of Plan as 30 years, Non-Smoker and healthy, Sum Assured Rs.1 Cr and yearly premium payment. I selected plain vanilla product without any riders or further features.

Among the 9 companies, I found that Sahara not offers online term plan. In Tata Life, I not found a plan which is ONLINE, Sum Assured Rs.1 Cr and simple plain vanilla plan. Hence, I discarded those two companies. Now remained are only 7 companies.

The table looks like below.

Term Insurance Premiums of Best Term Insurance Plans

You noticed that Max Life seems cheapest and followed by Reliance and ICICI. The costliest among these is LIC.

Now let us look at the plan features and decide which are the Top 5 Best Online Term Insurance Plans in India in 2017.

Plan Features of Best Online Term Insurance Plans in India in 2017

You notice that there is no positive point to decide LIC. However, because of oldest company and trust it created among Indians, I will shortlist the final Top 5 Best Online Term Insurance Plans in India in 2017 as below.

  1. LIC’s eTerm
  2. ICICI Pru iProtect Smart
  3. HDFC Click2Protect Plus
  4. SBI Life eShield
  5. Max Life Online Term Plan.

Remember, there is no specific reasons to reject another two companies from the list. But considering the reliability and strong data, I shortlisted these 5 products.

Few points to consider while buying term insurance

# Never rely on Claim Settlement Ratio

Claim Settlement Ratio is raw data. This data will not give you enough picture of what type of products the insurance companies settled. Hence, relying too much on this single data and selecting a product is not a good idea.

# Quantum of Life Cover

Ideally one must have at least 15-20 times of your yearly income. This is the basic calculation.

# Fill the data properly

Sharing data especially materialistic information must be accurate. If you are unable to understand anything, then immediately contact Life Insurer for the help. Understand the questions and fill only when you know what you are filling.

# Never allow someone to take over your decision

Never budge on the decision which is against your wish. If you are fully comfortable, then only go ahead and buy.

# Term of the policy

Ideally, it should be up to your retirement age. Because you retire when you are financially free. Hence, Life Insurance is not required during your retirement age.

# Splitting of Term Insurance

There are few who are apprehensive of relying on a single insurer. Hence, they try to split among few. But in reality, there is no logic in splitting. What is the guarantee that the all insurer will accept or reject the claim?

# Stay away from riders

Never combine Life Insurance with General Insurance requirement. You will get better-featured covers from general insurers regarding accidental and critical illness covers. Hence, simply avoid riders.

# Never heed the aggregators choice

Nowadays there are so many online aggregators. You may not know that they act exactly like insurance agents. Hence, never rely on their claim. Do your own research. If you are satisfied, then only go ahead and buy. Refer my post about the same “Beware of Insurance Comparison portals in India“.

# Know about Sec.45 of Insurance Act

After the recent clarification about Sec.45 of Insurance Act, the customer became king. It states “No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later.”

Refer the complete post at “Term Insurance-Claim Settlement Ratio no more a big criteria“.

# Review your life insurance cover

Buying Life Insurance of Rs.1 Cr or Rs.3 Cr is not a one-time affair. You must review your life insurance requirement at least once in the 5 years. If required, then you must increase the sum assured.

# Be cautious with premium payment

In case of term insurance you have to be very cautious when it comes to premium payment. It is always better to opt for yearly premium payment and also if possible make it automated by the way of ECS. If policy lapses due to your negligiancy, then you have to undergo medical tests and all stuffs once again. If there are any health issues, then insurer may reject to renew the policy.

Also, during buying new policy insurance companies bear the cost of medical examination. However, during the renwal of the same, you have to bear the cost. Hence, becareful with premium payment of term insruance.

509 Comments

  1. I shortlisted two companies. Icici and Aegon. Please suggest me which will be better. As claim ratio almost same.
    Premium is low in Aegon
    It’s all about trustworthy company. Should I trust Aegon?

    Reply
    • Dear Jitender,
      For me both are equal. Hence, if premium is cheaper in Aegon, then go ahead with that company.

      Reply
  2. Hi Basu,
    I have Rs 50/- lakh term plan from Max life. Now, I want to increase to 1 Cr. If I will take additional 50/- lakh policy then total premium for both policy will be around 9100/-
    If I will not renew my current policy and take new 1cr plan then premium will be 8100/-.
    which option should be better ?

    Reply
    • Dear Kumar,
      Buy the one and cancel the existing one after the issuance of first policy.

      Reply
  3. Dear Sir,

    First of all thanks for the explanation regarding term insurance.

    I’m 28 yrs old and having a 4 yrs old daughter. in my family I’m the one earning member and earning ~42K in hand per month(where I invest ~ 55k annually in LIC/SIP and Sukanya yojna).

    From the above data, I shortlisted Two companies as shown below:

    1. HDFC Click2Protect Plus
    2. Max Life Online Term Plan.

    Please suggest if I should opt for term plan. If yes, then what are the best plan I should select with lesser premium.

    Best Regards,
    Ravi

    Reply
    • Dear Ravi,
      You claim to be you are the sole earner of the family. Hence, you must buy Term Life Insurance. Regarding your choices, you can choose anyone between the two.

      Reply
  4. i have paid online payment for termplan but forms r not filled but now i want to change sumassured before policy generates how can i .
    if i dnt fill the online form can i get my money bk .plz reply soon

    Reply
    • Sirn- I’m not sure how you directly paid premium before filling the proposal forms. If want to change sum assured now, then contact the company immediately.

      Reply
      • forms are not completely filled online firms ask for payment in between the procedure of form filling .

        Reply
  5. as HUF is considered as a entity , to have sb account, have tax planning under 80C ,file returns etc. which INSURANCE COMPANY in India offers ONLINE TERM PLAN for HUF( as proposer) either to be taken on life of Karta or coparcener’s /member’s life – mob No.9561397999

    Reply
  6. Dear Sir,
    My Name is Manoj & My age is 56 years and i want to buy term plan of HDFC life click to protect plan but premium is too high for me so please suggest Plan name or plan tenure for me …….

    Reply
    • Manoj-It is obvious that premium will be high due to your age.

      Reply
      • Thank Sir, But in Hdfc Premium is 60 Thousand And Max life 42 Thousand so can i go with max or hdfc.

        Please suggest me the tenure of the policy……

        Reply
  7. Sir, I am 38 year old and doing business.
    Kotak life offers me 75 Lac term insurance upto 75 years with 100% of sum assured accidentel rider.
    Yearly Primium is 13275+4425 (for rider) =17700
    May I go with them?
    I am confused, Please guide me.

    Reply
    • Hitesh-Do you need life insurance up to the age of 75 years?

      Reply
      • No sir
        Upto 60 year is enough for me.
        But Kotak life doesn’t gave me 60 years.
        But Primium is competitive.

        Reply
      • More the term ( in years ) less is the premium , so go for it

        Reply
        • Shantanu-Check your facts, in case of term life insurance it is reverse. In regular endowment or money back plans, more the term less the premium applies. However, in case of term life insurance more the term more the premium.

          Reply
  8. Thnk u so much for ur valuable suggestions. Infact there is some issues like waiver of premium in both . In icici it is inbuilt and in Max it is not there…

    Reply
  9. Dear sir, I have shortlisted two companies
    1. Max Life
    2. ICIpru life
    Please suggest me which one should I buy my age is 31 years. Max premium is about 2000 less than ICICI Pru. Please suggest bor best.

    Reply
    • Jamil-I does not find any difference. If you are comfortable with Max and it’s affordability, then FIRST buy it.

      Reply
    • If you are going for pure term plan , then MAXIMUM period is to be chosen , (irrespective of premium amount) vis a vis let there be chances of your nominee going to INSURER Co. for CLAIM,
      HDFC LIFE, IDBI federal , TATA AIA gives only 30 years, AVIVA , ICICPRU, MAX and others gives 35 years, it is only PNB metlfe gives term plan upto age 80 years- irrespective of years , that means a person (as named / cited above )=31 years , can go for TERM PLAN INSURANCE of period 49 years that is upto age 80 years , as longevity has been thought of by PNB metlife , premium amount of few hundred here and there would / should not make IMPROPER DECISION of TAKING a LIFE INSURANCE

      Reply
      • Shantanu-Do you need Life Insurance during your retirement??

        Reply
        • No one needs life insurance on his own , it is your dependents, their livelihood etc loved ones for whom ONE is toiling , so once you are (LA) is retired , that means inflow of income is less , or not worth, at the same time , if something unfortunate happens , it is your those loved ones , for whom INSURANCE was taken (normal advocacy)

          Reply
          • Shantanu-When you retire from your working life? Is it when you have financial freedom or with financial hurdle?

            Reply
            • No Offenses, by commenting on the captioned subject :- Life is -was never to be viewed as financial freedom or financial hurdle , Term Plan Insurance has to be seen as financial cushioning to ones’s dear ones, (after his / her demise)may be dependent or not is a secondary issue

              Reply
              • Term Plan Insurance has to be seen MORE from EMOTIONAL ATTACHMENT, as TERM PLAN works more on principles of Earlene Insurance, if you -LA is THERE on the renewal day , your paid up premium has gone with Insurance company (as mortality charges may be 0.3%)

                Reply
                • Shantanu-So you buy term insurance based on EMOTIONAL ATTACHMENT but not to replace the financial value of YOUR’s? Just can you calculate the value of Rs.1 Cr or Rs.5 Cr after 30 years in today’s term? For how many days your dependents can survive?

                  Reply
        • If you die , your nominee will need the money , so why not ? do u need to pay premium after retirement , yes, but will u be able to afford as during retirement amount u can afford to give may be lesser ? Just trying to understand this …and decide for myself as well. Looking for ur comments pls.

          Reply
          • Dear Sankar,
            Do you really need insurance beyond RETIREMENT? I am posing this question again. Think time value of money, cost and also the meaning of retirement before you respond.

            Reply
      • hi,

        I have taken PNB met life plan 3 months back.. now nirav modi incident happened what to do .. shall i continue or close.

        Reply
  10. being 20yrs old with ITR of 10L each,I had applied online through agent policybazar with payment Rs16442 for TERM PLAN INSURANCE of PNB Met life term 62 years of 1 Cr +add CI=20L +ADB=10L+ PNBsuraksha=10Ldisbailty benefit=10L, which was approved m but later on now pnbmetlife is tweaking its apparoved proposal with lessening SA from1 Cr to 25lacs , How to tackle this situation ? [email protected]

    Reply
  11. Hi Basunivesh,

    Thanks for the excellent information you have provided here.
    I have a question regarding the HDFC life click2protect 3D Plus wherein
    “On survival of policy term, you will receive total premiums paid as Sum Assured on maturity” is there.
    Total Premiums paid = Annualised Premium (Excluding Taxes and levies as applicable) ? number of years (or part thereof) for which premiums have been paid, is in the T&C.
    Will this be a better take as compared to the one where we won’t receive anything IF we survive?

    Thank you

    Reply
    • Ayush-If you compare the premium, then the answer is there itself.

      Reply
  12. Hello basavaraj ji,
    Should we buy term plan, only for earning member or we should buy it for whole family
    In my family we are 4 members out which three are earning hence should we buy term insurance for our mother (house wife) as well as for three of us.

    Reply
    • Bhargav-The concept of Life Insurance is to compensate the financial loss to the FINANCIAL dependents of the insured. Hence, do you think non earning member of family actually need term life insurance?

      Reply
      • Yes, I think so , unless I misunderstood. It is members who are not earning who are deoendant on the earning members So they need it . Isnt it ? Am i Incorrect in my understanding pls correct if Iam wrong .

        Reply
        • Dear Sankar,
          You will retire from your working life only when you are financially free right? When you are financially free, then do you need INSURANCE?

          Reply
  13. Sir..how many term plan can I buy in a year…?

    Reply
    • Kiran-There are no such limits. But the more number of term plans means the more for your dependents when you are not here.

      Reply
      • Since my annual income is 4lac.. I think I will get a term insurance of 15 to 20 lac… But I need a term insurance of 50- 60 lac… So can I buy 3 term insurance within 1 year,i.e , 2018… Or I have to wait every 2 year to buy other one… Which is a case in general insurance like lIC

        Reply
        • Kiran-Who said that you are eligible for Rs.15-20 Lakh term insurance ONLY?

          Reply
  14. Thanks a lot for your guidance.You inspired us by your knowledge I feel relax now thanks again

    Reply
  15. Dear Sir recentlyI I hav bought a online term plan policy of HDFC and I have given clarification by sending 3 email of Praposal form’s some questions. Sir is it right or to buy again by returning or surrendering it because it’s a free look period

    Reply
      • Dear Sir I clear it, I sent them 3 email in the first mail I clear them about my existing policy in the Praposal form their team member told me note only about existing term insurance but except I have a LIC policy so i mention it in email . In the second email I mentioned about my blood test/urine test and my normal back pain because I had noted no in the Praposal form and clear them only to donate blood and at the occasion of first term insurance plan medical test which was also HDFC. And in third email I mentioned about my sister’s disease and they replied me it is not mandatory. So I am asking you that these email communication will help me or create any problem at the time of claim. So guide me what I do? Close it or continue it

        Reply
        • Nilesh-You disclosed all facts properly. Hence, you no need to worry. But make sure that you forward these emails to your nominee. Because claim arrives when you are not here.

          Reply
  16. Sir I wish to take term plan which cover my wife term plan also.which will be the best.or what is the option.

    Reply
  17. Dear Sir recentlyI have bought a term plan of 1 cr. Everything I disclose properly but there was a mistake by me that I could not disclosed disease of my sister( 43 year old ) that she is suffering by thyroid. Sir guide me about it. It was not my intention to hide it but it happened so what I do now?

    Reply
    • Nilesh-Write an email to an insurance company by disclosing this.

      Reply
      • Thanks Sir I will write it but will it make me any problem in future?

        Reply
  18. Hi Sir,

    Have been reading your articles for the last 3 years. Thank you so much for all the content that you share.

    “Now let us look at the plan features and decide which are the Top 5 Best Online Term Insurance Plans in India in 2017.”
    We have a table beneath the above line in the article which has a column named “Minimum Term”. May you please elaborate on the same?

    1) Does it mean like “How long your policy continues for the minimum time”?

    2) I hope it doesn’t mean something like the policy comes into effect after the Minimum Term 😛

    3) Finally if you were I, which one would you choose between ICICI Pru iProtect Smart and Max Life Online Term Plan (SA:1cr, Current age: 30, Maximum Term: 40 )?

    Thank you.

    Regards,
    Nithin.

    Reply
    • Nithin-1) YES.
      3) NONE. Because I personally not mention or share any specific company.

      Reply
  19. Sir,
    I wud like to know how much will be the cost of the medical test to be borne by us until the proposal is accepted…?

    Reply
    • Kiran-It depends on Insurance Company. Please check with them.

      Reply
  20. Hi,
    I am a single parent with a daughter and looking for a simple term plan with not high premiums. Would it be advisable to opt for a SA of 1CR or 75 L. I am 36 year old and looking for a period of 24 years policy. Pls advice which plan would suit my need.

    Reply
    • Pranitha-My selections are already mentioned in above post. You can choose the one which can be affordable for you.

      Reply
  21. Hello Basavaraj,

    I have one query regarding the term plan.
    How does the insurance company find out if the ‘smoker/occasional smoker’ person is being applying for a ‘non-smoker’ term plan? This can happen as the premium is low for ‘non-smoker’ category.
    (Usually the insurance company performs medical test such as blood test, urine test etc., but is it possible to find it out with these tests?)

    Is there a possibility that they accept the application as it is and rejects the claim in future because of this reason of false information?

    Best Regards,
    Ajit

    Reply
    • Ajit-With medical test they can easily find out whether you are smoker or non-smoker (based on nicotine presence).

      Reply
      • OK, Thanks for this information Basavaraj!

        In such case, if they found that false application is being made (smoker applying as a non-smoker) then, is there a possibility that they accept the application as it is and rejects the claim in future because of this reason of false information?

        BR,
        Ajit

        Reply
        • Ajit-They will not accept as a non-smoker if they found results as a smoker. Instead, they raise the premium and share the reasons for hiked premium. If even after results also, they accepted, then think that IT IS A DANGER SIGN FOR YOU.

          Reply
          • OK, thanks a lot!
            Have a nice day.

            BR,
            Ajit

            Reply
  22. I am Karta of HUF , with age 20 years -bachelor taking education and doing business ( income Rs.5 lacs as per ITR)for tax planning -80C of HUF, as proposer is HUF and LA is myself as Karta of HUF want to take TERM PLAN with increase in SA with satges of Life like marraige , and birth of Child
    which is best life insurance company that can give TERM PLAN INSURANCE with CI+ADB +terminal illnes cover ( costly premium will also do) upto age +80 years

    i have been informed that only PNB metlife is that only so?

    Reply
    • SA should be around >+ 1 cr

      Reply
    • Shantanu-Do you need riders with Term Life Insurance? Do you need life risk coverage up to 80 years of age?

      Reply
  23. First of all, thank you so much for sharing your valuable thoughts. It really helps us. I am looking for a term plan of 1Cr and can you please suggest me the best one from your list (I am little concerned about the premium). I am still little confused which one to choose from the top 5 listed above. Your suggestions is always welcome. Thanks

    Reply
  24. Hi I’m single parent with 5yr kid.amd annual inc of 15lacs..can u suggest a term plan and accidental/ critical illness plan? Will u advise to take a child policy too..?? Thanks in advance..

    Reply
    • BM-My choices are already listed above (Term Insurance). Regarding accidental and critical illness plans, please refer my old posts. You no need to buy child plans or any product which combines insurance with investment.

      Reply
  25. Respected Sir,

    I am a single parent and my child is 5 year of age who is dependent on me.

    I have taken two term life insurance policies 1. LIC – Amulya Jiwan – Plan 190, sum assured of 25L and premuim is Rs.8200/ year (Brought from agent cum relative)
    Second I have taken last year is HDFC Life insurance, Click 2 Protect Plus along with riders coverage is 2.38Cr, the premuim is 26,022/year.

    I have no financial support from my family or anyone else other than my own job 🙂

    Could you please help me if these are fine or should I go with any other term policy? Appriciate a response. Thanks for your assisance in advance.

    Reply
    • RK-You have done wonderful decisions. But I am not sure why you went with the OFFLINE plan of LIC. Whether this much is sufficient or not depends on your financial life. Hence, I can’t comment on that.

      Reply
  26. Hello Bashu,

    Thanks for the Valuable information you have based. As usual your information is factual and very easy to understand. I got a valuable help from your post regarding LIC policy too where I got to know about How I lost my money.

    Related to Term Insurance, I have some queries. Please help me out as I really want to by one.

    1. Death due to Terrorist Attack, Gods Act(Eg. Earth Quake), Riots, Invasion by Enemy Country is covered in any of the Term Insurance Policy?
    2. As you mentioned above that Addons should not be taken and Pure vanilla Term Plan should be Taken.
    I need to know how the separate insurance plans are beneficial then the Add on present with any Term Plan. For Eg. Critical Illness, Accidental Death ?

    Reply
    • Vikas-1) These specific reasons have to be clarified by respective insurance companies before proceeding.
      2) There are certain feature restrictions like benefits and sum insured if you go as a rider. Hence, I suggested to go for a separate insurance like accidental or critical illness.

      Reply
      • Hi Basavaraj,

        1. Can you please tell me about few of the Good Critical illness insurance plans.

        2. I had a word with 3 insurance companies from the List They have mentioned these things in Exemptions but they say on call all types of deaths are covered except suicide with in 1 year.

        Reply
  27. Hello Sir, I would like to have your opinion regarding my policy.My husband (age 32) and I (27) holding max life monthly advantage plan with the annual premium of 70K each for the past two years. Now I am doubting my decision of taking this policy with high premium and less cover and thinking of switching to some term plan from the one mentioned above. What will be the right way to terminate this policy with min loss of money which I have already invested in it.Please advice.

    Reply
    • Shweta-This is the typical endowment plan. You can come out of this plan after 3 years completion. However, you will receive of what you paid for 3 years. Such products are hard to come out easily.

      Reply
      • So after terminating my policy after paying 3rd premium what will be the amount i will be receiving ? Can you help me with that. Thank you

        Reply
  28. Sir,

    Is the Death caused by earthquake, flood or due to any other act of god covered under Accidental Death benifit rider ?

    Reply
    • Jewel-In general YES. But better to cross check with the insurance company.

      Reply
  29. Hello Sir,

    Currently I have a Kotak Preferred Term Plan for a sum of 25 lakhs and I have started this policy from 2011. Now I am looking for a coverage of 1 crore. Should I take a new policy for 75 lakhs and continue existing or should I take a new policy for 1 crore and close the existing. Current premium i am paying for 25 lakhs is 6000 and seems i don’t have an option to increase the sum assured for my existing policy. Please suggest.

    Reply
    • Suhas-There is no such option in Life Inusrance to enhance the existing insurance coverage. You have to buy newly whenever you feel the current insurance is not sufficient. Check the difference of premium between Rs.1 Cr to Rs.75 lakh. If it is less than Rs.6,000, then go ahead for Rs.1 Cr. Otherwise, continue the existing and buy Rs.75 lakh.

      Reply
  30. Dear sir, I want to buy a term insurance. When I apply for it, medical tests will be done. Who will bear the expenses of these tests? Me or insurer? In which case they can refuse? If any problem detected in reports, how will this affect claim in future?

    Reply
    • Dimple-During buying of term life insurance, the cost of medical examination be bear by insurance companies. However, due to any reason, you not accepted their policy or they rejected your proposal, then you have to bear the cost. If any issues they found in report and still they accepted it, then it is their risk but not your’s.

      Reply
  31. Hi, I checked some online policy providers and came to know that they do not provide term insurance for pensioner senior citizens. Why is this so. ?

    Reply
      • Still they do provide for self employed senior citizen, does it mean they do not propose any risk even if they earn lesser than a pensioner?

        Reply
        • Guru-If they provide also, it is based on risk profile of proposer, which we can’t question.

          Reply
  32. Sir, I am a Government employee.My salary is around 10 lakh. Which plan should I choose ? Thanks

    Reply
  33. Dear Basu recently indiafirst along with star health launched policy for term and health insurance.already I’m having term policy with lic of India and health with apollomunich is there any advantage in closing those policies and migrating to new one or if any possibility to port the policy to indiafirst.can u review those combo policies

    Reply
  34. Hello Sir, I bought hdfc term plan, in the policy document , in the illustration of my plan is given , in this illustration total sum assured is given as 70 lakh whether actually it is 75 lakh . In other details 75 lakh is shown but not in the illustration. I sent email pointing out the problem and requesting for correct policy document. But they have not given reply still. Now the question is, wrong illustration should create problem in future? , If they don’t reply of mail , what action should I take?

    Reply
    • Biplab-Ignore ILLUSTRATION but check the policy details like what they mentioned about Sum Assured in this policy.

      Reply
  35. In last December I opted for ICICI pru term insurance for 1 crore. Before that, I was also engaged with HDFC to buy their term plan. But they kept asking for same set of documents which I had provided. Finally fed up I also underwent medical for ICICI. Now while declaring any other policy I couldn’t write about the two. However, HDFC approved my request and issued the policy. Simultaneously within a span of 3 days, ICICI also issued me a policy. Now I have 2 policies but I couldn’t inform any of them about other policy as on the date of application I didn’t have any policy. Will it cause a problem? If yes, how to remedy it now, if you could enlighten me, please.

    Reply
  36. Dear sir,
    I recently opted for term insurance policy and applied for same. Company has directed me for some routine tests(at their designated lab and physician only). I m having borderline elevated cholesterol and triglyceride since 1.5 years and i have medical reports of same with me. but when company has done same report it turns out to be normal(thats impossible, because i m doctor i know that without any diet modification or treatment, it cant be normal) and i also got information that the report was falsified and get to the normal.
    Can it affect my claim at the time of death, by saying by company that u already knew about ur elevated cholesterol(as i have done many reports at other place before taking policy), and u didnt disclose it at that time.
    PLZ guide me whether i should continue or not??

    Reply
    • Nirav-They may not question especially about this. Because they issued the policy based on the report which claimed that you don’t have such health issue. Hence, you no need to worry. Instead, for safety purpose, I suggest you to have the copy of their medical report.

      Reply
      • Thank you very much for your guidance

        Reply
  37. Hii..My name is Nabakishor..I am 29 years old(01/02/1989). I want to buy a Term Insurance plan which will cover death(accidental+natural),physical disabilities and critical illness.
    My yearly income 5lakhs.
    Please tell me what amount of Term should to buy and which will be the best Term insurance company??

    Reply
  38. Hi,
    I am a 44 year old single female looking for a simple term life insurance. I am the sole earner and have 1 ten year old child. I had a term life insurance for 1.3 cr but unfortunately i let the policy lapse ( big mistake not checking emails and not updating phn number) . Please suggest a cheap plan for me.

    Thanks in advance

    Reply
    • Uma-Sad to hear. Don’t go ONLY with cheap. Instead, check with the above companies and let me know if you have any doubts.

      Reply
  39. Hi Basavaraj,

    My age is 35 years and I don’t have any insurance and have a housing loan for tax saving. I have a kid of 3 years and now I have a confusion whether go with Life insurance or Child Plan. I can invest 5000 per month. Please help me out which one to take and which company’s policy as I’m not aware of any policies.

    Thanks,
    Pavan.

    Reply
    • Pavan-Housing LOAN for TAX SAVING? Can you explain how you save tax by going for a loan? Whether YOU need an INSURANCE or your KID? Never combine insurance with investment.

      Reply
      • Thanks for the quick response. I mean I don’t want insurance for tax saving purpose because I already have a housing loan to minimize the tax. My confusion is just to get life insurance as I don’t have any yet or going for child plan which will help my kid further. I feel both have similar intentions to help the family with or with out me. Sorry if I’m wrong. For this which one do I need to go and which policy?

        Reply
        • Pavan-First come out of that misconception that you must keep home loan for the sake of TAX SAVING. Regarding your kid’s investment, buy a pure life insurance called term life insurance and start investing based on time horizon.

          Reply
  40. Hi,

    I am planning to buy your online term plan where the coverage is till 99 years or atleast till 90 for 3 crore coverage . I have shortlisted Aegon which provides coverage till 80 and PNB metlife which provides till 95 .I know they dont match the criteria you gave but considering they are IRDA approved and the cheapest among the lot i shortlisted those

    My Current Age is 35 DOB Dec 1981
    I have undergone Angioplasty in Dec 2013

    Basis the condition I have are there any term policies which you suggest I buy . Would the company reject my claim and application basis my medical condition . What can I do to ensure non rejection and limited increase in my premium Pls advise how do increase my cover considering all off the above

    Reply
    • Amit-Do you think life insurance required up to 99 years of age?

      Reply
      • Can u share which plan to apply basis my query
        Let’s not take age for the current query ..basis health condition which policy would u suggest

        Reply
        • Amit-If we ignore age, health condition will be verified during issuing of the policy itself. Then what is your concern here?

          Reply
  41. hello. I am an NRI and looking to get a pure term insurance for ~8cr. While i can get this from say HDFC 3D Life which offers a unique waiver of premium on critical illness also (not provided by any other so that’s a nice option) , I am thinking if splitting it into 5 + 2 + 1cr to three insurance companies makes sense.

    I am thinking it this way for the following reasons, would appreciate your thoughts on it.

    1. In case i need less protection in later part of life (as assets grow enough to take of care of my and my kids’ liabilities) , i can let one of them cease.
    2. Some providers may take more than others to clear the claim so will be helpful in diversification. Agree that my nominee will have to go to three companies to do instead of one.
    3. Shortlisted for HDFC for 5, Max for 2 and ICICI for 1cr (is more expensive) – in your view, is this the right mix? is ICICI claim much faster than Max in your opinion?

    Lastly, I live in Hong Kong and if I take up Hong Kong citizenship later, any affect to my policy?

    Reply
    • Gaurav-1) If you feel in future your life insurance need decreases surely, then you can split as you planned.
      2) NO LOGIC.
      3) There is nothing wrong and correct in diversification. But in case you are not here, you make your dependents life horrible by approaching so many insurers for claim.
      4) Check with respective insurer.

      Reply
  42. Sir my anual income is 5.50 Lakhs. I taken 1 Cr. Trem insurance. Can i taken anther cheaped primium’s 50 Lakhs trem insurance.

    Reply
    • Tushar-It is purely your decision to go for Rs.1 Cr or another Rs.50 Lakh Term Life Insurance. But also insurance companies issue the policy based on your income.

      Reply
  43. Hi Basu

    The insurer can still deny the claim after 3 years if the company proves that the material facts were hidden to take the advantage of insurance.

    Secondly the proposer should fill in their health details, occupation and other material facts properly. In some cases the insurance companies can increase the premium but it will help you to get the claim easily. Most of people try to hide their health issue to avoid any hassles but it creates problems in future

    Reply
      • sir, 3 yrs before i have applied for a term policy in a company , and they had a medical test,and asked me for a loader as per their letter i have elevated level of sugar. I went to a renowned pathology i.e. roy & trevdi but they did not find like this. But I did not buy the policy. Now my query is that
        (1 ) If I go to any other co. after three yrs. should i inform this to the insurer , if i don,t can they find any thing wrong because,i have the same phone no. same email id, same pan no.
        (2) if they themselves find me ok at the time of their chekup , what is the meaning of my information provided by me.
        (3) Is there any time period after which insurer can not blame for any misinformation to the insured or his nominee, and bound to pay all the benefits to the nominee without placing any blame to the insured?

        Reply
        • Mithai-1) No need to inform.
          2) As I said, it is not required for you to inform the new insurance company that 3 years back you applied for life insurance.
          3) If you HIDE anything which is vital for life insurance, then they can deny at any point of time. Hence, be open in disclosing all facts properly.

          Reply
  44. R/ Sir , i taken trem insurance in oct 2017. that time in proposal from i given no medical histry of my family member. But after company issuied me policy then after 16 Days my father have paralisis stoke . Now it is necessary to give this infarmation to insurance company.

    Reply
  45. Dear sir,

    I am confused between ICICI iprotect and HDFC. On the basis of claim settlement ratio, HDFC pips ICICI marginally.

    Can I go for HDFC term insurance.

    As per the above discussion, I have made up my mind to go for a vanilla level term insurance policy without any riders.

    Please state what points should I look up to in my vanilla insurance term policy.

    Reply
    • A few I think of is …..
      Premium of course
      Terminal illness cover

      Anything else??

      Reply
  46. Dear Mr. Basavraj,
    I am 42 years old. I had taken ICICI I-care RP option I Term Insurance plan for Rs 65 lakhs and 25 years policy term. I had taken this policy online in 2013. I pay my annual premium regularly till now.
    When I took my policy I had done all declarations like smoking, social drinker, blood pressure etc. ICICI issued me the policy without any medical tests. I have a mail confirmation from them that medical test is not required.
    Now, in the recent past I have been diagnosed with CAD I.e. Coronary Artery Disease. I have given up smoking completely now.
    My question is do I need to declare my recent diagnosed disease to ICICI and continue with the same plan OR shall I stop this plan and go for a new plan. Pls advice.

    Reply
    • Samrat-You no need to inform anything which occurs after the issue of the policy. Hence, don’t worry and continue.

      Reply
      • Hello Mr. Basavaraj,

        As I have already told you earlier that I have ICICI I-care RP option I Term Insurance plan for Rs 65 lakhs and 25 years policy term which I had taken online in 2013. I want to know is there any other better plan in the market now as compared to the plan I had taken in 2013 and if yes, how do I stop this current plan and switch over to the new one.
        Pls advice.

        Thanks

        Reply
        • Samrat-There may be and there are. But the question is, you have to check the premium difference and also whether they issue NOW or not. Based on that take a call and once you get the new policy in your hand, then go for cancellation of existing one. Regarding plans, refer my above post.

          Reply
  47. Is SBI Eshield covers Critical Illness? is this only for Accident benefit?
    permanent disability covers this?

    please suggest us Difference between ICICI and SBI

    suggest us Term plan for Accident benefit, Critical illness, permanent disability

    Reply
    • Laxmi-Never combine Term Life Insurance with critical illness and accidental insurance. Buy all these separately.

      Reply
  48. I am senthil 38 years old would like to opt for icici pure term insurance, Please suggest whether I should opt for maximum age protection of 75 years or as you mentioned in your post of retirement age of 60 can you detail with example

    Reply
    • Senthil-Go ahead but with age restriction of up to your retirement age.

      Reply
      • Apart from retirement benefits, the insured amount will add more benefits to the family in absence of the insured person above retirement age, does it not worthy and what is theory behind risk protection only up to retirement age
        And what would be the difference between paying premium from monthly to annually
        Could you please explain in detail

        Reply
        • Senthil-When you retire from your working life? When you are financially freedom right? When you have financial freedom, then why to go for Life Insurance? Also, what will be the today’s Rs.1-2 Cr value when you retire??

          Reply
          • Does it make any difference from annual premium payment to monthly basis. And how does its always better to opt for yearly premium payment
            The today’s 1-2 Cr value will be less by the time of my retirement but still it will some value to the family and is there any wrong to earn more benefit when we are financially free, Could you please explain me in detail
            And what is your idea on premium payments only up to retirement age and still the policy continues for age of 75 so that if the I am no more at the age of 70 and my family will get the benefit.

            Reply
            • Senthil-The risk of forgetting or missing the premium payment is high when you opt for monthly. If you miss one premium, then the policy is considered as lapsed. To revive it, you have to again undergo for medical examination (on your own cost), then underwriter will analyze and then finally it will get reviewed. Because it is not a normal plan with less sum assured.

              “The today’s 1-2 Cr value will be less by the time of my retirement but still it will some value to the family and is there any wrong to earn more benefit when we are financially free, Could you please explain me in detail”-YOUR WISH and YOUR MONEY. But just check the value when you retire and the household expenses. Then take a call.

              “And what is your idea on premium payments only up to retirement age and still the policy continues for age of 75 so that if the I am no more at the age of 70 and my family will get the benefit.”-Again it is your wish. Treat LIFE INSURANCE or any insurance as if RISK MITIGATING PRODUCT. Insurance companies wisely design and set premium in such a way that only loss can be compensated (especially in case of pure risk plans but not endowment or money back plans).

              Reply
  49. Dear sir ,aegoen online term plan kaisa hai?company reputated hai ya nahi??

    Reply
  50. Sir,
    I am 33 year old I want purchase term insurance plan with PNB metlife 75lacs for term -66 is it ok?? Presently it’s claim settlement ratio is 91??. Plz help

    Reply
  51. My age is 27 years . I actually want to buy sbi eshield term insurance , but life cover term is only for maximum 30 years. I want minimum life cover for 35 years . ICICI, HDFC , MAX being are private organisation , are they really reliable ? Waiting for your reply.

    Reply
    • Biplab-SBI Bank is different than SBI Life and is equal like private players.

      Reply
      • Thanks Sir, one question, only after applying for term insurance do agents contact with me?
        Previously I thought about PLI , but after reading your article and several research I changed my mind , and decided to do term insurance and mutual fund. I earn 57k per month as I am Central gov employee, but emi is total 21.5 k for home loan and other loan. I am still unmarried. Is my all decision correct?

        Reply
        • Biplab-If you are buying it online, then agents will not contact you but the Insurance Company representative will contact you. Regarding your financial decisions, it hard to give my opinion with mere few lines of sharing.

          Reply
          • Thanks for prompt reply.

            Reply
            • Looking for advice.
              Sir, as you said, “it hard to give my opinion with mere few lines of sharing.” I am sharing some details of mine.
              My age is 26 y and I live in Kolkata suburban area in my own house and I am unmarried, willing to Mary after 2 or 3 years, I have father, mother in my family, Sister is getting married in January 18.I took 23 l home loan in January 17 , for this I give 20k emi and tenure of loan is 22 years. I earn (net)60k total per month , my salary will increase every year as I am Central gov employee.At present I have no SIP, PPF, LIFE INSURANCE OR MEDICAL INSURANCE, nothing.I can save 20k per month easily. So , please guide me what insurance should be done and how can I INVEST my money to increase wealth. Please help me whenever you get time.

              Reply
              • Biplab-You are not understanding my point. I don’t want your personal life but financial life. For this, do you think it is easy for you to share all your such information with mere two lines a BEST. It is more dangerous to you than to me. Also, I can’t advise blindly.

                Reply
                • Ok Sir thanks, please delete that message of mine .

                  Reply
  52. Dear Sir,

    I have two insurance policy which are Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana. Is this needed to mention these existing policy when i apply online for LIC or ICICI term insurance policy ?

    Also i don’t decide which one is good LIC term plan or ICICI term plan, I have researched and seen LIC premium is little bit higher than ICICI but ICICI is private . That is why i am confused. Please suggest.

    Reply
    • Subhajit-You have to inform Jeevan Jyoti Bima Yojana but not Suraksha Bima Yojana. For me both insurers are fine.

      Reply
      • Thank you Sir

        Reply
  53. Dear sir online term plan me portability ho sakti hai kya??Jaise one company to other?? online term plan ka premium age ke hisab se badhta hai kya???

    Reply
    • Hemant-You can’t port life insurance. Life Insurance premium will not raise in middle and it is fixed throughout the policy period.

      Reply
      • Thanks sir!!!

        Reply
  54. MY fAMILY INSURANCE SUGGEST ME AMULY JEEVAN II AS TERM PLAN , SIR PLEASE TELL ME IT IS GOOD FOR ME, MY AGE IS 39 AND WANT TO BUY TERM POLICY SOON NO SMOKING AND OCCASSIONALY DRINK
    HE SUGGEST ME 25CR WITH 12500 /-YEARLY PREMIUM.

    PLEASE HELP ME TO BUY A GOOD TERM INSURANCE
    SHOULD I GO FOR LIC OR SHOULD I GO FOR ICICI, HDFC, SBI LIFE?
    PLEASE SUGGEST ME

    Reply
    • Manoj-Why not your family insurance agent not suggested the cheaper than this LIC’s eTerm? Is it because he will not get a commission? If you want to buy from LIC, then why not online and save money for yourself?

      Reply
      • please suggest me better one

        Reply
        • normally term period is finished still i m alive then what amount we get if yes than which company is provisde this featur

          Reply
          • Manoj-It is term life insurance. If you survive till the end of policy period, you will not get anything.

            Reply
  55. I want to take term policy but i am diagnose with Sugar and Thyroid. Currently my age is 38 years. Please advice

    Reply
    • Asim-Go ahead with insurance companies whom you shortlisted. Disclose all facts. Let us see what they respond.

      Reply
  56. sir presently i am 34 years old. i need a term plan of 50 laks for 40 years. how is the agon life. what are the pros and cons if we compare with other established brands.

    Reply
    • Abhishek-Nothing wrong in that. Go ahead if you are comfortable with premium and plan features. But make sure that to disclose all facts properly.

      Reply
  57. Hi Basavraj,

    Term insurance will be issued only for income person or dependent people also can purchase the term insurance?
    What happens during the claim, If non earning person or dependent person takes policy?

    Reply
    • Naveen-Not only term life insurance, but all life insurance products are issued only to the person who has income. Because if someone is not earning, then there is no loss of money if death occurs.

      Reply
  58. I am 37 yrs old. What are the type of insurance policies i should buy. I already have LIC Jeevan Anand. Kindly advice.
    Can i get a term insurance Policy with CANCER cover?

    Reply
    • Amey-Term Life Insurance, Health Insurance and Accidental Insurance.

      Reply
      • I am paying 12500 per month in 21 policies of jeevan anand.

        I am paying this amount for the last 6 to 7 years.

        I have also invested some amount in mutual funds.

        Considering the amount of sum in jeevan anand so invested, should I still go for term insurance??

        If I cancel some if my jeevan anand policies to bring down the total investment in jeevan anand to say 8000 per month, and invest rs 5000 in equity mutual funds, and take the 3 types of insurance u have advised separately, will i be able to do it?? I am told that if I do this, i shall incur a very heavy loss.

        Please advise.

        Reply
        • Amey-If you feel the returns from Jeevan Anand (around 5% to 6%) is the BEST and also the insurance coverage is suffice to survive your dependents for next 15-20 years in case of your absence TODAY, then you can continue the Jeevan Anand.

          Reply
          • I am planning for a term Insurance of Rs 1 crore.
            I have shortlisted the following companies fore the same:
            ICICI, HDFC, SBI LIFE

            i am 37 yrs, I have no medical history as such, I do not smoke/drink

            Which particular Term Insurance Policy (my requirement is a name of a particular product) of the above Companies will suite me the best.

            I want it only till the age of 60-65 yrs (age of retirement)

            Reply
  59. Dear sir,

    Kindly guide on premium.paying terms… Shorter – 5 yrs is better or a longer one- 10 yrs?

    Kindly suggest.

    Regards, Sudhir

    Reply
    • Sudhir-Better to choose shorter if you are capable. Who knows what happens after few years due to job loss or some health issues?

      Reply
      • Thanks a lot sir..

        I am looking forward for a plan with HDFC life..

        Can you guide me whether rider of accidental benefits & critical illness to be added?

        Kindly clarify..

        Thanks in advance..

        Regards,
        Sudhir

        Reply
  60. Dear Basunivesh I am 62 year old widoed housewife. Husband was govt pensioner who passed away. I am getting his family pension now. My daughter is partly dependent on my income. Can i take term insurance? Also if i am hospitalised, is there any plan to pay medical bills with it .?

    Reply
    • Kranti-Yes, you need life insurance and health insurance. But getting at this age depends on your health and other matters. Hence, better cross check before proposing.

      Reply
      • I have a normal health insurance cover for 3 lakhs. Will I be able to get Term insurance as I am a family pensioner ( I am getting 3 lakhs per annum). And what do I cross check before proposing. Can you please suggest a few suitable term insurance policies with hospitalization benefits if any.

        Reply
        • Kranti-Health insurance is a different product and life insurance is different. I am not sure why you are connecting both. Regarding buying a new product, refer my above post.

          Reply
          • Thank you. I think I have confused both. I will go for a term policy and critical care health insurance as needed?

            Reply
            • Kranti-Again Health Insurance is different and Critical Illness care is different.

              Reply
  61. HIi..I am 27 year old and my husband is 30 year old we both are working professionals with no kids right now. I would like to know what kind of term insurance plan we should consider for us .Thanks

    Reply
    • Mahek-There is no such major differential term plans. Hence, go for plain term plan without rider options.

      Reply
  62. Very Good and Helpfull Information.
    Thank you so much Sir.

    Reply
  63. Very detailed information. I had to take a break before completing the reading of this post, ha ha. But honestly saying this one of rarest and very helpful post what I have ever read. Though many finance-enthusiasts are always keen to any policy’s terms & conditions whenever it comes to term insurance everybody less bothered about it because there is no return if you survive till the maturity period. So everybody hopes for the best and finally buy any random term insurance. But whoever wants to buy the best insurance they will definitely find it helpful.

    Reply
  64. My age is 34 and i have discovered the BP in age of 28..and i am taking medicine…althogh i have normal BP then afer word with medication..I am planning to buy term insurance from ICICI and wanted to know how much premioum will increase in the case of declaration with BP . I do not has any health issue so far and living healthy life.

    Currently i see 1 cr for 30 year normal premium ICICI is 11118 per year. (20 Sep is my birthday)

    please suggest.

    Reply
    • Suneel-If you are currently under no medication due to BP and its normal since long, then I don’t think it is required to mention.

      Reply
      • No i mean..BP is controlled with medication..as doctor not suggested to stop medicine I take regularly.

        Should I mention this..if yes then how it will impact my premium?

        Reply
        • Suneel-Better to mention. The impact depends on the respective insurance company underwriter’s decision.

          Reply
  65. Hi,
    I am looking for a term plan between 25 35 lakh. Ian retiring in 2000. I had some BP issues in Jan 2014 & two stents are administered. Though I take blood thinner etc regularly I am quite fit since then.
    My term plan for 20 lakh from icici is expiring on 20 SEP. I didn’t mention the medical history while taking the plan last year on the advice of agent. Pls suggest me

    Should I go for renewal, or
    Opt for a new plan b’cause BSL is tittle expensive.
    Will the insurer admit my application if diclose about my past med history.

    Reply
    • Suresh-When you are retiring? Also, never ever hide any facts. Agents say you to HIDE because they need the business. If you hide and at death claim rejected means your family will suffer not the agent.

      Reply
      • It’s SEP 2020.

        Reply
        • Suresh-What is your age and when you are planning to retire?

          Reply
          • Hi completing 57 on 25th. Will be returning in September 2020.

            Reply
            • Suresh-Term Insurance is not required beyond retirement age.

              Reply
  66. Hello sir,
    I opted for 1 crore offline term plan of birla sunlife through advisor. But the name was different on policy
    VINEET KUMAR KUMAR instead of VINEET KUMAR VERMA, So I asked advisor for correction. He looked my original policy and it is almost 3 months I have not heard any words from him.
    Now I want to surrender my policy and opt for other one.
    Please guide me.

    Reply
    • Vineet-You can approach the insurance company for name correction and continue the same. However, the reason for surrender is different, then simply don’t pay the future premium. Why you opted for OFFLINE plan than ONLINE?

      Reply
      • Please suggest one single plan of your choice which I should opt now.

        Reply
  67. hi, can we take premium weaver off rider with term insurance? is it advisable ? if no why?

    Reply
    • Sanjay-Premium waiver offer for what? Death of insured or disability?

      Reply
      • Both

        Reply
        • Sanjay-In case of life insurance premium waiver applies only for disability. Because in case of death, the claim get settled and no question of waiver.

          Reply
  68. Dear sir
    Thanks for quick reply on my comments. We both husband & wife are semi govt employees(Zilha Paridhad) .we get medical expenses from govt,but after submitting documents & not cashless. There is also cuts in amounts not sanctioning full amount. May I need family flotter health insurance ???

    Reply
  69. Dear sir
    Is online term insurance is necessary?

    Reply
    • Hemant-Term Insurance is NECESSARY to those who have financial dependents. Online or Offline, depends on you.

      Reply
      • Thanks!!!

        Reply
  70. Dear Mr. Basu,is Aegon Religare reliable one for term insurance? Please guide me .

    Reply
    • Adita-In my view, all insurers are equally reliable and non-reliable. The only option in our hand is to declare facts properly.

      Reply
  71. Hi Basu,

    If take term insurance cover for 1cr, after demise the claimed sum will be taxable? In whose name and slab will it be taxed? let me know thanks.

    Reply
    • Jagan-Death claim from all types of Life Insurance is completely tax-free. Hence, you no need to worry about that aspect.

      Reply
  72. dear basu , i have one query and worried about it. i am self employed and working as a real estate agent at nasik. i dont have fixed annual income because of nature of my job. since two years i have not filed any ITR because of low income. this year i have earned 06Lacs as commission. i am looking to buy a term insurance to secure my family. how my HLV will be calculated? will i be able to get enough insurance cover ?? or my proposal will be rejected because i dont have fixed income? please help.

    Reply
    • Arjun-Without proper income proof it is hard to get life insurance.

      Reply
  73. I am working as a property consultant. i dont earn a fixed income. Income varies from zero to lacs each year. I have not filed ITR since two years because of low or no Income. this year I earned 06 Lacs from brokerage. I am 40years old, married and father to a lovely girl child. I have not bought any life insurance policy yet. Please suggest me some good plans.

    Reply
  74. Hi Mr. Bashu,

    I quit smoking 4 months back, should I mentioned as smoker or non smoker in the application column.
    The insurance company employee said “not to mention” smoking since I had already quit, but my doctor suggest me to “mention as smoker” for safety reasons.

    Pl suggest.

    Reply
  75. Hi Basu,
    I was searching for best investment plan landed up in your page .
    Hope your expertise can help me out .

    I am looking for insurance plan whereafter 30 years of survival & saving , i can use for my vacation and travel purpose.

    30 years Term sum assured 1 crore with minimum annual premium .
    Can you suggest some plan .

    I heard abt LIC Endowment plan 814
    Term 30yrs
    sum assured 29Lacs
    premium 97000
    maturity 1.02 core

    Let me know if there is any better plan than this .

    Thank You.

    Reply
    • Annaraj-Whether your intention is to buy INSURANCE or INVESTMENT product?

      Reply
      • HI Basu ,
        It should cover both if i survived its shld be like investment product or during the tenure if something happens then it should be like Insurance .

        Thank you

        Reply
        • Annaraj-How about separating both? Whether the products which shared by you are cover your life insurance requirement to the fullest? Whether they provide you the great REAL return after investing so long?

          Reply
          • My basic requirement after 30 years from now i should have atleast 1 crore for my personal expenses , have very less knowledge on investment .
            let me know if der is possibilities to separate insurance and investment which can benefit me for long term .

            Reply
  76. Hi Basu,
    As always wonderfully complied. this type of details helps a lot for people like me to decide.

    On Aviva’s claim settle ratio as per their website is 90.60%, but your data shows 82%. I have an term insurance from Aviva for past 4 years and i am closely watching this….can you please check the data?

    Reply
    • Suresh-I published this data based on the recent IRDA annual report. Hence, if you have doubt over their claim, then being a customer of that company, you have all rights to question this. Please do the same and share with me.

      Reply
      • Hi Basu,
        Checked with Aviva – earlier their CSR was 82% and very recently this has gone up to 90.6%

        Reply
        • Suresh-Whether their data is matching with mine or what? You tell me.

          Reply
  77. Hi

    Good article…could you suggest which company offers online+ for NRIs+ no medical+ one click purchase….no follow ups, no talking to people….direct policy in your email? Is there one?

    Regards
    Rohit

    Reply
  78. i have check out premium for life cover of 1crore for 30years of max life insurance. But life cover amount is linked to my annual income . As my income is 300000 annually currently they reduced the amount of life cover as well the premium amount. Why these companies links cover amount to income.

    Reply
    • Maninder-It is because the insurance cover is based on HUMAN LIFE VALUE. Otherwise, a person who earns monthly Rs.5,000 may put the proposal for Rs.5 Cr Life Insurance.

      Reply
  79. Hi Basavraj,

    First of all i would like to thank you, bcoz, based on your suggestion I purchased public sector health insurance.
    I went for united health insurance-platinum policy since it has 7000+ network hospitals.

    Now , i would like to understand few more types of insurances available in the market. those are :-
    1. what is term insurance, why one has to go for term insuranse? whic one is best?
    2. what is “Critical illness”, why one has to go for critical illness insuranse? whic one is best? what is the difference b/w healt and critical illness policy? which one is the best ?
    3. what is the lic insurance and term insurance?
    4. what is riders ?
    5. what is “single” in premium paying options ?

    could you pls make me understand and gguide me in tjis regard.

    Thanks,
    Naveen

    Reply
    • Naveen-Your all basic doubts can’t be answered in a comment section. Hence, to understand what are these insurance types, try to Google and find an answer. If you have specific doubts, then we discuss. I have already written basics about term insurance in above post.

      Reply
  80. Hi Vinesh! I follow your blog regularly and love the content. I am planning to buy a term insurance plan for my father who is 54 years old. I confused between 2 policies and I would love to get your feedback. My options include:-

    1. ICICI Pru Life – Premium is Rs. 28,000 annually for sum insured of 50 Lacs
    2. Max Life – Premium is Rs. 24,000 (including the rider for terminal illness) annually for sum insured of 50 Lacs

    Which one should I opt?

    Reply
    • Tanay-Whether Term Life Insurance is required for him at this age?

      Reply
      • Yes. Term Insurance is offering better sum insured compared to Life Insurance. Also, the premium for Life Insurance is quite high compared to the premium for term insurance for his age.

        Reply
        • Term Insurance basically is taken to financially protect the dependents. If you are not financially dependent on your father, there’s no point in taking a term insurance plan for him. It’s better to look for a health insurance plan instead.

          I would suggest you, Mr. Tanmay to take a term insurance plan

          Reply
  81. sir,i have taken term policy of icici pru i protect which covers me around 25,00,000rs for the premuin of rs 788.00rs per month.it covers accidental death as well as natural death also covers.pls suugest me do i have to any changed or i have to rely on this product….pls suggest me..

    Reply
      • I just want to know regarding product which i have brought..tenure is around 40 years for premium of rs 788.00 per month.it covers life as well as accidental death.I think premium is bit higher..pls suggest me..

        Reply
        • Hasmukh-What you want to know? If say it is not good, then will you go ahead and cancel??

          Reply
          • dats wat I m trying to tell you.if I get a good product and more secured den I can switch over to other.I want to secure my family.I don’t have kids.

            Reply
            • Hasmukh-Can I tell you one truth? NO INSURER IS GOOD OR BAD. All are here to do business. The only thing that is in your hand is to disclose all facts without hiding. Never run behind this rush of searching this insurer or that insurer. You already purchased and stick to it.

              Reply
  82. Hi

    I am looking for a new purchase for my friend who is 32 yr old, married and has 2 kids (elder one daughter 8 yrs old).
    he hasn’t started any savings or has any insurances to his name as of today…
    He is a mba graduate and is working as a accountant for a daily wage of rs 700 (no salary certificate available /no other benefits like PF or med cov).
    His wife recently started working and is earning around 8k pm as a teacher in a pvt school.

    He has obliged to save 2k per month after a lot of push

    considering all above I was thinking of suggesting him to go for a whole life plan with a maturity term of 15 yrs (thinking that the amount would come handy to him during his daughters mid age either for marriage or higher studies)

    but also had second thoughts that I should tell him to split and go for a term insurance of min 25 lacs and invest the rest…

    would you suggest few ideas and insurance plans for this profile

    Reply
      • Hi ..

        Bcoz he may not be able to put up some more funds in near future towards savings for kids education…

        He is 32 now and not even a single penny is saved for emergency cash and no other savings towards retirement

        Reply
        • Kiran-What about the risk of his untimely death before his kids grow (as per your claim he was not saved a single penny). Will the Endowment or Whole Life Sum Assured be sufficed?? Also, do you think for such long-term goal, the returns of whole life worth to invest?

          Reply
  83. Sir, my father is 50 years old and has just went through angioplasty in Feb, 2017. Now, he wants to buy a term insurance plan for himself. He has applied for Rs. 50 Lacs sum assured with Rs. 50 Lacs accidental rider on ICICI Pru iProtect Smart. They took all the required details and documents. They also took the medical tests. But, after this they rejected the application mentioning the following reasons
    1. History of Angioplasty
    2. Hypertension on treatment

    Now, I want to know what options can my father explore to buy a term insurance plan? Is it really impossible to buy one at this stage? Please help me out here.

    Reply
      • Yes, my grandmother, mother and my younger sister (in 11th standard) is financially dependent on him.

        Reply
        • Deepanshu-In that case he may go for Life Insurance up to the age of his retirement. However, considering his health issues and the age factor, it is hard to get the cover he is in need. Suggest you to reduce the sum assured and check with an insurer or try with some other insurers. It is hard to say for me that which company offers the life insurance for your father at this age.

          Reply
          • Thank you sir

            Reply
          • My mother age is 60 and father age is 66 years. They are completely dependent on me and they don’t have any single penny saving. I want to protect them by buying a term plan for me. My age is 29 years. Can you please suggest buying a term plan is a good decsion? OR please suggest other alternative. I don’t want that if I will die they will be in terrible situation.

            Reply
            • Ankur-If someone financially dependent on you, then YOU MUST BUY a term insurance.

              Reply
  84. Hello Sir,
    My age is 30 years. I am planning to buy term plan with 1 Cr. sum assured. Are there any term plans having returns after maturity. Please suggest.

    Reply
    • Soudagar-There are many such products. But do you feel that return of premium a great option??

      Reply
      • So what could be the great option Sir??

        Reply
  85. HI basavaraj,
    your article was very informative thanks.

    I could not get why you dumped out TATA AIA? Can you pls clarify?
    Thanks Vikas

    Reply
    • Vikas-No such offense. But at the end, I have to shortlist my 5.

      Reply
  86. I want to know which is the best policy for term plan. I am not looking at premium, I am ok with higher premium. Can you suggest me LIC is good or private like ICICI, Max, Ageon?

    Reply
  87. Dear Sir,

    Thanks A Lot for such nice article/info………

    I am having MaxLife Term Plan since last 4 years of 50L + 25L accident rider. My age is 37 years. I am paying premium of 18k. After reading your article, I compare the quotation for online term plan of Max Life, for same cover it is available @8k, shall I switch the Policy to save money. Or shall I continue the old one. Is there no harm/issue in buying online plans.

    And second query is that now HDFC and Max Life is going to merge so shall I take the New Plan of HDFC click 2 Protect 3D plus, rather than MaxLife plan, in case if you advised to switch.

    Thanks,
    Neeraj

    Reply
    • Neeraj-You can go ahead with new premium rate and new plan. But make sure that to cancel the existing one ONLY after they issue the policy to you. HDFC bit costlier than Max.

      Reply
  88. Dear Basu, Most of the financial advisors say that term insurance is not required for government employees. Due to the fact that Govt Employees will get pension after retirement and there is no need for Term insurance. But what happens after retirement is that, if some unfortunate things happen, atleast it will support the dependents. Your thoughts pleas

    Reply
    • Hari-Term Insurance is not required for all during retirement period. But it is the biggest myth that Govt employees not required term insurance. All individuals who have financial dependents must buy term insurance.

      Reply
      • Dear Basu,
        To explain you much better, my father have taken Max Life Term plan at the age of 51 (SA – 50L, Accident – 50L) with a yearly premium of Rs.23,000 and Premium Term – 19 yrs (Upto the age of 70). He is a railway employee (current age:54) planning to take Voluntary retirement this year. My father & mom living separately in Chennai. Hence his doubts are

        1. Should he continue paying Term insurance premium yearly (with his pension) ? or he should stop paying premium?
        2. He doesn’t have any other insurance cover other than Star Health medical insurance. Is it fine not to have any insurance after VRS?

        We would like to know your suggestion and thoughts!

        Reply
        • Hari-1) Whether someone FINANCIALLY dependent on him after his taking of VRS? If so then let him continue. Otherwise, just dump it.
          2) He must increase or have proper health insurance. Hence, suggest him to increase his cover either by increasing the sum insured or by buying the super top up plans.

          Reply
  89. I found Aegon Life the cheapest of the lot, when it comes to Premium amount.
    But the only downside is it’s not 10+ years old (1 of the 4 parameters as mentioned in your article).
    Can you point out some negatives/cons of Aegon Life?
    Any past experiences/anecdotes would really help.

    Reply
    • Kanwar-In my view, if the premium is within your range and also the features are matching, then go ahead and buy.

      Reply
  90. Good Information,

    I want to buy term insurance which is better LIC or private sector.
    Could you tell me to trust private insurance companies.

    Reply
    • Sree-All are EQUALLY GOOD and BAD. Go with an insurer with whom you are comfortable.

      Reply
  91. Hi Basu, Could you please clarify my doubts.

    1. Why do you think Life insurance is not needed after retirement?If I (31 now) retire at 60 and but my plan covers me till 65 and, if something happens in between at least the dependent will get the SA right?

    2. If I lost the job in between say at the age of 45 then should I surrender the plan? reduce the coverage?Is it possible to
    reduce? I dono ..what should I do?

    Reply
    • Santheesh-1) When you retire? When your all financial obligations meet and no financial dependency right? If no financial dependency, then you may not require life insurance at all even NOW also.
      2) You can’t reduce the coverage. But you can surrender and close it.

      Reply
  92. Dear Basu sir what’s your take on hdfc life click 2protect 3 d plus life plan

    Reply
      • Thanks waiting for the post

        Reply
        • when it will be published?

          Reply
  93. hi Sir,

    AEGONlife is providing many benefits on Term Insurance, like the whole premium amount will be refunded on survival (increased premium amount). I was preferring ICICI till now, but seeing the benefits of AEGON I am bit confused.

    Please suggest.

    Reply
    • Aditya-Do you feel the return of premium at maturity is the BEST choice??

      Reply
      • Hi Sir,

        What is the drawback in this case? If they return the premium? May be what matters is if the service provider is as good as the ones listed in the blog? Is Aegon good?

        Reply
        • Isha-Check the premium difference between the regular term plan to return of premium rate. Aegon is not into social service. Such return is factored in your premium.

          Reply
  94. Hi Basu,

    I currently have a pure Term plan of Max life and i just have a question on the Accident rider which most of the companies are offering.

    To my understanding Accidental Rider helps in getting more benefit in case of death such as double of insured amount, Waiver for the remaining premiums and some benefits in case of partial disability as well.

    Now the question i have here is – In case of an accident where a person gets partial disability and he is unable to work, do we get partial insurance amount or not?

    Regards
    Sandip

    Reply
    • Any suggestions from anyone here?

      Reply
  95. Hi Basu, Recently I have taken 1cr Term policy from Max life insurance but in proposal form, I missed to provide my existing life insurance policy with LIC details in policy proposal form and regarding the same I followed up with max life and informed the same to them and issue is in the process.Here my doubt is what precautions I need to take in this case shall i request issue a new policy document along with modified details? can you please name some common reasons for term policy rejection by private insurers.

    Reply
      • I am fed up with their service,they asked me to shoot a mail with screen shorts and did the same then i did not get ay revert from them then after couple of days called back to customer care center then they said they didnot get any mail from me so asked me shoot another mail then also the repeated the same story, later on i mailed to [email protected] with prevous mails screen shorts along with dates and all then after 4 days the manger replied and asked me to allow 3-4 days to work on this.this entire process took around 1 month still the issue is under process but not yet resolved.

        Reply
        • Venu-Sad to hear this. You can raise the issue at a higher level.

          Reply
          • How to reach the higher level?the customer executives not at all providing their higher authorities details.
            and one more thing just for updating of details I am facing these many issues with Max life, now I am in fear of will they provide service to my nominee at the time of claim settlement?

            Reply
              • Thanks a lot, Basu.Really it helps me and I am on the right path to solve my query.currently, I am at step 2 level if it is not resolved in 7 days then will go with Step 3: Escalation to a Grievance Redressal Officer.

                Reply
                  • Hi Basu, above mentioned issue was resolved and taken the letter with duly signed by the manager at step 2 level. Thanks for your help in this regard

                    Reply
                    • Venu-Thanks for sharing this and best of luck 🙂

  96. Hi Basu,

    As mentioned earlier by many other readers – your article was really simple to understand and indeed helpful in taking a decision about buying term insurance.

    I noticed that many people ask about opting for riders , you have replied no to them !!

    Any specific reason that you suggest to buy pure term plan and riders separately from general insurance companies

    Regards
    Rohan

    Reply
    • Rohan-Riders comes with limitation in case of sum assured and other features. Whereas if you buy such products separately, then the features are more and sum assured is as per your requirement.

      Reply
  97. Hi Basu,

    How should one proceed with increasing the insurance cover after a few years? It would also mean very high premium as age goes up. Should one already take a higher amount in the beginning to avoid higher charges at a later point?

    Also, how would he GST impact all insurance premiums?

    Regards
    Isha

    Reply
    • Isha-Your assumption is right. But it is hard to factor your future financial responsibilities NOW. Hence, at least make sure to enhance your cover once in 5 years or so is enough. In general, as per current declared rate, it is assumed that premiums may go up. But let us wait for full-fledged implementation.

      Reply
      • Thanks Basu! I’m thinking a cover of 2 CR is appropriate at this point to benefit from lower premium and if needed increase the cover at a later point. How should one increase the cover? Existing policy or a new one needs to be bought?

        Reply
        • Isha-You have to buy the new policy. You can’t enhance the cover from the existing plans like health insurance.

          Reply
          • Hello, I think PNB’s policy has a provision to increase the amount at certain stages of life. Please check.

            Thanks
            Sahil

            Reply
            • Sahil-It is auto increase mode may be. But you can’t raise the sum assured as per your wish within the same policy.

              Reply
  98. Hi,
    While buying online term plan I want to nominate my wife as nominee but in her documents she has only first name and no middle name or last name. Last name is a mandatory column. What should I write in last name so that it will not create any issue at time of claim.

    Reply
    • Sandeep-This is a procedural issue, check with the insurer of which you opted.

      Reply
      • Thanks. But Bank representative told me to put “NA” in last name or write first name again in last name.
        Will it not be an issue in future as Name should be same as in documents.Pls suggest something, I am confused and in hurry as my b’day is on 31 May.

        Reply
  99. Hi,

    This is for the customers who is going to apply for LIC Term Insurance.
    I applied for LIC term insurance plan, I gone through 7 medical test at authorised TPA test centre. After a week, no call or any counter proposals. I called LIC to check the status, they said I need to give two more forms 1. Travel related queries 2. Medical form again to be filled and attested by doctor preferably MD. Hope after doing this too I will get the counter proposal which might be well within my earlier given rate or else have to drop it. So far 3 week gone by and the results are still awaiting… LIC great!!

    Reply
    • Jagan-It depends on case to case. You can’t say generically that LIC made you to wait means they do it for ALL.

      Reply
  100. Dear Sir,

    You are already doing a great job. Congrats !!!

    I was planning for my childrens aged 20 and 22 years who are still studying. I wish them to go for online pure life insurance plans for 40 years at the earliest to save on premium amounts latter. Now, can I pay on their behalf, as father, till such time they start earning and take over their own burden. Or do they have to produce some document to prove that they are earning enough to regularly pay their premiums.

    I believe there would be other educated parents with similar thoughts, for whom also your reply may be of great help.

    Thanks,

    Vijay

    Reply
    • Vijay-Do you feel someone is financially dependent on your kids? In my view NO. Hence, both of them not required any life insurance.

      Reply
  101. Basu sir shortly I’m very much confident to cot that your explanation is gr8 n as well “You” are also g8……

    Reply
  102. Hi Basu
    Just wanted to clear my doubts about term policies from ICICI and Aegon life. The latter seems better in terms of premium and features but this is a very small company compared to ICICI which also has a good track record. Between aegon i term and icici i protect which would be better if i need peace of mind.

    Reply
  103. Hello Sir,
    Thanks for this nice article.
    I am an NRI planning to take a term insurance.After my study I found that service charges are exempted for NRIs with HDFC life.How would you compare click 2 protect plus(Basic option without rider) and 3D Life .I can see that the premium for 3D life is less and an additional premium waiver facility for critical illness is also there.What do you suggest?

    Reply
    • Manoj-It is good but go with the basic plan. 3D or 2D are meant to garner business.

      Reply
  104. Hi, I am a UK Citizen and OCI (Overseas Citizen of India). I had approached LIC for eTerm but they mentioned they dont give eTerm to OCI. Please advise which company I should go with. I will like to go with the one which formally accepts my documentation of UK Passport and OCI and is the safest for claims (if any are required to be made)

    Reply
  105. Hi Basu,

    Good to see your lot of articles are very informative and educative !

    Though you have mentioned each should revisit every 5 years understandable.

    In general on what basis one should choose the tenure of the Term Insurance policy ?

    Thanks,
    Ramesh

    Reply
    • Ramesh-The term should end with your working life. Because during retirement period, you don’t need insurance.

      Reply
  106. Hi Basav,

    How about Endowmentt plans offered which offers saving and returns benefits once your maturity expires. I know the returns are not fixed and might fall in the range of 5-8% and that too for minimum 10 years. Could you please advise me should I go for Pure Term Insurance or can go ULIPs/Endowment plans. My age is 27 years and looking for some investments. Also considering about ELSS funds. But first, I want to make by base strong through life insurance and I am wondering is this right age to take Pure Term insurance plan or can take once I am near to 35 years.

    Reply
    • Arvind-If you feel returns of around 5% to 6% is BEST return for your investment with lower insurance coverage, then definitely you must go and invest in Endowment Plans. Personally, I am against mixing insurance with investment.

      Reply
  107. Hi Basu
    Recently I applied for Max life term insurance. Based on my age (38yrs) the premium was close to 18000.00/annum. However post my medicals they are making a counter offer for close to 43000/annum, as I am 115 kgs and diabetic.
    Should I check with other companies for a quotation or carry on with the present one. Thanks in advance for your valuable advice.

    Reply
    • Hi,

      What happens to the paid premium incase someone choses not to go with such counter offer ? How much do they deduct

      Reply
      • Sahil-They deducts the applicable tax and medical examination cost.

        Reply
    • Rajesh-You can cross check with others also. But the result in many cases MAY be same.

      Reply
  108. Hello Basu,

    1. Going through your comments i come to know that going for Riders is futile when buying term insurance but then you had mentioned buying these from General Insurance companies (what are they ) ?
    2. Which is advisable – Lump sum or monthly income Or Monthly increasing income. Given the fact that premium difference is there in these options.
    3. Advisable to go for premium waiver rider ?

    Best Regards

    Reply
    • Sahil-1) All General Insurers (including standalone health insurance companies) provide you accidental or critical illness insurance. You can check as per your comfort and buy it.
      2) Lump sum payout at the time of death.
      3) In which case premium waiver? This feature will come into picture when you buy some riders.

      Reply
      • Thanks for your response.

        3. Premium waiver in case of accidental disability or critical illness( may be). ICICI advertises this as inbuilt feature. Max life charges approx 500 extra ( profile: 31 M non-tobacco) and Aegon charges Rs 321 extra over the plain vanilla term insurance. I haven’t gone through their brochures to understand more but this is the info i got from online aggregrators’ website.
        This is not in the case of the riders but separate from those.

        Reply
        • Sahil-BEWARE of online aggregators. They are also a type of INSURANCE AGENTS.

          Reply
  109. Hi,

    HDFC click2protect plus

    Please calrify the terms;

    Higher Of:
    – 10 times the Annualized premium or
    – 105% of all premiums paid as on date of death or
    – Sum Assured

    In the event of the unfortunate death T&C5 of the life assured during the policy term and if all due premiums have been paid, the above mentioned Death Benefit will be paid to the nominee in the form of a lump sum.

    In case this death is due to an accident T&C5 and if all due premiums have been paid, an additional Sum Assured will be paid to the nominee in the form of a lump sum.Upon this payment, the policy terminates and no further benefit is payable.

    Death Benefit is payable only on Base policy.

    Thanks

    Reply
      • Hi, my query is, out of 3 higher off will be paid. I don’t know why there is 3 options to calculate….. obviously sum assured will be high. let me know the calc.

        secondly, the clause says “In the event of the unfortunate death T&C5 of the life assured during the policy term and if all due premiums have been paid….” all premium should be paid. if my policy goes live I should get if the person dies on next day right!!

        Reply
        • Jagan-In term insurance, sum assured may be high, but what about other types of plans?? Even if you paid ONE premium and policy issued today and death occurs the next day, then also insurance company have to accept the claim.

          Reply
  110. Dear Sir,
    I am 33 years old and recently I purchased ICICI Pru iProtect Smart Term plan. But there were no medical checkup done before issuance of the policy. Is that fine? Will it create any problem in future?

    Thanks!

    Reply
    • Jyotirmaya-It is the BLIND risk insurer took, then why you have to fear?

      Reply
  111. At the age of 40 years which is best for term plan. icici vs hdfc vs maxlife. Sum assured 1.5 cr.
    Thanks

    Reply
    • Vineet-It is hard to say based on age. Because age only not matters, but your income range, existing insurance and above that your health. I selected top 5 as above. You can opt anyone from above list.

      Reply
      • How is offline birla sun life term plan.

        Reply
          • How is birla sun life ….Correction done.

            Reply
              • Thanks a lot, Sir.
                Was waiting for your approval.

                Reply
  112. Hi,

    Recently I buy max term insurance plan online. After monthly payment mode. I got proposal form soft copy by email. There is wrong Annual income shows in proposal form, which was in crore whereas my package in lacs. I informed max team about correction in annual income. One of max sales representative told that sir please cancel your previous application & apply for new one.
    So Sir I want to know that Can I cancel my previous application or update it. Because sales executive told me that your wrong annual income created issues at time of claim.

    Thanks!
    Sanjay

    Reply
    • Sanjay-If the entry of wrong income is purely from their side, then why you have to cancel and lose the money of what you paid as premium? Let them correct it at their end. They are not ready to rectify, instead forcing you to buy one more plan by wasting your premium of what you paid already.

      Reply
      • I just want to check if it’s okay to reveal exact annual income numbers? Will it be kept confidential?

        Reply
        • Isha-Yes, your personal information MUST be kept confidential as per rules and regulation. Hence, you no need to worry.

          Reply
          • Thank you! They also have an option for waiver of premium in case of dismemberment /critical illness etc, is this a good option?

            Reply
            • Isha-Better to buy critical illness insurance from general insurer.

              Reply
  113. Hi basu,

    I have very much impressed with your articles. Thankyou so much.

    I have one doubt , if suppose we have taken 1 crore policy on today date.

    Suddenly happen some unfortunate death after 1 year orcsome time , Is nominee will receive entire sum assured amount or is there any particular time bonding.

    Please clarify… Thanks

    Reply
    • Satish-Your risk starts once the policy issued. Hence, if the policyholder’s death occur even on immediate next day, insurance company has to pay the death claim to nominee.

      Reply
  114. Hi Basu,

    Very good explanation and detailed writing.

    I have one query. Can we take term insurance online without any agent help?

    I am planning to take Tata aia life insurance iraksha trop, which is an online policy. Sum assured as 1 Crore and premium payment term for 5 years.

    Is it advisable to take this one. I am worrying that there might be any issues while claiming the amount on unfortunate event. I don’t find much review about this policy online also.

    I want the claim process should be an hassle free one. If any other product provides the same benefits please suggest.

    Reply
    • John-If you already shortlisted, then why to worry? If you are comfortable with company and product, then go ahead.

      Reply
      • Thanks for your reply.

        My worry is only that policy is an online policy. With nearly same benefits Tata AIA Sampoorna Raksha Plus (not an online policy) is also there. So choosing an online policy should not be an issue later.

        I don’t find much review about this policy online also. This is my first insurance policy and i don’t have much knowledge on this.

        If there are any well known policy with these benefits, I am ready to opt for it.

        Reply
        • John-Do you think an agent through which you want to buy will be in that industry forever?

          Reply
  115. Dear Sir,

    Thank you a lot for giving information regarding Term Insurance Plans.

    I am Vishak of 26. I am working for a very prestigious FMCD Indian based company. I would like to buy a Term Policy for 35 years term. I am bachelor.
    My doubt is with in 2 year i am planning to get married. So if i take Policy now and putting my mother as nominee and after marriage will my wife will come under the cover or do i need to change the nominee and need to put my wife name as nominee.
    I am looking forward for your valuable comment.

    Thanks and Regards in Advance
    Vishak John

    Reply
    • Vishak-Yes after your marriage, you have to change the nominee name. You can change the nominee as many times as you can during the policy period.

      Reply
      • Thank you sir

        Reply
      • I had the exact query and it’s answered, thank you sir

        Reply
  116. Hi Basu,

    This is Rishi here again and few Queries on Term Insurance now after Mutual Funds. 🙂
    I am 38 Years old and don’t have Term Insurance Yet.

    I am planning to take 1 Cr Cover from Maxlife through online which says to pay premium of 15,700 Monthly.
    It also gives 2 below options as part of TopUp.

    a)Accidental death & disability coverage ?65 Lakh extra coverage for just ?4,709
    b) Future Premium Waiver in case of Critical Illness or Disability , Pay just ?910

    Questions

    1) Please let me know I can go with MAX Life for term Insurance
    2) Is it advisable to select above 2 options or any one of them. Can you please guide me on this.

    Regards,
    Rishi

    Reply
    • Rishi-1) Yes go ahead.
      2) No need to buy riders. Instead buy them separately through general insurance companies.

      Reply
      • thanks basu

        Reply
  117. Hi Sir,

    I’m 33 and plan to buy a term insurance for a max of 35 years. I have the following queries: Appreciate your advise.

    – Does the premium remain constant over the years or they increase it based on the changing economic conditions?
    – How does the lump sum get paid out? Is there any tax implications on life insurance claims?
    – Between the two, Maxlife is cheaper and I would like to opt for it and keep my life cover high at may be 1.5 to 2CR –
    do you see any difference in the benefits of both the companies? Are they equally good?
    – Also, can I have two policies of say 1CR each and have different nominees? I would like to have my husband as a nominee on one policy and my father on the other (I know this may sound weird but anything can happen these days and parents could outlive their children)/or my brother?

    Company life cover 35 yrs 40 yrs
    Maxlife 1.5 CR 11903 13110
    Maxlife 2.0 CR 15870 17480
    HDFC 1.5 CR 16994 18422
    HDFC 1.0 CR 11330 12281

    Regards
    Isha

    Reply
    • Isha-1) Yes, it remain constant.
      2) They pay a lump sum to the nominee. Death claim amount is tax-free in the hands of the nominee.
      3) All are equally good. But in your case, you can go with Max.
      4) Yes, you can have so. However, the first legal heir for you is your husband but not father. Hence, he can claim the amount from your father.

      Reply
      • Thank you so much Basu! I will go with max life and did you mean I can have two policies with my husband and father as nominees respectively? I can take one for 1Cr and another for 50lacs

        Regards
        Isha

        Reply
        • Isha-What I pointed is nominating your father is of no use. Your husband will be first legal heir and he can claim the amount of whatever your father gets as death claim amount. Hence, stick to ONE policy with husband as nominee.

          Reply
          • Sure. Also, since both HDFC and Max life have merged as one company why is their premium so different? Many people will still go with max life given the pricing and a good policy.

            Reply
              • Hi Sir,

                I have been chasing maxlife for more than a month asking them to explain the demand for increased premium (they added the premium waiver rider without my consent even after I chose not to opt for it during the online application process and payment). My medicals came out normal and it’s been a horrible experience so far. Their customer service (both on call and email) is horrible with no response or responsibility to call back when promised. With this kind of experience, I’m now worried if I should even proceed with these guys for my term plan? Will they even work diligently on claims by family when their sole breadwinner is no more? Could you suggest the next best option? If HDFC is going to merge with Maxlife – wonder how that will turn out from a customer service standpoint? I would like to know who else here has had better experience with Maxlife 🙁

                Regards
                Isha

                Reply
                • Another thing is, since the sum assured is a fixed amount and does not take into account future inflation etc when the value of the term insurance may not be enough for the family. I heard about policies where the sum insured increased every year by some % to combat inflation? Could you advise which company is doing this currently and let me know if its a good way to proceed buying insurance with them? any negatives with such policies?

                  Reply
                  • Isha-Yes, there are certain policies which increase sum assured on yearly basis. You can opt such. But do remember that buying term life insurance is not one time process. You must review and increase the cover once in at least 5 years (which MANY not aware of).

                    Reply
                • Isha-If you have concerns then simply SKIP. Why you have to worry?

                  Reply
                  • My concern is that these companies are merging and how will they deal with customers claims with so much lethargy? Could you let me know what the next best option is? HDFC?

                    Also, about reviewing insurance needs few years down the line – we also forget that the premium will be very expensive as the age and health factor also matter, we should be able to find a middle path if possible? 🙂

                    Reply
                    • Isha-Do you think they are so bad that merging will impact their customer service? They prepare and do it. Regarding other alternatives of HDFC, refer above post. Yes, but such MIDDLE path where the constant increment in your SUM ASSURED really helps? What if your actual insurance need is more than the incremental sum insured offered by few? What if later you felt that the insurance company which you bought may not be best. Then for your fresh buying, you can divert it right?

                    • Yes Sir, we can divert it for sure. Just worried about medicals and premium at a future date 🙂 Can I go with HDFC for my insurance needs or go ahead with Maxlife for a higher amount say 2 CR for now? Please advise

                    • Isha-I understand your concern. Go ahead with any single company than splitting.

  118. Sir, I have planned to take term insurance both for myself and my spouse. I have decided to choose two companies for each of one of us as ICICI and Max. Shall we insure in two different companies or one company for both of us? which one is better?

    If we go for same company, is there any possibility to get discount?

    Reply
    • Manimekalai-There is neither any positives nor negatives by going with two companies for you and your wife. Insurance companies not offer any discount if buy insurance with them alone.

      Reply
  119. Very nice article. I’m comparing online on BankBazar and there are some confusing terms.
    Please reply what it means
    1. what does it mean by NRI Friendly life insurance? Max life offering me insurance with NRI friendly while ICICI not mentioned the same. I’m a IT person and have very high chances of going outside India for long period.
    2. Also what does it mean by ‘Premium From New Buyers’?

    Reply
    • Shirish-1) Fancy name floated by insurance companies to lure NRIs. Check NRI eligibility ONLY but don’t concentrate on such words.
      2) Not sure of what you are pointing.

      Reply
  120. Hi Sir, i want to take online term policy for 1crore,here my doubt is regarding policy term.private insurance companies term is upto 40years whereas LIC is 35 years only, so can split 1crore in to two policies?is it a good idea? and pvt companies premium is lower than LIC and i am going to get extra 5years of risk coverge.
    please suggest

    Reply
    • Venu-Term of life insurance should be equal to your working age. At retirement you no need to have life insurance. Splitting is not a better idea.

      Reply
      • Thank you sir…one more query is it better to go term plan with riders?if yes which rider is best:critical illness or monthly income plan?

        Reply
        • Venu-No, better to buy accidental or critical illness insurance from general insurers.

          Reply
          • THank you

            Reply
  121. One Term plan of 2 cr.
    Can i assign this policy to two different banks, against home loan of 1 cr from each bank ?
    Is that possible ?

    Reply
    • GK-Term Plans are not allowed to assign. Check with your insurer and banks.

      Reply
  122. Very informative article. thanks for your analysis.

    Reply
  123. Hi,
    Wonderful article. Thanks for making me understand settlement ratio is not the only criteria for Term insurance.
    I am 32 yrs old.Planing for a term insurance but in a delima to buy Aegon or ICICI online. Heard HDFC and Max life are going to merge when i had a call with Bank Bazar advisor? Kindly guide me in Buying a Term Insurance.

    Reply
    • Suresh-If your choice is HDFC, then go for Max as it is cheaper and both merging soon. Never rely on Bank Bazaar guys. They are also agents 🙂

      Reply
      • Thanks a lot for giving you precious time to reply . Which one is better Aegon. ICICI or HDFC can you help me on this.

        -Suresh

        Reply
        • Suresh-I can’t name any one company. To me all are equally good and bad.

          Reply
          • OK gud i understood the point can i know the drawback of Aegon and icici

            Reply
            • Suresh-I will not give you either positives or negatives of any particular company. Because the company which is comfortable to me may not be for you. The premium you can afford may not be affordable to me. Hence, it is purely an individual’s choice.

              Reply
              • Thanks a lot

                Reply
  124. Hi,

    I had taken Aviva life term plan five years back. But now i come to know that their claim settlement ratio is on the lower side. Passed all correct details about health while taking plan and even they had done body checkup.

    Now i m double minded whether to continue same plan or move to new company like ICICI, HDFC, MAX.

    Please advice.

    Thanks,
    TS

    Reply
  125. Sir I am 29 years old. Please guide me which companies term plan, health insurance,accidental policy we choose

    Reply
  126. Dear Sir,
    My Name is Sharad Arade, Age of 38. I don’t have an insurance. I want to bug a Term insurance, to insure my wife and kids. Can you suggest if I should go for LIC or trust Icici, Hdfc and SBI for 1 cr ?? what is rider option ?? what is its advantages ??

    Reply
    • Sharadkumar-All are equal companies. Hence, don’t differentiate yourself. Rider is additional plan feature. It is not required.

      Reply
  127. Hi Basu,
    I found your post very informative, however have some queries:-
    Is it not a good option to leave some money after? one’s death for his family to pay off any outstanding loan by making use of the money obtained from term insurance.Then why do you suggest plan upto retirement age since the loan period may crosses retirement age?

    I already have a term insurance plan running for two yrs,however want to increase insurance sum for less premium.I selected Canara HSBC, PNB metlife because both of the bank are from public sector and chances of them getting bankrupt are less.

    I’m a defence officer ,may retire in 10yrs now.So what do you suggest should I go for fresh term insurance? plan now or at the time of retirement with the aim given above.

    Regards and thanks for sparing time

    .

    Reply
    • Bharat-When you retire from your life? When the huge liability on your head or when you are free from all your financial obligation? In my view, a person retire when he sufficiently accumulate the retirement corpus and out of all financial obligations. In such a situation, whether one need insurance?
      Who said that HSBC and PNB can’t bankrupt? For your information banking business is different than insurance business. In insurance, these companies will not have any higher advantage over others that they also run public sector banks. Instead, they run the show exactly like other private players. So don’t be in wrong belief that they will not BANKRUPT.
      Further insurance requirement depends on your own financial commitments and other things. Hence, I can’t comment blindly without knowing much about you.

      Reply
      • Thanks a lot

        Reply
  128. Dear Basu,
    I am 51 just returned(15 days ago) from the Gulf due to job loss after 16 years of service, i am looking for new job once i get i will go back, meantime i want to take up a term insurance for 10-12 years, can i apply in NRI category please advise.
    my visa is cancelled and i do not have overseas address right now.

    Thanks,

    Reply
    • kRaj-Even though your return back outside India is not sure, but as per IT Act, you are still treated as NRI only. Either apply as an NRI or wait for residential change status then apply.

      Reply
  129. Dear sir ,thank you for clearing our doubts about term insurance.
    I am a merchant navy officer,just want to know are these insurance policies same for shippies(merchant navy guys)? Because our NRI status depends on us if any time we quit sailing we will be RI.So which policy do you suuggest for me?

    thanking you in advance
    Goodwork and keep it up

    Reply
    • Ankit-There are few policies meant for NRIs. You can check with insurer of your choice.

      Reply
  130. Sir, can you comment on TROP plans like, TATA AIA I raksha trop, are these kind of plans useful?

    Reply
      • Hi.
        I would like to take up this conversation ahead. While I was looking for the Term plans (especially online), I came across Max Life. Which was recommended by many and I almost decided to go ahead with it. Meanwhile I also came across TATA AIA I raksha TROP.

        My observation is the premium in TATA AIA is little higher when compared to Max Life. However, I have the benefit of having my premium money payback at the end of the term (of course in case of survival). So now I’m little biased towards TATA AIA and not sure which one to go ahead with.

        How would you recommend me to pursue these two options and chose one?

        Reply
        • Vinay-Do you feel paying BIT high premium and looking for return of premium is a wise idea??

          Reply
          • Hi. It depends on the difference in the Premium amount. If the difference is huge, then No. Else, why not?

            Reply
            • Vinay-Do you think the difference in premium? Why there is a difference?? Just think and answer me.

              Reply
  131. Thank you very much for sending me complete details of the term plan. Sir, one more query about term plan is, does online term plans safe? Safe in the sense of claims, or benefits because online term plans are started since last 5 to 8 years and I have not seen any cases where the company has paid the sum assured to the insured person at least not in the group. I asked insurance agent about LIC e-term plan. He told me that if no medical checkup then it would be very hard to claim the amount (he might also think about his commission!!!!!). What is your viewpoint? Any person who knows the success story of online term plan can share, please.

    Reply
    • Punit-You are asking the middlemen that I want to buy a product without YOU then how the benefits are? Obviously, he will create fear in your mind. What is the gaurantee that offline plans are safe? By the way going without medical examination is risky. However, going online is best.

      Reply
      • Yes, I agree with you. How the middleman will loose his money by telling me that you should go for online. Okay, I will check the five plans that you sent me. By the way, your website is very informative and useful for newcomer also. Again thanks for the reply and website also.

        Reply
  132. Hi Basavaraj,
    Thanks for the nice & clear information. From your article, I am taking LIC’s e-Term policy. But I need some clarification for the following points:
    1) I am working in Multinational Software Company. In the Employment Section of Basic Information tab, what should I choose as Occupation? There is no option provided like Private sector or Software Industry. If I specify “Other” in list, will it be fine?

    2) From the Insurance History section, what is meaning of “Is your life now being proposed for another assurance or an application for revival of a policy on your life or any other proposal under consideration in any office of Life Insurance Corporation of India or to any other insurer?” I already specify my Existing LIC policy in Previous Insurance Details section. Please provide more information on this option.

    Reply
    • Umesh-1) Yes. 2) It is any pending proposals with LIC or other insurers.

      Reply
      • Hi Basavaraj,
        Thank you so much for the information provided.

        Reply
  133. Hi,
    I am planning to buy Term insurance, however I am confused which riders should I take and not. I am 33 years old, working in Corporate. Have shortlisted 2 HDFC / Agecon.
    HDFC is providing 19 critical illness / Aegon provides only 4 critical illness. I am confused which 1 to take??
    Should I even consider the riders or should I completely ignore it?
    Please advise.

    Reply
    • Girish-Don’t go with any riders. Buy them separately from general insurance companies.

      Reply
      • Thank you
        Went with Hdfc
        Their online service and payment method is easy to go online these days

        Reply
  134. Hello, Thanks so much, This article I read at really the right time and was like a godsend for me. I was planning to buy term life plan for my husband online & zeroed in on Max Term life, He is 48 yrs old, I was thinking of buying till he attains 75, but you mentioned that it is needed only till retirement age? Can you explain why?

    Shouldn’t we buy insurance till he reaches 75 as it will give me (spouse) more benefits in case of any misfortune?

    We do have other policies for our kids education and house etc, so do you think this plain vanilla term life plan is just enough?

    Your advice and inputs are highly appreciated. Also can you kindly let me know if you are willing to be financial advisor for matters related to investments, shares etc for individuals for a fee? If yes, I would like to use your services, Many thanks & awaiting your response eagerly. Rgds

    Reply
    • Lalitha-Do you feel your husband will have any financial responsibilities during retirement? NO…If no financial responsibilities, then insurance is not required. Life Insurance=Term Life Insurance and hence no other products required to buy. Regarding my guidance, you be in touch with me through [email protected].

      Reply
      • Thanks very much for your timely reply, please also clarify this doubt:

        When you take the term life plan with no riders, if death occurs by accident, then the spouse is not eligible for the sum assured ? Why do they mention accidental death as a separate rider? doesn’t the basic term plan insurance cover death by accident also or for that matter death by any cause?

        I am very confused by these points, I thought life insurance means the nominee gets the full cover due to primary insurer’s death before the term expires. isn’t that the case?

        Thanks again for your precious time.

        Rgds

        Reply
        • Lalitha-Good question 🙂 Regular life insurance covers the accidental death also. However, by opting for accidental rider, you increase the sum assured available to your nominee in case of accidental death.

          Reply
          • Ohh got it, Thanks so much.

            I feel so uneducated with all this financial stuff 🙁

            Rgds

            Reply
  135. My Name is Punit. At age of 33 I don’t have an insurance. I want to bug a Term insurance, to insure my wife and daughter. Can you suggest if I should go for LIC or trust Icici, Hdfc and SBI. Since the Premium for LIC is high I was thinking to buy ICICI or SBI for 1 cr.

    Reply
    • Punit-You can go with anyone which suits your requirement. There is no specific recommendation from my end.

      Reply
  136. Dear Basu,

    I am at age of 34, not yet having any Life Insurance. Planning to opt LICs Jeevan Akshay or iProtect Smart Term Plan. Confused…kindly suggest which one to prefer…
    your early reply in this regard will be beneficial. Awaiting for your response…

    Reply
  137. sir i am 27 years salaried non smoker..for 33 years term and 1 crore,Max life premium is Rs. 7360 and idbi federal is Rs. 6463 …all inclusive of service tax in both..
    Kindly suggest which one to prefer…
    your early reply in this regard will be beneficial as i am turning 28 on 1st march’18

    Reply
  138. Basunivesh is it a better option to pay as a single premium or pay for 40 years for term insurance pure vanilla plan with no riders in hdfc online my age is 33 looking for reply

    Reply
    • Rahul-Both comes with their positives and negatives. For a single premium, the advantage is that you pay one time and you no need to worry about future premium payment and also your financial capability in future. For the regular premium, you no need to worry about accumulating money. It is purely based on your comfort to choose. There is no specific rules of which is best and which is not.

      Reply
  139. hi basu
    i am 53 year old with diabetis i want to buy term insurance can you sugeest me my best option my yearly income is 8 lakh

    Reply
    • Praful-Sir do you actually in need of term insurance? When you planned to retire?

      Reply
  140. Our maid servant asked for help to take a term plan to protect her daughter’s future.
    I have no doubt you are the better judge! Here are some details :
    She is a widow aged around 40 living in Bangalore;
    She earns around Rs.15,000 per month;
    Her daughter is a class 12 student.

    Can you suggest a suitable Plan and Insurance Co.? Or is there any govt. scheme ?

    Reply
    • Chowdhury-Ideally she can have around Rs.20 to Rs.25 lakh term insurance. LIC offers the plan. However, it is offline. Hence, it costs her high. Instead, let her try with private players like ICICI, HDFC, Kotak, Max or SBI.

      Reply
  141. Hey Basu ,
    Superb article as I was planning to buy a term plan and almost zeroing on HDFC life , but I guess Max will be better option. Also your article made it very clear not to go for rider as it unnecessarily increases your premium ; one can rather spend more and increase the sum assured as life cover is most important than other benefits. I am 39 and I feel that I should have insurance upto 60 , itna jee gaya to life jhingalala 🙂
    Since we are doing away with rider and with huge public demand , can you write a similar blog on health insurance which will benefit many to plan for their old age.

    One more clarity , I see that HDFC has option to pay upfront or in recurring manner and in later the premium further reduces.So even if lets say at untoward incident family gets 50% of sum assured and remaining sum assured on monthly basis for further years , this will be a good option.
    What is your take on this ?

    Regards
    Sanjay R Pande

    Reply
  142. Hi Basu,
    I had took sbi eShield term insurance plan 2 years back. Now recently (after 2 unfortunate demise of my friend and relative) i contacted sbi eShield just to make sure their coverage abroad. I was an NRI(out of country for 183 days) when i took eShield. To my surprise they said that eShield is not for NRIs!! It was not in policy brochure or in website when i took the policy or even now. “http://www.sbilife.co.in/sbilife/content/9_6971”
    But now i understood they have put that in FAQ section.!
    For LIC e-term they have clearly mentioned not for NRIs. I am sure a lot of NRIs would have took online term policies with out knowing its not actually covering anything!!
    Could you suggest best term insurance policies NRIs can take.

    Reply
    • Also i believe it was their responsibility to check/ask required documents to verify i was NRI or not. They didn’t inform me and they didn’t check it either.! I wouldn’t have known this at all. I am so lucky to have cross checked.! Is there a way i can ask them to reimburse the amount payed?

      Reply
      • Vidya-If your documents prove that your was an NRI while buying, then it is their fault and you have all rights to complain and sue.

        Reply
    • Vidya-I think in proposal form they might asked (in fact insurers ask the residential status), which you might missed. You can check with other players like HDFC, ICICI, Max or Kotak for term insurance.

      Reply
      • Not sure… i took it some time back… Any way lucky to know at least now! Going for max insurance for NRI. Thanks Basu.

        Reply
        • Dear Vidya/ Basu

          1)HDFC is offering term insurance for NRI’s with relevant documents and as I had a query with you before on this blog, there is no service tax will be charged for NRI’s. But ICICI officials didn’t agree to part away with Service tax
          2) I am 48 now and planning for 10-12 years of terms as I would be around 58-60,but adviser suggesting to go for longer duration up to 75 so that premium will be low and coverage is good. If we feel not necessary after 60 we can just stop paying premiums and policy will lapse.

          Is this advice from HDFC official is genuine?
          Kindly advice how to go about,most probably next week My medical will be done and all documents are ready for submission.

          Reply
          • Josy-1) Thanks for the updates.
            2) Better stick to your retirement age (58-60). Life insurance not required once you retire. You can stop paying premium after 60 years of age. But have you noticed the premium difference for 10-12 years term to 15-20 years term? Longer the term higher will be your premium. Hence, restrict to your retirement age.

            Reply
            • Thanks Basu

              Reply
          • Dear Josy,
            I am planning to take HDFC online term plan as an NRI.I am offered the policy without service charge , but asked me to take the medical test with my cost.Since you have already done this, what is your opinion on this.Will they accept all the documents from an outside india clinic/hospital?Can you explain the pros and cons of this please?

            Dear Basu sir,
            Thanks for this valuable information.I would appreciate if you clarify the following for me!!
            1) HDFC offers accident death rider with an additional amount of sum assured.(Double)Would you recommend this?or you would recommend standalone policies for accident death?
            2)Can you please suggest few names of general insurance companies which provides good stand alone critical illness covers better than riders.
            3)I was an occasional smoker during my college days(Not smoking for the past 18 years).If i am answering as ‘NO’ to a question of ‘R U a smoker?’ is that logical?

            Best Regards

            Reply
            • Manoj-1) Standalone.
              2) Check with Public Sector Companies.
              3) As per your sharing, your current status is NO.

              Reply
  143. Hi Sir,

    Please let me know the term plan that is provided by idbi federal join collaboration and those are providing critical illness n life coverage both ?

    “iSurance Flexi Term: Lump Sum with Conversion Option”

    If any other plan like that above please advise us.

    Reply
  144. Hi Basu,

    I took my Term plan with Max Life last year, though as a brand they were already impressive, what attracted me to them was the merger which was in air with HDFC.

    Now that the Merger of Max life Insurance and HDFC Insurance is completed and hopefully from next financial year they will be clubbed, Isn’t a policy of Max life a better option which is cheaper and promises a faster claim settlement than any other company and now also gives you the promise of one of the biggest brands in India “HDFC”?

    Regards
    Sandip

    Reply
  145. Is there any example (India or outside India) where Life Insurance company has closed down/wound up ? And its impact on existing life insurance policies..

    Reply
  146. Hi,
    Thanks for the awesome explanation.

    I am 30 years old Software Engineer and I am planning to buy insurance of around 1 cr. from Max Life. 40 years time duration.

    This might be silly to ask but One simple question is in my mind is why they pay me 1 cr ?
    For example Mr.x has taken insurance from Insurance company of sum amt 1cr. and premium of rs. 10,000 p.a with 40 years maximum time duration.
    So if we calculate Mr.X pays 10,000 x 40 yrs = 400,000 total premium.

    So If Mr.X dies a month before policy term completes, On behalf of 400,000 company gives 1crore rs. to nominee (if Mr.X dies before given duration)

    Why?
    1 Crore – 400,000 = 96,00,000 rs

    Death is compulsory for all. How they are doing business?

    How can we verify that term insurance is paid previously as the data available of claim settlement is combination of all policies.
    Can you please help me here?
    Thanks.

    Reply
      • Got it. Thanks a ton for the help and writing awesome articles.
        I am very much confused with List of companies to buy term insurance. Please help me out.
        As Aegon Life costs me around 10k premium p.a
        MAX Life costs around 13k premium p.a
        HDFC Life costs around 20k premium p.a

        Please suggest. As all the above listed companies are well and trustworthy(I think so).

        I have taken Personal Accidental insurance from SBI of rs. 20 lacs with premium of 1000 p.a
        and one of my family floater medical insurance from New India assurance is going on.
        Do I need to show/mention above policies while buying any term insurance with/without riders ? Please suggest.
        Thanks a lot.

        Reply
        • Edit:
          One more name of policy forgot to add
          IDBI Federal around 16k
          (Above all listed plans are for 30 year old, Non-smoking/Tobacco, 1 cr SA pure vanilla term plan for age max. 70 years )

          Reply
        • Ronak-I will not suggest any single product for you. But you can go ahead with the anyone from selected one. You no need to mention about your accidental and health insurance coverage while buying term insurance. But you must share all your life insurance products which are in exist.

          Reply
          • As you said “you must share all your life insurance products which are in exist”, do we need to share our endowment policies from LIC?
            I have only 2 endowment policies which are going to complete in 2 years. I am planning to buy a term insurance for now. Thanks for your help Basu.

            Reply
            • Sachin-YES, you must share existing endowment policies from LIC.

              Reply
  147. Dear Basu,
    Thanks for the very detailed and clear article.

    I wanted to check with you about the following:

    I am 31 years old, Non-smoker, fitness enthusiast and work out well, but I have taken an Online term insurance with SBI e-Shield 2 years back and pay almost ~Rs 14,500 annually.

    Does it make sense for me to get rid of it and take a new plan for greater no. of years of coverage and also look at the possibility of reducing my premium alongside looking at increasing the no. of years of coverage?

    Kindly suggest.

    Thanks in advance.

    Best regards
    Sai

    Reply
    • Sai-Term must be equal to your remaining working age. If you feel the existing insurance premium is high, then try with other options. Once you receive the term insurance, then go ahead for cancellation.

      Reply
  148. DEAR Basavaraj Tonagatti,

    good article on term insurence also i want to highlight some points most of the compaines wont provide claims if the poilicyholder expired in SEA ( crusise or ships etc), and many compaines not acceptiong term insurence policy for NRI.

    Reply
    • Dolphy-Thanks for sharing. But you have to check policy wordings before accepting.

      Reply
      • Mr.Dolphy, I don’t think any problem in issuing term policies to NRI’s, I met two officials from HDFC and ICICI to finalise my policy.
        HDFC official said- For NRI’s there is no service charge and hence the premium is cheaper but ICICI didn’t agree and asked for some time to clarify from their management.
        Mr.Basu can you please shed some light on this issue?
        Is it true what HDFC claims?
        I went to their corporate offices directly and they say no brokerage(commission) is involved as it is direct from the corporate office.
        Kindly clarify.
        Thanks

        Reply
        • Josy-No brokerage as it is ONLINE plan. But service charge of what? Can you elaborate which charges you are pointing?

          Reply
          • Sorry for the wrong wording….
            I am in approach with corporate office directly,(not Online!!) therefore no brokerage…. according to them!.
            If you are an NRI then Premium minus SERVICE TAX.
            Correct me please if I am wrong

            Reply
            • Josy-Yes, NRIs are exempt from service tax on Life Insurance Premium.

              Reply
              • Thanks Basu

                Reply
  149. Sir, will you be making a similar article for health insurance plans?

    Reply
  150. Sir
    I am also looking for a certificate course to work as a financial advisor.I lives in Pune.Do U know any information about a well-known institute at Pune.
    Please give me proper gudiance

    Reply
    • Guruprasad-I am not aware of anyone in Pune. But the teacher under whom I trained now conducting online courses. If you are interested, then I can share her number to you.

      Reply
      • Why not I really intersted please share contact as early as possible

        Reply
        • Guruprasad-Her name is Mrs.Padmalochini and her number is 99802 89155.

          Reply
  151. Superb and crystal clear post sir. Thank you very much.
    Anshuman Panda

    Reply
  152. HI Basu
    Thank you very much for the great post. It was very informative.

    I have some doubts,

    1. Why you are recommending to buy policies without riders? Is it due to less premium?

    2. Who will bear the cost of medical examination? In case of I decided to purchase ICICI term insurance?

    3. If I’m purchasing this online, whether the policy will start from that moment or only after completing the documents and checkup?

    4.what is minimum /maximum sum assured?

    Sorry for making the list very long.

    Thanks in advance.

    Reply
    • Hari-1) Because those riders can be bought easily with more features at the cheaper rate from general insurer.
      2) Whether it is ICICI or other insurer, while buying if the proposal is accepted by you and insurance company, then company will bear the medical cost.
      3) Policy will commence once the insurance company accept it and issue your proposal.
      4) I already explained above for few products. For rest, you have to check.

      Reply
  153. Dear sir

    In term insurance few companies offer Premium return protection plan.
    How we can judge the comparison in both & which stands better in all parameters.
    Ex. in logic if think about this type of plan providing risk coverage to life & after completion of term every thing goes OK and no claim from the insurer side then atleast we get paid back of our premium its one type of return to our assets.
    we would like to hear from you what are the pros & cons. & which will stood the best.

    Reply
    • Rajik-Whether you compared the premium rates of plain plan to this return of premium?? They are more smarter than you and charge higher for return of premium. Then where is the question of you into profit? Calculate the time value of money.

      Reply
  154. Good day

    You mentioned , will get better-featured covers from general insurers regarding accidental and critical illness covers.
    What do you mean by Generak insurers and what are some of the examples of it ?

    Reply
    • Sachin-All general insurance companies and standalone health insurers offer you such plans which are very much attractive than these riders.

      Reply
  155. Dear sir, your article is very knowledgeable .
    Sir I taked a online term plan from maxlife with monthly income plan .
    Sir should I change a simple online plan or continue with this plan.
    Are you not think that monthly plan is a good rider. Please suggest me.
    Thanks in advance

    Reply
    • Harmohan-Never opt for these fancy add on. Buy simple term plans. I don’t think modification possible. However, check with insurer for the same.

      Reply
  156. I find Max Life Online Term plan to be providing same benefits as that of its counterparts at a lower price. However, I am skeptical on buying it since I have read that they are going to merge into a single entity as HDFC Life. What will happen in this case if I buy Max Life Online Term plan? Will it be automatically moved to HDFC life once the merger completes? Will there be any change in the premium once HDFC life becomes the insurer?
    http://economictimes.indiatimes.com/news/hdfc-max-group-merge-life-insurance-businesses-to-create-company-worth-rs-67000-crore/articleshow/53606911.cms

    Reply
      • Hello sir i am confused between Max life and hdfc 3d plus term insurance. Please suggest safe and best. Thank u

        Reply
        • Dear Guddu,
          Both are equally good. Go ahead with the one which can be affordable for you.

          Reply
          • Sir what would you choose between both

            Reply

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