Best Term Insurance plans in India (After 1st Jan 2014)

After the implementation of new IRDA regulations and LIC’s new term plans launch, lot of readers inquired me about recommending the best terms plans. Hence I thought to list them with providing the latest claim settlement ratio data too.

First I thought to once again bring you to the notice of latest claim settlement ratio of all insurers. This will makes you bit easier in selecting or shortlisting the plan. Below is the latest data.


1) MY latest post “Best online Term Insurance Plans in India for 2015-A comparative list“.

2) IRDA claim settlement ratio report for 2013-14 available at my recent post “IRDA Claim Settlement Ratio 2013-2014-Which is best Life Insurance Company?

Latest News !!!

Source: IRDA Annual Report 2012-13
Source: IRDA Annual Report 2012-13

You notice that LIC still maintaining the top. But as this data does not differentiate between claims settled of term insurance to other plans, it is difficult to believe which company settled highest term insurance claims. But still the overall picture of this data will be helpful in selecting the plan.

In below sheet, I tried to capture the term insurance plan data of all companies, but due to recent IRDA regulations, few companies still not came up with term plans. Hence they are showing as “NA”. Also almost all private insurers these days offering online term plans which is not the case with LIC. But many insurance buyers have so much faith in LIC. Hence I retained it’s offline Term Plan quote on top. I tried to differentiate the product based on availability like whether the plan is available online or not and whether plans offers any extra riders or not.

But to be frank while you are buying term plans then neglecting the product only because it not offer you other riders will not be a good decision. Because such riders are easily available in market separately with general insurance companies. Hence choose the plan purely on life risk point of view.

Best Term Insurance plans in India (After 1st Jan 2014)

Note-Above quotes are for 30 years old, healthy and non smoker.

From above list you notice that LIC Term Plan still costly (after it reduced premium from it’s old term plan). But other insurers are quoting very competitive price. Hope the above information will make your life easier in selecting the plan. But do remember that these are indicative price. Prices may change based on individual.


662 Responses

  1. Are premium rates for term policy at HDFC or ICICI from Policy Bazar same as that purchased online from HDFC or ICICI ?

      1. Thanks Basuji.
        Also can you let me know how is MAX LIFE compared to ICICI/HDFC , knowing that MAX LIFE premium is low…………. but not sure of ratings in other parameters like Claims paid/settled, claim nos, their services, their Pay out time etc.

  2. Hi Sir,
    Thanks for helping alot of people like us.
    I had applied for 1 crore ICICI life term plan for 15427 but I also disclosed that I don’t have Asthma at the moment but I had 3-4 times in past 4 years, that too in very cold condition when I was on visit to USA. but despite that they increase my premium tp 21700rs/year.
    1) Should I go for HDFC and not declare that I have Asthma and not declare that I have rejected policy with extra premium? (because i happened rarely to me in past), I was probably more honest.
    2) Should I go for Max or HDFC and hope that they after disclosing my Asthma, they will realize that its rare event that happened because I was on foreign trip. They hopefuly will increase the premium but may be not 35% because of something that happened few years back, that to very very mild.

    Please help me out.

  3. Hi ,

    Thanks for keeping us educated. I am following your posts for a couple of years now. Would like to seek your opinion on “Aegon Life iIncome Insurance Plan” review.

  4. Hello,
    I am 31 yeas of age, married.
    I have LIC offline 25 lakhs cover + SBI eshield 50 lakhs cover.(accidental rider of 50 lakh).
    I want to increase my cover.
    Should I stop my LIC offline and start LIC online term plan.
    Is it better to have 2-3 term plans from different companies or one should go for only one company.

    1. Shashank-Yes, it is better to switch to online LIC plan. But don’t cancel the existing one before you get the new one. Better to reduce the number of term insurance plans. Hence, try to buy a bigger sum assured from only one insurer.

  5. Sir, Im 20 years old.I want to take term insurance policy as i have no experience in this area can you pls help me out.i can pay upto 10000 per month and i want 10 years period .which policy better for me and how much cover i end up with after 10 years??

  6. Dear Sir,

    I am looking for term plan of 1 cr. but confused on policy term. Should it be 35 / 40 or upto 75 year of age.
    Also is Aegon iterm plan good to consider for buying ?

    I am pretty much confused between policy term and company to go with because if I choose 35 year term then Max is best option but if I want policy term of 40 year of upto age of 75 year then Aegon is one of the option. I know Aegon previous CSR is not quite good ? so is it good choice to go ahead with Aegon upto 75 year of age.

  7. My Mother is 59 years old, home maker and good health. Rent Income and FD Interest income are her income sources. Whether will it be okay to take term insurance policy.
    If not term insurance policy, then what policy she can take.

  8. hi,

    I want to buy 1 crore term insurance plan. After My research I have 2 option, But I am confuse could you help me
    1) Max life insurance:- 1 crore + 40000 p.m. for 10 years for my family all this benefit they provide in 15,ooo p.a.
    2) Hdfc:- 1crore insurance they provide in 13200 p.a.

    Should I go with Max Life Insurance . Their claim settlement ratio also good last 5 years(Between 91% to 96%).
    What about company?

  9. Hello,

    Under new 2015 regulations, life insurance companies cannot reject claim after three years. But what happens for existing cases – say if someone had bought policy in 2012? Will it apply retrospectively? Or three years would be counted from the date when this new regulation came into force? Which means late 2018.

    Your guidance would be appreciated.

  10. Dear Basavaraj,

    I have been an avid reader of your blog and first and foremost thankful to you for helping and guiding us. My name is Ashish and i am 35 years salaried living in Mumbai and my gross is 7.2 Lac. I had applied for ICICI Lombard iProtect Plus with 50Lac Term+Accident Rider 50Lac & Critical Illness of 5 Lac. However, My agent while filling the form dint let me select “diabetes” and said they don’t give insurance to Diabetic people. Though the fact is i have it above boarder line (140 fasting/170 post meal) since Aug 2014. I also have asthma since 2004 for which i take a inhaler at times. In past, i have had Gastritis and jaundis however now i’m fine with it and its no longer any problem apart from above 2 (Diabetes and Asthma). Same day i read your article and next day i cancelled my application as i felt my data was not an honest one and its no point continuing where the base is built on an incomplete information.
    I then applied for HDFC Click2protect for a 50Lac (monthly payout option) and here i mentioned all details. I paid the premium 7525 and they got my following medical test done

    Medical Examination Report
    Midstream Urine Analysis
    Fasting Blood Sugar
    Serum Cholesterol
    Complete Haemogram
    Urine Cotinine

    After all test, they have come back with “Rate up Proposal” because of Diabetes and Asthma, where in they have doubled my premium to 15050 for same sum assured (50 lac SI: Monthly payout – 5Lac+ 25K monthly X 15 Years) Now i’m confused weather shall i continue with their Proposal (HDFC Life) or look for another option (MaxLife looks another good option) however i’m not sure if they too will increase my premium considering above factors. Pls guide what should i do.

      1. Dear Basavaraj,

        Thanks for your prompt reply. I kept searching your blog’s for an answer but I must be on wrong page. I understand an incremental premium however double the premium looks a little unjustified. Do all of them do the same…

  11. Dear Mr. Basavraj,

    I want to buy a term insurance coverage Rs. One Cr., and I am not able to finalised a plan between ICICI Iprotect Smart & HDFC Life Click 2Protect.

    kindly suggest me to finalised.

  12. Sir I am 40 yrs old private firm employee seeking for term plan
    What better HDFC Click 2 Plus is offering than max life as its term plan is costly

  13. I am working for a private firm and retiring in april 2018. Pls suggest a term plan which is suitable to me at least till 75/80 years.. My option is to pay on an annual basis. What are the other formalities while taking the term insurance on line>>

  14. I am planing to take terms Insurance with HDFC. There was no question in their application form or annexure asking for Medical History of my Parents. Should we disclose the medical history of parents as a separate annexure to avoid rejection of claim due to parental history. Please advise.

  15. Hi

    I am 31 years old. I want to buy a term insurance for my mother. She is 53 years of age now.

    I have zeroed in on ICICI ismart plan.

    Can you please guide me on what aspects do i need to look into for selecting my plan.(or any other better plans)

    Also my mother is a home maker and i will be paying the premium for her, am i elgible to get tax benefit for the paid premium amount?


      1. could you please explain why term insurance is not needed for mother at 54.The related cons, and alternatives to term insurance

        1. Kairav-Why you look for risk mitigating tool called Life INSURANCE? When you have financial obligations like dependents or loans. When you don’t have such situation, then it is not mandatory for all to have insurance. For mother at 54 years age, I feel not working and no financial dependents. Hence, it is not required. Also, if one is no income, then no insurance company will issue a policy of Rs.1 lakh too.

  16. Hi,

    I am NRI now and getting salary in USA.In term insurance,they are asking for Salary right, So should i give my USA salary converted into INR ? or i should give my Old Indian salary which i was getting while i was india ?

    Why i am asking this is : In USA salary โ€“ if you convert it will be 30 lak + , So we can get Extra sum assured right ? But later on after 2 years if i come back to india,my salary will be lessโ€ฆ

    So how the sum assured will be taken care ?

  17. Dear Sir,
    I am 28 years old. Initially I though of taking term plan for 40 years but now I am thinking taking term plan for 32 years ( 28+32 = 60 ) and investing difference amount in equity SIP ( 500 rupee/month ) for 32 year.

    Do you think this is good idea ? Also thinking of taking term plan from Max life.

    Also from you side which one I shall pick HDFC/Max/Kotak/Ageon ?

    Kindly provide your comment

    Best regards,

  18. Hi,

    I’m a heart patient. I got a chest pain a year back, when angeo is done got an blockage of 40% in one vein after that no pain at all and leaving healthy life.

    Recently I tried in HDFC, ICICI & Aegon for Term plans, I have disclosed this all in policy form

    But post medical, ICICI & Aegon both rejected my proposal, medical reports provided by them to me are OK, but both the proposal are rejected based on past medical History

    Even a week back I tried for Money back in Reliance that also got rejected.

    As of now I have two mediclaim policies, one is provided by Employer and one from Appllo which I bought 2 years ago.

    Please help me to get insured.


  19. Dear Sir,
    I am in process of purchasing term insurance. I am 42 years old. I zeroed in HDFC’s click 2 protect plus with an annual premium of more than 40000. One of my colleague who is agent for Max life says I took wrong decision. He says Max life provides same policy for less than 30000. I am confused now as which policy to take. Could you guide me please.

      1. Thanks Sir.
        Very much relieving answer. Only doubt was, why there is so much variation in premiums between companies.
        And are the companies offering lesser premiums less reliable ?

  20. Dear Basavaraj,

    I have gone through your post.But still i am confused on which term insurance should i opt.
    I am 28 years old Male,Single and have dependent Parents.My annual income is 8 Lakhs, I have decided to take 1 CR term plan, confused to go with sbi or hdfc. SBi is offering max tenure of 30 years and HDFC for 40 years. Which one should i opt as hdfc is having less premium and more tenure,please suggest.

  21. Dear Sir,
    I am 35 years old male. Kindly let me know the best term insurance plan for the period of almost 40 years with the facility of total permanant disability rider and facility of return of premium too.

  22. Hi Basu,

    I am 35 years old, current CTC is 11 lakhs. I have taken term insurance for 1 crore from HDFC for 25 yeras. I want to take accidental insurance for 1 crore. Please suggest me the best general insurance company for the same.

    Thank you.

  23. Sir,i have a personal accidental policy from of 25 lacs from icici lombard recently.
    Now i want to go for iciciicare2 with rider of accidental benefit.In case of any mishappening in next 1 yr,my family would claim for both,but i want to know will my individual personal accidental policy be rejected,as i would have icici term with accidental benefit.
    I want to clear,as accidental part is in both individual and associated with term,both will be payed or not?

  24. my wife is 50 years old, is a diabetic, had a spine surgery few months ago and also an angioplasty with implants of stents. she is earning about 25k per month. can she take a hdfc life click2plus policy. will life cover be given to her ?please reply asap. thanx.what about medical tests?

  25. Hi Sir,

    I took a policy of HDFC click2protect plus but I withdraw policy for some reason ( looking for better option ). At that time I was taking pills for some issue and regarding same I dropped mail to hdfc. Suppose Iโ€™ll again take policy of hdfc click2protect plus so my old cancelled policy or mail communication regarding pills can impact my new policy or can this impact my new policy claim settlement ?

    1. Enquiry-While you buying the new policy, you have to mention that you proposed the policy and later on withdrawn. Also, during that period you are on medication. This clears your doubts. Hiding may increase suspicious.

  26. can i buy term insurance when i am outside India? since i am an NRE?
    Is there joint term life insurance where my spouse and myself can be insured in one insurance?

  27. Sir I am 32year old and undergone angioplasty surgery 4 years back I want to purchase aterm policy for about 40 to 50 lakhs my monthly income is 28500 rs is it possible to purchase the policy

  28. Hello, I am looking for pure term insurance policy for SA 1 crore, which can include permanent disability and also cover
    loss of life due to natural calamities, terrorist attack etc. Can you please suggest which is good insurance company to go for. I have been looking at HDFC/ICICI/KOTAK. Some other insurance company have low premium compare to these, so are they really safe?

    Thank you looking into my query, Jasvant

  29. Hello Basu Sir,

    I am a smoker looking for a term plan of Rs 1 cr. Need to decide between HDFC Click to protect or Lic e-term. There is substantial difference between the premiums for both.

    Thanks, Akshay

  30. Hi. This is Virendra. I am looking for a term plan with option for waiver of premium in case of permanent disability. I have chosen Kotak Preferred ETerm Plan, which has this option, and which has more than 90% Claim Settlement Ratio in FY 2013-14. Kindly suggest whether it is good as other options like ICICI iProtect, HDFC Click 2 Protect, SBI eshield, Max Life Insurance, etc. don’t have this option, which I think is must while taking term insurance. I have heard a lot about HDFC plan, but it doesn’t have waiver of premium in case of Permanent Disability.

    Also, whether i should take 2 policies of 50 lakhs each or only 1 policy of 1 crore, and if 2 policies, then from same company or two different companies.

    Thanks and regards

  31. Dear Basavaraj,

    I’m aged 34, non-smoker. I’ve gone through many websites (including yours) in search of a best term insurance plan for myself. I have zeroed in on Max Life Insurance for SA 50L, term-30/35 years (premium lesser compared to other companies – LIC, SBI, HDFC, ICICI). Kindly suggest if Max is okay to go ahead with.

    Thanks & Regards,

  32. Hi,
    I myself wanted to buy a term insurance policy, my needs are as following :-

    1) i need a cover of 1 cr.
    2) i need maximum term.

    as of my knowledge, there are only two companies suiting my criteria

    1) AegonReligare.
    2) Edelwiss Tokiyo.

    i am a smoker, of 28 yrs age and single.

    as far i know most companies willing to insure you till the age of 75.

    only one more than 75 i.e. for 80 yrs of age which is tokiyo

    and private players like icici , hdfc will cover till 65 only

    LIC can cover also cover till 75.

    but talking in terms of premium, LIC charges highest, followed by HDFC & ICICI and lastly Tokiyo

    now talking about claim settlement ratio, LIC has highest around 98, HDFC has 97, ICICI has 96, Aegon has 90 and Tokiyo has 50.

    point to be noted is :- term insurance is not meant for you but your dependents and afterwards, so one thing which should be kept be in mind is claim settlement ratio, but as far as IRDA which doesnt provide such ratio for term insurance, there is big mess in the market and all are taking advantage of it to some extent.

    second point is premium which you need to pay.

    so keeping in mind these two factors, aegon fits well.

    now one more thing to notice

    most of the companies which are in insurance market, especially term insurance are new and only due to entry of such new players, premium has came down( where it should be actually, same thing happened in telecom sector, few yrs back as one may compare ) we may actually see, it coming futher down in future ( one may logically think such because compared to offline, online term plans are much cheaper only coz of that)

    now as per IRDA rules, which one should know, kindly correct me if i am wrong :-

    1) No company has the right the right to reject claim based on false info (regarding health) if policy continues for more than 3 years ( which is logical since most companies are taking medical test that too on their own(cost- if policy is accepted and if rejected they deduct the cost of money).

    2)IRDA only collects 2000 crores as a safety bond with them from each insurance company ( this is my concern as many others also raised question on what will happen to their policies if pvt companies goes bank corrupt, answer to which is :- this 2000 crore rupees will be divided among all X or Y

    X- Total no. of policy holders of that company

    Y- actual no. of claimed settlements out of total policy holders

    now interesting this is, for both X & Y, you will be getting only few hundred rupees ( considering the fact that no. of policy holders of that company will be in lakhs atleast ( as already LIC has crores of customer(for terms, i dont know) but HDFC and ICICI do have tens of lakhs of policy holders ) ๐Ÿ˜›

    another interesting thing to notice :-

    nobody , to which i actually mean none , is ready to give the actual statistics of their policies claimed and rejected, and in particular the reasons of it, and i only wanted to know common reasons of rejections.

    kindly help me, if anybody can enlighten me and suggest me a good policy for myself

    all this info i gathered in last week time.


    if anybody can take my advise :0


    they are most idiotic people i came to talk in last week’s time, none understanding my need AND ONLY WILLING TO EARN THEIR COMMISSION forcing me to readily come online and sell me policy :X

    one more thing which i think everybody should know

    buying a policy does include some commission which is payable to the person who makes you buy policy ( either thru directly company’s website or thru their websites like only HDFC has mentioned on their website to actually reduce this margin money from your premium if bought directly from their website, so if anybody who is willing to buy a policy other than HDFC, kindly buy from one, who was most kind to you, patient to hear to every thing you wanted to say and solve all your queries, as i think only good one deserve the margin which anyway you will be paying.

    also dear mr Basavaraj Tonagatti , first of all, i am personally very delighted by the work which you are doing and thankful also.

    and to one question which you asked to one guy and may be asking to me also, which is why i am opting for tokio :-
    it is only company which is offering maturity age of 80 yrs, and taking in to consideration todays lifestyle and every other thing, i just want to make sure, that my hard earned money does not goes in to vein(company’s account) instead to my family.

    And dear Mr Basavaraj Tonagatti,

    Please reply to this post and share your ideas, and i would like to take your help on financial planning. please be kind enough to share you email id alteast.



    [email protected]

    1. sorry but i have not taken in account other insurance companies as none other were suiting my personal criteria ๐Ÿ™

    2. Somesh-Well researched ๐Ÿ™‚ As usual, few cross questions…how you arrived at Rs.1 Cr term insurance? Do you really need term insruance once you start your retireement? You aim of opting for long term is to get benefit from term insruance and not making your premium invain. But do you know the value of this premium you pay totally or the Rs.1 Cr Sum Assured when you attain the age of 65 or 70 Yrs of age? Rs.1 Cr will be just a meager amount at that time. Price difference in their product is purely a call of company and the acturies. So we can’t say on what base they arrived at these prices.
      No company has the right to reject claim after 3 years? They have 100000 reasons to reject your cliam. Because there are 100000 reasons for death of insured. Hence even though you under went medical check up, don’t be in wrong belief that after 3 years they never reject claim. Where you heard the theory of Rs.2,000 Cr? IRDA not collects lump sum from all insurers. But there is something called solvency ratio which insurance companies keep it with IRDA and this will be helpful in case company shuts it’s doors. Again this sum is vary and goes on increasing as and when the business volume grows. Policybazar? I already written a post on their business module. Please dig my earlier post and you get the info ๐Ÿ™‚ HDFC Life is the main company who tied up with not only policy bazaar but with many individual agents. Agents refer to theri client about online term insurance. People buy thinking that they saved by buying it online. In back end HDFC pays commission to these agents ๐Ÿ™‚

      So including LIC all are for business but not for any social service. Be careful while buying.

    3. Dear Basu,

      I am A 25 years old male. I am looking for the online term plans. I have a doubt while buying online policy, hope you will help me out for the same.

      If Insured died his natural death and he did not got any medical aid neither hospitalisation nor any first aid , so in this situation his family would not be having any medical summary of the insured. while applying for the claim most of the companies asked for submitting the medical summary/last medical attended (LMA)/Attending Physician’s statement for the cause of death/any certificate issued by medical practitioner clarifying the cause of death of the insured.
      So in this case (In absence of any medical history by doctors/hospitals)would the nominee be eligible for gerting the claim amount..

      Thanks in advance

      1. Harshit-It is the doctor who declares the death. Hence, the certificate from such professionals required as a proof. Medical summary not required when the death occurs suddenly. Also, do remember that there are millions of reasons for one’s death but we are predicting the few thousands. Hence, it is better to do your facts properly and share the information with your dependents like how to proceed in case of death.

  33. Hi dear,, I have a question, which probably many of folks wanting to take term plan have…In India, Date of birth certificates is an issue. In many cases, actual date of birth is different than one mentioned in birth certificate or school certificates. The insurer had no role in such changes made by their parents. Also, actual date of birth might not have any proof and the person have lived his life with a different date of birth all along….I mean taking advantages or dis advantages of the changed DoB.

    What should be done in this case? Should both the dates declared to Insurance company? Where as proof exist only for changed DoB.

    can this non disclosure be treated by insurer as non disclosure of material facts and resulting into no claim? As the basic purpose of Term Insurance is defeated if claim is rejected for any such reason.

    Please advise?


  34. i dont know what happened but already posted.

    useful information…

    are housewives non working women eligible to purchase term plan on the basis of husband income proof ?

  35. Hello Basavaraj Sir,
    After reading your blogs and other websites I made my father (age 50) decide to take a Term insurance Plan.
    Now we are confused about a point.
    Icici and HDFC we found that the premiums are higher. So we have decided to take any one between Kotak and Reliance Life .
    Also Reliance website says it has a Claim settlement ratio of 94.5% and also guaranteed claim settlement in 12 days. In kotak there was no mention of claims at all.But kotak has got permanent disability waiver scheme.
    Which one do u prefer ?

  36. Very useful info Mr. Basavaraj. My question is the following. I am an expat leaving in India since 2009. I have a PAN and submitting my tax form annually. All these years I am in India with employment visa and my family with dependent. I enquired several insurance companies for term insurance plans and all were saying that is possible but when I was asking in writing to get that since I am a foreigner in case of death my family will get the settled amount wherever they are, no one was providing till a nice person from HDFC told me that is not possible and the underwriter is not accepting it since I am not indian. In the past people from HDFC and other insurance companies had assured me that is possible and have just to pay the premium and proceed.

    Where is the truth lying? Can you please provide me with an answer and give also your suggestion. I am interested for pure term insurance meaning to pay a premium like you are paying for car insurance, if possible to have a rider also for the case of full/partial disability. My age is 43 and interested for 20-25 years. thank you.

  37. Good Morning Basavaraj Sir,

    This blog & Q-A are reaally useful for me & i guess many other alike me who are new to Insurance & Investment. I want to thanks you for your useful TIPS & also require some advices from you.

    Sir, i’am a Banker & Earning 4lac per annum & I’am 33 years old now. Want to buy a pure term insurance of 50lacs, where i’am confused between LIC e-term & HDFC Click to Protect Plus (reason of confusion is a claim settlement ). Please suggest me which one should i go for. Recently i bought i LIC’s Jeevan Anand Policy of 5lac which gives cover of 10lacs whoes monthly premium is around Rs.2000, should i continue with this..?

    Another few Question please reply for all:
    1. Why you always suggest tenure for term plan should be kept as till our Retirement Year, what is the draw back if i have a longer tenure’s term plan.

    2. Why you always suggest not to go for any Rider’s if it is available with any term plan. Why to go for plain term plan when companies are giving some other benefit with a rise of little in premium.

    Waiting for your reply’s & Suggestion.

    Thanking You Sir.

  38. Hi,
    As I heard that if you have 2 – term insurance then you must notify both the companies about the plans that you have purchased.

    is this true?

    If yes, then in case if i have some conventional + Term LIC policy (In this case i do have LIC Jeevan Anand policy) then should i inform to LIC as well about my term plan?

    Can you please provide more details about this ?

  39. Sir,
    Your blog is very useful. Most of my queries got resolved while going through above Q&A.

    Sir I want to take term plan of SA 1.5 crores. I find HDFC click 2 protect plus is good option. But I have some apprehensions whether to rely on singe policy for such large SA. Can you please guide me whether I should go ahead with HDFC or consider multiple policy providers. And in case you suggest to go for multiple policies, can you please advise which policies shall I take.


  40. I am 46 yrs old.I am in private job.I want to purchase insurance of 1 crore Rs.I want to know which plan will be suitable either term plan or offline plan or retirement plan.Payment should be received on death as well as maturity.The premium should be the lowest.

  41. Hello Sir,

    HDFC Life’s Click2Protect and Reliance’s online term, death benefit is mentioned as
    “Death Benefit
    In the unfortunate event of demise of the Life Assured during the policy term and
    provided the policy is in force as on date of death, the nominee will receive the
    maximum of:
    Sum Assured; or
    10 times Annualised Premium; or
    105% of the premiu”

    Highest of:
    โ€ข 10 times the annualized premium
    โ€ข 105% of all the premiums paid as on date of death
    โ€ข Sum Assured

    Does it mean they actually don’t pay 50Lakhs(for example a person buys a 50L policy) on that person’s death ?

  42. Hello Basu ji,

    I am 29 year old married individual with an annual income of 3.75L. I am about to invest in a term insurance plan worth Rs. 50L from Max Life (with monthly income of 20k)/ SBI Life after reading your valuable suggestions here. Was just wondering that as an alternative to these pure term plan , is there any plan which can give me a steady income post retirement? Or is there a completely different product for the same?
    Also, is it beneficial to go buy an add-on accidental rider with term plan, or better to go for separate rider? Also, do such accidental insurance rider/plan beneficial in cases of partial dismemberment, apart from death?


    1. Abhishek-First keep in mind that to separate your insurance need with investment need. So keep aside the retirement cash flow. Buy term insurance. Sadly there is no such retirement product in India which we can say BEST. So you need to create your retirement corpus. I suggest you to buy separate accidental insurance from general insurance companies.

    2. Also wanted to know if there is any aspect of security/trust related to acquiring term plans from govt backed companies (LIC/SBI) or private companies, am asking this question as term plan being a long term engagement, there MIGHT be a probability of a particular private company shutting down… So in case such an event happens, then what are the options left with the premium paying individual?

      1. Thanks for your response, Basuji! You are the best! ๐Ÿ™‚

        Also, as asked in my second post, is there any danger of private insurance companies shutting down in the span of 30-35 years?

  43. sir

    i m 34 years old my yearly income is 4 lac can i buy 1 carore term plan and if after 2 years sudden death and that time i have no any income than claim setlment time required IT proof of that year (death year)……

    1. Gpparmar-Usually insurance companies offer you around 15-25 times of your yearly income. So whether you are eligible for Rs.1 Cr income depends on income, health and other information you provide with insurance company. No during claim settlement IT proof of insured not required. It is only required during buying. So after buying insurance if your income comes down then too no problem.

  44. Sir,
    I want to buy online term plan for Rs. 1 crore. I am confused between reliance online term plan and Bharti Axa online term plan. Kindly suggest which plan is best.
    Awaiting your reply.

        1. Rajiv-All ๐Ÿ™‚ If company is comfortable to you, plan features matches your requirement and within your budget. Also do remember that they are best only in case you disclose all facts properly.

  45. Currently I am planning to buy pure term plan.
    I am confused on 2 plans,which is plan is best for me.
    LIC eterm or ICICI Icare term paln.
    Can you please help which will be best plan. I am 30 years old.

    1. Dear Rajendra,

      As suggested by the admin, you may consider our online term plan?? ICICI Pru iCare II or also look at our other online term plan iProtect (Link: Here are few points for your consideration:

      1) ICICI Prudential Lifeโ€™s claim record: We are committed to honour all claims quickly and fairly. As per IRDAโ€™s annual report for FY14, ICICI Prudential Life Insurance Company’s claims settlement ratio is one of the best in the industry at 94.1%

      2) With iProtect, you have the advantage of a lower premium if you do not consumer tobacco. With iCare II you have the advantage of no medical test if you are age is 50 years or less and you opt for a cover of up to Rs. 1 Crore. You also have the option of paying premiums monthly, half yearly or annually.

      If you need more details on either iProtect or iCare II, you can fill your details here and we will have one of our experts contact you to assist you with your queries.
      Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

      ICICI Prudential Life Insurance

  46. Sir, I want to go for Reliance online term plan. I am living in Ferozepur City, PUNJAB. But when I am trying to fill the online application form in mailing address my city is not available. I have to select the Moga(nearest city). Then I have to click the option “My mailing address is not same the permanent address”. Then form opened for permanent address in which Ferozepur city is available. But after filling the complete form it’s showing my complete address with Moga City. Reliance representative are saying that no problem with the same.
    Can I go for reliance online term plan. I just want to clarify in case of any mis- happening whether company will create any problem for above reason(address problem).
    Please reply.

  47. Dear Basavaraj, thank you so much for this informative article.

    I am 28 and my question is – I am planning to move out of India for a few years and i dont have a term plan right now. If i take a term plan before leaving, will it stay active/hold its T&Cs even if I am out of India OR would they not honour any claim?

    Additionally, would you recommend taking accident insurance instead of a term plan? Please let me know


    1. Mayank-Yes they honour your stay. But better to inform this before leaving India that you are moving. If you are planning to move then it is better to have accident insurance from your next country itself. Because Indian companies I think not honour the accidents of outside India.

  48. Hello Basavaraj ji,

    Good Afternoon. I have recently started to follow you and am really impressed by your commitment. Based on your blod about MF, i have decided to invest in both ELSS funds from this month itself.

    I need you suggestion, regarding Term Plan for myself. I am 30 yr old, turning 31 at the end of this month. I want to buy a Term Insurance plan for amount of one crore, but am unsure deciding between HDFC click to protect plus and Aviva term plan. Can you suggest which is advisable between the two or any other term plan to choose form online? I plan to invest for 30 yrs, till I turn 60.

    PS: I am Male and a non-smoker.

    Awaiting your reply.

    Thank You.


  49. My name is Rishabh, I am 28 yrs old. I want to buy a term plan having life cover of 50 lac.

    my questions,

    1) which should be the duration of the term plan for me?

    20 yrs, 25 yrs OR 30 yrs ???

    2) Which companies term plan is best overall.

    As I research, LIC’s claim settlement ratio is better than any other company.
    but its a little more costly than others…so can we go for other private company or not?

    Which term plan should i buy amoung

    LIC, ICICI ,HDFC click to protect plus, SBI life ???

  50. Hello sir,

    I am 31 years old along with dependents as my wife and three years old daughter. My annual salary is 18 lakhs and holding below LIC policies —

    LIC Jeevan Anand – 11900 (Running from last 8 years)
    LIC Jeevan Anand – 30800 (Running from last 3 years)
    LIC Money Back – 15600 (Running from last 7 years)

    I am having a housing loan of 33 lakhs and therefore looking for a term insurance of 50 Lakhs at this point of time to cover the risk. I have shortlisted AVIVA , HDFC and KOTAK term insurance plans but confused with whom should I go.

    My conversation is going with all three companies and I have mentioned them that I am Type – 2 diabetic aswell. Therefore kindly help me in choosing the right term plan so that any future problems will not come for my family.

      1. I am planning to hold LIC Policies but would like to have a term insurance apart from them. At this point of time , I am looking for term insurance from AVIVA , HDFC or KOTAK but not able to take decision which one would be good.

        Confusion with AVIVA is it is UK based company and if they will wind-up their business in future , what will happen for policy holders ?

  51. Hello Basavraj,

    I am about to buy a Term insurance plan of Max life insurance from one of my relative.
    I will be purchasing Super Term plan policy. Can you please tell me is that a good product to buy?
    Also I want to know what different riders are important to buy.
    I also want to buy Accidental rider, but I am in a dilemma if am buying a term insurance plan, won’t that will take care of my accidental death.
    P.S.- (I am having a medical insurance from my employer for my family of 3 lakhs.)

    Let me know what are the points clarification I should have on my side more.

    Thanks for your help in advance.

    Prasad Shirsat.

  52. Hi Basav,

    I need an insurance plan which will covers accidental death, for injury on accident , medical perceptive .. for minor and senior citizen also or suggest a good plan to my family of five members .

  53. Hi.
    1. I have completed 25 years this October. Will my age be considered as 25 years old or 26 years old? Some say now it will be considered as 26.
    2. What if the company offering me insurance defaults? Are there regulations to take care of such situations?
    3. Being a central government employee and with health benefits under CHSS in my department, do I need to go for additional health insurance plans along with term insurance?
    4. Is there any plan which gives death benefits without considering the type of death. (I assume none would be ready for suicide though:)). If not,then suggest the one with maximum options included.
    5. Can you provide any link detailing why the remaining policy holders are unable to get SA? What are the reasons and situations?

  54. Sir,
    Very interested and knowledge you have shared with the needy individual. Many thanks for this. My question is why the insurance co. passed the claim 100 percent? Why it is up to 96 percent maximum. Which are the reasons for not passing/delay? secondly, why the premium is different for smokers or non smokers! Because cancer/heart decease occurred those who don’t take anything. What about in the case of Khaini/gutka/paan/liquor are these bad habit exempted? before demise how you can ensure that the nominee will get 100 percent SA. is there any SoP or rule book. Please also suggest or make a table as mentioned is any product available during living condition where paying less amount one can get maximum SA, for long term with very minimum return . Many many thanks and warm regards

    1. Ashis-Let us say in all 100 death claims, all will not be genuine and insurers have every right to reject within ambit of their rules. So they try to do for their business gain. But it does not mean that blindly they can reject any claim. So to be at safer side, it is always best to disclose all things at your end. Regarding difference in premium from non smoker to smoker, it is the risk they are ready to take by charging you extra. It is purely underwriter and actuaries decision of company. Regarding other habits you mentioned, they will ask all these too in proposal form itself. Don’t worry they are very much smarter than we normal individuals and they try to garner as much as information from you. Regarding claim guarantee of life insurance before death, maximum you can do-Disclose all facts correctly, pay premium regularly and more important is to share your nominee or dependent regarding how to proceed in case of your absent.

  55. I am planning to buy HDFC Life Click 2 Protect Plus. I am having very little/no knowledge on Insurance/Investment. So my question may look odd, but I have these queries:
    1. Its not clear to me what type of death is eligible for getting the benefit to my family. (Normal death from age or disease is eligible?)
    2. What about Accidental death (may be road accident or so)?
    Somewhere I am getting some information about such and such deaths are not eligible to get the benefit. But unfortunately I am unable to find any list of deaths for eligibility.

    Thanks in advance.

  56. I am 47 and looking to buy a term insurance for 1 to 1.5 crores. I have none right now. I would like to buy one that has the longest coverage – ie up to age 70 to 75 years or more. Which one does this?

  57. Hi, I am planning to take a term insurance plan , but i have a life cover insurance provided by my emplyer too. Do i need to furnish all details about policy from my employer, while purchasing the new plan ?

    please advise.

  58. can i buy 2 seperate term insurance policy with LIC and SBI for 5oL each. the reason is if any one company rejected the claim, my family will get an option to claim another policy. can i have 2 Term policies which can be claimed by my family?

    1. Johnson-Yes you can buy. But while buying second policy you need to mention the existing policy details. In that case insurers have all details, so how can you guarantee that they will not inform the reason for rejection to other company? It is just mental block that few people practice to split term insurance.

  59. hi..i am 27 years old working in govt. sector. i am planning to buy 50 lakhs term insurance plan. Cannot decide which plan to have.

  60. Hello Sir, Thanks for the nice article:

    What does the below mean:
    Single Premium Policies
    Highest of:
    125% of Single Premium
    Sum Assured

    Other than Single Premium Policies
    Highest of:
    10 times the annualized premium
    105% of all the premiums paid as on date of death
    Sum Assured

  61. Dear

    i want to take term plan for 1 Cr.I am 44 years old.

    I feel better to take 2 policies each 50 L.

    is it better

    let me know which companies are good. with good ratio and low premium.

  62. Hi Basavaraj,

    I am planning for a HDFC Click to Protect Plus Plan of 50 lakhs and Reliance 50 lakhs.

    My query is should I buy it directly from their official website or should I consider online agents like Medimanage or policybazaar etc ?


    1. Nirmal-I think Medimanage is not into Life Insurance. They are purely into Health Insurance. Regarding policybazaar, why to go with them? What special treatment or facilities you get? Because this being online term insurance, they better to buy it from by visiting HDFC site. I know they promote more of this product.

  63. Hi, Im 30 year old and earn 9-10 L per annum. I plan to take 1CR term plan. In order to split risk, I though to take 2 different policies instead of one. May be 50 from LIC and 50 from HDFC. Do you think this is a good idea to split policies or should I buy 1 big policy from 1 conpany?

  64. Hi Sir,

    I am 26 years old. I am employed. I would like to apply an term plan online for 1 Cr Please guide me which among LIC or HDFC or SBI best suits me. I would like to consider the maximum tenure possible.

      1. Hello Sir,

        How is LIC the best in this case? I thought HDFC offers the maximum tenure with their newly launched click2protect plus? I’m also looking for a pure term plan. My query is, is it a good idea to buy a term plan for each of us as both are working? How much should the cover be on an average? Our ages – 31 (myself) and 39 (better half) respectively and my husband is a smoker hence worried about the premium amount and how it will be calculated.


        1. Manisha-I never said that LIC alone is BEST. It depends on your budget, feature and comfort with company. Yes, term insurance is very much necessary if your income stream will effect your dependents. So you both must have term insurance. Ideal insurance cover should be 15-20 times of your yearly income+Current values of future financial goals+any existing loans. Regarding your husband’s premium calculation, it is purely a call of underwriter of respective insurance company. So I or we can’t judge or control over it.

          1. Dear Sir,

            I’m looking for a term policy for a term of 30 years with premium payment period less than 5 years. In other words. looking for high coverage with minimum commitment. Jeevan Amrit provided this feature.


  65. Basvaraj,
    I am 40 years old, non-smoker. I am looking out for a Term insurance of 1 to 1.5 cr.

    By birth i have Myocardial briding (It is a heart condition which is benign), doctors have advised him that this is by birth and nothing to worry

    Shall i declare this in the policy? Need your feedback.


  66. I would like to know detailed step by step procedure to check claim settlement ratios of all companies for only term insurance plans.

    Next thing is iammplanning to take Aviva i life term insurance forc1 crore followed by seperate heath insurance .. is it a good idea to go for pure tem policy and seperately for heath insurance

    Can you suggsst me bdst health insurance policies for a yearly premium of 4000 rupees.

    1. Siva-There is no such step involved and also it is a company data which insurance companies share with IRDA and it will publish it. So you are me can’t get such data as of now ๐Ÿ™‚ But which term insurance combines health insurance?

      1. Thank you for the information .after goining through all the policies i chose to go for Maxlife option 1 term insurance plan also to buy online . Im a 32 year old person with wife and two kids 3 year and 7 months old .i would like to know best floater health insurance policy for whole family(considering my job :working as an engineer in merchant navy)

  67. My son passed B tech in 2013 and came in job from June 2013 at present my salary is 10+
    we want to buy on line E-term policy of LIC but unable to give data of income for three years. Kindly tell us we are eligible or not.

  68. Hello,

    Have some question, please clarify –

    1. Is it safe to buy term plan online
    2. Planning to buy HDFC life, How we come to know the genuineness of agent or online website
    3. What are details we should know in the final documents or in terms & condition mainly

    1. Krishna-1) It is very much equally safe like off line.
      2) Better to go for online.
      3) Please go through for a process of buying, you will come to know. All policy terms and conditions will be available in policy documents.

  69. Hi Basavaraj,

    I have a 50 Lacs Amulya Jeevan policy, which I purchased last year through an agent. In the questionair form there was a question: “Have you ever been admitted to a nursing home/hospital for observation, operation….”

    I had undergone a minor surgery of removal of foreskin ( Circumcision) in 2008, which the agent said, not necessary to mention. At that time i did not take it seriously and marked the answer as “No”.

    Just worried, whether i should have mentioned it at that time?. will this lead to rejection in claims in future?.
    Can i get it declared now?

    Please suggest.


      1. Hi,
        the exact que is:
        Have you ever been admitted to any hospital or nursing home for general checkup, observation, treatment or operation.

        no time duration mentionrd. plz suggest


        1. Arth-I doubt it…please check once again the time period they mentioned. Because it is general question which many happen to one’s life from birth to time of buying like at 25 yrs or 30 yrs of age. So how can you say NO if they not mentioned the period?

  70. Hi,

    Excellent comparison and good guide for choosing right term insurance plan.
    I am 33 years old, planning to buy term insurance of 50-60 lacs. I have few queries:

    1. I have shortlisted Max Online term Plan option 1 OR Aviva i Life. which one is better option?
    2. Is the sum assured amount received by beneficiary at the time of untimely death is taxable or full 50 or 60 lacs will be paid to beneficiary.
    3. I heard that only few companies like aviva and some other cover death due to terrorist attack and natural calamity. Is it true, if yes, then should we consider this parameter as well while deciding the company?


    1. Sunil- 1) If the company is comfortable with you and along with that price and features then go ahead.
      2) No death claim will be purely tax free.
      3) Yes it is true that only few companies provide such feature. If you feel it is very much essential then go ahead.

  71. I am 41 years old man. Doing service in a pvt. orgn. I have not taken any term plan. I want to take a policy of SA 1cr. Kindly suggest the best policy which is most beneficial paying a lower premium. What will be my approx. yearly premium for a 1cr. policy.
    Kindly advise.

  72. Hi,

    I need your advice. I have LIC Amulya term insurance 25L with Rs.8600 as premium for 35 years bought in 2009.

    Now I see there are may online term insurance available in much cheaper premium.
    I want to buy 1Cr policy now.

    My question is, should I discontinue the LICs or keep continue it with the new online term plan?

    1. Utpal-First understand how much insurance you need. Based on that it is better to buy online (even with LIC as online term plan is cheaper than offline). Once you have new insurance in your hand then you can close the existing one.

  73. Hello Sir,

    Sir I am 24 year old and want to go for term insurance plan. Sir I want now that is this right time to go for the same OR I should wait for 2 or 3 years ?

    1. SK-You can choose any of the above listed based on your comfort with company, feature and budget. But only think you need to take caution is to disclose all things at your end properly without hiding anything.

  74. Dear Basu Sir,

    I have just one question. Shall we really consider the term period till I am working or I should go for maximum coverage – say upto 75 years? This is to maximize the chances that the family will be benefitted financially in case of demise till age of 75.

    I am 37 years old and have not taken any term plan yet and am keen to take one ASAP.

    Kindly advise.

  75. Hi Sir,

    I am 27 yrs old single and have not bought any insurance for myself till now.Just went through a number of online term insurance plans and found your site mentioning the claim ratio and premiums of various insurance cos.Sir being a non smoker and a salaried person would like to know from you that which would be the best plan to opt for a SA Rs 30-40 lacs.

    Waiting for your reply sir…

  76. Hello sir,

    I am 33 years. To which period shall i take Term Insurance. Tell me about HDFC Click 2 protect Plus – Term Insurance plan. There are different types of Options. and i want specifically option about Income Option, where 10 % of SI will be paid immediately and remaining in 15 years. In this option – premium is less compared to other options. What about your views and opinion.

  77. Hi,

    I am 30 Yr Male. 2-3 months back I applied for LIC e term plan and LIC increased my premium saying that I am a Diabetic. I went to hospital and did my blood sugar test. My Fasting sugar rating is 80 and After fasting is 157. All the doctors are saying that this is not a diabetic ratings. Also I am not taking any medication of diabetics. Now 20 days back I applied for Aviva term insurance where I declared myself as Diabetic due to reference from LIC. Aviva did my medical test at home and in their reports I am normal. But Aviva still increasing my premium saying that I have disclosed my self as diabetic so they will increase the premium.

    Now my question is: Should I mark myself as Diabetic in any new insurance proposal form?Or mark myself as non diabetic in proposal form and let them do the medical test on me?

    I am so confused. Please help.

    My Next option is Max India. Please share some review/advantage/disadvantage about Max India term insurance.


    1. Ram-Before proceeding further first undergo medical test yourself. Based on report consult doctor and ask them whether his condition is declared as diabetic or not. If not then no need to mention while buying. LIC is very much strict in medical examination.

      1. Hi Sir,

        Thank you very much for the reply.

        When I am asking Aviva to tell “Is I am Diabetic” in Aviva medical report? They are not replying this question. They always say that because I disclosed my self Diabetic we have increased your premium. But they are not confirming anything over the email.

        Below are my few doubts:
        1. Should I cancel this AVIVA proposal and Fill new proposal as non diabetic in AVIVA. Because in this proposal instead of 13000 INR they are asking for 32000 INR premium.
        2. Should I cancel this Aviva proposal and fill new proposal as non diabetic in any other company. Request you to please suggest 2-3 good companies. I am thinking for MAX.
        3. In my new proposal do I need to mention this that I cancelled 2 proposal of LIC and AVIVA due to Diabetes and increase in premium.
        4. I also live in Bangalore. Is there any way by which I can meet you face 2 face?
        5. My family size is : I + Wife + 1 Baby(1 Yr old). How term insurance should I take? My Annual sal is 6 L.

        Sir, Please clear my doubts.

        Thanks and Regards,

        1. Hi Basu Sir,

          Actually I am so confused and I am not able to concentrate on other things due to this Term Plan. I more thing is coming into my mind. Now I am thinking to take LIC offline term plan for 50 Lac – 35 Years.

          Sir please reply. Please allow me to meet you personally. Please email me if is there any way by which I can contact you.


  78. Hi,

    I am 32 year old male, looking for Term Insurance for the maximum period time.

    Would you recommend taking term insurance for 10 years first and then at an age of 42 years take term insurance for maximum period like 25 or 30 years.


  79. Hi – Many says Term insurance with Riders are preferables because riders when combined with term are cheaper considering and comparing the same rider benefit in a seperate insuranace. Is this right ? pl help clarifying it.

  80. I need your advice. I have LIC Amulya term insurance 25L with Rs.8600 as premium for 35 years bought in 2009.

    Now I see there are may online term insurance available in much cheaper premium.
    I want to buy 1Cr policy now.

    My question is, should I discontinue the LICs or keep continue it with the new online term plan?

  81. Hello

    I have a term plan of 1 crore from aviva, please let me know if this is a good company or should i try other options and which is the cheapest yet best plan available.

  82. Respected sir,

    i am 38 years old govt employee with contributory pension my annual income is 4 lakhs per present i am having life insurance for rs 5 L in lic please suggest me a good termpolicy with low per your report it is noticed that lic is costlier than others please suggest the best alter natives.i am very happy to have a good adviser like you.


  83. Hi Basavaraj,
    I had earlier (2008) taken an HDFC TAP (Term Assurance Plan) 1) 10L – Premium 4,500, 2) 20L having Premium Rs. 8,300 along with Critical illness rider 10L having Premium Rs. 8700.
    I’m planning to go for HDFC C2Protect of 1 Cr & stopping HDFC TAP, but it is not having critical illness rider.

    So I’m having following options:
    Opt. 1. Go with a small sum assured of 20-25L with Aviva & add an rider of 20-25L and at that time stop the HDFC TAP but I’m not sure how good Aviva is regarding critical illness rider as compared to HDFC.

    Opt. 2. Otherwise not to go with Aviva but at the same time continue a costly option of HDFC

    What are your views?

    Also any other company which is good & has riders (Critical illness)?

    Thanks in advance.

    Appreciate the wonderful job that you are doing.


      1. Yes, that’s a very good suggestion. I can get the same plan only for Health separately.

        But my question still remains, should I close the current HDFC TAP (with critical illness rider) & go for separate with other company (say Aviva health secure: Covering 12 illness)?
        Somehow my perception is HDFC is safe company but the only reason to close is the older policies are costly the the currently available products.


  84. Hi,

    I was undergone Valve replacement operation before 5 yrs. Now I am perfectly doing good with checkup every 4 months . My qurstion is am I eligible to take term insurance. Because HDFC rejected my ULIP plan without informimg reason. Can you please answer my question?

    1. Prakash-Your eligibility depends on how the underwriter see the risk. So each company have it’s own procedure and risk taking ability. Hence I am unable to comment on it. But at the same time, after knowing your health issue they may raise the premium or reduce the sum assured. Hence if you are comfortable with such changes then go ahead and first buy it.

  85. I want to take a term insurance of rs 50 lakh from reliance online term plan as it has the cheapest premium amount compared to others. Will it be a good choice. I am 33 yrs old employee earning 5 lakhs per annum. Ps reply soon sir.

  86. Hi Basavaraj,
    First thank you for such a great forum and boost my knowledge in this field.
    Actually i have 2 queries:-
    1:- I have taken LIC jeevn anand 5 year before for 27 years and before that i have taken kotak ULIP plan 7 years before but i have not declared my kotak information into LIC policy details.Plz suggest me what can i do now ?
    2:-I wanted to withdrawal some amount from LIC jeevan anand ,so can i do that ?

    Bhupesh Kumar

  87. Hi,
    What is the definition of smoker?
    Does anyone who has smoked at some point of time in life will be a smoker or there is any number say >10 cigarettes a year for example.

    thanks for such an informative post Basavaraj


    1. Bill-There is nothing called definition of smoker, but when there is any percentage of proof while undergoing medical test then they consider a person as smoker. If you want to hide then you can. But the probability of problem raises.

      1. But for that loan do i have to pay any interest or something?
        Will it like any other loan or do i need to pay money back to them ??

    AGE = 50 YEARS
    LOOKING FOR An endowment plan or term plan
    My preference is insurance not investment
    Term = 10 yrs
    Cover = 10 lakhs

  89. hi,
    Right now, I am working as an executive. I am planning to buy term insurance preferably online LIC or HDFC click to protect plus. But i am having some confusion regarding the same.

    As i am planning to go abroad for some span like 3-4 years as an student & later for job. Will my insurance cover my life till am there or shall I take when I will back in India.

      1. I am 31 years old.income is 2 lakh per year.I want amulya jivan for 30 years of 25 lakh .tell me sujjestion online ya offline

  90. Hi
    Good Day Sir

    I am planing to take Term Insurance for Sum 1 Cror.
    Is it advisable to diversify my risk to different insurance provider company, so that in the event if one company rejects the claim my dependent will be having hope from other one.

  91. Hello Sir
    I want to know whether one can claim statutory deduction u/s 80C for premiums paid for the Insurance Policies of one’s wife and major adult children (unemployed & dependent).

  92. Sir,
    I want to buy your new HDFC life Click2protect plus insurance plan. I have read the plan brochur but unable to understand what kind of death it covers. Pls let me know does it cover all kinds of death means natural death, accidental dwath, illness death, heavy downpour death, terrorist attack death etc.

  93. dear sir, I am a senior citizen with a married son who is 34 yrs. can I buy term insurance for my son with my wife as nominee. can I claim 80 c benefits for the same ?

    also, can my son claim 80 d benefits for med insurance of mother (15000) plus father (20000), or only one is possible?

    look forward to a response soon,
    with regards, sunil

    1. Sunil-Why can’t your son not able to buy? Whether he is earning or not? You can not claim benefit for this buying. Because your son is major. Yes he can claim benefit for parents medical insurance.

  94. Hi, I was planning to go for HDFC click 2 protect term insurance. Form seems to be completed. It has many sections that doesn’t clarify what to enter even when you want to have loyal information. Can you tell me what does this mean any postponed policy? Any withdrawn policy?

    Apart from this, there were couple of ULIP policies that were me which I have surrendered. Do I need to specify this information?

  95. Hi,

    I am 35 and want to buy term insurance . can you pls. guide me which company I will choose or any best plan .I Have seen KOTAK and AVIVA plan . which company is better to opt . or any suggestion s form your side.

  96. hi,
    have a few queries regarding Term insurance. there any advantage in taking multiple insurances instead of a single high insurance policy?
    For high value policies, health check is mandatory where as for low values it is waived right?
    2. We have to declare any existing policies on application of new policy. Will an existing policy
    increase the premium in new policy? why? case of death will all the policies will be fully paid?
    is their any kind of ceiling? 35 years is the highest duration; which companies offer term plan for more than that duration?
    5.any information given in application, found to be true will lead to cancellation of policy, if found with in
    2 years time. In such cases, will it be notified to the policy holder as soon as identified?
    6. what if the policy holder starts smoking/drinking habits?

    1. Sarma-1) In my view it is just mentality to diversify. But not required if you are going to declare all facts properly at your end.
      2) Yes you need to declare the existing policy details irrespective of insurance company. This is required to arrive at your insurance requirement for new company. No existing policy will not raise premium.
      3) Yes you will receive all policy sum assured opted, there is no ceiling like health insurance.
      4) Usually 35 years is highest. Also once you retire then I don’t think insurance is required to you.
      5) Yes they will inform.
      6) It depends on how the insurance company treats. Because usually they will check during issuing but not after that.

      1. hi,
        thanks for the answers.
        another query that came in to my mind is given below, please let me know what you think on it.

        i apply for a high value policy and the medical checkup results increased the default premium by a few thousands.
        To avoid the extra pay I can cancel the policy and apply for a low sum policy in same company – which does not need any medical check up. On this new low sum assured policy, will they usually offer the normal premium or they calculate a new premium based on the medical results they already have?
        What if I am approaching another insurer? Do they request information from other insurers or share information between them?

        1. Sarma-I don’t know about others, but in LIC they have one specific question related to this where you need to mention like whether your previous proposal was declined or loaded due to health issues or not. So by answering to that they come to know about it. Based on that they again evaluate it and arrive at a decision. If you are approaching to another insurer then it is entirely a new story which again begins freshly ๐Ÿ™‚

  97. Don’t go for any insurance products from Tata AIA. My father who has a poor eyesight was sold an insurance policy that he never wanted. He wanted a single term payment policy for a sum of Rupees Two lakhs and the agent from India Infoline who was selling on behalf of Tata AIG now Tata AIA sold a policy for fifteen years payment of Rupees two lakhs every year just because he could not read. Now when he asked for the policy to be returned they are ready to give only the surrender value….what to do. My father is really sad over this attitude of TATA AIA.

    1. Rajneesh-In your particular case there is no fault of TATA AIA but the agent who sold you and your father’s (who blindly signed and paid the premium). That is a reason it is always advisable to read all offer documents in detail before buying anything.

  98. Hi Basav,

    I took Birla Sun Life dream retirement plan in 2010 Feb (ULIP) plan with an sum assured of 55Lakhs for 28 years. They charge yearly 25400/- for this plan. In case of my death at any time during this 20 years, my family will get 55L / if I am alive at end of 20 years, I will get some amount based on the performance of fund (Enhancer Guaranteed)..No. of units multiplied by unit price on that particular year. Unit price on 2010 was 38 and currently it is rs.44 in July 2014.

    Currently around 13500/yr goes towards insurance cost for 55L (incl. taxes) and rest 11900 is alloted as units on monthly basis.

    My advisor while taking this policy told that the amount invested will triple at end of 28 yrs. Sofar, in these 4+ years I have paid for this policy around 1.08 lakhs and as of today, the policy fund value is Rs.49795 – not even 50% of the amount paid. If I close before 5 year period (before feb 2015), they will deduct around 4k and pay me 45k..

    Please advise sincerely – is it worth continuing this investment further – or to close this and go in for a term insurance and invest separately through MF.. I am not much confident – though the investment might yield returns at end of 28 years, might be able to exceed inflation?

    Thanks a lot for your time. Regards, Magesh

    1. Magesh-The answer lies in your details itself. You are paying Rs.25,400 but the insurance amount will be Rs.13,500. Apart from this they used to have some other expenses to mange your money. So whatever left out from all these will get invested. So hard to grow. Better to come out of plan if you are eligible for surrender without any charges. If you are not confident about equity then why you opted ULIP, which is costlier than typical mutual fund products? Do you feel your adviser will guide you throughout the 28 years of period like when to come out or switch? No….it is your money so you must be at driver seat. Hence suggest you to buy term and invest in mutual funds (if your goal is long term). You don’t know the basics? Then only solution is Learn…Learn…Learn…

      1. Basav – Thanks for your prompt feedback and advise.

        I decided to go with this ULIP when I was not clear on details as well with the false promises of advisor.. I will do the needful to close this current policy.

        Beforehand, kindly advise – a suitable term insurance policy based on below details.

        My CTC is 12.5L, age 35 & my wife is not employed currently. I am planning for a term cover of 1crore for 25 years. Advise if we can go for reduced term coverage plan as well. Does term coverage plan charges based on number of years? Also – do you advise for higher coverage >1c? Currently my employer has 25L death coverage group policy.
        I am an advisor for reliance life insurance co. but not been much active. Do you advise to go with reliance term insurance plans (since I can save on the commision charges)..
        I have total debts of nearly 30L (including loan, jewel loan, debt etc.) My home loan is taken without insurance coverage.
        I have read in your blog that some companies offer term coverage for spouse as well.. my wife is not employed, and is it required to take term coverage for non-worker? Currently there is no policy of any type on my wife’s name.. If not term insurance, do you advise anything for her?

        Appreciate your efforts in creating awareness of financial planning.

        1. Magesh-Sorry for missing your comment ๐Ÿ™‚
          Reduced term coverage is required only in case of any loan. Because it will be helpful as sum assured decrease equally to existing loan amount. But in your case it is not required. Yes term of plan also matters to your premium..higher term higher premium (only in term insurance). My suggestion is to go for Rs.1.5 Cr (exclude your employer coverage). Calculate yourself the difference between Reliance online term plan to offline plan. If difference is around 5% then go ahead with offline (that too only in case your agency completed 5 years, otherwise if you not continue your agency then they forfeit future commission). In case you loans then include that existing amount to coverage requirement. If no one financially dependent on your wife then why term plan? Except insurance she can do all investment (if no financial dependents on her).

  99. Hi Basavaraj,

    For 1cr term insurance for 30yrs I have shortlisted the below plans:

    Max Life:
    1. Basic Life Cover Plan –> 7100 rs

    2. Life Cover + Monthly Income Plan(40k for 10 yrs) –> 9700 rs
    Total Protection Value:1,48,00,000

    3. Life Cover + Increasing Monthly Income Plan(40k,44k..76k for 10 yrs ) –> 10600 rs
    Total protection value: 1,69,60,000


    1. Basic Life Cover Plan –> 7965 rs

    Could you please suggest any one of the above plans.

    K C Rana

      1. Hi
        this is a very useful link but i have a question w.r.t comparisons done here
        are the rating w.r.t claim settlement ratios an apple to apple comparison
        ie., say ICICI Pru icare is second, does it cover all the policies of ICICI or only online term insurance
        like wise with LIC ((because i think for LIC they started this recently so it cannot be w.r.t online term insurance category only)

        it would be great if something category specific (like online term insurance) could be added

        1. Kumar-For your information the above said ratio is not alone about term insurance. It includes all product a insurance company offers. Hence this ratio will be of overall claim settlement and may include term insurance, endowment, money back or ULIPs.

          1. Thanks

            it would be great if something category specific (like online term insurance) could be added so that it will help for people looking for specific things

            1. Kumar-It is easy…either you can visit by categories which are available in right side of site or else you can search for the keyword. You will get the result. If you still find this bit inconvenient then I will create the same. Please let me know.

    1. Aegon Religare Term insurance is upto 75 year available
      and Premium is also cheap compared to other policies
      and it is only one term plan which is giving Term plan for Wife also with same premium

  100. Hi Basunivsh,


    I don’t have any knowledge of finance. Please help me out with which plan shall I go for long term and short term saving. And also I want to safe guard the future of my family. Any plan or plans which may help me in fulfilling these things. Eagerly waiting for your reply.

    Thanks !!!
    U r doing a great job.!!!!

  101. Sir,
    I am 32yrs old & married and I have one child of 5yrs. I am not a smoker, or drinker. good health.
    I want to buy a Term Plan through online for my family security. pls suggest me which plan is suit and best for my entire family and how much will be paid for annually.

    1. Rashmi-Go with LIC’s online term plan, HDFC, ICICI, SBI or Max. Take around 15-20 times of your yearly income. Regarding premium, please calculate online by visiting respective company sites.

  102. Hi There,
    I am 38 Year old. I am a non-smoker. I want to purchae a term insurance plan for 1 Cr for 35 years. Can you please suggest if i can purchage the LIC online plan. I also want to clarify that in term insurance plan, my nominee will get the total insureed amount, wheather its a normal death or accendental death of a person.

    Please suggest and clarify my doubt as well.

  103. My age is 29 and 3 years ago i bought Aviva i-life insurance of 1cr of 35years term and i am paying around 7300/- every year. Now i am planning to buy a 1cr term policy for my wife too. her age too 29. is there any better plans to go with. i enquired more banks and they have 30years as maximum tenure and premium also higher than Aviva. can you suggest the best one with 35 years tenure with reasonable price? Thanks in advance.

      1. but it’s costly than Aviva.. almost more than double amount. How Aviva providng such a cheaper rate. can we believe Aviva? even ICICI charging 10200/- for 1cr. LIC is 17978/-, aviva is 7600/- only. what’s the hidden things behind this. can you help me to understand this?

        1. Sai-There is nothing called hidden. Premiums are based on individual insurance company’s business strategy and actuaries calculation. So we can’t say they are cheap means something fishy.

  104. Hello Sir,
    I Have been reading your article on finance, It is an excellent guide for people like us.
    Coming to my Questions, I am planning to buy term insurance 50 lakh each of LIC and MAX life. Because only these are offering 35 years period. Since my age is 26, i am preferring to have it till my retirement.
    1. I am occasional smoker(once a week) and drinker(once in 2-3 months). Should i disclose this information while buying the plan. From my research, people have suggested to be honest with the lifestyle. What is your suggestion
    2. Regarding Claim of the insurance, will there be any issue if my name is wrong in the supported documents like death certificate. What i mean is normally we expand initials and write full name, but some how if the supportive documents does have exact expanded name.

    1. Karthik-Better to disclose it. Better to have name which are common in all your documents. Also even if they raised such issue then your nominees can provide the proof along with affidavit.

  105. hi, i am 25yrs old and i am planning to buy a term insurance for 30-35 years of SA 1.5cr(keeping inflation in mind).
    i have an inclination towards SBI and HDFC. can u please suggest if my approach is correct towards selecting the tenure/SA and insurance company.
    I am new n young to this field and need sincere help


  106. Hello Sir,
    Thanks a lot for the clarifications that you are providing in this blog.
    I too have few queries. Please clarify them.
    1 – My age is 33 years. If i take LIC’s e-Term plan for Rs.60,00,000/- opting for 25 yrs, what is the minimum SA? Will they won’t settle-down full amount (i.e., Rs.60,00,000/-) if a particular case is eligible ?
    2 – In which scenario’s this term plan gives us the returns ? (i mean either in accidental death or accidental permanent disability or death due to any decease etc.) Please mention all the eligible reasons. (Atleast mention the link where i can find the list of reasons)

    Thanks in advance.

  107. Hello Sir,
    My age is 36 Yrs, I would like to buy online term insurance for 1 crore rupees. While comparing the premium for the TOP (ratio > 90% ) companies, Max life insurance provide the best (lowest) premium.

    1. Shall I buy Max Life insurance? otherwise my second option is HDFC/ICICI Pru, for which is Rs.3500 additional premium to pay. pls suggest.
    2. How Max life able to provide at cheaper cost while other provides not able to do?

    Pls clarify.

  108. Dear Mr Basavaraj

    I am 50 yrs and 6 mnths and have only 1 term plan of Birla Sunlife for 20 lacs. I am planning to take another pure term plan without any rider for amount of 75 lacs. My 2 children are still dependent on me for next 5 to 10 yrs

    Pls advise if the amount is sufficient. Between SBI LIfe and LIC which one is better though I have faith in LIC.

    1. Rajesh-How much insurance is suffice is depends on your earning, financial responsibilities and your working age. So I can’t say on that, but ideal cover should be around 10-15 times of your yearly income. Both are good.

  109. dear Basu

    what would be the difference or finer points which we should take care between LIC Amulya term insurance and LIC ONline term insurance


      1. thanks Basu.. i know LIC online is much cheaper. so i wanted to recheck if there is anything hidden or not covered in the online term plan.

      2. Hello Basu,

        I am a 29 years old unmarried person doing a job in private company.

        I have been trying to get a term insurance plans for last 1 year, but every time, I got confused at the time of selection from different plans.

        I am trying to get term insurance of 50 lacks with ADB rider for 3o or 35 years of terms.
        I did lots of R&D and finally decided to go with either Max New or Aegon Religare.

        Please suggest which will be good option to go with?

        1. Pradip-You go on researching and time will lapse so fast. I am surprised that you are doing research since a year. Buy term insurance without riders. You can buy such riders separately. If you already short listed then go ahead.




    1. Mohan-Online discount are for every renewal. Also if you not disclosed your income properly (I mean lower to actual) then it is not a problem. Infact if we calculate then you may be under insured and need more insurance.

  111. Good morning Sir,
    Thanx for this blog.
    What do u mean by disclosing clearly,without hiding…while buying a term insurance online?
    What are the parameters to consider seriously so that there will be no problem while claiming.
    DOB:03 Nov 1977
    Annual income:8 lakhs
    No insurance at all.
    Planning to by immediately.

    1. Hrushikesh-Disclosing rightly means not hiding any truth of what they are asking. Also if you have any health issue then disclose that with your insurer (even if they not asked of the same). This will clear your position and give you authority if the claim rejected on any such issues.

  112. Sir,
    Ur article are so much informative. Thanks fr such good article. I am planning to take term insurance. In Aegon Religare, there is coverage for “Diagnosis of terminal illnes”. But their claims acceptance ratio is less(67%). So is it good to go for Aegon Religare as other insurance companies dont give coverage for “Diagnosis of terminal illnes”. Please advise me on this. Thanks in advance.


    1. Sudarsan-Claim settlement ratio includes other type of insurance products too like endowment or money back. So how can you say that if LIC is more than 97% then they settled more term insurance policies? It is wrong to believe so, because as of now we don’t have any such data available. Regarding Religare, if the product matches your requirement and within budget then why to hesitate? Disclose everything at your end. That is what we can do, whether it is LIC, ICICI, HDFC or Religare ๐Ÿ™‚

      1. Thanks for the response Sir. Can you clarify this doubt also.
        – Is it good to go for max age(75yrs) in term insurance or is it good to have term insurance only till 60 or 65yrs?

        Thanks in advance.

  113. My DOB is 06/12/1973 and I am a non smoker. Would like to buy a term plan for 30 years for a coverage of between 60-75 lacs, 75 lacs preferably. What would be the annual premium and which plan do you suggest between the top three insurers (from Claim Settlement Ratio point of view)? Also kindly let me know if any medical tests are required for buying the policy online? Thanks a lot

    1. Angshuman-Please visit respective insurance company site and calculate your premium with the desired medical test. Please do remember that claim settlement ratio published by IRDA not include only term insurance, but it consists of all life insurance product a insurance company sells.

  114. Hello Mr. Basavaraj,

    Thanks for your helpful block,
    I am 35 yrs want to buy term insurance plan of 50 lac with additional accidental death benefit for 30 yr but i am confuse in LIC & SBI, can you guide which is better for me & what will be premium.

      1. Hello Mr. Basavaraj, good evening, Thanks for the reply, from your point of view which is preferable online trek plan Lic or sbi, thanks.

  115. hello

    what is the meaning of locking period of mutual fund for 3 years,
    and if i invest for 1 year and want to withdraw my money then how what are the penalties
    and procedure to do this?

    1. Nitish-Locking period applies to ELSS (Equity Linked Saving Schemes) and FMP (Fixed Maturity Plans), where in you no longer liquidity. The period of lock for ELSS is 3 years where as for FMP it depends on set period as it differs from fund to fund. There is no penalties as you can’t withdraw at all.

  116. Sir I want to take a term insurance plan of SA 20 or 25 lacs. I’hv checked in various company but they are asking for income proof. I started a stationery shop just 1 year ago. So I don’t have any income proof. What to do sir….pls suggest.

  117. Hi,

    I have taken SBI eshild plan from agent of Rs 1Cr (SA-50L + 50L Rider) in 2013 which premium is Rs 14.5 thousand around . I feeling this cost is high in comperison of other company online product. One of my Friend has advised me that i should have to change with online product. kindly advice.
    My DOB is 03-05-1979.


  118. Hello Sir,
    I am 28 years old; want to buy a term insurance.Which plan will be better for me.

    Max Life Insurance & Aegon Religare.

  119. Hi,

    I am NRI and wanted term insurance plan for self. I went through the comments column and followed up with some insurers if their offering is applicable for NRIs too. Other than Kotak and MAX, no one replied in a definite yes or no. They all want to meet and discuss which is not possible for me. What should I do?

    1. RJ-I think HDFC also offers. Why to meet personally when you are planning to buy online?? They might be planning to push some products other than term insurance. So be careful ๐Ÿ™‚

  120. Good Day Mr.Basavaraj Tonagatti,

    Just want know if term plan is a good thing to have… i have sbi life,lic jeevan ananad and hdfc young star, policy’s at the moment.
    so is it better to opt for a pure term plan or a combination of both. As i am thinking of investment cum life insurance.


    1. Shankar-Your insurance policies are not called insurance products but they are insurance+investment products. Think what will happen to your financial dependents in case of your sudden demise? For how long your dependents will survive with the existing insurance policies? Then decide yourself whether you need insurance or not.

  121. Sir, I’m working in Central Para Military Force. Intimate whether any Term Insurance plan which covers all the risks pertains to Us please and also suggest good company which offered Term Insurance plan to PARA Military Personnel.

    1. Mohan-There is no specific plans related to your profession. But while buying you need to mention your profession so that underwriter will judge you the risk involved in issuing the plan for you.

  122. I am vishal. My age is 33 years.I want to buy term insurance.Is there any term insurance which covers critical illness and accident coverage ?Please guide me to buy term insurance which covers all.

  123. Hi i am nitish kumar
    please tell me that is der any drawback in buying online term insurance
    i am thinking of buying LIC (online) term plan ,is it safe to buy online lic as perspective of claim if any one need?
    and also i want to know how is bajaj allianz term insurance ?
    and last thing is it right to buy private sector term insurance only for less premium?
    please reply me as soon as possible..

    1. Nitish-There is no harm in buying online, infact you have lot of advantages. Also there is no dangerous kind in buying with private insurers. I have counter question to your agent. Please ask him “whether he will be in same insurance business for another 20-30 years, so that if something happens to you then he can manage claim process?”. He is claiming so because he loose commission if you buy online.

      1. sorry i wrote it two times
        i didnt notice it and thank you so much for clearing my doubt
        so can you clear my doubt what is the name of LIC online plan
        and required documents for it..

        1. they are asking about form 16 ,is it sufficient to provide last year form 16
          and is it they decide time of medical or it is upto on me
          and last thing i have one online term insurance of aviva today it is lapsing because i decide to go for LIC (online) term plan , is it necessary for me to declare about it cz it is already close today and i am going to buy new after one week and so

          thank you

          1. Nitish-Form 16 is required to judge your income. Time of medical test is convenient to both parties. If you are planning to discontinue Aviva in case of LIC, then better to not to mention. But not mentioning the existing policy and continuing with Aviva is dangerous. So plan accordingly.

            1. thanks basavraj,you are doing such a wonderful work of guiding people with no partiality like agents or companies are doing, thank you so much for your guidance.

              actually i leave aviva policy yesterday it was lapsed , so now there is no policy on my name
              i think i have to check whether they ask for existing policy or closed policy ,watever dey ask i will do it.
              i want to know a thing that have you ever done LIC policy online which i am asking and is it LIC e term plan for pure term insurance because i dnt want to confuse between LIC’s thousands of policies.

              thank you

              1. Nitish-They will ask you only existing policies. No I have not bought LIC plans online. Because they have only two online plans. One is pension plan and another is recently launched term plan. You can go with LIc’e online eTerm Plan.

            2. basavaraj please help me

              Is it worthful to choode bajaj allianz term insurance for 2000 Rs. less than LIC online term plan where LIC giving 35 years of insurance and plus good claim settlement ratio

                    1. debt fund means mutual funds
                      and do you give some knowledge me about mutual funds like their subscription,their withdrawn any type of service charge on subscription or withdrawn.
                      and also i am plannng to invest in reliance gold plan please give me some imp information regarding it .how it works,any fine

                      Thank you
                      nitish kumar

                    2. Nitish-Go to “Old Article” page of my blog and search for keywords Mutual Funds. You get an idea. Also you can google it on all your doubts. What is your intention of investing in Gold? I have already written on the Reliance Gold Plan too. Please have a look at it.

                    3. hi basavaraj

                      i read your article on reliance gold plan and reading it i dnt want to invest in it
                      but if i want to accumulate some gold then what is the best way any particular scheme name by which i can collect gold with maximum benefit
                      my main concentration is on investing monthly for it

                    4. Nitish -Why you are so fond of Gold? If your plan is to invest in gold then restrict that to around 5% to 10% of portfolio. Best options for investing in gold are Gold ETF (demat account required and minimum is 1 gram) or gold funds (expenses high compare to ETF but you can invest as low as Rs.500 per month).

                    5. i not so fond of it actually i want to buy physical gold for future use and it is not very easy to buy gold so much at once so i want to buy it in small amounts for physical use
                      in gold etf is it possible?

                    6. Nitish-They will invest in Gold and whatever the return on gold same will be available for you exactly like Mutual Funds (where underlying asset will be stocks), but in case of Gold ETF (underlying asset will be gold). So suppose you invested Rs.3,000 (considering per gram rate as Rs.3,000) and any value appreciation in this will reflect in your holding amount (like if gold jumped to Rs.100 then your value will be Rs.3,100). For this you need demat account. But it is cheapest form of investment for future use of gold instead of buying physical gold now (which devaluate your investment by charges such as making charges or wastage). For detailed view on the same you can read my earlier posts “Gold Saving Schemes-Who will benefit?“, “Gold Jewellery-Are you getting the right value?” or “Gold-Ways of Investments“.

  124. Dear Sir,

    Can you suggest me suitable health insurance plan for my parent. My dad is retiring this year and my mom is house wife.
    I am single and i want to buy a health cover for my parent. Please suggest suitably. Also guide me if i will be able to get any tax benefit if i buy a health cover for them.

    Thanks and Keep up the good work!!

  125. Hi Basavraj,

    Tons of thanx for having this blog.

    I was about to invest around Rs,24K in Plan 815 (Jeevan Anand) for my wife.But after going through your blog, I think I need to revisit my decision.

    I need your advice on whether I should go term plan for my wife or not.

    Currently, I am located in US for long term & planning to bring my family as well.

    My current investment are in

    1.LIC Jeevan Anand
    2.LIC Jeevan Saral

    Kishore Jain

    1. Kishore-Life insurance mainly required if someone financially dependent on individual. Suppose your wife is housewife and no one financially dependent on her then I don’t think Life Insurance is required for her. Instead first cover your life risk with proper life insurance by surrendering the existing dummy products.

    1. Vivek-We have plenty of dreams that if we die then our family get handsome amount from insurance. In this search we believe the concept that life insurance is meant for providing the actual loss but not the handsome amount you are dreaming. If one can go with your dream then person who earning Rs.1,00,000 per year may ask for Rs.2,00,00,000 life insurance. But in reality if he survive then he is not able to generate this amount. Hence insurance companies always restrict based income, age, health condition and other issues.
      I don’t think there is any harm in going by single policy than multiple, until and unless you are not hiding anything from your end. You can change nominee as and when you wish. Difference in premium is purely based on underwriter of individual company. So no one can question that why HDFC is cheap or ICICI cheap than others or LIC is costly. It is their calculation based on which they are offering you insurance.

  126. Hi Basavaraj,

    First of all i would like to congratulate you for such a tremendous effort of making people understand the need of insurance and there pros and cons.

    would like to go for sa of around 2 – 2.5 cr but there is catch of maximum amount of sa can not go beyond 25 times your annual income, being a self employed individual my Return is in the range of around 5 lacs for ay 13-14 and am also going to file my itr for ay 14-15( 31st march 2014) for around 10 lacs only to avail a higher SA.

    1) How does a calculation happens for Sum assured by appraiser( evaluator) , whether it happens on the basis of Income consideration for weighted mean of last 3 years return or only considering the latest itr.
    ex ( MY income for last year 2 years is 5 lacs and current is 10 lacs. so if they do weighted average for 3 yrs my sum assured drops to almost 1.5cr and if considered for latest year my SA goes to 2.5 cr- kindly explain)

    2) Multiple policy or single policy( Doesn’t due diligence happens more for higher sum assured compared to lower SA and the turn-around time for claim settlement is also taken more even after mentioning all the facts at the time of filing the online form as company would eventually Distribute five 50 Lacs claims rather than clearing one 2.5 cr claim as it would also eventually also increase the claim settlement ratio ( Do you also have some analysis of insurance companies with percentage of claim settled above 1 cr compared to below )

    3) If at all there are changes in the name of nominee (My spouse is still holding all the identity proof’s with her previous surname)

    4) Huge difference between icici and hdfc premium on sum assured of Rs 2 crores and above, so any specific reason .

    All the above mentioned facts are equally important for me to make-up my mind in buying peace for myself as i was contemplating the option of buying one since last couple of days. your feedback will be of immense help .


  127. Dear Sir, my age is 44 running I want to buy good term plan with health insurance and i am capable for 8400 to 9000 P.A. premium which plan should i buy i am working in private sector with Special agreement which is renew per year and my annual income is 485000/- and i have hdfc click to protect policy

      1. Hi….i was just planning to go for LIC’s amulya jeevan(term insurance)…I have’nt had any experience with private companies earlier so i am a bit hesitant to get a policy from them. Can u plzz guide me whether to go for LIC or try any other private company for the term insurance….?

        Thanks in advance

        1. Vaibhav-If you are too fond of LIC then why can’t try recently launched LIC’s online term plan than offline (cost you more). Trying other private players depend on your belief on that company. So how can I guide?

  128. good evening sir,my age 31yrs,i just purchased click to prtoect plan from hdfc,in which sum assu 75 lac term 30yrs for which premium 9300 per yr ,during prchasing i have given all details of my medical histry that is iam suffering from diabets sine after medical examination they asking me extra premium 9300 which is 100% extra so now premium will come 18600, so i want to know is it good to accept or reject this policy,because i was thinking they will charge maximum 30% extra.will u please suggest best term insurance plan for diabetes person .eagarasly waiting for your reply.thanking you

    1. Vijay-Whether the 100% increase is good or bad is decision left with you. Because it depends on underwriter of that particular company where no third party have any information. Instead what I suggest you is to ask for such steep increase and get the medical examination report from them and try to buy from other insurers with the waiting period. If new company issues you with less than what HDFC providing then continue with them. Otherwise you have no choice but to continue with HDFC.

  129. How much family health background will affect the premium amount. My mother died of cancer, Can you please tell me will it affect the premium amount?

  130. Dear Sir, Iam working as Staff Nurse in Kerala Govt. since 2014 June. 30 years old. Healthy (non-smoking/non-alcoholic) and having a 6year old daughter and carrying a baby and hoping delivery on October 2014. My salary is 3.2lack . Please advice me a suitable Insurance policy. ( My husband is an NRI having a yearly income of 11 lacks and having LIC Jeevan Shree-1 since 2005. Premium-36,948 Rs. yearly for 12 years to be paid . 20 year plan SA-5Lack+additions+bonus= 10.2 lacks as per our Agent promised) PLEASE ADVICE ME A PLAN COVERING ACCIDENT PROTECTION.

    1. Devi-You both are under covered for life insurance. So first buy term insurance to the tune of at least around 15 times of your yearly income. Then buy separate accidental insurance which are very much cheaper than term insurance.

      1. Dear Sir, Iam confused a little bit, only my husband having LIC Policy that he enrolled before our marriage. I am having no Insurance plans so far. And planning to start a new one. So please advice a plan.
        Please advice a Medical Insurance plan also suitable for a Kerala Govt. employee.
        Thank You Very Much.

        1. Devi-If you are earning and your family members are dependent on you then first buy term insurance from above list of your choice. Regarding medical insurance you can buy either from Star, Apollo or MaxBupa (or even with National Insurance too).

  131. D/Basavaraj,
    I am interested in taking an online term plan of around 1 cr. I am 33 yrs and a pacemaker patient which was implanted in 2010. I dont have any other ailments apart from this. To what extent will this affect my eligibility/premium payment etc.
    Thanks in advance

    1. Siam-It is hard to say to what extent your current ailment will effect premium and eligibility. Because each insurance company have their own set of guidelines and underwriting rules to issue the policy.

  132. Dear Basavaraj,
    I am 32yrs married with one son. My earning around 7 lakhs/year. I have LIC’s 4 insurance as below
    1. LIC Jeevan Saral (with profit) 1940/month for 20 years ( 5 years completed)
    2. LIC Jeevan Saral (with profit) 30025/year for 22 years (1 premium paid)
    3. LIC Jeevan Saral (with profit) 30025/year for 22 years (1 premium paid)
    4. LIC Komol Jeevan 7450/6 months for my son (4 premium paid)

    Basically I depends on LIC agent and took as per his advice as he is family friend and have some believe. About to purchase plan 2 & 3 my main intention was to purchase some Pension plan but he suggest it has best cover and return (>10%) which in future can convert to Pension fund. But now before giving 2nd premium I was doing some research and seems 10% is wrong information and this can not serve much insurance cover and return in future.

    For other investment I have PPF and company provided PF.

    I have below questions as I can not take decision
    A. Should I continue LIC’s 2 & 3 police or shall stop both or at least one?
    B. Shall I invest LIC’s amount (2 and/or 3) with some additional to Govt of India’s Pension Scheme – NPS?
    C. I want to purchase some Term fund but not sure what to purchase and can I believe on Private sector fund like HDFC, ICICI, Max Life, SBI Life?
    D. If I purchase some term fund which is 15 to 20 times more than my yearly salary then shall I go for one insurance company or divide to two, say SBI Life 50% and Max Life/ICICI/HDFC remaining 50%.
    E. As per scheme from SBI incremental sum assured plan and Max Life’s sum assured plus incremental monthly income for 10 years is interesting. Can I believe these?
    F. Want to invest regular basis in mutual fund for long term basis but here my idea is NIL. Please suggest something and from where can purchase?

    Please help to take decision.

    Thank you in advance for your help.

    Suman Biswas
    Kolkata, West Bengal

    1. Suman-If you discontinue all your existing dummy LIC products then that will be better decision than continuing. NPS have lot of Govt polity hindrance. So I am not a big fan of NPS. Instead you can start equity mutual fund for accumulating your long term retirement goal. What is your intention of buying SBI or Max plans? Regarding Mutual Fund investments, you can refer numerous articles written on this blog. Please do search them on “Old Article” page and read them. They will give you more information about mutual funds.

      1. Thank you Basavaraj for your help.
        I want to purchase some Term insurance plan which will cover my 15 years salary for death or critical illness risk. But not sure what to buy and how trust these are. I do not want to loose more money like LIC’s experience.

        So LIC Jeevan Saral (with profit) 10% return is totally wrong information, am I correct?

        Thank you again

          1. Dear Basavaraj,
            Just checked LIC’s e-term plan and this is too high premium probably more than double than Reliance and around double comparing with Max Life.

            Is there any reason so should I go for too high premium company, is other companies are not much trusted?

            Thanks for your suggestion

            1. Suman-I agree that it is high priced compare to private players. I mentioned only to give you a choice. But I am not insisting you to buy that plan. So if your buying decision is mainly on price then you can choose the cheapest. But few have lot more faith in LIC. In my view it is not required.

    2. One additional question, if I need to go outside India for work with or without family for long term (>1 year) or short term then also these term plan will cover my family?


  133. Hi,
    I was wondering why Aegon Religare has a low settlement ratio. Is it because it is a reletively newer company?
    I am leaning towards Aegon, but reading a couple of your posts has worried me a bit.
    I have gone through various forums, some saying good, some bad.
    The ones like Max, ICICI, HDFC are a bit costlier (2K +) and was wondering.
    Can you shed some light on Aegon Religare; the pros and cons please !

    1. Manpal-First thing I want to make you clear is, claim settlement ratio data itself is raw. You can’t get the data purely for term insurance. That is the reason LIC is top of list. So consider claim settlement ratio to the extent but not a sole consideration of buying term plan. Second thing, all companies including LIC have some good and bad experiences when you look at customer point of view. So if you dig more then you get more. Instead my suggestion is, go with company which you believe will suites your requirement. Declare everything promptly. Then rest is not that a big issue. I quoted few top companies, as in India they created a brand than other companies like Aegon Religare. So feeling comfort with whom you attach is also important.

      1. Thanks for the reply !!
        The thing is i am 27yrs old and married. I want a term policy that can cover me till 65-70 yrs of age.
        And i find only Barati AXA & Aegon (policy extends to max48yrs) able to do that.
        So in a qauandry !!

        1. Manpal-As I told you earlier, choosing a company depends on your comfort with company, budget and mainly your requirement. So if all are matching then go ahead. Even you can check recently launched LIC’s online term plan too (but costliest).

  134. I am 42 years old. I have stopped smoking recently. Now, if I buy Max life online term policy at non smoker rate, what kind of problem may I face ?

      1. 10-20 cigarette a day.
        How is it confirmed whether I am a smoker or not? To be frank, is there any test to confirm falsification of fact, if any, by the insurance companies?

        1. Madhu-You are yourself claiming to 10-20 a day. Now let us say after the policy issue if you contacted with a disease which was due to your past habit of smoking not the immediate or accidental disease, then do you do feel they accept the claim? Why to complicate life by risking your financial dependents life? Why can’t take easy road by declaring the all facts properly? If you left smoking then mention the same in writing that you left it since how many years. This makes clarity in underwriter’s mind also about what type of risk they are buying from you.

  135. Dear Basavaraj,

    I’m 29 years old non-smoker person. I am looking for cover of around 1 crore. Currently, I don’t have any insurance policy. I was looking for online term insurance plans, I studied few and drew up a list of SBI e-shield, ICICI Pru iCare II, Reliance online term, HDFC Click2Protect. Of these SBI and ICICI provide me an option of Accidental Death Benefit. Since I am regular at driving for my weekly commutes, would Accidental Death Benefit rider prove to be useful for me (50 lacs SA + 50 lacs ADB) or just go with term insurance (1 crore SA)? Also of the above mentioned plans which is better suited to my needs and also which covers most of the death possibilities (terror act, natural disaster, etc)?


      1. Hi Basavaraj,

        Adding to the above question, with the same requirements, I am currently 28 and I need a term insurance that can cover me for 40 years from now. Can you suggest any good ones.

  136. Hi Sir,

    I am at the age of 30 years ,Non smoker having the LIC POLICY 133 coverage of around 12 lacs. My annual income is 10 lacs/annum.

    Last week i have purchased the online Max basic term plan with premium of Rs 8800 /- gives me coverage of 1 crore for 35 years.Later on I came to know about LIC also having the e-term plan.

    Now I have 3 questions::

    1) I am confused between private players vs LIC .? Does private player are as much safe as LIC.?

    2) Max term plan i have purchased for 1 crore with basic cover only.Does this much of cover is sufficient for my family…?

    3) If i go for the basic cover+monthly income my premium will be increased by Rs 2000/-.Do you think its good option to go for with monthly income of 40000/- for 10 years.

    Vishal Garg

    1. Vishal- 1) Yes, 2) Ideal insurance coverage should be around 15 times of your yearly income. Also you must review it once in a five year to buy more. 3) No..please select the normal product.

      1. Hi Basavaraj,

        Thanks for your valuable advice.One more question regarding claim as I have declared my wife as Nominee does marriage certificate required to claim the amount…?

        Actually currently I don’t have marriage certificate or any ID proof defining the relation.

        Vishal Garg

        1. Vishal-Marriage certificate is a valid proof of your marriage. So it is better to have it not only for this purpose but related to all your claims. Please apply for this certificate at the earliest.

  137. Hi Basavraj,
    I am 43,male,salaried. Looking for term insurance cover of 1 cr. for 25 years. Planning to buy either reliance or bharati axa. which of those shall i prefer based on performance and service?As premium is almost same, have to depend on reputation & services. or would you suggest some other?

      1. Based on premium (below 19k per year) as well as offer by bharati axa for discounted plan for spouse and recommondation by policy bazar person. Do you suggest not to go with these two? Can you pls. suggest best term plan as on date of rs 1 cr. sum assured with yearly premium below rs 20k? I do not wish for any riders as i have another plans for it.
        I am holding further process as I wish to get expert advise like yours, because any company person promote his plans only, highlighting negative sides of others. also I doubt policy bazar person are keen to sell certain company policies. Hence requesting your advice.
        Thanks in advance.

        1. Sandeep-May I know what is discounted plan for spouse? It is dangerous even to believe Policybazaar (because they too these days promoting selective online term plans). My choice is between LIC (Online), HDFC, ICICI, SBI or Max.

          1. Hi,
            as per info given to me, axa is offering Discounted plan for my non working wife as follows.
            My plan – sum – 1 cr , 25 yrs ,premium @18 k.
            Discounted plan for wife – cover 50% of mine ( 50 l) ,25 yrs, premium @ rs. 5000.
            1.pls. comment on above.
            2. Also on this page I read your comments to stay away from LIC plans. So why do you suggest LIC in this case?
            3. Which one company will you suggest if i have to choose term plan from hdfc / icici / max.

            Thanks a lot for valuable inputs.

            1. Sandeep-Do you feel Insurance is required for your non working wife?? Insurance is required if someone is financially dependent on him/her. So in your wife’s case do any family member depend on her financially? Dear I suggested to stay away from LIC traditional, ULIPs or offline term plans. But not about the recently launched online term plan. I have provided options, depending on your budget, requirement and comfort with company choose.

          2. Dear Sandeep,

            As suggested by Mr. Tongatti, to secure your family you may consider ICICI Pru iCare II.

            Here are a few points to help you make an informed decision:

            1. ICICI Prudential Life Insurance has one of the best claims settlement ratio in the industry at 96.29%*.
            2. Plus we are also one of the fastest in claim settlement and clear more than 90%* claims within a month.
            * As per IRDAโ€™s Annual Report for FY12-13.

            To know more about our online term plan visit:

            Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.


  138. Hi Basavaraj,

    Thanks for your informative blog, as a beginner we get much useful information over here.

    I am a little bit confused, I myself 30 years old having earned of 3.5L PA. I have ppf a/c for monthly investment. I have been paying LIC premium of around 15,600+ for 149(Jeevan Anand).

    I have one Ulip policy namely Met Smart Plus, (not a smart decision) SA 3,00,000/- paying premium Rs. 12,000/- per year since 2009 (policy term 75yrs). But when I review this policy I noticed that the surrender value of this policy is much low than what I paid to them. One broker advice me to go for redemption of this policy & take some another policy of Birla. (having some another feature). I want your advice, what should I do?

    I want to buy term insurance for me (SA 50L for 30yrs). I selected SBI, Kotak, Tata & HDFC. Should I go for online plan? & ascendically which is the best one.

    I also want to invest in mutual fund through SIP, please suggest me 2-3 mutual funds.

    & Thanks in advance dearโ€ฆโ€ฆ..

    1. Shital-First dump those LIC and Birla Plans if they are eligible for surrender. Buy term plan to the tune of around 15 times of your yearly income. But it online only, why offline when the same is available at cheaper rate? Choosing a plan depends on your comfort with company, affordability of premium and features which suites you. So I can’t point out any single plan for you. Regarding investing in mutual funds, what is your time frame?

  139. Hello Basavaraj,

    Firstly, thank you for doing this great job..!

    I need 3 suggestions suggestions based on the details given further:
    1) Best Term Insurance plan- 1 Cr & For 35 Year ? And an approx premium for same?
    2) Please suggest long term Investment options with surplus investiblr amount of 15,000/Month?
    3) Should I continue two Jeevan Anand Policies in my wife and my name with 40,000 yearly premium?

    My Details:
    1) Age: 28 Years
    2) Status: Married
    3) I was a smoker till 3 years back.
    4) No Kids

    Investment Details:
    1) Mutual Fund thru SIP: 8000/Month
    2) 2 Jeevan Anand Policies with premium of total 40,000/Year
    3) 2 FDs for us of 1 L each

    Thanks in advance..!

    Pratik Das

    1. Pratik-Listing all plans and share information with you for your specific requirement is cumbersome. Instead I suggest you to go through above list and choose a plan of your choice. Long term means??

      1. 1) 10 years investment option
        2) Should I continue LIC Jeevan Anand for both of us? Or Its better to take Term Insurance dumping one or both of these?

          1. Hi,
            Could you please let me know the reason to close the Jeevan anand plans?
            My father started a couple of them for me (long back), and now i have taken over and am paying the premiums.
            Can you also let me know what exactly jeevan anand is ?

            1. Manpal-Jeevan Anand is typical Insurance+Investment traditional plan. Return will be around 6%. So if you are satisfied with this then go ahead. Otherwise you can surrender at any time after 3 years.

          2. Another Small question.
            i have 2 Jeevan Anand Policies.
            SA-500000 PRM 24907/- month 20 Yrs : paid 5 prms
            SA-200000 PRM 10117/- month 20 yrs : paid 7 prms

            I`m not getting much out of it. Sustaining a loss of 84K. Do you really think i should opt out of it or go for the Paid Up Option.

              1. Thanks for the answer !!
                these are yearly premiums
                I just paid a premium for 24907 just last week ๐Ÿ™
                i called up LIC and they say out of the 195354 i paid, i`ll be getting back only 113563 only ๐Ÿ™
                I guess i`ll be not paying the premiums from hence forth and will surrender them next year around this time (so i can get the bonus benefit for the premium i pais last week)
                I calculated that this money if put in a fd+mf will give me around 2 lacs more (taking an an avg ROI at 10.5) 15 years from now (when my LIC Matures).
                Hope i`m doing the right thing. You need guts to take a 84K loss head on !!


  140. Sir,

    My age currentl is just short of 34 and for the past 3 years I have been paying LIC premium of around 17,300+ annually for 2 term policies. My current CTC is around 14 lacs/annum.
    1) One is for 25 lac cover with term of 30 years
    2) Second is for 10 lac cover for a term of 10 years

    As you suggest term insurance needs to be 15/20 times of annual salary, and therefore i have been thinking of increasing my cover to at least 1.5 crores. I also think that LIC is charging me way too much for a meagre cover; the only reason i have been sticking with LIC is because of the percieved security.

    Please advise if I should let my current policies lapse and buy entirely new ones or if I should retain the current policies and buy additional ones.
    Please suggest 2-3 good plans that I may look at. Also, will it be a good idea for me and my wife to go for joint insurance or separate plans?

    Looking forward to your guidance.

    Best Regards,

    1. Kshitij-If you have so much belief with LIC then first why can’t you try with LIC’s recently launched online term plan? Other term insurance you can look for is from HDFC, ICIC or SBI. But go for online. Once you have insurance policy in hand of your desired Sum Assured then opt for cancellation of existing one.

  141. Dear Vasu ,
    I have taken a term policy from Aviva ( Iterm ) since last 3 yrs …Now i am hearing its no so good while returning the benifits …..Is it advisable to continue the same in future …or just to stop here and proceed a new one with other vendors …

    Really happy if will get a quick response …

    1. Sunil-Before judging to close the existing insurance, first ask yourself whether you provided any wrong information to Aviva while buying? If no then why you need to worry? If you still of opinion to change then first buy it and once the new policy issued then can go for cancellation of existing plan.

  142. Hello sir,

    I am 27 years old ,non smoker & single also. I am looking for a Term Insurance for 30-35 years. My annual salary is of Rs.3.5 Lakhs per annum. please suggest me which is the best insurance company for term Insurance ,who will not create much problem to my family if something is happen to me. Actually i am looking for 1 cr term insurance. can you please suggest me that I will go for 2 insurance of Rs.50 lakhs each or I will go for 1 insurance of Rs.1 cr . In some website I find out some insurance like
    Aviva(i life)
    Bharthi axa(e protect)
    Max life(online Term option 1)
    Aegon religare(i Term Medical)
    Aegon religare(i Term Non-Medical)
    HDFc Life, etc

    In the above insurance which are the good face value when its come to settlement. other than that if you have any suggestion for other insurance then it will be great for me.


  143. Hi Sir,

    I am 28 years professional and live with my wife and my mother. Is there a term insurance which can cover my entire family. In other cases, can you kindly suggest me with a good term insurance, which can cover me till the age of 65 years at least, and the premium is not too high.

      1. Thanks. My mother is 50 years of age, and does not earn. Can you suggest any insurance that I can take for her, not limited to term insurance. And what is the age for which she can be covered.

        1. Amit-For someone like your mother, who I think housewife and no financial dependents will not need any insurance. Instead invest in some other debt products than buying insurance for her.

  144. Dear Sir,
    I am 34 yrs married one kid, Non smoker , Non alcoholic, health is good, Annual income is 3 Lakh, working as central govt employee.
    I Have following Policies
    LIC jeevan Anand-2Lakh ( 6 yrs completed)
    Lic term plan offline 8 L (one and half yrs completed)
    Aviva term plan 50 Lakh for 35 yrs (policy just purchase 2 days back)

    Sir please suggest me it is good Aviva term plan 50 Lakh for 35 yrs?? or I have to choose any other term plan from other insurance companies Please suggest me ASAS, because I can return the policy with in a month, so please suggest me AVIVA term insure is good decision OR I have to look for other insurance company term plan

    Thanks in advance
    SD Johi

  145. Hi Basavraj,
    Really appreciate your efforts and prompt responses in this blog. i am 34 yrs non-smoker and in good health. My wife is house wife and we have a child of 1 yr. I have an LIC The Endowmwnt Assurance Policy (T. No. 14) of 5Lacs for 21 yrs and my wife has an The Endowmwnt Assurance Policy (T. No. 14) of 7 Lacs for 25 yrs. Both started in 2007. Please advise me for my below queries. My annual income is near 12L.

    1.Any benefit in continuing the above LIC plans?
    2.Please suggest me a good term plan and preferred no. of years.
    3.Please suggest a best plan for my child, so that she can benefit at her age of 18 for higher education or before that, in case of any mishap to parents.

    Thanks in advance,


    1. Raj-Please come out of existing LIC policy. You can choose any term plan LIC (Online), HDFC, ICICI, SBI or Max. Insurance is not required for your kid but to you. So you are planning to buy term insurance then never turn your head towards insurance product for your kid’s future purpose.

  146. Sir, I would like to congratulate you for your superb job…

    I am 34 year old non smoker non drinker married male looking for buy online term plan for 30/35 year..of 1 crore rupee SA .my earlier investment are..
    1. Jeevan saral SA 5 lac 30 yr . yearly premium 24000
    2. Ppf
    3.RD of 3000 3yr with axis bank
    4. Share 1 lac
    Salary 5lac annum

    My mother had gone through heart artillery operation and father is bp patient. I have thyroid problem .should I mention all these.

    suggest only 1 between hdfc clik 2 protect or icici I pru..

    kindly reply ..plz sir


  147. Dear Basavraj,
    u r doing a grt job.
    i too hv a query and need ur help
    I hv jeevan anand policy having SA totalling Rs. 275000/- and commenced in 2004 & 2 money back for cobmbined SA of Rs. 6 lacs. i’d like to buy online term plan for 50 lacs. my annual income is around Rs. 8 lacs. shall i discontinue jeevan anand after paying premium for 10 years or shall continue with it.

  148. Hi,

    Me and husband are working in s/w firm with an inhand of 1.35 lakhs pm. I am 30 yrs old and husband 33 yrs.
    Husband is a smoker. But no other health issues.
    We are have 2 LIC Jeevan anand policy .
    1) Mine started in 2007 – sum assured 7.1 lakhs- Quarterly premium -9000 ( 20 yrs)
    2) Husband started in 2011- sum assured 10 lakhs – half yrly oremium- 54000 (20 yrs).

    I have 2 qns

    1) Do we need to continue these policies?
    2) If we planning for term insurance , which is the best?. Do we need to take Max-2cr life cover ? We always prefer with LIC as it govt one.

    1. Ammu-1) Better to stop them immediately.
      2) If you prefer LIC then you can check with their latest eTerm (Online term plan). Ideal insurance cover depends on your income. It should be around 15 times of your yearly income. Insurance companies have their own underwriting rules. So you can’t over buy if your income is not that much.

    2. Hi,
      I m holding LIC Jeevan Anand 3L and Jeevan Saral 1.8L.
      Having Met Smart Premiere (ULIP) 10.80L also.
      Having one term Plan with Aegon Religare 25L.
      Having one kid of 5 yr. and Twin babies of 15 days.
      Wife is also working and getting p.a.
      Pls suggest, Do I have enough Insurance coverage?
      Should I restructure the Insurance Portfolio, if yes, pls do let me know the products.
      Is this enough or should I take more insurance.

      pls suggest some products which can cover my family.


      1. Umesh-First dump those products which combine insurance+investment (LIC and MetLife). Whether Rs.25 lakh insurance is suffice? Please understand that ideal insurance coverage should be around 15 times of your yearly income. So do you have so much cover? Term insurance covers individual but not a family (like health insurance).

  149. hello sir,

    I am currently 27 years old, female, non smoking, working at public sector bank, married , no children, currently supporting younger sister in her pg studies, and co-supporting working husband’s family ,with net monthly income of 15 k per month Gross annual income 250000 . I am currently holding Jeevan Anand lic policies SA 15 lacs, to which i’m paying rs 3200 monthly. I had planned on taking a term insurance for long, but was putting it off for another time.

    I came across ur update on LICs online term insurance facility. The downside being no riders for accident death, waiver on premium or critical illness cover. I also came across aegon religare’s online term insurance which has all these built in, with 40 years max tenure, whereas LIC has only 35. I am slightly partial toward LIC as they had settled my late mother’s and father’s insurance claims within two months after submitting paperwork, and I’m wary about private players- I prefer swift, hassle free claim settlement for my nominee.

    Can you advise me as to which company i should prefer, how much cover i should opt for? You opined that these extra riders can be taken from general insurance companies- can you mention some such plans and GI companies? This means that i can opt for a plain vanilla term insurance, and add rider covers using GI companies’ plans.

    Also I plan on surrendering the Jeevan anand policies, and rerouting the amount towrds annual premium of the term insurance- is that a wise move? I’ve had the Jeevan Anand policies since 2011 december.

    Can you advise any other term insurance products with riders built in (especially women specific ones?)

    Thanking you,
    Lidiya V

    1. Lidiya-First surrender your Jeevan Anand. Better to have life cover till retirement only. So in my view 30-35 years of insurance is ok for you. Ideal insurance coverage should be around 15 times of your yearly income. Choosing company entirely depends on your choice. Because each individual have his/her one perception about company. Also it is always better to have riders separately. What add on riders will offer is some limited sum assurance and features. But if you go for separate then you get the sum assured you require. So my suggestion is buy pure term insurance.

  150. Hi ,

    Iam planning to take term insurance.Myself 31 yrs old.I have selected two online plans.SBI life&LIC.
    The confusion now is which one i should take.LIC offers for a period of max 35 yrs whil SBI is max for 30yrs.
    The rate i foud out form there site is Rs 13230 for LIC &11558 for SBI for 75 lakhs for 30 yrs.For LIC for 35 yrs the it is coming to be 15590 for 75 which one i should opt.Do i select LIC as thsi offers me a cover for 35yrs.???

  151. Hi,

    I am Ashirbad, aged 27 want to take a term insurance plan as my Jeevan Anand Plan is going to matured in anather 4 years. My salary income is 5 lkhs pa, Please suggest me a term plan which will suit me perfectly. I am little bit confused for the huge difference in the premium charged by private company and LIC. Will it be riskier to take a policy looking that its cheap?

    And please suggest me with adding some more critical illness insurance.

    Currently holding Jeevan Anand SA: 8 lkhs


      1. Thanks,

        I have some more doubts,

        Is it wise to take additional critical illness plan along with the term plan or it will be better to take pure term plan?

        Will I be benefitted by taking two policies from two different companies.

        Please provide names of the plans of the company you have mentioned ๐Ÿ™‚ .


        1. Ashirbad-It is better to have separate critical illness or accidental insurance from general insurer as they offer more sum assured with few additional features. I don’t think so, better to have one. Go anyone among LIC (Online), SBI, HDFC, ICICI or Max.

      2. Hi i am nitish kumar
        please tell me that is der any drawback in buying online term insurance
        i am thinking of buying LIC (online) term plan ,is it safe to buy online lic as perspective of claim if any one need?
        and also i want to know how is bajaj allianz term insurance ?
        and last thing is it right to buy private sector term insurance only for less premium?
        please reply me as soon as possible..

        1. and one more thing sir i want to know is my agent said to me that if you buy online then there is difficulty in claim cz der is no agent involved to whom ur beloved one contact
          please clear my all queries
          and i am making my mind for LIC eterm plan for 35 year and 50 lac cover my age is 28 years

          thank you
          nitish kumar

  152. hi,
    I am 30 years old male…..non smoker…..want to go for 1-2 cr term insurance.. i work abroad…..which insurance do you recommend between LIC, HDFC and Max ???

          1. I am 30 years old maleโ€ฆ..non smokerโ€ฆNRI…..want to go for 1-2 cr term insurance.. .which insurance do you recommend between LIC, HDFC LIFE.. and Max ???

  153. I want to buy online term plain 50L, Kindly suggest the company. In my mind Aviva please suggest me.

  154. Between LIC and Max what will you choose?

    Age-28yrs, term-32yrs, non-smoker

    Max-2cr life cover + Monthly income @Rs.80,000/-for 10 yrs (increasing @ 10% each successive year)

    LIC Amulya Jeevan II-1Cr life cover, Premium-Rs. 22,267/-(For Max same would cost Rs.6700/-)

    My trust will be based on clear facts and data. And LIC is charging just a little over 300% more ๐Ÿ˜€ in exchange of the super expensive trust factor. My concern is will my family suffer the consequences of my choice of Max over LIC in case of an unfortunate event because of much lower premium.

      1. Yes, its a great option but it doesn’t provide joint life cover. It’ll only cover for the life of the proposer. Another disadvantage is the claim process, as LIC carries out most of its initial claim process through its agents.

        1. Dinesh-Why you need joint life cover? It complicates the product than buying separately. What is the agents requirement in claim settlement? Will LIC not allow claim to settle if you directly visit LIC office? Both of your thinking seems to be not valid.

  155. Hi Basavaraj,

    I am a qualified CA, cleared last may 2013. I am single, 24 years old, not consuming tobacco, having a package of 8.75 lacs. I was going through the Max life’s term plan “online”, which I found comparatively very cheap with the offline plan it provides.

    For 1 cr SA, the premium calculated online comes to 6200Rs. which when compared with offline saves almost 12000 Rs. (offline premium comes to almost 18000Rs).

    I did google and found out the reason for such a difference. They said that the difference is due to the admin cost (salary, and other overheads) that get reduced.

    On one of the site where i found the article from money life which claimed not to go for online term plans. They claim that the premium is inflated by the company after the medical test done.

    Please opine on this. I am just going to buy a 1 cr term plan and i want to take the correct decision. Also, is max life better company. I found 2000Rs. premium more in case of HDFC life. Should I go for Max or HDFC. Is the claim settlement ratio of max good. People tell that claim settlement would be a problem if you go offline. Also please opine regarding the rider provided in the MAX term plan. If I pay 2066 Rs. extra as premium my family would get 40000Rs per month for 10 years post my death, over and above the normal SA of 1 CR. Please opine. Should I take the rider also.

    Thanks a lot in advance.

    Best Regards,
    Abhishek Shah.

    1. Abhishek-If any valid points are there in monelife article then too you have time to cancel in case insurance company raise the premium. It is all false, raising premium depends on health issues and other hazards. So we can’t squarely blame. In my view both are good, choose according to your comfort. Buy the riders separately from general insurer than opting with life insurance.

      1. Thanks lot brother…but what is ur view on this..should I go for online purchase or claim settlement should not hav a prob…nd wat do u think should I go for a simple term plan and make investments on my own,.or buy an inv cum insurance plan…i find these combo
        plans fetching a return of merely 5-6%..

        1. Abhishek-If you are ready to buy a Rs.100 product (online term plan) for Rs.140 (offline term plan) then go ahead (if you don’t mind 40% extra payment for the rest of policy period). I am unable to understand why you get trouble in buying online to offline? Do you have any guarantee that the agent who is selling now will be in same profession after 10-15 years down the line? Always better to distinguish between insurance with investment. So go ahead with online term plan.

  156. I currently have a term plan from LIC. I got this plan 2 years back and at that time LIC’s online plan was unavailable so I am paying a hefty premium (Agent’s commission). Is there a chance I can exit the current plan and get a new online plan? If yes, whats the procedure?

    1. Kaushal-You first buy online term plan and once this is issued then simply stop paying for the old existing term insurance. Regarding existing old insurance, there is no special procedure to exit as it being term plan, you can simply stop paying premium and policy will automatically lapse.

  157. Hello Basavraj,

    Thanks for your infos.

    What about SBI e shield? How you rate this comparitive to HDFC or ICICI?

      1. Thanks..

        My main concern about SBI being SBI a government & HDFC & ICICI being private.
        i m not able to decide whether I shud go for government one or private one. i am not much concerned for the premium I am concerned for the settlement , so that my dependents shuld not suffer after me.

          1. no one. It is my perception as named SBI? what it is? I checked online & offline for SBI. Online it is coming approx 12500, & offline 17000, but offline has an option of adder of permanent disability & critical illness with adding premium., which online doesnt have. all inclusive comes approx 21000. Can you suggest what should I prefer, online & offline? what could be the advantages of offline?

            1. Himanshu-What if suppose buying online at Rs.12,500 and buy separately individual riders from general insurers? This this will be cheaper with much more features than adding with your term plan.

  158. Dear Basavaraj,

    Needed your advice to opt for the right Term Insurance little confised looking at all the Term insurance with different insurers :

    Name : Kiran Reddy
    Age : 33
    Drinking Habit : Ocassionally
    Smoking Habit : Yes (7 to 8)

    Planning to take 1 crore as the sum assured and want to understand it better before opting. Lets say if i opt ICICI Pru life I take 50 Lakhs and HDFC I take 50 Lakhs as sum assured. Is this the right choice or should I go with one insurer. Please suggest and as per the Claim ration provided by you i feel both the Insures are good. Please suggest the right choice.

    Thanks in advance for your timely help!

    Kiran Reddy

      1. Dear Basavaraj,

        Thanks for your confirmation and this is very helpful to decide.

        I have one more question might be silly but need more clarity:

        Scenario 1 : In case of my normal death what is the protocol the family needs to follow to get the claim any supported documention is required?

        Scenario 2 : In case of accidental death and I have not opted Accidental rider will my nominee still get the sum assured ?

        Thanks for timely help and highly appreciated.


          1. Dear Basavaraj,

            Thanks for your swift response, much appreciated.

            Your blog is very helpful!


  159. Dear Sir,

    For Term policies, Why it shows different permium rates when we login from policybazaar Vs. directly go to company websites.

    Example – ICICI iCareII (50 Lakh) [30 Years] on login from icici site has premium – Rs -10340/-

    But from policies Bazaar, it is showing – 11,618/- and when it redirected to icici page than it 10440/-

    Please can you help me understanding this and which way is good to buy term policies.

    1. Maharpreet-Don’t believe any site, instead go directly to respective insurers site and calculate yourself. Why policybazaar aggressively promote online term plans without getting any benefits for it?? Have you thought on this? Why they call you so many times and insist to buy online term plans?? If they are not getting anything then are they into social service??

  160. Dear Sir,

    Thanks… you are doing a great job… and guiding thousands of people on their right investment.

    My Question : –

    ICICI iCare-II and HDFC Click2Project – can we get these policies offline, as some Advisiors from these banks approached me and asked for my documents.

  161. Dear Sir,

    Some where I read that since LIC I-Term is a new product, there will be service issues from LIC as they rely heavely on their agent force which is absent in this product. What is your opinion on this. Further someone advised me to split the insurance between ICICI and LIC as in case if one creates some service issue, then the other can settle the claim. What is your opinion.


    1. Mohit-Oh…you read somewhere?? Regarding LIC, I said so, as a negative point of LIC’s online term plan. Second point about splitting, few have too much faith in LIC, whatever you say or cost of plan. But still few prefer LIC. So splitting will actually ease their tension to that extent. But apart from this, each plan or your logic have it’s own positive as well as negative side. So you need to decide which suites you more.

  162. Hello Sir

    i am 49 year working non smoker/non alcoholic, annual income 10 lakh , i have LIC, ICICI, Birlasunlife general insurance policies, HDFC health policy also, now looking for a term plan, kindly suggest me which term plan would be better for me and what sum assured should be at this stage.



    1. Mahendra-I can’t say any one product which is universally best for all. But you can choose anyone among above listed my reviews. Ideal insurance cover should be around 15-20 times of your yearly income.

  163. Sir,
    I am 38 years old. Non Smoker. I already am having 25 lacs term policy from LIC (beyond doubt its very costly). Now I want to cover more risk and am planning to buy one more policy from the private players. My questions are as follows:-
    1. Whether I can buy more than one term policies from different companies.
    2. Which company gives the risk coverage for maximum years (May be 70 years of age).


    1. Puneet-You can surely buy as many as policies, provided insurance companies are ready to issue ๐Ÿ™‚ You can check for Aviva or even recently launched LIC’s online term plan for that much of age coverage.

  164. SIR, Which is better company for term insurance ..between hdfc and max according to pricing and claim settlement ratio…. pls suggests

  165. Sir

    I would like to take some advice from you regarding Term life and whole life/annuities?

    Non smoker/Non drinker
    Age: 28+
    Annual income: 15lakhS

    I am looking for a term insurance of 75 lacs – 1 crore face value with additional ADB of at least 50 lacs; period of 25 years. I want to decide between SBI LIC hdfc and icici.

    Which the policy should I go for with a motive of minimizing premium amount ?

    Also will it be better to have 2 term policies; of 30 lacs and 75 lacs with period of 15 years and 30 years respectively?

    Please advice.

    1. Shrey-When you consider premium, then the chosen term insurance are costlier than other companies. Then how can you say that they are cheaper? My suggestion is buy accidental insurance separately from general insurance companies. Why and what is logic splitting the sum assured?

  166. Hi Basavaraj,

    Thank you for providing valuable information through your blogs. I am confused on Accidental Riders. How do they help? I am assuming we will get same sum assured incase of death due to accidents. If 1cr is the sa, we will get 1cr incase of death due to accident or natural. How do the plans with accidental riders/without a-r work?


  167. Dear Basavaraj,

    I am 36 year old and 37 on 8th june. recenlt i have mo life insurance. i am to buy pure term plan. iam ver confussed which one is best for me. kindly suggest best or resonable plan for me because i wiil 37 on 8june and premium will high. kindly i requested to suggest me plan ASAP.


      1. Dear Basavaraj,

        I have taken online Aviva Term Plan with critical illness rider.after medical test now company increasing my premium 6612 to 14182 due to diabetic . i have already
        declare about the diabetic during filling online form and also refusing to issue rider.Only accepting term plan with extra medical report is good and also diabetic in good control. i have already send one mail for reducing extra premium.i am confused what will do either i will go for these policy with extra premium or should i choose another company policy. kindly suggest what is best for me.


        1. Sanjeev-When you calculated the premium at first online then there is no specific calculation to differentiate between diabetic and non diabetic. Also at what stage of diabetic you are into will be known after medical examination. Hence once they have all your reports then underwriter will judge the risk involved. That is the reason high in premium. Regarding issuing of rider, I suggest you let them refuse. Better you opt for separately by buying through general insurers.

          1. Hi
            but premium amount is very high. is there any way to reduce these premium. what i will do whether purchase these policy or apply to other company.

  168. Hi Basavaraj,

    Thank you for providing such great information.

    I want to buy a term insurance plan. Below is my detail.

    Age : 33 years.
    Dirking Habit: Non Smoker.
    Marital Status: Married.

    Job Status: Working in PRACTICING CA FIRM in Surat, Gujarat

    Annual Income: Around 6 lacs p.a.

    I am confused in two term plan (Coverage of 75 lacs) –

    Max India – Premium is around Rs. 8933 (35 years)

    and Aviva ilife – Premium is around Rs. 8071 (35 years)

    Pls guide me which term plan is great for me considering the following factors –

    – Claim Settlement ratio

    – Solvency ratio

    – After Sales Service

    – Availability of riders (Accidental death which double the insurance coverage as i think so)

      1. Some adviser confused me and told that Solvency ratio of Aviva is better than Max India and hence, you should with Aviva Only..

        Thank you sir.. for your guidance..

  169. Hello Sir,

    I have a doubt. I have an LIC policy for 25 year term for which I am paying a premium of Rs 50,000 per year.
    I am planning to got a term insurance too. Like HDFC Life, for 75L its around 10,000 per year.
    Want to know whether its a good idea. In case if anything happens to me, will my family get both the covers from HDFC & LIC or only one they will be able to get.


    1. Siva-You are in right track and term insurance is the real insurance but not the product you already have. Hence if I am at your stage then I might have bought the term insurance and after that cancelled the existing LIC plan. Rest invested in other financial products which give me more return than the typical LIC plan.

      1. Thank you sir..
        I am still confused on which term plan to go.
        Max India & Aviva premiums are less compared to HDFC. But as per my knowledge HDFC is the bigger brand. So for long run which one to choose. Can you please guide.

  170. Nice comparison in terms of Settlement Ratio. Can we also include some data on Solvency ration & profitability status of each of the above companies. These two additional factors talks of Stability of the co. and will help to take a much better informed decision. Reason being most co’s must be making losses (my guess from what ever i read and gather !).

      1. Hi Basu,

        I have taken Term insurance from MaxLife(50 Lakh) since i am working and covered under corporate medical policy but now i am plaining to take medical policy ? Can you please suggest which one is good ? What about Max Bupa ?

        1. Sorry i fogot to include some point. Is it a good idea to purchase medical policy from same group of company from where i have taken life insurance(as Max Bupa and Max life insurance both are same group of company correct me if i am wrong) ?

  171. Thanks Basavaraj
    For valuable information related to Insurance . if you have data or you know any web site / portal from where i can get details information of ratio of term insurance claim settlement of different insurance company.please provide me. coz in term insurance premium gap is huge .before buying a Term insurance at low premium first we want to check their settlement ratio. coz always chep product may not be good.


  172. Hi Basavaraj,

    Thank you for providing such important information.

    I want to buy a term insurance plan. Below is my detail.

    Name : Rupesh Kadam
    Age : 31 years.
    Dirking Habit: Non Smoker and occasionally Drinker.
    Marital Status: Unmarried.
    Dependent: Parents (Father is retired, Mother is housewife)

    Job Status: Working in IT Company in Pune
    Annual Income: 9 Lakh
    Home Loan: 20 Lakhs HDFC bank almost 1 lakh is paid.
    Deposit & Investment:
    1. LIc beema gold plan : 3296 PA (this plan is opted in my college days and mu aunty is LIC agent so I took this one. Almost 7 years paid and already I got some return, it is also money back policy. Also this plan offers 3 months emi payment in case of Jobless)
    2. HDFC Life Insurance: 25000 PA (SA 5lakhs with money return. It starts after 5 years and 2 years already completed.)
    3. Max New York whole life insurance policy : 35000 PA (SA is 10 lakhs and it will give cover up to 80 years of age and bonus will be calculated up to 90 years)
    4. General Medical Insurance: 13000 PA (This medical insurance is taken specially for parents)
    5. HDFC tax saver Mutual Fund: 24000 PA (From last 3 years SIP and continuing.)

    Savings in Bank: Around 1.5 Lakh

    Obligation: I have a home loan (HDFC Ltd) of 20 Lac. Monthly Installment is 20305/-

    I want to take term insurance plan so please guide me which plan/company is good and what is the ideal tenure. I know that LIC’s premium is too costly.
    You always suggest that take additional accidental and critical illness insurance plan but I didnโ€™t understand the accidental plan. Could you please elaborate it?



  173. Hi Basu,
    Myself Venmani aged 30 looking for term insurance both for myself and my wife 28 years.
    Does any one provides term insurance for couples with good premium?
    I am looking for insurance with accidental/terror/rider/illness cover. Please suggest.

    1. Venmani-There is no such option like you both husband and wife can have joint life insurance. Hence you have to buy them online. Second thing, buy the accidental or critical illness insurance separately instead of buying them as riders.

      1. Dear Sir, Why do you advise not taking accidental cover and critical illness as riders ? Kindly consider me a layman in these!!

        1. Satish-First thing is they offer with limited Sum Assured and also stand alone policies have unique features which you will not find with riders. Hence it is always better to opt for separate.

  174. hi sir ,i am kirti 23 yrs of age and i just started my professsional life in a mnc.from last 1 month i am searching for term plan for around 15 yrs for 1 crore sum assured.please help on this .which one to choose and maximum risk free and highest claim settlement.what if i go for pvt company .my parents belive LIC is best .

    please advice sir

    1. Kirti-First thing to ask you is, your age is 23 yrs and why you want to restrict your cover till your age of 38 yrs only? What you will do after that? You can choose from LIC’s online term plan (recently launched and link is available in above post), HDFC, ICICI, Max or SBI.

      1. hi sir ,how about hdfc .do they settled their claim easliy? hdfc is @ # 3 in claim settlement .please advice.

  175. Dear Sir, I am 38 year , purely non smoker with annual income around 8Lakhs.
    I am planning to buy online term insurance for Rs. 50 Lakhs from Kotak e-preferred plan.
    What is your openion, should I continue or any other best opetion.

  176. Dear Sir,
    Many thanks for your Nobel job which is giving right direction for many.
    As you are guiding many i would like to have your extended support and guidance to me also.
    Here is my details.
    Working in UAE from past 9 year
    Annual income of 12,00,000 IRs
    Child-1( planning to have 2)

    And my request is-
    -Could you please suggest a policy from a trusted policy provider which will have risk coverage to full family with a sum of 50 lack or more
    -Policy should have good returns if not claimed
    -Annual premium not more than 25,000/IRs.

    Please Please guide me

    1. Jeevan-My only recommended insurance policy is TERM INSURANCE. So you can buy it online itself. Sadly term insurance is a product which fulfill your insurance need but not your GOOD RETURN need. Term insurance especially online are very cheap and fit in your budget.

  177. Dear Sir,

    My age is 34 and I am planning to buy term insurance for 50 lacs for 30 term years. As of now I have compared few term insurance plan from different companies.
    Few companies I found Max Life, ICICI, SBI. Could you please suggest me which company is better for term plans in all the factors.

    In future, is LIC comes with online term insurance? If yes plz let me know approximate date plz.
    Awaiting for your reply.

      1. Dear Vinod,

        As suggested by Mr. Tongatti, you may go for ?ICICI Pru iCare II.

        ?Here are a few points to help you make an informed decision to buy a term plan:

        1. ICICI Prudential Life Insurance has one of the best claims settlement ratio in the industry at 96.29%*.

        2. Plus we are also one of the fastest in claim settlement and clear more than 90%* claims within a month.
        * As per IRDAโ€™s Annual Report for FY12-13.

        To know more about our online term plan visit:

        Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.


  178. Dear Sir,
    I am a regular reader of yours.

    I have tried to summerise the term plan data available in site for scrutinising the best term plan.
    I got some data and some I dint.
    Just go through it.

    If I am in wrong track, plz correct me.
    Already I have spoiled my financial life by investing in ULIP,LIC and stock market without knowing ABCD of investment. I dont want to repeat the past mistake again.

    As you are the pioneer of this field, my sincer request you to guide me to choose the right one

    its my apeal to other reader of this site also to guide me.

    (Source: IRDA Annual Report 2012-13)

    Online term life plan premium for 1 CR sum assured for 37 year old non-smoker male for policy term of 30 years
    Annual Premium for Rs. 1 crore Term Insurance

    Sl.No. Company ! Product ! Annual !Claim Settlement! Solvency!Average time ! Total fund !
    Name ! Name ! premium !Ratio (2011-12) ! Ratio !to claim settle (days)! managed in crores!

    01 LIC Amulya — 97.4% 1.54 30 14,02,991

    02 ICICI Icare@ 20386 96.5% 3.27 19 73,371

    03 HDFC Clik to 13800 96.2% 1.72 19 40,108
    Life protect

    04 SBI life E shied 21214 95.5% 2.04 19 51,819

    05 Kotak E – 24832 92.1% 2.67 26 10,862

    06 Birla BSLI — 90.9% 2.89 27 22,779
    Sun Life protector

    07 Bajaj I secure —– 90.6% 2.86 28 37,978

    08 Max Online 12360 89.8% 3.65 23 20,458
    NewYork term plan

    09 Aviva I life 11889 89.6% 5.4 21 7,890

    10 ING My term — 88.8% 3 30 6,600
    Vyasa insurance

    11 Bharti E- 11798 87.7% 2.14 31 2,090
    Axa protect

    12 Aegon I term 12023 66.1% 3.22 19 1,079

    from the above, what I conclude is
    Max New York Life and Aviva I Life Term plans are csoring good marks in terms of
    1- Low premium
    2- Good claim sattlement ratio
    3-Solvency ratio
    4-time to claim settle (day)
    5-Total funds managed in crore

    I amy be wrong also because some data are missing and I am a layman in finance matter.

    please suggest me the right direction to finalise a term plan
    I am struggling a lot since 4 month for finalising…

    With Regards,

    1. Manas-You can go ahead with MaxLife or Aviva and good to know that you are very much interested in learning and then proceeding for product. Go ahead and declare all facts without hiding anything.

  179. Dear Mr. Basu

    Thank you for providing such important information in a easiest way.

    I want to buy a insurance plan. Please help

    About me :

    Name : Sunil Yadav
    Age : 34 years.
    Driking Habit : Socially Smoker and Drinker.
    Marital Status : Married.
    Dependent : Parents ( Father is retired, Mother is housewife & spouse is not working )

    Job Status : Working in Finance Company in Mumbai
    Annual Income : 5 Lacs

    Deposit & Investment in Mutual Funds / Shares : NIL
    Savings in Bank : Around 1.5 Lacs

    Obligation : I have a home loan ( HDFC Ltd ) of 6.25 Lac. Monthly Installment is 7500/-

    I Need your suggestion in :

    1. First of All, I dont know any thing about insurance / Term Plans / Mutal Funds.

    2. I Dont have any insurance as of now, So i want to buy insurance plan. I am totally unware / Confused about insurance policies or Term Plans. So Please suggest which life insurance policy is best suitable for me.

    3. If Possible, please provide information on Life Insurance & Term Plans ( as i think, life insurance is vanilla/plain – insurance, whereas Term plan is an investment, that’s what i think )

    4. Also, I have gone through with your chart, which made me more confused. We all know, LIC is trusted brand and has good gives good claim but If Private company’s ( Like, Aviva & Aegon Religare ) are giving same policy at the price of 8,200/- why anyone should pay 24,000/- for LIC Policy.

    Please help..

    Sunil Yadav

    1. Sunil-Term insurance are pure insurance product rather than traditional plans which combine your insurance need with investment need. I think basics of term insurance are already known to you. You can choose any of the above said product at your comfort by going through their claim settlement ratio and premium affordability.

  180. Dear Basavaraj Tonagatti ,

    I (35years, Non-smoker,Non-drinker, salary 6 Lacs annum) have read all the questions and answers posted on your website. Firstly i must congratulate for the excellent job you are doing for others by helping through your blog.

    I wanted to know that i have gone through claim settlement ratio of various companies who are offering online term plans and found ICICI,HDFC,SBI life,MAX life better than AVIVA, Relaince, Aegon Religare as per the IRDA report 2012-13.
    Out of these Max Life is offering a cheap online plan of 50 Lacs for term period of 35 years and has good settlement ratio.

    My question is that in your whole blog you never recommend Max Life why is it so?
    If you differ from my choice then suggest me the other company.


    1. Amit-I agree that on few occasions I have not recommended over HDFC OR ICICI. Simple reason is, few have more faith with LIC, HDFC or ICICI (as a banker). So it is just a coincidence that I might have not recommended considering the type of comments. But it does not mean that I am against MaxLife. You can go ahead ๐Ÿ™‚

  181. Hi Basavraj

    First of all, great blog. Information is very precise and helpful even for a rookie like me.

    I am Si, 21 year old.
    Healthy. Non-smoker.
    Work in a Digital marketing company. This is my 1st Job and my salary PA is 3.5 lacs.
    What I would like to ask you sir is that, about 7 months ago when i was fresh outta college, 1st job, bought LIC Jeevan Saral Policy. I am paying 42876/- yearly premium. I was told to go against any term plan as the agent sold me the typical and misguiding myth thought ‘Term plan is a waste of money’.
    However, now I am convinced that I made a mistake opting for that policy. So far, I have paid 7 Premiums, totaling around 25000/- and my next premium is due next week. What would you suggest? Shall I discontinue the policy and opt for Online term plan and other profitable investment instruments like Equity? I know letting go off this policy means forgetting about my 25k but I don’t wish to continue it for next 3 more years just so I can surrender it and get my money sans the 30% penalty (Which I guess will be around 30-35K if I am not wrong).

    1. Si-Best decision is to forget the amount you paid rather than paying for 5 years (Jeevan Saral will be out of lock in without any charges after 5 years). But I know it is hard to loose money. Instead think that you are paying the penalty for your ignorance and start a fresh with understanding and doing your own research.

  182. HI Basavaraj,

    Firtst of all You r doing grt job ๐Ÿ™‚
    I am 28(M) years old, Single working in IT company
    My current CTC is 6 Lakh/Year.
    I have start PPF account last year with target of arround 50k per year
    i have FDs of 1.5 lakh
    I have started RD(online) this year 5k/month @ 9.05% for 1 year will invest this amount after 1 year.
    Will start investing in mutual funds(Please suggest me how much i should invest per month) ??
    I did not have any insurance policy as they do not return enough.

    I have paid my education loan(1.50 lakh) in 2011.
    Not fully independent as I have liability towards my family .

    But i did not have any term/health insurance apart from company(15L/2L).
    I am non smoker and non drinker and did not have any other health issue except kidney stone.
    Recently i have done laser treatment for removal of kidney stone

    1.Now i want to buy a term insurance and health insurance.
    – I tried to purchase Aviva Term insurance for 50 lakh in 2011 but they refused after medical test as i have history of kidney stone though they did not disclose medical report with me at that time.

    2. I also did not have any health insurance right now .

    Now my question is that will any insurance company will provide me term/health insurance by knowing that i have history of kidney stone and last month i have done laser surgery.

    If yes, then please suggest some..
    If no, then please suggest alternative.


    1. Ashwani-Kidney stone is not that much bigger health issue as you already underwent for the treatment. So try your luck with other insurers also with disclosing these facts. But who will issue the policy to you will not known to me. Because each company have it’s own underwriting rules.

  183. sir namaskar
    i want to know that i have a termpolicy of lic for rs.2000000/- for 25 years and i want to take one more term policy from bharati exa for rs.2500000/- for 35 years please advice it would be right decesision or advice me what should i do?
    i have also a traditional policy of lic jeevan anand for rs.105000/- for 25 years and one mony back policy lic jeevan surabhi 50000/- for 25 years

    what i will do advise me urgentyly?

    1. Anil-You can choose the term plan based on your comfort with company you try to buy. But my only suggestion is disclose all materiel facts without hiding anything. Also first try to dump the existing LIC policies. Because they are not good neither return generators nor provide sufficient insurance cover.

  184. I am planning to buy LICโ€™s Amulya Jeevan โ€“ II, 35 year policy for 50 lac sum assured.
    My age is 32 years( DOB 5th Feb 1982) .
    Would you please calculate yearly and half yearly premiums with service tax for me ?
    I am suffering with meniere’s disease since one year.
    Will they accept my policy and what kind of medical tests needs to be attend?

    1. Narasimha-Premium as per your requirement is Rs.17,641 per year. Regarding your health issues and other details like which test you need to undergo will be informed to you by your agent or concerned LIC officials.

  185. i have taken lic amulya jeevan-2 S.A. 3000000 my age is 21 year i want to know that what i should add accidental rider and critical illness into it or take it as other plan. plizz suggest me very early i am in worry?

  186. Hello Basavaraj,

    I am 30yrs recently married and getting 70k take home.
    I have taken LIC’s Jeevan Anand 3yrs back. SA is 5lks. Premium is around 20000 per year,
    I am managing PPF account as well from last 4yrs with 1lkh per year.
    My company is providing me health insurance of 2lkh and group insurance is of 15lkhs.
    I planning to take home loan of around 25lks.

    Could you suggest me which term insurance should I go for ; LIC, ICICI, HDFC, Bajaj, Reliance ?
    50lkhs is enough for SA or should I take 1cr.

    Thanks and Regards,
    Ravi Kumar

  187. Dear Mr. Basu,

    I would like to have your advise on term policy. Last year I have booked an apartment and took homeloan. Then I wanted to buy a Term policy with the same bank, where I took home loan (HDFC). However, adviser informed me that since I am NRI, Term policy is not applicable as per government norm and then he asked me to take house protection scheme, which is very expensive. I accepted to take house protection.

    Since, I am not familiar on government policy, I thought I can ask you whether it is true or not.

    Please advise.
    N. Manikandan

  188. Hi Basavaraj,

    That was the excellent post from you! i really appreciate it. ๐Ÿ™‚
    My case – i am 30 year old guy with clean habits, married and have a 4 year old kid. i have 12L home loan (which i will close by this year end) and planning to take a home loan of 50L in near future. I pay 50K yearly for LIC’s Jeevan Anand and does not have any mutual funds/ULIP’s. Kindly suggest me good term plan which suits to me? I just require a plan with good claim settlement ratio (ofcourse everybody taking term plan for this reason alone).
    Moreover i would like to know how to chose the amount at this time? Please advise.


    1. Satish-I am not a fan of any one single product. Hence based on above tables you can choose the plan according to your comfort. I don’t know what is prompting you to pay Rs.50,000 per year towards Jeevan Anand. Ideal cover should be around 15-20 times of your yearly income+liabilities.

    2. Dear basavaraj,
      you should check out the IDBI federal life insurance term plans. well, according to me IDBI Federal life insurance, they give better returns than even LIC and ICICI. If you are interested to find out contact me on my email- [email protected], i can give you leeds so that you can choose your best policy.

      1. Sashidhar-Here we are discussing about term insurance. So how can IDBI Life Term Plans will give better RETURNS than other term insurance providers? Is there any term insurance in IDBI which provides return?? Also I am not here to get leads for selling insurance. So sorry my friend ๐Ÿ™‚

  189. Hi Sir,

    I bought Term Plan online from Aviva in year 2012 for 1 crore. I had to go through medical examination and cross checked all the necessary documents which on final approval shared to me. I am paying yearly around 9k as premium.
    After reading the article, i am little worried. Should i stop and buy an different Term Plan from ICICI or HDFC.
    Or Do you suggest to buy a LIC Term plan which are too costly

    FYI: I am having 50 lk insurance from Birla Sun Life โ€“ Dream plan and i already have an LIC Plan (Jeevan Saral) for 10 lk (SA).

    Kindly suggest


      1. As Claim settlement Ratio is an important Factor, should i go for HDFC/ ICICI instead of Aviva. As i have already taken Aviva policy 2 years back so now moving to another plan will be costly on the annual premium.

        1. Singh-First take your health check randomly like if any health issues after buying Aviva. Second compare the Aviva premium to the new insurance premium. If after two years of lapse Aviva is still cheaper then continue otherwise move to the said plans. But in my view (I have not done comparative in your case) Aviva still holds cheaper than these two. One more option is, why can’t you buy your future additional insurance coverage from these two players by letting the current insurance to continue?

  190. Hi Basu,

    Nice article. You have advised me to take Term policy. I am giving you my financial details pl advise me the better plan.

    1. My age is 34 yrs, Married, single income, one child(1 yr old)
    2. This month onwards my eranings are 60K take home sal.
    3. I have Jeevan Anand insurance(Taken in Dec 2010) for 10 lakhs SA (premium 49k per year, this premium I am paying from my other income not from salary)
    4. Have Home loan for 15lakhs for Ten yrs(1 yr paid, EMi is 21k) has Term insuarance against property for equal amount of loan (15lakhs)
    5. Has Accidental insurance from Royal sundarm for 10 lakhs(SA is increasing if no claims means)
    6. PPF started with 2500 from April 2014
    7. Planning to invest 2500 in ICICI Bluechip or frankline India Templeton
    8. I have 1.5 lakhs of Health insurance from Office, 3 Lakhs Life Insurance. I dont have any other Health Insurance.

    Now suggest me the Term plan(Other than LIC which is the best ICICI or HDFC or anyother???) and Health Insurance plan.

    Is there any Term plans giving premium back…..

    About Health Insurance I have Zero knowledge. Please guide me. Thanks in advance.

    1. Naren-Come out of LIC plans, try to payoff as much as possible towards your home loan. Don’t make it habit to pay EMI, instead try to close it as soon as possible. Buy health insurance for you and family. In my view go for ICICI or HDFC term plans. Regarding health insurance, I will not suggest you that particular plan is best. But if you are price sensitive then go for Star otherwise opt for Apollo Munich or MaxBupa Health insurance too.

  191. Hi,

    Can you please shed more light on why one should take a health insurance from outside when one has a floater plan available from their company. As it is in my case, I have a family floater plan which I pay 50% and the company pays the other 50% ( sum covered 5 lakhs)

    1. Kunal-Good question ๐Ÿ™‚ Suppose currently you are young with no health issues and company providing you sufficient health insurance cover. But let us say down the line after 10-15 years, unluckily if you have some serious health issues and at that time you changed the company which not offering you health insurance (not to you alone but to whole employee group) then what will be your status? Also let us say currently your company is providing you the health insurance to whole family but if your new company rejected to offer to whole family but to you alone then what about your family members? (this happened with my brother).So it is always better to have buffer by owning your own health insurance.

  192. Hi Basavaraj,

    Before coming to my points, I would like to appreciate your excellent contribution towards the great work, which you have started here :).

    I am completely new in this field.

    Till date I have nothing saved or no investment. ๐Ÿ™

    For time being no dependents.

    Marital status: Single
    My age: 25
    My Income is around .- 6 Lakhs /pa.

    I have decided to start saving and make some investment from now onwards.

    It would be a great help for me, if you could suggest on below points, . ๐Ÿ™‚

    1. Life insurance
    2. Health insurance (provided by company :can be claimed upto 3lakhs/pa)
    3. PPF
    4. Any saving plans which will help in in future.

    If above points are not appropriate, then please suggest as per my income standard.

    Awaiting for your response.

    Best Regards,

    1. Ram-I am happy to hear from your that you planned to start your financial journey. Before proceeding further first do the things which are must for all.
      1) Buy term insurance to the tune of around 15-20 times of your yearly income.
      2) Eventhough your employer providing health insurance, but still go for health insurance on your own (if dependents then include them too).
      3) Buy accidental insurance separately from general insurers. They are very cheap.
      4) Create emergency fund of around 6-12 months household+personal expenses.
      5) Finally start investing based on your goals. Never choose the product based on the feature. But they must match your requirement. Once you do these things then we discuss further.
      Is it ok??

  193. Hi Sir,

    I bought Term Plan online from Aviva in year 2012 for 1 crore. I had to go through medical examination and cross checked all the necessary documents which on final approval shared to me. I am paying yearly around 9k as premium.
    Looking at your article looks like i am little worried. Should i stop and buy an different Term Plan from ICICI or HDFC. LIC Term plan are too costly and i already have an LIC endowment Plan.
    FYI: I am having 50 lk insurance from Birla Sun Life – Dream plan too.

    Kindly suggest

  194. Hello Basavaraj,

    I am 37 years od and planning to take a term insurance from Birla Sunlife(offline) for SA 1 Cr. The preimium amt is around 19K. I see the cliam settlement ratio from the above matrix is around 82%. I have not cheked with other insurances. Could you please suggets me if this is a right choice or if you could suggest me which are the better companies compared to Birla?


      1. Thanks for your response Basavaraj.

        I got to hear from few people that there is risk in the claims settlement if it is an onine policy. How true is this?
        If there is no risk, then why do some companies like LIC and Birla Sunlife offer only offline services? Please clarify my doubt.


        1. Srini-As of now there is no data to claim your statement that there is risk in claims settlement for online policies. Infact there is no differentiation of data from IRDA like claim settlement ratios for traditional plans, offline term plans and online term plans. Then how can one can arrive at this judgement. Now offering of online term plans-it depends on company policy. If they don’t want to risk of agent force then they will not.

  195. Hello Basvaraj Sir,

    I must congratulate and thank you for providing such a critical information with such a easy way. Please keep doing service to humanity like this. We all wish your success and peace in life.

    I was wondering if you could also help me in clarifying my confusion.

    About me :
    Age 32 years.
    Socially Smoker and Drinker.
    Single earner.
    No kids(not even planning)
    Working in an IT firm(Bangalore).
    Annual Income : 17 LPA
    PPF investment 1 lac per year(accumulated 7 lacs by now)
    NSC investment around 1.5 lac
    Savings in account around 3 lacs
    I have a home loan(HDFC Ltd) of 24 Lac.

    Now my questions :
    1). I am thinking of two term insurances.
    (a). 25 lacs for 5 years(called Reducing type I guess) and from any cheapest premium provider company(Say Aegon Religare). I decided this because I am targetting my loan closure in 5 years from now. And once loan is closed, I will close this policy too.
    (b). 1 Crore+ for longer period(say 30 years). This would be the one I would continue life long. I would choose some front runner for this(Say ICICI Prulife, HDFC Click2protect or LIC).

    Am I thinking right or any advice for me?

    2). I am totally confused about riders, I am completely failed to understand what are they, if they are included in package or not, if rider’s sum is extra on sum assured or is part of total sum assured. Any complete explanation/guide/article would be of great help!

    3). I am also inclined towards single shot premium to avoid future tensions. In my stream we change companies almost every 2 years, bank account changes and so on. Please shed some light on it as well.

    4). Also my CIBIL report is not that great, I do not get credit cards etc. Only I know how much pain I went through to get my home loan sanctioned. Would bad cibil report create any problem in getting term insurance?

    At last I would thank you in advance for answering my queries and god bless you.

    Amit Saxena

    1. Amit-Thanks for your kind words.
      1) Good going and planned. Go ahead. Usually insurance plans attached to your loans are good option as premium will goes on reducing with the decrease in liability outstanding. But I think Rs.1 Cr insurance coverage for long term seems less to me by considering your income level and financial dependent. Increase it to another Rs.50 lakh.
      2) Few companies offers such riders and few not. It is always better to purchase them by general insurance companies like accidental insurance, critical illness riders. Yes you are right that they are complicated features, especially the critical illness rider. But you can buy them at cheap rate from general insurers.
      3) It is good that you planned for single premium. In that case disclose all facts properly and maintain the records properly. Advantage of going for single premium is, in case in future if you are not able to generate income even to pay the premium (due to serious health issues) then no need to worry about insurance cover.
      4) CIBIL report is not at all connected with term insurance. Hence you can go ahead with buying term insurance with free mind ๐Ÿ™‚

      1. Hello Basvaraj Sir,

        Good morning and thanks a lot for answering my queries. Trust me, I am feeling quite a relaxed now :). I was also thinking of adding an extra 50Lacs to the SA. Thanks for the advice!

        Just one more thing, under point 2, if you could please explain in a bit detail.

        “But you can buy them at cheap rate from general insurers.”

        What did you mean by above sentence? Did you mean to just take a plain term insurance and start another research for covering other unfortunate incidents in life using some other insurance company? Right?

        Please help in understanding this final point. Thank you in advance.

        Amit Saxena

        1. Amit-Exactly, buy them from general insurers separately. Buy plain term insurance and buy separate plans according to your need. Also few term plans which offer you riders will have some restrictions on SA. Hence better to opt for separate. But choice is your’s ๐Ÿ™‚

  196. Hey Basu,

    Thank you very much for knowledge sharing.

    I am 26 years old, married and having 4 year old son, non-smoker and earning around Rs. 10L/year. I want to know below things.
    1) How much of term plan should i need to take ? If needed can i upgrade to higher amount by time ?
    2) If i bought it from 2 companies than is there any issue when settlement like half money than SA.
    3) How much years of should i take? (65-70 years)
    4) Is it safe and reliable when bought online term plan ?(at time of settlement).
    5) is ECS possible for online term plan?

    Sorry for these much questions but i found here i can get right answer so i posted here.

    Hope all is well.


    1. Bipin-1) Ideal insurance coverage should be around 15-20 times of your yearly income+any liability amount.
      2) There is no issue if you bought from either single company or from all existing insurers. But while buying from second policy onward you must disclose each and every policy details to new insurer. That is a must.
      3) Better to opt for 65 years. Reason for this age is, after this age I don’t think someone will financially dependent on you.
      4) Disclose everything from your side then there will not be any problem.
      5) Yes all insurers opt for ECS and it is best practice. Because if you fail to pay premium within time then policy will be in lapsed condition and again you need to undergo medical test (you need to bear the cost of medical when policy lapses and if any health complication at that time means they again raise premium).

      1. Hi Basu,

        Thanks for your quick response with full details.

        1) Is it a good practice to laddering term insurance policies?
        2) Does it helps us more than single policy?

        – Bipin

        1. Bipin-
          1) It is always best practice to ladder once in a 5 year schedule. Because as you grow older then your responsibilities as well as income also grow. Hence one must re-look at the existing cover.
          2) I don’t think buying number of policies from different insurers will help to that extent. But it is mentality that to distribute risk means safer.

  197. your site is very use full, Pls guide me to select best term life insurance, I am ready to yearly montly 6000 to 7000.


    1. Dear Mariappan,

      You may consider our online term plan ICICI Pru iCare II (Link: Here are two points for your consideration while buying a term plan:

      1. Claim settlement ratio: An important factor to consider while buying a term policy is to check companyโ€™s settlement record and not just premium. Refer to the following ET article:

      2. ICICI Pru Lifeโ€™s claim record: We are committed to honour all claims quickly and fairly. As per IRDAโ€™s annual report for FY13, ICICI Prudentialโ€™s claims settlement ratio is one of the best in the industry at 96.29%.

      Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

      Warm Regards,
      Life Insurance Help
      ICICI Prudential Life Insurance

  198. Hi Basavaraj,

    I’m 25years old, currently earning about 4lac/annum. I was thinking of taking term insurance of about 50lac but by having it split into two different insurers( 25lac each). I had initially thought of going with ICICI and HDFC but now I’m thinking of going with HDFC – Click 2 protect and LIC – Amulya Jeevan – II, so it would offer me best of both worlds(offline and online).

    HDFC was coming to around 3,736/year(tax included) for a term of 30years and LIC to 6,200/year(tax included) for a term of 35years. Is this good enough, or should I skip LIC and go for ICICI, which is about 5.3k/year.

    Also as of now I don’t have any medical condition, but should I get a medical test done before applying for the policyas I don’t want a claim rejection, just because I didn’t do a checkup before the policy.


      1. Yes…there is a logic behind that ๐Ÿ™‚

        What If I hold a single policy and the company does not honour the claim , my dependants wont get anything , but if there are 2 parts , then there are less chances that both the companies with not honour the policy .

        1. David-Great idea ๐Ÿ™‚ But what if the unsettled company pass the reasons to another company (all existing life insurance must be mentioned with policy details while buying new insurance) which is about to settle your claim? Then both the companies will not settle your claim right?? There may be 1000 permutation and combinations to our “What if”, but to be at +ve side, it is always best to disclose materiel facts correctly and be calm.

          1. OK. Currently HDFC doesnt have a medical test for claim below 75lacs and I also donโ€™t have any medical condition know as of now, but should I get a medical test done before applying for the policy as I donโ€™t want a claim rejection, just because I didnโ€™t do a checkup before the policy??

              1. I didnt get your point regarding “risk they are offering you”?

                Also I do want to be honest and disclose all the facts and thats why I inquired whether I should get a medical done or just take a policy of 50lacs as they dont have a medical.

                1. David-It means SA they are offering you to buy from them. It is nothing but they are buying your risk and for that you are paying premium. If company not allow you to go for medical test then let it be. But disclose everything from your end while buying a plan.

  199. Hi Basavaraj
    I am so much impressed with your financial knowledge. Most importantly thank you for helping & guiding others with prompt replies.
    Thank you for being so kind and caring for others.
    How can i subscribe your blog to my email ?

    1. Sandeep-Pleasure ๐Ÿ™‚ You can subscribe by providing the details in right side top corner of blog page and clicking on tab called “Subscribe”, once you confirm subscription by visiting your mail box, then whenever I write new posts, they will get delivered to your mail box.

  200. Hi Basavaraj,

    I am 39 year old and needed guidance on making changes to my existing financial investments if required.

    1. FD-8 Lacs
    2. PPF – Started 3 years back and currently investing 30K per year and will increase slowly.
    3. Flat – 15 Lacs (No Loan)
    4. Flat – Valued 45 Lacs (Loan EMI 28K)
    4. EPF company deducted – 5 Lacs as of today
    5. Term Insurance – 25 Lacs
    6. Term Insurance from Company – 50 Lacs
    7. Jeevan Anand – 2 Lacs
    7. Health Insuarnce from Company – 4 Lacs floating
    8. Shares – 1.5 Lacs
    9. Started SIP (IDFC Premier Equity G) a month back of 2000 and plan to increase slowly

    Any Suggestions? Thanks in Advance.


    1. Venu-Too much towards Debt (Bank FDs, PPF, EPF, Jeevan Anand) and real estate (two flats), less term and health insurance (I will never ever consider employer provided term and health insurance, you must have your own) and if you have time then you can invest in direct equity at your own risk otherwise try to increase your investment through mutual funds.

      1. Really appreciate your quick response.
        Yes agree and will increase the term insurance and also mutual funds. Do you think I need to discontinue Jeevan Anand and better divert the premium for term?

        Do you see any other modes other than Mutual funds and do you want me to decrease towards debt and readjust in something else.

        I plan to invest in HDFC Top 200, is it a good bet?


        1. Venu-It is better to discontinue if Jeevan Anand completed 3 years. Please keep in mind that Equity is for long term and Debt can be used for your short term goals. Currently HDFC Top 200 Fund is not going good. Hence you can choose Franklin India Bluechip Fund (G).

  201. Dear Sir,
    Your website is really very helpful for little knowledged people like me in insurance. Thanks for running it so effectively. I want to buy a term insurance and mainly interested about HDFC and LIC.
    I want to know-
    1. What is longest period of term insurance available and with whom?
    2. Is there any additional benefit on any plan like accidental benefit,critical illness,Accidental Disability / Dismemberment?
    3. Do LIC have any plan to go online?
    4. What will be the lowest plan/premium for LIC and HDFC.

    My DOB is 28-12-81,non smoker.expected cover 50 lakh.
    Also request you to make me subscriber of your website.

    1. Pinaki-Thanks for your kind words.
      1) Instead of choosing the long period of term insurance, choose a plan when you are planning to retire. There may be few plans which offer upto 70 yrs. But restrict your buying to retirement age.
      2) Few offer accidental benefit as a additional riders. But I strongly believe that to buy separately from general insurance companies as they are very much cheap in price.
      3) There is no such online plans in LIC except Jeevan Akshay (pension plan). Also in my view they are not in mood to offer online plans to customers.
      4) Compare to LIC, HDFC seems cheapest.
      You can subscribe to our mailing list by entering your mail right hand side area of page and click on tab Subscribe. Mail will be sent to your registered email id where you need to confirm your subscription. After that whenever I publish new post then you will automatically receive in your inbox.

      1. Thank you sir your your kind clarification. I have a LIC Money back policy Bima Gold of 36375 pa installments. The plan is for 20 years. I have paid 4 installments. The last date of submission of installment is 21st Dec. I am planning to discontinue the policy and go for a term loan. I am suppose to get 1 lack after I pay this year’s(5th) installment. Am I in the right path and when is the best time to discontinue and how much money I will get back.

        1. Pinaki-It is good decision to discontinue the plan. But at the same time, I suggest you to visit your nearest branch to get an idea about what will be your surrender value now and after getting survival benefit. Then accordingly you can take decision.

  202. Hello Sir, I am married, 30 yrs old, mother of a 5 months old. I earn 42000 / month. My investments are:

    Already taken:
    LIC – Rs 9489 /yr
    HDFC Tax saver – 1500 / month (I have to restart paying as the minimum term of payment ended last year in may.)

    Planning to take:
    PPF for my child: Rs 1000 / month min
    PPF for myself: Rs. 500 / month
    A term plan
    A plan for my baby’s future : LIC Jeevan Ankur

    I seek your suggestion on discontinuing any plan or considering any other. Your reply will be greatly appreciated!


    1. Jiya-If you completed 3 years in the existing plan then better to discontinue that and diver it towards term+PPF. PPF is good product. But at the same time we must treat this as a best debt product. This is not suffice to meet your kid’s future goals. Hence start investing monthly in well diversified mutual funds like Franklin India Bluechip Fund (G) along with PPF. Stay away from Jeevan Ankur. Try to buy term insurance around 15 times of your yearly income+current values of your kid’s education and marriage expenses.

  203. Dear Basavaraj,
    Thanks for the help you are providing to us through you Blog. I am 36years(11-08-1977). I bought click 2protect HDFC for SA 1crore some 8 months back. Can you let me know if I CAN take another term policy with LIC amulya jeevan for 50 lacks. will there be some problem during claim settlement with HDFC OR LIC if I take two policies. Do I have to inform HDFC that I am taking or took LIC TERM POLICY.

    1. Fani-There will be no problem in buying another term plan from different insurer. No need to mention your future insurance buying to existing insurers. But you must disclose all your existing insurance details during new purchase with new insurer.

  204. Hello,

    I am currently investing 16k per month in SIP. I have choosen below funds. Please could you advice if I am investing in right funds.
    ICICI Pru Focused blue chip fund – 3k
    UTI opportunities fund – 5k
    SBI Magnum Midcap fund – 5k
    Birla Gen next fund – 3k

  205. Hello, I have taken term insurance through HDFC click to protect for 1 crore. Wanted to take 1 more for 1 Cr from a diff insurance provider (Except LIC). Click to protect covers till 65. Is there any other which offers good term plan and covers till 70-75? Regards

    1. Kishore-First understand the exact SA need on your life. If you still feel that the current coverage is lesser then why can’t you go for same company? May I know the logic behind choosing the different insurer this time? If it is spreading your risk among insurer then forget about it. What if your new insurance company reject the claim and pass the information to HDFC (because you provide the existing insurance details to new insurer)? So instead, my suggestion will be to buy with the existing one and disclose all materiel facts promptly even if they not asked for you.

  206. Sir,
    I want a term plan of 1 crore.
    I am 37+
    as per my income, I am eligible for 1 crore only.
    I hev seen the article with the comparision table, but still confuse….
    I am not from economics background , therefore difficult to decide
    can you guide me to have the best term plan

    1. Manas-First let me know how you arrived to judgement that you are only eligible for Rs.1 Crore. Insurance will be purchased based on your future earnings+financial responsibilities. Hence don’t restrict yourself to that amount. Instead let insurance company decide that they will issue that much SA to your life. You can choose from HDFC, ICICI or LIC (offline and costliest compared to others). No need to worry if you disclose everything perfectly.

  207. Dear sir,

    I want to buy term insurance , my age is 38 non smoker, good health , no BP sugar etc… good health… in which term insurere is best for me… my net incomer after my expenses 10 thousand per month. so please suggest me..
    term need for 35 years

    1. Saleem-You can choose from above list. I will not recommend you a single plan stating this particular plan is best. Instead based on your comfort you can choose. Ideal insurance coverage should be around 10-15 times of your yearly income.

  208. Sir, Waiting For Your Suggestion on Personal Accident Policy, like you gave for Lic Amulya – Anmol & Other Term Insurance, Please Post Your Suggestions-Data, ratios or feedback On Personal Accident Policy.

    Thank You Very Much !

  209. HELLO SIR,




    1. Alka-May I know the reason for combining your investment with insurance need? If you buy term plan and simply invest in PPF then you have greater advantage of earning more than these traditional LIC plans.

  210. Dear Basavaraj,

    I am 42 years old and my take home pay is 60000 PM. Want to go for term insurance plan. I am a non-smoker and do not have any specific health issue except elevated BP. I am planning for the following:

    – 4 Term insurance of Rs50 lacs each with 4 different insurance providers. Idea is to spread the risk involved in lower claim ratio
    – I expect these plans to cover age upto 65 or 70

    Do you think it is good idea to go ahead with the above given plan. I would like to know wether 2 cr is an optimum amount.

    Thanks in advance,


    1. Jothy-First thing, how you arrived at the value of Rs.2 Cr is suffice to you? Second thing, we assume that you spread your risk among all insurers and if death claim arises and one insurer deny the claim and passed the reason for the same to other insurers (as they know your insurance details) then what will be your dependents status? Instead of complicating your life, I suggest you to go insurer whom you think reliable and buy it with disclosing all factors (even if there is no option to disclose it). Then no one can deny claim.

      1. Dear Basavaraj,

        Thanks for your quick reply. I have arrived at 2 cr. just based on my gut feeling and not based on any calculations / logic. I heard people saying that term policy should cover 10 to 15 times of my salary.

        Further, I will go with your recommendation of going with one insurance company instead of spreading.


        1. Jothy-That’s good idea of having term plan of around 10-15 times, but include your current liabilities and your financial dependents financial goals current values (for example a home loan of Rs.50 lakh or your kid’s education cost in today’s term of around Rs.20 lakh) to arrive at final value of your life insurance requirement.

  211. Whats the difference between online & offline term plans, also please let me know if IT papers are required , if yes then for what SA it is required


    1. Amit-In online plans there will be no agent or middlemen, you need to buy it online. Hence they are cheaper. But offline plans must be through middlemen like agents only. Hence they cost you more. Yes, in all cases income proof is a must. Irrespective of SA, these days insurance companies ask for income proof. Because if you not have any income then according to them insurance is not required. This is also be called Human Value.

  212. Very good work, plz keep it up. In case I send you my policy details then can you tell me that I made a right choice or wrong one. All my policies are few years old.

    1. Rajiv-Thanks for your comment. Please let me know when you subscribed and I think you not received this particular post to your mail id. Reason for this is, I set time to send mails to all subscribers on each day at 10.30 AM. But I published this post today after 10.30 AM. Hence you will receive it in your mail tomorrow at 10.30 AM. If you still not received then let me know. I need to check it.

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