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.
Note–
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 !!!
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.
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.
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Are premium rates for term policy at HDFC or ICICI from Policy Bazar same as that purchased online from HDFC or ICICI ?
Dear Bharat,
Yes. But never allow Policy Bazar influence you to change your decision.
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.
Bharat-Hard to say as the data you opted to compare is not visible from all insurers.
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.
Thanks,
Parimal-Whether you go with company A or B, you must disclose all facts.
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.
Subho-Buy plain term insurance than these fancy features.
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.
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.
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??
Sharmin-Refer my earlier post "Top 5 Best Online Term Insurance Plans in India-2016".
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.
Ashish-Go with your selected company Aegon. Term should be up to your retirement age.
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.
Bapan-Whether anyone financially dependent on her?
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?
Bhushan-You can go with Max, but not don't for that yearly payment at death.
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.
Shyam-This is not the new regulation. It was old one. But IRDA cleared the dust. So old policies will also come under this ruling.
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
HbA1c,
Medical Examination Report
ECG
Midstream Urine Analysis
Fasting Blood Sugar
Serum Cholesterol
Complete Haemogram
BIO
HIV
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.
Ashish-In all probability Max Life will also increase the premium. So if you are comfortable with HDFC's proposal of premium, then simply go ahead.
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...
Ashish-Incremental premium in life insurance?
Sorry Basavaraj, by incremental I mean higher premium then avg premium for sane age without any disorder.