Best online Term Insurance Plans in India for 2015-A comparative list

Last year I wrote an article “Best Term Insurance plans in India (After 1st Jan 2014)” after IRDA changes. However, I found that from that period insurance companies launched many more term plans. Therefore, I thought to update the list by writing a post on this.

Note-Updated my choices of “Top 5 Best Online Term Insurance Plans in India-2016“.

Before proceeding further, first have a look at where individual insurance companies stand when it comes to claim settlement ratio. I already published the latest IRDA data in my earliest post ” IRDA Claim Settlement Ratio 2013-2014-Which is best Life Insurance Company?“. However, I will update the same and share with you all in below image.

Note-Recent update regarding claim settlement ratio from IRDA.

IRDA Claim Settlement Report 2013-14

You notice that LIC tops the list. However, how many term insurance claims all these insurance companies settled is still undisclosed. Hence relying on the claim settlement ratio alone is not worth. Instead, you must check the premium affordability, your comfort with the company, their service availability, and features.

I strongly advocate the idea of buying plain vanilla term insurance. If you add any riders like accidental or critical illness, then there are so many limitations to it. Instead, if you buy them separately from General Insurance Companies then you will get more featured standalone product.

What will be ideal term?

Before understanding, let us first understand the importance of life insurance. When you are buying life insurance, keep it in mind that it is pure term insurance. Therefore, you will not receive any return after policy maturity. You are replacing your future earnings, current liabilities, and financial goals in current terms. Hence, the ideal insurance coverage must be up to your retirement age.

Because once you retire then your earnings will stop. Almost all financial goals like kids’ education or marriage will be at an end. That is the reason I suggest to have term insurance up to retirement age. There may be so many theories, which differentiate from my view. But majority of experts agree with what I am saying. Therefore, I have listed few reasons, which makes you to restrict your term insurance to till your retirement age.

  • Your working life ends at retirement. Therefore, no earning means no insurance.
  • By the time you retire, your major responsibilities like kids’ education, marriage, or retirement corpus creation are almost achieved.
  • Usually insurance companies also offer term of up to 65 to 75 yrs of age only. The term insurance of Rs.1 Cr or Rs.5 Cr seems to be a huge amount. However, the same will not be at the time of your retirement.

What factors matters you to choose the term insurance, which you feel BEST?

  • Premium-You are opting for online term insurance only to save few thousands. So obviously, you must look for cheap and affordable to your pocket.
  • Comfort with company-Few may have bad experience with a particular insurance company. So if you are not comfortable with that particular company then better to avoid it.
  • Features-Select the company which suites your plan requirement like age or the frequency of payment.
  • After sales service-This must be your priority. Because the claim will in your absence. Hence, choose a company, which you feel best in service.
  • Claim Settlement Ratio-This gives a small glimpse of best insurance company. However, as I said above, this must not be the sole criteria to choose term insurance. Because data is not so authentic to judge.

Based on above features and requirement you can opt your BEST term insurance. Below are the term insurance products of all insurance companies.

Best Term Insurance Plans 2015

In the above table of claim settlement ratio, I mentioned 24 companies’ data. However, while preparing table for term insurance, I neglected few. Because few new companies are not having term insurance or few not offering any online term insurance. In addition, I selected pure term insurance excluding riders, premium return plans or any other additionally featured plans. 

Hope this information will suffice in short listing your term insurance easily. 

430 Responses

  1. Sir, I am Sivatej, age : 41 years, Annual income : 6.85 lakhs, smoking is a habit, liquor is very occasional habit (once or twice in six months), I wish to take a online term plan and opt to buy canara hsbc obc “i term plan” . can you kindly suggest whether i proceed with this policy or any other alternatives ? Thanks in advance

  2. Hello Sir,

    After going through your post, I called Max life insurance company to buy there online term plan.

    Below are my details, to my surprise, the person on the phone informed me that I do not required to go for any medical test and can buy the plan directly after paying the premium amount.

    My worry is, if they are not doing any medical tests now, do you think there are any chances they may reject the claim in future because of this reason?

    Please provide your inputs on the same.

    Age:- 29
    Cover period:- 30 years
    Cover:- 1 cr.
    Insurance company selected:- Max life insurance

    Paritosh Maithil

      1. Thank you sir for the prompt reply, I have thought the same and would ask Maxlife to either do the medical test or will not buy the policy.

        I have already started searching for other insurer, your thought clears my confusion.

        Thanks once again

      2. Dear Sir, If the SA is Rs.50 lakh, then also do you suggest to go for medical test even of insurance co. is not asking me to go for it?

        1. PKA-What I am saying is, if you disclose all facts properly (for health status medical check is the way), there is less possibility of rejection. Insurance companies not suggesting you for medical examination does not mean they are generous to you. But they get many reasons to reject your claim.

          1. I am a 32 years old tea-teetotaler planning for Rs.50 lakh SA. Lets see what they have to say when I approach them. Anyways, thank you for the prompt reply.

  3. hi

    Can you suggest me for best term insurance plan i can buy online.
    my age is 46 now and my wife is 39 we want to take 1 cr each through online.
    please remember i am a diabetic and i want to mention that in the policy.

  4. Dear Sir,

    I have received a call from poliy they have suggested me HDFC clicl2 prtect plan but i have found against review about the company services kindly suggest me company vise which is the best i mean HDFC or ICICI.

    1. Parwati-Firstly don’t buy the product based on the company which called you or based on ME. I have given list based on criteria I opted. For me, all are equally good and bad. Choose the one which you are comfort.

    2. An Employee performed LTC from the office where he was on deputation and now the bills were submitted for settlemnt in his parent department. Can it be possible?

  5. hi
    i have compared all top insurers and i found edleeiss tokio has the term plan covering till age of 80 yrs with additional riders at nominal cost. only thing is its a new company in the market and at present has low CSR. kindly tell me should i go ahead with edleiweiss? is there any red flag ?

    1. i think if some insurer provides coverage till 80 yrs of age it means he will have to pay most ofthe claime. in that case company will reject claims intentionally. am i right ??

      1. thatnks for ur feedback sir. now even max has increased cover upto 75 yrs of age.
        i want to take a term , a disability benifit insuranace and 1 criticare assurance which pay limsum in case of critical illnes. kindly suggest should i take it seperate or look for the policy with these three benifits. only edliweiss tokio providing all these in a single policy. so my questions are –
        1. what the harm if i take cover upo 80 yrs ?
        2. if i getting my desired benifits in a single policy but company is new with very low CSR should i procced ?
        3. how do u see edleweiss as term insurance company ?

        1. Abhijit-Try to buy separately. You will get more add-on features than buying as riders.
          1) Nothing harm. But have you calculated the value of current sum assured you are buying now. So is it useful?
          2) I said don’t combine.
          3) It is BEST if you feel comfortable with company, feature and pricing.

  6. Sir,
    I am planning to take 2 term policies(1Cr each). One with my name and another for my husband.
    When I checked SBI,HDFC,LIC are showing high amount premium.
    Please suggest me the low premium and trust able company?

  7. Thanks for reply. On basis of your suggestions, I am going to choose ICICI Life (with no rider) for 40 years (my current age is 33) non smoker. I have one question about Payout options ( how your nominees should receive the payout).

    When I choose lump-sum payout in case of causality they charge rs 15427/year but for regular income (10% payout each year for 10 years after casuality) they are charging rs13113/year for 40 years. I though lumpsum option is better because why to let them take the interest of my money for 10 years but could you please tell your frank opinion which one do think is better?

    Many Thanks again.

  8. Dear Sir
    I am 38 year old – having term plan for Rs.10. Lakhs from Aviva ( LIFE SHIELD ADVANTAGE ) in this policy i had a maturity benefit of premium paid with out service Tax, yearly premium annual Rs.5660 – term 29 years.- right now 3 premium paid.

    Please advice me sir, i had a plan to increase my term plan by additional 20.00 LAKHS, so advice me whether i can invest in same plan or swift to any other plan with other insurance company.



  9. I was comparing the Term Policy at PolicyBazar, Guy called me and suggested to buy (1. ICICC, 2. MAx, 3. HDFC). As pwr your article i was thinking of going with ICICI or HDFC, but now i am confused with Max. Please help and suggest

    Have one more question, i am 29 years old, will it be a good option to by two 50 Lkh policy or i should buy one 1 Cr policy. If i buy two different policy will that be fine, will there be any complication while clam.

  10. in your Above table of premium for term plans you choose Tata Aia I-Raksha Trop Case Instead Of I-Raksha pls get in Touch & Provide The Correct Table Term is 40 yrs nd Max Age is 80 yrs say 40/80

  11. Hi Basavaraj ,
    I am 45 years male. My Annual income 7 lacs. I want to take online Term plan for Rs.75.00 lacs. I am confused among
    1. Kotak Preferred Term Plan
    2.Max life Basic Life Cover

    Please suggest me the best among above mentioned.

    Thanking you in anticipation

      1. Thanks Mr Basavaraj,
        Your article “Top 5 Best Online Term Insurance Plans in India-2016“ is cleared my confusion.

        1. Thanks brother for your valuable information.Such kind of information is very required for a region where concerned financial co.rarely working.I myself have very interest in insurance matter and mutual fund too. So please write further which can be directly helpful to us in the field of financial planning.

  12. My monthly Salary is Rs. 10000 so I not able to take obline term plan from any company. Please suggest for offline term plan with possible insuraed amount as per my salary so company will not reject my praposal due to salary. Thanks.

  13. Hi,

    I have a couple of queries on Insurance front:-
    – Is is a wise option to invest in 2 Term plans from different Companies say- 1Cr split in 50L from 2 Top Term Insurance players , in case of any uncertainty of non payment from any one of them?
    – I also have a couple of LIC policies (Jeevan Saral endowment plan), in the unfortunate event of death will the assured amount of both policies be paid out to my family, as lumpsum ? or will it pay out only the higher amount policy ?

  14. Sir,
    I want to take term insurance plan. my detail as under
    1) Age 44 year
    2) Non smoker, Male
    3) Want to take base term 50 lacs with 50 lacs accident benifit and up to 60 year of age
    4) net salary : 10 Lacs per Anuum
    5) There is no any illness
    6) I am working in private company: policy given 25 lacs accident policy, 3 lacs medical hospitalisation policy

    Requesting to clarify the same
    1) with or without accident benefit riders or alone term insurance. If with accident death benefit rider what is best amount/ratio
    2) illness rider take or not
    3)60 year is ok or need to more
    4) Sometime company offer benefit along with base policy itself. Pl. suggest best policy with maximum benefit.
    5) Some advise that after 40 year of age, whole time insurance is better than term insurance.

    1. Patel-1) Without any riders.
      2) If you have family history of critical illness, then opt.
      3) Term must be up to your start of retirement age.
      4) Opt the base plan.
      5) Whole Term Insurance? Unable to understand.

      1. Thanks a lot sir,

        It is typing mistake, correct is whole life insurance. Some people asking that whole life insurance are better than term insurance after 45 year of Age. Pl. advice further.


  15. Dear Sir,

    I am planing to buy the term policy from Max Life Insurance. What i am not sure is whether to opt for the monthly income plan or not.

    My policy premium comes about Rs.13,500/year for the basic life cover, whereas it increases to Rs.18,126/year for the monthly income plan. After which I’ll get Rs.60,00 per month for 10 years at end of the policy period

    I am not well versed with the present value of money and other jargon that various websites are throwing to compare these plans.

    Kindly suggest !!!

    Thanks & Regards,

  16. Sir,

    I want to purchase Term Insurance plan and I have been comparing various plans available. I have gone through – ICICI Pru, LIC, HDFC and TATA AIA iprotect supreme. I am more keen on TATA AIA iprotect supreme Term insurance due to its low premium. Can you suggest how is it?

  17. Sir, I fould SBI Life E shield online term plan cheapest among top companies with just Rs 12470 annual premium including taxes. Please update if possible. I guess you havent considered online plan of SBI.

  18. Hello Sir,

    I prefer Bharti AXA eProtect. i go for a cover of 1 crore for 30 yrs (My age will be 65 then)
    Please advise

    1. see claim settlement ratio of this company and try to understand that first…always keep in mind, policy with lowest premium certainly has some drawback..dont get always lured by lower premium…

  19. dear sir, can you suggest me about home insurance while taking home loan. actually i have taken home loan of 30 lakhs. is it useful to take the home insurance which says that while the borrower dies the insurance company pays the rest premium. further i inform you that i have already purchased a term insurnace of 50 lakhs

    1. Indrajeet-It is not only home loan, but you have to cover the risk whenever you go for any loans. Hence, it is advisable to go with that. But not mandatorily with the product the bank or your lender offers.

  20. Sir,

    I prefer ICIC Prulife Or SBI Term plan but leaning towards ICIC Prulife. Now i see there are 2 term plans from ICIC Pru Life one is ICIC Pru ICARE and other is ICICI PRU IPROTECT SMART. WHich one should i go for for a cover of 1 crore for 30 yrs (My age will be 65 then)

    1. Dear Adarsh Anand,

      You can opt for Life option of the ICICI Pru iProtect Smart in case you are looking pure term cover without any riders.
      To know more visit the below link and fill in your details and we will have one of our officials to assist you with the details

      ICICI Prudential Life Insurance

  21. Need help !
    Wants to buy 50 Lakh term insurance plan, but little bit confused.
    HDFC Life charging Rs 7700 while Max Life charging Rs 6200 for 30 yr terms.

    Please suggest with whom I can go? Which is the most trusted one for 30 yrs.


  22. Hi

    I am planning to buy pure term plan of 1 cr. and have shortlisted SBI Life and PNB Met life.

    Premium to be paid is almost half with PNB Metlife compare to SBI Life.

    Which one to buy? Please suggest

    What is your views on PNB Met life?

      1. is it not prudent to divide your policies in more than 2 or 3 companies including LICI? Reason being, with highest settlement ratio when LICI pays the SA, others will be bound to follow . Please don’t mind if I am wrong.

  23. 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 – 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 less…

    So how the sum assured will be taken care ?

      1. Thanks,

        Resident status is not a problem since i am in USA now.I am planning to visit India for vacation in January.So i have a doubt what amount i should fill in the Salary column while filling Online Term Insurance Policy form.So based on my current USA Salary ( 30 lak in INR) they will give even 2 Crore Coverage now.But after 2 years i am planning to come to India permanantly and that time my salary will be around 7 lakh per annum.So i have a question – Whether Insurance companies can reduce the Sum Assured if your status changes from NRI to Resident Indian or if your Salary changes from Higher to lower ? Or is it like,once i have taken the policy with high coverage , that will remain same for the whole policy of 30 years Even though my salary is reduced or even if there is a situation of job loss?

        1. Jegan-Forget about your case, let us say Mr.A who resides in India currently earn around Rs.10 lakh a year. He applied for a term insurance of Rs.1 Cr. Definitely insurance companies will approve his proposal. But the very next month if he loose the job and his earning decreased from Rs.10 lakh a year to NIL or Rs.5 lakh, then for insurance company it does not matters. They check your income only during issuing policy.

          1. Thank You so much,

            When i looked at ICICI Prudential for term insurance yesterday,I see a new plan iprotect Smart. This one has lesser premium compared to iprotect and icare2 with more features. Could you please advise on this ?

            1. Jegan-Nothing SMART. They included accidental rider, critical illness rider and also premium waiver benefit. All these are not at free of cost. But will add to your premium. Buy them separately from general insurer and go with pure term insurance.

  24. Hello Sir,

    My age is 33 years currently. I bought HDFC C2P+ recently, without any rider and just for 32 years term.
    Also I chosen to pay just for 27 years (and not for 32 years) , which would save around 15K premium for me if I pay the same for 30 years.
    Did I make correct choice in terms of company and plan features,please advise.


    1. Mayank-Both company and buying without rider is good. But you have must have term insurance up to your working age. So based on that select a term and buy a term insurance. There is no such limit, but better to intimate as soon as possible.

  25. Dear Sir,

    I am 32 years old working in bank, which is also selling term insurance too along with other partners companies.

    I want to purchase the term plan for 30 or 35 years. My salary is 4.5 Lac /pa

    But, I am confused between LIC and my bank insurance company. LIC have good CSR but high premium ( For 1 crore SA cost 22900)and my bank insurance company is providing the same cover along with accidental death benefit of 1 crore (Means 1crore plus 1 crore in case accidental death). But in LIC no such kind of differentiation.

    I am bit confused, because people are also saying since you are working in the bank which also selling insurance, they will settle claim soon.

    So i need your advice for the same.

    Thanks in advance.


    1. Anand-Buy term insurance and accidental insurance separately. There is no such logic that if you are an employee of particular bank then the claim will be settled easily. For insurance company you are just a customer but not an employee. Go ahead with the company of your choice based on comfort, premium budget and feature.

      1. Thanks for reply sir.
        Only one doubt that, In term plan insurance, company will settle the claim either it happens naturally or by any disease or by any accident?
        And After three years of policy coverage they will not ask for such questions while settling the claim.



        1. Anand-They settle the claim when death occurs. Nature of death may be different. There are some exlclusions to it. Read policy documents or plan features. No, they will not ask the authenticity of your shared information after 3 years.

  26. Hi Basu,

    why u suggest term plan till work life . what happens if a person outlives his work life and then what is the security . The life insurance concept gets defeated . Please answer to make me also understand.



    1. Vikas-Who need life insurance? A person who has income to protect his future income loss. In case of retirement, whether he earns? Check with any life insurer with mentioning that you have ZERO income. None will issue a Rs.1 lakh policy too. The concept of life insurance is compensate the loss due to death of earning member.

  27. Hi Basu Ji,

    I have a Postal Life Insurance Policy for Rs. 2,00,000/- (15000/- Premium per year) sum assured which matures on 2024 and also an EA(New Jeevan Anand) from LIC for SA Rs. 4,00,000/- for 30 years (Premium 15000/- year), which is taken a few days back only. Should I use cooling off option to surrender my LIC New Jeevan Anand policy and taken term insurance Policy from LIC or Cool of my new Jeevan Anand policy and take term insurance from some other companies like HDFC or ICICI?

    I am a central Government employee and my salary is Rs. 6,00,000/- per year and may take Housing loan in future and does not have any supplementary income

    Please suggest.

    1. Santhosh-If you are comfortable with return of around 6% to 7%, then continue both postal and LIC life insurance policies. Otherwise, think seriously to come out of those. At the same time, in my view, all three (LIC, HDFC and ICICI) are best when it comes to term insurance. Hence, opt the one with whom you are comfortable.

      1. Thanks for the expeditious reply.

        But you are asking me to come out of the two. I can use cooling off option for LIC NEW JEEVAN ANAND(date of commencement 19-11-2015) but in case of Postal, I have paid premium for 5 years and is about to mature in another 8 years. I m planning to continue with postal and may or may not continue with Jeevan Anand.

        also which term plan among lic, hdfc and icici offers high risk coverage? Is accident benefit highly recommended in term insurance policies? Please suggest.

        1. Santhosh-All insurers offer unlimited risk coverage. But it depends on your health, income and premium affordability. Hence, first understand your requirement rather than company’s offering. If a person whose earning is around Rs.10 lakh a year proposed for Rs.50 Cr insurance, then no company will accept it. But accident insurance separately from general insurers.

          1. Sorry for repeated queries

            I have three policies as of now:

            1. Postal Life Insurance, Endowment assurance for Rs. 2 lakhs ( from 1.4.2011 and Per annum premium 14500 for 13 year till 2014). I am planning to continue it

            2. PLI money back policy for 20 years period.monthly premium of Rs. 2600/- for Rs. 5 lakhs sum assured. Paid only single month premium of rs.2600/-. Date of commencement of policy 1-11-2015. Im planning to discontinue this policy

            3. LIC New Jeevan Anand policy for Rs. 4 lakhs for 30 years. Yearly premim Rs.14,500/- . Date of Commencement is 20.11.2015 which I m planning to cool off as this is less than 10 days and I think I ll get almost 95% of the first premium, if I use cooling off option

            Are all my three decisions correct? please clarify.

              1. How many policies can be cooled off in LIC?
                I mean I have already cooled off one LIC policy last week. Can I again cool of another policy now. Is there any maximum limit for this?

                  1. Is it so Sir?
                    I have made blunder.
                    Should I continue with the policy then?
                    Is there any chance that they may not issue new policy to me in future?
                    Is it legal?

                    1. Is there any possibility that they may reject my cooling off request because I have already Cooled Off another olicy?

  28. Is it better to buy an insurance policy of 1.5 crore as:

    50 lac from company-A,
    50 lac from company-B and
    50 lac from company-C


    1.5 Crore policy together from shortlisted company ????

    Please suggest.

    1. I learnt that offline Max Life offers a feature which I have not yet seen in the online version. The feature is the reduced sum insured even if you stop paying premium after 15 years.

      I will be double checking. However my question is: shouldn’t same features be available online?

      Thank you.

      1. Tarun-This in my view is a worst product. Because as the time goes, you need more insurance due to inflation, higher financial responsibilities. However, as you claim, this product reduces sum insured means a worst and disaster of whoever buys such products.

  29. hi i want to buy term plan of 1cr. should i go for only one company like hdfc or should i take same plan from 2 different companies in 50-50 ratio
    like 50lkh from hdfc and 50lkh from icici

    which plan is better 1 company or 2 different company.
    and i have one more question im currently 30yrs. should i take 30yr plan or 40yr plan?

      1. thank you very much for your reply. today i came across with product of pnbmet life.
        they are giving riders option like :
        1. cover spouse in same policy.
        2. disability option.
        3. cancer and heart disease coverage of 5lakhs.
        4. life stage cover. i.e increase your cover in different stages of your life.

        What i think is first option is not required. and other 3 are good.
        Is PNBmetlife is good company. should i take it. what you suggest.


        1. Nitin-1) First think the term insurance is really required for your wife or not. In my view, if she is earning then only buy and that too seperate one.
          2) Opt for separate accidental insurance rather than such riders.
          3) If you have family history of such critical illness then buy separate critical illness policy rather than opting for rider.
          4) This sounds good but at what rate?

          1. hello
            for my age 31yr. Total premium is 13221 for 40years policy. and where
            1718 is for disability = 40years and 1048 is for critical illness (only 2 heart and cancer) = 10years
            So what you recommend
            a) pure term plan only. (no rider)
            b) term plan with disability rider
            c) term plan with critical illness rider
            d) term plan with both rider.

            I think option b will be suitable. because i have health plan already in place.
            please suggest your view on this.

  30. I have a basic question.
    Why we have to declare the existing life insurance policies with other companies or same company when we are taking term insurance. I found this question in every other company’s proposal form. What is the compulsion about it and what happens if we don’t declare?

    One of my friend was telling that for example if you have a jeevan anand and then you take the term plan from LIC again, and in case of eventuality, your nominee will be paid the sum assured amount of term plan only and sum assured of jeevan anand will not be paid. Is this true?

    1. Bixapathi-They need the information of existing policies to arrive at your actual human life value. Otherwise someone with yearly salary of Rs.2 lakh may propose for Rs.5 Cr policy. If they know the existing policy and your income stream, then they underwrite based on their calculation to arrive at how much you are eligible for insurance. You friend is completely wrong. Why LIC have to deny the claim on Jeevan Anand? Please ask insurance experts than your friends.

  31. Hello sir
    I have taken term plan SA 30lac in March 15 SBI life now I want to increased my SA can I take another term policy from other company like HDFC /Pnb met life /with SA 50lac or close SBILife policy and take one policy of 80lac from one company my monthly income 75 thousand ……I m eligible for 1cr but I have other LIC policies with death benefit insurance my age 38 yrs…sir while choosing the company can I go with lower premium or settlement ratio…..(policy period & other terms of company almost same of all companies ) pls suggest

    1. Priyanka-First select the company, if you can afford then go for LIC online, otherwise HDFC,ICICI or SBI. Then check the premium payment of Rs.80 lakh, if the combined premium is less than what you pay by retaining Rs.30 lakh with SBI and new Rs.50 lakh then chose Rs.80 lakh one policy and cancel Rs.30 lakh. Otherwise buying Rs.50 lakh and retaining Rs.30 lakh will be viable.

  32. Sir, My brother wants to take a Term Insurance policy. He was a non regular smoker. Last time he tasted smoke almost 7 years ago. What should he write in application as Smoker or Non-Smoker.

  33. Sir I disclosed that am diabetics in the term policy application, so the insurance company increased the premium amount ( I expected it already) but my doubt is that in the counter quote offer they mentioned “EXTRA MORTALITY RATE = 100%” what does it mean and is it merit or demerit for me?

  34. Sir,

    I am planning on LIC e term or HDFC click to protect plus.
    But I am occasional smoker; thus to keep my self safe out of rejection of claim in future, will it be advisible for me to go for aggregate category or can i opt non smoker category ( keeping in mind quitting smoking in future).
    Pls advise.

  35. Hi

    i already had online term plan of bharti axa last year of 75 lacs & i wanted to take one more for my younger brother
    thought we both of us are non smoker non drinker still i had doubt in my mind that if insurance companies are rejected the claim then what should our families will do to get the claim

  36. Hello Basavaraj Sir
    Information provided by you in this website is very helpful

    I wanted to go for LIC e term insurance plan. I have just have a quick question, When we fill last year income in LIC oline form is it income in a calendar year(Jan to Dec) or income in a financial year( April to Mar)

    With Regards
    Akash Tripathi

      1. Thanks for quick reply,
        I started my job in 11 Jan 2015 so my take home salary in 2015 is less than 1 lakh, but my annual salary is 5 lpa when I am applying for LIC e term insurance a message is coming not eligible, does someone who is first year in his job cant apply for term insurance

        Please provide your expert opinion. If yes how?

  37. Dear Sir,

    Myself Akash. I am having term plan from ICICI I protect for 1 Crore taken before 5yrs.

    Now I am 38 years and there is one term plan from Edelweiss Tokio Life (My Life+ plan)??which offers Term plan till the age of 80years.

    Shall I go ahead to buy this plan, I feel that I should go for 80 age as after retirement that premium will be peanut at that time and family will get good amount after me.

    Please advice how is Edelweiss Tokio Life (My Life+ plan)??


    1. Akash-In one way claim that during your retirement this term insurance amount is peanut and another way you claim that your family will get good amount. How conflicting views? In my view, term insurance must be up to your start of retirement age. Not during retirement age.

  38. Hi Basavaraj,

    My husband age is 28 Years old, he is planning to take term Insurance. But the maximum plans has a term of 30 years, hence the policy will get over when he will turn 57 year old. Shall he postponed his plan so that his old age is insured also.

    Also suggest me whether it is wise to invest in PNB met life term plan?

    1. Soniya-The ideal term of life insurance must be up to your start of retirement age. Hence, first understand when your husband want to retire. Based on that match your term insurance term also. Being without term insurance is pure risk than having insurance up to 57 years. Also, insurance buying is not a one time process. You have to review it at least once in a 5 years. Hence, during that time he can increase the term. But first let them buy immediately.

  39. Sir, thanks for helpful info. I am 34yrs old n on medication for psychological disorder, but i never hospitalized. Pls suggest me which is the best term plan ( pure term plan). I am non smoker and non drinker.

  40. Dear Sir,

    Thank you for the article.Sir I am planning to buy lic’s eterm policy worth rs.50lac. I used to drink long back that also occasionally now I completely left it since last four months & will not take in future too. Sir do I have to mention the same as a drinking habit while taking policy?
    Please suggest

  41. Thanks a lot for all the vital information you provided in this blog.
    Since I am planning to buy a pure term plan and as such have done quite a research on net about various companies.
    I understand you don`t want to pin point any one particular company, but one thing really haunts me. If i take the example of Reliance Life. As in my case it offers online term plane for 16,390 but at the same time and under same conditions it offers offline term plan for 69,258. I understand that online plans are cheap but a whopping difference of about 52000 is too much. Can you please explain this if possible.
    Secondly what is the basic difference in online and offline planes both in respect to premiums and claims.
    Thirdly why there is so much variation in premiums of different companies under same conditions as far as term plans are considered although the basic feature of term plan is same in all cases.

    1. Rahul-Why the difference? It is purely insurance company call. No one can question it. The difference is only in terms of premiums but not in CLAIMS. Each insurance company uses their own set of calculations to arrive at premium. Many things depend in such calculation like mortality table they use, actuaries calculation, how aggressive the company in generating the business and profit margin of company.

          1. Sir please can you specify which features are you referring to.
            As for me term plan only means sum assured at death and no maturity benefit, which all companies are providing.

  42. Hi,

    I have heard that company needs original docs for claims settlement purpose.
    Docs like original copy of FIR report in case of accident and death certificate for natural death original copies is needed.

    So if we have more than 1 insurance policies (term plans) and general accidental insurance (like sbi general mandatory while opening sbi account) how will the nominees submit all the original copies to more than 1 companies.

    could you please let me know about this situation. cause i checked some insurance websites product brochure, it is mentioned about original copies.


    about pradhan mantri Jeevan jyoti and Jyoti insurance, i have heard that if you are already covered by other insurace companies then you will not get claims from Jeevan jyoti, is it true?

    Please let me know about this.

  43. Hi Sir ,

    Regarding the term plan ,

    1: Can i nominate my baby who is one year old ?
    2: I have been quitting the smoking for last 2 years, not at all now a days , which categories, i should choose ?


  44. Hello Basu,

    I found your article very helpful.
    Currently i am planning to buy a life insurance of 1cr.
    I think Max life online term plan is best suited for me according to the premium and claim settlement ratio.
    Can you suggest if it is good option to go with max life or should i stick to big names like ICICI or HDFC…?

  45. Dear sir,
    Your blog and your answers are very helpful. I have few questions as below.

    I’m 26 years old. Non smoker/drinker. Annual income= ? 2,80,000/-

    1. Is it risk taking to buy online/offline plan from private sectors than PSUs? I mean what if the private sector declares insolvency which is not in case of PSUs?

    2. You’ve suggested to opt for only vanilla term insurance, for any specific reason? I mean if I survive then all the money I’ve spent will go in vein so better I get some return out of it even though I may have some other investments?

    3. I most probably get much higher income within next couple of years so should I opt for increasing sum assured plan or just stick to fixed sum assured? What r the cons if I opt for former one?

    4. Which combination will be more beneficial & affordable?

    a. Term insurance+riders for accidental causes
    b. Term insurance+stand alone accidental insurance

    5. Will it be a good combination for me as a life insurance and wealth creation as given below?
    Term insurance+Accidental insurance+SIP+PPF

    1. Kunal-1) Read my latest post “What if your Insurance Company goes bankrupt?“.
      2) When you buy riders then there are so many restrictions like sum assured and all. Hence, I suggest to buy accidental or critical insurance separately. How can you benefit from going with riders in term plan? If your question is related to return of premium, then check the difference between plain term plan to return of premium. The cost of return is involved there itself 🙂
      3) You are sure of higher return in next few years. But instead of opting for constant increasing sum assured, it is better to review your insurance once in a year and add the additional cover by buying a separate insurance. But a risk of what I suggested is that, sometimes insurance companies may reject your proposal due to bad health or due to any other reasons. Hence, if you feel that suits you, then go ahead.
      4) B.
      5) Term Insurance+Accidental Insurance are risk mitigating strategies. But SIP (it is misconception that SIP means equity mutual fund. But it is just a way of investment. Even a monthly RD may also be called SIP 🙂 ) and PPF is for investment, which again depends on your financial goals.

  46. Dear Basu sir,

    I accidently came across this page and found it really helpful. I would like to get some advice from you regarding investment for my sister. She lost her husband unexpectedly soon after her child is born. The child is now around 1 year old(girl). She has got 2 lakhs with her. She wants to invest it wisely so that she can use it for her child’s education and probably marriage. Say she can think about investing for 10-15 years. Presently she is not working but hope to work from next year on wards. Would you please suggest some investment options which she can afford.
    Thanks in advance.

      1. Thank you Basu sir for your prompt reply. May I know whether only one balanced MF is sufficient for her?
        Does she also need some insurance other than term insurance?

        Thanks in advance.

  47. Dear sir,
    Your blog and your answers are very helpful. I have few questions as below.

    I’m 26 years old. Non smoker/drinker. Annual income= ? 2,80,000/-

    1. Is it risk taking to buy online/offline plan from private sectors than PSUs? I mean what if that that private sector declares insolvency which is not in case of PSUs?

    2. You’ve suggested to opt for only vanilla term insurance, for any specific reason? I mean if I survive then all the money I’ve spent will go in vein so better I get some return out of it even though I may have some other investments?

    3. I most probably get much higher income within next couple of years so should I opt for increasing sum assured plan or just stick to fixed sum assured? What r the cons if I opt for former one?

    4. Which combination will be more beneficial & affordable?

    a. Term insurance+riders for accidental causes
    b. Term insurance+stand alone accidental insurance

    5. Will it be a good combination for me as a life insurance and wealth creation as given below?
    Term insurance+Accidental insurance+SIP+PPF

  48. Dear Basavaraj,
    am 35 years old , male , non smoker, want to take term insurance plan for 50L for 30 years………….i have shortlisted 3 companies for that.
    3.aegon religare….WITH CRITICAL ILLNESS RIDER
    so plzz suggest as to which company to go for….


      1. Hi ,
        But which company to go for pure term plan from the 3 which i had mentioned.
        Waiting for your reply.

    1. Dear sir. I am 41 years old I want to take term plan for 30 years which company will I go for I could not understand pure term plan means in your earlier reply (which company)

        1. Dear sir, I have choosen with a policy of 50 lakhs for 20 years with Maxlife insurance I payed Rs 8350 medical also completed 3days back today I got a mail by mentioning of you are not eligible for that and eligible for 25 lakhs only Is there any annual icome limit to give assured amount? My annual income is Rs 216000 what can I do now? All companys are following this can I replace other company by cancelling of this Please help me.

          1. Ramakrishna-Reducing the sum assured may be due to your yearly income or health issues. Yes, insurance will be issued based on your yearly income too. I can’t say all companies follow the same rules. But majority follow the standard industry rules.

  49. Sir,

    If i opt insurance of LIC and pay 19700 per year for 30 yrs, will i get really 1 CR after 30 yrs? If person dies before 30 yrs
    how much they will get ?

    1. Abhimanyu-First understand the basic of term insurance. They will not pay anything if you survive up to policy period. If you die during policy period then your nominee receive the sum assured you opted.

  50. Ho do I check After sales service of any company which is the most important criteria as per your article.

  51. Dear Basavaraj,

    I’ve gone through your blogs and found them very helpful.

    I am 28 yrs, Non Smoker with income of 7-8 lacs per annum. I am planning to go for 1 Cr Online term plan and have shortlisted couple of companies HDFC, Max Life and ICICI.

    Please suggest the best one considering long term perspective along with customer service part.

    PS. – I was more inclined towards HDFC/ICICI but recently came to know that Max life offers 7 days claim settlement guarantee. I would really appreciate your advise.

    Thanks in advance.

  52. Dear Basavaraj

    Thank you very much for helping so many people with your genuine suggestions .

    I am 35 years old Non smoker .I have Aviva life insurance since last 4 years . It has premium around 7000 per annum. As My income is around 11 lakh I am eligible for around 2 cr . Now I want to buy another policy of 1 or 1.5 cr . Please suggest me on below queries .

    1)Which should I go with between MAX life and HDFC click to protect

    2)MAX life says all claims should be honored if run continuously till 3 years ,what does it mean .Does HDFC also do same

    3)As I am eligible for more than 2 cr Should I declare my AVIA policy to new and old insurer and later I can decide if I want to close Aviva.


      1. Many Thanks Basavraj

        One last query as I keep on going to out of India for 1-2 years on project assignment .Also I have read somewhere If someone be abroad for more than 6 months he/she comes under NRI category (Not sure Please confirm).
        1)In that case if someone dies out of India and got automatically converted to NRI does company honoured the claim

        2)In case he/she not converted to NRI but dies out of India does company honoured the claim in that case too

        As you suggested not take accidental rider ,Can you please suggest best company to take accidental death claim plan


  53. Dear Sir,

    I’m 29 now, already have LIC new bima gold (Money Back Policy) for 20 Years Term. As I’ve already completed 5 terms, planning to surrender same with loss in hand, after reading various discussions in online forums regarding term insurance and insurance cum investment plan.
    I’m planning to take Online Term insurance plan. Can I add nominee name later as I’m still single?

  54. Hi Basvaraj – I have a question and it may sounds silly but just want to double check with you.

    In one of your reply to a user it was mentioned that “Ideal insurance requirement ceases once you start your retirement. Hence, it is purely left with you to choose 65 or 75 yrs. Yes, till the term of the policy you have to pay the premium.”

    Insurance requirement ceases once you start your retirement – what does it mean?

    Actually I wanted to know, If I opt for a term plan upto age of 75 yrs (now I am 30 yrs old), will my nominee get the benefit if death causes lets say between 71 to 75 yrs?

    Your answers are really useful to make a wise decision


    1. Sandeep-Why you buy insurance? To protect the financial burden on your family. This happens when you are earning. When you don’t have earning at the time of retirement then I don’t think retirement is required. Also, remember that even insurance companies also not issue insurance to those who not have income. Yes, from your example your nominee get the claim amount. But think the point also that the current insurance coverage you are buying may be penny when you die at the age of 71 or 75 Yrs.

  55. Dear Basu,

    I am 35 yrs old , occasional smoker, looking Term plan for 30 yrs and 1 crore sum .

    Kindly suggest me from HFC/Kotak/Maxlife. which company is better to choose from .

    Thanks and regards

  56. I’ve been looking into buying a term insurance plan. Read a lot of analysis on the subject and am considering Birla Sunlife Protector Plus plan. Any feedback on this plan and company?

    I also considered ICICI and HDFC but their premiums are beyond my budget.

    Any help would be appreciated, thanks!

    1. Gaurav-You can opt for increasing sum assured option, but stay away from an accidental rider. Instead buy it from general insurance companies. Also, I am not sure whether this is ONLINE or OFFLINE plan. If it is offline then stay away.

  57. Hi,

    I had bought a Kotak Preferred Term Plan by the Kotak Bank Agent and he sold the policy of 1.5CR for 46293 ( 27400+13800 For Critical Illness). I failed to check online regarding this last year but when I check this time on the net the online plan including the Critical Ilness Rider is for 31,300( 17500+13800). My policy needs to be renewed in October, I have written to the KLI but they have not provided any valid reasons for continuing the policy offline. Please advice.

      1. Thank you so much for answering my query and I must say I find all your articles really informative and learning. You should charge for each of your replies :). Very informative and a great learning site.

  58. Hello Sir

    I have a Term insurance of 70 L from Aviva, after going through the article and some other articles, I have started thinking have i selected the correct company.
    Please suggest, I have also seem quote from Kotak please suggest is kotak better than aviva, and if you may suggest which among the one’s are fine

    1. Amit-Don’t rely too much on the claim settlement ratio data. If you already having a term insurance with Aviva then continue. You have to worry only when you hidden material facts and doubting the claim settlement. Otherwise, I don’t think you have to take a pressure.

  59. Hi Basavaraj

    I want to take term plan of 1 CR and my brother of 50 lakhs. Can you suggest me two things.

    1) Whether HDFC C2P is reliable then LIC (HDFC is better for term plan for 25 years)

    2) If a person taken term plan meets with a accident and become disable/handicap then insurance company pay the fund to that person (certain percentage).


    1. Prashant-1) Both are good and bad. Hence, if you feel HDFC meets your requirement, then go ahead.
      2) In term insurance, they pay only when death arises. But they not pay a single rupee, if the policy holder survives. Hence, no claim if policyholder met with an accident and became handicap. That is the reason, you must also buy an accidental insurance from general insurance companies.

      1. Please note that HDFC Click2protect plus has Accidental Disability Rider which can be added at an extra premium to base term plan premium.

  60. Hi Sir,

    I am 27 years old non smoker and employee and I would like to go for term plan. my annual income 2 lac.
    Can you please suggest me which policy offers best.

      1. I would like to go for term plan 50 lac sum isuured 40 years and i want accidental disability benfit,sir please suggest me a best term insurance.

  61. Hi Basu

    I am 32 year old, wen to buy term insurance. I am confused between two online term insurances, AVIVA I life and HDFC click to protect ….for 30 years & 75 Lakhs.

    AVIVA has tie up with Dabur india can we believe in them for 30 years. Please educate me how to select the term insurances. Is claim settlement ratio is only the criteria we should look in or the company history also. IRDA has not clearly mentioned the LIC’s claim settlement for TERM insurances ( it may be a combination of other insurances also).


  62. Dear Sir,

    This was informative article. Thanks for sharing

    About me : Age 28, annual income : 13 L

    I am planning to take a 80L cover (as my employer already provides close to 25 L). Is this a correct approach?

    As part of risk diversification, I am using 50:50 in 2 policies (LIC and HDFC/ICICI). Is this a good practise.

    I am confused whether HDFC or ICICI? As per your ranking it is ICICI but as per crowd sentiment it seems HDFC. I m fine with both, so confused.

    Please provide your inputs

    1. Tanuj-Never depend on employer coverage. Because what guarantee that the once you change the job then new employer offers this facility? Ideally cover must be at least of around 15-20 times of yearly income. I don’t think any logic behind splitting. However, it is purely your call. To me both ICICI and HDFC good. So go ahead.

      1. The logic of splitting could be this – when you split your term insurance with two companies – in the demise of insurer – for any reasons if one insurer rejects the claim, we may get claim from the next insurer. So, chances of rejection from both insurer is practically less. In this view we may consider about splitting term insurance with two companies.. Is that a valid statement? Please clarify.

        1. Magesh-But now they started the integration of customers data at one point (including KYC). In such situations, how you can escape? I suggest you to declare all facts correctly and that is what you can do from your end from avoiding of rejection.

  63. sir ,i am 37 yrs old non smoker started two bajaj allianz policies one is super cash gain and second one is invest gain platinum in 2011 when i am 33 yrs old paying premium around 88000 rupees per annum Now i would like to surrender them and would like to take term plan is it right decision pls suggest .

      1. Thanks sir regarding your advice
        How much percentage of money would I get back from which I paid in terms of premium

  64. I have been reading your posts for almost two hrs. All are very informative. Thank you.

    I am having i-term policy of 1 crore from Aegon religare since 2012. While talking to an online agent of aegon religare on why its CSR is low, he said its because the company is new & most claims are lesser than 2 years old. Further, he told that according to some section of IRDA, the insurance company can not deny claims on grounds of health non-disclouser if the policy is older than 2 years. Is it true? if yes, which section of IRDA?


    1. Sachin-I agree with first point but not agree with second point. They may find millions reasons (including top CSR companies) to deny claims. Hence, the only solution in your hand is to be perfect in disclosure.

      1. So, this 2-year clause gives us guarantee that claim wont be rejected on atleast HEALTH non-disclosure. isnt it?

        I have disclosed fully regarding my previous health records, diseases, income, previous policies, parents health status, etc to the best of my knowledge. Apart from these, are there any other major causes for claim rejection?

        Even though I made all disclosers while buying policy, I dont know why, there is a little insecurity with not-so-popular aegon religare.

        Thanks for the reply.

        1. Sachin-Their is no guarantee as death may involve complication and this may trigger insurance company to reject. As I said earlier, death may due to many reasons and so is causes for rejection. If you are properly disclosed everything, then I don’t think you have to worry too much. Instead, think that you complete the policy period successfully 🙂

  65. i have already bought term insurance from hdfc of rs 60 lacs and now with present pay scale i want to go for increase in cover upto 2 cr and would it be better to close the existing policy and buy a new one of rs 2 cr since it will save the premium perhaps as the earlier policy is of only 30 years and the new one covers 40 years and i will be covered till the age of 65 years. Please suggest the procedure to be followed

    1. Mani-If you decided to close the existing policy then first buy a new one. Don’t mention the existing policy details in the new buying. Once you get the new policy issued then immediately stop the premium paying to existing policy. It will automatically lapse.

  66. Hi, My wife and I both have term insurance policies which we had taken a few years ago. Now with increase in salary, as per financial wisdom, the cover should increase as well. In such a scenario,

    1) Is topping up the term insurance from my current company permissible & advisable ?
    2) Can a term insurance from another company be purchased or is it not allowed as per norms ?

    1. Aditya-They will not allow the top up like health insurance. However, you have to buy a new plan with them. You can buy the term insurance from other companies. There is no such restriction. But don’t forget to mention the existing insurance details to new company.

      1. Thanks for the response Basavaraj. I am trying to understand this better.

        Scenario: I am 35 yrs old. I have a term insurance from say LIC of 1 Cr purchased 5 years ago for a term of 30 years i.e. till I attain 65 yrs. With increase in salary, I want to raise the cover to 2 Cr.

        For the above scenario, which of the actions below is correct and advisable ?

        Action 1: I purchase a new term insurance of 1 Cr for another 30 yrs from either existing or any other company and mention existing term details to new company.

        Action 2: Step 1: I purchase a new term insurance of 2 Cr for another 30 yrs from either existing or any other company. While purchasing, I do not mention details of existing policy to the new company. Step 2: Upon receipt of new policy, I immediately stop paying premium for the older policy whereupon the old policy will automatically lapse

        If both actions are correct and I have liberty to choose, which is advisable considering the following:
        1) If I perform action 1, I will be paying a slightly lesser combined premium as against a new policy of 2 Cr but will be covered for 1 Cr + 1 Cr till the age of 65 and then 1 Cr till the age of 70 as first policy would have lapsed.

        2) If I perform action 2, I will probably be paying a higher premium since I am now 35 and purchasing a 2 Cr policy but will continue to get a full cover of 2 Cr till the age of 70

        Also, in the unfortunate event of a death during the period I have purchased a new policy and the old policy lapses, will claim be admissible under only one of the policies or under both policies or will it be rejected altogether as I am holding 2 policies and have not disclosed details of the policies to either companies ?

        Let the summarize the queries based on the above:
        1) Based on the scenario above, which action is correct and advisable ?
        2) If both actions are correct, which of the two sub-actions are advisable ?
        3) What happens if one dies between the 2 policies as mentioned in last para above ?
        4) When we disclose details of old policy while applying for the new policy – what are the chances of policy being rejected in case new policy is from the same company as previous policy and otherwise ?
        5) When we disclose details of old policy while applying for the new policy, is it mandatory as per norms to even inform the old company as well that we are purchasing a new policy ?

        1. Aditya-First make sure up to what age you need term insurance. Ideal insurance coverage must be up to start of your retirement age. In my view Action 1 is best as it gives you cheaper option and ideal coverage up to 65 yrs of age and another up to 70 yrs. In case of death after buying a new policy then your existing policy already lapsed. So you can’t claim from old insurer. However, you have right to claim with second insurer. Also, as you not disclosed the existing policy with new insurer thinking of closing it (making it lapse), then I don’t think new insurer have any issue in settling a claim.

          1) Action 1. 2) NA 3) Already replied above. 4) Rejection may happen due to proposing for higher insurance than your income or based on your health complication. 5) Not required.

  67. hi,

    I am 31 years old and planning for a term plan. I am elligible for 1 cr bracket as per income. But i am confused which one to pick HDFC/LIC/ICICI. My preference is as the order mentioned. I need your advice regarding the choosing of insurer.

  68. I want to buy an online term policy. I smoke very ocasionaly, may be once a month. Do i need to declare myself as smoker ?

  69. Dear Basavaraj,
    I am interested in HDFC Life Click 2 Protect Plus simple policy without any rider. I compared HDFC, ICICI and LIC. I find following.
    Smoking 30 years
    HDFC Life Click 2 Protect Plus
    49 lakhs premium yearly Rs. 8542.00
    1crore premium yearly Rs. 15,957.00

    LIC’s e-Term
    49 lakhs premium yearly Rs. 12736.00
    1crore premium yearly Rs. 25992.00

    ICICI PRU iProtectLife Insurance
    49 lakhs premium yearly Rs. 9,310.00
    1crore premium yearly Rs. 17,500.00


    HDFC Life Click 2 Protect Plus
    49 lakhs premium yearly rs 8,542.00
    1crore premium yearly Rs. 10,447.00

    LIC’s e-Term
    49 lakhs premium yearly Rs. 12736.00
    1crore premium yearly Rs. 19266.00

    ICICI PRU iProtectLife Insurance
    49 lakhs premium yearly Rs. 7,007.00
    1crore premium yearly Rs. 12,300.00

    Here I see HDFC is best in terms of premium. Whereas LIC is most trusty organization according to claim settlement. I was smoker 5 years ago. Recently in any occasion I smoke along with friends. But this is not regular. Am I under smoker/non-smoker category according to Insurance company? Can I proceed with non-smoker category?

    1. Dr.Anjan-Any specific reason for choosing Rs.49 lakh sum assured? Claim settlement of LIC includes all type of plans which it offers. Hence, don’t beleive too much on claim settlement only. Better you mention as smoker.

  70. Thanking you for your fantastic suggestions. I am 32 years old. During School and College life I smoked about 10 years. Now I quieted smoking 4 years ago. I am planning to purchase HDFC Life Click 2 Protect Plus 1 crore online policy. Am I under smoker category or non smoker? Day to day life I am a passive smoker. If I mention me as non smoker, because I quieted smoking 4 years ago. In future, if i am susceptible to any fatal respiratory disease. Besides, I am getting passive smoking through my friends. Please suggest me.

      1. Thanking You. But I smoked 10 years ago. Recently I am confident that I am a non smoker. I see LIC performed Urinary cotinine test. A lower level may be found in a non-tobacco user who has been exposed to environmental smoke. Very low to non-detectible concentrations are found in non-tobacco users who have not been exposed to environmental smoke or in tobacco users who have refrained from tobacco and nicotine for several weeks. What are other tests performed by other company like HDFC, ICICI etc.? If I die due to respiratory disease. Then will they give claim to my family?

  71. Hi,

    Currently I am holding 1- LIC 40 lakh offline policy and another 40 lakh online ICICIC protect policy.

    Now I am planning to switch to online policy either LIC/ other companies, however my income has reduced compare to earlier, It seems like I might not be eligible for more insurance.

    My question is can i go for another online term insurance of 40 lakh by not disclosing offline LIC term plan, as I am going to discontinue the offline LIC term plan post receiving online term policy, if i disclose offline LIC, I might not get another online term policy. Please suggest..

    My current annual is is 3.81 lakh with age of 37, how much insurance I am eligible ?

    Ideally i look for 80 to 1 cr term insurance as it is a long term.

    Please suggest.


      1. Thanks Basavaraj! Currently who is giving maximum times of insurance in private sector..ICICI/ HDFC/SBI/ as LIC is considering only 15 times of your annual income, irrespective of loans or assets you have..

        My question is the sum assured would be decided always based on annual income when you apply or do they also consider the future income based on age and also consider other assets or liabilities etc..

        Please elaborate on what basis sum assured is decided by the insurance company.


        1. Shravan-It is purely depend on individual company to issue the sum assured based on their own yardstick. There is no standard rule. It depends on case to case. Your insurance requirement depends on income, age, health and other issues.

  72. Thanks for your effort for detailed compilation. I have couple of questions. Hope it will benefit others too.

    1. Suppose if I take insurance with insurance Company A, what will happen to my policy if they wind up business or declared bankrupt?

    2. What sort of protection available for customers in the event if Insurance company is unable to pay the compensation due to financial issues in the company?

    Thank you

    1. Ram-There is something called solvency ratio, which they have to keep it aside before buying your risk. Also, there are strict regulations on this business. Hence, they can’t wind up their business so easily.

  73. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) who will i deactivet my account in thies scheam Because I am allreadu activet another same schem in my another saving account so i would like to only one saving account thies schem is activeted

    so kindly help you

  74. Hi Basu,

    Would you recommend any critical illness plans as well? I think its as much necessary as term insurance, though I couldn’t find any suitable riders for illness.

    Also I have another question upon splitting cover with two companies-
    – Have heard that companies have some cap (say 1 Cr) and payouts above that might be subject to higher scrutiny. Hence splitting could make sense in such case
    – Also how does calim process work in case of multiple claims as originals can be only with one company?

    1. Ankit-You have to buy it. However, how much is totally dependent on you. Also depending on this product of critical illness is not wise. Because it is bit complicated product for a general public. Hence, along with this insurance, you have to create a fund for such type of illness. I never heard any such rule that if sum assured is more than Rs.1 Cr then they scrutiny it more. What originals you are saying? Is it death certificate? You get it as many as you want from the authorities.

  75. Hi Basu,

    Thanks for the article! I was looking to buy a term plan & I’m thinking of ICICI, HDFC & MaxLife pure term insurance plan without any rider, which one would be best for me considering following factors: DOB 11/01/1988, Non-smoker, No health issue, unmarried, Salaried (PO) & annual income of 3.2 to 3.5 Lacs. Also I have a doubt regarding tax benefit if I pay monthly installment or pay at once, as single premium mode is cheaper, what should I opt for?


    1. Shashank-To me all are best. However, check your affordability and comfort with a company. There is no change in tax benefit if you pay monthly or yearly once. Hence, chose an option which suites you.

  76. Hi Basu,

    Can you tell us the difference between SBI e-Shield vs Smart Shield? Which is better? Is there any advantage in choosing SBI over HDFC or ICICI since SBI is a nationalised bank? I mean just because SBI Life is supported by SBI bank does it offer any adavantage?


    1. Chaitanya-SBI e-Shield is a pure term plan. Whereas in case of SBI Life Smart shield, you have options to increase or decrease your sum assured. Ideally when one buy term plan then it is not an end. Based on income stream, dependents and inflation, you have to increase your cover. This feature is automated in case of SBI Life Smart Shield.

  77. Hi,

    I have heard that company needs original docs for claims settlement purpose.
    Docs like original copy of FIR report in case of accident and death certificate for natural death original copies is needed.

    So if we have more than 1 insurance policies (term plans) and general accidental insurance (like sbi general mandatory while opening sbi account) how will the nominees submit all the original copies to more than 1 companies.

    could you please let me know about this situation. cause i checked some insurance websites product brochure, it is mentioned about original copies.


    about pradhan mantri Jeevan jyoti and Jyoti insurance, i have heard that if you are already covered by other insurace companies then you will not get claims from Jeevan jyoti, is it true?

    Please let me know about this.


  78. Hi!!

    I am 33 years of age and diabetic with BMI of 28

    I want to opt for term plan. Can Insurance company reject my application based on by medical history

    Which will be the best term plan for me.

    Pls guide

  79. Dear sir,

    I have below questions.
    1. Can a smoker enroll for term policy? Any different premium rate?
    2. What will happen if someone starts smoking after taking the policy and he/she dies?
    3. What are medical test one has to go thru for taking any policy?
    4. Premium (approx) for 25L & 50L SA in LIC India, dob-aug 79.
    5. Normally on which ground family may not get insured amt after death of insurer.


    1. Joydeep-1) Yes he can enroll and premium differs to regular. 2) That not matters to Life Insurance as they only look at while you buying. 3) It depends on your age, sum assured, tenure and the insurance company. 4) You calculate yourself by visiting individual insurance company portal. 5) There are million reasons to reject. Hence, better you do your work properly by disclosing all facts.

  80. Hi,

    very much informative, thanks.
    I came across advise that buy Term insurance from 2 companies..safer side saying if 1 company rejects. Is it something if both companies apporved it and get claim from both companies? what you think?

    To me Max LIfe looks good. Any suggestions pls.


    1. Sachin-It is just a mental peace for them. What in future the data will be centralized and each company knows the claim settled by other company? Otherwise, what if one company reject a claim and inform the same to another company? If both companies accept the claim then there will be no issue.

  81. Hi Basu,

    Greetings. Firstly, I’ve been looking to buy an online term insurance policy with 1.5 cr coverage. for term insurance I have sorted out HDFC Click2Protect.
    Is it better or anyone other .please suggest ?

    I have question
    1- upto what age I should opt for term insurance either 65 or 75. if I have opt for 75 then I have to pay premium till 75 age.Is it ?

    2- I have LIC(Jeevan saral T no 165 ) started from mAy2011, 120000 per year. shall i carry on or surrender this or i will not pay rest of the premium how much I will get after the maturity ? What I should do ..need your help

    thanks in advance.
    really your answers are great…..

    Atmprakash sharma

    1. Dear Atmprakash Sharma ,
      I would advise you to be a little careful while applying for HDFC Click2Protect. I had applied for HDFC Click2Protect but did not receive my policy documents even after 2 months of medical tests. Whenever I checked up with customer care,they apologize and say that it will done in 48 hours. Later when I raised the issue with IRDA, they simply rejected my application saying that they have not received one medical report. I don’t understand how is this a fault of mine. I did not had time to pursue this matter further so let the matter go. So I just like to caution you.


      1. Susanta-What valid reason they showed you to reject? I feel all are silly reasons. Strange to hear you that earlier you had time to complain with IRDA. But when they rejected the policy then you have NO TIME??

          1. Dear Ashish,

            You may consider our online term plan iProtect.

            We are committed to honour all claims quickly and fairly. As per IRDA’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%

            If you need more details on iProtect, 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

  82. Hi
    I want to take a 1Cr term plan.My age is 41 and intend to take cover till the age of 65.I have narrowed my search on HDFC , MAX and AEGON RELIGARE,but not yet able to finalize which company to go with.I am slightly inclined towards Aegon due to its good ONLINE reviews on but on the second thought think of HDFC as in the long run it might be a better choice ,but it has 15% higher premium than the other two. I am confused on the point that how many companies will be in the business in the long run .What if any one company exits from the business,what happens to the policyholder.I have read that Religare is giving up its stake and exiting the business. If I go with Aegon Religare will my nominee get due services 25-30 years down the line.
    DO THESE COMPANIES HELP US IN THEIR LOCAL OFFICES IN FILLING CLAIM DOCUMENTS IN CASE OF ONLINE TERM PLANS, because after I had taken an offline term plan with ICICI 8yrs back , the agent has vanished after the first premium was paid and the policy issued
    Please suggest to go with which company taking into consideration service standards and the point that the nominee may get easy processing of claim if required.

    1. Apurva-To me all insurance companies are equal. They can’t simply run away from their business. There is something called solvency ratio which they have to keep it aside to the proportion of risk they buy. Hence, don’t worry about such things. Your concern is ONLINE when you already experienced about OFFLINE. The only solution for this is, to educate your dependents. For example, what to do in case of your death and where to approach. Educating yourself and your dependents is MUST in case of TERM INSURANCE.

      1. If all insurance companies are equal then why is CSR stressed upon.Where do I solvency ratios?
        Do we get any assistance from local offices in case of claim filling of online plans?

        1. Apurva-Do you feel the current data about CSR will give you a real picture? I strongly believe that it is pure misconception to believe on CSR and buy term insurance. Check LIC’s data carefully about CSR, go in-depth and you find that many policies settled are not term insurance but endowment products.

    2. I suggest you not to go with HDFC. They do not issue policy documents and if you take the help of IRDA, they will reject your application citing some silly reason.

  83. Hi Manish, Dhawal and all other experts,

    I am an NRI male 34 years, non-smoker and non drinker. BMI less than 25. Only problem is my HDL cholesterol never crosses 28 (overall chol is less than 170, LDL < 110 and i have no triglycerides issues either). No sugar problem too.

    I have no debts and some reasonable savings in MFs, Equity, PPF and NRE FD deposits besides bullion.

    Three Questions, (insurance limit of 3 crores arrived at after taking future inflation and needs into account)

    1. I have appeared for medicals for 2 crore Amulya Jeevan II. TMT, echo etc are ok. The premium is nearly 64000 pa (no loading as of now). While the application is nearly made, (still can stop it),
    I wonder why LIC is 2.8x costlier than an ICICI iprotect at 22,875 for a similar policy. I understand the use of older mortality tables by LIC and also understand there is no big difference in payment claims b/w players.

    Need advice if it is worth the pain to go to specifically Kotak, Aviva or HDFC or ICICI for alternative as it seems savings in excess of 30000 an year can be invested in an equity MF for much better returns (roughly 5-6% real returns post inflation adjusted)

    2. I am also in the process of taking an permanent disability/accident death rider from future generali for 1 crore and premiums are around 16000 pa. Rates seems similar across other firms and my agent was quite honest. Do I need to do additional homework here?

    3. I have a bunch of Jeevan Rekha and 3 other money back/endowment policies that my agent in Mumbai deceived me into buying when i was 24. I have paid premiums for 10 years now but think it goes against my idea of mixing investments and insurance… Am i better off surrendering them as I have to pay premia till 2034 and they are not cheap (22,000 premium for 8 lac cover in total plus some money back and bonus later)

    Should I surrender these policies and invest that 22,000 instead in an equity MF or in equities. Would appreciate some advice.

    Many Thanks

    1. Kartik-1) The problem is the expenses in Amulya Jeevan II. Because it is an offline term plan and hence costlier than LIC’s own online term plan also. Why you opting for offline term plan and why not online?
      2) If you are comfortable with premium, feature and company then you can go ahead.
      3) Better you surrender or paid-up them by knowing the values of both at your nearest or servicing LIC Branch.

  84. Hi, I would like to buy a term insurance of sum assured 50, 00, 000. Age 38, Non-Smoker. Policy Term-30 years. Which insurance company providing the best premium amount among ICICI, HDFC, SBI, MaxLife?

  85. Hi,

    I’m unable to decide on important and major factor of TERM ins Policy. I don’t have enough knowledge on this nor i have any life insurance policy till date and would like to go for an TERM policy ASAP.

    The most important point or the key factors or evaluation system that insurance companies opt or do when it come for the settlement in case of a sudden demise of a Term Insurance policy holder.
    Let me be clear as asked in any of the TERM insurance policy issuing company for a person of age 39 yrs / Gender – Male / Smoker – Yes .
    NO Pre existing diseases nor allergies. I understand the riders part.

    If a person death is caused due to ill health (Like Heart attack / kidney failure or / accidental death ) does they pay complete insured amount for the premium paid . please suggest.

      1. Thank You Sir…

        So can i go ahead with the TERM INSURANCE POLICY . As confirmed and also please suggest me the best suitable low budget Term Policy for 50L and also the company name if possible. Since last 15 years i was planning for a Insurance policy but couldn’t make take it due to unexpected expenses and also my commitments are higher than my earnings.

        I’m mentally prepared to go ahead with Term insurance policy up to max age cover. Kindly advice on the same ASAP.

        Also suggest me the best Rider option too.

        Thank you in advance.


          1. Sir,

            Its just that i was not in a position to do any sort of savings nor planned for any insurance policy. Its not specifically about the term insurance or a normal insurance under any category.

            To be precised if my earning is Rs.100 than my commitments are ranging from Rs.130-150 month on month. I never got a chance to plan for any thing and it went on for years. Now based on the feedback and few suggestions from my friends and a guidance from you i would work out towards my earnings fulfilling this specific requirement what i mentioned above. Thank you very much sir. So i can go ahead with any of the above said insurance companies and as per my convenience. One point which was not clarified is the Best Suitable Add-on (RIDERS) would you suggest keeping the above facts under consideration. Plz do suggest and clarify the last one.

  86. Hi Basu

    Thanks for such in informative blog. I have a query. I am an officer in the Armed Forces, and I have a Group Insurance . The insurance is from our own Group Insurance Society. I want to buy a term insurance for self for Rs 2 Cr. While applying, do I need to declare the employer GIS provided Group Insurance policy too, or only the Individual insurance policies held in my name. Also, I looked on the e-applications of a few of these companies (ICICI Pru and HDFC particularly). They did not have any column for mentioning any insurance company other than the prominent ones in the market as of now in their drop down menu.

    Kindly advice !

    Thanks and Regards

  87. Hello Mr. Basaravaraj,

    First of all, Thank you for providing us with your expert advise and help. I have a query. I am currently insured by certain Insurance company for 75 Lakhs and the Insurer has a 80-90% settlement percent, I would like to change over to a better and safer option with lower premium and a better settlement ratio, and also increase my insurance substantially. Can you suggest the better way to proceed, without impacting the current coverage. Should I overlap both the policies for some time before eventually stopping the current policy.


    1. Krishna-Why not continue with same insurer? Also it is not gaurantee that 99% claim settlement company not rejects your claim. Hence, don’t worry and buy with current insurer for your additional need. Disclose all facts properly. Advantage of going with existing insurer is that they know your health condition well.

  88. Hello Sir

    I am 31year & planning to buy a term insurance. I have certain queries regarding insurance sector

    1. Is 49% FDI in insurance sector has been implemented or not

    2. Implementation of FDI will bring the premium of term insurance down. Premium of top rated companies (Likes of LIC) will be affected with implementation of FDI

      1. Sir
        Thanks for reply. Plz advice me in below stated case.

        I have a LIC plan of Jeevan Mitra(Double Cover Endowment Plant)(T. No. 88) commenced on dated 28/12/2008 at the age 0f 25years with policy term & premium payment term of 21 years. The premium is Rs.9636/- yearly.
        Till date on LIC site, the bonus is showing Rs.57600/-. I want to review this policy. plz advice me and if i surrender this policy what will be the plenty for that.
        After that i will go for term insurance and for PLI. As i have taken a 5 Lac. PLI recently in Jan.-2015 up to the age of 58yr.

              1. Sir
                I Want ur opinion regarding LIC plan of Jeevan Mitra(Double Cover Endowment Plant)(T. No. 88) commenced on dated 28/12/2008 at the age 0f 25years with policy term & premium payment term of 21 years. The premium is Rs.9636/- yearly.
                Till date on LIC site, the bonus is showing Rs.57600/-

  89. Hi sir , i am searching a term plan for my wife she is housewife & Bharti Axa Vs Aegon religare company have such policy that if I will buy a policy of 50 lac they will give my spouse 25 lac insurance.sir please suggest me which one is best or what can I do?

  90. Dear Sir,

    I am in 38 years. (8th Apr 1977). I am in confuse to select a company for term plan. monthly income 31000. Pl suggest the SA amount and name the company. Is it worth to take term policy in Reliance?

    1. Nagarajan-Ideal sum insurance must be around 15-20 times of your yearly income. Which company to buy? To me all are good, but select the company which offers you the required term, premium affordability and your comfort with company.

  91. Hi Basu, A question regarding the settlement ratio: Now a days almost all companies have made Medical test mandatory. Then why do they have 93-94% of settlement ratio (HDFC, MAX, SBI, ICICI etc)? Does this also include the policies without medicals? can we get their settlement rate for polocies where medical test is mandatory? Thanks!

    1. Tarun-For your information, this ratio is not only about term insurance. But it includes policies like endowment and ULIPs. Also we can’t say that, if you medical done then companies can’t reject the claim. There are many other reasons to reject claim which you and me are of not know now.

  92. Basu,

    I am planning to buy term plan from two different companies 50 lakh from LIC and 50 lakh from other company with some good riders like religare.
    In case of claim will I get claim from both of the insurance companies?
    Pl advise what will be better for me I am 29 yr old.

    1. Mahavir-My suggestion is to buy with only one company and go without riders. Instead by accidental and critical insurance from general insruance companies separately. In case of split and claim, it is invidiual company decision to either reject or accept the claim. There is no such ruling that if one company accepts the claim then then another too.

  93. Hi,

    Recently one of my relative (who is LIC agent) came to me and told me about LIC term plan with maturity amount.

    Current Age: 27
    Term : 35 years
    Premium : 16,395=00
    Natural Death: 51,36,240=00
    Total amount invested : 5,71,819=00
    Receive on Maturity : 5,88,900=00

    He was telling that it was combination of LIC New Endowment plan + Jeevan Amulya – II.

    1) Is any plan like this available in LIC?
    2) Should i go for it ?

    1. Bipin-Both the plans exists. But how he arrived at maturity amount? Also I don’t think with Rs.16,395 you get a term insurance for sum assured of Rs.51,36,240=00. Something he is hiding.

  94. How do we decide the term (no. of years) of the term insurance ?
    Should we restrict it to the retirement age ?

  95. Hi Basu,
    I am decided to buy HDFC Term insurance after reading all details here.
    I have one silly question. suppose if death happens to the person.
    How nominee has to reach the insurance company ? because we purchase the plan through online. we will have all digital copies without any direct contact.
    Nominee can reach for claims only via online ?
    or any other safe/direct options to reach insurance company for claims without online?

    (like.. walk in to HDFC bank for direct assistance)

    1. Jebastin-Documents will be in hardcopy format. They send the policy document to you. Buying procedure only online. But claim settlement involves physical process. So your nominee has to visit insurance company with policy documents, death certificate and other necessary documents.

  96. hi,

    i was looking to buy term plan for myself 1 crore. shall i wait till this new bill changes to be in effect, or shall buy now.
    also am very confused as lots are available, have shortlisted icici, hdfc, kotak , max. want to opt two 50 lakhs each.
    which shud i go for. please suggest.

  97. Hi Basu,

    Need your expert advise, am working IT Professional, age 35, married, recently have purchased flat cost of 41 Lac Home Loan through SBI of 30 Lac.

    Wanted to secure myself as well family dependent Wife & Mother, Planning to buy Term insurance plan.

    # Presently am investing in PPF, LIC as well have taken General Medical insurance from Bajaj A.
    # Coming to Home-loan and Property insurance, am expecting my possession in next 3 months, Bank people are insisting me to go for Property insurance, somehow am not comfortable as whatever premium am going to pay will go to Bank and other diss-advantage mentioned which have read online.
    # My Full EMI already started from this month i,e Aprtil 2015.
    # My concern in case something goes wrong to me, my dependent should have any financial burden, please advise what am support to do to safeguard.

    Thanks in advance,
    Kunal V

  98. Hello Basu –

    Simple query asking more from a peace of mind perspective.

    Is LIC better than HDFC (wrt simple online term) particularly from claims perspective (if required).
    I personally lean towards HDFC because of premium cost is significantly lower

    What would you pick and why?


  99. Hi Basu,

    Can you please advise if I should take into account the term insurance provided by my employer when calcualting cover for upto 15-20 times of my annual income.

    My employer provides 4.5 times the annual pay package as term insurance cover. Should I take this into account and buy a lesser term cover? The concern is that employer maychange with time and buying fresh insurance at a later stage (if required) could prove costly. Pls suggest.

  100. Hello Basu,
    Thank you very much for all the valuable information you have provided. Now I have a doubt. My age is 27, salaried person. If I take a term policy with s.a. 1 Crore for 38 years(65 years of my age), around 8000 premium annually, then how much amount will I get back after the completion of the policy, i.e. after 38 years?

  101. Dear Basu,

    Thanks for such a informative blog !

    My question: Is amount we get after Term insurance end (i.e. survival benefit) is taxable ?


  102. Hi Basu

    After reading your articles, I get to know how ignorant I am about these critical things in my life. Thanks for these updates.

    I am 33 and my wife is 36. We both are salaried. I have few life insurance policies which my parents bought for me. My wife does not have any. I am planning to buy term insurance for both of us this month. I want to understand the term ‘dependents’ in this regard. Since we both are earning, is it our kid who is treated as a dependent here?

  103. Hi,
    First I like to thank for the responses against the various questions posted by various people which provide lot of knowledge.
    Now, I like to request for your advice on my requirement. I’m 41 male – service holder. I’m looking for a Critical Illness Policy and I’m getting confused seeing various plans. Definitely I like to go for a reliable company when I look for some protection/term plan so that there would not be any hassle for claim. I even want to for medical check-up if it required. I was looking into HDFC Ergo Critical Illness Platinum Plan, SBI Life Smart SHIELD – but have not arrived to any conclusion. I’m not sure whether I can rely on other private players like Religare, Tata AIG etc. Couple of points what I like to consider:
    – Naturally I would prefer to cover maximum number of illnesses
    – I would like it to be renewable to the maximum extent possible
    – I’m going for a separate Accidental cover – so Accidental disability need NOT to be a part in this plan
    – Hassle-free claim is the most important factor for consideration

    Thanks in advance.

  104. Dear Sir,

    I have total 3 LIC 20 years Money back policies of 2L (bought in 2010), 1L(bought in 2011) and 1L(bought in 2012). For which I am paying total premium approx 25000 per year.
    My age is 28 now and I am thinking of buying a Term Plan of 1Cr.
    Please suggest shall I surrender all three policies or not.
    I have decided to buy 1Cr term plan.

  105. Dear Sir,

    I want to buy a term life insurance for my self, but have following doubts

    1. Does present law allow us to purchase two term life insurance policy,from same or different companies, If yes then do we require to disclose the same to both insurance companies.

    2. Do write a page on Health Insurance.


    1. KK- 1) Yes, the current law allow you to take such multiple insurances. There is no such restriction. But from your second insurance buying, you need to mention all the earlier existing policies. Otherwise, it is considered as hiding facts.
      2) What information do you require about health insurance?

      1. Dear Basavaraj,

        I wanted to thank you for the information that you have been providing. I think it is befitting a large section of society. I do have a question for you.

        I am planning to take the Tata AIA IRaksha supreme policy for 40 years for 1 crore. I wanted to see if this is a decent company to go ahead with.

        Also, I could not find any info on the fact that of they honur claims due to terrorist attacks. While i saw the process online, I am also not sure if I need to go through any medical tests.

        I am waiting for the financial year to change so that I can buy the policy in April start and use it for tax purposes for next year. Is it correct to assume?

        Your help is highly appreciated


        1. Ash-You can go ahead with company features and premium are within your budget. Regarding buying it from next year, it again depends on how you planned for tax. Also this FY almost over. So go ahead and by tomorrow.

          1. Thanks a lot. Can you please also help me in terrorism clause. Let’s say in future one dies in natural death.. Or is killed by someone.. Does the family get cover. I was not able to find that in any info on the internet

            1. Ash-Please clarify your doubts on terrorism clause with your insurance company. Because each individual insurance company have their own rules when it comes to terrorism clause. Natural death or killed by someone will also be covered.

      2. Dear Basavaraj Ji,

        Thanks you for the information provided thru this very good portal, I would like to know following about health insurance,
        1. What is basic & major difference between Medi Claim and Health Policy and their limitations if any.

        2. How we derive that which policy is better than other.

        3. Presently, i am working with a PSU and they reimburse me my claims as per my scale/grade which is very less, do present law allow us to have more than one health insurance/ medi claim like you said allowed to have more than one life insurance and If yes, then how reimbursement/claim will work.

        4. My parents are not dependent on me and they are in their Sixties and do not have any medical insurance/medi-claim, can you share name of some good policies.

        Thanks and Regards

        1. KK-1) Both are same. 2) It depends on many things. Like, your affordibility, features you are looking for, comfort with company and their post sale service when you or family members admitted in hospital. 3) You can have one more health insurance. Usually in health insurance if you stay in citites or admitted to network hospitals then it is cashless. Otherwise you have pay the bill and then later they pay you based on the settlement. 4) All insurers offer senior citizen health insurance schemes. You can check one by one. Naming few can’t be possible without understanding what you require.

  106. Hi Basu,

    Greetings. Firstly, I’ve been looking to buy an online term insurance policy along with disability rider. While I see that there are very good policies around, I’m not sure of which policy to buy with disability rider. Please advise.

    Secondly, how is critical illness rider different from disability rider?

    Thanks in advance.

  107. Hi Basavaraj,

    Thanks for your blog post. I am looking to move from my offline term to an online term plan. I have decided on the insurance amount and the term. I need some pointers on the company. I am considering HDFC and Kotak. HDFC premium is 50% higher than Kotak. Would you know of any reason for this?

    I am 40, male, non-smoker.
    Thanks & Regards.

  108. I would like to go for max life term plan for 75 lakhs+ increasing monthly income.
    why max life is lowest of all term plans?
    Is it a good choice?

  109. Hello Basu,

    Need some help on deciding about an insurance policy I took before 4 years.

    Policy: ICICI whole life insurance
    Term: 16 years
    Sum Assured: 225000
    Premium amount: 20000 per year
    Already 4 years over.

    On Maturity in 2027, if I will alive at that time I will get approx. 2.25 times the total premium amount I paid during 16 years. which is approx. Rs. 7,00,000 as per agent. (approx. 9.7% interest per year).

    But since last few months, I am thinking that I have taken a wrong decision by taking that this policy (by some false marketing for getting section 80c tax saving benefits). Instead would be good if I would have invested money elsewhere to get better returns. Also I am going to take term insurance of at least for Rs. 75 lacs at this life stage. And after few years can take another one.

    Now I have 3 options for that existing policy from which I need to choose one. So please advise on this.

    1. Keep paying premiums till maturity. So will be paying Rs. 20,000 for 12 more years. Total Rs. 2,40,000 for 12 years. Then I will get approx. Rs. 700000 in hand (16*20000*2.25)

    2. Surrender the policy. As I visited the insurance company office, they said at this stage I will get approx Rs. 28500 only as surrender value in my hand and thats it. Policy is over. No future benefits. No future premiums. Then I can keep on investing more amount to my other existing investments having better returns.

    3. Stop paying further premiums now. So that will make the policy as paid-up. Policy will continue but having very less sum assured.
    In this case paid-up value for me will be Rs. 91350. And that amount I will get on maturity after 12 more years in 2027. No future premiums need to pay.

    So please suggest what should be correct thing I need to do now ?

    Apart from that, for term insurance I have sorted out HDFC Click2Protect and ICICI iProtect. So going to choose one for 75 lacs S.A.

    1. Jignesh-Opt the third one. Because, even if you surrender and got Rs.28,500 and invested same in any instrument which give around 9% return then after 12 yrs you get Rs.80,160. Whereas on maturity under third option, you receive Rs.91,350. So that seems to be best. But at the same time buy term plan immediately.

      1. Hello

        One simple question, if I take any term insurance with 30 years term for some X amount of S.A. and my annual premium is let say for example Rs. 10000 including service tax. Now if government increase service tax in future, will there be any increase on my annual premium as well ? or it will be same for whole 30 year term ? Wondering because from April 2015 service tax will be 14% from existing 12.36% and may be from April 2016 it will be approx. 16% (in case GST will be introduced.)

  110. Hello sir,

    I am 26 year old single and i have a insurance for 5L “LIC’s MONEY BACK PLAN – 20 YEARS” policy with an annual premium of 31k, now i am realizing that this is not enough in my absence, so what would be the best thing to do?

    1. surrender the current policy,and buy a new term insurance plan.

    2. keep the current plan and buy a new term plan.

    please suggest.

  111. Hello Mr Tonnagtti,

    I am 32 years of age and I am planning to buy 2 term insurance policies to have 2 nominees(one from LIC and other SBI Life smart shield ). Is that a reasonable approach?

    Secondly, choice of SBI-Life smart shield was because it gives me critical illness cover of 30Lk for 4 years along with accidental death and total and permanent disability benefit all in one policy. Eventhough it is expensive than online plans. Is it good approach?

    Why do you think combining term plan with critical illness, accidental and disability riders is not a good idea?

    S S Shetty

    1. Shetty-Why two nominees? I don’t go with riders. Instead by them separately through general insurance companies. It is not good idea because there are some restrictions in such riders like sum assured availability and other features which you easily avail by separating them.

  112. Sir,
    My wife wants to become agent advisor for the insurance company… which company should we select???What is your opinion about Aviva & Max life??
    Plz suggest..

    1. Mahadev-It depends on how you are comfort for buying the product for yourself with that company. If you feel the said companies are best and reliable for your buying then go ahead with agency.

  113. Hello sir,
    One of my friend age 29 yrs has bought Aviva’s life shield advantage term insurance plan in which policy cover is of 50 laks..policy term is of 30 years & yearly premium of Rs 15000/- If there is no death, policy holder will get all amount (total premiums paid Rs 4,48,000/-). Is this good one??? He is asking me to go for the same… kindly sugeest.

  114. Dear Sir
    I am a mechanical engineer. i am working in refinery & power project . I want to take a e term policy. i have few question regarding it. pls suggest-
    1) Right now i am working abroad for short period ( 1-2 yr). Am i eligible for taking term insurance.?
    2) Single premium or monthly premium which is best?
    3) i quit smoking 4 yrs ago. can i declare a non smoker while taking policy? i consume alcohol occasionally. Does it matter while taking term policy.
    4) Should i take accidental death benefit?

    1. Sujan-1) Yes eligible. 2) It depends on your comfort. 3) Yes you can declare as non smoker. But better to declare as you consume alcohol. 4) Better to buy separate accidental insurance from general insurance companies.

  115. Dear Sir,
    My age is 34 years. I want to take online Term plan of Rs.50.00 lacs. I am confused among
    1. SBI Smart Shield
    2. Bharti Axa
    3. Bajaj Allianz

    Please suggest me the best among above mentioned.

    Thanking you in anticipation

  116. Dear Basu,

    Have you recently compared the critical insurances plan available?

    I am currently 40 yrs old and looking for a CI plan of 20+ lacs for self and spouse, with maximum covberage of diseases and company with good image and track record.

    After having researched a lot of plans i could sense that religare meets most of the criterion (although hdfc ergo is close but lessor on number of diseases covered) although it does not have a track record as it is new.

    1. What is your view. would you recommend this or any other company/plan?

    2. Is is possible to buy a mix of different plans from different companies so as to achieve the total coverage?

    Thanks in advance

    1. Anshuman-You can go ahead with your choice. But personally I am not fond of critical illness cover until and unless there is a family history of such diseases. That also these policies come up with so many complicated wordings. Hence I prefer to create separate fund for this.

  117. Hi sir, could u tell me which one is best option for future. We have 50 lakh term insurance for me n my wife each. So I think from life insurance purpose we have sufficient. Now I m planning for retirement policy or something like that while can give me montly or yearly money because if lumsum fund, received after maturity, I have to again invest but from that I will/ may be not get as much as monthly pension amount. Plz suggest me how much I get if I invest 7000 pm for 10 to 20 years(whichever you think best) lumsum payment plan n pension plan both types. Please.

  118. Hii sir,
    I am gaurav age 25 annual income 5Lk. i want to take term plan of 1 cr. Which is to choose: TATA AIA Iraksha OR Max life… Please suggest.

  119. Hi Basavaraj sir,

    First of all a big Thanks to u for educating all of us.

    I am thinking of taking a term plan ( my age is 49) . I am confused about two options.
    Tata Aia i Raksha Supreme and Kotak Epreferred term plan .

    Tata has got really cheaper premuim but is a bit low on claim settlement ratio with a good option of cover upto 80 years( Its attractive bcoz 75-80 is our high risk age. May be i may not earn on that time but atleast my dependents get some good money then…Its just my opinion plz correct me if i am wrong)
    Kotak has got identical premium with good claim settlement ratio but upto 75 years.

    Can u plz suggest a good one?

      1. Sir,

        1.Atleast it covers me in my high risk times…and those who are my dependents will get some good money right.
        2. Ok If i reduce my cover time, which of the above two should i take?

  120. Hi Basavaraj,
    I have already taken a Term insurance from LIC and for 25 Lakhs /20 Years , Is there a possibility to increase term insurance amount on same policy by increasing the premium, I spoke with my agent and she says its not possible, want to confirm you, also if in that case is it a better option to opt for another company for another 25/50 Lakhs,

    I am 32 year old , having a wife and a 4 month kid

    Appreciate your response


  121. Hi Basavraj,

    I am 24 year old salaried employee (3.5 Lacs p.a).2 years back My family member forced me to buy one LIC Jeevan Anand policy [S.A. 10 Lacs ,25years term with premium amount 38k p.a].I was unaware of Financial planning that time.Now I’ve realised (after reading many financial blog especially Basunivesh) I am spending 12% of my take home for only 10L Sum assured!!!!

    I want to get out of this policy but my agent told me I have to run the policy for 3 years to get the surrender value which is less than one premium amount.

    I have decided to stop paying premium and buy an online term plan.
    I want your suggestion about my decision and please suggest which term plan to buy between LIC, HDFC,Max Life.

    Thanks in advance

    1. Sourav-If you are sure that the surrender is less than one premium then better to close it now itself. The chosen companies are best. Please check your affordability and buy at the earliest.

  122. i am 42 year old earning Rs20000/ pm , i had paid 5 installments of ICICI lifestage Assure with premium Rs. 10000/- and I had paid 3 instalments in LIFE STAGE PENTION PLAN of Rs. 15000/- . i m paying jivan saral policy with instalment RS 2100/- pa. I had invested Rs 4,00000/- in various FD. now want to invest in Mutual fund and want to get plant life ICICI WELTH BUILDER ii MAXIMISER FUND. So suggest good MF and also suggest if better plan to create wealth around Rs 15,00,000/- after 15 years.

      1. ICICI Wealth builder ii or wealth protector are ULIPS which may not give more than 6% return in long term. ULIPs are complex financial instruments and difficult for a common person to follow. Even if you surrender it, you will get the money only after a certain period and your fund will shrink due to various fees that will be still applicable. So better to avoid ULIPs and go for PPF, FDs and Mutual funds to enjoy safety and growth.

  123. Hi sir , i was searching a term plan for my wife she is housewife & Bharti Axa &Aegon religare company have such policy that if I will buy a policy of 50 lac they will give my spouse 25 lac insurance.sir please suggest me which one is best or what can I do?

  124. I would like to take 3 term insurance policies of 1 crore each from different companies.
    My annual income was 6 lakshs.
    some body told me that i can avail a maximum of 1 crore only from all of the term policies i took.
    i would like to take policy from
    1. Icici pru
    2. Sbi life
    3. Hdfc Life
    thank you sir.

    1. Dear Shiva,

      We’re glad you considered ICICI Prudential for your term insurance policy.

      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 Life’s claim record: We are committed to honour all claims quickly and fairly. As per IRDA’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

  125. I am 52 years old NRI and had heart surgery 2years back in India. Can I get term insurance plan for 10yeras, If so, Kindy suggest some of the companies who provide term insurance after surgery.

    Thanx in advance

  126. Hello Sir,

    Your article is very helpful and making clear. I wish to take a term policy for 1 crore for 35 years of term for my spouse who is aged 38yrs working with an annual income of 7 lakhs. I plan to take in four different insurance companies. Can you suggest which plans would suit best for us.

    In one of your article u mentioned claim rejection may be due to inappropriate paper work. Can you guide me what are the details we need to furnish and what type of care and measures to be taken to avoid rejection during claim period.

    Thank you In advance

      1. Just as precaution of rejection i thought to invest in different firms. If so can i constrict to 2 insurance each of 50 lakhs or should i prefer to 3 plans. Can you suggest us good plans. Many compare policy sites referring HDFC protect plus. Can i go for it? Before taking the insurance plans… what all points i should check about the company other than claim settlement ratio. TIA

        1. Madhurii-In my view no need of diversification. But if you feel comfortable in doing so then you can go ahead. Why compare policy sites ONLY referring you HDFC alone? Don’t run blindly on their recommendations. Check other companies also like LIC, ICICI, SBI, MaxLife and few others. Once you understood the features and premium with your budget, then only go ahead. It is hard to point which other things you need to consider while choosing insurance companies. Instead it is better to stick to old companies than new entrant.

          1. Hello sir,

            I finally decided to take term insurance from Max life for 1 crore where i got a premium calculated to 8k which is very less comaprative to other companies. i dnt find any other company near to this premium. But claim settlement ratio is around 93%. Still can i opt this? Kindly throw ur suggestion.

  127. Hello,

    Can i opt for multiple online term insurance plans, say i take 2 or 3 plans from the best 3 companies? This is just not to have all eggs in 1 basket, in case any one of them turns out to be a bad company while paying the insured amount.
    Is it OK or it violates any rules which would make issue later.

  128. Dear Basavaraj,

    I was reviewing various company health plan for my family and found your post for checking settlement ratio. I note you mentioned term insurance, can you please explain what it is. Secondly you correctly mentioned that after retirement earnings will stop so how to pay premium ? Can you advise please.

    1. Siraj-Term Insurance is pure insurance product where (suppose your age 30 yrs) if you buy Rs.1 Cr term plan for 30 years then if your death occurs within 30 years then your nominee will receive the sum assured you opted (Rs.1 Cr). If nothing happened to you during these 30 years and you survive the policy period then insurance company will not pay you anything. That is the reason they are cheap, affordable and must to have product.

  129. Hi,

    I am 40 years old non smoker and employee and I would like to go for term plan for me and my wife (non employee no IT returns) I can support for both policy payments through my salary. I would like to go for each One Crore.
    Can you please suggest me which policy offers best for both.


  130. Hi,

    Thanks for the information. Your article helped me to buy term insurance.

    I need your help in finding good health insurance scheme for my mother-in-law (45 years) and father-in-law (48 years). They both are having diabetes.

    Thanks in advance

  131. I want to take my term plan
    but i am self employed professional
    I have not filled ITR
    can I get term plan from good company like LIC

  132. Dear Basavaraj,I am 64 yrs. Male.I am having term policy from LIC which is expiring next year.I want to extend my policy.What are my options for another ten years.thanx for reply.

    1. Jlbansal-I think it is hard to get the term insurance at this age. Reasons are-insurance companies ask you so many reports and if your health condition is not well or any issues then they reject proposal, premium will be too high and I feel all insurance companies restrict maximum entry age as 65. But you may try your luck.

  133. Dear basavaraj sir
    Just need ur advice regarding mutual funds.. And term insurance.
    As my mom is working in lic.. She is asking me to take lic eterm policy at least 40 lakhs which costs about 7300rs approx.. I have jeevan anand plan for 7 lakhs. And personally I am investing 3k per month in bank rd and I am investing 7k in mutual funds.. 1) hdfc midcap 2) hdfc balanced 3) icici prufocused bluechip 4) franklin smaller companies 5) uti mid cap 6) mirae asset emerging bluchip 7)Franklin high growth companies fund
    Now I want to invest 3k more for my future.. Where should I go? Ppf or gold funds or mutual funds or any endowment or money back plans..
    And also is it good to take term insurance from hdfc or icici for less premium and slightly less settlement ratio..

    1. Dheeraz-First buy term plan (from the company you comfort). Reduce your number of funds to 2-3. Invest the fresh investment in same existing funds. PPF and Gold is not worth if your time horizon is long term. Endowment or Money Back…a strict NO.

  134. It is simply useless to talk about Pure Term Plans unless Life Insurance becomes mandatory in India. Certified Financial Planners opine that one should always purchase ONLINE TERM PLANS because they are cheaper- however, Section 41 of Insurance Act 1938 strictly says no rebate should be given on Insurance premium and hence differential premiums in the online platform are direct violations of Insurance Laws. We have been following the West- the West has 3 top priorities as regards Insurance- First health, second Property and Third – Life Insurance…. Moreover, you can only register for an Insurance proposal on online…the proposal for insurance will be accepted after the Insurance Underwriter ‘sees’ you in flesh and blood…..and you pass all related Medical Tests……

    1. Joy-Welcome and I expected your comment 🙂 If section 41 of insurance act is is about rebate then why IRDA approved these online plans? I think IRDA or insurance companies totally forgot this section. However, you and me remembering this? I am quoting the same act here once again for understanding of all “1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the PREMIUM SHOWN ON THE POLICY, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer: provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
      (2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.”
      Now let me know whether this act is meant for agents who offer rebate while selling or to insurance companies who offer rebate for online buying rebate, mode rebate or higher sum assured rebate? (Please refer the wordings which I highlighted with CAPITAL LETTERS in above section.)
      Coming to following western think of insurance. They prefer health because cost of hospitalization, they prefer property insurance because they are more prone to natural calamities and finally health. So it does not mean that we must follow the same way. Our priorities must depend on our requirement and safety.
      Hope I replied to you properly 🙂

      1. Dear Basu,
        Thanks for your answer. Yes we have written to IRDA denouncing the Differential premium slabs for online and offline platforms. Hope IRDA will soon issue guidelines to Insurers in this regard. We have even written to LIC Management on this matter. Hope Differential Premium slabs will soon be done away with. Happy V Day……Basu…. Today I will not get into any squabble with you……… Today is V Day… Enjoy the day with your most prized possession … your children and better half and tender my Good wishes to them as well…. Lots of Good wishes…..In days to come…. we will lock horns…..

  135. Hi Basu,

    First, i would like to thank you for sharing the information, it has helped me as well many others.

    I am planning to buy insurance for my baby girl who is 2 months old. Could you please advice which insurance is best, it is for education.

    Thank You!

    1. Shreehari-No insurance required for your kid. Instead first cover yourself by buying online term plan to the tune of around 15-20 times. Then forget about insurance and start investing in the other products like PPF or mutual funds.

    2. No need to invest in Insurance policies, Take a term insurance plan and invest in Sukanya samruddhi yojana or PPF or mutual funds, If you required i will send the details of mutual funds you can contact me on my mob number 9964752416 or mail me to [email protected]. I am also living in bagalore, Indiranagar.
      Financial Advisor.
      Family financial solutions.

  136. Can you through some light on PLI Schemes,
    Like requirement of medical check up whethre kids can insured if parent is ovt employee etc

      1. Post Office PLI is about to get a face lift and considering the fact that there are more than 200000 + Post Offices in the country and 70 per cent of the country’s population lives in Rural India , PLI is opening up its tentacles to tap the market, particularly the Rural Market….. IRDA has hinted that it will soon scan PLI products and bring the GROUP under its purview… Insuring with Post office has its plus points…But I do admit that the sector is not as organized as LIC but the BONUS rates of PLI products are enviable… I too cannot purchase a PLI product but I feel that it is more Govt monitored than Post Office monitored or guided and The Insurance Amendment Bill 2014 will help PLI or RPLI get a renovated look………

  137. Hi Basu,

    Thanks for the article! I was looking to buy a term plan and was referring to you last link. I have the below dounts and would highly appreciate your sugesstions-

    1) You has suggested that one should disclose all his existing policies clearly to avoid chances of any claim rejections later. Does it include disclosure on on-term insurance policies as well? (Like couple of ULIP plans from LIC, SBI Life and Birla Sunlife done primarily for tax saving-( which again I know are not good saving instruments))

    2)Also Max life has a pretty good settlement ratio and is considerably cheaper than HDFC ,SBI , ICICI etc . It it a reliable option or should I go for HDFC C2P instead?

    1. Ankit- 1) Yes you need to disclose all Life Insurance products across all insurance companies.
      2) If you are comfortable with that company then go ahead. I don’t see any differentiation among HDFC, SBI, ICICI or Max.

      1. I think many people are asking for HDFC C2P + these days due to that income option. This is a good strategy as people think they will not loose the entire money in case of pure term plan. Even Max and Aegon religare has also launched similar kind of plans. But frankly a term plan should always be considered as Pure term plan without any expectation of maturity return. In fact all these latest term plans with monthly income option will simply work like a better insurance + saving product only.
        What is your opinion on this Basu?

        1. Santanu-Yes, you rightly pointed. That is the reason I listed only those products which are online and plain vanilla term plans. Complicating individual is not a best product. Keeping our finance as simple as is the best 🙂

          1. Hi,

            I am confused which type of term insurance is better. I already had one for me from HDFC C2P+ but as per the current market scenario, is money back on term insurance better or plain term insurance .

            Kindly suggest the best possibility.

              1. Hi Basavaraj ,

                Actually , i compared the various term plans at and bought HDFC C2P+ but later on discovered that there are other plans that offered money back option which i was not aware of initially.

                So , should i continue with my exiting policy or buy a new term plan offering money back option.

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