Categories: Insurance Planning

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.

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.

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. 

BasuNivesh

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  • 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

  • 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
    Non-Smoker

    Thanks,
    Paritosh Maithil

      • 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?

        • 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.

          • 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.

      • 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

  • 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.

  • Dear Sir,

    I have received a call from poliy bazar.com 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.

    • 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?

    • 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.

  • 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 ?

      • 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 ?

        • 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.

    • 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 ??

  • 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?

  • 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.
    Prem

  • 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.

    Thanks

    SUNDAR

  • I want u to have a look at Canara HSBC OBC Life insurance for vanilla type term policy and suggest us pls.

  • 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.

    • Dipesh-Don't believe PolicyBazaar guys. They are nowadays acting like agents to few particular companies. Don't split, no logic in that of going with two or three insurers.

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Published by
BasuNivesh
Tags: Best Term Insurance Plans 2015
11 years ago

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