The Term insurance premium of LIC’s online term plan E-Term is around Rs. 50 K but in the Max Life – Basic Cover – Rs.14 K. The premium can be comparatively 10% to 20% high or low but in this comparison it is too much what chould be the reason for this sort of variance, is it on account of coverage or any hidden facts?
1 Answers
Ravi-Premium calculation depends on many factors like the mortality table they use, actuaries design of plan, company’s profitability and the competition in that product. These all factors are hidden and we can’t question them. You have to either go with that premium rate or chose different insurer.