IRDA Claim Settlement Ratio 2013-2014-Which is best Life Insurance Company?

Today (8th January 2015) IRDA declared Annual Report 2013-14. This report gives you an insight into the Indian Insurance Industry and also let you know which company is top and how the rest of companies are performing.


IRDA Claim Settlement Ratio 2014-15-Which is best Life Insurance Company?

Top 5 Best Online Term Insurance Plans in India-2016

Term Insurance-Claim Settlement Ratio no more a big criteria

Below is the latest data of claim settlement ratio for the year 2013-14.

Claim Settlement Ratio 2013-14

Note-I coloured with green, whose claim settlement is above 90%. I coloured with yellow, whose claim settlement ratio is more than 80% but less than 90%. I coloured with red, whose claim settlement ratio is less than 80%.

You notice that top five companies when it comes to claim settlement ratio, are LIC, ICICI, HDFC, Max Life, and Star Union. You need to concentrate on claim repudiation percentage also. Because, this clearly states the company’s acceptance of the claim it receives. Along with that, pending percentage indicates the slowness due to one reason or another.

What are the limitations of this report?

  • It will not differentiate the type of products, which each company settled like endowment, term insurance or ULIPs.
  • Reasons for rejection are not available.
  • Usually settlement ratio increases as the company getting older into this industry. So older the insurance company higher chances of growing it’s settlement ratio.
  • To add my reasoning to above point, usually early claims means the claims which are within 2-3 years of buy. Including LIC, all insurers do a strict scrutiny of such early claims. So there is high probability of rejection. If the insurance company started it’s business just 3-5 years back then it may receive all claims under early claims. So rejection may be higher. Ending this as a lower claim settlement ratio.
  • No guarantee that a company which has the highest percentage of claim settlement ratio not rejects your claim.
  • This data is for a year. So insurance companies either settled claims within a few days or might have taken less than a year.

Visit my earlier post “IRDA Claim Settlement Ratio 2012-2013-What it indicates?” to compare the report of previous year.

Hope this report will shed some light for you before selecting your insurance company.

471 Responses

  1. I was buy a ageon life policy money back but not satisfy the poly duet o advisor worryingly advice so how can i refund my policy we have already pay 2 and half years

      1. Hi,

        Thank you for notes and its very helpful guide to plan our finances. I have question regarding Term insurance, say if i am smoker and consume alcohol on weekends and by mentioning it i am going to pay extra 4-5k premium which i understand. My query is, even after mentioning that i am smoker and alcohol consumer and paying extra premium, do the insurance company has the right to reject my claim after few years or many years if incase the death is caused due to any of these reasons?

        please help me to understand this clause.

  2. Hi Basavaraj,

    I am 31 year old, Non smoker and looking for best Term Insurance for 20-25 year & some investment plan for short term say 10 year for good return. I am quite confused as one of the my close relative LIC agent said that other companies might not pay/Reject the desired claim saying any other reason and you/your relative will end up saying that “would have been better if we had gone for LIC plan” Is that true? Also have one question- are these LIC policy’s customer focused or Agent focused, Whatever i have seen so far don’t think it gives greater return on investment and very little death claim. I see agents are growing in terms of wealth but not the actual customer!! strange!

    Please advise me the best plan for Term Insurance & Investment with any specific company details.

    Appreciate your help on it.

    Thank you

    1. Deepak-Your doubts are genuine. Your so called relative LIC agent, misguiding you. When it comes to claim rejection, private companies or LIC no one can reject blindly. All agents defend their insurance company. It is natural. Think on your own and decide. Regarding best term plan, refer my latest post “Top 5 Best Online Term Insurance Plans in India-2016“. Regarding investment, I can’t recommend anything. Because I am not sure about past financial life, present investments and future financial goals.

  3. Hi Basa,

    I am 35 years age and my annual income take home is around 5 lacs. I have 35 lacs trem plan of ICICI & 20 Lacs from Aegon Religare. Now, based on claim ratio I am confused in aegon credibility because his % is very low. Some LIC agents also told me that private insurance companies always try to hold the claim for one or the other reasons. Is it correct? Should I drop aegon religare term plan and opt for some other? then which company term plan? what should be my life cover? plz plz reply urgently.


  4. Hi Basavaraj,

    your blog is very useful to get information about insurance policies. thank you so much.
    After reading your all articles. I have decided to get one Term insurance for 30yrs & My age is 28years,.
    But how to decide the cover amount 50L or 75L or 1Cr. please I need a logic for this like how you have given for policy term.
    I am a IT professional with 8lakh PA income.

  5. I am planning for sukanya samrudhi yojana for my daughter . she is 2 years old .
    I have plans to settle abroad after may be 5 years . what will happen to the money that I pay for this 5 years and can I continue to pay even after I go abroad .
    for example I become a NRI after I pay 10 years of amount what will be fate of that 10 years money.

    1. RAvi-Forget about your NRI status change. First think whether this is a great product to beat the education and marriage inflation? It is a typical debt product handed in political parties. When government changes, then we don’t know the faith of such schemes. Stay away.

  6. Hi,

    My name is Gautam Shahi, age 22 years. I wanted to buy a Term insurance plan for maximum tenure i.e, 40 years but confused among ICICI Prudential and HDFC life. As i am seeing that premium cost of ICICI is more than ICICI. Apart form them all benefits are same except claim settlement ratio. So can you guide me which one would be better?

  7. Hello Basu,

    It’s nice reading your blog. Currently i am in search of Term plan for my elder brother fro around 50lakh – 1 crore. His age is 25yrs with yearly income of around 5-6 lakh and non-smoker. I have tried searching many Term plans and came down with two of them. HDFC Life & Edelwise Tokio . But I am being confused on the basis of benefits (Riders) and claim settlement ratio.
    On the basis of riders :- common rider attached is Accidental Disability benefit available in both HDFC & Edelwise.
    Wheres edelwise gets ahead in two cases:- Premium waiver rider and the Term plan premium amount which is comparatively less.
    So, Now looking as per above scenario should i consider HDFC :- Being Trusted, High in claim settlement ratio, although it doen’t have premium waiver rider. OR
    Edelwise :- Being Just new company,Low claim settlement ratio,Having fantastic riders and with Less Term plan premium amount?

    Since, Term plan premium will be ultimately cost for me till the uncertain event, I was also looking from coverage part keeping to minimum premium amount. Please advise

  8. Hi Basavaraj,

    First of all, I appreciate your effort in providing us with the information. I am new to this stuff. However, I decided to buy a term insurance for 1 cr. After some online research, I would like to go with Max life (50L) and PNB met life (50L). Is this a good idea? Could you suggest something better? I’m 27, m.

    Many thanks in advance.

    1. I am sorry. It was actually PNB met life and HDFC. If I buy from 2 different companies, for 40 yrs term, I have to pay 11,362 rupees annually. Whereas, If I buy it only from PNB metlife, I will be paying only 8418 rupees p.a. Is it worth buying from two companies or just from PNB?

      Thank you.

  9. Hi Basu,

    I have some queries regarding Home loan.

    I have home loan with HDFC Bank and out standing amount 19lacs , and no og emi’s 144 and current interest rate 9.70%.
    I want to move current interest rate 9.55% for this i have to pay conversion charges 5322.If i pay this charges no of EMI’s decreased to 141. Here nest reset date is showing 01-feb-2015.

    1.Is that good idea to move current interest rate?
    2.Is that right time to move current interest rate?
    3.Once i move to current interest rate is always applicable to current interest rates(i mean it will always follow the RBI announced interest rate) or i have to pay once again charges?

    Please advice me in detail.


          1. Chennaiah-By moving to this lower home loan, you can save around Rs.23,000 on interest part for the whole tenure of period. But the cost of change itself is around Rs.5,000. I don’t think it creates much difference to you. Banks usually offer such things to lure the new customers or build their new book of loan. Don’t heed. Stick to your current floating rate loan. If the difference is more than 1% to 1.5% and the cost is same as that of Rs.5,000, then think of switching.

  10. Hi Basava,

    I want to purchase term plan here i concluded MAX Life, Reliance and Bharati AXA.
    Among these MAX and Bharati are 35 years term where as reliance is 39 years

    Let me know which is best and why.

  11. Is Term Insurance or Medi-claim worth ?? I heard that Insurance companies do not settle any of these claims easily.

    They harass and comes with lots of terms and condition when claimed. They cover only natural death in term plan and only specific illness’ in medi- claim. No critical illness’ covered.

    Why should than

    1. Chittaranjan-There are many reasons for claim rejection. It may be due to hiding facts from buyer too. Many of us will think of insurance when emergency knocks our door. So we hide material facts to get the insurance at any cost. This results into claim rejection. Second point is we don’t know the exclusions or we never try to understand it. If according to you all claims start to get a reject, then I don’t think even insurance companies will survive in future.
      At the other side, critical illness is a complicated product. It comes with so many restrictions and excludes, which many of us not understand and blame on insurance companies. If one has any such grievance, then there is always a way to go ahead like complaining with ombudsman or regulator. Ignorance is the main cause.

  12. LIC has a good repo of settling claims. Rest all private players do not have the attitude to pay. They find reasons to reject your claim. They are only concerned with new premium.
    Hence it is a request from all that take policy from a company who really pays your claim. Rather than private companies who puts conditions & rejects claims.
    Please share claim experience with private companies, if you have.

  13. Hi Basu,

    I am planning to purchase LIC online term policy for 1 Crore. I am 28 yrs old non smoker. But compared to other private insurance companies, LIC premium is almost double. Please suggest which company I have to choose in terms of smooth claim settlement with reasonable premium.

  14. Hello Mr. Tonagatti,
    This is a very resourceful web for the beginners like me. Plz help me out. I am a Govt. employee (Age 26) and want to invest 3000/month or sum total annually for 3 years targeted period, then which will be the best economical options for return? Can I get tax savings facility from that? plz suggest.

  15. Hi Basavaraj,

    I am purchasing term insurance with Max life, worth 50 lacs, age limit of 70 yrs and per yr premium of 6927.

    Believe MAX is not a indian company and might have some agreement with indian counterparts?

    what if there might be any issues between MAX and indian counterpart and if nominee has to get compensation, who would pay ?

    I am sure IRDA has systems in place.

    Could you kindly explain?

    In what circumstances insurance companies will not pay nominee. Please explain this also…

    Regards Sachin

          1. Very Nice blog !. I wish i would have read your blog earlier ! Stuck in ULIP from last 4 years. Although premium is only 15k which is not much but i could have done something else with those 15k and still could have earned tax benefit.

  16. Dear Sir,

    I am 41years old with wife and two kids. I read your blog regarding the “Claim Settlement Ratio’ and I would like to seek a clarification. I am an NRI and my yearly average income is Rs:15 Lakhs.
    I would like to join 2 Term insurance plans, ie 50 Lakhs sum assured in one company and 75 Lakhs some assured with another company. Now my concern is if I join two tern plans together, whether my nominees can get settlement from both companies or only from one company? At a time whether its permissible to get settlement from both term plans for same person’s nominees? How many term plans one person can join? If I join two term plans, should I declare to both the companies that I joined two term plans?.
    Kindly advise,

    Loyit Mathew.

    1. Loyit-You can have as many number of term plans as you wish. But there is no logic in splitting your term insurance. However, if you decided to split, then you have to buy the first term plan. From second plan onward, you have to mention the existing insurance without fail. If you do that, then I don’t think your nominees will face any issue.

  17. Hi Basavaraj,

    All insurance companies have different premium for smoker & non smoker. Suppose I buy a policy for 35 year and declare non smoking. My question is currently I am non smoker/non tobacco user. After say 10 or 15 year I start smoking or tobacco or start consuming alcohol. If i die during policy term will there be any issue in claim settlement?

          1. Very nice information. I am adding following clarification just for the benefit of the readers.

            As per my information, you have to inform insurance company if you develop a smoking habit later. This may have some effect in your premium but this will ensure that your claim is not rejected later.

            See PNB MetLife FAQ’s :

            It reads :

            What if I develop a smoking habit after buying the insurance plan?
            We have a term policy of 40 years and since it’s a long time, a person may develop smoking or drinking habits during that time. We urge you to disclose this fact to us as this will reduce your chance of a claim being rejected at the time of maturity

  18. Hi,
    Very good useful info provided. I have one question please let me know while choosing term insurance i should see claim settlement ration or the premium for example
    kotak term insurance claim ration 90% where its premium is around 10k for 1 cr
    hdfc term insuance claim ration 94% where its premium is around 13k for 1 cr

    90% and 95% is really that much matter in future years it may change both companies are good i was thinking kotak is better to take as premium is less. pls let me know what other factors shd i consider?

  19. is there any problem to purchase on line HDFC LIFE insurance . Once policy is purchased , whether co. can make any objections in claiming? if yes what type of objections.

  20. hello sir,

    i am 43 years old and i want to buy term policy but i am confused between PNB Metlife and Maxlife since in pnb metlife cover is till 70 years and maxlife cover is till 75 years whereas the premium is same for both. kindly suggest

  21. Hi Sir,

    this is a different question all together, I want to become an Life Insurance Agent (not health insurance). I want to choose from ICICpru,Max and SBIlife.

    What should be my criteria for choosing the company ? i think one criteria is certainly the Familiarity of the Company in public.

    Kindly suggest

    Anand S.

  22. hello sir im 31years and want to buy term plan.
    im confused between hdfc and max life. premium difference is only 2000 for 1crore policy.
    should i go ahead with maxlife or hdfc which one do you refer.

        1. Hi Suresh,

          How was your experience with MaxLife? I am also planning to buy term insurance plan with them. Please suggest.

          1. Hi Anand, experience will always be great while buying any term plan from any company. Issues and problems occurs only at the time of claim. 🙂
            I would suggest if you want to buy 1 crore plan then you can consider to split between to like for example : take 50lakhs from max or etc and another 50lakhs from hdfc or icici / etc . you can choose any reputed company. i would suggest full lump sum payout in one time only.

  23. Dear sir
    I m 27 year old.
    I have aviva I term plan of sa 5000000.last two premium had paid.this is my third year. but I got a call from policy bazar nd they told me abt the claim ratio of aviva.and he advised me to purchase max life insurance bcoz they willsattle claim in just 10 days and aftr 2014 dec yheris a rule jisse jo policy dec 2014 k baad purchas krengeor usko agr do saaltk run krenge to claim reject nhi ho skta…. skta…I thought max life insurance is better than aviva so I purchased it.on 25sep15…but nw I am confused. decision is correct to buy max life insurance or not….plz help…should I continue the aviva life insurance and cancel max life insurance since I hv not received bond pappers yet.

    1. Aashi-Cross question-What guarantee the policybazaar guy will give you that the concerned person or the portal itself will be there when the actual claim arise? They don’t have any such set up to help you by handholding. Their concern is to SELL and EARN commission by selling SPECIFIC few online term plans. It is all sales gimmick. If you are comfortable with Aviva, then continue.

      1. thanks for the fast reply.
        Sir now please advise should i cancel max life insurance bcoz i have already paid the premium but i have not rcvd the bond of max life insurance policy and plz let me know the procedure to cancel this and request for refund.i have made the payment to purchase max insurance on 25sep15. i feel like cheated by policy bazar. please help me..i really need your advise.
        one more thing i want to share with you when i purchase aviva ilife they said medical is not required.
        i hope there wont be any problem in case of claim.

        1. Aashi-If your Aviva is still continue and you no longer need this MaxLife, then better to cancel. You can cancel it during free-look in period (within 15 days from the date of receipt of policy document).

          1. First of all sorry for the so many questions.
            my aviva premium is overdue by 10 days.should i pay the premium of aviva and wait to receive max life insurance policy pappers and only than i can cancel the policy or i can cancel it right now.
            how much time it will take to refund my money.i am really tensed, my money got stuck bcoz of my foolish and hasty decision.:-(

            1. Aashi-Don’t wait, pay the Aviva premium. If you get the MaxLife and dedicded to retain MaxLife over Aviva, then cancel Aviva. In my view, it takes around 5-10 days to get back the money (They deduct the medical examination cost and the tax paid).

              1. Last question sir,
                Since I have both option…pay aviva premium and continue it or retain max life insurance.
                I want to stick with the good and reliable insurance company coz I bought it to secure my family future.
                According to you, should I stick with aviva or max.

  24. Hello

    I plan to take a term insurance for myself and one in my wife’s name. Both of us are earning members. I am in merchant navy and my residential status is NRI. My wife is a resident Indian and we both reside in India.
    My query is as follows
    1. Can I get a term insurance . Will me being a mariner/NRI have any issues on getting a term insurance ?
    2. Which are the companies providing term insurance for people like me.


    1. Ajay-1) Yes, you get term insurance and there are few insurance companies which offers term insurance to NRIs too. So no need to worry.
      2) There are many and few of them are like HDFC, ICICI or Max Life (few to name).

      1. Myself too a person from merchant navy – NRI. Kindly note that only 2 companies are providing term cover for merchant navy people – Maxlife and Aviva. — means they cover onboard ship also ,means if any mishap happens onboard while in international waters also. whereas other companies issue for NRI but have various limitaions like it wont cover for persons working in military,merchant navy etc.etc.

        So comparing Aviva and Metlife, I took a term policy from maxlife.
        SO before taking any term policy, kindly confirm with the company’s highermost official you can about claims if happened onboard at open sea.

  25. Dear Sir,
    My friend’s mother got expired due to brain hemorrhage. She had various policy from bajaj alliance, kotak and LIC. Is this considered as Accidental death?
    Bajaj alliance is saying we can pass claim only and only if you can provide P.M report. They have not gone for P.M report because they are informed that it can much time. And at that critical time, relative pressure to wind up procedure is too high.
    They have certificate from local doctor giving death cause.
    Kotak is also asking for P.M.
    LIC they have not started process.
    Kindly suggest what can be done?

    I want to go for term insurance. I am confused to choose company. I think LIC can be better as they are not asking for P.M report after 3 yrs.
    Other private players they ask for P.M report if death is from accident(they know by other document that person is dead then why they insist P.M report? they should give normal death benefit). and doing P.M is tedious and time taking task.
    What should i choose? LIC or other private player? confused…

  26. Hello Basavaraj,
    I am 31yrs and married. I am planning to buy term plan of Rs 1 cr. Could you kindly suggest me between PNB Metlife and Max Life. I will be taking it for 29yrs.
    I have one more doubt , should I go for annual premium payout or one time premium payout.


      1. Thanks alot for your inputs. That’s pretty fast reply. Much appreciated. I was expecting your reply by Monday 🙂
        I will go for annual premium. But I have one doubt about MaxLife. were they able to last for 3 or more decades. in India.

        I think PNBmet life can also survive.

        Other major like : HDFC, ICICI, SBI, Bajaj are sure shot lasting companies.

          1. Thanks for your reply.
            Just one more doubt about rider options in policies.
            Ex. :
            1 case : Mr. ABC took term plan of 1Cr. without rider option and he passes away in accident or critical illness
            2 case : Mr. XYZ took term plan of 1Cr. with rider option (25lalk) and he passes away in accident or critical illness.

            Ans. 1 case : Family of Mr. ABC got only SA of 1 Cr.
            2 case : Family of Mr. XYZ will get SA of 1 Cr plus rider benefit amount 25 lakhs.

            is my understanding is correct about it.

            However I called up PNBmetlife and asked them about rider option. But they told me that this option is not available right now they are seeking IRDA approval.

            But Maxlife have this option. There call is disconnecting with me. I will try tomorrow with them.

              1. thanks Basavaraj for your expert advise.
                I am taking Term plan now. It’s great for risk coverage .
                I will be getting 1 cr. cover for just 7500 / yr.

                Now I am planning to exit from my LIC Jeevan anand 149 which I am paying from last 4 years. around 21000 / yr.

                So remaining amount I will put in Mutual Fund large and diversified.

  27. Sir i am 34 years old i take sri ram life insurance policy But i am not satisfied plz details this company is under irdai and i believe this company.

  28. Sir,

    I’ve purchased 1crore term policy from max life on 23.9.15. PNB metlife premium is Rs.8972 & max life is Rs.9006. Did I do mistake by taking from max life. I’ve seen claim settlement ration 95.5% from max life. pls suggest as I need a correct insurer. Is PNB metlife better option than max life.

  29. Hi Basavaraj,

    Thank you so much for providing relevant information regarding various insurance providers. I just wanted to check if there’s a reason Apollo Munich is not mentioned in IRDA data, I hold Apollo Munich health insurance policy and I would like to change in time before its too late.

    Thanks again for all your help.

    – Shweta

  30. Hi Mr. Basavraj,
    We are planning to take a home loan. Which would be the better option to cover the same i.e Pure term insurance or loan insurance?
    My husband left smoking 3 years back. Where we should put him i.e smoking and nonsmoking category?
    Kindly , suggest a good term insurance plan with permanent disability and critical illness option.


    1. Rupali-The advantage of loan insurance is that the premium start to reduce (in pure term insurance it will be constant). Hence, I suggest a loan insurance, but not strictly with bank. You can check with other insurers and go ahead. I know banks may insist you to buy the product with them ONLY. But it is not mandatory to buy with them. Hence, buy separately. At the same time, disadvantage of loan insurance is, if in future you want to buy an insurance for your own then premium will be high. Considering both views, decide on your own. If he left the habit 3 years back and in future no plan to continue, then mention as non-smoker.

  31. Hello..

    First of all, Kudos for a nice article.

    I have one query. I am 26 years old and soon will be 27th by Sept end. I am planning to purchase a Term Life Insurance before I turn one year older.

    I am looking among LIC, HDFC and ICICI as they have good claims Paid Ratio. I request you to please let me know if there are any other factors as well apart from premium and claim ratio, while checking for Term Insurance.

    LIC’s premium is too high when compared with HDFC or ICICI but its Claim Paid Ratio is high too. I don’t want to invest blindly and then live falsely thinking that I am insured. What are are the factors for claim rejection? And is it wise enough to prefer private companies over LIC ?

    Also, is there any category of death too for claim rejection? And one more thing, can I get option for some disability (For Precautionary cause) along with the Term Insurance Plan ?

    Please guide me.

    Very Very Thanks in advance.

    1. Ankit-You can go ahead with the selected insurers. There are million reasons for death and the million reasons for rejections. Thre is no difference between LIC and private insurers. So no need to worry and just go ahead declaring all facts properly. Disability options not available with pure term insurance.

  32. Hi Basavraj,

    I am looking for a life insurance with montly returns also it should come under 80 C.

    Some of the agents suggested that Bharti AXA insuarane,details are below
    1.Premium-1,00,000/year*180 months(15 years)=18,00,000
    2.SA-18,00,000 i.e(10,000 per month for 180 months) after 15 year till 30th year 30 year [email protected]%on SA=24,30,000(81000*30)-received at 30th year
    4.terminal bonus @20%on SA=3,60,000-received at 30th year
    Toatal benifits=45,90,000

    Shall I go for this plan and do you see any loopholes in this?

    Also i see that the Claim settlement ratio for AXA is 88.13%

    Can please suggest about this or any other company which has same plan


    1. Bishwa-First make up your mind like whether you need INSURANCE or INVESTMENT? I am not the fan of mixing both these. Whatever the plan you shared, will provide you a return of around 4% to 5%. If you can then go ahead.

  33. Sir I am 30 year old and purchased a term plan of Max New York Life of SA of Rs. 50 lacs today itself. In case of mishappening they will give Rs. 20000 for 10 years for Rs. 6783. Sir, Is claim settlement ratio, Average Claim Settlement Time, Financial Background like Solvency ratio, Trust factor of Max Life Insurance is good or not? we all feel that our family should have less hassles and claim process should be simple. It does not have any riders also. Can I return the policy of Max New York life and purchase another one. Plz suggest me if my decision of purchasing max life if right or wrong..

      1. Sir, as per claim settlement ratio, Average Claim Settlement Time, Financial Background like Solvency ratio, Trust factor of Max Life Insurance is a good option or not? Or some better option can be there?

  34. DEAR SIR,
    I have one term policy with 80 lakh sum assured with Aviva last two premium given.
    Now I want to know that Aviva is how much reliable for term policy. And what is govt. guideline for it.

  35. Non-Disclosure: Section 45 of the Insurance Act, 1938: No policy of life insurance
    effected before the commencement of this Act shall after the expiry of two years from the
    date of commencement of this Act and no policy of life insurance effected after the coming
    into force of this Act shall, after the expiry of two years from the date on which it was
    effected be called inquestion by an insurer on the ground that a statement made in the
    proposal for insurance or in any report of a medical officer, or referee, or friend of the
    insured, or in any other document leading to issue of the policy, was inaccurate or false,
    unless the insurer shows that such statement was on a material matter or suppressed
    facts which it was material to disclose and that it was fraudulently made by the
    policyholder and that the policyholder knew at the time of making it that the statement
    was false or that it suppressed facts which it was material to disclose.

    Sir what it means, i taken from hdfc website

    1. Rakesh-This states that insurance company can’t question the statements or information you DISCLOSED during policy buying after two years. But they have the authority to question any such information which they feel “material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose”. Hence, disclosing all facts properly is the solution.

      1. Thank u very much sir,
        but if policy holder do not know that, in inner part of body, what type of disease he or she suffer, because he do not know the diseases that in his body and insurance company also go for the policy holder medical test and medical test also give report of no disease after taken of 2-3 years he his suffering from any disease and got death then sir ji what happen.

  36. sir is there is any guideline of IRDA, for the completed 3 years term policy for the claim settlement ratio.
    sir i want to purchase click to protect from HDFC, is there is coverage of suicide, earthquake, floods , or rights
    which insurance company provide maximum maturity year in term policy.
    sir, i am self employed person, in 2015-16 Assessment i filled ITR of 9 lac but if my business get declined, if my income get low then, is there is possibility that insurance company deduct my SA. for not change.
    how much i am eligible for term insurance, how they calculate eligibility for term plan

    1. Rakesh-What guidelines you are looking at of 3 years term policy? maturity amount in term policy?? They look for your income only during buying. Hence, if your income decrease in coming years, then the policy will continue and they not reduce the SA. Eligibility of term insurance depends on company to company and your data. I can’t say that.

      1. Thanks Sir for your suggestions,
        Sir i want to know, one of LIC agent told me that, if term policy is enforce three years, then the claim rejection chances is very low, they consider claim.

  37. hello sir , i m planning to buy a term insurance policy but bit confused between aegon religare i Term insurance plan and pnb metlife Mera term plan, which is good for me ? my annual salary package is 5 lakhs and i want sum assured 50 lakhs and policy term 25 yrs
    I m 33 yrs old and i have one kid of 2 yrs old .
    please suggest

  38. I have a ULIP policy and an accident policy. Now since I have fathered a child I wish to secure his future by taking a term policy. The issue is that I have had a history of seizures . Is it essential that I disclose the same? My fear is the insurance company might reject my application and that might impact any subsequent application for a term insurance policy. What is your suggestion on this?

  39. Dear sir,

    I am a serving army officer presently posted in West Bengal. I may be posted in disturbed or border areas or go to war if/when declared.
    Is death during military operations, war or counter insurgency operations, aid to civil authorities during natural calamities covered in term insurance policies being offered by various insurance companies. Are there any specific exclusions pertaining to death while on military duties.

  40. Hi,

    Can please brief your views on NPS I got mail like this

    Life’s best journey start after retirement. But only when you’ve secured a wealthier future for yourself.

    Invest in National Pension System (NPS) – A Government of India Initiative

    What’s more you get additional tax benefit of up to Rs.50,000 a year under Section 80CCD 1(b) which is over the limit of Rs. 1.5 Lakh under Section 80C of Income Tax Act.


    Regulated by pension fund Regulatory and Development Authority (PFRDA),Statutory body by an Act of Parliament
    Minimum annual contribution of Rs. 6000 a year
    Choose out of 7 Fund Managers
    Choose your allocation between Equities, Govt. Bonds & Govt. Securities
    Start getting pension after age 60

    To know more Click Here

    Bajaj Capital has been granted Certificate of Registration to act as Point of Presence by PFRDA.


    Bajaj Capital

      1. Thanks for your replay.

        I have small query. I have home loan(with interest of 9.95%) some times i am paying prepayment of principle amount also.

        1.I have planning to put some fund to Mutual funds instead of paying prepayment of principle amount

        Is that Good idea?

        Please Advise me.

  41. Dear,
    my Age is 31 yrs. And i have a term plan of Rs 50 lac. can i buy one more term plan of rs 25 lac. what is eligible criteria as per IRDA & what is required income for that.pls tell me.

  42. I need help my husband had purchased HDFC Life policy 7 yrs back we have paid all the premiums regularly. My husband expired in june we put in a death claim. HDFC Life gave me my premium paid so far with 4% interest but the bonus which was declared has not been given . They are not even giving me a break up had mailed them repeatedly but they are not responding pls help me to know how i can get my money.

  43. Hi Basavaraj

    I am currently 29 yrs old and planning to purchase one term plan also want one term plan for my wife. she is housewife. should i go with which company please suggest. i have checked 2 company Maxlife and PNB metlife.
    PNB metlife recently launch term insurance as my knowledge so should i go with them or you suggest any other company or policy name. term plan should be 35 or 40 years?

    1. Vijay-If your wife is not an earning member then no need to buy term insurance in her name. Because no one is financially dependent on her. If plan features are suitable to you and premium is within your budget then go ahead with PNB. Term of plan should be up to your earning age.

  44. Dear Basavaraj ji ,

    Namankara ,

    Sir , I am a 53 yr old working in pvt.sector & getting gross amount rs. 7 lacs per annum (3.5 lacs salary & 3.5 lacs as travelling expenses ). Can you suggest me which company’s basic term plan I must purchase which must be most reliable & @ lowest price tag..

  45. Kudos to your effort guys:) I need some help.

    I bought a term plan from HDFC(Sum assured 1 cr), first they did not contact me for any medical and all when i started telling them to return my money, they are saying we will see medical is needed or not in my case.
    Question is
    1) if the company is saying we do not need medical how should I force them to do it?
    2) still if they are not doing it how should i get a proof from them that they asked me its not needed.
    3) I have declared my habits (Smoking and drinking) also my family history very well, do you think is there any thing else i should tell them?(This question comes because they are not doing the medical)
    4) I missed to inform them one detail of my family history while filling the online form, will they consider it now if I send them the same in a mail?

  46. Hi Basavaraj,

    I am 28years old , married & have a 1 year old kid , To secure his future I have opted IMaximize child plan by aegon religare . I am not aware that much & as the agent suggested me it better then any other plan I have chosen this . yesterday I have seen the claim settlement ratio for last two year . Please suggest as just one month back I have bought the policy , should I continue or withdraw the same . Please suggest about the company future & plan performance also.


    1. Rakesh-Forget about claim settlement, the product which bought by you is combination of Insurance+Investment (which are not good for investment). Hence, you can cancel the policy within free look in period (within 15 days of receiving the policy document). Go ahead and cancel and at the same time, buy term insurance to cover your life risk immediately.

      1. Thanks Basavara for the suggestion , I have proceeded with the same , can you please suggest which term insurance plan will be good .

      2. Sir ji

        i want to buy a health insurance. only think i need is claim settlement if somethng happens (apart from death) in any hospital in india. i have a lic plan and a term plan also. so i have life insurance but now searching for a health plan.

  47. Hi Basavaraj,

    Myself Umesh, I am planning to take family health policy from Star health insurance. The guy explained me about policy i.e. 7,200 for 2 Adult and one child coverage 6 Lac and one more he told 9200 i.e for 10 lac.

    Can i go with first one or 2nd one. Star health insurance is good one?

    Let me know ASAP.


  48. Hi Basu,

    I have a query about eligibility for buying life insurance product. At the outset, I would like to highlight that I have extensively studied websites of various insurance providers and IRDA before writing this post as I could not find answer to my doubt on online resources of any insurance company or IRDA. I have also approached life insurance companies for clarification, but they come up with a standard answer which is not applicable to my resident/citizenship status.

    I am a foreign national and OCI. I am currently living in India thus I am a resident individual. Eligibility conditions for Life Insurance policies cover only 3 conditions: Indian Citizens, NRIs and OCIs living overseas. For example LIC website says” “Welcome to NRI Centre. We have made an attempt here to furnish important features applicable to Non-Resident Indians (NRI) and People of Indian Origin having foreign nationality and residing in foreign countries. (PIO)”.

    However I fall in the fourth category: I am an OCI living in India. Could you please share your knowledge on eligibility of OCIs living in India as far as getting a life insurance policy is concerned?

      1. Dear Basavaraj,

        I am an OCI. When i’ve approached HDFC Life for a term policy, the online agent said they don’t offer term policies to OCIs. My suspicion is, the agent did not know the rules and simply shunned me.

        I have all the documents like PAN, Aadhaar, etc. Should i just apply with those and not specifically mention my OCI status? One concern is that, though i am able to get the policy now, if at a future date my family were to raise a claim, the claim may be rejected because of my OCI status.

        Appreciate your guidance.


  49. Hello

    Please advise a reliable health care insurer for coverage of me, wife and 2 kids . Age 46,W-44,Son-16,Daughter-12

    I have a policy from New India but premium is now 20000 approx for coverage of self,spouse 4.75L, children-4 .

    I am finding this premium (20000) to high. and my policy is from 2004 with no claim anytime before.

    Pl also advise if family Floater will be cheaper and if it is possible to migrate the policy to another co (if a better option exists) . The policy renewal is due on 27-Aug-2015. I am ready to reduce the sum Assured to 2 L .
    Daniel Mascarenhas

  50. Dear Basu,
    I am a Govt. Servant in Delhi and I am 53 years of age and I want to buy Term Plan. The following queries may please be clarify:-
    1. Is it right time to buy Term Plan for me for a period of 17 years at this stage?
    2. Pre Medical Facility are available in any Term Plan for consider sun assured.
    3.I will avail retirement benefits from the Govt. then Term Plan can be benefited to me at this stage.
    4.Kindly suggest any other Insurance Plan at this stage.

    1. Bisht-1) It always right time if you want to cover your risk. But restrict your insurance need up to your retirement start age.
      2) Term Insurance is Life Insurance but not Medical Insurance. Hence, no such facility available.
      3) Retirement benefit is different and term insurance is different. Why you are linking both?
      4) I suggest you a plan up to the age of 60 yrs only. Check the insurers who can offer you at this age.

  51. Hi All,
    I’m planing to buy a term plan from HDFC I have few questions about that.
    1) What kind of death will be covered? will they cove (Natural\Terrorist Attack\Accident\Illness)
    2) If death happens in 1st year your policy you will not get any claim.
    3) What if insured wants to go for organ donation and something happens in future because of that will the nominee get anything.
    4) Is it there responsibility to figure out what all the disease I have (Of course I will declare if I smoke or drink) there might be some hidden problem which i’m not aware of as of now but that may cause something in future.
    5) Why its important to tell them the history of our parents ? if its important to tell them should I mention every single detail about them?
    6) What if anything happened to my grandparent brother do i have to mention that also.?

    1. Kiran-1) Usually all term plans cover deaths like natural, accident or illness. Regarding some specific deaths, you have to check with particular company. 2) Forget in a first year, if death occurs the next day of proposal acceptance, then insurance company must settle the claim (provided the claim must be genuine).
      3) Yes.
      4) There are million reasons for death and each can be examined by the insurance company. It will be run on faith. Hence, you must disclose the facts properly.
      5) History of parents required to judge your health.
      6) What happen to mean?

      1. First for all big thanks to your patience 🙂

        Means I should consider my immediate blood relatives like my Father Mother Grand Parents siblings..
        What about if some illness was there for some of your Grand parents siblings do we need to mention that as well?

        Even some times your parents had some illness long back(Before your birth) and now its cured should we mention that as well?

        Sounds strange but insurance companies have lot of reason to reject your claim 🙂

        1. Kiran-Grand parents not at all required. No need to mention the diseases which are not in repetitive or will be with them for life (like diabetic, BP or heart issues). Yes, they have millions of reasons to reject. Hence, you have to be cautious.

  52. Please provide suggestions actually i have taken the LIC jeevan anand policy (lack of awarness)with my name(sum assured 15 lacks with half yearly premium 288841) my spouse name (8 lacks sum assured with premium of around 23k) And i have taken home loan recently also with interest rates(9.95%) .But i came to know that lic providing on that final maturity with 5.5 % interest . Because of that i want paid off those policies .and i want to take one term policy instead of those .Other than those policies insurance coverage 22 lacks is there. My annual package is 9 lacks and I want invest where i will get more than my home loan interest

    1. Chennaiah-You are asking me about your insurance doubts and at the same time asking me the investment idea which can give you the more return than home loan. Please clarify your doubt once again.

      1. Thanks for your replay. Yes your correct.If paid off those policies is benefit able(old jeevan anad) for me or not.Please give on suggestions Good investment and more than home loan interest.I am planning to take hdfc pure term insurance policy 1cr.Is it GOOD?

          1. Thanks for your reply,
            Please let me know old jeevan anad paid off T&C value if you know.
            I am planning to invest on mutual funds i have done some analysis on this i observed the earned rate is around 24%.Is it true ?.While exiting mutual funds how much tax they will charge .Finally how much we will get final . I am not looking for tax saving purpose .I have planning to invest some amount short term and some amount on long term.Funds india suggested following equity plans Mirae Asset India Opportunities Fund-Reg(G)

            Franklin India High Growth Cos Fund(G)

            UTI Opportunities Fund(G)

            SBI Magnum MidCap Fund-Reg(G)

            .As per my knowledge equity are very risk.Shall i go for some amount on equity and some amount on mutual funds .Please suggest me Good mutual funds plan and equity plans

            1. Chennaiah-paid off terms and conditions means? Which analysis showed you 24% returns? Can you share the same? When you invest in equity funds then it is tax-free after a year of holding. Equity is risk when you not understand what you are doing and invest for short term goals. What do you mean by some amount on equity and some on mutual funds? I think you totally misunderstood the basics. First read what are mutual funds and their types. Then we discuss further.

  53. Hi Basavaraj,

    I am 29 years. My wife is 28 years. We both want to go for a term insurance of 75 Lakhs for 35 years. I researched a bit and narrowed down to MaxLife and Kotak Life insurance plans, as they have good CSR, Solvency ratio and low premiums. Could you please suggest which one of these two will be the best? And also let me know if both of us should go for same insurer or different ones?


  54. I am planing to buy HDFC CTP I have one doubt..what if i’m planing to stay abroad for 10-15 years than come back…meanwhile if anything happens there in such circumstances will my family will get claim?

      1. What channel i have to use to inform them? is it through email or in writing? will i get any acknowledgement for that?

  55. I have a policies if lic jeevan anand and money back policies from the same now for a sum assured fir 25laks and 15laks now I want a term policy for sum assured 1 crore which policy is good is hdfc sampoorna samvurdhi plus is good or there isany other policy… let me know

  56. sir
    please help me about term plans
    i m 23 years old and want to take max life cover
    i want to go with aegon religare 75 lac. insurance @6048 per annum.
    is this ok or i will try to another company due to csr,
    also is term plan covers me to 75 yrs but i will retire at 60 .what will happen then to the premiums.
    is it necessary to be salaried after retirement ,im confused plz help.

      1. SIR

  57. I am planning to take HDFC Click 2 protect plus extra life option term plan. Sum Assured 50 lakh. term 30 years. including accidental death and permanent disability rider,total preminum is Rs 9513/- annually. My DOB is 15th Aug 1987. Is it a good plan and decision ?
    Do i need to take any other accidental insurance ? Please suggest.
    If necessary then please suggest few plan ?

      1. Thanks Basavaraj.

        Out of HDFC,ICICI,Kotak and Max, which one should be preferred for pure online term plan?

  58. I have purchased ageon religare iterm plan with critical illness rider in december 2014 under non-smoker or non drinker category.
    As of now I am non smoker and non drinker. but nobady knows about future, if my good habits turns into bad habits means I starts drinking or smoking . what would be effect of this in my term plan?

  59. Dear Bhavesh,

    Pls suggest that i should take my health policy through on line portal like policybazar or coverfox or directly through company. Which way is better and why ?

    Does on line portal are actually do after sale service and really helpful in claim settlements , documentation and all.

    1. Gaurav-In my view better to go through an advice. Because, in health insurance it is the agent’s presence during the emergencies required most than online. Hence, avoid the online portals.

      1. What if the Agent is no more ? , like in a matter of 20 + years how we are sure that the agent will be still there in service ?

  60. hi, pls suggest ur view on tata aia life insurance maha raksha supreme term insurance, i like to go off line this term insurance bcoz
    1. they cover upto 80 years and premium is very less comparing to others
    2. 50% sum assured they are giving if diagnosed critical illness
    3. tata group 75% share
    ur suggestion wl very helpful for me. thanks in advance

  61. Dear Basavaraj,

    I’m 34 year old non-smoker and planning to take a term insurance for myself and wife(she is working).I have got an option as ‘iSpouse’ policy from Aegon Religare which will cover both as a family.In such case,will both of us get tax benefits on premium paid(sharing basis) or only one can get?

      1. Thanks for your response and sorry to bother you much on same…!

        Since it is single premium for both’s cover,it would be on either name,right? In such case how can we split and submit the proof?

  62. please advice
    In term plans whether one should go for longest term available or upto a certain age.

      1. Hi Sir

        One question currently i’m 30(Retirement is 60) i’m planing to buy HDFC CTP for a term of 40 years now i have 2 questions.
        1) Why it is not advisable to take a term plan after our retirement your family may need it after your retirement as well?
        2) After 60 years what documents they need for the plan? A non-pensioner will not be having an form 16 or salary slip or any source of income will they count such situation as well they might say a person is was not working so why to settle the claim?

        1. Amit-If you are not creating enough retirement corpus then you not retire. You are claiming that you retire at 60 years of age. In your own question of second, you mentioned that you will not have any source of income. Hence, insurance requirement stop when the person stops earning. Also, with retirmeent corpus in hand, why you need insurance? Also, what will be the value of current term insurance when you are at 60 years of age? When issue the policy then they only look for death happened or not. They not look for your income even after the next year of issuing a policy.

  63. Dear Sir,

    I want to take term plan and found edelweiss very interesting but its claim ratio is far too low. So should i go with edelweiss tokyo term plan or not?

  64. Hello Basavji, I have gone thru questions by diff people and your advise to them. Its very good initiative by you to spread knowledge. I have couple of questions. I am 36 yrs old male. 1) I have a term plan from Aegon Religare which I bought in June last year for 50 lacs. I want to buy additional term plan for Rs. 50 lacs. Kindly advise is it advisable to buy it from other insurer. 2) I had a health check up recently on 3rd July and found for the first time that I am hypertensive. I am on medication now. While buying new policy, I will definitely declare this; however, is it obligatory to inform the existing insurer. Kindly advise. Thank you so much in advance.

    1. Navpritsingh-It is purely your comfort either to go with existing insurer or new one. If you feel no issues with Aegon then why to go for new? No need to inform about hypertension to the existing insurer. However, it is a must to inform while buying new insurance.

  65. I am planning to buy a term plan. I have one doubt that whether I should go for 2 policies from 2 different companies (50 Lacs each) or 1 crore from a single company. This doubt comes into my mind because if at the time of claim if an insurence company has to settle an amount of 50 lac then then chances of settlement are more than settling 1 crore.

    Is my doubt correct or should I go for directly 1 crore.

    1. Go with one for the following reason.
      1. For splitting you will end up paying a higher premium.
      2. 1 extra bill/payment to remember
      3. If you have not hidden any information and your proposal is accepted by the insurance company then they there is no reason they should reject your claim.

      Having said that, always go for the “Most Trusted Brand ” insurance provider as the policy will benefit the nominees in your absence. Dont think about paying a little extra if it can give you peace of mind.

  66. Hi,
    My name is abhishek. Iam 30 year 4 month old ,non smoker . i want to buy term insurance for 35 years for amount 1cr. suggest me one good company for which i should go for with moderate premium.
    I have checked and confused as for above insurance HDFC quotes 11900, ICICI 12500,agon 9000 etc.

    Please suggest ASAP.

    Thanks in advance

  67. Sir,
    I am about to submit my term insurance policy through HDFC click to protect plan, But Before that I just want to know one thing, that why there is so much diffrences in premium value, between the various Insurance comapnies, for the same sum assured and same tenure , as No insurance company can reject the claim unless and untill the details which were provided in policy form are incorrect and faulse.
    so why need pay more if you can purchase the policy of same sum assured value at cheapest premium value, does it only mean the company charging extra premium from u as brand name.

  68. Hi Sir,

    I am 29 year old, married and planning to take a term plan of 1 CR for 40 year (as it will cover my max age and not only till I am working). There are few questions
    1) Is it feasible to split it into two HDFC and Kotak for 50L each (so that atleast one settlement is faster )
    2) My decision to take term plan for 40 year is right or not?
    3) I have not taken any retirement plan can you suggest some
    4) I am only investing in 1L PPF and 2000 in SIP, I still have arround 10000 P.m to invest, can you suggest some plans which will help me

  69. Dear Sir,

    Thanks for the information.

    I am of 27 years a non smoker. I want to take a term plan of 1crore for 35 to 40 years.

    Kindly suggest whether I should take it from “Aviva” or “Aegon”! Which one will be good? As the CSR is going down year by year I am confused on this. kindly suggest.

    Or else suggest whether I should go for any of the top 5 Insurance companies as you mentioned in order.


  70. Hi, I am 37 years old. now i want to buy term insurance. i am occasionally smoker in month 2-5 cig. my question is that, do i need to show smoker there?


  71. Hi,

    I am 33 year, married man with two kids. I have a 12 lakh LIC jeevan anand policy. Since its insufficient cover, i am planning to go for a term plan of 1 crore. I am thinking about HDFC click to protect.

    I am a social drinker but don’t smoke. Do you have any further suggestion/ feedback.
    Can you recommend/ suggest any good plans?


  72. Hi Basavaraj,

    I thank you much for running this post and providing wonderful suggestions on insurance to all with much clarity.
    I have few queries, can you please help clarify?
    I have taken a 1 Cr term insurance policy from Aviva in Sep 2011. As the claim settlement ratio is falling y-o-y for Aviva I now feel worried. Should I look out for a better insurer although the premium will be higher?
    Over years as the the liabilities are increasing and maintaining life style is becoming costly, thinking to take another term policy. So is it ok to have multiple policies from multiple insurers?
    In one of your posts, you talked “Stick to one. No logic in splitting. Who knows later on all insurers come up with an idea of sharing claims info to one another??”
    Even if the insurers share the info will it be a problem if one has disclosed everything correct while applying for the policy?
    Also as I am planning to buy one more policy do I need to inform Aviva about the new policy if it is issued?

    Thanks in advance.

    1. NC-If you personally don’t have any issues with Aviva, then I don’t think it is worrying part. Yes, you can opt multiple policies from multiple insurers. But do remember to mention the existing all policies while buying new one. If you are correct then I don’t think anyone can forcibly reject your claim. You no need to inform to Aviva about the new policy buying.

  73. Nice to see u to help the people.Pl suggest i have applied the HDFC life click to protect for cover of Rs 1cr for premium amount Rs 12698 for 40 years.HDFC had taken my medical test. hdfc intimate me that there is Elevated Liver Enzymes diagoned during medical check up,Now they charge additional premium charge rs 6949 apart from Rs 12698.HDFC agent says that if i dont want to pay incremental in premium then they either reduce the term i.e 25 to 30 years or withdraw your proposal.

    Please share your opinion regarding this matter.

    1. Teji-Yes, if you are unable to pay the higher premium then they may reduce the sum assured. If you are comfortable and know that you are suffering from such disease then better you continue by paying a higher premium. Otherwise, you can check out with insurers.

  74. Hi Basavraj,

    I have taken a term insurance for Rs 1 crore from HDFC.Will it be ok to stick to it or should I switch to LIC

  75. Hi Basavaraj,

    I am in a confusing regarding the tern insurance.
    1. I am 31 years old & smokes 3 to 4 cigarates per day. I have a income around 8 lpa. I want to go for 75 lakhs Term insurance. Which one is more preferable LIC or ICICI or HDFC?
    2. Before giving the Term insurance policy, whether all the companies will ask for medical test? If so do they share the details after the medical test? Becaue they should not alter the mediacl test reports after few years without my consent.
    3. HDFC guys are calling me everyday & they are telling that compared to LIC & ICICI they have more features like income plus option & so on.

    Please let me know which one is more suitable for me.

    1. Sanj-1) All the said companies are good. 2) Yes, usually all companies suggest to go for medical test. Also, it depends on company to share the information with you. What they get from altering your reports? In fact they loose the business right? 3) Don’t go for additional features, instead buy a simple term plan.

  76. Hi Basavaraj,

    My monthly income is Rs30000/-………..I am 28 years old & married from kolkata. I have floating Rs7lakh medical insurance .I have a 50Lakh term plan from MAX LIFE for 30 years from the last moth as a nominee of my wife.I have Rs10,000 of SIP in few funds including Rs 4000 in ELSS fund for tax saving.And used to save Rs 50000/ year for in PPF.
    So now my question is what extra I have to do with in my boundary to achieve financial strength.

  77. Hi Basavaraj,

    I am 32, I am planning to got for 1 Cr term plan by breaking them in 2 one 50L in LIC and other 50in Premium Back TERM Insurance plans for better control on insurance claim and keeping overall annual premium in mind. looking at the report I felt that LIC settles claims better than any other insurance provider. Of course the premium is high compared to other policy providers. Every insurance company would scrutinise to polices and claims to make money , but I felt there is no point in taking insurance from companies who do 10 out of 100 rejections compared with 1 out of 100 rejections. Id rather prefer to be in a member of 1 than 10. If my thought is wrong in it or the way plan please suggest me the best options
    It would be grateful if you could suggestion on companies who provide premium back term plans.


    1. Kishore-First myth-This claim ratio not ONLY for Term Insurance, but it also includes endowment and ULIPs. Hence, don’t rely too much on this data. Second myth-Splitting of insurance will not serve any purpose. Third myth-Unable to understand how you be in control by opting to separate insurance and one by premium back.

      1. Hi Basavaraj,

        I am planning FDs and ULPs/mutual funds as my additional savings with other companies. Term plan is purely for unexpected risk coverage and a reliable policy provider that can offer prompt claim in case of unexpected. purpose of splitting is balancing of funds with High premium term plan and mid price premium back term plan that offers a confidence in claims considering their past track records. for Ex: (HPTP)10000+(PBTP)15000 = 25000 rather than spending on all 20000(HPTP) on one insurance and relying on one. more over on maturity we can get the premiums of PBTP. I am working more on probability of gaining benefit by minimising risk a win win situation. so I am requesting your input on best premium back term plans.

        1. Kishore-May I know the value (considering the inflation) of the total premium you receive back if you survive? Will this be a great benefit from this term plan? What if second company informs to first one about it’s rejection? Whether the first company accept it or not? Above all it is your turn to decide.

  78. Basunivesh, Just to add some more points is one should consider customer support, consistent high claim settlement ratio and premiums as part of choosing best term insurance plans…

    1. Suresh-Sadly we will come to know about customer support only when we not live. However, we can take the reviews of existing claim settled. But it is hard to get such reviews from anyone. Regarding claim settlement ratio, the data not provide you the clear picture of claims settled related to term insurance. Hence, that too a big drawback (If we believe on claim settlement ratio and try to buy term insurance).

  79. Accident Death Claim and sum assured Claim is applicable in following case or not

    1. Working in my company and any mishap happen and death occur.

    2. In official tour and some mishap happen and death occur.

    3. In holiday in hill station and accident occur while traveling like road or air accident and death occur.

    4. Working in hilly area and earthquake or avalanche or flood occur and death occur.

    5. Critical illness diagnosed after one year and death occur.

    6. Normal road accident in my hometown outside office are and death occur.

    Kindly tell me detail about both the claim is applicable or not

    1. Sukesh-Except the point No.4, rest of the points are very much eligible to get the claim under Accidental as well as the Sum Assured available in a plan. You have to check plan features with an individual insurer regarding the coverage of natural calamity.

  80. Hi Sir

    I want to take a term plan for 50L, I was 33 years old, non smoker, I would like to take Max life or Aegon refer best one from both of these

    Can i take any riders?


          1. Sir, Wht is the best duration.

            In Aegon it is coming as 27 default but in Max it is not there

            Specify best duration


    1. I want to buy a term plan for 30 or 35 yrs. But not that much idea which company i should buy. I am non smoker and please suggest me any particular company. And can i take two term plans of different company of 50 Laks.
      Waiting your suggestion.


  81. Dear Mr Basavaraj,
    I am a defense officer. I was planning to buy HDFC term insurance, before making payment, i got a call from there service representative. I asked if the term insurance and Accidental Death benefit is applicable to those in defense services?

    He said, the policy is not applicable if something happens to insured persons while on duty !!! however, it is applicable if you are not on duty!

    They could not explain what that exactly meant.

    Is it true?


  82. Hello Sir,
    I am looking for Good Term plan insurance. Currently i don’t have any term Insurance. I have LIC Jeevan Saral insurance.
    I am 33yrs old and have 15lac p.a. package. I am occasional smoker. Looking for 75Lac plan.

    Please guide me on below queries:
    1. Which plan to take?
    2. what will be Premium?
    3. How plan is differ for Smoker and non-smoker.

    Many thanks for above helpful article.

  83. Dear Sir,

    I have purchased Agone religare term plan for 1 Cr. around 3 years back with Accidental rider (40 lacs) and Critical illness rider. (Year of birth is 1987)

    I Am non smoker and provided complete medical history.

    as of now I am confused whether I shall buy another term plan from any of the reputed players like HDFC, ICICI or LIC as some of my friends suggested that don’t completely rely on Agon religare.

    Please suggest whether I shall continue with Agone religare or I should buy second term plan?

    is it allowed to take second term plan in India from different player?

  84. I have recently taken Reliance online term plan of 1 Cr. I wanted to whether it is a correct decision or i should have gone with other company term insurance plan.
    Please reply.

      1. I am a single son having two sisters. I am married. I don’t have kid right now. Main purpose of taking Reliance 1 Cr term insurance plan is sister’s education, marriage and parent’s security. After education and marriage of sister’s purpose of this plan may be changed. Reliance 1 Cr term insurance plan will be changed afterwards.

        Whether it is advisable for me to have one more 1 Cr plan of HDFC term insurance click to protect plus for my wife and kid future security. If yes, then for how many years i should take it. Kindly suggest as per my situation.

        1. Alok-If you want to split your insurance requirement based on financial responsibilities you have, then it is great. Ideal insurance coverage will be 15-20 times of yearly income+Loan.

  85. Dear Basavaraj
    Thanks for keeping people informed on such important issue.!

    I have been an occasional smoker (not more than 1 cigarette a day!). I intend to take a term cover of 1 crore. My questions are as follows:
    1. Would I be treated as smoker or non-smoker?
    2. If my insurance cover is taken as a non-smoker after blood tests. Can the insurance company reject claim in case of death because of smoking.
    3. Is the claim accepted in case of suicide or death in case of drunk driving?

    I know these questions sound insane, but future is very uncertain!. Hope to receive a positive reply from you.


    1. Ankit- 1) Better you treat yourself as smoker. 2) It depends on an individual case. So, I can’t say. 3) Suicide clause states that usually suicide occurs within a year then claim not settled. However, if it is more than a year, then no issues. Accident while driving issue be depend on individual insurance company product. Check product details before buying.

  86. Hello Sir….just went through the Q&A on term insurance here….its an informative platform…thnx for good work…..
    I am 35 years earning 7 lakhs p.a.I am an occasional smoker and want an insurance for 75 lakhs.One of my knowing agent who is in Kotak insurance is assuring me not to smoke for ten days (I take 1 ciggarette in a day or 2 days but I am willing to quit) and he will look for this concern as a non-smoker category.Can I trust on him or should I go for another Insurance co. as he may be doing so for his target.Kindly advice.I have already taken up a policy from SBI Life in 2008 with 11 lakh+5% increase in Sum assured annually. Also clarify that I got the perception or you can say the opinion after taking some agents of different ins. cos. that claim of term insurance via online is difficult to get and is setteled it took months time period.Hope you will appreciate the bombardment of my queries

    1. Ravinder-Now let us check your agent’s loyalty. He is ready to cheat the company to which he works. What guarantee in future that in your absent he run away and claim get reject? He may help you in getting term insurance by a false claim. He get commission and run away with a smile. But it is your life that is more risk. Because you bought it with false declaration. Hence, don’t believe those agents who can go to any extent for the sake of business.
      It is one more false claim that online policies will not be settled easily. Let us believe for a moment on this. Will these insurance agents be in same profession up to your death and will they provide the helping hand to your family in case of claim settlement? They spread such false suggestions only to turn you towards offline modes. Once they sell then that’s it.

  87. Sir,

    In HDFS Life click 2 protect, the illustrative Benefits on Death is as follows:

    Higher Of:
    * 10 times the Annualized premium or
    * 105% of all premiums paid as on date of death or
    * Sum Assured

    does it mean that if i pay premium, let say 25000 per year and after 2 years (premium paid 5000/-) if misshapen occurred then claim would be the 10 times of premium i.e 50000 x 10= 500000/- only??

    Please guide and also tell is there any term plan which pay sumassured even ininitially years of mishappening of policy holder.

    1. Vivekanand-I think you missed the word HIGHER OF. So usually in initial years sum assured will be at the higher end of all the three conditions they showed. Hence, it is not not Rs.5,00,000 but the sum assured you opted.

      1. Thanks, I really missed that…higher. Nice information for all those who are planning for Term Plan.

  88. Hi Basu,
    I found all your post and comments very informative. Recently I was casually discussing with my friends about claims when it comes to term insurance. One of my friend told that private insurance companies have many ways to reject your claim and they will try this but LIC will no do that (hard to believe such statement but just want to hear from community what they say on it). They also told that if you buy from your home town branch (like LIC and you know the staff of that branch), it would be more easy to get the claim approved faster (is it true?). One more point in claim rejection side, if a person is not smoker but later started smoking, claim may be rejected (is it true?).

    I know and understand that term insurance buyer must declare all known things while buying the policy but can claim be rejected even if claim is valid.


    1. Preeti-First makes sure your friends get educated about the claim settlement ratio. Because, whatever the IRDA disclose about claim settlement includes all type of plans like term insurance, endowment plans or ULIPs. In such a situation, how your friends can arrive at a decision to believe on this data itself? It is an indicator to buy insurance, but not a MAIN indicator to select a company. It is wrong to say that LIC accept all claims with blindfolded eyes. If that was the case then they may not be in profit. All are here to run their business. Hence, including LIC all insurers look for reasons to reject your claim. Therefore, it your duty to disclose all facts properly and let them give little space for rejection.

      It is one more dumb assumption that buying an insurance in hometown LIC branch will not create a problem for you. Whether the employee of LIC have any specific power or rules to approve the proposal if the insured is staying in nearby area? What a false assumption.

      There are millions of reasons for a person’s death and hence there are millions of reasons to reject the claim. Hence make sure all is perfect at your end is the only solution.

  89. This is Best Guide but how an individual can decide on his own?Best company for term plan. Survivors will have to fight.
    Please give clear opinions on LIC ETC..

  90. Hi Mr Basavaraj,

    This is a great forum with good answers from your end. I have a couple of questions:

    1.) I have heard is that when it comes to term insurance then LIC is good as the stats shows it and moreover it being a govt, organization. When it comes to reimbursement, the private players get into a lot of fix and it becomes difficult for a person to claim money as they bring in lots of ifs and buts there. They say its better to apply for loan from private players but for better after sale service (especially from term plan prospective), semi govt. organizations are best.
    2.) Max pure term plan with accidental rider looks good as they say that they will give 100% insured amount on accidental death and 39 lakhs (for 1 CR INS. amount) if a person gets disabled because of accident. This is the only term plan that gives this offer. Is it good? or as you are suggesting above that only pure term plan with no riders is what should be taken.

    1. Sanjeet-1) What better data LIC providing? It’s main claim settlement are lower sum assured policies. Also, as of now such separate data for term insruance settlement not available. In such a situation, it is hard to believe that LIC is best. 2) I prefer separate accidental insurance than clubbing with life insurance.

      1. Thanks for the reply Basavaraj.
        But is it true that LIC easily releases the money without any hassles for the survivors whereas the private players makes it tough to let the money go?
        Or the things are more or less the same with any company.

  91. Hi
    Am 40 and applied for Aviva I Life online term plan for 50L by paying premium of 7965, Now after the medical reports they have increased my premium to 16k almost 100% because of diabetic condition. I have declared the same in the proposal form too. They have shared me the medical report everything is normal as per the medical report reference range except for diabetic which was showing as fair control. Is this can be the reason for 100% increase of premium. On what basis they calculate this percentage?

    I do have another offline term plan from aviva for 50L which was done on 2011, was issued at normal rates cos that time I did not have diabetic.

    I think all the insurance companies charges the extra loading for diabetic or any other health condition it can be even more than 100% or 50 %, 75% etc depends on insurance co. I think in my case there is no second opinion going for another insurance co and complete the formalities cos don’t know how much they charge.

    In my opinion its better to settle with Aviva by paying extra premium cos as the age increases the premium will also increase. And also one more advantage will be both the plans which I hold now offline(50L) which was purchased in 2011 and online plan (50L)which is under proposal now will be with the same insurer in case of claim it can be settled without any hassle cos both the plans are with same insurer and for both the plans medical tests are conducted.

    What’s your though about this case am I correct in my judgement pls give your opinion?

  92. Hi sir

    I am 36yrs non smoker male my annual inc is 13.5 lacs planning to go for term insurance of 50 lacs for 30yrs term. As per the info recd from web site of Aegon Religare i came to know they offers pay back of premium at the end of policy it a reliable or should i go for hdfc term plan.

    Kindly advice

  93. Dear Basu,

    Excellent Blog … Keep it up !

    I have taken a term plan HDFC Click to Protect last year for a term of 40 years .. After reading many of your posts, i get a feeling term plan should only be taken till age of retirement.. Any specific reasons … I have taken that with a view that, If something happens to me at 65 years .. and my kids not taking care of us then .. this money would be of help to her … I have disclosed all the facts properly and after the medical tests done completely .. the policy was issued …. Is there any chance of Sum Assured not being given completely to nominee…. Plz suggest

    Also, now iam planning to buy term plan for around 1.25 Cr for my wife as she has started earning now …Sales people are behind to take Edelweiss Tokyo life … On the discussions they say that since the company is new thats why CSR is low .. and CSR was low for ICICI, HDFC etc when they started … but as a services you would get all more from ETL…. Please suggest the Best company to take the Term Plan .. and wether i should take it for 30 yrs or 40 yrs … ?

    1. Vinay-Idially insurance is required to someone who is earning. So your insurance requirement stops at retirement start. Also what will be the value of the sum assured you opted after 40 years? It may be your wife’s one year expenses 🙂 There are many reasons to reject the claim. You and me can’t predict it. But only hope for the best.
      Stick to old players like ICICI, HDFC or LIC.

  94. Sir,

    I am looking for Term plan to me & my wife (housewife).

    Bharti Axa & Aegon Religare are offering plan for housewifes.

    Kindly suggest me right company to go ahead.


  95. Hi,

    I’m 37 yr old, and want to purchase a term plan, I have some doubts please clear them:

    a) How many years a term plan hold by a person?
    b) Is it not refundable? If not, how it is a investment?
    c) Why a term plan not famous in common man if a person family get a big amount on his death?
    d) How much amount term plan I purchase with a salary 25000/month

    Mukesh Pokhriyal

    1. Mukesh-1) Ideally it should be up to your start of retirement age (or end of working age).
      2) It is not refundable (in case you survive till the term of policy period). It is not an investment but a protection plan.
      3) It is not famous, because lack of awareness among people. Also, insurance companies (especially LIC) not making it as it’s flagship product. Agent’s also not concentrating on it, because they earn less than selling INSURANCE+INVESTMENT products.
      4) Idially cover should be around 15 to 20 times of your yearly income+Existing Loan amount (A rough idea).

  96. Hi,

    I am evaluationg a term life plan for myself (30 year non smoker) with amount 50 lacs and period 30 years

    I am confused between HDFC Click2 protect at Rs. 6000 per annum for 50 lacs vs tata AIA i trop at Rs. 9500 per annum for 50 lacs but with entire cash back on survival of the 30 year period.

    I wanted your view to whether or not I should be going for TATA AIA given that its tempting to know that I will receive entire premium back at just Rs. 3500 per annum extra.

    Thanks in anticipation of your help.


    1. Malay-I suggest you to opt HDFC. Just Rs.3,500 per year? How much it cost for 30 years? They are not providing any option at free of cost. You have to pay for that. Hence, suggest to go for plain plan.

      1. Hi Basavaraj,

        I am not clear to your comment. The Rs. 3500 extra which tata AIA is charging is not a cost as the entire money (Rs. 9500) would be refunded on survival with the same coverage as HDFC. Then isnt it fair to assume that the Rs. 6000 which HDFC is charging is the ‘extra cost’ as thats a sunk cost for the term coverage.

        Unless you dont recpmend TATA AIA as a service provider.

        Please clarify.


  97. for the information of all concerned, the medical tests indicate smoking or tobacco for 3 years after completely quitting. Please do not write Non_Smoker if you have left smoking within 3 years.
    It happened to many of my clients recently. You can not take the Insurance Company for a ride.

  98. Hi, i am planning to take a term insurance for 30 years. I haven’t smoked since 1.5 year. Do I qualify as a non-smoker? Also, I am confused in choosing between HDFC, SBI Life and Max Life. since it’s a long period policy, confused as to which will be best.

  99. HI,

    I have taken 50,00,000 lacks polciy from HDFC click 2 protect but at the time of policy taken, agent not asked me about any declaration of my disease and on the basis HDFC has issued me policy and as per policy they have declared that i have no disease, but after the study i have asked that I have High Blood pressure as well as Spondilites and please add these two in my policy. After so many reminder they have just send me mail that we have update your policy. But i dont know whether they have updated or not.
    Please suggest.


    1. Ajay-It is wrong to believe that if agent not asked means company not asked. Company provides such column in proposal form regarding this. I think your agent not asked and filled it as your health is normal. Hence it is fault of agent but not company. It is purely a effect of blindly signing the forms while buying anything. Anyhow, you brought to the notice of HDFC about this. Retain the copy of their reply for your future reference.

  100. Hi Basu,
    Currently I am holding two insurance plans of 50 lakh each. One from ICICI with premium around Rs 9200 and other from Aviva with premium around Rs7500. Is it better to increase limit in one policy instead of continuing two policies. If yes, which one will be best option as there is around during Rs7500 difference in premium.

    1. Shirish-When you already owning it then I don’t think it is better to discontinue one and increase in another. Instead, Insurance need to analyzed at least once in a 5 yrs. Hence during your next review and buying new insurance to top up the existing one, then at that time you can go with a company which you feel comfortable and cheap.

  101. Dear Sir.

    Greeting from My side.

    I have just bought a term insurance plan of Rs. 1 Crore from HDFC. My current age is about 37 years and my current CTC is about 13 Lakh. They have issued the policy on 21st April 2015. The Policy is for 30 years. Pls suggest whether this amount is sufficient and whether my family will get the claim in the first year in case any misshap occur (no suicide ). This is just for information please whether risk period has been started or it will start after one year of the policy.

  102. Hi Nice blog on term plans. I have a term plan from aviva since 5 yrs. In my opinion the CSR does not play an important role while selecting the insurer, this keeps on changing yoy. All the insurance companies are governed by IRDA so the policy holder does not need to worry a lot, the only thing he needs to do is while doing the agreement with the insurance co, he needs to disclose all the details and facts asked in the proposal form with true consent, then no insurance company can repuidate his claim.

    The recent insurance amendment act 2015 also speaks more on protecting the policy holder from the insurance co.

    Is my opinion correct?

  103. I am having term Insurance from Bharti Axa but seeing here it’s claim settlement ratio is not good. Shall I switch to some other insurance like HDFC/ICICI or continue with Bharti AXA.

  104. Hi Basavaraj,
    I have LIC Jeevan aanand endowment policy of 20 yrs. of which 4 years completed i have invested aprox 1.20 Lacs till date. Now i come to know that its not good investment, should i surrender policy & invest elsewhere (to get more returns %, so that at the end of 20 yrs i will be in more profit. )e.g. PPF etc. or keep it continue as surrendering policy will attract penalty deduction. and wish to buy term policy from HDFC.

    1. Prashant-First check the surrender value as of today. Calculate yourself like how much loss you now inccure. Now calculate whether such loss can be compensated by investing somewhere else or not. Based on these, you can decide.

    2. Hi Prashanth, Insurance is never an investment option. It is always a protection to your family during your absence. It is also not advisable to invest all your savings at one place. So you can invest some part of your income in some other means. So my suggestion is not to surrender your policy but to continue that. More over jeevan anand is one of the finest policies from LIC with double payments (Let us hope for the best).

      One point I want to mention clearly to those who think insurance doesn’t give good return “Nominee gets a minimum of 10% to maximum of 33% approximately from LIC as per the policy holders age and term of the policy if the policy holder dies genuinely even on the same day of the policy buying. No other method gives like this”. Insurance is financial protection we can give to our beloved ones. Think over it.

      1. Kiran-When you say INSURANCE then why you recommending a product which combines INSURANCE+INVESTMENT? Don’t highlight the death claim, even term insruance offers best. Diversification is good, but for that sake one must not invest in a product which gives you savings account interest rate.

  105. Nice article to read and understand one’s life requirements individually instead of listening to agents voice….,

    After reading this blog, straight away go ahead and discontinue my LIC Jeevan Anand and Jeevan Surabhi(Money back policies) as they are about 4 years now. Pure term plan is required for my 32 years old + 10L compensation to protect my life instead of sticking to such endowment plans.

    I probably look out ICICI prudential life or HDFC click2save plans than any other. Am I right in stopping such LIC endowment plans (Even if I loss some amount say 40% of sum assured) at this point and switching to pure term plan for my rest of life as my family and 2 children’s are completely depended on me right now. If yes, then 25 years term plan is suffice for me or more required?


  106. Hi,

    I am 27 years old software engineer. I am not married yet. I was planning to buy a term plan of 1 crore rupees. I found Max Life Insurance premium less than HDFC and ICICI. Its claim ratio is also close to them. So should I go for it or have? what would you advise me?

  107. Dear sir, i would like to take 1cr term plan. Which one is best among LIC, ICICI, HDFC. I like HDFC because, in this monthly option is available for 15 years (After any unfortunate monthly payment).
    And i would like to go for monthly ecs clearance from my credit card.
    My age is 39 years. Initially i would like to go for 10 years term. Is it advisable of 10 years or 20 years.
    Sir please tell me your opinion.

    1. Krishna-The compenies mentioned by you are top. So just go ahead of your choice. Do remember that if you buy term insurance for 10 years and after 10th year if you try to buy new one then it cost you more than what it is today. Hence buy insruance now itself up to your retirement age. Buying today is cheaper to you than after 10th year.

  108. Hello Sir,

    I have 1 Question for buying befour term plan.

    I was smoker for 4 yrs. now i quit smoking from Last year. So my Qustion is what i mention on Term Plan Smoker or Non-Smoker, for the best on Claim Settelment.

  109. Dear Mr Basavaraj
    Appreciate you effort in helping other choosing insurance product.

    Current I have i-term plan which I tool during 2011 so it cost me only 6.5000 PM. Looking at your chart of claim settlement, I find my self bit nervous whether Aviva is good company. I understand LIC is more trustworthy but the premium is very high as compared to other products. Should I stick to Aviva or go for ICICI or HDFC?

      1. Thanks Mr Basavraj. However I have one additional query, if you may plz address. I am 39 year Old (non smoker male) with annual income of 7 Laksh. Looking at the rate of inflation, do you think 50,000 Lakh insurance is sufficient. if not, what do I do?

      2. Dear sir, i would like to go for 1cr term plan. Which one is best among LIC, ICICI, HDFC. I like HDFC because, in this monthly option is available for 15 years. And i would like to go for monthly ecs clearance from my credit card. Sir please tell me your opinion.

  110. I m 33 years of age planning to buy term insurance of 1cr but i have been diagnos with neck spondylosis(minor)
    should i disclose it to insurance company i dont have any medical documents for the same.
    and how is Kotak Preferred e-Term Plan as it give term for 40 years.

  111. Hello Sir,

    Can you tell me why you have put Exide life at the bottom of the table with red background of the % of claims paid. Even though Aegon Religare has less % of claim settled, you have coloured it yellow. Aviva with similar figures is also with yellow background. Any particular reason?
    Do you imply Exide Life is the worst insurance company? Please responds. 🙂

  112. Hello Mr. Basavaraj,

    I have a term policy from ICICI for 75 lacs at a premium of Rs 10,000 per annum.

    I have been suggested by few advisors to have 2 Term Insurances (just in case one insurer does not settle claims other might)

    Is this right advice?
    If right,
    is it possible to have 2 different term insurance policies from same ICICI?
    Would you advise to buy another term policy of the same value or a higher value (if the premium is lower compared to the one already I have)?

  113. sir,

    does personal accident policy comes under 80c or 80D or none?
    please also guide, is personal accident policy required if i already have term plan?


  114. Hi Sir,
    I am a govt servant and as on today I can invest around INR 70000 p.a..
    I am looking for investment options with life insurance.
    Could you please suggest me a best plan. (Being muslim I want to stay away from earnings based on interests.)

  115. Dear Sir,
    pls suggest which one is the best company in india for health insurance. i am confused b/w Apollo,icici lombard,hdfc,maxbupa,and star health. i am looking for myself and my parents.
    i am single(30) pareents(54&52). pls suggest..

  116. Sir,
    I am planning to buy a term insurance plan mu doubts are:
    HDFC life 50 lacs 35 yrs 6500 approx
    Reliance 70 lacs 35 yrs 5500 approx
    Hdfc is having good reputation and good settlement ratio, While reliance ratio showing in ur chart is very low ranked. In reliance website its showing 94.67% claims settlement ratio with 12-day claim guarantee. But not having a full faith on reliance. so little bit confused. Please suggest.

      1. Sir, i want to opt between these two Reliance (in 5500 premium i am getting 70 lacs of sum assured) while in HDFC (in 6500 premium i am getting only 50 lacs), reliance is cheap but matter is of reliability, Please suggest.




  118. Sir,

    Greetings..I am planning to buy 1cr term plan, I need to know if my claimant(wife) will recieve the entire sum assured or will it depend on my income at the time of death ??? bcoz I am planning to pay a one time premium for 10yrs…I need to know if my income is less than 3lacs per annum will that affect any settlement being reduced amount ???

  119. Hello sir,
    I have taken a term plan from aviva for which I have undergone medical tests. Can we get these medical reports ( for our knowledge) along with policy document?


      1. Sir,
        Company has not mentioned whether they will or wont disclose medical test reports… but what is wrong if policy holder wants to know the same (for his knowlege only)???
        Later on there should not be any cheating while settlement of claim because of medical reports….I feel it should be transperent.

        I have asked aviva to provide medical reports. If I am not getting what should I do??

  120. Dear Sir,
    i am 30 yrs old working with an automobile company in ncr. i have 3-4 question….. pls suggest..
    1. i am looking for health policy for me and my parents father(54) Mother (52) which company is best?
    2. i am already having the term plan with aviva but i am looking for the same for my parents but they are having only income source from they are elgible?
    3. what about critical illness plan? should i bought for my parents as they are going old and i am very serious about their health..
    4. which company is bestfor term plan?

    1. Prince-Forget about company at first. First understand what is requirement then search for plans. It is hard for me to list the companies which suites to you. If they have income proof then go ahead and buy only someone depends on them financially. Critical Illness required if your family have history of such diseases. Because these policies are complicated in nature and hard to get claim. You already have term plan then why you search for company? For parents first understand whether they need term insurance or not. Their age eligibility and premium affordability and then go ahead.

      1. i want to take term plan from 2 different companies i mean 50 lacs each from. i already have 50 lacs from aviva now i am confused b/w hdfc/sbi and icici so pls suggest which one is best..

          1. i believe aviva is having less settlement ratio as compare to icici,hdfc and sbi and other reson is both icici,hdfc and sbi is very reputed brand in india.

  121. Hi Basavaraj,

    Hope you are doing good.

    Could you please advice if there is any restriction on the maximum amount that can be claimed (by dependent) in case of the death of insured. For example: If the insured has multiple policies in different companies like LIC, SBI Life, HDFC (SL YoungStar Super II), Click2Protect (1 cr Term Plan), 20 lacs Accident benefit that came along with credit card.

    In the above example, will there be any restriction of the maximum amount that can be claimed or will the dependent get the entire amount across all the insurance policies which are ‘Active’.


      1. Dear Basav,

        As far as I know, there is restriction on the term plan Sum Assured. One can take roughly 20 times of the annual income including all the insurers. While taking Term plan, one has to disclose if he is having any plan from another insurer.

  122. Hello Sir,

    I was going through blog and its really interesting t see your posts. Thanks for your effort..

    I am planning to buy a term insurance for 1 Cr and I bit confused with Max Life and HDFC. Max life premium is around 7,900 and in HDFC life its around 11,500 both excluding tax. I can see HDFC claim settlement ratio is better than Max life but the difference is very small. Can you please help me in choosing the policy. Not sure why there is a huge difference in the Premium. Also as You suggested in your previous post I am going with only basic cover. But If I want to take a separate Accidental policy to get rider benefit, Which one you would suggest?

    Thanks in Advance,

    1. Sachin-Both are good. But if you feel HDFC cost more to you then go with Max Life. No need to worry. Buying accidental policy from general insurer is different process. First finish this process.

      1. Thanks a lot for your advice. I will go with Max Life and will get back to you again when I plan to but Accidental policy.


  123. Hi Basavaraj,
    I am planning to buy online term insurance of 1 cr. Please help me to select between HDFC Click2Protect Plus and Ageon Religare I Term insurance plan. When i am comparing claim settlement ratio HDFC is more than 94% where as Ageon religare is 81%.
    where as premium of Ageon Religare is much less than HDFC.

    Please advice which one is better.


  124. Hi Basu: I am looking for similar stats for Health Insurance or some stats that let me evaluate how Religare’s health insurance product and Apollo Munich fare. Do you have any tips to share for me please? Thanks

  125. Hi Basavaraj,

    In one of comments you said you are strictly against the suggestion from policybazzar.

    1. I have choosen my policy on my own still do u suggest or not to go with policy bazzar for taking a online policy.

    2. What are the pro ans cons of policybazzar?

    3. Is the premium going to go up due to new insurance bill or increase in service tax from April 2015?

    4. Can i change the nominee of the policy in the later stage? I am bachelor now will be getting married in few months..

    I would appreciate your view on above points

    Thanks in advance..


    1. Pratik-I am against such sites, because they push only few particular products as if it suites to you BEST. Hence I suggest to avoid. If service tax raises then automatically premium will also. Yes, you can change nominee details as and when required.


  127. Hi Basavaraj,

    I am planning for an online term plan of sum assured of 50L.

    Totally confused between LIC and HDFC Life Click to Protect Plus.

    I have read about the Claim Settlement Ratio, Claim Repudiated and also Claim pending numbers in your blog.. But not able to take a call because of difference in premiums of LIC and HDFC Life.

    Kindly request you to suggest one.

    Nithin Kumar.

      1. Hi Sir,

        This is Nithin here again..

        Thanks a lot for your reply.

        I have one more question sir: Should i buy term plan ONLINE or go to the HDFC Life Office and buy?

        Are there any differences in online mode and offline mode of buying the plans?

        Thanks again 🙂

        Nithin Kumar.

  128. Greeting sir,
    My age is 28 married
    Help me please to select between HDFC Click2Protect Plus – Income Option VS MAX life online term plan
    for 1 crore. i choose these two term plan on the basis of premium, which is almost same approx 7.5 k . Please give some insight on payout option, which one is better one time payout or onetime payout + annual payout


  129. I have completed 50 yrs in dec ’14 and want to go for term insurance of around 50 lacs. i am a casual smoker. can u suggest a good policy with riders that is reasonable in premium

  130. Hello Basu,
    I am 39years old, non smoker, planning for term policy of 1cr. Could you please help me with below queries.

    1. I saw in your few replies where you say that ideal policy term should be upto retirement. However, there is term policy which covers 25years but need to pay only upto 20years. The insurer will be covered under policy upto 25years. Is it good policy for me to go with??

    2. Do you recommend to go with 1cr policy with one company ? Or 50L with 2 companies ? Why? In my view, it is better to go with 50L with 2 companies in order to minimise risk with one company. Please suggest.

    3. Is it better to go with online policy directly with company website ? or throuugh agent ? or policybazar ?


    1. Prashant- 1) When I say it should be up to retirement then it is coverage of policy but not the premium option. So it is left with you which option you take. 2) Stick to one company, no logic in splitting. 3) Better to go with company website (I strictly against policybazaar recommendations too).

  131. Hi Basu Sir,

    I have 2 questions :

    1. as you said that “Your working life ends at retirement. Therefore, no earning means no insurance.” what does it exactly means . Does it mean that if I will retire at an age of 60 years and thus I will not be earning anything there for my dependent will not get money if I die after 60 years of age.

    2. while replying for one of the post for term plan for house wife you said that “No insurance if none of them financially dependent on her”. what does it exactly means . Does it mean that if I am the nominee for her and she is not earning anything and if she died so I will not get anything as I will not be dependent on her. or also if my son is nominee so same is the case for him too?

  132. Hi Basavaraj,

    First of all “Hats Off” for your patience and commitment in replying to the questions posted 🙂

    Coming to my questions:

    1) Will the death in natural calamity like earthquake, floods be covered in a term policy?
    2) If the policy holder dies abroad (USA or UK or any other country). Will the dependent still be eligible for the claim?
    3) I am 34 yrs old and already hold a HDFC Click2Protect 1 crore term policy. Which one do you suggest between MaxLife and Aviva for my second term policy which I am planning to take now? Should i go for another 1 crore or should i opt 50 lacs policy?

    4) Can a person with “Hepetitis B” (not me) who is active and does not have any symptoms of such Hepetitis B’ avail a term policy? If yes, how will the terms and conditions differ from a normal person?

    Thank you.


    1. Srinivas- 1) You need to check while buying this. Because there may be slight differences from company to company.
      2) Yes his dependents still be eligible.
      3) How much you buy depends on the insurance requirement. This I can’t say. So choose sum assured of your choice. But why can’t you enhance the sum assured with HDFC itself?
      4) Whether that person still suffering from this disease? Then they may raise some issue or reject proposal. Let him get well then he can apply.

      1. Thank you very much for your quick reply.

        With reference to your suggestion in point # 3, I will definitely check with HDFC itself regarding the enhancement of existing policy. Meanwhile, could you please suggest between MaxLife and Aviva if I wish to go for a new term plan.

        Coming to point # 4, “Hepatitis B” is a virus in blood/body which cannot be cured. Once affected, a person has to live with it and will not be eligible to donate blood. This is commonly found in one out of every 20 people. Though not a dangerous disease/infection, I am not aware of its clauses or T&Cs in insurance industry. Would it be possible for you to provide more details around this ‘Hepetitis B’ infected person in taking a term policy.


        1. Srinivas-Both are good companies. You can choose of your choice. Thanks for sharing more details about this disease. I am not aware about what they consider. Because each individual insurance companies have their own underwriting rules and which they usually not disclose. Hence let your friend apply for term insurance quoting this health issue. But my only suggestion is not to hide this.

  133. Hi Basu,

    First of all thanks for sharing this informative post. I would like to know below queries –
    1. My age is 35 years and I want to take the Term-insurance, so please suggest that it would be advisable to take the Term-plan of 1-Crore from 2 companies (dividing 50L -50L each) or shall i go with the single company for the whole amount, The reason behind diving the total sum – just to avoid any refusal case from any of the insurance company.

    2. As my age is 35 years, so what should be the maximum tenure for the life-term I should opt for – Shall i go for the maximum term plan offered by the companies or should keep some tab on the tenure ?

    Thanks in advance.

  134. I am interested in 1 crore online term plan. Almost all the insurer is going for medical test before policy. Now, if I am medically fit and policy is issued then in case of fatality after one year (or Non suicidal death within year), what are the scenarios that the claim could be rejected. If there is no ground for rejection, then why insurer offer different premium for term plan over 1 crore where medical test is mandatory.

    1. Rakesh-No need to worry after the policy issue. Scenarios of rejection are different because there are millions of reasons for individual’s death. Premium of insurers are different because it depends on the mortality table they use, underwriter decision and business module they adopted. Hence we can’t comment on that.

  135. Hi,
    Which is best Insurance company to provide term insurance for NRI?? Will there be any problem during the claim settlement if the insured stay out of India??


  136. HI Basu,

    i am 26 year old.
    I am looking for term insurance of HDFC life 2 click protect plus , ICICI prudential, SBI Max life of 1 Cr. sum assured.
    can you please help which is best term plan from this and also is that good to have rider in term insurance?

    please suggest

    1. Dear Pravin,

      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

  137. I would like to ask you a question that I have bought 50 lakh SBI term plan but now I want to buy term plan for my wife who is housewife. Can you suggest me which one is best for it?

  138. Hi Sir,

    Please suggest me,
    Sir I am 28 years old and want to buy term plan of 1 crore from either Hdfc life or Max Life.
    so please suggest me that:
    1. which company is better.
    2. Basic life cover or Income option+lumpsum , which is better to buy.

    please suggest me at the earliest.

    I am going to buy term plan after your suggestion.

  139. Hi Basu,

    I see a lot of your efforts in answering queries/concerns of other people here. You are very prompt on your replies as well.

    You are doing a great job.



  140. Hi Basavaraj,

    I am 29 yr old. I am planning to buy a term insurance. However I have some confusion regarding my health history.
    I had an epilepsy attack 8 years back. Since then I have been taking a daily tablet prescribed by doctor. I never had any second attack after that and I am living a completely healthy life.
    I would like to take your opinion on below points:
    1) Do I need to disclose to insurance company that I am taking a daily tablet for an epilepsy seizure which had come 8 years back?
    2) If I disclose this information, what are the chances of me getting the insurance? I am fine with more premium but don’t want the rejection.
    3) If a company rejects my insurance application, can I try other company? (usually insurance companies ask if any other company rejected your application before)
    4) Even if company gives me an insurance, and if I die with an accident in future, company might give the excuse like this accident is caused because of epilepsy attack and may reject my claim.
    (I read terms and conditions of an insurance company where they mentioned if an accident occurs due to alcohol, drugs or any epilepsy like attack, claim will be rejected.)
    5) Somewhere I read “Insurers are not allowed to reject claims citing non-disclosure of facts, if the policy has been in force for more than two years.” Is it true?

    I hope you will help me to clear these doubts.


    1. Harish,

      I have the same issue and have got term insurance policies from three different companies(one with additional premium), just that I had to fill lot of details regarding medication/history of illness.
      Go ahead and be transparent.


  141. hi basu

    first of all thanks for such a good information you shared with us…..I like your blog…I want term plan …..confused in LIC and SBI life,……after reading your blog………max life……I have 4 lic policy….jevan saral……plan 814…bima account..jevan saathi…… all policy i mention…..non smoker……but sometime I smoke…….if I go for LIC term plan…..and mention smoker…..mere rest policy par koi effect padega……..aur I mention non smoker…….medical test mein aa jata hai toh kya hoga……..very confused….pls suggest …what to do

    go with lic or other company term plan……if mention smoker in other company plan,,,,its effect my lic policies please suggest…..I want to secure my kids future with 100% claim

    1. Priyanka-When buying those LIC policies you mentioned non-smoker because at that time you are not smoking (I feel so from your comments). So you started smoking later means no issue. You have not mentioned how much habitual you are. But it is better to mention as smoker and it will not affect your existing policies. My simple suggestion is (personal), if you want to secure your kids future then quit smoking and buy normally. By doing so you are quitting that habit and will have big relief of security.

      1. hi basu

        thanks for reply and suggestion…..I m trying to quit smoking…:-)….basu pls suggest which term plan I will take….I have 4 lic policy as I mentioned earlier total SA of 4 policy is appox,30 lacs. any benefit if I take lic term plan otherwise I like sbi life term plan with accidental death benefit.

        pls suggest which one is better lic sbilife or other

          1. Dear Priyanka,

            As suggested by Mr. Tongatti, 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

      2. dear

        yes I start smoking after taking the lic policy but I am not chain smoker….I smoke….. one cig in a day…sometime one cig in week..sometime after…2-3 week.will trying to quit smoking ASAP …so I have to mentioned ……in term policy …..smoker……

        if I mentioned non smoker… will be problematic in future…..pls suggest

          1. Hello dear

            How r u ? I m amazed by ur quick responses. Thank u

            Again need ur suggestion can I go with pnb met life below term plan+ maturity ……
            1) Met Family Income Protector Plus..Max 20 yr policy term
            UIN 117N086V01
            2) Met Smart Platinum…….term plan for age 99 yrs
            UIN: 117L066V02

            Or go with sbi life term plan without rider as u suggest earlier.

            1. Priyanka-The first one is return of premium. which costs you more than typical plain term plan. So I suggest you not to opt for this plan. Second plan is not term plan, but a whole life plan. It is typical endowment plan where maturity will be up to 99 years. Hence avoid the second one two. If at all you need whole life then my suggestion is LIC. LIC plan offers higher bonus than other plans. But when your concentration is LIFE INSURANCE then avoid both these products and buy simple term plan. Better stick to your basics of buying online term plan without riders.

              1. Hello dear

                My query is

                the MetLife smart platinum requires premium payment for 10yrs (annual premium 1 lac) after which the policy can be converted into pure term plan extending for a period of 99 yrs upon leaving 2lac of maturity. (Total premium+ interest )at 10 yrs for sum assured 32 lac……agent words…..but u r saying this is endowment plan……pls explain

                Second query

                In case a person takes a term plan while in working and subsequently leaves the job n becomes non working as for example working woman becoming a house wife will the term plan continue as it is or will the term be modified as per insurance provider discretion during or after completion of duration of policy. Kindly explain

                1. Dear

                  I have to disclose all my lic policy while applying online term insurance … would be advisable to take term plan 50-50 lac from 2 different companies..reason——no medical test and no claim rejection……pls suggest????

                  1. Priyanka-Yes you have to disclose all your existing life insurance policies (irrespective of insurer). No need to split your insurance, stick with one company. Do you feel buying such huge sum assured by skipping medical test is safe? They will get many reasons to reject in case of non-medical term plans right?

                2. Priyanka-This is a whole life plan. If your agent shared the information then you can share with me. I don’t know what is prompting you to buy this. Also let me know how he arrived at this maturity value. Insurers asks your income only during buying but not at latter stage. So no need to worry.

                  1. thanks for your time in answering my questions….
                    This post is just to let you know how helpful it is for people like me who does not understand anything about finance. finally I decided sbi term plan thanks for suggestions

                    can u pls suggest any child plan for my two 5yrs n 2yrs daughters…..

                    after reading ur article on jeevan saral……I confused….is it good investment or not………my husband brought jeevan saral in 2010 at age of 33 with qtly premium 15312.for 18yrs…..5yrs completed can I surrender this policy or continue…….how much maturity value will get

                    1. Priyanka-Great to know that you acted upon what we discussed. Child INSURANCE? Not at all required. But INVESTMENT for child is must. Better to come out of Jeevan Saral at the earliest. For maturity value after 5th year, please contact nearest LIC branch.

  142. Dear Sir,

    I was suffered from typhoid in 2009 & hospitalized. At the same time I was undergone a surgery for ANAL FISTULA.Even though I don’t take medication right now for the same i sometimes face the some problem of minor nature. However I have not any medical records of the same surgery with me to produce in front of insurance company.
    Please suggest will any insurance company insured me for a sum of Rs. 25 lacs for a term of 35 yrs of age. If so please suggest some names.


  143. Hi,

    I like your blog. Need you suggestion.

    1) I’m about to take term plan (Mostly max life). But would like to know if there are any term plans which i can convert later to an endowment/money back/whole life plan?.
    2) Is it better to take plain term plan or term plan with any riders added?. Thinking of getting accidental death benefit rider if needed
    3) Is term plan better than whole life plan?


  144. Hi Basu,

    Thanks for your blog.

    I have four LIC policies from last 3 years.

    2 Policies are Jeevan Saral on my wife name

    2 Policies are Jevvan Saral & Jeevan anand.

    But now i am not happy with these policies , i want to buy a term insurance with closing all these policies.

    So my question should i close it now & buy the term insurance also do i need to mention all these policy details when i am buying the new term insurance online.


    1. HI Dinesh,

      First of all please clarify why you are not so happy with LIC policies??
      If you will the claim settlement ratio of LIC is too high 98.14% among all the companies.
      As well as your money & life risk cover is 100% secure then what thing happen?

  145. Hello Basavaraj ji,

    Your articles are fantastic and I am amazed by your quick responses.
    Thank u for creating awareness to many people.

    My query is
    1) My age is 26, I have Jeevan Anand started on Jan 2013. After seeing your pages I understood the importance of Term policy, now I am planning to close Jeevan Anand and choose one Term policy. I heard that I could close LIC only after 3 yrs of starting the policy. Is that ture?

    2) Does a term policy provides settlement if some unexpected demise happens to policy holder outside of India.

    3) Could you please provide a article on Mutual funds (like what is MF, types, and how to invest, ). I am completely new to this mutual funds topic. If already published please ignore this third point.

  146. Sir,
    i am wanting to buy a online term policy and have identified one from lici and the other is HDFC life my age is 45+ and for a term of 29 years the premium with lic is 28000+ and with hdfc is 20000+ hence i am confused . kindly assist me in choosing
    regards pankaj

  147. Hello Basuji,

    I am about to buy term plan in a day or two! Would be paying the premium on an annual basis…
    I have shortlisted Max (more economical premium) & ICICI Pru (1.5k higher). Just wanted to know if it is beneficial to go for Lumpsum+Monthly income plan or just a plain term plan would be OK? The monthly income plan of Max seems really attractive for obvious reasons….

    Also I’ve read in your blog that a term plan is beneficial till retirement age, and not beyond. Can u pls explain why?

    Thank you very much…


  148. Hello Basvraj thankyou for this valuable information.

    I have a question for you.

    I bought ICICI term plan in 2013 online. My age was 59 that time. I am a non smoker but I used to have high BP in 2006 and then after it was cured by taking some medicines which reduced my cholesterol and I was ok. I have mentioned same in the online policy at the time I bought it and they have increased the premium 2000Rs for that. from last 2 months again I have a blood pressure about 170/100 and even suffering from breathing problem from some days. I am very much worried

    Almost 2 years are over and I am paying premium on the said date. This policy is valid for 5 years. God forbids if something happens to me , is icici going to pay the insured amount to my 3 unmarried daughters (Nominees), is it 100% sure they will be on commitment or is there even a 1% of chance they may refuse because I dont have any other hope apart from this policy amount to give them so that they will settle their life if I will not be there with them in future?

    How honest is ICICI on their commitment, please let me know so that my mind will have a peace and I will bve worry free….

    Thankyou in Advance for the esteemed reply.

    Shiv Kumar
    Retired Army officer

    1. Dear Shiv Kumar,

      Please be assured that 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%.

      ICICI Prudential Life Insurance

      1. Thank you very much ICICI. This is what makes me worry free and am thankful to the ICICI who cares our children after we are not with them. Ap logo ke sath business nahi belief aur dil ka rishta hai… God Bless you and your company!!!

  149. Hi Basu,

    Am 44, want to have a term plan for about 3.0 crs, not sure which company and whether to have pure term plan or one which gives benefit on maturity, Pl guide.

  150. Hi,

    Please suggest me.

    I am Term Plan purchased by SBILIFE last 3 years for 35 lakhs BUt i need to change HDFCCLICK2PROTECT plan , is good compare to others .like lumsum amout and monthly income plan , please suggest me.

    And i also need to invest like Equity please suggest is to invest in euity or any fixed plan like BOND or Balance is not connect in market link.
    I never invest market link plan .
    Shahsi kumar

      1. Hi,

        Thank you for your quick reply .

        HDFC click2protectplus plan gives monthy income (like salaray) with lum sum amount in term insurance. Ex:3000000 insurance amount and 0.5 % of (15000p.m) paid by bank.SBI not giving this type of plan.

        My Investiment plan related query is : I need to invest via HDFC life euity or sbi euity plan type .I need to suggestion this type of equity funds i invest yearly 50000 for 5 Years and term 15 years is good to me in future or not.
        Please help me , I am confused . Banking Agents are telling good investment but i am not clarify properly .

        1. Shashi-But have you compared the premium difference between plain product to this HDFC product? I think bank executives running behind you to sell a product. When you are planning to buy term insurance to cover your life risk then why the product which combines insurance+investment like HDFC life equity or any other plan. Stay away.

  151. Hi Sir,

    This is not regarding any of the above insurance companies…but regarding PACL insurance ltd..

    I need more details on this..when I search for this on internet it is saying “its fraud”…Actually my uncle offered this to my parents and they have to pay 12500 per year till 2019 then they will get return about 1,15,000…is this trusted one? we have to pay second premium this month…please guide me on this whether to pay or not..


  152. Dear Basavaraj,
    Your blog is excellent.
    I am 44 years State Govt Servant getting annual package of 8-00 lakh and non-smoker. I intend to have one 15 years basic term insurance plan of sum assured Rs. 75 lakh. The premium offered by Max Life is Rs 12750/- and that by LIC Rs. 24400/-(online). Others are offering in between. Max Life, LIC and some others are suitable as per the brochure. I can’t decide which one to select. Max is offering lowest premium but I don’t know if they shut their business or get bankrupt in some years, what can I do or what steps can be taken. Alternatively LIC is Govt controlled but I don’t know if LIC will be fully privatised by Govt in near future. You have given lots of information but I need trust rating in terms of the criteria mentioned above before selection.

    1. Naren-You are thinking on too many IFs. Please stop thinking and even if private insurers set the shop close then there is something called solvency ratio and regulator, who will not make you to be in middle. If you comfortable with Max Life then go ahead.

  153. i buy a term plan for my mother she is 49 now from Tata Aia iraksha supreme covered upto 80yrs is it a right step or can change. how is Tata doing now

  154. I have Aegon iterm plan till 2036 with cover of 30 lakhs. I am looking for another term plan with higher amount say 75 lakhs to 1 Cr. I feel like I should go for HDFC Click2Protect Plus but I am more inclined towards Max Life term plan. I read somewhere that HDFC customer service is not good after purchase of plan. Could you please comment which company is better in terms of customer relations when someone claims for a settlement. As we all feel that our family should have less hassles and claim process should be simple and insurance company people should be helpful enough to guide people. I have never seen any reviews about insurance companies behavior towards customers.
    Thanks for your comments.

    1. Rahul-I understand your concern. But buying with disclosing all facts and hoping for the best is the only solution. Do you feel the MaxLife will guarantee you that they will not harass your family and send claim amount to them within few hours? So instead of assuming so much, better to do your things properly.

      1. Thanks for your comments. I agree. No one can guarantee it as such. I am 34 years old. So is it wise to go for 26 years term with 75 lakhs/ 1Cr. sum assured? My personal opinion is “in today’s age we can hardly live after 60 years” (might seem little pessimistic) I see there is not much difference in the premium. I had bronchial asthma in childhood but since many years I have not suffered from any severe ailments not even asthma. I have already declared this to Aegon. Just for the sake, what your hunch / intuition says should I go for HDFC Click2Protect plus with income option or without income option? Or Should it be MaxLife basic plan? Since I think HDFC is Indian (I am not sure though) why to give money to some foreign collaboration, anyway I am not going to see what is going to happen after my demise. What would you advise me?

    2. MAX Life settles the claims within 10 days of submitting all documents, and in case there is a delay they also pay 6% interest on the settlement amount.

  155. Hey..Thanks for the quick update. You published it on the same day…Great going..!
    What exactly does claims repudiated means?


  156. Hi basu. I came to know that reliance has introduced reliance retirement fund an equity oriented fund. Is it good to start investing in it for creating a corpus for post retirement life. Will u pl enlighten on that.

  157. can we have 2 insurances from 2 different companies? for eg. i am planning to have 1 insurance from icici (which having raider) for 50 lakhs, and another one from LIC for 50 lakhs.

    and can we claim the insurances from both the companies if the policy holder death?

  158. I am 45 and under insured. Currently and in the near future (approx 2 years) will have cash flow issues.

    Have identified the need for 1Cr term policy; please advice from the below options or any other option that you can suggest.;

    4x25L term policy every quarter annual premium

    1x1Cr tem policy with quarterly premiums

    Also have been advised to stay clear of riders as they push up the premium.

    Every likelihood I may be default.
    What happens if there is a default?

    1. Guest-1 Cr with one insurer and payment of yearly is best. No logic in spreading your insurance among insurance companies. If you default for especially of term insurance then revival will be with complete medical examination (cost must be payable from your pocket) and if they found any health issue then they may not revive it. So you must be careful with term insurance.

  159. Hi Basu,

    Currently, I am holding SBI term plan but i want to change to LIC because claim ratio (LIC is good).

    Can i proceed?


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