Top 5 Best Online Term Insurance Plans in India-2016

There are around 24 Life Insurance Companies in India. All of these companies offer the term insurance product. How to shortlist the “Best Online Term Insurance Plans”?

Note-I published the list of best online term insurance plans in India for 2017 at “Top 5 Best Online Term Insurance Plans in India in 2017“.

Last year I wrote a post of “Best online Term Insurance Plans in India for 2015-A comparative list“. In this post, I concentrated mainly on Claim Settlement Ratio of IRDA for 2014-15. However, from now onward, I do not think the Claim Settlement Ratio is a most important and sole criteria in choosing your term insurance. Reason is, recently IRDA amended the Section 45 of insurance act. According to this, if the policy continued for 3 years or more, then insurance companies cannot reject the claim.

Note-I updated the claim settlement ratio of IRDA for 2014-15 in below post.

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

This is a big turning event in the insurance industry. I explained in detail about this change in my earlier post at “Term Insurance-Claim Settlement Ratio no more a big criteria“.

So now how to choose the “Best Online Term Insurance”? It is pretty simple. No complication at all. Below I will share you how to short list.

1) How old is your insurance company?

Life Insurance is a long-term contract (especially term insurance). Hence, I will select the insurance company, which has been in this industry for more than 10 years. Why 10 years only? I feel comfortable with this number. Because privatization in insurance industry was done in the year of 2000. It means almost 15 years back. Hence, I look for a company which is at least 10 years old. I may be biased. However, this gives me some confidence on insurance company’s business existence.

I agree that we can’t predict the future. However, at the same time, we must look at history to predict our future. Here is the list of all insurance companies and how old they are.Age of Life Insurance Companies

Note-There may be an error of margin of around a year. Because some companies mentioned the IRDA approval as their start and some the actual start year.

From this activity, we noticed that around 12 companies are more than 10 years old. The rest of them are either 10 years or less than 10 years. Therefore, even though these new companies may be offering “Best Online Term Insurance” plans, but for my safety, I will stick to old companies.

2) Claim Settlement Ratio

As I said above, claim settlement ratio is not a big priority now for the selection of insurance. However, it will give me an indication of how the company is aggressive about claim settlement. However, I again warn you that this is a raw data. It will not differentiate the claims based on products. You will not see how the LIC or some other companies settled endowment plans, term insurance plans, or ULIPs. However, you may feel some comfort and a tool to judge the insurance company. But not a sole criterion to judge. Below is the claim settlement ratio of all life insurance companies for the year 2014-15. I wrote a detailed post on the same at “IRDA Claim Settlement Ratio 2014-15-Which is best Life Insurance Company?“.

Claim Settlement Ratio 2014-2015

You notice from the above data that the companies which have more than 90% claim settlement ratio are around 9. I highlighted them with green. However, I highlighted Star Union Life with red even though it’s claim settlement ratio is showing at an impressive 94 %. Because it was a 7-year-old company. Hence, I feel a bit uncomfortable to go with.

Now we shortlisted the seven companies.

3) Cost of Term Insurance

Now we have to list down all these seven companies premium rates to arrive at cheapest and affordable. Here is the list of premium calculated.

Premium Rates of Best Term Insurance

You noticed that LIC is the costliest one among all. At the same time, Kotak is offering the lowest premium. However, do remember that the above premiums may change based on your health condition or some other factors.

Note-I considered typical pure term plans. I have not considered any riders, benefit payout options or so.

  • I considered typical pure term plans. I have not considered any riders, benefit payout options or so.
  • The term I selected is 30 years. However, I suggest you to consider the time of insurance up to your working life. Life Insurance is not required during retirement.
  • Never buy combo products, which offer riders or some death benefit payout options.
  • Each of these facilities is not offered to you freely. They charge it for such offers. Hence, buy it only when you feel the features suit you.
  • Buy accidental insurance separately from general insurance companies.
  • Buy critical illness insurance separately from general insurance companies only if you have a family history of such diseases.

4) Plan features

Let us go further and try to shortlist the plan which suits you. This time, we will look into the term of the plan. The minimum term and maximum term.Best Term Insurance Plans Features

Finally, you notice that some of the best options like maximum age, maximum term and premium paying flexibility features are with ICICI Pru iProtect Smart, HDFC Life Click 2 Protect Plus, Kotak Preferred eTerm Plan and SBI Life eShield.

Please note that I am not against LIC or other companies. However, considering choices, features, flexibility, premium budget, and reliability, I chose below 5 term insurance plans as my choices of “Best Online Term Insurance”.

  • LIC eTerm-Costliest but to those who feel that LIC is Government backed and safe.
  • ICICI Pru iProtect Smart-Best with competitive price and features.
  • HDFC Life Click 2 Protect Plus-Third Choice.
  • Kotak Preferred eTerm Plan-Fourth Choice.
  • SBI Life eShield-Final Choice.

You may feel biased. However, considering the factors, I feel these are “Best Online Term Insurance” plans to go. At the same time, I am not stating that my method of choosing is BEST. However, I tried my best to shortlist the products. Others may have a different opinion. Hence, chose the one which you personally feel comfort.

Note-We are not associated with any Life Insurance Companies to promote their products. There are no monetary benefits from any of the life insurance companies. It is purely an initiative to promote term insurance and make the process of choosing simple.

459 thoughts on “Top 5 Best Online Term Insurance Plans in India-2016”

  1. Hi Basu,

    Have you written any article on the same for 2017 ?? like, “Top 5 Best Online Term Insurance Plans in India for 2017”

    I am going to start term insurance. So can I follow this same post or wait for your 2017 analyze ?

  2. sir
    pure term insurance did not cover death due to accident . Is it cover death due to health problem like heart attack. Should not we go with accidental cover instead of term insurncae as their is more risk of accidental death .

      1. Sir, I check various term insurance plans ,their are various options like “accidental death benefit rider” , i think i understand it wrongly. If term insurance covers accidental death then accidental cover is for cover disabilities due to accident ?
        If i am wrong then please tell ( in short) what should we target to cover in term insurance plan( as u say pure term insurance) and accidental insurance.

        one other query – is term insurnaces covers death due to health problem like heart attack.

        1. Maninder-A typical normal term life insurance also covers the death due to the accident. However, by buying an accidental rider, you will get more benefits in case of death or disability (which you can easily buy it from general insurer than clubbing with life insurance). Yes, death due to heart attack is covered in term insurance if there were no such health complication during buying or insurer aware of the risk while issuing the policy. Death due to diseases at later stage due to any health reasons is very much covered in term insurance.

  3. Dear Basu,
    I always like your analysis and advise (nice graphical way of plotting data which helps arrive at a perspective quickly).

    I Need your advice. I am currently subscribed to ICICI prulife Pure Protect – Elite from 2012 Jan. It is expensive compared to other policies in the market and ICICI seems to have ismart now which seems to have more RoI now.

    Please help me with your expert advice on the following:
    1. Is there any advantage on the length of subscription to a policy?
    2. Do insurance companies provide a way to switch from one plan to other like insurance portability?

    Looking forward,

    1. Venkata-1) It seems offline term insurance. Hence, it is costly. Hence, better you check online alternatives. Once you got the new policy, then you go for cancellation of the existing one.
      2) NO.

  4. Hi
    I just wanted to know if there is any effect of GST bill on term insurance. I mean if GST bill is implemented, then will there be any reduction in premium.

  5. Sir, I want to do LIC e-Term policy. I rarely smoke .. i think 10 times during last year. Last time i smoke about 20 days ago. Now, If I apply for Non-smoker category and after medical test if I fail smoking test– What will happen?? Will they refund me the amount I paid or increase the premium to aggregate category?

    1. Saurav-If they consider you in smoking category, then either they reject the proposal or hike the premium (even reduce the sum assured you proposed). If you not accept their proposal, then you have rights to reject it. Once you disagree, then they return the premium by deducting the medical examination cost and the tax on your premium.

  6. Hello Sir,

    If applicant dies after making online payment of premium & Medical examination is done but before policy paper gets issued & policy comes in force to applicant then premium paid will be refunded back to nominee on claim or not?

    I checked this with Max Life Insurance & I have been informed by their call center executive that in such case premium will not be refunded back to nominee if applicant dies before policy issued.. Even he stressed that no other insurance company will refund back premium paid in such case & I can check with any Insurance provided !!

    It was very surprising to know.. Please advice what is IRDA guidelines in this regard!!

    1. Sachin-If policy is not issued and premium is accepted, then death occurs means they have to return the premium. If they NOT, then it meant that they accepted the proposal and they have to pay the SUM ASSURED. Don’t rely on these call center guys. Visit their branch and check personally.

      1. Thnx for ur reply …

        I also felt the same, but one never know about hidden T&C of these companies & when incident occurs, then you have no choice without accepting if it is mentioned so !!

        I was about to finalize Max Life Term Plan, but now I am bit apprehensive about my decision. It becomes tough when you come across such incidents.

        Kindly advice shall I go for Max Life or go for my next shortlisted options ( Kotak & ICICI ) ??

        1. Sachin-If you are so apprehensive that accident may happen during this exluding period, then avoid it 🙂 Brother, please be positive. If you feel that it is a biggest negativity of that feature. Then simply switch to other insurer.

  7. Hi Basavaraj,

    Does LIC’s Amulya Jeevan cover death by accident?

    Does LIC’s Term Assurance Rider- cover death by accident?

    HDFC Click2protect Plus has an “Extra Life Option” which covers death by accident; doubles your SA- and your Premium on it increases by 3K Mark roughly. And would you call this as a Rider?

    I still would want to add on a Personal Accident Rider from GI companies after shortlisting- as I digged a little to find out why you stress on Riders from GI Co’s and I understood its mainly due to variations in coverage. Thanks for that.

      1. Thanks Basu. So what I understand is that LIC Amulya Jeevan covers Death- Both natural and Accidental. Am I Right?

        1. Karan-Not only LIC Amulya Jeevan but all insurers covers whether the death is natural or accidental. But only when you opt for rider, the rider benefit in case of accidental death will be added to claim amount.

  8. Hello Sir,

    I have Jeevan Anand and Whole Life Policy Limited Period each of Rs 5 Lac sum assured for 21 yrs premium paying term. i have paid 6 premium till date.

    would like to know is it good to surrender and buy 1 term insurance as for above 2 policy my premium is Rs 42K. where as for same premium amount i will get Rs 2 Cr cover.

    Also suggest me should i go for Surrender and take money back or keep it for paid up capital value.


  9. Hi,
    I have processed term insurance with Max Life Insurance. I checked the above comparison and found that Max is fulfilling all the above criteria but still its not in your top 5 list. Any specific reason for not including it?


    Dear friend, i already have (30 lac) term insurance i Aviva i life. now i want to take additionally 20 lac term plan for other Insurance company. is it possible. give me a suggestion.

  11. Hi sir
    I have taken home loan from hdfc.. Is it advisable to take insurance from hdfc.??
    I needed to understand your opinion or concerns if any..

  12. sir , i am thinking in between icici/ lic/ pnb met life.
    A) should i go for the riders or should i take individual policies for accidental or health
    b) its very difficult to understand difference between terminal illness and critical illness
    C ) main advantage in case of number of claims in lic 75k while incase of icici it is 8k. whats the reason other than gvt / pvt sector ? while in LIC riders are not included

      1. Basavaraj Sir,

        As per my understanding, Terminal illness is a disease that cannot be cured or adequately treated and that is reasonably expected to result in the death of the patient within a short period of time. I think Insurance companies usually consider this time as 6 months. Entire Life Insurance Sum Assured will be paid in case of Terminal illness even before death.

        Whereas a person with critical illness has a chance to survive and as it is available as rider/stand-alone policy, upon detection of critical illness, the lump-sum amount that is being paid can be used for the treatment and the person can get back his life.

        BTW, rider in ICICI Term Plan is tricky. Kindly, avoid it.

  13. Dear sir,
    Let me know cheapest premium for term insurance for 1cr.
    Age-46 yrs,male,20 yrs tenure.
    If i take insurance today &died in two days,can my nominee gets full amount.

    1. Sanjay … I was trying to do the same. The cheaper with good settlement ratio i could find were Max life and Tata. There are more cheaper u can try but i didnt selected them for xyz reasons.
      I ultimately bought pnbmetlife due to spouse coverage.

  14. Hi…Got a query regarding Term Insurance Plan- Nominee/Guardianship eligibility.

    a) Wanted to check if the possible option can be selected while providing the nominee towards a term insurance, in the case of the nominee being a blood relative (Minor), can the guardian for the nominee be named as a Non-Blood relative /Non-family member? Any insights?

    b) Some of the insurance companies like Max life insists that the guardian has to be a blood relative.
    In such scenarios, where such an option cannot be provided, what is the alternative?

    c)In case of incidents resulting in settlement of the insurance amount,
    the minor will need to wait till he/she turns major?


    1. Ramya-a) Even though nowhere it is written that appointee or guardian must be within a blood relation, but for their safety insurance companies may insist the appointee be within blood relation. Because nomination and appointee must always be within blood relation.
      b) Yes, they are right. It is hard to say or strange that no blood relatives are there to appoint as guardian.
      c) No, the appointee will receive the claim immediately after the death of insured. You have to create a will for instructing about the process of using insured claim amount until the nominee turn major.

  15. Hi Vasavraj,

    I am planning to take a term insurance plan with 1 CR cover. Could you please help me to decide from the below list-

    Aegon Religare

    Max Life Insurance

    Kotak Life


  16. Hi,

    I would like to take TATA AIA iSuraksha Supreme plan for 40 years tenure. My age is now 35 years old and premium is around 13K. Is my choice is correct?.

      1. Basu , does any of the the above top 5 cover till the age of 80 years. It seems only ones like Tata AIA does and also AIA seems to have 96+ claim ratio success rate (as per thier website). I was thinking for one ICICI and Max life of 1 CR each. But seeing this AIA coverage till 80 yrs, I am thinking to take this also. Please advise, I am an NRI and 39 years of age and can manage upto 3 Cr term coverage.

          1. But wont my family get benefits in case of mishappening even between 75 to 80 years.

            One more query please – I came to know that PNB gives option to include non working wife also in a term plan for husband. Please share your view if its good idea to go for it? Else my wife will not get any term plan until she is working.
            If its something useful, is there any other term plan in market which offer similar options?

  17. Hi Basu,
    I want to take a Online Term Insurance and after lot of analysis i short listed Max Life Insurance(Baisc vanilla plan). Earlier i believed that Online Term insurance does not consist Agent’s commission but i came to know that these plan also gave commission, companied treat it as assisted commission(It can be given to any individual agent or any other company which are know for policy comparison ).

    So now i want to know how if i do not include any such person and fill complete form on my own then how i can get benefit which was about to given agent/company.

    Thank you in advance and appreciate you initiative to aware people with out any business mind. You are doing really a great job !!!


  18. Hi,

    Can pls suggest among Aegon, Aviva, Max Life. I want take 50 Lac term insurance.
    As all three have low premium compare to others.

      1. Hi Basavaraj,

        You haven’t specified your view on aegon and aviva.
        I would like to know your view (either good or bad) on above two.
        You reply is highly appriciated.

  19. Hi Basu,

    Also I wanted to know if I take ICICI/HDFC,and pure term plan for 1 Cr,Is there any hidden exclusions that we sud be aware of??Or how to find what all exclusions are there which may interfere in getting 1 Cr to my nominee in an event of my demise??

    1. Kishan, I have gone through all confusions as you have now. I can understand how it feels. I suggest you to fill the online proposal form of HDFC and ICICI and also any other insurance provider till the payment page. Try to keep all the options same such as Sum Assured, Policy Term, payment option. Check what is being asked specifically by every policy provider. HDFC may ask family health history irrespective of age whereas ICICI asks the same when your parents were below 55 and Max may ask upto 60. Same goes with your health history as well. It varies from person to person. Don’t hide anything but if one’s parents had some health issue after 60 then it need to be mentioned in HDFC but not in ICICI or Max.

      As ICICI and Max are going aggressively in insurance business, you better prefer one of them. I have read few complaints that HDFC takes more time to issue policy. Anyway, Max is going to merge with HDFC. If you are in any of the cities where Max is providing its services then you take the policy immediately. Once policy is issued, you can move to anywhere. Nobody is bound to stay in the same place just because of insurance policy. You are free to live any where.

      You can find the “Exclusions” in Brochure and Terms & Conditions. Its “your” policy, so you have to read yourself, not for you but for your loving family. Nobody will do that for you.

  20. Hi Basu
    I have taken home loan from HDFC.I dont want LIC as it is expensive and Max insurace as it is not so widely spread and since i am working in priviate sector I really dont know which place I wud be in next few years.So I feel ok with ICICI and HDFC.

    1-Which one sud I choose?
    2-for accidental rider,they say for just 4k, i can get 1 crore so is it crore extra they talk in addition to regular plan of 1 cr?


  21. I am planning to take pure online term insurance from HDFC LIFE CLICK 2 Protect plus (Life Option) .I am 34 yrs old Non-smoker NRI .I would be getting the Quote between 2 to 2.5 Crore for 24 yrs duration from HDFC Representative office in Dubai who is assisting me to get the insurance done and my medical test would happen in India (I will be traveling in Nov 16 to India ).
    1 ) Could you please suggest which all points should I clearly ask them or get clarity from them so that I don’t fall in trap of any hidden conditions for this particular pure term insurance ?
    2) After medical test in India is done would they hike the premium and would they maintain the same if medical report is more or less normal.


    1. Swapnil-1) There is no standard list which I too can share with you. But try to fill all proposal documents on your OWN. Understand all terms and conditions before signing the documents.
      2) If medical report is normal (as per their norms), then there will not be any premium hike.

      1. Hi Sir,
        When I met the Sales person in HDFC Life Representative office in Dubai,he told me below things.

        A ) Concerned Sales person would upload the term insurance documents online from his HDFC LIFE Representative Dubai office on behalf of me after taking all the documents from me.and he told me rates would be same like online done by me …My Question :- 1 )If the sales person does all the online, will this Policy of mine would be consider as online as per HDFC policy ?
        B) As per the sales person since I am processing the claim from here and I a NRI, Taxes will not be applicable for the policy which would be considerable saving. Is this correct ?

        Note :- For medical I will be going to India


  22. Hi Basavaraj,

    I wanted to buy Term plans to cover myself (39 years) & my wife for 1 crore rupees each. I am an NRI working in Dubai. I read your article & discussions which followed & shortlisted 3 plans:
    1. Max Life Cover amount INR 15300 with option to add accidental coverage to tune of 72 Lakhs for just 4500 Rs more. This seems cheapest and some top performer in private market
    2. ICICI Pru life – 16800 for only term insurance. Add ons wil cost more I guess. I understand your view is to go rider free. The riders looks very lucrative with 31 critical illness.
    3. LIC – Govt and perhaps most secure. But charge twice. Do you see its risky to go with Max & ICICI in India
    4. As an NRI, does any of above term policy is not applicable or give less benefits?
    5. I want the same plan for my non-working wife. Will insurance company gives similar plan for non working people also?
    Pls advise. And yes thanx a ton for such an informative article and facing and keeping criticism on you blog. God bless for your support on this ?

    Thanks- Nadeem

    1. Nadeem-1) You can go ahead. 2) But if you buy standalone critical illness insurance, then benefits will be more than this rider. 3) I prefer ICICI and Max over LIC. 4) I think ICICI and Max Life offers to NRIs but not LIC. 5) NO.

      1. Hi Basavaraj,

        Thanks for your quick response. Followup queries are:
        1. Do you mean there is no term plan for non working woman? it better to buy 2 to 3 term plans of 50 lakhs each. Or just on of say 1.5 crores. What r the Pros and cons ?


  23. Hi Basavaraj, I am planning to buy term plan for myself and with a little bit of personal research and your in-depth analysis i have decided to go for Max Life term plan.
    However i am troubled with two dilemmas, in your post MAX LIFE duration is 35 yrs only where as in their website the maximum duration of plan is 40 years.
    Other dilemma is that needs your suggestion; is it wise to take accidental benefit or premium waiver rider when this option is already available with basic plan in Max life.

    1. Kumar-Max Life may revised the feature. You can directly check at Max Life portal regarding maximum age. Never combine other insurance (like accidental or critical) with life insurance. Buy them separately.

  24. Hi Sir,

    My father has undergone major operation in Lungs when he was 48. Some part of Lung was removed which had carcinoid tumor. He is 67 now and healthy.

    Now, while applying for Term Plan, I do not see any option related to Lungs in family history. I am not sure whether it comes under cancer or not. Will there be any problem if I don’t mention this. I am losing peace of mind due to this as I have to provide protection to my family. Please suggest.

  25. Dear Sir, Thanks for sharing such important information about term plan. My age is 24 years and I request your advice on an insurance plan which can give me return on maturity as well death benefit.

  26. Hi Basavaraj Tonagatti,

    My Annual Income is around 6.4 lacs. I planned to take HDFC & ICICI Online Term plans of 50 Lakhs each (Total=1 Cr.).

    1) Does the insurance companies accept it. They are saying that based on some underwriting, they will decide.

    2) Does Term Plans of HDFC, ICICI covers Terrorist attacks, natural calamities, war etc.? They are not in their Exclusion List. Does that mean they are covered.?

    3) As HDFC & Max are going to merge, which Term plan you recommend from both.? Max seems to be cheaper and better in other terms but if I take it now, it going to be handled by HDFC which in turn is a good company and one which I shortlisted.

    Thanks & Regards,

    1. Raghav-1) Yes based on underwriting, they accept it. How can they upfront guarantee you that they accept your proposal?
      2) If the reason of death mentioned by you are not in exclusion list, then why you have to worry?
      3) As of now go with Max.

  27. Avadhesh Maurya

    I my age is 31 years and I want pension/retirement plan, I want to save Rs 5000/- per month (60,000 per year) up to attaining age 60 years.
    Sir please suggest me any good saving plan/pension/retirement for long term i.e. 29 years ,60K per year saving so that I can get good return after 29 years which can be utilized for pension.

  28. Dear Basavaraj,
    I was going for HDFC eterm plan but after knowing that HDFC and Max life are merging together and max life term plan is 15-20% cheaper than HDFC, do you suggest to go for Max life rather than HDFC?

      1. Dear Mr. Basu,

        Thanks for sharing very informative article on term Insurance.

        In your article regarding Top 5 companies for buying term insurance plan based on certain criteria. Currently Max life also started giving term plan for 40years term as well as in quaterly, monthly mode payement.

        Will your top 5 will now change based on new features max life is giving.
        Also would like to know your views after hearing that HDFC life and Max life merger.
        Now what should the customer chose between the two if anyone has to buy term insurance currently.

  29. Hi Basu
    I really like your elaborated informations that you put here…and point to point detail
    But i have a query
    I have taken Aviva I Life policy
    How would you rate them…I didnt see you mentioning that in your column
    Thanks in advance

  30. Kesavan Thangavelu

    Hi Basu,
    Thanks for nice article. First time i got this detailed info about term insurance. Thanks to my friend who referred your blog. I am 41 yr Non smoker, NRI (India only on vacation)
    1) Pls suggest policy term 25 or 30 which is preferable
    2) For medical, i need to come to India (During vacation)
    3) In case insurer survives after policy maturity, what could be the return against Sum Assured 1 cr.

    Now interested to go ahead, expect your comments.

      1. Kesavan Thanagvelu

        Thanks Basu,

        Working age means, i can consider 15 to 20 yrs maximum as Policy Term with regular premium payment.

        My understanding is correct?


  31. Hi Basavaraj Tonagatti,

    There are 3 Questions please reply both in detail

    1) Is there any specific reason of not Choosing Max Life, Although It is slight cheaper ?
    2) WRT term plans,Is there any difference between accidental death & Death ( off course leaving suicide & War apart) Or all type of death are covered?
    3) I need accidental Insurance for my Wife(age 28)( since my all other things are taken care by employer) . Can you suggest best 2 plans considering – claim settlement ratio ; any type of death; least premium.

    waiting for your response. Thanx

  32. Hi Basu,
    I see SBI Term insurance has second highest cost (nearly twice the cost of Max Life and Kotak), claim settlement ratio of less than 90% and is existent for 14 years (on par with most others greater than 10 years).
    How did it find its place in the top 5 list.
    You got to give me atleast one reason why its there ahead of many others.

    Also I feel just to show you are not biased against LIC, you have included it in this top 5 list given the fact that they loot in term plan also.

  33. Hi Mr Basu,
    Between ICICI Prudential and Tata AIA, which one will you suggest for online term insurance for 1.50 crores, 30 years plan? How are the credentials of TATA AIA?

  34. hello sir. thanks for the article. it is very informative. i want to buy indiafirst life term plan because it is very cheap. but claims settlement ratio is verry very low for that company. i read in a website called mintwise that claim ratio is not fully reliable because of various factors like company age, and type of policies sold by company. then can i ignore claim ratio and buy indiafirst or other cheap plan? these companies are good companies, sir?

  35. Very nice and informative article… Thank you for that!

    Somehow PNB Metlife couldn’t make it to your top “7” companies after the 2nd round of filtering. I felt it satisfied all the 3 filtering criteria.
    Is it so that you feel more comfortable or have more confidence on other 7 companies?
    I am an NRI, 36 yrs old and looks like 2 top choices are PNB Metlife and HDFC protect. PNB Metlife’s premium is cheaper. Could you pls guide which one to go for?

    Thanks & warm regards,

      1. Actually I meant, as an NRI, I have limited options from the top 5.
        Also I am confused why PNB Metlife couldn’t make it to top 7?

  36. Hi Basu,

    Thanks for all your article. It was very helpful. Could you tell us the reasons (which i may not know), why Max Life eterm plan which have less premium and is also best comparatively to ICICI prudential, HDFC life in many parameters, is not listed in this top 5? Please dont say that, if you comfortable with it go ahead. I would like to know what reasons you think bad about Max Life made you to not list under top 5.

    1. Jeyraj-There is no biased reason to out Max from my list. I short listed from above creteria. It does not mean MaxLife is BAD. Premium varies based on thier acturies product design, company’s profitability margin and many more things.

      1. Hi Basu,

        According to the above criteria

        1) How old is your insurance company?

        ICICI Life–15 years
        HDFC Life–15 Years
        Max Life–14 Years

        Don’t think 1 year big difference.

        2) Claim Settlement Ratio

        ICICI Life–93.80 %
        HDFC Life–90.50 %
        Max Life–96.03 %

        Max Life has better claim Settlement ratio

        3) Cost of Term Insurance–

        According to your report

        ICICI Life–8906
        HDFC Life–10332
        Max Life–7400

        But When I checked in HDFC Life and ICICI Life websites, premium for ICICI Life and HDFC Life almost same for same setting Pure Life option. But in Max Life premium was ~2000 Rs less than these 2 and this gap widens when current age, term, sum assured increases.

        So here too Max Life scores best

        4) Plan features

        Max Life:

        Minimum Entry Age–18 Years
        Maximum Entry Age–60 Years
        Maximum Expiry Age–70 Years
        Mode: Annual Mode only

        So In Max Life only option given for paying premium is Annual. But Its advised by many pay premium annually to save premium cost, transaction charges. Doesn’t it look good. Why it was not highlighted in Green above?

        Also, I want to add another 4 criteria’s

        5)Solvency Ratio

        As on 31st Mar 2015

        ICICI Life–3.37
        HDFC Life–1.96
        Max Life–4.25

        So here too Max Life scores best

        6) Status of Grievance % Resolved during the Year

        ICICI Life–99.50
        HDFC Life–93.01
        Max Life–99.98

        So here too Max Life scores best and even ICICI Life

        7) Status of Grievance Pending More than 30 days

        ICICI Life–10
        HDFC Life–2025
        Max Life–0

        So here too Max Life scores best and even ICICI Life

        8) Claims Pending at the end of period 2014-15

        ICICI Life–0.78 %
        HDFC Life–2.26 %
        Max Life–0.07 %

        I have compared Max Life only with ICIC Life and HDFC Life because those are listed as top 2 private insurers in this list and it was advised to take Eterm with only 1 or 2 insurers, not to split much between insurers.

        In all the above criteria only Max Life scores best. Also if you think nothing bad about Max Life, why its not in your list of Top 5. We all here reading your blogs hoping its unbiased. Whatever, we appreciate your efforts to help us to gain some knowledge about these financial planning for free.

        FYI…I am not an agent or supporting any insurers. I already have 1 Eterm Inusrance with LIC for 50 Lakhs and looking for Private Insurers for 1 crore sum assured to save premium cost. I have almost decided to go with either ICICI Life or HDFC Life and Max Life was never in my list after reading your article. But after going through IRDA report, MAX Life looked better or approximately equal to ICIC Life or HDFC Life and so checked Max Life eterm plan premium which is almost 2000 Rs less from ICICI Life, HDFC Life for 31 year old, 30 year term, No Smoker, 1 Crore sum assured. This gap widens if age or sum assured is high.

        I keep replying here, just because whoever read this article should not be misguided and they should know MAX Life also in top 5 to consider.

        So According to my through research across many websites and blogs, below are my suggestion about Eterm plan.

        Whoever feel comfortable only with Govt backed Insurer, Go with LIC, but ready to pay High premium almost 2 times of private insurer. Or split 1 with LIC, 1 with private, so on average will be less premium cost, at the same time you will feel comfortable.

        Private Insurer Top 2:

        1. Max Life eterm any option as per your nominee knowledge of managing Lump sum, else go with income option

        2. ICIC Life Pure Life option (If you want Lump Sum),HDFC Life Income Plus option (If you want monthly income)

        Maximum Expiry Age: 60-65 years or until you feel your nominee/dependents depend on your income (Go beyond 65 only if you marry late above age 40 or have below 5 year old kids @ age 45).

        Number of Term Plan & Number of Insurers: 1-3 Maximum…Plan to have More sum assured in the period of your child birth upto the age of 25-30 years old.

        At What Age to take: 1 Term Plan– Before Marriage and another after Marriage. If you still feel under insured, try to increase sum assured of 2nd term plan. Take 3rd term plan only if you have availed loan.

        These are my findings, suggestions for a salaried Middle class, May or May not work for you. Please decide according to your conditions and life.

        1. Dear Readers ,
          I just want to add one more criteria to see – Amount of claims paid in terms of benfit amount-
          As per IRDA report 2014-15, the position is as under-
          1. LIC—95.51%
          2. Max life –93.59%
          3. Star Union–91.54%
          4. Sahara life — 89.86%
          5. TATA AIE – 89.54%
          The position of HDFC life–65.5% and ICICI is 79.56%.
          This parameter can be taken to see that although the company has settled more claims but reduced the claim amount.
          Any comments for above please.

                1. I had checked & this is the output for amount paid per number of claims :-

                  amount paid in Cr No of claims paid amount paid / no claims
                  1. LIC – 9055.18 742243 0.01219975
                  2. HDFC – 263.52 11031 0.02388904
                  3. ICICI 352.86 11546 0.03056123
                  4. MAX 245.46 8786 0.02793763
                  5. SBI 305.40 13303 0.02295723

                  MAX life still looks better than HDFC.

                    1. Basu-Although ICICI is paying avg claim amount of 3.30 lacs but point of worry is that average rejected claim amount is 11.47 lakh. This shows ICICI is reluctance for payment of higher claims.

                    2. Hi Basavaraj & Pranav,

                      Four months back, I decided to take HDFC Term Plan for 50 lakhs and ICICI Term Plan after few days. But as I had some doubts, I kept on postponing. I cleared those doubts with Sreekanth of Relakhs and however I see fall in HDFC Claim Ratio etc. and as a final option I checked your blog.

                      After reading your discussion, I just google’d about Max Life and came to know that Max Life & HDFC are going to be merged. Now, which Term Plan do you recommend.

                    3. Sanjay-Is corporate merger actually affects an individual? Don’t think too much. Just buy with the company which you feel comfort, affordable and features matching. People spend so much time on researching on a simple product called term insurance. Don’t do that, it is not a rocket science.

        2. Jeyraj-First thing let me make it clear. I am neither for nor against any companies. Because at the end what matters to me is readers than insurance companies. Second thing, I have to short list 5 not more than that (as per the heading of post). So I did, but it does not mean that MaxLife is bad or rest of other companies are BAD. I am not here to promote any particular company. Look at the plan features, there others score more than MaxLife in few features. That is the reason I may left that.
          But whether I pushed any particular company or product through this post? I stick to my unbiased views. At the end it is YOU who have to decide.
          Now regarding number of term plans, do you feel 2-3 enough? There is a misconception among us that we stick to either one or two term insruance. But you must review your insurance at least once in a 5 years and based on that you must increase the sum assured. We all have mindset that if we have Rs.1 Cr, 2 Cr or 3 Cr insruance means it is enough. It is not the case. Hence, it is not worth to say that ONE must buy term insruance to the maximum of 3 only. It is continues process, which we must analye the requirement. The financial status of today is not the same of tomorrow. Future is uncertain, that’s why we bend at insruance. Am I right?? 🙂

          1. Hi Basu,

            So, you are saying that except plan features Max Life is best. So, Incase If you would like to, Please modify the article to put Max life in 2nd place (add condition whoever want to go for Annual pay option and entry age before 60). Would be helpful for those who will be redirected to this page while searching for online term plan. Let them decide based on their eligibility. Not many will read all these comments. Please remember that these kind of article influence decision for those who have less information about Term plan, feel lazy to go in depth, even if you mention disclaimer “its upto you to decide in the end”.

            And for Maximum number of Term plan, I said 3 because we should take maximum sum assured in 1 or 2 term plan and don’t split with myth of if 1 insurer rejects, other will approve. Of course if one feels under insured, they should take many more, I’m just suggesting to club it within 3 if possible.

            1. Jeyraj-Instead of modifying the Top 5 list, I keep all data as it is. Let the readers decide. If they felt features best of MaxLife then they can opt it. At the end of the day, I short listed based on all creterias which I gone through. I have not hid any report just to hide MaxLife. But put it openly to all to decide on their own.
              I agree about splitting. One must not split. But at the same time, buying any insurance is not ONE time issue.

  37. Dear sir,

    Nice article and discussion. Am 37yrs old NRI staying in Bahrain. I am looking for 4cr term insurance policy. Max Life, icici, birla said they don’t provide nri cover. I dont know about hdfc. How is aegonreligare and metlife. Is it good? Kindly suggest. Thank you.

  38. Hi Basu,

    Thanks for your reply. whatever the reasons, it would be just excuse. According to the report, if many grievance (large gap compared to other insurers, only 93.16 % resolved) is pending more than 30 days shows the customer service is not good, right? it means something wrong in their customer support (either inadequate support persons to resolve or unwilling to settle the claims…etc), atleast as of now. when we shortlist insurers this also does matters, right?

      1. Hi Basu,

        If we consider claim settlement ratio by assuming all are genuine claims, we should also consider Grievance resolve percentage assuming all are genuine Grievances. Also, we should consider How many claims pending more than x number of days, average claim settlement days, how many Grievance pending more than x number days.

          1. Hi Basu,

            Take an Example…Out of 2 candidates, one scored 95 % and other scored 90 %. Who will you select? will you look in to the personal reasons in depth of the second candidate while shortlisting? will you take risk of selecting 2nd candidate over first by assuming/listening to his reasons for not scoring.

            1. Jeyraj-I replied to your all questions. Now it is YOU to decide of which is BEST. I am not here to promote or degrade any companies. I hope you checked the plan feature option of the above post. Also, do keep in mind that IRDA data about insurers is RAW onw, judging your company based on that is a biggest MISTAKE. 🙂

              1. Hi Basu,

                We all are forced to rely on IRDA report including your blogs, many other blogs, websites…etc. Do we have any other option?

    1. Mr Jeyraj,

      Why you are promoting Max life so much???
      Leave it with users to decide what is best, with whom they should go. Browse google and you will see n number of websites promoting some brands and nobody care to answer or resolve doubts. If Basu is doing his part you should appreciate it instead arguing. Take some time and get you website/blog rolling with information and then see if you can answer each and every query as he is doing….

      Humble request!!! Appreciate rather than criticising, we understood your opinion, thanks, now leave on us to decide what is best!!

      One more thing, I am not a friend or hold any kind of relation with Basu, I am just trying to understand investment through his website & user comments from a week so….

        1. Don’t get upset or demotivated, as you must be knowing from comments there are lots of follower and listeners of yours than distracters. Nobody in world give advice free of cost. If it is made available there would be people around to felt jealous.

          We truly admire your work, research & opinion. Your opinion gives a reason to think, to follow or not to follow it all depends on individual. Atlast market is subject to risk.

  39. Could you tell us the reasons (which i may not know), why Max Life eterm plan which have less premium and is also best comparatively to ICICI prudential, HDFC life in many parameters, is not listed in this top 5?

  40. In IRDA Annual report 2014-15, Why HDFC standadrd Life have 2025 Grievance pending more than 30 days which is very high compared to other insurers of same size?

  41. Hi Basavaraj,

    Is there any problem going with Max Life? There is almost Rs 2000 of difference in annual premium between ICICI Vs Max Life. Why there remains a huge difference in premium like LIC, ICICI or MAX? Do they factor the premium on the basis of claim received?

  42. Hi Sir, My name is venkat. My age is 32 yrs and Im diabetic. Same was disclosed to hdfc for the term plan click2protect.I opted for 1 cr term plan for 33 yrs(till 65yrs) along with cancer care, accident and critical illness riders. Now after medical examination they have increased the initial premium which was Rs 2500 to Rs 3600 claiming medical diabetic conditions. Should I go ahead or reduce the premium by removing the riders and opting for only 1cr death benefit ? Will taking riders separately have any big benefit in terms of insurance premium amount and cover ?Its almost a month having applied and only now they have comeback on this. s it worth going with premium mentioned ?Is there any diabetic specific rider plans which will help ?

  43. Pradeep Salian

    Hi Basu,

    Very Nice article, Please keep sharing your well versed knowledge.
    Can you please give me a suggestion.
    Im 36 years of age,smoker. Earning 8.5L p.a, I want to take a Term Plan of 1.5 Cr for 30-40 years. Companys include multiple option n riders, Accidental, CI, extra life, monthy income etc. Here I got confused.
    Wheter its good to go for it.

    Or if i take 75 Lac Term plan and 75 lac some investment plan. if so please suggest some company to go for it.
    I think HDFC life, ICICI Pru life, MAx life, Bajaj Alianz, which one to go for from your view point.

    Smoker : Yes
    Annual Income: 8.5 Lac
    Entry Age: 34 Years
    Term : 36 years (Till 70 Years)
    Ideal coverage: 1.5 Cr (18 times of Annual Income)

    Max Life 28,983/- p.a 39 YEARS
    PNB Metlife 28,800/- p.a 34 YEARS
    ICICI iprotect-smart : 29,289/- p.a 30 YEARS
    HDFC click-2-protect 36,877/- p.a 30 Years

    Which one to go for? Please suggest

    1. Pradeep-Go for plain term plan than any riders or payout options. First, understand how much insurance you need and for how long. You claim to be looking at Rs.1.5 Cr term insurance and suddenly for Rs.75 lakh insurance. Also, be specific of your case there is a gap of 10 years in assumption.

    2. ICICI Prudential Life Insurance

      Dear Mr. Salian,

      ICICI Pru iProtect Smart is the ONLY term plan that offers life cover along with health cover for 34 major illnesses like Cancer, Heart Attack, Kidney Failure & more.

      In case of permanent disability all future premiums will be waived off. You can also opt for double coverage with accidental death benefit cover.

      To know more about this plan, please visit the below link and fill in your details and we will have one of our experts assist you.


      Team ICICI Pru Life

  44. Dear Sir,
    I just filled the ICICI term insurance application online today. I received a PROPOSAL CONFIRMATION pdf in the email . It mentions that MEDICAL TEST DETAILS – NO MEDICAL TESTS AS PER INITIAL UNDERWRITING.
    Does it mean, they will not conduct the medical test ? If so should I insist for medical test ?

      1. Ok Thanks.
        Let me see what they are going to do . In the worst case, if they do not do medical tests, how to reject ? The payment is already made through credit card.

          1. Pradeep Salian

            After taking Policy, why they will ask for Medical test again. If they don’t do it while taking the policy

  45. Suraj Bharadiya

    i have to take a term plan of 75 lacs but i am confused regarding PNB Metlife and Max Life because i require Total Disability and Monthly income. Both have different policy like monthly payment, different term years and claim settlement ratio.

    1. Suraj,

      I have very bad exp with PNB metlife personally. I guess Max will be good.
      I am moving to Max from PNB.

      1. Hi Suraj,

        you mentioned like u had very bad exp with PNB metlife.please let me know the reason and it that some thing related to claim or something else..?

      1. sandeep chaudhari

        Hello sir,
        1. Want to select term insurance to secure the home loan of 25 lac for 25 yrs period, my age 34 yrs, non smoker. Want safe term plan. What can be best one?

        2. Is it good to assign term insurance policy to home loan banker?

        Thanks for information provided in above blog, really helpful.

  46. Dear Sir,
    Thank you very much for your valuable suggestions.
    I think considering all aspect I should go for policy term till 60 Yrs and 3Cr of SA for ICICI Pru iProtect Smart.
    However I did a basic comparision on premium amount between age 60 Yrs and 70 Yrs, I found both premium payable is almost same with not significant change in SA.

    Till 60 Yr age ( 19Yrs) – SA – 3 Cr. – Premium -35,836/-
    Till 70 Yr age ( 29Yrs) – SA – 2.2 Cr. – Premium -35,743/-

    Do you feel, the option-2 is good ? You loss 80L SA and get 10 Yrs coverage. Does it make sense ?
    DOB – 20-JUN-74


  47. Dear Sir,
    I have decided to go for term insurance from ICICI prudential i.e ICICI Pru iProtect Smart after reading your blog and doing some research online.
    My personal details :
    DOB – 20-06-74 , NON-SMOKER, ANNUAL Income – 25L (after tax), service – IT industry, one kid 6 yrs age

    1. What should be duration . I know your advice is to take till retirement. You know in IT industry it is difficult to predict retirement age. Also you get fired from job at anytime. If one can continue till 50-55 age it would be great achievement. Should one choose till 55 or 60 or 65 age?

    2. What is the amount one should take . Should I go for 15-20 times of annual income or just 1 Cr ?

    3. Your advice of taking separate accident cover and critical illness cover from general insurance company is appreciated. However should I take these insurance. How to decide whether it is required for me or not ? If so what coverage amount is appropriate ? What are the good plans from general insurance companies ?

    4. As per your suggestion, I am taking the vanilla term insurance of ICICI Pru iProtect Smart.

    Kindly see if you can answer these quieries.


    1. Santosh-1) 55 yrs. 2) Better beyond 20 times. 3) Yes, you must buy them. There is no such yardstick like life insurance about the quantum of these insurance products. 4) Good..carry on 🙂

      1. Thanks a lot Sir.
        Is ICICI’s Payment term (Limited option) good ? Say your policy term is for 30Yrs, but you pay premium till 25 yrs ?
        Or Regular option is better ?

  48. Dear Sir,
    Is there any difference if we take term plan from policybazar portal and directly from ICICI prudential portal ? I entered my details in policybazar and they are almost forcing me to take from their portal. Is there any difference in premium or any other issue ?


    1. ICICI Prudential Life Insurance

      Dear Santosh,

      We are happy to know that you have decided to cover your life with ICICI Pru iProtect Smart term insurance plan.

      You can purchase this plan by visiting:

      Please fill in your details in the link above and we will have one of our experts assist you with your concerns.

      Team ICICI Pru Life

  49. Dear Sir,
    Your blog is one of best source of knowledge. I went through it thoroughly and also your answers to the queries. I have decided to go for ICICI term insurance. However I have few questions, which I have e-mailed you with personal details. Kindly see if you can reply the same.
    It would help me to take a decision fast.


  50. Sushil Sharma

    Hello Sir
    Greeting for the day! How are you doing ?

    Dear Sir, I am 25 years (11/12/1990) old self employed (business) & Non Smoker with no medical back history.
    I have started business from November 2014. Now i am earning 13 to 15 Lakh per year (Profit)

    I want to purchase Term Plane. In the same regards, i want to know first, but it online or off line ?????
    I need 1 Cr Sum Assured for the bad time.

    Sir, please suggest with which company should i go ?? & Also suggest with which plan should i go ???

    I want to also know that it would be better to buy rider for accidental or should i purchase separately ???

    No back ground history for critical illness. so should i test my self before buying the plan ???

    Hope to have your valuable reply at the earliest.

    Sushil Sharma
    SRI Equipments

  51. Thanks for all your effort in helping people in unbiased way. really appreciate your initiative.

    My wife has eterm plan from Max life for 1.2 crore. I want to do the eterm from a company from whom settlement is easiest but at the same time don’t want to pay too much (LIC listening?). I am confused between which eterm plan is best for me, in term of settlement. Could you please tell on basis of your experience that which one will be better is my situation. Preferably, I am interested in eterm plan from company other than Max life because we don’t both husband and wife but your suggestion is very helpful for me to decide. I have two questions
    1) I am confused between LIC, ICICI and max life. Could you please rank them for me please?
    2) If I want term plan of 1 crore, Can I take 50 lakhs LIC for 27 years (retirement) and another 50 lakhs from ICICI (35-40 years) to reduce the overall cost?

    Many Thanks for your suggestions in advance.

      1. Dear Mr. Basavaraj,

        Kindly suggest

        1)whether I can go for 50 lacs with LIC and 50 lacs with ICICI. is this acceptable to both the company and is there any impact in claiming the amount in event of misshaping with insured person. Any kind of risk is associated with this.

        2) In your comments, you mentioned that accidental death benefit rider should not be clubbed with term insurance. I want to know why. Any risk that they don’t pay that or any other risk as cost wise, it looks ok. and with respect to other rider like critical illness, I am not much worried looking into medical history.

        3) Can my wife ( Non working) be also included in either of cover with me in LIC or ICICI.

        Thanks in advance for nice suggestions in this forum.

        Deepak Gupta

          1. Dear Basavaraj,

            Kindly let me know whether LIC or any other Insurer will increase premium if in between the policy term if one is found to be have some illness.

    1. ICICI Prudential Life Insurance

      Dear Prem,

      At 93.80%, we are happy to share that our claim settlement ratio is one of the highest in the private life industry. You can read more about our claim process and philosophy by visiting:

      If you have any further queries about this plan or want to purchase the plan, please visit: and fill in your details and we will have one of our experts assist you.


      Team ICICI Pru Life

  52. Hi Basu,

    I am 33 and smoker,
    I am planing to bay Max life term Insurance plan for 1.5 cr. witch is the bast way to bay term plan online or offline.
    If Required, Please give me a right product term insurance plan company name.

    your valuable feedback is appreciated.

    Thanks & Warmest Regards & Respect,

    Virendrakumar Masani

  53. Hi,

    I’m a graduate student studying in USA and also working as research assistant. It’s been more then 1.5 years that i’m staying abroad.

    Currently, i’m in India for a short trip and thinking to buy ICICI insurance term plan. I need your suggestions on following points:

    1. Do i come under the category of NRI or Resident Indian for insurance buying purpose?

    2. Is ICICI term plan a good option?

    3. Since, i’m a student and i do get salary in USA, will there going to be any issues with income to be shown for term plan purpose? Can a student buy insurance?

    4. I worked in India for 3.5 years before moving to USA, so i do have ITR for all those 3.5 years.

    1. ICICI Prudential Life Insurance

      Dear Vijay,

      We are glad to know that you have considered protecting your family with ICICI Pru iProtect Smart term plan. iProtect Smart is the ONLY term plan that covers your life along with 34 major illnesses like Cancer, Heart Attack, Kidney Failure and more. With this plan you can opt for a critical illness cover of up to Rs. 1 Cr, you can avail the entire critical illness cover on first diagnosis of the listed 34 illnesses.

      To know more about this plan you can visit: and fill in your details and we will have one of our experts assist you with your queries.

      You can also leave us a message on our Facebook page and we will have a call back arranged.

      Team ICICI Pru Life

  54. Ram Mohan Rao

    Hi Sir,

    i am Ram Mohan from Hyderabad, i am planing to start TERM POLICY in this year.
    i searched so many policies in online and asked my well-wishers. But i didn’t get proper response.
    Can you please suggest GOOD and Suitable policy for me..

  55. Hi,

    I am 36 and non-smoker, recently AEGON team contacted for term insurance and looks some thing good. But I am in confusion whether I can go or not to take it. Premium wise they are less than HDFC and ICICI.
    Any your valuable feedback is appreciated.

      1. Hi Sir,

        That is Confusion, I have. I don’t know any thing about the company. And they are saying that their clime ratio for the year 2015 to Sept 2016 it is 92% and Premium wise it is very less when I compared with HDFC and ICICI. But I am not expert in this Term Insurance area and absolutely it is funny to ask any one experience since they may not alive to know . So Only experts can share their feedback since they will in this market.
        And please consider this is my sincere request and Advise the best term policy and I will blindly go through it.

        Hope you understood my situation.

  56. Hi I am 32 year old non smoker and have purchased pnb metlife mera term plan with 92% settlement ratio however in your opinion it is not in top 5. I am still in free look period. Should I look on other companies? As the premium was also low and product was good I bought it. Pls suggests.

    1. Hi Basa Sir,

      I was tricked by Metlife that the SA will be 1.5 cr however they added the same in variable and SA they made is 1.04.
      I have read the document carefully and inquired that MISS SELL the policy to me. I did not agree on any other letter ahead they were trying to provide me explaining that SA will be 1.5 cr. I asked for 100% premium reimbursement.
      Not sure if they will do it.

      I now want to select Icici and Max where premium of Max for 1.5 cr is 13,900/- and ICICI is 15,341/- both inclusive of taxes. Basic term plan lumsum pay.

      What you suggest?

  57. hello sir,
    I want to invest my savings in SIP.Which SIP plans are good to make 50lakhs in 10 years.I can invest from 5k – 10k per month and can you tell me about equity ??

  58. Thank you for such an informative article. Really helped me in my decision.

    I’m 27 and I am thinking of buying HDFC click2Protect Plus with a cover of 1 Cr and the Accidental Disability Rider.

    However, you’ve mentioned “Never buy combo products, which offer riders or some death benefit payout options.” and “Buy accidental insurance separately from general insurance companies.” So, I just wanted to know if it’s wise to buy AD rider also or just the basic term plan. And in case, just the basic plan, could you kindly advise why you would not recommend AD rider with it?

  59. Vishal Marathe

    Hi Basavaraj,

    This is a great article for anyone who has no idea about Term insurance as it clears most of your doubts and queries related to term insurance. Going by your analysis or whatever I have read so far on other portals one thing is for sure that the fight/confusion/inclination is more towards either LIC or ICICI with Pros and Cons on both sides.

    I am a 33 year old male who earns 10L p.a. and already investing 1.5 L a year in life insurance, accident insurance, medical insurance, ppf, etc. Now which of the following scenarios is most viable

    1) Buy a term insurance (till 75 years) of say 1cr from LIC and have my wife and my child as the nominee – in this case for how many years will I have to pay annual premium amount, is it 42 years (75-33) or 35 years from now?

    2) Buy individual term insurance of 50L each for me and my wife and have the other one as the nominee along with the child. This will cover us both for our given life terms and in turn our child as well. So does it makes sense to buy two individual policies of 50L? If my wife decides to leave her job then in that case I will anyways pay the premium for a 1cr policy (in reference to point 1). The only drawback here could be the rise in premium since we will go for individual 50 L policy rather than a single 1cr one

    Please provide your expert guidance as my final decision rest on the resolution of these two queries.

    Vishal Marathe

    1. Vishal-1) It is 42 years.
      2) If your wife is not an earning member, then LIFE INSURANCE is not required for her. You must treat individual’s requirement. The question here is whether Rs.1 Cr suffice or not. Decide and act.

      1. 1) so even after my retirement I will have to pay that amount?
        2) So your are saying go with only one term plan rather than splitting them in half for me and my wife?

        1. Vishal-1) As term ends, your premium payment stops there itself.
          2) I am saying understand your requirement buy based on that. Understand your wife’s requirement and buy for her. Don’t say Rs.1 Cr insurance I need. Let me split between me and my wife.

  60. Very informative article.

    I have query regarding the term plan taking from two different insurance comapnies…

    Is it advisable instead of taking one policy take 2 policies from different companies.
    eg instead of taking one insurance policy of 1 Cr. from ICICI prulife should i take one policy of 50L from ICICI prulife and 50L from HDFC life.

    Thanks & Regards,

  61. Thanks to aware us regarding Term Insurance.

    I am working in private sector while my wife is a govt employee. I am looking to buy a term insurance of Rs 50 lakh. Should i purchase term plan for both or is it better to have one term insurance policy. for whom should i buy term insurance . if we buy term insurance then why we need other accidental insurance ? whether term plan doesn’t cover it?

    Pl suggest

    Thanks & Regrds

    1. Vaibhav-You both are working and both of your income really affect each other’s financial life, then you both MUST buy a term insurance. Ideal coverage must be around 15-20 times of yearly income. Term insurance will come into picture when the insured person die. However, if you met with an accident and turn to be disability, then accidental insurance will come into picture.

      1. Thank you very much for suggestion..

        Did you write any post related to Accidental insurance. pl provide web link of same.

          1. Dear Sir,

            i asked to Kotak and ICICI for term plan …ICICI representative had suggested to add critical illness rider. But i am not going to add this as you suggested above.

            Pl advise which company is best as there is no major difference in term of premium.
            what should be the tenure for term plan? upto 60 yrs age or 70 yrs

            Thanks & Best Regards

              1. Sir please suggest which mode is best to

                how nominees should receive the payout

                regular income
                increasing income

                please revert

                  1. Hi Sir,

                    I purchased a term plan from Kotak, Sum assured is 75 lakhs. As per your suggestion i have purchased it for 30 year i.e upto my retirement age. For above criteria premium is 6782 rs. and if I purchase it for 40 year means upto 70 years of my age then premium would be apprx 7700 per month. Sir Dont’t you think if i am paying 30 K + 77 K=1.07 lakhs extra to company than it would be more beneficial as there is more chances to die before 70 years and in this case our child would get benefit of Rs 75 lakh & I have to pay only 1.07 lakhs extra. This is my opinion.

                    I need expert (Your) advise.

                    Please suggest.

                    Best Regards

                    1. Ok sir as per your opinion it is not good to increase tenure.

                      Sir can you please guide what is the loss if we increase the term.
                      I agree that we should try to cover risk but never try to benefit from term insurance. But if family member can avail benefits why we should avoid long term.

                      Can you write a short note.. I am still very confuse.

                    2. Vaibhav-Just calculate the value of your sum assured planning to buy with the term of 30-40 years with inflation of 6% (minimum). Then you will come to know the current high value of insurance so small during your retirement.

                    3. Hi sir

                      KOtak issued me policy withour any medical examination.
                      I asked to them for medical checkup then as per kotak there is no need of any medical.
                      Should i make any objection or is it ok
                      please advise


                    4. I have already paid my premium.. today i asked to kotak life insurance..
                      Kotak has already dispatched the policy document without any medical..
                      Now as per your suggestion i should cancel this policy..and select other insurer.

                    5. Hi SIr,

                      Ok sir i will cancel it if they don’t agree for medical examination..

                      Sir what is disadvantage for customer if insurer issue their policy to customer without any medical examination..

                      Please revert.

                      Best Regards

                    6. OK Sir,

                      Today i again discussed with KOTAK life insurance regarding Medical Examination but Kotak is not ready to do.
                      Then I discussed with Max life insurance for new term plan (in case of skipping KOTAK), they are also saying same that it is not necessary to do medical examination and Max also can’t commit regarding medical examination. It seems they will also not do Medical if i will go with Max.

                      Kindly suggest what should i do..

                      You above stated that IRDA amended the Section 45 of insurance act. According to this, if the policy continued for 3 years or more, then insurance companies cannot reject the claim. then why should we worry if insure doesn’t do medical examination.

                      Please revert.

                      Best Regards

                    7. 🙂

                      Now what is your opinion?

                      Skip the KOTAK or contniue
                      but in case of skipping, which company will commit that they will provide Term insurance after Medical only.

                      Please guide sir.. Now i have limited time for cancellation of policy.

                      Thanks & Regards

                    8. Vaibhav-I am not saying to skip. But I am saying it is SAFE to buy with medical examination. You can check with other insurers by calling them directly and providing details like your income, age, sum assured you are going for and term. If they are ready to issue with medical examination, then go ahead. Not a big issue.

  62. Saleem Didagur

    Dear basavaraj
    I am 47, non smoker, wants to buy term insurance which I never thought till I read your blog.
    Employed in private firm.I know I am late but still can I buy considering my age?.
    I am bit confused when I check online, I want for 10 year(premium payments) but it shows 60 years, does that mean even if I pay for ten year term, the policy will be in force until 60yrs. age? Some web sites show more than that.
    Kindly clarify.
    Appreciate your guidance.

    1. Saleem-There is the difference between premium payment term to policy term. Please check it with the particular product you want to buy. For example, if the premium paying term is 10 years and policy term is 30 years means you have to pay the premium only for 10 years. After that you no need to pay anything. However, policy will be for 30 years term and feature will continue till 30 years of term. Hope you got clarity now.

  63. Hello

    I am 33 years old. I have Birla Sunlife Protector Plan for 2600000 which increases Sum Assured by 10% every year for 30 year plan. I pay around 13000 per year as premium. I have paid the premium for 3 years. Last time I purchased the plan I bought it as there was some rider benefits. Am I paying high premium for the sum assured of Rs. 3500000. Please advise if I should opt out and buy ICICI term insurance plan with higher sum assured for the same premium I pay.

      1. Hello Basavaraj

        Thanks for the reply. What is your whole opinion on the Birla Sunlife Protector Plan I have right now. Is it a good product where in the Sum assured increases by 10% every year while the premium remains the same. But the negative side of this the sum assured is not great multiple of my current annual income. Am I paying high premium for the low sum assured.

        1. Vinay-The catch here is the yearly 10% increase in term insurance coverage is already factored in your premium, which you are feeling that they are increasing the cover without extra premium. If you feel you are underinsured, then you must increase.

  64. Hi Basavaraj,

    I am 33 year old and non smoker and I am confused to choose best term plan for my self.
    I am confused in between Lic eterm plan, icici an hdfc. Please suggest ..which on is best for me.

      1. Hi Basavaraj,

        Thanks Basavaraj, for qucik reply.

        I think , I can afford icici and hdfc now. So I Should take accidental benifts, it will helpfull or not. And one more thing, I should two term plan with different companies, one for long periods and second for less period. Or form one company only.

        Please suggest.


        1. Rohit-Then go with either of the one. Yes, accidental insurance is must, but don’t combine this with life insurance as rider. Buy separately. Why one for longer period and one lesser period?

          1. Hi,

            I think, I might be able to pay premium after sixty year or not. So i think i can close on eplan after 60 and other will be continue . And I am confused, the private company may create problems for my family to settlement or not. I heard many people they create panic for family members to pay amount. Even I have good experience with Lic. They gave check my mature lic with in 30 minutes.

            1. Rohit-As you grow, your insurance requirement will also grow. You are doing reverse and making your dependents at danger. I will not defend private players nor LIC too. It is purely your comfort to decide on your own.

                1. Hi Rohit,

                  Have u reached any Decision?
                  I had same doubt in mind
                  but simple funda is go with the Exp.

                  Me also opted LIC only, though my premium is almost double than the hdfc or icici.

                  just to note: me also not agent of LIC

  65. Hi Basavaraj

    Thanks for writing an informative article.

    Can you please clarify why we should not split the cover between two companies as it splits the risk of getting the claim from one company if the other company rejects/delays the claim.

    Thanks and regards

    1. Aashish-How can you say firmly that by splitting one company accept in case of another company reject it? What if down the line, the data of all insurance companies be centralised like in Europe? What if being known the insurance details of yours, rejected insurance company inform to another company that they rejected the claim based on certain facts?

      1. 🙂 What would be the reasons of claims being rejected and few insurance company having a lower claim ratio than others?

        1. Dear Mr. Basavaraj,

          Can you please provide some basic reasons to reject claim based on your experience so that those things can be taken care by us.

  66. Had one query. Currently confused between Max and ICICI basis my need..ICICI however offers insurance without medical test while Max offers with Medical tests I believe. Is there any harm in opting for insurance without medical tests?

  67. Hi Basavaraj

    As per my analysis, I am planning to buy a pure term plan of 1 cr. from ICICI Prudential and Max Life of 50 Lakh each that will give me a freedom of premium, good facility and services and flexibility to stop anyone if not required. Also the total premium cost will be low in comparative to commutative one if buying from same vendor (except total Max Life)

    Would you think this approach is good? Do you think any other brand(s) can provide best services for 1 cr. term plan in absence to my family?

  68. hi,
    Thanks for this details post.

    I had a basic doubt, If we opt for a term insurance premium say 8000/year, basic value, will it increase year on year for the same SA, or remains same for the whole tenure.

    Kindly clarify


      1. HI

        1) The SA will be remained same through out the term until any Bonus added to SA.–ami correct ?
        2) how about the premiums to be paid for termplan , will it be same for the entire period?
        say i take a term of 50 L with Annual premium of 9000 for next 30 years.

        So in this case my premium will be same of 9000 or will it be increased in the next year?

        Kindly clarify


  69. Hi BasavaRaj Sir,

    This is Kiran,Indian, could you tell me about the AEGON Life Term insurance plan.
    Do you suggest this?

  70. Dear Basu,

    I am a 39 yrs old smoker. Have checked ICICI or HDFC term plans for a 1cr cover. Although the premiums look exorbitant being a smoker I will take the plunge to insure the future. Couple of quick queries:

    1) I have furnished all correct information but will my premium increase post medical tests. If yes what is the tentative & increase?
    2) Do you suggest getting the same tests done at other reputed diagnostic centre to ensure (double check) the tests by insurance company recommended centre are correct and not meant to just inflate premium. In the end will they head to my contention if something fishy is found
    3) If my application for term insurance is rejected from one insurer does it mean it will be rejected by other companies also.


    1. Mohit-1) It may or may not. Because it all depends on your health reports. How much is also in doubt. No one can say this.
      2) You can’t do the test on your own. You have to undergo the test in the recognized center of insruance company.
      3) Not like that.

  71. I am 50 years old Indian, planning for pure term plan. Then your excellent article came to my notice.

    In the para 2, Claim Settlement Ratio, you mentioned that 9 firms are having claim settlement ratio above 90%. You have excluded Star Union Life with red due to being new company. Then rather than going for 8 companies, you have compared rates of only seven in next para 3 i.e. Cost of Term Insurance. Is there any reason for excluding PNB Metlife as their rate is much lower than all other excluding Max life and Kotak. Both MaxLife and Kotak are private entity.

    Actually I have selected ICICI Pru iProtect Smart and PNB Metlife Mera term plan. Whether there is any fine point, which I may be missing in PNB Metlife plan as their rate is much lower in comparison with ICICI. I was planning to go with PNB Metlife, one partner being government entity (and also lower cost), hence likely to be more secure in long term. Please confirm that whether any disadvantageous point in PNB Metlife over ICICI.


    1. Ashutosh-There is no great logic to leave the PNB. Just I have to short list and may be I am biased. However, I look for the existing old companies. If you are comfortable with company then go ahead with PNB. But don’t be in wrong notion that PNB being public sector bank, so you be secured. PNB Bank is different and PNB Metlife is different entities.

  72. Karthikeyan G


    First thanks for such detailed informative article. Can you please clarify my doubts?

    1. I already have a term plan in LIC. Considering premium amount, i like to but a separate ICICI iprotect policy. During the time of claim, i hope it will be difficult to provide set of original documents to both companies. Will they accept attested copies from authorized persons?

    2. During this term plan, if i go for 1-2 years onsite (outside India) and if any death/accident happens there, whether the claim is possible with these policies?

    Thanks for time.

      1. Dear Mr. Basavaraj,

        Then in that case, is this advisable to take 1 policy of 50 Lacs today, and then can I increase the same policy or take new policy ( Answer expected keeping LIC n ICICI only)

  73. Thanks for sharing such valuable information shared.

    Kindly clear one thing, on each of the parameters based on your evaluation.

    MAX life insurance scores good, but still it didn’t make in the top 5.

    Any specific reason for not choosing MAX life? Is there any problem with them, coz i had registered for their term plan.

    Pls enlighten.

  74. Hi,
    Just gone through claim form for ICICI, it involves form for employer and needs last 5 years record of leaves and certificates….also medical claims made in last 5 years…..!

    How will arrange all this when employee is no more…………and what if employer does not have all records or refuses to give or multiple employers………….!

    Why at all employer is needed to be involved.

          1. Dear Mr. Basavaraj,

            Surprised to see that this kind of requirement also can be asked. Request you to please provide any checklist based on your experience that insured person should take a note after taking policy.

  75. Hi,
    I’m working in a Govt. sector as a contract employee. I am planning to join some pension scheme. After so much studies shortlisted Postal Life Insurance’s Santosh Plan and LIC’s New Endowment Plan. Could you please suggest which one will be better?

  76. HI Basavaraj,
    Thanks a lot for such a lovely post on Term Insurance.

    I am a NRI, I am 32 years old and I have a kid. Still I am confused between HDFC Life Click2 protect Plus and LIC e-Term.
    Please suggest which one should I go for ?

    Is it possible to email you for better suggestions?


  77. Dear Basavraj,

    Your posts are very informative.Thanks for writing.
    I am 38 years old now and I bought 2 Max Life term plans 7 back with SA totaling of Rs.35 lacks and premium of Rs.12500.Today I feel that this premium is much higher for the said SA.I further want to coverage to 1 crore.These are pure term plans so shall I discontinue them and buy a fresh term plan of 1 crore or just continue with them?
    Also I did comparison of term plans and found that PNB Metlife is cheapest with ratio higher than 90%. What will you suggest about Metlife?

  78. Hi Basu

    I took term plan(SBI E-Shield). Sum Assured : 50 lakhs. They told medical test is not required and accepted the policy. Is it okay or risky?

  79. Hi,

    You have given good information of term insurance plan.

    But i have a question regarding the cover which we take.

    If 100 people take life cover of 1 cr in these 100 people there may be two or three deaths. Lets say which are natural.
    So how the insurance companies going to pay 3 cr.

    From where they get these funds.


  80. Hi Basu, I started reading your blogs few months ago and these are very useful. Thanks for the good job that you are doing. Requesting your help to clear below doubts:

    1. It seems that the maximum death benefit coverage that one can get under Life Insurance is 20 times the annual income of the person. Does this death benefit coverage cap also include or exlcude the benefits that can be received under the employer group life insurance policy? Say a person with Rs.10 lakh annual income buys two life insurance policies from HDFC Life & ICICI pru for 1 CR each and also has a cover of 1 CR under the employer group life insurance policy. Upon death will he get 2 CR or 3 CR? Lets assume that he has made all disclosures.

    2. It seems that the maximum death benefit coverage that one can get under personal accident Insurance is 10 times the annual income of the person. Does this death benefit coverage cap also include or exclude the benefits that can be received under the employer PA policy? Say a person with Rs.10 lakh annual income buys two PA insurance policies from HDFC Life & ICICI pru for 50 each and also has a cover of 50 Lakh under the employer Health insurance that has a rider for PA insurance as well. Upon death, his max benefits under PA insurance will be 1.5 CR or 1 CR only? Lets assume that he has made all disclosures.

    3. Say above person dies due to accident, maximum death benefit coverage that one can get under life + personal accident Insurance is 30 times of the annual income of the person (20 times from Life and 10 times from PA). Is this correct?

    1. Siddesh-1) The maximum coverage one can get is depends on many things like age, health or income. Even some companies offer you higher sum assured. Once insurance companies offer you insurance, then it is apart from insurance coverage of what you already have or going to have in future.
      2) Why you are combining employer-provided insurance coverage with your own insurance? Also, as I said earlier it depends on insurance company like how much they offer you.
      3) Death benefit not depends on the income, but the insurance coverage you are having.

      1. Jainam Sanghavi


        Pls help us to guide with the basics of Term plan and Medical Insurances, if one has to start from scratch..
        For the basic understanding as one should look for what if starting a fresh in choosing the such term plans..

        I follow each and every post of yours, this is really great and I’m very much thankful to make us aware about such Financial insights..

  81. Dear Basuvinesh,
    How about PNB met life term plan and bajaj alianz full life cover(till 100th bday)? Can you suggest which is good? Am looking for higher term period, riders like critical illness, premium waiver etc. Kindly suggest.

  82. Is it advisable to buy term insurance by a person who crossed 45 years or 50 years?

    Because in such a case premium would be much higher and cover can be taken for 10 to 15 years at the most.

    This is happening due to many middle aged people in our country didn’t buy term plan in their young age. May be they had been sold (or mis-sold) traditional plans and now are trapped in those plans after paying 12 – 13 years of premium. Or term plans were not promoted by the LIC then.

    What is your view?


      1. Thanks for quick reply.

        But, then what a middle aged person should do to rectify this anomaly?

        Should he / she surrender his/her existing traditional plans and buy a term plan?

        Since if a person surrenders his traditional plan even after honestly paying premium for say 10 years, he won’t get the accumulated balance as communicated by LIC but a percentage of total premium he has paid in 10 years. So he suffers a loss even after staying put for 10 years or more.

        LIC agents never tell investors about this fact. Because I have gone through this ordeal. And as I earlier commented, millions of Indians are trapped in these traditional plans. They are confused as to what to do with these useless plans.

        Do you have any suggestions?


        1. Ritesh-You know why I am fond of LIC? Because I know 99.99% Indians trapped in this LIC. That is why I always write about it. For the aged of what you mentioned, they left with two options. One is to buy term insurance (may be costly but peace of mind). Second, to create corpus thinking that they not be there from TODAY.

  83. Hi Sir, I am 42 years old. I am a govt. employee. I have two kids. I am planning to take a term plan for 40 lakhs with accidental benefit.

    I have searched term plan of ICICI Pru I Protect Smart, HDFC life, SBI eShield and others.

    I have tentatively shortlisted 1st- SBI eShield and 2nd- ICICI Pru I Protect smart but SBI eShield is a term plan without pre-medical test.

    Kindly suggest/guide the better one and should I go with medical or without medical.


      1. Dear Basavaraj,

        I am not following this logic entirely. Even when someone is retired, they could still pay the premium from their savings or pension and upon their demise can leave behind a substantial amount for his wife or children who may still be in the beginning of their career and struggling to settle.

        If a 40 years old person has paid the premium for 20 years until retirement (60 years), why not go for a 25-30 years policy which requires him to pay the premium for another 5-10 years after retirement. Also, the chances of demise increase at this age, right? What is wrong with my thinking here?

        Satya M

        1. Satya-The wrong thing is in belief that the current Rs.1 Cr or Rs.5 Cr will be substantial amount after 20 years 🙂 Just for information, do you know the minimum sum assured LIC used to offer same 20 years back? Hold your breath…It is Rs.10,000. Now the minimum sum assured in all plans of LIC is Rs.1 lakh. Now the rest is left with you to calculate the inflation and all.

  84. Hi Basunivesh,

    Nice Explanation and importance of the term insurance. I have a basic question . I wanted to take a term insurance . I have small doubt. If we take term insurance with out Riders if Some things happens to insured person due to accident or critical illness then the insured will be covered or Not?

    Can you please let me know if the below is the good one? Edelweiss Tokio Life Insurance or ICICI protect?

  85. Thank you Sir,

    Earlier I was bit confused but Based on your opinions I have

    finally decided to get ICICI term insurance for my mother .


  86. Hi Basavaraj, This blog is very helpful in understanding term insurance and the approach to identify the one that best suits the need. Thanks for that.
    Can you please explain, why you have suggested to have pure term insurance without riders while having rider package seems more beneficial ?

    Thanks & Regards,

  87. Dear Mr. Basavaraj,

    Many thanks for your input,

    I have question, for term rider policy, we write nominee as our spouse, But unfortunately, if we both died at same time, then will our children or dependent parent get money, if yes then how.

    Best Regards,

  88. Hi, why did you not shortlist Birla Sun Life? It seemed impressive in all the metrics you were tracking I.e. CSR, Age
    Of the company etc.

  89. Dear Sir,

    Very useful information, it helps me lot to decide to purchase Term Insurance Plan..
    Thanks a lot for the same.I have referred whole article and all the comments and answer..

    Please also share useful information regarding Health Insurance, Home Loan etc…

    Ketan Patel

  90. Dear Basavaraj,
    I am 32yrs. old planning to buy a term plan either from ICICI or HDFC. But bit confused with whether need to take with rider or not(I am specially looking for PD due to an accident)

    ICICI : No rider with basic plan for 30 yrs. term & 1Cr. sum assured.During Permanent disability due to accident remaining premium will be waived off.
    HDFC : Basic plan with rider for permanent disability for 30 yrs. term & 1Cr. sum assured.They will pay 1% of sum assured till 10yrs. after PD due to accident.

    And one more thing in most of your reply you suggest for taking term insurance till retirement age. please let me know the actual reason behind this.

    Expecting your valuable suggestion regarding this.Please guide me.


    1. Suvendu-Buy a plain term insurance without riders. Instead buy accidental insurance separately from general insurers. I suggest term insurance term up to retirement age ONLY. Because after retirement, you are not an earning member. No need of insurance.

      1. Can you please suggest me some reputed insurance company who all are providing Accidental Insurance


  91. hi, can 1 individual take more than 1 term insurance plan in his name? for example: can i take 3 term insurance in 3 different companies? is there any restrictions?

  92. Sir, Thanks for sharing very informative things about term insurance. I just bought ICICI Pru iProtect Smart plan for 32 years – 9276/year.

  93. hello basu

    i am big fan of your knowledge and blog. and thank you for sharing such good knowledge.

    one straight ques from you
    you always says go with the company with whom you are comfortable.

    can you tell me of at the moment you want to buy any term insurance then which you buy and how much SA is perfect in your opinion please tell me a number i want your opinion, if your age is 30 years and upto what age and what makes you think to go for it?

    please ans it will clear my big confusion .

    2nd ques is

    Is ICICI iprotect smart protect every kind off death either its accidental or natural?

    i am thinking of ICICI iprotect SMART
    because of

    1. low premium in pure term insurance.
    2. it is of 15 years old second after LIC
    3. high settlement ratio as well as good solvent margin

    this is my opinion please ans according to my first ques i will be very much thankful to you for this.

    1. Nitish-Whether my person choice is exactly matches with you? No right? I can afford the premium and go with LIC. But you or some others may feel it biased towards LIC and may not afford the premium. Is it true or not? Hence, I always suggest to find your own comfort. I learnt from many examples that people tend to avoid ICICI or HDFC Life Insurance companies because they had bad experience with their banking partners. However, they don’t know that ICICI, HDFC or SBI banks are different from their insurance companies.
      Ideal coverage must be around 15-20 times of one’s annual income. Term must be up to his retirement age. Term insurance plans covers almost all types of death (with only few exceptions and you must read the brochure before buying). Personally, I too have term insurance with ICICI. But it is purely your choice to decide and go ahead.

      1. Hello Basu

        I wanted to know ICICI has many types of term insurances with riders
        Is ICICI IPROTECT SMART LIFE is the pure term insurance plan?

        And in this policy PAYMENT TERM is regular,limited and single pay what does it mean?

        ILLNESS BENEFIT and WAIVER OF PREMIUM ON DISABILITY . Is it additional feature in this policy that if some body is not physically well then his premiums are waived off.

        please tell me some more about this policy in these above terms.

  94. Should I purchase LIC , e-term , or LIC term plan , as I have got a feedback that when you buy online, you want get local support from LIC office, as premium difference is much ( around 22000/-) (age 36/-). Also in your opinion out of two which one is better HDFC pre 40000/- covered upto 75 years or LIC pre 70000/- offline or LIC e-term 46000/- covered upto 70 years

    1. Shalin-God of LIC will give you support. They can’t neglect. Otherwise they have to shut their door. For any company, customer is KING. Don’t worry about that factor. It is all tactics played by agents to sell offline term insurance products. For me both are good. Go with the one which you feel comfortable.

  95. Hi Basavaraj,

    Excellent article and very informative. Thanks.

    I have few queries:

    1) Can I have multiple term insurance policies from different providers and whether all the companies will
    be liable to pay the sum assured on Death?

    2) I want to take a cover of 4 Cr. Is it advisable to go with a single provider or
    split the sum assured between 2 providers?


      1. I would think it logical to split the sum assured between at least 2 providers. The odds of both rejecting your claim is surely less than the sole insurer rejecting it. Imagine your family’s plight if your sole insurer were to reject the claim on some technical grounds.

        1. Ashok-There is no logic. Also, considering the current technological adaptation by insurance companies, days are very near where they have centralized database at one point to fetch customer data like KYC in mutual funds. How can you that rejection of two companies is rare? While buying a second insurance, you mention the first insurance details. When it comes to claim for both the companies, do you feel they not follow up each other?

  96. Hi,

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

    1. Biswaroop-There is no logic that if one rejects then other WIL accept. What is the guarantee? Currently, insurance companies may not have centralised data to track their client. What if in future they set that (like in Europe countries), every proposal you apply with insurance company will be tracked. So stay with one.

      1. Dear Mr. Basavaraj,

        Wanted to know answer of above query that

        “I also have a couple of LIC policies (Jeevan Saral endowment plan), in the unfortunate event of death will the assured amount of both policies be paid out to my family, as lumpsum ? or will it pay out only the higher amount policy ?”

          1. Basavaraj – Suppose One has a LIC Jeevan Anand of 2 lac and LIC term of 50 Lacs. In event of unfortunate death, will one get 50 lacs or 52 lacs.

  97. Niraj Chitlangia

    Hi Basu,

    Please clarify the following points for online Term Plan:
    1. Whether we can buy Term Plan for Housewife who is filing ITR?
    2. Even if working period is over, why not continue with term insurance when we are able to pay to offload any financial load on the heirs for rituals.
    3. Whether we should buy from Policy Bazaar website or directly from companies website?

    1. Niraj-1) YES.
      2) What will be the current sum assured you opt now when you retire? Think and decide.
      3) Better to buy from direct insurance companies. Polibazaar nowadays acts like middlemen. They may give you biased choices.


    I want to clear one thing in my mind which always confused me.
    let us suppose if any of these companies (private) is drowned then what will happen to some one’s term insurance specifically.?

    2nd thing
    every one thinks LIC is government company go for that
    I s it true that All the insurance companies pays to IRDA if they do any thing wrong like ran away then IRDA will help those persons.?
    I also come to know Like other term insurance companies LIC is also same is it ?

    i want to go for ICICI and HDFC but LIC long track forced me to think about LIC .

    like ICICI and Other private called companies are so good in behaviour with customers when they are selling policies which is not like LIC. are these companies behave samely when they settling the claim

    i hope you understand my qus please reply me i am very much confused

      1. okkk

        it means either we buy private or LC they are same .

        i read somewhere in your answers that you bought ICICI term insurance is it right?
        and in short if we stop blindly on LIC then in actual sense we save money.

        but one more query why LIC as more settlement ratio then others as they are doing more term insurances .

        are they very good in behaviour for claim settlement or lineant?
        please tell me.

      2. it means every one is same and where we comfortable we have to go for it?

        why LIC has more premiums than others can you tell me the reasons?
        and i read you also opt for ICICI what makes you go towards it?

        1. Nitish-MY answer is YES. LIC offers you more premium based on it’s own calculation which depends on mortality table, actuaries calculation and business profitability they look for. Hence, we can’t question that. Trust with oldest among private insurers and some other personal reasons, prompted me to go with ICICI. But I am strictly not recommending the same to ALL.

  99. I think the cost you have mentioned have been changed much. Also some of the products are not there at all. You should look once again for 2016 updated list.
    Nice and detailed analysis .
    But No where mentioned about NRI conditions.

  100. Hi Basu,

    I am 29 years old & my wife is 26 years old. We don’t have any policies as of now other than LIC Endowment for 20 LPA assured which was started recently as part of Investment part. I am now planning to take Term insurance which one among this is good when it comes to after service. LIC, SBI & HDFC. For me premium wise LIC is very high but I am not sure how there after service if one of is not their our nominee may be struggling with it. And being Indian I am always linked towards believing in government companies to rely than on provate so is HDFC a safe bet to take. What will be the ideal figure to take is 1 crore is worth it or can I take 75 LPA. Please suggest.

      1. Thanks Also any suggestions you have for Medical Insurance which is better New India Insurance or any other. I am taking first time a Medical Insurance I prefer to take Individual now and require it till my old age. Will private Medical Insurance are good.

  101. Hi ,
    I am 27. I am confused with LIC e-term .
    After purchasing this policy they said that your premium to be paid will be increased (X Amount) and reason said that due medical test report. Before purchasing this policy from my own pocket i did my health checkup from known hospitals with 30 tests than LIC. And Report got all Clear by doctor(M.D) as said, worst part is it Took 30 days to take medical tests by LIC and all the document processing.

    Is it really happens with everyone or this is the only with me? For alternate option ICICI protect plan is good option to go?

    1. Dear Sir,
      I have also undergone the same experience with LIC. I have applied for e-Term on 03/01/2016 and after medical tests and so many communications, they said on 03/06/2016 that my age has increased to 36, and hence i have to pay extra premium, and they provided me link to pay extra premium, which i have declined, and now planning to choose between ICICI and HDFC.

  102. Hi
    I am 33yr old male non smoker
    I have shortlisted 3 companies for a term plan of 40 yrs for a sum of 1cr

    1)Kotak with claim settlement ratio of 92% and good solvency ratio and premium of rs.11736
    Kotak has a consistent claim settlement ratio of above 90% for 3 consecutive years
    2)PNB metlife with similar claim settlement ratio of Kotak and same premium of rs.11781
    PNB is a big nationalised bank and Metlife is one of the largest insurance companies in the world
    3)Aegon life with claim settlement ratio of 89% and premium of rs.11172
    Aegon is in partnership with bennett coleman company which is a times group company
    Aegon doesn’t have a very good claim settlement ratio in the past but by paying an additional premium of 500rs you can get a waiver of future premiums on discovery of critical illness.

    Please advise which policy should I go for considering I am taking a policy for 40yrs based on the data available of a few years.


    1. Abhi-Your wrong belief-
      1) What guarantee you give that Kotak will settle your claim? Don’t believe too much on claim settlement ratio. If product matches your requirement, then go ahead with Kotak.
      2) PNB may be big nationalized bank, but in insurance industry both PNB and Metlife treated equally, there is no special treatment as far as rules and regulations are concerned.
      3) Never combine insurance with riders.

  103. Dear Basuji,

    I am having Jeevan Anand policy with following details:

    Sum assured: Rs. 5 lacs
    Policy term: 18 yrs.
    Policy started: in 2007
    premium: Rs.36000/- per year approx.

    Pls suggest- should I continue/surrender/paid-up?


  104. Thanks Mr.Basu for very informative blog.
    I have a query, I had 8 LIC policies 5 surrendered 2 to get matured in 2017 and One BIG Jeevan Anand,sum assured is 10lac and paying premium 70k per annum, If surrender now incur huge losses, kindly advice to hold or continue by adding one term plan.

    Thanks again

      1. Sorry for incomplete information Basu,sum assured 10 lac premium 78+K per annum ,premiums paid for 5 yrs, and 11yrs to go, Total 16yrs plan.

        1. Ben-I know it is hard to receive less return or negative return from your investment. But this is the wise way to compensate future loss and come out. Hence, suggest you to surrender rather than continuing for another 11 years. The same can be used to buy term insurance and invest properly for next 11 years means you can compensate the loss.

          1. Hi Basu,

            Do you feel LIC’s Jeevan Anand plan is not a good option for long term investment and insurance ?


          2. Thanks Basu,
            sorry had replied n posted under some other name’s reply
            I will go ahead and surrender Jeevan Anand as you advised.
            Kindly clarify what is pure term plan and additional rider for Accidental Death? Suppose we buy pure term plan without accidental rider then in unfortunate event due to accident, don’t they pay sum assured? or we get extra benefits along with sum assured in case of accidental death, if opted for rider? B’coz you also suggested to buy AD insurance separately pls…….advice!

            1. Ben-Pure Term Insurance means an insurance without any rider benefits like accident or critical illness. Yes, in pure term they pay sum assured of the claim amount if death happened due to accident. In case of accidental rider option, and death due to accident, then nominee receive Sum Assured+Accident Rider Benefit.

  105. Hi Sir,
    Excellent article written supported with facts. Thanks for that.. 🙂
    Did you write any article on Critical Illness plan?


  106. Khuspe Hanumant Uttam

    Nice information. First thanks to you because i an now choicing the term plan of around 1 Cr. I am 35 years old. so which is the best with minimum cost of premium.

  107. Prudhvi tAMMANA

    Hi Basavraj,
    I have gone through your blog which is more informative.

    I have taken term insurance of 50lacs 4 years ago from aegon religare with premium around 4600/-
    Now I am 32 yrs old and planning to take another 50lac term insurance.after search and info from blog i decided to go for icici or hdfc or max india.

    Please suggest in your opinion among above three which two are good ,also mention which one is on top in ur opinion

  108. Hello sir… I got recently diagnosed with hepatitis c . . are there any insurance companies which give term ,life , and health insurance before treatment and after treatment separatly . which one would be preferable

  109. Hello,any
    I was also doing lot of study on term insurance plans and my shortlisted choices are very similar posted here.
    But I think Max life offers coverage to 70 years also so may it may appear in final choice.

    Also due to my family history of critical illness, I need that cover so could you suggest any best plan as whrateln I tried to buy seprately, it was costing more than riders available with some policies (Aegon).
    The same is the case with accidental insurance? Please suggest the best plan?
    Also my spouse is also working? should I cover her in same plan or buy separately?

    1. Ajay-Insurance required up to your 70 years of age? If you have family history of critical illness, then chose the standalone policy from general insurance companies. Buy separate term insurance for your spouse.

  110. Thanks for the article.
    I have a question which may sounds like stupid but still……
    After completion of term and if God forbids nothing unfortunate thing happens what will happen to the amount we pay yearly? do we get anything back if answer is NO then is it applies to health insurance also?
    Your chat with Mani is Eye an opener, I have no term and health insurance but all under roof LIC policies.
    Please post about Health insurance also

    1. Ravindra-Yes, if policyholder survive till maturity, then he will not receive any maturity amount. Becuase insurance company charging you only for the risk they took. Hence, term plans are cheap and best tool to transfer your life risk. Same applies to health or vehicle insurance. Read my earlier post on health insurance at “IRDA Incurred Claim Ratio-How to choose the best health Insurance?” and “Top Up Health Insurance Plan & Super Top Health Insurance Plan-What are they?“.

  111. Thanks for the nice article. My question is that I have already taken a term plan from Aviva Life Insurance after declaring all the details and supporting medical reports. I also underwent the medical test as prescribed by them and also declared the details of my other life insurance plans. I have already paid 3 premiums (1 original and 2 renewal). In this scenario, do you suggest I move to some other company (one of the top in your list)

  112. B. R. Nayakwadi

    Hi Basuji,

    First of all Thank you for providing very good and complete information on “Term Insurance”. Your articles are very good and informative. I was planning to buy a term insurance but no friend\colleague\relative is aware of this. I think, I got good enough information from your Blog. Surely this information will guide me to buy a best Term Insurance Plan.

    Thank you a Lot.

  113. Hello Basavaraj ,

    Thanks for the write up on Online Term Insurance , I am currently on Max would think about moving to others after reading your article , specially ICICI.

    Can you possibly do similar comparison for Medical Insurance ?

    Happy New Year 2016.

    Thank You

  114. Dear sir,

    Happy New year. .

    I want to clear my doubt regarding term insurance in which claim settlement ratio for selecting term insurance is important or not. If not, why it is so.
    If it will be clear, then it is great help for me.



  115. Thanks basu , you have just given very valuable input to all those buying insurance, please keep doing the good working through your guidance , also i have a question , i want to have 2 Cr cover for 32 years shall i take it from one place or divide it into two 1 cr cover from two different companies ??

  116. Dear sir, are you don’t think that some very small premium we get extra monthly income plan is a good decision.
    Or sir, I understand wrong that the insurance company like ICICI, hdfc, Max etc. give a insured amount on death & give monthly or montly income or increase montlhly income extra.

    Why you don’t think that monthly income plan is not a good option. Please sir give the answer in some details.

      1. Excellent article Sir.

        I have a query related to this…..I am 33 years old and I am now planning to buy a term insurance plan. I’ve shortlisted HDFC Life Click 2 Protect Plus for a term of for 30 years and 1 Cr as sum assured. Could you please let me know if it would be a good idea to go for “Income plus option” being offered by HDFC ?

        Income Plus Option: Option that gives your family 100% of Sum Assured on death and a monthly income. For e.g.: Get 100% Sum Assured of Rs 1 crore Lump sum + An additional monthly income 50,000 for 10 years

        The annual premium in case of ‘Income Plus Option’ comes out to Rs. 16,807 while in case of basic ‘Life Option’ it is Rs. 12,450.

        Please suggest which would be a good option?


  117. Dear sir, are you don’t think that some very small premium we get extra monthly income plan is a good decision.
    Or sir, I understand wrong that the insurance company like ICICI, hdfc, Max etc. give a insured amount on death & give monthly or increase montly income extra.
    Why you don’t think that monthly income plan is not a good option. Please sir give the answer in some details.

  118. Dear Basavaraj,

    First of all I would like to thank you for such an informative and useful blog. My question is the amount, which nominee gets as Sum assured, liable for any income tax?

    Looking forward to your reply.

    Varun Gupta

  119. I recently take SBI eshield pure term plan for 25 years for Rs.5000000/- my yearly premium is 8840/-. I want to ask that this premium will be same for 25 years of every year it will be change?

  120. Hi Basu,

    I am exploring term insurance plans from last week and amount of focus required to extract the right content is very important here. I almost found similar details as you have found here. I am very thankful to you for such a nice article that you have presented here. I also requestyou to publish such articles in news papers (if possible) so that such aritcles are available to many more.

    I think I have found incorrect detail in ICICI term insurance plan which is related to pricing.

    The premium mentioned for ICICI plan is correct but for this premium they wont pay as lum-sum but rather as 1% pay per month and this is default option. Lum-sum option is available in third step in the calculator and price goes up more than HDFC term plan. Thought to share so that it can be very helpful.

  121. Hi Basavaraj Tonagatti,
    Very informative and useful post.

    Is it mandatory to take term insurance for home loans from the same lender?

    Thanks in advance

  122. Dear Sir, live reading your blogs. We need more people line you in this space.

    I wanted to know other than ICICI iprotect, are there any other online term insurance companies offering monthly premium options?

  123. Recently, ICICI Pru didn’t honor a claim of plain term insurance of 20 lakh, Poor widow has to go to court to get the claim that too after 1 year… also our honorable court fined ICICI Pru for 1 lakh only.

    Think before going to these private insurance company.

    1. Shyam-Same is the case with the behemoth LIC in some cases. We can’t generalize the issue based on single case and that too without knowing what went wrong. You may notice from the case you mentioned that even though insurance is for Rs.20 lakh then why court fined only Rs.1 lakh? According to you, even court is also PRIVATE? Don’t generalize and come to the wrong conclusion.

  124. Hi Basavaraj,

    First of all many thanks for wonderful blog. I really appreciate it putting some efforts in writing it.
    Sorry I am asking a question which off topic. My question is on Children education plan? can you please recommend me some good plans

  125. Great stuff Basu, Just to add onto it.

    It makes no sense to invest close to 40,000 in a endowment plan and get low cover, and just about 7 to 9% average returns. Instead I can buy a policy for 10,000 that gives me 1 crore life cover and the remaining 30,000 i can invest and get better returns.

    Yes, I feel we should never mix insurance and investment. Going for a term plan is a wise choice. You pay very less premium for a good insurance cover (Eg: 30 year old pays 10,000 per year for 1 crore cover and then he can invest in other areas to get more than 7 to 9 percent returns. )

  126. Very informative and well detailed blog. But I am surprised that Max life term plan is not on your list. It has a high claim settlement ratio, low cost of term plans and just like others 14 years old.
    Any specific reason for not including it that readers should be aware of?

      1. I would like to recommend Max Life Term plan based on my overall experience with them. I have also taken Term plan for my elder brother from HDFC Click2protect, but on all the parameters- cost, service, due diligence they were above my expectation

  127. Hi Basu. Very nicely explained, But I have some questions. Instead of high price(22458) in LIC e term, you still give first position to LIC only. As you said in previous posts, “why one should spend more for the sake of brand”. Do you accept to violate this? if you are not accepting this, then why you had given first position to it.

    The cost of the premium is relatively same with Amolya Jeevan 2, so offline product is better compare to this E term policy. ?

    You are not promoting any product as a biased person you are just posting your views on any product, really appreciate for that. But, to speak truth the amount you mentioned is wrong for LIC e term, your mentioned amount for Aggregate cateogery (smoking). Non smoking premium cost is very less.

    I would like to raise one more point, instead of high cost(Improper Data), as baised person you are supporting LIC and given first position to it, why LIC agent/DO can’t say that, LIC is best?, they will definitely sell their product based on this tag line.

    Many agents explains, both term and endowment policies but most of the customers are interested to take, endowment instead of giving 6to8% returns, because it also covers insurance. So indirectly returns goes to 7to9%. You should accept this point. So what’s wrong in it, when we are getting 7 to 9 % fixed returns.

    Actaully, I regularly follow your blog so from many days I have these questions so I am asking these now.

    1. Mani-1) There is no position to particular company. I just mentioned the top 5. It is purely left with you to either with LIC or the others which I named. I still stick to what I say “why one should spend more for the sake of brand?”. That is the reason, I personally not have term insurance with LIC.
      2) I don’t think so. Online product is cheaper. Even if I save around Rs.1,000 a year from this online offering, they why not to go?
      3) True, it was wrong as I calculated from LIC’s Premium Calculator Page than the actual eTerm online portal. I rectified it. Thanks for pointing the error.
      4) Sadly no LIC agents or officials ready to sell term insurance. Because their concentration is on commission earning, which is less when it comes to term insurance.
      5) It is not about customers, but agents fault. In my case, I explain to all about the importance of term insurance. No one have double thought to buy endowment instead of term insurance. So it is more of a interest to spread actual awareness than nothing. If you spread the perspectives rightly, then defenitely they stay away from endowment. But sadly that culture is not there in LIC.
      Pleasure for commenting and raising these doubts. You are always welcome to raise your opinions. I welcome healthy discussion 🙂

      1. Thanks for you replies.

        4) How can you say that, No agent is ready to sell. They will explain, and at the same time explains about endowment as I explained, that It gives Guaranteed Returns of 7 to 9 %, After including Insurance. Means You are getting 7 to 9% returns on your investment(It is high when the age of the life assured is less, it s goes around 8 to 10%) and covering Insurance too. Which is better compare to PPF(I personally Feel).

        5) From your Blog, what I observed is you are only supporting LIC e term policy(Not Fully 🙂 ), in this No need of any Agent/DO/officials inclusion. But in India there are lakhs of people who are working in LIC directly or indirectly. You are opposing all their work/Duty. ?

        1. Mani-4) I am into this business (especially with LIC) since 15-20 years. I know how the LIC officials and agents work when it comes SELLING. 99% agents major concern is of how much they get as commission than how much value they shared to their customers. GUARANTEED RETURNS from LIC ENDOWMENT? Check your facts. Endowment plans are most dangerous than ULIPs. Because of the cost involved. You may not know that cost of such endowment plans is around 20%. So how can they generate even 7% return? Check the so called famous Jeevan Saral returns, they are well below 5%.
          5) Yes, I support online versus offline. When I look at buyer side, I have to look at which is BEST and cost effective. So obviously my choice is online. Also, I don’t know how long the so-called agent be in this business. I can’t waste my money to those thinking that at any cost I have to save the sinking agents and officials force. It is left to them. At the end of day it is convenient, cost effective and long-term view that matters. But not social cause.

  128. Very nice article! I would surely like to know if the critical illness, disability waiver and accident benefits add on’s are worth the extra premium?

  129. Thank you very much for sharing your expertise and point of view with us. It’s really beneficiary for us.

    I have one question regarding term insurance. In your blog you mentioned that “I suggest you to consider the time of insurance up to your working life. Life Insurance is not required during retirement.”

    I didn’t understand why we don’t required term insurance during retirement.
    If I paid premium up to 30 years than don’t you think it’s better to pay it more 10-15 years and take an advantage after maturity. (I know it’s unpredictable. But Still….)

    Your point of view is much important for me.

    Kunal Chauhan

    1. Kunal-I expected this question 🙂 First let us know the value of current Rs.1 Cr during your retirement age. Let us say you opted for Rs.1 Cr of term insurance and term 30 years (expecting to retire after 30 years). If we consider the inflation rate at 7%, then value of such Rs.1 Cr in today’s term is just Rs.13 lakhs ( I mean to say that today’s Rs.13 lakh is equal to Rs.1 Cr after 30 years). For how long your family will survive in today’s term with this Rs.13 lakh? Maybe for 2-3 years. This is the one aspect which many fail to understand. They are in mind that they have to take the benefit at any point of time as they are PAYING PREMIUM.
      Second thing is, when you retire from your work? When you have enough retirement cash flow or created a retirement corpus. This surplus is much more than what you expect from term insurance claim amount. Hence, including me all planners suggest to restrict up to your retirement age.
      But sadly the main motive for many term insurance buyers is to go for longer tenure as much as possible so that the premium paid will at least come back during their retirement age. But they forget the cost of such long-term insurance (as you opt for longer term, premium also increases) and also the inflation.

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