We have around 24 Life Insurance Companies and as of now all insurance companies offer online term insurance plans. Hence, it is hard to shortlist the BEST among them. This post will help you in shortlisting the Top 5 Best Online Term Insurance Plans in India in 2017.
Term Insurance is the type of Life Insurance. If death occurs of the policyholder during the policy period, then his/her nominee will receive the Sum Assured selected. If policyholder survives till the end of the policy period, then he/she will not receive any maturity amount.
This is the reason, these policies cost you very less and cover a large amount of life risk. This is the PURE LIFE INSURANCE. Hence, anyone who have financial dependents must buy this product immediately.
Nowadays all Life Insurance companies offer you online term insurance plans. The advantages of online term plans are as below.
# It is convenient to buy as with the click of a button you can buy it.
# As there will not be any middlemen involved, the price is cheap than offline term insurance plans.
# You fill the proposal form on your own. Hence, an error of margin is LESS.
# Undue influence by agents is not there.
# Along with the discount of DIRECT purchase, if you buy through online then now life insurance companies will give you 8% on your FIRST YEAR PREMIUM. This is to promote cashless online transactions.
Now let us shortlist the Top 5 Best Online Term Insurance Plans in India in 2017. How I selected the Top 5 Best Online Term Insurance Plans in India in 2017?
# How old are the companies
# Claim Settlement Ratio
# Premium Cost
# Plan Features.
Below is the chart which explains the age of all life insurance companies. I am comfortable with the company which is at least 10 years old.
You notice that among 24 Life Insurance Companies, only 16 companies completed 10 years or more. Therefore, my target is among these 16 companies only.
The reason behind this criteria is that Life Insurance is a long-term contract between you and insurance company. Hence, the older the company the more comfortable I feel.
I have already written a detailed post on this at “IRDA Claim Settlement Ratio 2015-16 | Best Life Insurance Company in 2017“.
However, for the better understanding purpose, I am putting the data again in this post.
Here, you notice that I marked with green colour who have claim settlement ratio of above 90%. I marked few companies in yellow whose claim settlement ratio is between 89% to 80%. I marked few companies in red whose claim settlement ratio is below 80%.
Now in green, there are around 12 companies.
The common companies between the age of companies and claim settlement ratio are as below.
LIC, ICICI, HDFC, SBI, Bajaj, Reliance, Max Life, Sahara, and Tata. Among these 9 companies, I have to shortlist the Top 5 Best Online Term Insurance Plans in India in 2017.
Now I will consider an example of a person whose age is 30 years, Term of Plan as 30 years, Non-Smoker and healthy, Sum Assured Rs.1 Cr and yearly premium payment. I selected plain vanilla product without any riders or further features.
Among the 9 companies, I found that Sahara not offers online term plan. In Tata Life, I not found a plan which is ONLINE, Sum Assured Rs.1 Cr and simple plain vanilla plan. Hence, I discarded those two companies. Now remained are only 7 companies.
The table looks like below.
You noticed that Max Life seems cheapest and followed by Reliance and ICICI. The costliest among these is LIC.
Now let us look at the plan features and decide which are the Top 5 Best Online Term Insurance Plans in India in 2017.
You notice that there is no positive point to decide LIC. However, because of oldest company and trust it created among Indians, I will shortlist the final Top 5 Best Online Term Insurance Plans in India in 2017 as below.
Remember, there is no specific reasons to reject another two companies from the list. But considering the reliability and strong data, I shortlisted these 5 products.
Claim Settlement Ratio is raw data. This data will not give you enough picture of what type of products the insurance companies settled. Hence, relying too much on this single data and selecting a product is not a good idea.
Ideally one must have at least 15-20 times of your yearly income. This is the basic calculation.
Sharing data especially materialistic information must be accurate. If you are unable to understand anything, then immediately contact Life Insurer for the help. Understand the questions and fill only when you know what you are filling.
Never budge on the decision which is against your wish. If you are fully comfortable, then only go ahead and buy.
Ideally, it should be up to your retirement age. Because you retire when you are financially free. Hence, Life Insurance is not required during your retirement age.
There are few who are apprehensive of relying on a single insurer. Hence, they try to split among few. But in reality, there is no logic in splitting. What is the guarantee that the all insurer will accept or reject the claim?
Never combine Life Insurance with General Insurance requirement. You will get better-featured covers from general insurers regarding accidental and critical illness covers. Hence, simply avoid riders.
Nowadays there are so many online aggregators. You may not know that they act exactly like insurance agents. Hence, never rely on their claim. Do your own research. If you are satisfied, then only go ahead and buy. Refer my post about the same “Beware of Insurance Comparison portals in India“.
After the recent clarification about Sec.45 of Insurance Act, the customer became king. It states “No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later.”
Refer the complete post at “Term Insurance-Claim Settlement Ratio no more a big criteria“.
Buying Life Insurance of Rs.1 Cr or Rs.3 Cr is not a one-time affair. You must review your life insurance requirement at least once in the 5 years. If required, then you must increase the sum assured.
In case of term insurance you have to be very cautious when it comes to premium payment. It is always better to opt for yearly premium payment and also if possible make it automated by the way of ECS. If policy lapses due to your negligiancy, then you have to undergo medical tests and all stuffs once again. If there are any health issues, then insurer may reject to renew the policy.
Also, during buying new policy insurance companies bear the cost of medical examination. However, during the renwal of the same, you have to bear the cost. Hence, becareful with premium payment of term insruance.
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View Comments
I shortlisted two companies. Icici and Aegon. Please suggest me which will be better. As claim ratio almost same.
Premium is low in Aegon
It's all about trustworthy company. Should I trust Aegon?
Dear Jitender,
For me both are equal. Hence, if premium is cheaper in Aegon, then go ahead with that company.
Hi Basu,
I have Rs 50/- lakh term plan from Max life. Now, I want to increase to 1 Cr. If I will take additional 50/- lakh policy then total premium for both policy will be around 9100/-
If I will not renew my current policy and take new 1cr plan then premium will be 8100/-.
which option should be better ?
Dear Kumar,
Buy the one and cancel the existing one after the issuance of first policy.
Dear Sir,
First of all thanks for the explanation regarding term insurance.
I'm 28 yrs old and having a 4 yrs old daughter. in my family I'm the one earning member and earning ~42K in hand per month(where I invest ~ 55k annually in LIC/SIP and Sukanya yojna).
From the above data, I shortlisted Two companies as shown below:
1. HDFC Click2Protect Plus
2. Max Life Online Term Plan.
Please suggest if I should opt for term plan. If yes, then what are the best plan I should select with lesser premium.
Best Regards,
Ravi
Dear Ravi,
You claim to be you are the sole earner of the family. Hence, you must buy Term Life Insurance. Regarding your choices, you can choose anyone between the two.
i have paid online payment for termplan but forms r not filled but now i want to change sumassured before policy generates how can i .
if i dnt fill the online form can i get my money bk .plz reply soon
Sirn- I'm not sure how you directly paid premium before filling the proposal forms. If want to change sum assured now, then contact the company immediately.
forms are not completely filled online firms ask for payment in between the procedure of form filling .
Sirm- But Sum Assured will be first asked to choose right?
as HUF is considered as a entity , to have sb account, have tax planning under 80C ,file returns etc. which INSURANCE COMPANY in India offers ONLINE TERM PLAN for HUF( as proposer) either to be taken on life of Karta or coparcener's /member's life - mob No.9561397999
Paresh-Not sure specifically. You can check with few insurers.
Dear Sir,
My Name is Manoj & My age is 56 years and i want to buy term plan of HDFC life click to protect plan but premium is too high for me so please suggest Plan name or plan tenure for me .......
Manoj-It is obvious that premium will be high due to your age.
Thank Sir, But in Hdfc Premium is 60 Thousand And Max life 42 Thousand so can i go with max or hdfc.
Please suggest me the tenure of the policy......
Manoj-Yes, you can go ahead.
Sir, I am 38 year old and doing business.
Kotak life offers me 75 Lac term insurance upto 75 years with 100% of sum assured accidentel rider.
Yearly Primium is 13275+4425 (for rider) =17700
May I go with them?
I am confused, Please guide me.
Hitesh-Do you need life insurance up to the age of 75 years?
More the term ( in years ) less is the premium , so go for it
Shantanu-Check your facts, in case of term life insurance it is reverse. In regular endowment or money back plans, more the term less the premium applies. However, in case of term life insurance more the term more the premium.
No sir
Upto 60 year is enough for me.
But Kotak life doesn't gave me 60 years.
But Primium is competitive.
Hitesh-Then you can choose as per your comfort.
Thnk u so much for ur valuable suggestions. Infact there is some issues like waiver of premium in both . In icici it is inbuilt and in Max it is not there...
Jamil-Great to know.
Dear sir, I have shortlisted two companies
1. Max Life
2. ICIpru life
Please suggest me which one should I buy my age is 31 years. Max premium is about 2000 less than ICICI Pru. Please suggest bor best.
If you are going for pure term plan , then MAXIMUM period is to be chosen , (irrespective of premium amount) vis a vis let there be chances of your nominee going to INSURER Co. for CLAIM,
HDFC LIFE, IDBI federal , TATA AIA gives only 30 years, AVIVA , ICICPRU, MAX and others gives 35 years, it is only PNB metlfe gives term plan upto age 80 years- irrespective of years , that means a person (as named / cited above )=31 years , can go for TERM PLAN INSURANCE of period 49 years that is upto age 80 years , as longevity has been thought of by PNB metlife , premium amount of few hundred here and there would / should not make IMPROPER DECISION of TAKING a LIFE INSURANCE
hi,
I have taken PNB met life plan 3 months back.. now nirav modi incident happened what to do .. shall i continue or close.
Harish-NO need to worry. Just continue.
Shantanu-Do you need Life Insurance during your retirement??
If you die , your nominee will need the money , so why not ? do u need to pay premium after retirement , yes, but will u be able to afford as during retirement amount u can afford to give may be lesser ? Just trying to understand this ...and decide for myself as well. Looking for ur comments pls.
Dear Sankar,
Do you really need insurance beyond RETIREMENT? I am posing this question again. Think time value of money, cost and also the meaning of retirement before you respond.
No one needs life insurance on his own , it is your dependents, their livelihood etc loved ones for whom ONE is toiling , so once you are (LA) is retired , that means inflow of income is less , or not worth, at the same time , if something unfortunate happens , it is your those loved ones , for whom INSURANCE was taken (normal advocacy)
Shantanu-When you retire from your working life? Is it when you have financial freedom or with financial hurdle?
No Offenses, by commenting on the captioned subject :- Life is -was never to be viewed as financial freedom or financial hurdle , Term Plan Insurance has to be seen as financial cushioning to ones's dear ones, (after his / her demise)may be dependent or not is a secondary issue
Term Plan Insurance has to be seen MORE from EMOTIONAL ATTACHMENT, as TERM PLAN works more on principles of Earlene Insurance, if you -LA is THERE on the renewal day , your paid up premium has gone with Insurance company (as mortality charges may be 0.3%)
Shantanu-So you buy term insurance based on EMOTIONAL ATTACHMENT but not to replace the financial value of YOUR's? Just can you calculate the value of Rs.1 Cr or Rs.5 Cr after 30 years in today's term? For how many days your dependents can survive?
Jamil-I does not find any difference. If you are comfortable with Max and it's affordability, then FIRST buy it.
being 20yrs old with ITR of 10L each,I had applied online through agent policybazar with payment Rs16442 for TERM PLAN INSURANCE of PNB Met life term 62 years of 1 Cr +add CI=20L +ADB=10L+ PNBsuraksha=10Ldisbailty benefit=10L, which was approved m but later on now pnbmetlife is tweaking its apparoved proposal with lessening SA from1 Cr to 25lacs , How to tackle this situation ? parejain@gmail.com
Pare-Either accept or move to another company.