Below table
shows you the comparison of various term plans available in the market from
different insurers.
| Sr.No. | Company Name |
Policy Name |
Mode | Entry Age | Minimum Term |
Maximum Term |
Maximum Maturity Age |
Premium |
|---|---|---|---|---|---|---|---|---|
| 1 | Aegon Religare | iTerm | Online | 18-65 | 5 | 40 | 75 | 7,753 |
| 2 | Aviva | i-Life | Online | 18-55 | 10 | 35 | 70 | 8,058 |
| 3 | SBI | eShield | Online | 18-65 | 5 | 30 | 70 | 9,135 |
| 4 | HDFC | Click 2 Protect | Online | 18-55 | 10 | 30 | 65 | 10,112 |
| 5 | Kotak | e-Term | Online | 18-65 | 5 | 30 | 70 | 10,140 |
| 6 | Bajaj | iSecure | Online | 18-65 | 10 | 30 | 70 | 10,955 |
| 7 | ICICI | iCare | Online | 18-65 | 5 | 30 | 75 | 12,360 |
| 8 | Birla SL | Protector Plus | Offline | 18-65 | 5 | 30 | 75 | 14,045 |
| 9 | Max Life | Platinum Protect | Offline | 18-60 | 10 | 30 | 75 | 18,090 |
| 10 | LIC | Amulya Jeevan - 1 | Offline | 18-60 | 5 | 35 | 70 | 25,700 |
Note:
Premium mentioned in the above table is for a 30 years Non Smoker individual for
a Sum Assured of 1 crores for 20 years.
Above table shows Term plans available in 2 different modes i.e. Online and Offline.
Online Term plans are directly from the life insurance company, wherein an insurance agent is not involved in the process thus resulting in low premium for you. Offline Term plans are bought through an insurance agent, the premiums you pay for indemnifying risk to life is high when compared to online term plans.
From the above table it is clear that any person of the age of 18 years can buy a term plan while maximum entry age is 65 years for most of the companies in a term plan. Minimum tenure for most term insurance plans is 5 years, while the maximum tenure is 30 years. Only in case of Aegon Religare iTerm the maximum tenure is 40 years. Term plans can cover you upto a maximum age of 75 years depending upon the insurance company you choose but most insurers cover you upto a minimum of 70 years of age.
In the above table we have ranked life insurance companies from the lowest to highest premium for a term plan. Aegon Religare provides the cheapest term plan being an Online Term plan, while LIC has the highest premium for an offline term plan. There is a huge difference between the lowest and highest premium term plan of approximately Rs. 17,000. The main reason for such a huge difference is:
Above table shows Term plans available in 2 different modes i.e. Online and Offline.
Online Term plans are directly from the life insurance company, wherein an insurance agent is not involved in the process thus resulting in low premium for you. Offline Term plans are bought through an insurance agent, the premiums you pay for indemnifying risk to life is high when compared to online term plans.
From the above table it is clear that any person of the age of 18 years can buy a term plan while maximum entry age is 65 years for most of the companies in a term plan. Minimum tenure for most term insurance plans is 5 years, while the maximum tenure is 30 years. Only in case of Aegon Religare iTerm the maximum tenure is 40 years. Term plans can cover you upto a maximum age of 75 years depending upon the insurance company you choose but most insurers cover you upto a minimum of 70 years of age.
In the above table we have ranked life insurance companies from the lowest to highest premium for a term plan. Aegon Religare provides the cheapest term plan being an Online Term plan, while LIC has the highest premium for an offline term plan. There is a huge difference between the lowest and highest premium term plan of approximately Rs. 17,000. The main reason for such a huge difference is:
- Insurance agent's commission;
- Increasing competition in the life insurance industry;
- Difference in life insurance companies' actuarial assumption rate;
- Past claim settlement experience; and
- Credit worthiness of life insurance companies.
LIC being the
most trustworthy and with the highest claim settlement ratio of all the life
insurance companies charges higher premium for its term plans.
So, which is the best Term plan in the market?
Well, the best term plan depends upon your requirement i.e. at what age you are opting for it and till what age you require it and the premium you are willing to pay for the term plan. Online Term plan can save your premium amount and also provide you the convenience of buying a life insurance policy but you should always check on claim settlement ratio of the insurance company from which you are buying the term plan, since it is the most important factor in deciding which policy to go for. You should also disclose your true health history while filling up the proposal form so that insurance company cannot reject claim on the ground of past health history.
So, which is the best Term plan in the market?
Well, the best term plan depends upon your requirement i.e. at what age you are opting for it and till what age you require it and the premium you are willing to pay for the term plan. Online Term plan can save your premium amount and also provide you the convenience of buying a life insurance policy but you should always check on claim settlement ratio of the insurance company from which you are buying the term plan, since it is the most important factor in deciding which policy to go for. You should also disclose your true health history while filling up the proposal form so that insurance company cannot reject claim on the ground of past health history.
Source:personal FN
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