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Term Insurance is the Purest Risk Coverage for Life a person can have. It gives an individual high sum assured coverage at a very reasonable price.

Some Myths and Busts of Term Insurance and Online Insurance policies

1. Sometimes I hear that – If I take Online Insurance there will not be anyone to help in case of a claim.

If such a situation arises, Nominee can directly contact Insurance Company Customer Care and notify about the event submit Claim request.

2. If I buy a Term Insurance, I won’t get money back if I live beyond policy time period

Always keep Insurance and Investment separately. Term Insurance is like your Bike/Car Insurance. Do you get money back after a year of your bike/car insurance?

3. Claim Settlement Ratio: I have observed that many people concentrate on claim settle ratio to decide which company’s term insurance to take

I believe a person can take Term Insurance from any company an individual is comfortable with.

The most important factors to note while taking Term Insurance are

  • Disclose existing insurance policies details (if applicable)
  • Disclose all legitimate information
  • Disclose Smoking Information
  • Disclose if you work in high-risk environments, like Navy, Pilot, Nuclear Power Stations, Oil Exploration, Mountaineering, Racing, etc..
  • Do not hide existing/previous medical history, like BP, Diabetes, Asthama, Surgeries, By birth ailments, etc..
  • Disclose family medical history wherever asked
  • Disclose earning history wherever asked
  • Don’t hide any information
  • Accept increase of Premium if suggested by Insurance Company with Genuine Reasons
  • Do not try to manipulate information to decrease Premium

Generic Features of Term Insurance Plans

  • Entry Age          18 – 65 years
  • Maturity Age    28 – 75 years
  • Policy Term      10 – 40 years

Term policies generally provides you with four cover options:

  1. Life Option – Lump sum payout of Death Benefit
  2. Extra Life Option (Accidental Death Benefit) – Lump sum payout of the Death benefit (Twice the Sum Assured) in case of death due to the accident.
  3. Income Option – Part of Sum Assured payable on death and the remaining payable as monthly income for 10 or 15 years
  4. Income Plus Option – Sum Assured paid on death & monthly income paid for the next 10 years. The monthly Income can be chosen as Level or Increasing at 5% or 10% p.a

It is always good to go with Basic/Plain Term policy and avoid all other Sub-Options/Riders

Now, Let’s take a look at term insurance offerings from various Life Insurance Companies in India

LIC E-Term: LIC has come up with an online term insurance plan called LIC E-Term. Premium is highly-priced compared to Term Insurance from other insurance companies

For more details Check Here

HDFC Life Click 2 Protect Plus: For more details Check Here

ICICI Pru iProtect Smart: For more details Check Here

Max Life Online Term Plan Plus Basic Life Cover Plan: For More Details Check Here

Kotak Preferred e-Term Plan: For More Details Check Here

Aegon Life iTerm Insurance Plan: Term Insurance from Aegon Life

  • Aegon is offering Term Insurance for Maximum Maturity age of up to 80Years
  • It also has inbuilt Terminal Illness Benefit

For More Details Check Here

SBI Life – eShield Term Plan: Maximum Maturity Age = 70Years, For More Details Check Here

PNB MetLife Mera Term Plan: Sub Option = Full Lump Sum Payout, For More Details Check Here

Few points to note about while Taking Term Insurance

  1. It is always better NOT to opt for any Riders with Term Insurance Plan to avoid complexities in case of claim arises
  2. Better to Opt for a maximum time period available
  3. Taking Term Insurance from two or more Insurance providers may not have a material impact, Opt for maximum sum assured with a single Insurance provider
  4. Avoid Money back, Endowment policies

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