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:
- Life Option – Lump sum payout of Death Benefit
- 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.
- Income Option – Part of Sum Assured payable on death and the remaining payable as monthly income for 10 or 15 years
- 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
- It is always better NOT to opt for any Riders with Term Insurance Plan to avoid complexities in case of claim arises
- Better to Opt for a maximum time period available
- 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
- Avoid Money back, Endowment policies