Term Insurance – A Friend In Need
Term Insurance – the most basic form of insurance where policy holder pays premium to protect his / her Economic value against unfortunate events like death.Endowments and money back policies are mere attractive and polished forms of term insurance and comes costly for the additional polished features.
Term Insurance Premium Rates 2012:
Here are few selected Premium Payment Rates of different insurance companies for pure risk plans.
Premium rates are for following specifications –
- No Smoker – Male
- Age completed -30 Yrs.
- Term insurance – Rs.50 Lakhs.
- Term – 30 Yrs.
| Company | Plan | Yearly Premium |
| LICIndia | LIC Amulya Jeevan | 18,876 |
| ICICI –Prudential | ICICI-Pru I-Care | 8,652 |
| Bajaj Allianz | Bajaj Allianz I-Secure | 7,623 |
| Aviva Life Insurance | Aviva i-life | 4,473 |
| Aegon Religare | Aegon Religare i-term | 4100 |
| HDFC Life Insurance | HDFC Click 2 Protect | 6,742 |
| Kotak | Kotak E-Preffered Term Plan | 6,910 |
| Edelweiss Tokio | Edelweiss Tokio Life Protection | 7,865 |
| IndiaFirst | IndiaFirst Life Plan | 12,753 |
| Reliance Life Insurance | Reliance e-Term Plan | 6685 |
Pl.Note -Premiums are always subject to change.
Selection Of Term Insurance Plan :
More options = more confusion.Which is the best term insurance plan?Though its not possible to generalize the things,one can consider following factors.
- Premium Payable – Customized quotes can be extracted from respective insurance company’s website.One can chose the option based on the premiums.
- Claim Settlement Ratio – This is another metric to select the term insurance but one should remember that its ratio only..not number.IRDA declares claim settlement ratio time to time.
- Combination – One can minimize the claim rejection risk by opting for cover of 2-3 companies.But do not forget to provide the details of earlier bought policies.
- Online Term insurance Policies – One can view that policies which are available to buy online have cheap premiums.There is no harm in buying online policies but if any one is buying policy online then keep acquainted the spouse / nominee about complete details and all processes under the unfortunate events of claim.
Premium Difference – Term Insurance & MoneyBack Plan :
Just for example we will consider example of LIC Term plan and LIC Money Back Policy for term of 25 yrs , Sum assured of Rs. 25 Lakh and age of policy holder 30 Yrs.
| Plan | Premium |
| LIC Term Plan | 8,200/- |
| LIC Money Back – 25 Yrs | 1,29,345/- |
One can view the difference in premiums for two policies.So idea is to buy term insurance and invest remaining money at right place and achieve more returns.
Bottomline:
Term insurance is important risk management tool and very important component of any financial plan.Its necessary to access your need of insurance ,ideally it may be around 10 times of the annual income.. “ A friend in need is a friend indeed “ looks true for term insurance ….so opt it today if it is available for you…who knows you may not be eligible tomorrow...
Dear Team
which company is the best in claim settlement ols sugeest 3 company
You can prefer –
ICICI prudential
Kotak
HDFC
Max new York Life / Aviva.
HDFC Click To Protect – Buy or not.
Yes . Sure.
I think you can combine term insurance with one more plan to reduce the rejection risk.
Thank you.
I recently bought Aviva i-Life and let me tell you it’s a good term plan.
If all material facts have stated correctly E.g. any pre-existing illness or information about other existing policies,then no chance of risk of rejection.