Why buying Online Term Insurance plans makes more sense?
(a) Low premium as compared to offline – The premium of online term plans are lower by up-to 40% compared to offline term plans.
(b) Higher Sum Insured – Companies are encouraging buyers to take higher cover. If a 25 lakhs cover is for INR 3,695 , a 1 crore cover costs INR 9706.
(c) Longer Cover Age – Term Insurance Cover can be taken till up-to 75 years of age as compared to 60-65 earlier. This makes more sense as the life expectancy is growing in India.
(d) Buying Easy – Online term plans can be bought by individual himself no intermediary e.g. agent, broker etc.
Online available Term Insurance Plans –
- Aviva i-Life Term Plan
- AEGON Religare iTerm Plan
- ICICI Pru iProtect Option I and Option II
- Kotak Life e-term and Kotak e-Preferred Term
- MetLife Met Protect
Note –
1- Kotak Life Online Term Plan has two variants – Kotak e-term for sum assured up to Rs 24.99 lakh and Kotak e-Preferred Term for sum assured of Rs 25 lakh and above, all other terms & conditions remaining the same.
2- ICICI Prudential Life Insurance also offers two variants of iProtect: Option 2 of ICICI Pru iProtect offers ‘Accidental death benefit’ rider which is equal to sum assured (subject to a maximum of Rs 50 lakh).
Top 5 Term Plan on the basis of coverage
1- ICICI Pru Life’s I-Protect
(a) Policy Term – Maximum – 30 years
(b) Maximum Sum Insured – No limit (subject to underwriting requirements)
(c) Offline/Online both buying options – Buy online/advisor/branch
(d) PA Rider – with ICICI Pru iProtect Option II – Additional payout on death due to an accident
2- Kotak Life’s e-term and e-Preferred Term
(a) Policy Term – Maximum – 30 years
(b) Maximum Sum Insured – Max. Subject to underwriting
(c) Reduced Premium rates for women
(d) Life cover Step-Up/ Step down option available
(e) No medical examination on exercising the Step-Up option
What is Step-Up Option?
You can increase your Sum Assured without having to undergo any further medical examination.The Step-Up Option is available to you at a nominal fee
What is Step Down Option?
you can step down to a lower amount of cover subject to the minimum amount of cover available in this plan.
3- Aviva’s I-Life
(a) Policy Term – Maximum – 35
(b) Maximum Sum Insured – Min. Rs.25,00,000, Max. Subject to underwriting
(c) Rebate on Large Sum Assured
(d) Additional rebate for female lives of 5% on the tabular premium rates for male lives.
4- Met Life’s MetProtect
(a) Policy Term – Maximum – 35
(b) Maximum Sum Insured – Min. Rs.25,00,000, Max. Subject to underwriting
(c) Reduced rates for women
5- Aegon Religare’s I-term
(a) Policy Term – Maximum – 25 years
(b) Maximum Sum Insured – No limit (subject to underwriting requirements)
Note – If the policy term is less than 10 years, the minimum entry age needs to be 30 years
Top 5 Term Plans on the basis of Premium
S.No. | Plan Name | Premium (25 Years Old) @ | Premium (31 Years Old) # |
---|---|---|---|
1. | MetLife’s Met Protect | 2625 | 3425 |
2. | Aviva i-Life Term Plan | 4046 | 4697 |
3. | Kotak Life e-Preferred Term | 4725 | 5775 |
4. | ICICI Pru iProtect | 4800 | 5900 |
5. | AEGON Religare iTerm plan | 4500 | 5900 |
@ 25 years old, male, non smoker, premium mode – annual, term -25 years, Sum Insured 50 lacs
# 31 years old, male, non smoker, premium mode – annual, term -25 years, Sum Insured 50 lacs
Top 5 Term Plans on the basis of Claim Settlement Ratio
S.No. | Insurance Company | FY 2009-10* | FY 2008-09* |
---|---|---|---|
1. | ICICI Pru Life | 90.17% | 86.55% |
2. | Aviva Life | 87.11% | 71.77% |
3. | Kotak Life | 86.97% | 77.08% |
4. | MetLife | 82.54% | 57.89% |
5. | AEGON Religare | 48.00% | N.A. |
*Data Source – Annual Report IRDA
What is claim settlement ratio?
Claim Settlement Ratio gives us an idea about the claim solving ability of the insurance company. If claims are intimated and the insurance company solves those, claim settlement ratio would be good. In simple words – claim settlement ratio is the number of claims settled by the insurance company out of every 100 claims it has received.
Things to take care, while buying online term insurance
1. Read and answer to all the proposal form questions correctly and accurately to the best of your knowledge.
2. Disclose all material facts to the Life Insurance Company. In case you have doubt as to whether a fact is material or not, the fact should always be disclosed.
3. All the documents submitted by you (e.g. Age Proof, Address Proof, Income Proof etc.) along with the proposal form should be genuine.