Term Insurance - Online/Offline Plans - few queries?

Hi,

I am a new member of the policy wala and have few queries regarding the term insurance.

1. Which is best? (Online / Offline). As I have heard that online term insurance has maximum changes of claim rejection.
2. Which companies would you refer for the online as well as for the offline?
3. My age of 26 yrs and package around 5 lakh pa. Please let me know the sum insured value I should opt for.

I have done research on it and found that the "Metlife online policy" are cheap compared to others and they do not have any hidden policy rejection.

Please let me know your views.

Thanks
Lokesh

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Originally Posted by LokeshG

Hi,

I am a new member of the policy wala and have few queries regarding the term insurance.

1. Which is best? (Online / Offline). As I have heard that online term insurance has maximum changes of claim rejection.

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A very detailed article on the Online term plans here. In the above article claim ratios also mentioned for 5 companies for others pls check IRDA website.

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2. Which companies would you refer for the online as well as for the offline?

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Online - Aviva i-Life is cheapest
Offline - ICICI iProtect

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3. My age of 26 yrs and package around 5 lakh pa. Please let me know the sum insured value I should opt for.

I have done research on it and found that the "Metlife online policy" are cheap compared to others and they do not have any hidden policy rejection.

Please let me know your views.

Thanks
Lokesh

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10 Times of the annual salary would be ideal for you (i.e. 5X10=50)
Met life is 4 rank in above article, that says all.

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I have done research on it and found that the "Metlife online policy" are cheap compared to others and they do not have any hidden policy rejection.

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What do you mean by hidden policy rejection?
As per Annual Report of IRDA FY2009-10 => Claims paid ratio 5.94 (which is last two, out of the 23 Life Insurance companies operating in India). Met Life is worst, as per above data.
Top 5 Indian Life Insurance Companies claims paid ratio (FY2009-10) -

1. LIC - 96.54 %
2. HDFC Life - 91.14%
3. ICICI Pru Life - 90.17%
4. ING Vysya Life - 89.30%
5. Birla Sun Life - 89.09%

What is claim settlement or claims paid ratio?

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Originally Posted by Vinayak

What is claim settlement or claims paid ratio?

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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.

Claim Settlement Ratio (CSR) = Total Claims Settled / [(Total Claims) – (Claims Rejected)] %