There was a very well researched comment on the forum the other day where reader SM Gupta had researched term insurance quotes from various insurers, and presented his findings.
You can see the comparison below.
- Age â€“ 31 Years
- Policy Term â€“ 25 Years
- Sum Assured: Rs. 50, 00, 000
|Company Name||Plan||Annual Premium|
|Met Life India Insurance||Met Protect||Rs. 5,800|
|Aegon Religare Life Insurance||iTerm Plan||Rs. 5,900|
|ICICI Prudential Life Insurance||iProtect||Rs. 5,900|
|Kotak Mahindra Old Mutual Life Insurance||E-Term / E â€“ Preferred Term||Rs. 6,370|
|Kotak Mahindra Old Mutual Life Insurance||Preferred Term Plan||Rs. 7,638|
|Bharti AXA Life Insurance||Elite Secure||Rs. 9,850|
|Future Generali Life Insurance||Smart Life||Rs. 10,050|
|HDFC Standard Life Insurance||Term Assurance Plan||Rs. 11,871|
|Aviva Life Insurance||Life Shield Plus||Rs. 12,243|
|Bajaj Allianz Life Insurance||New Risk Care||Rs. 13,540|
|Tata â€“ AIG Life Insurance||Life Raksha||Rs. 13,900|
|Birla Sunlife Insurance||Term Plan||Rs. 15,332|
|LIC of India||Amulya Jeevan||Rs. 15,450|
You can see that there is a wide range in these quotes, and the natural question is which one to of these policies should you choose. I haven’t double checked these quotes, but the ball – park seems right to me.
Unfortunately, I canâ€™t answer that question since Iâ€™m not well versed with insurance, but I thought Iâ€™d post this here with my own thoughts, and also share what I have done myself as far as term insurance is concerned, and then leave it open for discussion.
When I searched for term insurance I found out about this wide range, and ultimately decided to go for a LIC policy even thought it cost more.
One of the primary reasons for opting for LIC was that we have known a particular LIC agent for a very long time, and he has provided my family excellent service in the past for car and other insurance needs.
We have had our share of Mediclaims and car insurance claims that have been processed without hassle, so that added to my confidence in going with him.
No one contemplates mortality, but if something were to happen, then I feel comfort in the thought that this gentleman is more likely to assist my family than a stranger.
The second reason is that LIC has a fairly high claim settlement ratio, and while Iâ€™m not intimately familiar with how these numbers are calculatedÂ – it does inspire confidence that they payout on a large number of claims.
The third reason is that I plan to split the total insurance into two policies â€“ one LIC and one other insurer, as that makes it easier to manage the insurance if in the future I decide that I donâ€™t need so much cover, or if one insurer declines to pay, then at least there is the other one. Â So far, I havenâ€™t been able to get to the second insurance cover, but that was the initial plan.
The last reason was that while in percentage terms the numbers might vary a lot â€“ in absolute terms it is not very significant, and Iâ€™m not too concerned with paying the extra money.
So those are some of my thoughts â€“ please add to the discussion, as Iâ€™m sure a lot of you have dealt with the insurance question, and chosen one over the other. You can leave a comment here, or at the forum post.
89 thoughts on “Sample Term Insurance Quotes from various insurance companies”
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I think you should update this article on TERM PLANS with latest rates since insurance market is maturing . You may include Term Plans for critical illness also together with life cover, if anything available in market. Also want to check the maximum age limit for difference insuarance companies for issuing Term Plans for LIFE & CI.
I’m sorry but I won’t be able to update this data as this is a very time consuming exercise that a reader did in the first place. I don’t know of a practical way of doing this myself.
It should be 2 crores. You would need to inform the second, third and fourth insurance companies that you are holding policies on other companies. It would ease claim settlements.
please send the details. age 40, if i taken term insurance plans, in LIC 50 lacks, icici 50 lack , max newyork 50 lac, sbi life 50 lac , total 2 crore insurance taxken, then my claim amount total all insurance 2 cr recd.? or which amount recd.
You have not included Aviva i-life in the list.. It is again a very good term plan with low premiums… Infact it’s the cheapest term plan currently
Thanks for that info Ram – the quotes are based on what a reader had sent based on his research, and I think at the time Aviva wasn’t offering their low cost online plan that it offers today.
Let me think about how I want to include that information in here.
First of all thanks for your kind replies, I would like to know that is the so-side death case also covered in term plan.
God, that’s a scary question – why are you interested in that?
What’s your view on Aviva i-Life? Which is currently the cheapest term plan in India.
Sorry Chirag – but I have never looked at it and don’t know anything about it.
My Question is on a specific Term insurance provided by Aviva i-Life. I am 27 yrs of age and planning to take a cover of Rs 1 crore for a period of 35 years. The premium works out to be 7500 Rs approximately. This is buying online and the premium amount is very less. The company would bear the cost of tests. Has anyone taken a Aviva policy or any idea about it. This policy seems to be offering cheapest preimum as compared to LIC which is 4 times. Please provide a feedback on this.
Another Q is on type of death like Terror attack, bomb blast, accident or un natural death. Will there be problem in settlement of claims ?
Also any of the expert in this forum can let me know of any other company policy that is good and cheaper and hassle free with faster claim processing.
Appreciate if anyone could respond to this query.
Abhishek, there are two cases in which an insurance is settled or the sum assured/accrued bonus is paid one is maturity and another is on death. In any term policy there is no maturity only sum assured is paid if the policy is in force. So in any policy sum assured is paid on death to the nominee/dependant otherwise whats the point of insuring onself if dependants dont get the money immediately after death.
Actually in ULIPs, sum assured is paid on death but in case of the sum vested in securities there is a choice of withdrawing or keep invested till maturity.
In case of other insurance like money back, endowment, whole life, ULIP etc we have another word to look at that is policy paying term and maturity, which need not be the same. For example, You can opt for 15 year policy paying term where the policy matures after 20yrs etc and once the policy paying term is over you need not pay the insurance co, after maturity you get the maturity amount mostly sum assured + accrued bonus in case of endowment policies (ex : LIC’s Jeevan Sree) and in case of whole life policy +endowment after collecting sum assured + accrued bonus you still are covered till death or 100 yrs depends on what the policy says then the dependants/nominee gets the sum assured (ex: Jeevan Anand). But all these policies are coslty compared to pure term policy. It is best to keep your investments and insurance separate. Dont believe in what insurance agents tell about ULIPs etc since they will sell policies which will benefit them not us. They are sales men. We need to think whats best for us.
Thanks for responding Hema – very detailed response as usual.
Abhishek, Here are the answers as far as my understanding with term policies go..
1. Yes the premium stays the same for the entire policy term opted by you. Hence when you buy insurance at an younger age you get the benefit of paying less premium throught your policy term.
2.Mostly till 1-2 years suicidal deaths are not covered, it depends on each proivider on what deaths are covered and not covered read your policy documents for more information on the same. Most term insurance covers all kinds of accidental, death due to some major ailments and natural deaths.
3.All the causes listed by you sound like accidental deaths, unless the person uses these modes deliberately for suicide these deaths are covered. Insurance companies conduct an enquiry and once done based on the findings they settle/reject the claim. In accidental cases FIR by the police is a major factor which determines how the settlement will happen.
Hope this covers what you wanted to know.
That was quite detailed Hema – thanks!
Thanks Hema for the reply.
Please also help in clarifying below query:
Is it that the if the policy holder dies while the policy is in force, the sum assured in case of term insurance is paid to the family/nominated person only after the policy term ends. For example Person ‘A’ holds a term policy of tenure 25 yrs and after completion of 10 yrs of the policy, the person dies. Will the family has to wait till the completion of the entire term to receive the sum assured?
I think, it defeats the entire purpose of the insurance.
The reason I am asking this question is because I was told so by one agent. But he told that in case of ULIP, sum assured is paid to the family once the policy holder dies while the policy is in force. Hence, wanted to clarify in this forum.
I have few questions regarding term insurance which are as follows:
1. Do the premium for a term insurance remain the same for the entire policy term for the policy which I buy?
2. What are the kind of deaths that are excluded in the term plan?
3. Are following deaths covered in term plan?
a) Death due to Road Accident/Train Accident/Flight Accident
b) Death due to some other causes like: Electricity, Cooking Gas etc
All these questions are with regards to a pure/vanila term insurance without addition of any rider etc to it.
It’s a good note, but it added more confusion in my mind. I have small term insurance from HDFC and looking for a large sum insurance. But the problem is I am not feeling ensure then whole purpose of buying insurance defeated. I think IRDA should come up with more clarity. My question is I declared in policy that I smoke/drink ony few time, do they have a right to cancel the claim as may be .
From the rejection numbers – it seems to me that not all insurers pay out claims in the same manner. Some companies are stricter than others. As for if they have the right to cancel – I think that falls under interpretation – I mean how does one insurer interpret few times compared with another – is one stricter than another?
I’d personally be safer and pay extra but that’s just my opinion.
I would like to know the review of TATA AIG MAHA LIFE GOLD-GOAL FINDER
where the person is insured for 100yrs of his life ,he only has pay premium for 15yrs and 5% guaranteed return
I wasn’t aware of this product – will look to see if I can get some data and info on it.
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Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India’s leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.
Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder’s funds. The Company’s paid up capital as on 31 st August, 2010 is Rs 1,973 crore.