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.