Sample Term Insurance Quotes from various insurance companies

by Manshu on March 8, 2011

in Articles

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.

Sample Quotes:

  • Age – 31 Years
  • Policy Term – 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 – 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 – 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 can’t answer that question since I’m not well versed with insurance, but I thought I’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 I’m not intimately familiar with how these numbers are calculated  – 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 – one LIC and one other insurer, as that makes it easier to manage the insurance if in the future I decide that I don’t need so much cover, or if one insurer declines to pay, then at least there is the other one.  So far, I haven’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 – in absolute terms it is not very significant, and I’m not too concerned with paying the extra money.

So those are some of my thoughts – please add to the discussion, as I’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.

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