7 Best Online Term Insurance Plans in India
Life is totally unpredictable. You can never judge what may happen, the very next moment. We are away at sea for a considerable part of the year and we have numerous financial obligations. Not to mention, we have our family to look after too. Creating a secure environment for their better tomorrow is our moral duty. Having a term insurance would secure your liabilities and would safeguard your family from unnecessary hardship, in case something happen to you.
Term insurance is a fundamental insurance product which is designed to ensure that in the event of policy holder’s death the family gets the cover amount. It also provides risk coverage for a certain period of time. If the insured dies during the policy period or in-force (i.e. when the policy amount is still in the process of being paid); then in such cases death benefit is paid. The premium for such term insurances is negligible.
The major benefits of buying term policies online are
1) Cheaper than conventional/regular plans like endowment plans or money back life insurance plans which are basically offline plans.
Note: Online plans are nearly 30 to 40% cheaper than these offline plans.
2) The application submission process is online through the company’s official website hence, it is a hassle free operation.
3) The buying procedure is totally independent. No agent or advisor will influence or distract you. You can opt for any term insurances according to your needs.
There are certain factors one must consider while buying a term insurance plan:
- Claim settlement history/record in the consecutive previous years of the life insurance company according to IRDA’s latest claim/death settlement ratios.
- Affordability i.e. the premium cost.
- Brand Name
- Quality of service provided to customer while buying the policy and the most important ‘after sales service’ (ASS)
- Ease of buying the term insurance plan online.
- Customer feedbacks
The 7 best online term insurance plans in India are as follows:
ICICI Prudential i-protect online term insurance plan
This plan was launched by ICICI Prudential life Insurance in the year 2010.
The key features of this plan are as follows:
- It offers death benefit or terminal illness benefit and in the case of permanent disability, the future premiums are exempted. The death benefit is paid to the nominee on the first occurrence of either life assured’s death or on the diagnosis of terminal illness. All such benefits are covered by the entire plan.
There are three payout options of death benefit:
- Lump sum: The entire death benefits amount is given as a whole.
- Regular Income: Under this option 10% of the death benefits amount is payable every year for 10 years.
- For example, if the sum assured is about 1Cr the nominee will be receiving Rupees 83,000 per month for 10 years.
- Increasing income option: The death benefits amount payable to the nominee every year for 10 years is 10%; however the income amount keeps increasing every year by 10%.
- For example, if the assured sum is 1cr. The nominee will receive, rupees 83,000 for the first year, in the second year the nominee will receive rupees 91,667 and so on. (there will be 10% hike in successive years)
- Accidental Death Benefit and Critical Illness Benefits are also included in this plan. In the case of Accidental Death, the nominee will receive the basic sum assured as well as the sum assured under accidental death benefit.
For Critical Illness Benefits, they have included 34 diseases in total under their policy plan. If the policyholder claims any of the diseases amongst those mentioned 34 diseases the policyholder receives the entire amount mentioned in lump sum irrespective to how much the policyholder actually spends for his/her disease.
HDFC Life’s online term insurance plan
HDFC Life insurance has a product named click to protect which provides financial security to you and your family.
Click to protect plan have certain eligibility criteria which are as follows:
- Minimum Age-18 years
- Maximum Age-65 years
- Minimum Sum Assured-25 Lakhs
- Maximum sum assured-No limit
- Maximum Maturity Age-75 years
- Minimum Policy Term-10 years
- Maximum Policy Term-40 years
- Premium Payment Options-Regular Pay in the form of annual payment/half yearly payment or quarterly payment.
Death Benefit under Click to Protect:
In case of death of the policyholder the death benefit for the nominee for single premium pay policy is 125% of single premium or the sum assured (whichever is higher), and other than single premium pay policy death benefit is 10 times of premium amount or 105% of all premiums paid as on death or sum assured (whichever is higher)
LIC’s e-term plan online term insurance plan
LIC’s e-term plan is also a similar plan which provides financial security to the policy holder’s family (Nominees) in the case of sudden demise of the policy holder. Under this plan, there are 2 categories of premium rates namely Aggregate lives and Non-Smokers Lives. For a sum assured up to 49 lakhs only aggregate category rates would apply whereas for a sum assured up to 50 lakhs and above there is an option to choose from differential premium rates for non-smokers category.
For all the applicants applying for non-smoker’s category are bound to undergo the urine cotinine tests. The test is mandatory.
Max Life Insurance online term plan
Max Life Insurance term plans have 3 online term plans which are as follows:
- Max Life’s Basic Life Cover
- Max Life’s online term plan life cover + Monthly Income
- Max Life’s online term plan life cover + Increasing Monthly Income plan
|BENEFITS||Basic Life Cover||Life Cover+ Monthly Income||Life Cover + Increasing Monthly Income|
|Full Life Cover on Death||YES||YES||YES|
|Additional tax-free monthly income for family for 10 years||
|Monthly income increases by 10% every year||
|For 35 year old healthy male||Value Protection- 1CR||Value Protection- 1.48CR||Value Protection- 1.69CR|
|Total premium- 10,200||Total premium- 14,000||Total premium- 15,400|
The comparison of 3 basic plans of Max Life Insurance is provided in a tabular form which gives details of each plan as well gives a direct comparison of the three plans.
Kotak Life Insurance preferred e-term plan
Kotak Life Insurance plans are probably the cheapest among all the other life insurance plans. The company also has decent claim settlement ratio of about 90.6%. Kotak’s plan has an option called ‘Recurring Payout’ wherein part of the claim is paid on policy holders death and fixed monthly or yearly amount is paid to the nominee for next 15 years.
SBI LIFE INSURANCE e-Shield online term plan
SBI’S premiums are bit higher than all the other insurance companies. SBI’s Life insurance’s e-shield plan is a substitute for LIC’s e-term plan. The premiums of e-shield plans are quite low as compared to e-term plan.
SBI e-shield mainly offers 4 options:
- Level Cover
- Level cover with accidental death benefit
- Increasing cover in which basic sum assured is increased at the rate of 10% simple interest after every fifth policy year without increasing the premium.
- Increasing cover with an accidental death benefit.
Bajaj Allianz Life Insurance
Bajaj Allianz provides you with a special feature in which you can opt for the individual as well as a joint insurance policy for you and your spouse. The detail benefits of accidental death and the regarding premiums are on an average same as other insurance providers.
When choosing a term plan for yourself, you should do a through market research and then go ahead with the plan which suits your needs.