This article is for those who are looking to compare online term insurance plans in India, and have already decided their needs. If you aren’t clear what your protection needs are, we suggest you go through this note first. If you are sure about the type of insurance you need, you are all set to go to the next step – pick up the product and choose the company. Here’re some quick tips on how to do that.
There are various parameters you can compare and buy online term insurance in India. We’ve carefully picked up the ones that matter most. These are based on information published by the Insurance Regulator IRDA till 2014-2015, which is the latest available at this time. (Note : we keep refreshing the article with the latest data when available each year)
Parameters to Compare Online Term Insurance Plans in India
1. Price : Cheaper it is, better, obviously. But this is not the only factor.
2. Claims Settlement Ratio : This is also called Claims Acceptance Ratio. This is nothing but the % of claims paid to the nominee out of the total claims received by them. Read more about it here. Higher is the claims settlement ratio, better is our confidence level that the claim will indeed be paid out by that company. When you compare online term insurance plans in India, this is indeed a very important parameter. But beware – claims ratio is not always fully reliable.
3. Average Time to Settle a Claim : The company’s approach to claims is demonstrated amply in this parameter. Faster the speed of claims servicing, greater is our confidence that our family members will not have to go through pain (in addition to the emotional loss) for getting the insurance amount that is due to them. (In the single view table below, it has been derived using mean values of published intervals. For > 1 yr, mean value is taken as 366.)
4. Solvency Ratio : This is a little complicated. But to explain in simple words, it is the (financial) ability of the insurance company to settle all its liabilities (which include Claims from all term insurance plans) in case there is a situation of insolvency (bankruptcy) because of a sudden unforeseen event. IRDA stipulates that the Actual Solvency Margin should be 150% of the Required (calculated) Solvency Margin, i.e. 50% higher as a buffer. Solvency Ratio (Actual divided by Required) should be > 1.5, and is published by the IRDA every year. Higher it is, the better*, since it can ensure that our term plan claim is paid out even if there is a large event e.g. an earthquake in a metro city that kills lakhs of people (God forbid).
* From a financial analytics perspective, very high Solvency Ratio is not good since it shows there is too much idle money in the company’s books.
5. Financial Strength : Bigger is better. It’s that simple. Companies with larger customer funds (total premiums collected both from first-time buyers as well as renewals from old policies) have the muscle to manage contingencies better. Profit-making companies provide more confidence than loss-making ones. Having said that, all insurance companies take at least 7-8 years to start making profits, so the older companies have an advantage compared to younger ones.
IRDA, the insurance regulator ensures that minimum standards of performance and prudence are met by each insurance company. So there isn’t much to worry even if there are big variances between the numbers of various companies.
The 5 parameters above are key parameters. Based on these here is a snapshot of the latest data.
Head-to-head Comparison of Online Term Insurance Plans in India
View it full screen.
6. Ease of Buying : Online is a preferred method for buying term insurance plans today. Almost all companies (except LIC, unfortunately) have an internet-enabled buying process to apply and buy a term insurance plan. Online term insurance plans are also much cheaper than offline term insurance plans. The online buying method is strongly recommended for the reasons mentioned here.
7. Medicals or not : Some term insurance plans have medicals and some don’t. This depends on the amount of life insurance cover and different companies have different cut-offs. Go with your comfort level – there will be absolutely no impact on claims.
8. Your perception about the company : During interactions with the company earlier, when surfing the internet, when reading a newspaper, on your Facebook page, when seeing an ad on TV, when chatting with friends or office colleagues, etc. you would have already formed opinions about companies. Don’t ignore that. Whether it is good or bad, it is very likely to be accurate and indeed matters in your decision making.
Before you proceed to fill up the application form know what are some mistakes to avoid, how to declare your medical history, and things to ensure when you go through a medical test, etc. All these can affect your term insurance policy claim.
Read these important tips before you fill in the application form for your term insurance plan.
Apourv, these plans are not available in India to the best of our knowledge. Not sure if LIC had such a plan earlier, or still have one now.
We would continue with our earlier recommendation. Keep it simple and opt for a pure term insurance plan – it’s easier to manage it that way.
Sorry for the late response on your query, Apourv.
Sir, recently I came across the term “convertible term plans” where it’s possible to convert the term plan into some kind of investment/endowment plan after maturity so that we get some benefit out of the money invested in the term plan till maturity. Please explain them. I suppose they may have some additional premium for the convertible plan. Should we get a convertible term plan or a normal term plan?
Good question, Apourv. There are multiple ways to look at this.
1. Anyone cannot start an insurance company. It needs an min. initial investment of Rs. 100 crores in capital, as per IRDAI norms.
2. Every company has to maintain solvency margins, i.e. a min. fund that has to be kept aside which will cover all estimated liabilities to the extent of 1.5 times, i.e. 150%. This is closely monitored by the IRDAI as well. All life companies in India are well over this margin. IRDAI keeps reviewing this margin as well. Recently, they have tweaked the norms for Motor Insurance.
3. Insurance companies have strict investment norms. Except for ULIPs wherein customer chooses her/his own fund, money from all other funds can be invested only in Govt bonds, G-Secs and low-risk instruments. This is again monitored and enforced by the IRDAI.
4. The magic of reinsurance : What many don’t know is how insurance risk for a policy you buy is spread across the world. For policies beyond a threshold risk, what happens is that from the premium you pay, a portion of it is used to re-insure the sum assured. i.e. a re-insurance company would take a risk of the amount in case of death. IRDAI has stringent norms around this as well. The re-insurer would in turn re-insure that with maybe 5 other re-insurers at a cost, who would perhaps again do that with 5 others, etc. So in case of claim, instead of one company taking the entire hit, the claim would be paid by each re-insurer to the extent of risk they have taken. This buffers the impact for the company that initially sourced the policy.
You would have read in the newspapers yesterday about how GIC India (India’s largest re-insurer) is paying Rs. 50 cr for the Egypt Air crash. It is a small part of the overall claim for the loss of aircraft and passengers. It would be the part that they had re-insured.
Re-insurance is a beautifully lubricated mechanism worldwide, and in our view the biggest reason why insurance companies work so well around the world.
Almost all the insurance companies of the world are 150-200 years old, i.e. almost ever since the industry began. So companies may get bought or sold at a portfolio level, but customer interest and the promise to pay the claim, are always protected.
Hope this helps.
I have a question? Will a insurance company last for 40 years in the future? What happens if the company fails during the policy term? Does IRDA has protection against this?
Aegon Life, you mean. We find no reason it is not good. IRDAI sets guidelines and monitors insurer activity. We believe the norms and the monitoring are both strong enough to ensure that bankruptcy does not happen.
We do not recommend specific companies on this website, only give you data and information related to products and their benefits. Brand choice should be entirely yours. Whoever does recommend specific brands is highly likely to have a reason for doing so.
Is Aegon Religare good? Also, what happens if in future, insurance company does bankrupt or out of order? Does IRDA provide any norms or protection or prevention of this happening? Or should I go with SBI etc.
Thank you for your kind words, Mohit. It fuels our purpose.
1. No, these are called ‘level term’ premiums, i.e. they stay at the same level for the whole term (tenor) of the policy.
2. Easy. First, see the benefits they offer through their products – they are exactly the same, both cover you for death. Second, look for add-ons such as Accidental Death benefit, Critical Illness, etc. We recommend that to make your cover more comprehensive. They do not cost much for the protection they offer. Third, rejection of claim – does not depend on the company but the way in which you apply. If you are 100% truthful about your plan, your claim ratio will be 100%, whichever the company. Finally, your comfort on the brand. At MintWise we do not influence that – it is your call entirely and you are more likely to get it right that way.
3. Yes you can, but make sure you do it for the right reasons (as mentioned in the article). We can help you if you need us to.
4. We are adding this point – use the link below for comparison and purchase 🙂
http://www.mintwise.com/term-insurance-compare
Cheers.
Hi Team MintWise,
Firstly, I’d like to appreciate the quality and depth of the articles written in the Term Insurance series. You really are hidden jewels!
I have a few queries, would be great if you can respond:
1. Do these annual premiums increase with every year? Or are they going to be remain constant for the tenure of my cover?
2. I am confused between LIC and ICICI Pru Life. While LIC has among the best CSR and reputation among companies, it’s premium is almost 60% higher. What bases should I cover today to ensure that ICICI will not reject my claim in case it is required?
3. I have read that you recommend taking multiple term plans. Can I take multiple term plans from the same company?
Thanks a ton in advance for your help.
Selvam, to further our reach, we are launching term insurance plans comparison and purchase through MintWise. Do check out the new website on http://www.mintwise.com
Once again, thanks for your feedback 3 months ago.
Team MintWise.
Thanks for you wonderful feedback, Selvam. We are delighted to hear that. We are working on promoting the website to reach more Insurance buyers in India. Thanks again.
Thanks for the articles, they are beautifully written. This website is a hidden jewel – why don’t you promote it more?
Great Analysis!!! Helped me to make my choice on the company i should go with. Big thank you guys!!!
No company or plan will deny you a term plan upfront, Sav. Some companies may not offer you an online policy. You will need to fill up an additional questionnaire and the responses may decide if and how much your premiums could be revised upwards.
We suggest you choose your company and product first, and then take it forward.
Hope this helped you.
No company or plan will deny you a term plan upfront, Sav. Some companies may not offer you an online policy. You will need to fill up an additional questionnaire and the responses may decide if and how much your premiums could be revised upwards.
We suggest you choose your company and product first, and then take it forward.
Hope this helped you.
Hi. I am a seafarer and spend half my time on ships. Would like to know which plans cover me while on board ships as well.
Hi. I am a seafarer and spend half my time on ships. Would like to know which plans cover me while on board ships as well.
KB, the choice of term plan depends on individual needs and preferences. To keep the biases out, we only provide information and advisory on term insurance in general, and do not recommend specific products or companies on this website. The decision on which one to buy will have to be entirely yours.
Sorry if this response leaves you disappointed.
KB, the choice of term plan depends on individual needs and preferences. To keep the biases out, we only provide information and advisory on term insurance in general, and do not recommend specific products or companies on this website. The call will have to be entirely yours.
Sorry if this response leaves you disappointed.
Hello,
What is your take on Max Life Term Plan? Should I go ahead with this or Should I look into HDFC click to protect plan?
-KB
Hello,
What is your take on Max Life Term Plan? Should I go ahead with this or Should I look into HDFC click to protect plan?
-KB
Mitesh, whenever you buy a life insurance policy you need to inform that insurance company about all PREVIOUS policies you have from any other insurance company. You also need to do this when you are SIMULTANEOUSLY applying for multiple life insurance policies at the same time. You need not inform them about any policy that you may buy LATER.
Not informing is equivalent to non-disclosure and may lead to death claim rejection. But this may not affect maturity claims, if any.
Accordingly, please list all the policies you have bought in order of purchase date and inform each company accordingly. There is no standard form for this. Get in touch with their customer service and check how it should be done. Remember to get an acknowledgement from the company on having received this information.
Mitesh, whenever you buy a life insurance policy you need to inform that company about all PREVIOUS policies or any other policy that you are SIMULTANEOUSLY applying for. You need not inform them about any policy that you buy LATER. Not doing so is equivalent to non-disclosure and may lead to death claim rejection. This may not affect maturity claims, if any.
Accordingly, please list all the policies you have bought in order of purchase date and inform each company accordingly. Ther is no standard form for this. Get in touch wih their customer service and check. Remember to get an acknowledgement from the company on having received this information.
How to inform about other company’s policy details to some other companies? I have total 13 policies & I haven’t informed all the companies about the other ones. I want to know how to inform them? is there any online facilities available where I can inform. I have policies from almost all the known companies.
How to inform about other company’s policy details to some other companies? I have total 13 policies & I haven’t informed all the companies about the other ones. I want to know how to inform them? is there any online facilities available where I can inform. I have policies from almost all the known companies.
the best article on term insurance that i have read so far… superb articles in the whole website!!! please keep educating people this way… thanks to mintwise
the best article on term insurance that i have read so far… superb articles in the whole website!!! please keep educating people this way… thanks to mintwise
Jayendra, there is nothing called best plan. What is best for you need not be best for someone else. To know what is best, first list your exact requirements and then read our articles to get a perspective before you take the decision.
Also, we do not recommend any specific product or company on this website.
Jayendra, there is nothing called best plan. What is best for you need not be best for someone else. To know what is best, first list your exact requirements and then read our articles to get a perspective before you take the decision.
Also, we do not recommend any specific product or company on this website.
hi im 38year old i purchese term plan lena he to kon plan best rahega
hi im 38year old i purchese term plan lena he to kon plan best rahega
Thanks for your appreciation, Maneesh.
Thanks for your appreciation, Maneesh.
So Far the BEST article on Term Insurance. All and Everything under one place. Please bring such more articles providing only the accurate and exact information required to readers, customers and consumers. Great Job Done.
So Far the BEST article on Term Insurance. All and Everything under one place. Please bring such more articles providing only the accurate and exact information required to readers, customers and consumers. Great Job Done.
Imtiaz, there is no reason why both HDFC Life and LIC and not equally good or bad. In our view, they are both top-class companies. If you let us know the basis of your confusion, we could perhaps help you. Also, if there is something specific you are looking for as a feature in the product, you could let us know that as well.
Imtiaz, there is no reason why both HDFC Life and LIC and not equally good or bad. In our view, they are both top-class companies. If you let us know the basis of your confusion, we could perhaps help you. Also, if there is something specific you are looking for as a feature in the product, you could let us know that as well.
I want to purchase a term policy for 35 year,my age is 28.want to cover 75 lac ,confused between hdfc protect plan & lic e term plan ..please guide ….which one best ?
I want to purchase a term policy for 35 year,my age is 28.want to cover 75 lac ,confused between hdfc protect plan & lic e term plan ..please guide ….which one best ?
Excellently presented information. This is the best blog on term insurance that I have seen so far. Great going, mintwise team.
Excellently presented information. This is the best blog on term insurance that I have seen so far. Great going, mintwise team.
Pankaj, you did not mention your age but even without that we can tell you that your existing term insurance of Rs. 25 lakhs may be very expensive. You will get much cheaper term plans today from all companies including LIC.
Our suggestion is that you stop your existing term plan, but BEFORE you do that buy a new term plan (online is recommended) from a company of your choice. Ensure that the new policy is issued before you stop the existing plan.
Whichever company you eventually buy from (including LIC), the age taken will be as of today, not as of 5 years back.
Pankaj, you did not mention your age but even without that we can tell you that your existing term insurance of Rs. 25 lakhs may be very expensive. You will get much cheaper term plans today from all companies including LIC.
Our suggestion is that you stop your existing term plan, but BEFORE you do that buy a new term plan (online is recommended) from a company of your choice. Here’s an article that will help you with your decision.
Whichever company you eventually buy from (including LIC), the age taken will be as of today, not 5 years back.
I had taken LIC term insurance 5 years before for 25 lac cover, It premium is 8725. I want to increase my cover for 50 lac. Can I do it with same insurer. Or When I take LIC online term plan then will LIC consider my premium rate with 5 years below age.
I had taken LIC term insurance 5 years before for 25 lac cover, It premium is 8725. I want to increase my cover for 50 lac. Can I do it with same insurer. Or When I take LIC online term plan then will LIC consider my premium rate with 5 years below age.
Thanks for the appreciation, Arpit.
Thanks for the appreciation, Arpit.
very well written, crisp and super useful article. Congratulations!
very well written, crisp and super useful article. Congratulations!
Parth, it is definitely the right age especially if you are planning to get married. We appreciate your maturity in thinking about it at such a young age. Take the cover up to the age of 60 – it is not required beyond that. More in this link below.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
We do not recommend companies on this website. We only provide information for you to make the decision. Use the link below to compare.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
Parth, it is definitely the right age especially if you are planning to get married. We appreciate your maturity in thinking about it at such a young age. Take the cover up to the age of 60 – it is not required beyond that. More in this link below.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
We do not recommend companies on this website. We only provide information for you to make the decision. Use the link below to compare.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
Parth, it is definitely the right age especially if you are planning to get married. We appreciate your maturity in thinking about it at such a young age. Take the cover up to the age of 60 – it is not required beyond that. More in this link below.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
We do not recommend companies on this website. We only provide information for you to make the decision. Use the link below to compare.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
Parth, it is definitely the right age especially if you are planning to get married. We appreciate your maturity in thinking about it at such a young age. Take the cover up to the age of 60 – it is not required beyond that. More in this link below.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
We do not recommend companies on this website. We only provide information for you to make the decision. Use the link below to compare.
https://www.mintwise.com/blog/compare-term-insurance-plans-india-2014/
Hello, I am at age 24 and single and working with MNC,it is right age for taking term plan..if yes than up to which age and from which company..Thanks in advance for your suggetion.
Hello, I am at age 24 and single and working with MNC,it is right age for taking term plan..if yes than up to which age and from which company..Thanks in advance for your suggetion.
Buddhi, to the best of our understanding, all the instances you mentioned are covered both by LIC’s e-term plan as well as SBI Life e-shield term plan. Also, with e-Shield, don’t forget to add the Accident cover.
Buddhi, to the best of our understanding, all the instances you mentioned are covered both by LIC’s e-term plan as well as SBI Life e-shield term plan. Also, with e-Shield, don’t forget to add the Accident cover.
Anup, if you are applying for 2 term policies simultaneously, you MUST disclose it transparently to both the companies. You must also inform about any other policy that you could have taken much earlier, if it is currently in force at the time of application.
Anup, if you are applying for 2 term policies simultaneously, you MUST disclose it transparently to both the companies. You must also inform about any other policy that you could have taken much earlier, if it is currently in force at the time of application.
I would like to buy LIC E Term Insurance for my wife consider high claim s/t ratio. (I am having SBI Life for myself).
Could you please help me to know the exclusion in LIC (if any) like Terrorist Attack (Mumbai Case), Bomb Blast, Natural Disaster like Land Sliding or Kedarnath Case.
Also the same comparison with SBI Life. (I am considering only these 2 plans)
Additional Info – Female/27 yera/Non-tobbaco user/working (3-5 LPA)
Thanks in advance.
I would like to buy LIC E Term Insurance for my wife consider high claim s/t ratio. (I am having SBI Life for myself).
Could you please help me to know the exclusion in LIC (if any) like Terrorist Attack (Mumbai Case), Bomb Blast, Natural Disaster like Land Sliding or Kedarnath Case.
Also the same comparison with SBI Life. (I am considering only these 2 plans)
Additional Info – Female/27 yera/Non-tobbaco user/working (3-5 LPA)
Thanks in advance.
I am an Indian and planing to buy 2 term insurance, I want to will I have to disclose my plan of buying 2nd term insurance while buying first one
I am an Indian and planing to buy 2 term insurance, I want to will I have to disclose my plan of buying 2nd term insurance while buying first one
You can apply for a term insurance plan online but only from within India (or in the Gulf countries where some Indian insurance companies have a representative office). Whether you are an NRI or otherwise, you can do it when you come to India for any short visit. You need to clearly state that you will be traveling abroad. Once you get the insurance, it covers you for death anywhere in the world.
Anoop, you can apply for a term insurance plan online but only from within India (or in the Gulf countries where some Indian insurance companies have a representative office). Whether you are an NRI or otherwise, you can do it when you come to India for any short visit. You need to clearly state that you will be traveling abroad. Once you get the insurance, it covers you for death anywhere in the world.
I am an Indian citizen but moved to US recently after getting H1b visa. I am 34 ,and want to go an term insurance for 1cr . Can I apply from US through online or is it I have to be physically present in India. My stay in US can be anywhere from 3-6 year. Please advice which term insurance policy would be apt for my situation. I checked with HDFC they said either you have to be in India or an NRI to apply for click to connect policy. Overseas residing Indians are not eligible. Looking forward to hear from you .
I am an Indian citizen but moved to US recently after getting H1b visa. I am 34 ,and want to go an term insurance for 1cr . Can I apply from US through online or is it I have to be physically present in India. My stay in US can be anywhere from 3-6 year. Please advice which term insurance policy would be apt for my situation. I checked with HDFC they said either you have to be in India or an NRI to apply for click to connect policy. Overseas residing Indians are not eligible. Looking forward to hear from you .
Rohit, you can also check this article now.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
You can check this article now.
https://www.mintwise.com/blog/term-insurance-policy-age-60/
Rohit, 35 years is indeed the max that LIC offers. But wait – 35 is more than enough! If you are logical and rational, and if you are buying a term plan to cover your liabilities and/or protect your income, then you do not need life cover after age 60 (max 65) years. Beyond that you are betting on your death. Please await a detailed article on this in the next 3 days.
You can increase coverage by buying new term plans appropriately, or by taking an automatically increasing Sum Assured plan.
Rohit, 35 years is indeed the max that LIC offers. But wait – 35 is more than enough! If you are logical and rational, and if you are buying a term plan to cover your liabilities and/or protect your income, then you do not need life cover after age 60 (max 65) years. Beyond that you are betting on your death. Please await a detailed article on this in the next 3 days.
You can increase coverage by buying new term plans appropriately, or by taking an automatically increasing Sum Assured plan.
Hi, I am 32 and am planning to buy a term insurance with LIC “eterm”. Whilst the premium amount is relatively high when compared with other private insurers, i have trust on LIC and hence this decision.
While exploring options, i realised that the maximum coverage period can only be 35 year i.e it covers me till 67 yrs of age. I would like to take coverage for the maximum eligibility period i.e 75 years, is there an option for this other than taking a new cover at age 40 to cover till 75.
Also, can i increase the coverage amount from time to time depending on my earning and related committements
Hi, I am 32 and am planning to buy a term insurance with LIC “eterm”. Whilst the premium amount is relatively high when compared with other private insurers, i have trust on LIC and hence this decision.
While exploring options, i realised that the maximum coverage period can only be 35 year i.e it covers me till 67 yrs of age. I would like to take coverage for the maximum eligibility period i.e 75 years, is there an option for this other than taking a new cover at age 40 to cover till 75.
Also, can i increase the coverage amount from time to time depending on my earning and related committements
Not at all. Please stay put. You can evaluate it after a year or two.
To clarify the way one should decide on their term plan, please use solvency ratio and profitability as the least important factors. Claims ratio, claims servicing and price are the 3 most important ones. Also any brand perception that you have, is important as well.
Not at all. Please stay put. You can evaluate it after a year or two.
To clarify the way one should decide on their term plan, please use solvency ratio and profitability as the least important factors. Claims ratio, claims servicing and price are the 3 most important ones. Also any brand perception that you have, is important as well.
Sir
I had recently taken term plans from both max life @ bharati axa for 1 crore each. Now according to the parameters you have given, max is ok though its solvency rate is low but bharati doesnt seem to be a good bet. Should I exit from it?
shahnawaz
Sir
I had recently taken term plans from both max life @ bharati axa for 1 crore each. Now according to the parameters you have given, max is ok though its solvency rate is low but bharati doesnt seem to be a good bet. Should I exit from it?
shahnawaz
The choice of term plan and company is your decision entirely – we do not influence it.
Your question on claim is very pertinent and we appreciate it. At the time of applying for the term insurance plan, most companies will ask you about your current travel habits. They generally check if you travel abroad regularly or have plans to do so in the next 365 days. If yes, they may ask you about the countries you intend to travel to. Some companies may not cover you for death in certain countries (e.g. some African countries where lives of foreigners are targeted for theft). This will be mentioned in the Product Brochure and/or Key Features Document. Without bothering too much, please respond to the questions asked in the application form honestly and appropriately.
After you declare everything transparently and once you get your term insurance policy, it covers you for death anywhere (unless the policy has clear country exclusions esp. politically unstable or socially unsafe countries.) Do reconfirm by checking the exclusions in the Policy Contract. Most term plans in India do not have any country exclusions. So whether you die in India, US, Africa, in the sky, on the 100th floor, in a submarine, or even on the moon, it does not matter! What is important and mandatory is that your nominee provides adequate evidence of your death.
In the plane crash example you mentioned, or even in case the bodies are not found (like the recent Malaysian Airlines MH370 example), since the bodies can perhaps never be recovered, the airline’s statement that the passengers are assumed dead is good enough to get your claim.
Hope this clarifies it, Amar.
The choice of term plan and company is your decision entirely – we do not influence it.
Your question on claim is very pertinent and we appreciate it. At the time of applying for the term insurance plan, most companies will ask you about your current travel habits. They generally check if you travel abroad regularly or have plans to do so in the next 365 days. If yes, they may ask you about the countries you intend to travel to. Some companies may not cover you for death in certain countries (e.g. some African countries where lives of foreigners are targeted for theft). This will be mentioned in the Product Brochure and/or Key Features Document. Without bothering too much, please respond to the questions asked in the application form honestly and appropriately.
After you declare everything transparently and once you get your term insurance policy, it covers you for death anywhere (unless the policy has clear country exclusions esp. politically unstable or socially unsafe countries.) Do reconfirm by checking the exclusions in the Policy Contract. Most term plans in India do not have any country exclusions. So whether you die in India, US, Africa, in the sky, on the 100th floor, in a submarine, or even on the moon, it does not matter! What is important and mandatory is that your nominee provides adequate evidence of your death.
In the plane crash example you mentioned, or even in case the bodies are not found (like the recent Malaysian Airlines MH370 example), in our view, the airline’s statement that the passengers are assumed dead is good enough to get your claim.
Hope this clarifies it, Amar.
Hi, After reading many articles on term insurance on various sites, I found mintwise the best among all. It has crisp and clear information. Thanks a lot guys. I have following query on term insurance:
I have decided to take term insurance from Max Life of around 1 CR for 30 year term. After some research I found that settlement ratio of Max life is around 95% and solvency ratio is around 2.0. This seems good enough. I had shortlisted 4 companies : 1. HDFC 2. SBI 3. ICICI 4. Max life. Among these premium of Max life is best as compared to others.
My question is as follows: If I take term plan now in India and continue it by paying premiums regularly. IN future If I move and relocate outside India then is the term plan will still be valid ? Do companies cover death even outside India ? Also, what happens in case of some mishap like plane crash where the bodies might never be recoverable ? Do companies settle the claims in such cases as well ?
Looking forward for your reply. Thanks.
Amar
Hi, After reading many articles on term insurance on various sites, I
found mintwise the best among all. It has crisp and clear information.
Thanks a lot guys.
I have following query on term insurance:
I
have decided to take term insurance from Max Life of around 1 CR for 30
year term. After some research I found that settlement ratio of Max life
is around 95% and solvency ratio is around 2.0. This seems good enough.
I had shortlisted 4 companies :
1. HDFC
2. SBI
3. ICICI
4. Max life
Among these premium of Max life is best as compared to others.
My question is as follows:
If I take term plan now in India and continue it by paying premiums
regularly. IN future If I move and relocate outside India then is the
term plan will still be valid ? Do companies cover death even outside
India ? Also, what happens in case of some mishap like plane crash where
the bodies might never be recoverable ? Do companies settle the claims
in such cases as well ?
Looking forward for your reply.
Thanks
Amar
Nice Article. Thanks for your effort !!
Nice Article. Thanks for your effort !!
Whatever sites I have visited for making my decision about insurance, I find this is the best site where easy and proper analysis has been provided, thank you
Whatever sites I have visited for making my decision about insurance, I find this is the best site where easy and proper analysis has been provided, thank you
I have been really confused about which term policy to buy but finally i was able to make a decision with the information provided in this article!!! thanks to you Sir.
I have been really confused about which term policy to buy but finally i was able to make a decision with the information provided in this article!!! thanks to you Sir.
Generally accidental death benefit riders attached to a life insurance plan are a little more expensive that Personal Accident insurance from the general insurance companies. But one may not end up taking the trouble to separately apply for a PA cover, so you can actually go ahead and just buy it with your term plan. If you do that, in case of a claim, paperwork needs to be done with only one company.
Generally accidental death benefit riders attached to a life insurance plan are a little more expensive that Personal Accident insurance from the general insurance companies. But one may not end up taking the trouble to separately apply for a PA cover, so you can actually go ahead and just buy it with your term plan. If you do that, in case of a claim, paperwork needs to be done with only one company.
Thanks for this very comprehensive view. havent read this kind of stuff anywhere. i have a question for you – is it ok to buy term insurance with accident rider or just plainly for normal death coverage? please tell me.
Thanks for this very comprehensive view. havent read this kind of stuff anywhere. i have a question for you – is it ok to buy term insurance with accident rider or just plainly for normal death coverage? please tell me.