Welcome to the world of online term insurance plans in India. Finally, India has awaken to the need and importance of having a term insurance plan. Those who have adopted to the internet have been the forerunners in buying online term insurance plans. Instead of being sold an insurance plan that will neither serve our needs but only fattens the agent’s pockets, term insurance is now being bought by customers directly. What can be better than this?
Here’s a look at the range of premiums for online term insurance plans (basic term insurance) available in India.
And this is listed in increasing order of premium to help you analyze faster.
Illustration below is for a
- life cover Rs. 75 lakhs,
- for a Healthy, Non-Smoker Male,
- aged 30 years,
- for a duration of 30 years (i.e. till age 60 years)
This comparison is all for basic online term insurance plans where the insurance cover is constant throughout the term of the plan. This is without any additional riders (add-ons) such as Accidental Death, Disability, Critical Illness, etc. The premiums are taken from the websites of respective companies.
Click anywhere on the table below to see it full screen.
Notice how large is the variance of the premiums for online term insurance plans. There are various reasons for so much difference between premiums. But suffice to say at this time that they all offer almost exactly the same benefit. Of course, there are minor variances in what kind of deaths they cover. e.g. some cover death from terrorist attacks, some others don’t. Some cover death from adventure sports (like parachuting, bungee jumping, para-sailing, etc.), while some others don’t. Remember to read the fine print before you decide which of the online term insurance plans you are going in for.
To know how much is the premium in your case, just go an IRDA-licensed Aggregator website, input your details and get the premium rates. The website will then re-direct you to the Insurance Company’s website so that you can complete the purchase. This is generally a very simple and quick process.
A Word of Caution
When you choose from online term insurance plans don’t decide based on price alone. Cheapest may not necessarily be the best one for you. Claim Settlement Ratio can be an important consideration (among other factors) because such online term insurance plans provide only the benefit of claim and there are no returns.