Give your family complete financial security in the case of your unfortunate death
Term Insurance Plans - Compare and Buy Online
Compare Online Term Insurance plans from India's Best Insurance brands
"Roti, kapda, makaan ... aur ek Term Plan"
Why a Term Plan is so essential to stay prepared for life's unpleasant surprises.
If you are the family breadwinner and in your late 20s, 30s or early 40s, the thought of your own death is not likely to cross your mind too often. That is not surprising. Statistically, it is only a small set in your group that will not live to officially retire from the work they do. The only problem is that we do not know who all belong to that set. And having a family that we love so much is reason enough to buy the comfort of being financially secure, with a term insurance plan.
Key benefits of a Term Insurance Plan : Funds to take care of your family's expenses when you are gone, clearing debts like a home loan, personal loan or vehicle loan, fulfilling the family's long term goals such as higher education, marriage, spouse's retirement and health costs. Most importantly, your peace of mind.
Additional benefits of a Term Insurance Plan : To make the term plan more comprehensive, use riders (add-ons) such as cover for Terminal Illness, Accidental Death, Accidental Disability or Dismemberment, Critical Illnesses and Waiver of Premium. And all this comes for just a few thousand rupees, lower, perhaps, than your daily conveyance costs.
What are Term Insurance Plans
Some absolute basics on how these plans work
- Term Insurance plans cover pure risk of death
- Premium stays constant for the entire policy period
- Nothing returned if you survive the policy period
- Very high cover at very low cost
- Married with dependant spouse
- Married with children who are not earning
- Anyone taking care of her/his parents or parents-in-law
- Any other earner who has a dependant, i.e. someone depending on the earner's income
- Other kinds of policies have low risk cover for the same premium
- Other kinds of policies are primarily meant as investments where returns are important, not the life cover
- No other financial product can replace a term insurance plan
- It is the foundation of one's financial plan - planning for investments come after term insurance plans
- Immediately after marriage since your spouse will need support of your income for life
- When you get your first child, second child since they will incur regular expenses and large expenses such as higher education, marriage, etc.
- When your parents come home to start living with you
- If you have a family history of illnesses such as cancer, diabetes, etc.
- Get online and customize your search of term insurance plans
- Fill up the application form yourself so that you are sure that everything is declared
- Submit documents and get medical tests done if asked for
- Your policy gets issued based on your overall profile and response. That's it!
- Buy in Online through a website
- You need to be in India at the time of buying the term plan
Eligibility for Term Insurance Plans
The upper and lower limits of eligibility for buying a term insurance plan in India
Term Insurance means life insurance which covers you only for death. In the case of death of the policyholder during the policy period, the insurance company pays a death claim equal to the Sum Assured or Death Benefit. In case you survive the policy period, there will be no maturity benefit i.e. nothing is returned to you. Death claim may be paid as a lump-sum amount, or in instalments, or as a combination of both.
Adults Only! You need to be at least 18 years old to be able to buy a term insurance plan. At the most, you can be 70 years old. If you are not in this range, you will, in all likelihood, not even need a term policy.
When buying online, you need to apply for a minimum sum assured of 10 lakhs. Generally, companies offer you cover that can be up to 20 times your annual income. There is virtually no limit as long as you can establish your income and justify the need for a high life insurance cover.
Insurance companies cover healthy (standard) as well as marginally unhealthy (sub-standard) lives. So if you have diabetes, or blood pressure, or have had a surgery in the past, most companies would offer you a term plan with higher premiums (20% ~ 150% higher) as long as the health problems are within pre-determined levels.
CITY / TOWN
Geographical coverage for term insurance varies from company to company because of the need to carry out medical tests. But if you are from the top 250 cities/towns in India, you are most likely eligible to buy from most insurance companies.
Calculating Premium for your Term Insurance plan
What determines the Premium you pay for your Term Policy?
AGE & PERIOD
Higher your Age and the Period of cover, more will be your Term Insurance premium.
It is advisable to buy your term insurance plan early in life, ideally between the ages 24-28. That's when one generally needs life cover because of marriage and the responsibility of a family. That's also when buying term insurance is cheapest. With every year's delay, it gets more expensive.
Term Insurance premium for Females is slightly lesser than that for Males.
Most companies offer lower rates for females. That's not a marketing gimmick - women actually have a lower mortality (death) rate than men in every age group.
The maximum total life cover you can have is generally 20 times your Income.
The thumb rule is 20 times, but it depends on age as well. The final decision is taken by the insurance company. Note that the Life Insurance limit includes the sum assured for all Life Insurance policies that you already have or are applying for in parallel.
Premium for Smokers would be higher than for non-smokers by 0% - 70%.
We all know that smoking is greatly injurious to health and mortality (death) rate data reinforces that statement. Hence smokers and tobacco users need to pay more than others. For higher age groups, the incremental Term Insurance premium for smokers can be really very high.
Term Insurance Plans - Ensure Cover Till 60
Why the term period of your term insurance policy is a very important factor
That's right. Or up to whatever is your Retirement Age.
If the purpose of buying a term insurance plan is to protect income, then clearly you do not need it beyond your retirement age. That's because the income which you are trying to protect will be there only till your Retirement Age.
If the purpose of buying a term insurance plan is to cover large debts or loans, such as a home loan, even then going beyond retirement age is not ideal. If you check your home loan tenor, you will notice that the loan does not extend beyond your retirement age. It never does. So if you survive till retirement, your loan will already be paid off!
So MintWise does not advise you to go for a term insurance plan beyond your Retirement Age. Instead, how about investing the extra money and adding to your retirement pot so that you and your spouse can use the money yourselves?
Of course, the choice is yours.
Here's more on why you can stop a term insurance plan at retirement age.
Term Insurance Plans - Comparison of Insurance Companies
Performance of India's leading Life Insurance Companies : 2015-2016
Total Value of
|Aegon Life||Rs. 336 crores||Rs. 40 crores||Rs. 7.90 lakhs||95% Details||Rs. 1,785 crores|
|Aviva Life||Rs. 883 crores||Rs. 101 crores||Rs. 8.10 lakhs||82% Details||Rs. 8,752 crores|
|Bajaj Allianz Life||Rs. 4,166 crores||Rs. 352 crores||Rs. 2.10 lakhs||91% Details||Rs. 43,885 crores|
|Bharti Axa Life||Rs. 1,043 crores||Rs. 50 crores||Rs. 5.00 lakhs||80% Details||Rs. 3,077 crores|
|Birla Sunlife||Rs. 2,344 crores||Rs. 216 crores||Rs. 3.40 lakhs||89% Details||Rs. 30,743 crores|
|Canara HSBC Life||Rs. 734 crores||Rs. 30 crores||Rs. 5.70 lakhs||93% Details||Rs. 9,786 crores|
|DHFL Pramerica||Rs. 858 crores||Rs. 14 crores||Rs. 3.00 lakhs||84% Details||Rs. 2,021 crores|
|Edelweiss Tokio Life||Rs. 251 crores||Rs. 14 crores||Rs. 11.80 lakhs||85% Details||Rs. 1,398 crores|
|Exide Life||Rs. 1,835 crores||Rs. 52 crores||Rs. 1.80 lakhs||89% Details||Rs. 9,446 crores|
|Future Generali Life||Rs. 510 crores||Rs. 30 crores||Rs. 1.90 lakhs||90% Details||Rs. 2,662 crores|
|HDFC Life||Rs. 7,705 crores||Rs. 300 crores||Rs. 2.50 lakhs||95% Details||Rs. 74,249 crores|
|ICICI Prudential Life||Rs. 4,782 crores||Rs. 406 crores||Rs. 3.80 lakhs||96% Details||Rs. 1,01,790 crores|
|IDBI Federal Life||Rs. 950 crores||Rs. 43 crores||Rs. 4.70 lakhs||85% Details||Rs. 4,738 crores|
|IndiaFirst Life||Rs. 1,425 crores||Rs. 41 crores||Rs. 3.00 lakhs||72% Details||Rs. 8,897 crores|
|Kotak Life||Rs. 2,674 crores||Rs. 94 crores||Rs. 3.80 lakhs||89% Details||Rs. 16,777 crores|
|LIC||Rs. 2,64,975 crores||Rs. 9,690 crores||Rs. 1.30 lakhs||98% Details||Rs. 20,09,119 crores|
|Max Life||Rs. 6,970 crores||Rs. 261 crores||Rs. 2.90 lakhs||97% Details||Rs. 35,805 crores|
|PNB Metlife||Rs. 1,905 crores||Rs. 125 crores||Rs. 4.70 lakhs||85% Details||Rs. 13,475 crores|
|Reliance Life||Rs. 3,070 crores||Rs. 220 crores||Rs. 1.60 lakhs||94% Details||Rs. 15,936 crores|
|Sahara Life||Rs. 146 crores||Rs. 7 crores||Rs. 1.00 lakhs||90% Details||Rs. 1,142 crores|
|SBI Life||Rs. 8,930 crores||Rs. 390 crores||Rs. 2.60 lakhs||93% Details||Rs. 79,456 crores|
|Shriram Life||Rs. 964 crores||Rs. 42 crores||Rs. 2.80 lakhs||60% Details||Rs. 2,539 crores|
|Star Union Dai-ichi Life||Rs. 887 crores||Rs. 33 crores||Rs. 2.90 lakhs||81% Details||Rs. 5,596 crores|
|Tata AIA Life||Rs. 1,731 crores||Rs. 87 crores||Rs. 2.70 lakhs||97% Details||Rs. 18,988 crores|
All figures rounded to the nearest decimal.
* includes death claims for all products such as Savings Products, Money-back policies, Single Premium, Term Insurance etc.
** Ratio of no. of death claims settled to no. of death claims made
Term Insurance Plans - The Best and Only Life Insurance plan you will need
Even a broad comparison make Term Plans the best Life Insurance product
It is very likely that you have bought Life Insurance before, but not a Term Insurance plan. A term insurance plan is not always promoted by the seller, but the fact remains that it is the best and only life insurance product that you will perhaps ever need. Compared to an traditional life insurance plans such as endowment plans, money-back plans, etc., a term life insurance plan provides far more cover at a far lower premium underlining the best benefit that life insurance products should ideally offer - protection in case of death!
- Very high life insurance cover at very low cost. For a 25-year old non-smoker male, a term insurance plan for a cover of Rs. 1 crore for 25 years will cost only about Rs. 5,600 (or thereabouts, newer and more inexpensive plans keep getting launched all the time)
- Easy to buy - you can compare term insurance plans online at mintwise.com, select the plan that fits your needs and a brand that you are comfortable with and click to buy the policy. Simple.
- Level Premiums, i.e. premiums guaranteed to stay the same over the entire period of the policy. So you know that you can always afford it and keep your insurance cover in force.
- A choice of riders (add-ons) to help you customize your policy and make your cover comprehensive. eg. Accidental Death, Critical Illness, Disability and Dismemberment, Terminal Illness, etc.
- Because there are no returns from term insurance plans, they are easy to exit from. Just stop paying the premium and your cover stops automatically after cover period for the last premium paid is completed. Of course, ensure that you do it only when you genuinely don't need the insurance cover any more.
AND WHAT'S NOT
- The term of the policy is fixed, you can't change that mid-way. So be sure that you choose a period that is right. A minimum period till your Retirement age is recommended if you are buying term insurance for covering income. If you intend to cover a loan, ensure you take the cover up to the end of the loan tenor.
Term Insurance Plans - Frequently Asked Questions
Everything you want to know when you buy a term policy
Term Insurance plans are absolutely priceless. And that is not an overstatement. Here's why.
In a perfect situation, you, the breadwinner of the family, are earning for the family and everyone lives out of that income that you generate. You would also save some part of your income so that you can achieve future long term financial goals such as children's education, their marriage and a good retirement for you and your spouse. But this is still in a perfect situation.
But when something goes wrong, i.e if you were to suddenly die, all these plans will topple. Your family is left with no income and perhaps a little savings. But not enough to take care of their daily, monthly, annual and long-term goals. Have you ever wondered about a situation like that? Perhaps not - it is not a pleasant thought anyway and we hope that your family will never have to go through such trying circumstances.
Term Insurance plans help to be prepared for a situation like that. They cost very little and they give your family very high benefit in case you were to die. Every earning person who has dependants, needs a term insurance plan. Check if you are one and get one at the earliest. Procrastination could cost your family a lot.
There are various types of products available in the market today. Especially online term insurance products. Allow us to tell you how you should go about picking up the right plan and making sure that it work for you when needed.
Don't right away start thinking about the products you have heard about, or about the brands in the market. Don't think about what your friend or colleague at office had mentioned to you, her/his needs are most likely to be very different from yours.
What you need to start with is finding out what exactly are the reasons you need a term plan for. Is it to protect only your future income? Is it to cover a home loan? Is it both? Here's more on it.
Another thought you need to give to is whether your spouse (or nominee) is capable of handling large claim amounts safely and maturely. It is important. We've known some cases of 'close friends' and 'caring relatives' syphoning away the large claim amounts from gullible nominees. If that is indeed a possibility, your family may be better off getting the claim amount in parts, rather than as a meaty lump-sum. Do give that aspect a thought.
Go through the MintWise comparison to find the solutions to these scenarios. We believe we have answered them all and in case there is still something you are not able to decide upon, give us a call.
You are already half done if you get everything so far right. The remaining half is ensuring that you compare and choose the right term insurance plan. MintWise can help you on that front as well.
There can be one of 3 reasons you should think about splitting your online term insurance plan.
1. Based on Time, i.e. depending on your age.
2. Based on your Needs, i.e. whether you are buying term insurance to cover income or loans.
3. Based on Product Benefits offered by different companies.
There is a detailed resource available at this link. We strongly recommend you go through it
A lump-sum plan works best when you are buying online term insurance to cover a home loan. Here's why.
Home loans are generally of huge value. e.g. if Amit (aged 33) has taken a 20-year home loan of 50 lakhs five years back, of which 47 lakhs is still outstanding as loan at the time of buying an online term insurance plan, he should take a separate stand-alone single lump-sum payout benefit term plan with Sum Assured of 47 lakhs for a term of (20 - 5 =) 15 years. In case Amit were to die within the term, his family will get the money and pay the outstanding amount to take possession of their home. In case nothing happens, after 15 years, the loan ends and so does the online term insurance plan. Another thing - in case Amit pays off the outstanding amount early and closes the loan, he can just stop paying the premium of the term insurance plan and end the policy. Else he could continue it for additional income protection during his earning years.
Comparing online term insurance plans with MintWise is a piece of cake - thanks to our user-focussed research, our experience with hundreds of live examples (especially claims) and our online presentation of the insurance plans. With MintWise, all you need to do is choose the kind of online term insurance plan you want, choose the level of claim amount and the period you want the cover for. See the whole range of best term insurance plans and in multiple level of customizable detail.
All you now need to do is PICK. We'll help you with the rest.
Is your mobile phone the cheapest one available in the market?
Or your television set the most inexpensive one your money can buy today?
Will you travel in a boat to Mauritius across the Indian Ocean if you are offered a ticket for just Rs. 100?
Certainly not. Because what's cheapest need not really be the most optimal for you. What you should do is take a measured decision between your exact needs, the product benefits and the price at which it is offered - with priority in exactly the same order. You will arrive at the best decision on your term plan.
We are of course there to help you do this better, in case you need us to.
This is a common dilemma and also an important one to resolve.
You will get the answer when you think about what really is the purpose of buying an online term insurance plan. Ideally it is to protect your income or to settle a huge liability (like a home loan) in case you were to die, right?
Your income and your liabilities generally do not go beyond your retirement age, i.e. 58, 60, whatever. Certainly not beyond 65 years. So you do not need a term plan to cover you beyond age 65.
Also, at times, if an online term insurance plan is bought to cover you for a very high age such as 75 or 80 years, it may be too expensive and just not worth it. Check this article to know how.
The final call is yours. Choose the term period of your online term insurance plan, as you feel is right for you. You may even reach out to us to know our views on your case.
Ideally, 3 plans - the first one typically in your late 20s, the next in your mid-30s and another one in the mid 40s. The type and size depends on your life-stage and some other factors like loans pending, the rate of growth in your income, your family's lifestyle, etc. Check the table in the first section of this resource to get an answer to this. Depending on your current status, you might discover a gap in your current protection cover. Do ensure you act upon it in haste.
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