If you are looking to buy cheapest term insurance plan in India then your search gets over here.
Check out the list of top 12 companies that has to offer their best product.
That to find the cheapest term insurance plan for you, I have taken a hypothetical example of someone who is:
- 30 years old,
- Non smoker and
This e.g. will give you an idea of what you should expect for a cover of Rs.50 lacs with an annual income in the range of Rs.3 lac to Rs.5 lac.
Companies are ordered on the basis of their premium from low to high.
Companies with Cheapest term insurance plan in India…
|Cheapest Term Insurance Plan in India|
|Bharti AXA||eProtect||Rs. 3790/-||80.9%||One time: Rs. 50 lac|
|Reliance||Online term||Rs. 5335/-||83.8%||One time: Rs. 50 lac|
|Edelweiss Tokio||Mylife||Rs. 5705/-||57.1%||One time: Rs. 50 lac|
|Aegon Religare||Iterm||Rs. 5757/-||89.8%||One time: Rs. 50 lac|
|Max life||Online Term plan||Rs. 6043/-||95.5%||One time: Rs. 50 lac|
|India first||Anytime plan||Rs. 6213/-||72.2%||One time: Rs. 50 lac|
|HDFC life||ClicktoProtect Plus (Income option)||Rs. 6264/-||90.5%||One time: Rs.5 lac.
Monthly: Rs.41.66 K for 15 years.
|Pnb Metlife||Mera Term plan||Rs. 6555/-||92.9%||One time: Rs. 50 lac|
|Birla Sun life||Protect@Ease||Rs. 7639/-||95.5%||One time: Rs. 50 lac|
|ICICI Pru||iProtect||Rs. 9291/-||93.8%||One time: Rs. 50 lac|
|SBI life||eShield||Rs. 9759/-||89.4%||One time: Rs. 50 lac|
|Bajaj Allianz||iSecure||Rs. 10,005/-||91.9%||One time: Rs. 50 lac|
Before you stop reading any further and rush to buy your policy, I want to ask a simple question….
Do you really want to buy a cheapest term insurance plan in India…?
Why I am asking this is because,
Though people want to consider affordable plans but this should not be their decision driving factor.
As there are many factors that go into making a best term plan. Some of them include:
- Best claim settlement ratio,
- Longest term of the policy,
- Entry age required,
- Maturity benefits (if you want.),
- Provision to include critical illness, etc.
Thus buying the policy only on the basis of premium will not be a good option at all.
How will you be affected if you go only by premium…?
If you buy a policy just by looking at its affordability then you will hurt yourself badly.
How, you may ask…?
This is because you will not know how the plan will serve you or whether your claim will be entertained or not.
Since, it is not necessary that the company offering cheapest term insurance plan will also have the best claim settlement ratio. Thus you will need to make sure that the plan you are buying suits your needs rather than your pocket.
Is there any way you can still buy a cheapest term insurance plan in India…?
Yes there is.
To buy an affordable plan you will need to go through following 3 steps.
- Make the list of your needs. Find what you want from your insurance policy.
- Research on what type of insurance policy will suit you best. As there are many types of plans thus you need to make sure that you are buying the best one. If you are not sure what policy suits you best then read this post to find out their 6 different types.
- Once you know which term policy suits you best now it will be time to compare them. You can compare term plan between different companies on the basis of their claim settlement ratio.
If you follow these 3 steps then you will not only have an affordable option in your hand but will also have a plan that will suit you the best.
How else you can make your term plan more affordable…?
There are couples of other factors that can help you make your term insurance more affordable. These are:
1. Buy an Online policy:
Do you know that your insurance agent costs you a lot…!
These people make their living on the commission they get from an insurance company.
Thus when they sell a policy they generally make 30 to 50% of your premium. This commission is not borne by the company but is levied on you as a part of the premium.
Now, how about buying a policy online…!
Buying a policy on company’s website will cut the role of your insurance agent. This will mean that you won’t pay his commission which further means savings of almost 50% of your premium.
Check out the dirty little secret that insurance companies are hiding… I am sure after this post you would not want to hire an insurance agent.
2. Buy young:
Age and illness (critical problems that you suffer from) are directly connected with your policies premium. The more aged you are, the higher will be your premium amount. This is because then you will be more prone to catch problems.
Thus it will always be a good idea to buy young, as this way your policy will be favoring your pocket rather than being a burden.
To know more about how your age affects your policies premium, check out Investopedia.com, as they have a detailed post on the said topic.
3. Be a Non-smoker:
Insurance companies favor non-smokers a lot. It is because they think they are there best bet as they will be less prone to catch any problem. Thus if you are Non-smoker then pat your back as you will save a lot on your premium.
Now the question is…
Why Smokers pay higher premium…?
As per Centers for Disease Control and Prevention (CDC),
“People who smoke are 3 times more likely to die early than as compared to someone who doesn’t smoke.”
Smoking is also said to be the root cause behind premature deaths, which means death happens to them at an early age.
Interesting stats from CDC about smokers:
- There life span is atleast 10 years shorter than a non smoker.
- A middle aged smoker is 3 times more prone to die than a fellow non-smoker.
- Smoking has been directly linked with life threatening diseases like: Cancer, heart disease and other respiratory problems.
Since smokers will always remain an issue to an insurance company thus they are penalized with higher premium.
4. Go for shorter terms:
Generally higher the term of the policy, higher will be your premium. Thus, if you want to stay affordable and care about every single penny then you would want to go for shorter terms.
Though, this won’t be the most ideal option that I would suggest. But if you still think in terms of money then you might want to go for it.
This covers the little tips and tricks that can help you have the cheapest term insurance plan in India.
Again just to remind you,
Never buy a policy by its premium. Always study the policy first and then look for cheaper options and you will be protected ALWAYS…