Today, companies have altered the word “term insurance” in a way that now it is suiting their own needs rather than the needs of an individual.
Thus to find the plan that suits you rather than company, it becomes all more important to make a term insurance comparison.
Thus here in this post you will learn
- How you can do term insurance comparison…
- The best companies you should go for…
- How to choose an insurance policy for yourself….?
But before going forward with term insurance comparison it is really important to understand the term itself.
What is Term insurance…?
It’s an insurance policy that covers your life for a specified period of time. It is also considered as one of the cheapest forms of insurance that provides financial support to the insured’s family in case of his demise within the period of the policy.
Under the term policy the family of the insured is given the option of how they want to receive the claim amount, whether they want to have the entire amount or have a mix of both (lump-sum and monthly installments) which is decided before you buy the policy.
Thus either way the family remains financially sound with the much needed support of an insurance company.
How term insurance helps…?
- The family of the insured receives immediate much needed cash in the event of sudden demise of the insured.
- With the sum received out of Term insurance the family will be able to see off all the liabilities if taken any by the insured during his life term.
- The policy provides full support even if the insured gets diagnosed with any critical disease (provided it should be under insurers list of diseases). Thus you always get steady flow of income even if the business gets affected by the disease.
- If death was the result of an accident then the insured’s family get additional sum assured.
Thus all in all rest assured your family will stay financial safe with the policy like “Term insurance”.
Different types of Term insurance policies….
1. Decreasing Term Insurance Plan:
This policy is specifically meant for those who want to cover their liabilities with the term insurance policy.
If the policy is aligned with the debt then it becomes really easy to pay it off and decreasing term insurance does just that.
It aligns your debt with the sum assured thus over time when you pay a certain portion of your debt then even the sum assured decrease to be in line with your liability.
And if the insured dies in between before completely paying off his liability then the insurance policy covers the rest. Thus it saves the family from any financial setback that arises out of immediate cash to pay off the loan.
2. Increasing Term Insurance Plan:
It is the exact opposite of what Decreasing insurance policy offers and is linked with the cost of living of a person. Since the cost of living is only rising thus the policy like such helps maintain that level even if the insured dies.
Under such a policy the amount of the sum assured increases at a constant rate usually 5% p.a. while the premium remains the same.
Thus with a lower premium you get the benefit of higher sum assured.
3. Level Term Insurance Plan:
This type of policy though usually provided by every company pays the entire sum assured in lump-sum if the insured dies within the period of the policy.
In such a policy not only the sum assured remains the same throughout the life of the policy but the premium as well. Thus everything remains at the same level and that’s how the name “Level term insurance”.
4. Joint Term Insurance Plan:
This policy is jointly taken by people who generally work or live together, thus is ideal for partners in business or married couples.
The benefit of such a plan can be seen in the sum assured as if both partners die then the beneficiary gets double the assured amount.
5. Group Term Insurance Plan:
The name says it all as the policy covers a specified no. of people whose life’s are then covered by the insurer. Such a policy is usually taken by companies or big organization for their employees where the employer may or may not contribute for the premium.
6. Return of Premium Insurance Plan:
This is more like an investment plan wherein the premiums paid by the insurer gets returned if he survives and outlives the period of the policy.
This is something very unique as you don’t get to see such a policy every now and then wherein the insurer provides maturity benefits.
Once you have decided upon what kind of term insurance suites you best, your next step will be to look at what your policy covers so that you can decide the company that offers you the best of the plan. Thus it’s time to look at the features provided.
Since now you know what to consider before buying a health insurance now let’s check out the companies to make a term insurance comparison and find the best among the lot.
Term Insurance Comparison in order of Claim settlement ratio.
|Company||ICICI Prudential||HDFC life||Max life Insurance||Bajaj Allianz||SBI life insurance||Aegon Religare life insurance||Bharti AXA life||Birla Sun Life Insurance||Reliance Life insurance||India First life Insurance
|Claim Settlement Rate||94.10%||94.01%||93.86%||91.29%||91.06%||90.37%||88.13%||87.76%||81.97%||73.13%
|Policy name||iProtect||Super Income Plan||Online Term Plan||iSecure ||eShield||iTerm||eProtect||Protect@Ease||Online Term||Anytime plan
|Sum Assured ||Rs. 10 lacs to Rs. 10 cr.||Rs. 25 lac to No limit||Rs. 25 lacs to 10 cr.||Rs. 20 lacs to No limit||Rs. 20 lacs to No limit||10 lacs to "No limit"||Rs. 25 lacs to No limit||Rs. 50 lacs to Rs. 500 cr||Rs. 25 lac to No-Limit||Rs.10 lacs to Rs.50 cr.
|Age criteria ||20 years to 65 years||18 years to 65 years||18 to 60 years||18 to 60 years||18 to 65 years||18 to 65 years||18 years of age to 65 years||18 to 55 years||18 to 55 years||18 to 60 years
|Maximum Maturity age||75 years||75 years||70 years||70 years||70 years||75 years||75 years||80 years||75 years||70 years
|How you pay premium ||Yearly||They are very flexible||Annual||Annually, Half yearly, Quarterly, Monthly.||Yearly||Single and Yearly||Yearly||Monthly and Annually||Yearly||Monthly, Half-Yearly, Annual & Single
|Policy term||10, 15, 20, 25 and 30 years||10 to 40 years.||10 to 35 years||10, 15, 20, 25 and 30 years||5 years to 30 years||5 to 57 years||10 to 30 years or 60 to 75 years (in multiples of 5)||5 to 30 years|| 10 to 35 years in multiples of 5||5 to 40 years
Since now you know which company provides the best facility, thus now it will be a good idea to check out what features to look at before buying the best term insurance plan in India.
To check out what makes the most ideal plan, simply read out this post.
How to Choose an insurance plan that will fulfill your needs…?
Since there are so many plans out there thus you would need to ask yourself what you want to gain from Term insurance. Ask question like…
- How much premium can I afford to pay…?
- Do I want to secure myself or a loan I have taken…?
- Do I want a pure life cover or Maturity benefits as well…?
- Would I want a rider to enhance the plan…?
- How much life cover do I need to support the family…? and so on and so forth…
To decide on how much cover do you need….?
Then it is advised that you take a cover that is atleast 20 times of your annual income as this will help your family maintain their standard of living and bear the burden of rising cost of living as well.
Once you are able to answer all these questions and many more that might arise then it will become really easy for you to find that one company that will cater to your needs.
Thus think no more and,
“Buy a cover for yourself that will take care of your family.”