Looking for the best online term insurance plan in India? Are you planning to buy an insurance plan to save income tax? If income tax is your priority then check out the best income tax saving tips and for insurance need buy a pure term insurance plan. Many people spend huge time to decide which term insurance plan to buy. The main reason behind this is the number of online term plan in current market. It is really tough to choose the best online term insurance plans among that list. In this article I will share a complete comparison chart of all online term plans according to their premium rates. Premium is not the only criteria to choose the best term plan; you have to check other parameters as well. Before proceeding further you should read how to decide which is the best term plan.
How to choose the best online term insurance plan in India?
A pure term plan offers mainly the death benefit lump-sum amount only. Means there will be no maturity benefit or long term expectation attached to a term insurance plan. In such a scenario it is very tough to decide which plan if the best. But if you go with the best insurance companies then you can easily buy the best product. Although they might be less in features when you compare with another one launched from a new company. But the best insurance company will always give you the peace and after sale satisfaction. So the simple rule to decide the best online term insurance plan in India is look for the best insurance company and buy that company’s online term plan.
In this article we are stressing more on best online term plans, not offline term plans. Offline term plans lost their popularity after launch of online term plans.
Top 10 term insurance plans comparison in India
I have prepared a list of online term insurance plans with premium rates for a 30 years aged people and 1 crore life cover. Policy tenure is 30 years and salary range is taken as 5-10 lakh. In such a scenario if you want to check and compare all the online term plans premium then it will be like below.
|No.||Term Plan Name||Term (Yrs)||Riders Available||Premium/Yr|
|1||LIC E Term Online term plan||5 to 30||NA||19,700|
|2||Kotak ePreferred Term Plan||5 to 30||Yes||15,590|
|3||SBILife e Shield Online Term Plan||5 to 30||Yes||13,135|
|4||ICICI Pru iProtect Term Plan||5 to 30||Yes||11,500|
|5||HDFC Click 2 Protect Plus (Income)||10 to 40||NA||8,517|
|6||MaxLife Online Term Basic cover||10 to 35||Yes||8,315|
|7||Aviva iLife||10 to 35||NA||8,279|
|8||Aegon Religare iTerm||5 to 40||Yes||8,202|
|9||Bharti AXA eProtect||10 to 30||NA||8,202|
|10||Reliance Online Term Plan||10 to 35||NA||7,319|
Note: These premiums are calculated without rider, even if rider is mentioned.
There are many other insurance players, but I thought to make the list limited under top 10 insurance companies only. Anyway you have to buy only 1 term plan only. From the above chart we can say that Reliance Online Term Plan offer the lowest premium compared to others. So can we select this as best online term insurance plan? No, before that we have to analyse every plan based on below factors.
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Criteria to select best online term insurance plan in India
Claim Settlement Ration: Before reaching that decision you should check out the current claim settlement ratio data as well. As per that data LIC is the best insurance company with far better record than any other company. Other than LIC HDFC, ICICI Pru, SBILife, MaxLife are the companies who are doing good business with good products. If you compare LIC with these companies you can easily say that they are offering much more features than LIC online term plan.
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Additional Riders: One more thing you can find in the list is additional riders. One can give importance to riders as well as they will provide you extra cover. But frankly they are not that necessary while choosing a online term plan. The basic aim should be the maximum sum assured value. For riders you can easily buy a separate policy, no need to combine them with term plan.
Medical Test: Another factor could be medical test, which is not mentioned in this chart. Generally for a online term plan of Rs 1 crore medical test should be mandatory. It is better to diagnose your medical by the insurance company and then issue the policy. This will provide a proof of your fitness to the company.
Solvency ratio: Now the meaning of the term is how much an insurance company is financially prepared to handle access claim in case of an exceptional situation. This simply related to the reputation of the company. You can easily say that company like LIC, ICICI, HDFC has huge business expansion and due to that they have the highest solvency ratio. So again it is proved that better to stay with a product of a big and reputed brand.
Customer Service: In the age of online term plan this could be a very necessary factor. As there will be no agents involvement you have to highly depend on customer support team of your insurance company. I didn’t find LIC customer support as good as HDFC or ICICI or MaxLife. So you can consider this as a very useful criteria when you choose the best online term insurance plan.
Year of operation in India: I often heard from people that as private companies are new i our country they can vanish anytime. Means trust factor is zero. But do you know that LIC is also a private company? Here the main topic is we should check out the no of year of operation for a particular company. May be ICICI and HDFC has spend quite a long time in India but their insurance segment is new. So check out this factor and decide the best brand.
Few Questions and Answers regarding Online Term plan
Can I buy more than 1 crore life cover?
It will depend on your salary. Generally insurance company will provide 13-15 times of your annual salary. So now you can calculate how much term insurance you can buy.
Is LIC E-Term plan is the best online term insurance plan in India?
LIC has huge market and heavy trust base followers in our country. If you check the claim settlement data issued by IRDA you can easily find that the no of claim register every year is 5-6 times higher than other companies. This signifies how people trust on LIC and no of policy sold by LIC every year is also a huge. Claim settlement ratio is also almost 99%. So without any doubt LIC is the best brand in the insurance segment. But if you check the chart above for same life cover Reliance online term will cost you only 7,319 but in case of LIC e term plan it is 19,700. Are you ready to bear 3 times yearly premium? Or you would happily pay the higher premium with LIC and stay peaceful? If you are able to find the answer of this question then it will be easy to find the best online term insurance plan in India.
Why LIC is charging highest premium rate in market?
As LIC has a huge trust base follower, people simply buy their policy without doing proper research. People believe that it is better to stick with a Govt company rather than a private company. In rural area you will hardly find a name besides LIC. So they can charge a high price without bothering about any competition.
Besides LIC, what could be the other online term plans to look?
I think HDFC Click 2 Protect series, ICICI Online term plan, Kotak Life preferred term plan, MaxLife Term option i and Reliance Online term plan could be considered as the best alternative to LIC e-term plan. These are very reputed companies if you leave LIC.
How important to choose additional riders in a term plan?
Additional riders are off-course very useful. E.g. if you take an accident rider, then your family may get double sum assured if you die in an accident. But here the point is one should not compromise a best term plan for rider benefits. Go with your trusted company even if they don’t provide rider facility. And one more thing you have to pay an extra premium to enjoy rider benefits.
Can I buy 2 term plans from 2 different companies to enjoy more features?
Yes. You can buy split your insurance need in 2 part and buy 2 different online term plan. Buying 2 policies has more advantage while claiming. If one insurer reject your claim other can approve. Just to make your chance better.
Are offline Term plans obsolete? Do they still exists?
No. But as the online term plan premiums are very less people are forgetting about offline term plans. You can buy offline term plan with the help of an agent. But ready to pay a very high premium compare to a online plan.
I am single person, no defendant. But I have some liability (Home Loan), which term plan to buy?
Then why you need a term insurance plan? I think better you buy a home loan insurance to protect your home EMI in case of death. And if you have a plan to get married soon then off-course buying an online term plan could be a good start of your financial planning.
Till which age I can cover my life? I heard about life cover till 100 year policy. What is that?
If you see the above chart only LIC e term plan is providing maximum age of 75 years. Although a term plan is require till your liability towards your family exist. Beyond that age its not that useful. Yes, recently IDBI federal has launched a 100 year life term ULIP plan. But that can’t be compared here. Better to buy health insurance plan and continue till you die.
Everything is not covered in Medical tests. Should I convey my actual medical condition?
Never hide a single truth about your medical history. In case during policy claim if they come to something which is not declared, then your claim will get rejected. I hope you don’t want your family to face such situation. So it’s better to declare or intimate insurance company from up-front before buying the policy.
Hope now you will be able to decide the best online term plan in India and buy your first online term plan. If still any doubt share your question here by writing a comment.