Best term insurance plan | Best insurance calculator
A term plan insurance is the simplest form of life insurance. It is a type of life insurance that covers you for a certain period in return for a specific amount of premium you pay. Term Plan Insurance
A term plan insurance is the simplest form of life insurance. It is a type of life insurance that covers you for a certain period in return for a specific amount of premium you pay. A term plan guarantees the payment of the stated death benefit to the beneficiary if the policyholder dies during the term specified in the policy. What to Know Before Buying Term Plan Insurance|term insurance hidden facts | J & k
A term plan insurance is typically less expensive than a permanent whole-life policy. The best term plan can provide financial security to the family of the policyholder at the most affordable rates. One of the best benefits of a term plan is that the entire premium goes into securing the policyholder’s insurance cover.term life insurance rates
What is a Term Plan Insurance? A term plan insurance is a life insurance product, which offers financial coverage to the policyholder for a specific time. In case of an unfortunate event during the policy term, the death benefit is paid by the insurance company to the nominee. An individual should know the importance of key features of the best term plan before purchasing it.whole life insurance
It is also advisable to understand the benefits of health insurance. The main objective of taking term insurance is to provide life cover to the policyholder and financial security to their family.term life insurance rates by age
Term insurance provides a genuine life cover. Hence, there are no savings or profits components. It is a basic plan which makes life insurance more affordable compared to the other options. It is also possible for the policyholder to opt for a larger cover at a nominal premium when compared to a similar policy.term life insurance calculator
How Does a Term Plan Insurance Work? A term plan insurance is an agreement between the person who owns the policy and an insurance company. The policyholder must agree to pay a premium for a specific time. In return, the insurance company guarantees to pay a specific death benefit in a lumpsum to the beneficiary upon the death of the policyholder.
The death benefit amount is usually tax-free. The lumpsum pay-out offered by the term plan to the family of the policyholder can be used to clear various liabilities like loan repayment, medical emergencies, etc. It can also be used to meet their regular expenses in case of the sudden death of the policyholder.
Benefits of a Term Plan Insurance There are several benefits of a term plan insurance. Here are the most important ones. • One of the most important benefits of a term plan is that it comes with affordable premium costs. The entire premium paid towards a term plan insurance covers the risk of unexpected losses. It also offers a higher coverage amount for the long term at exceptionally low premiums.
• A term plan insurance also provides the benefit of flexible premium payment options. The policyholders can choose their preferred frequency and mode of premium payment from the diverse options provided by the insurance company.
• As per Section 80C of the Income Tax Act, the premiums paid towards the term plan are deductible from taxable income up to a maximum of Rs. 1.5 lakh. Moreover, the death benefit received by the nominee is tax-free as per Section 10(10D). • The policyholder can purchase a term insurance rider to get an additional cover over the base plan, as per their needs.
Things to Consider Before Choosing a Term Plan Insurance Before buying the best term plan, the policy seekers are usually perplexed about the best plan available in the market. So, here are some factors which can help them select the best term plan provided by the different insurance companies. Requirement of Coverage Amount An individual can calculate the amount of cover required from a term plan insurance by subtracting their assets from their long-term financial obligations.
Claim Settlement Ratio – CSR The CSR is the ratio between the life insurance claims paid to the claims received by the insurance company in a financial year. A higher claim settlement ratio of around 90% indicates that the insurer has a quick and robust claim settlement process.
Amount of Premium An individual should compare the premium rates of all available term plans and choose a plan that offers a high coverage at affordable premium rates. Solvency Ratio The solvency ratio of an insurer helps the policyholder determine whether the chosen insurer will be financially capable of settling their claim if required.term life insurance companies
Solvency Ratio The solvency ratio of an insurer helps the policyholder determine whether the chosen insurer will be financially capable of settling their claim if required. Read the Terms and Conditions The policy seekers should make sure to read the terms and conditions written in fine print on their term policy.
It provides vital information on exceptional cases where the death benefit cover is provided. Conclusion Investing in a term plan insurance is a smart way to secure the financial well-being of your loved ones in case of unfortunate events that may deprive them of your protective presence. Moreover, you can avail of it at affordable premium rates.
Things to Consider When Buying a Term Insurance Plan
Term Insurance Calculation
First things first, you need to know what kind of life cover you need. Your sum insured amount will determine what kind of premium you should pay every year. Terms plans were created to provide your family with financial stability when they need it the most. So, as a good rule of thumb, you should opt for a life cover amount that is at least 10 times your current annual income. If you’re quite young and have a small family depending on you, you should opt for a sum that’s 15 times your income. This will help your family deal with inflation and rising costs. But, that isn’t where the calculation of your term insurance coverage ends. You also need to make sure the payout will help your family get out of debt. If you have any kind of loans or debts, you should try and opt for a life cover amount that will help cover it.
Plan Tenure
Next, think about how long you’d like to have life cover for. When you buy term insurance, the policy tenure could impact your overall premium payments. Make sure you pick a tenure that will see you through all your financial obligations. So, a 20-year-old might opt for a 40-year tenure. On the other hand, a 30-year-old can opt for a 30-year tenure. If you opt for a term plan without any maturity or return of premium benefits, you end up losing some money if you outlive the policy. Keep that in mind while determining your policy tenure.
The Company’s Claim Settlement Ratio
Most people overlook this tiny but crucial detail. The claim settlement ratio lets you know how likely you are to get the payout once you raise a valid claim. Every insurance company displays their claim settlement ratio in the form of a percentage. The percentage represents the number of claims they settled against the total number of claim requests received. Always opt for an insurance provider with a higher claim settlement ratio.
Customising the Policy
Term plans, like most insurance policies available today, can be customised to suit your unique needs. Individuals who travel often or work in dangerous environments can opt for an accidental death rider. With this, they bump up the payout amount their nominee will receive if an accident proves fatal. Other individuals may opt for critical illness or premium waiver riders. The idea is to find add-ons that enhance your overall cover. Make sure you pick wisely as more riders will lead to higher premiums. If you don’t think a particular add-on will add value to your nominee’s life, you should leave it out.
Online or Offline
The final thing you must think about is whether you want to buy term insurance online or offline. Both methods have their benefits. If you choose to purchase the policy online, you deal directly with the insurance provider. You also have minimal paperwork and could end up getting a better deal. Online policies generally have lower premiums than their offline counterparts. On the other hand, you can opt to buy term insurance offline. An agent or insurance representative will help you through the process. They might also be able to offer additional benefits that are not available on online plans. Ideally, you should check the benefits of both options before making your decision.
Purchasing term plans, whether online or offline, can be easy. Once you understand your term insurance calculation, you can find policies that offer what you need.
here are the 5 things to consider when buying a term life insurance plan.
Number 1: Calculate how much term insurance coverage you need:
Your term life insurance coverage should broadly assess how much money your family would need if you were to meet with an untimely death. The best way to do this is to grab a piece of paper and start calculating the following.
What to look for in a term life insurance policy
Insurance Cover
The insurance cover should be able to replace your income and settle outstanding loans. The thumb rule is to be covered for at least 8-10 times your annual income plus any outstanding debts. A Rs 1 crore cover may seem adequate right now but inflation will keep eroding its value. For this, some companies have designed plans that increase the cover every few years. The cover increases by 5-10% every few years, but there is a cap on the maximum increase.
- One, estimate your dependent family’s monthly expenses and multiply it with 150. The multiple of 150 factors in future inflation.
- Two, add your liabilities on the account of home loan, personal loan, credit card bills.
- Three, deduct all the liquid assets you already have in the form of FDs, stocks or mutual funds.
- Four, add your expenses planned on the account of important life goals that are likely to happen in the next 15 years. Like your children’s higher studies or their marriage.
- Five, add the retirement corpus that you would want to leave for your spouse on his or her retirement.
Total Insurance Cover That You Would NeedMonthly Expenses× 150 timesExpenses/ InvestmentsExamplesLiabilities (+)Home Loan, Personal loan, Credit CardLiquid Assets (-)Fixed Deposits, Stocks and MutualFuture Expenses (+)Children’s education, Children’s MarriageRetirement Corpus for Spouse (+)Retirement CorpusConsidering all these factors will help you decide how much term insurance cover you would need.
Number 2: Determine the tenure of your plan:
Once you know how much coverage you need, it is important to know till what age you would need it for. The tenure should not be too little as the policy might lapse before your financial obligations are completed. At the same time, the tenure should not be too long because the premium charged would be too high on the account of the higher tenure.
The right way to estimate the tenure of your term life insurance plan is to determine by what year your liquid net worth, i.e. the total investment you have in mutual funds, provident fund, stock, etc after subtracting your liabilities, will be more than your term life insurance cover that we have calculated in the earlier section.
The age at which these two numbers coincide should be the age till which you need coverage. Post that, your assets will be enough to take care of your family in your absence.
Number 3: Target the highest Peace-of-Mind per rupee premium:
Here, we use the term Peace-of-Mind rather than coverage per rupee of premium because consumers often value some key intangibles while making a decision.
For choosing a term plan, these factors could be the stability of the insurance provider or its reputation in the eyes of the policyholder. Term life insurance is a long-term contract, often running for 30 to 50 years. Hence, it is important for you to be happy with your decision about the insurance plan you have picked, which would be a combination of the premium you pay and your perception about your insurance provider.
Pro-tip: For most insurance providers who sell their term life insurance policies on online platforms like ETMONEY are cheaper than the policies they sell offline at branches or through agents. So it is always beneficial to buy term insurance plans online as they give you a premium advantage.
Number 4: Choose your add-ons wisely:
Term life insurance plans offer riders at a reasonable cost which should be certainly considered by you even if they might not fit your requirement.
There are four major riders that are available:
- Additional cover for death due to accident:In case you die due to an accident during the policy tenure, this amount would be paid to you in addition to the basic sum assured.
- Cover for critical illness:A lump sum amount is paid to the policyholder on being diagnosed with one of the diseases which has been mentioned as a critical illness in the policy by the insurer.
- Waiver of premium on disability:If the policyholder becomes permanently disabled during the policy tenure, the future premiums for the policy would be waived off.
- Waiver of premium on critical illness:If the policyholder is diagnosed with one of the critical illnesses mentioned in the policy during the policy tenure, the future premiums for the policy would be waived off.
Of the four riders, two riders, i.e. waiver of premium on disability and waiver of premium on critical illness, come at a low premium. The rider for critical illness cover is the most expensive. Hence, you have to run sum research to find out if the additional benefits match up with the premium charged. And read the fine print of all the add-ons as they tend to be different for different insurance companies.
Number 5: Broadly look at the claim settlement ratio:
Claim settlement ratio usually attracts a lot of consumer attention. It indicates the efficiency at which the policies are settled by the insurance company. So when you see the 95 percent in the claim-settlement ratio column, it means 95 out of the 100 claims reported to the insurance company were settled.
However a word of caution here. The claim settlement ratio is merely an indication. If the claim settlement ratio of a company is more than 95 percent, then the company has been very efficient about settling claims. You really don’t need to go much deeper into it to see who has 99, or who has a 98.5 percent ratio. You should consider the claim settlement ratio as a filter rather than a key decision-making criteria.
Bottomline:
Term life insurance is a long term contract between you and your insurer, and it will benefit your family when you are not there. It is in your best interest to choose the right plan for your family by considering all the five factors discussed in the article.
What do term plans offer
Features and premiums of Rs 1 crore cover bought at 30 for 30 years.
1. Earlier you buy a term insurance plan, better it is
There is no minimum or maximum age for term insurance. Earlier you purchase the policy better it is.
Do not be very late because as time passes, your premium amount will also increase depending on your age and also if you develop any illness or disease, it will get tougher to get the policy later. So once you are clear that you require a certain amount of life cover, go ahead and complete the action within a few months.
2. Buy the term insurance policy only till your retirement age
Till what age should you buy a term plan? Should a 30 yrs old guy buy a term plan up to 80 yrs? The answer is NO.
You should not buy it for the longest tenure possible because you only need life insurance policy till your retirement and not beyond that. This is because not many family members will be financially dependent on you beyond your retirement age.
When we are young, we have more financial responsibilities, and hence it makes sense to take a big cover. But as our age increases, our assets will grow and at the same time, we will be moving towards the retirement age, at which point we no longer remain provider for our families.
3. Don’t get mislead by “per day premium” marketing gimmick
A lot of insurance companies have started to advertise their term insurance plans by sharing the cost per day basis, like for example – “Buy 1 crore term plan just for Rs 25/day”. However, note that these numbers might be applicable only for a certain age group and tenure of the policy.
Like it might happen that the advertised premium per day is only for the clients around 25 yrs and for a policy of 40 yrs.
Your case will be different and the premiums might differ for you, so don’t get trapped by the lure of cheaper premiums.
4. Don’t buy single premium policies
At times, you have to choose between single premiums vs. regular premium while purchasing a life insurance policy. A lot of people think that just because they can afford to pay a onetime premium, it makes sense, but it’s not true.
Other than some cases, it does not make much sense to pay a one-time premium (single premium) while buying a term plan. The best option which will work for most people is the yearly premium. So if your agent is trying to explain to you how a one-time payment will help you save the cost, run away and don’t fall for it.
5. Take an increase in premiums in a positive manner
This is a big one which is critical to understand.
Six common mistakes to avoid
when buying a term plan
- 1. Insufficient term insurance cover: The basic principle behind buying any type of insurance is to be able to cover the costs of your dependents’ needs. The same is true for a term plan as well. Unfortunately, many people miscalculate their requirements and end up settling for a low cover.It is recommended that when you buy a term life insurance policy, you should pick a cover that is at least 8 to 10 times of your annual income. You can also pick a cover that exceeds this amount if you feel that your family may require more funds, but anything below this limit would be extremely insufficient in the long run. If you are unsure about how to pick an adequate cover, you can use the human life value calculator to get a more accurate value.
- 2. Shorter policy term: This is one of the most common mistakes that people make when opting for a term plan. Insurance with shorter terms is inexpensive and may lure you into making a wrong decision. For example, if you take a term plan for 20 years at the age of 25, it will cover you till the age of 45. Now when you buy another insurance policy at 45, you will have to endure an increased cost of premiums. When you add this to your other responsibilities and expenses at that age, it can drill a hole in your pocket.Instead of short terms, you should try to opt for adequate terms. One should avoid getting lured by lesser premiums that only provide cover for 10 or 20 years. Instead, you should pick a policy that covers you at least till you hit retirement, if not more.
- 3. Delaying the purchase of life insurance: The biggest misconception that people carry in their heads is to think that insurance is only necessary after a certain age. Most people tend to delay buying life insurance until they are married, have kids, or have a family to look after. However, it is easier and a lot more practical to buy insurance at an early stage in life. Always remember that the earlier you purchase your term plan, the lower will be your premium amount. You are also less likely to be afflicted by common lifestyle diseases in your youth than you would be in your 30s or 40s, which would decrease your chances of getting a life insurance policy.Experts suggest that you should aim to buy a term plan in your 20s. It is also advisable to pick a term insurance plan that lets you increase your cover and change the nominee during key milestones in your life. For example, after marriage or when you have children.
- 4. Not sharing correct medical information: Not disclosing a health condition may result in a lower premium at first, but if your death is traced back to a health condition that you suffered from at the time of buying the policy, the insurance company has the right to refuse the claim. This can be a very undesirable situation for your grieving family and can affect them severely in a crisis.Saving a couple of rupees on the premium is a short-term saving with absolutely no long-term benefits. When you buy a term plan, make sure to disclose all necessary information to your insurance provider. Always think of the bigger picture and keep your family’s best interests in mind at all times.
- 5. Not buying a policy online: Many people still believe in the older route of physically meeting with an insurance provider to discuss the features of a policy. But taking out time from busy schedules can be a challenge and can also often result in procrastinating.It is safe to say that we live in a virtual world these days. Right from groceries to clothes, everything can be bought online and insurance is no different. Buying insurance online is not just easy but also extremely safe. It is also a more affordable option as customers can enjoy many discount options from the comfort of their homes. For example, ICICI Pru iProtect Smart provides a 5% discount when bought online*.
- 6. Treating insurance as an investment: While it is true that insurance does have tax benefits, limiting it to a mere investment is a gross misinterpretation that many people make. A lot of people also think of basic term insurance plans as a waste of money as you don’t get any benefit if you survive the policy term. But you must not forget that insurance is a protection tool above anything else. Some plans may have maturity benefits, but regardless of that, the main purpose of buying insurance is to ensure the financial security of your family in your absence.
When you buy a term plan (or even health insurance), sometimes your premiums can increase after your medicals are done and you may be asked to pay an extra premium. This increase in premium is due to health issues and it’s very valid to ask you to pay this extra premium.
Most of the buyers are very critical of the premium increase and choose to not move ahead or postpone their decision of buying the plan.
However you should understand that the premiums increase is a natural thing to happen if you are of the high-risk category (like a smoker, alcoholic or if some past illness). It’s actually a good thing that the company is beforehand checking the facts and still offering you the plan, though at a little high premium which is very fair from their point of view.
At that point, rather than postponing the decision, the best thing is to go ahead and buy the policy.
6. Don’t get over-excited by term insurance riders
“Riders” are great add on with a term insurance plan, but only if you really require them or if they are specific to your case. Don’t add them just because it’s available and gives you a sense of more security. I mean if you do a lot of travel and are most of the time in your case, the risk of dying in an accident is higher for you, so in that case, you can add an accidental rider.
- Accidental Death Rider
- Permanent & Partial Disability
- Critical Illness
- Waiver of Premium
- Income Benefit Rider
In the same way, if you feel that you want to cover the risk of some critical illness in the future and don’t want to buy a separate policy, then you can add critical cover. But don’t add any term insurance riders for the sake of it.
7. Buy the basic version of the term insurance plan
A term plan comes into various flavors nowadays. The most basic one is the one which pays you a lump sum on death. However, there are other variations now which also gives you income for 10/20 yrs along with the main cover, or pays only the income for the next 10/20 yrs and a small lump sum at the time of claim.
I think one should just choose the base policy in most of the cases. Most of the other options are designed for very specific situations and they are not “better” or “bad” compared to the base policy. To check this, you can go to any term insurance premium calculator and find out the premium with rider and without a rider.
8. Tell them if you are smoker/alcoholic
One of the worst things you can do while purchasing any life insurance plan is to hide the fact that you are a smoker or consume alcohol. Please don’t hide it. There is nothing like a best term insurance plan for smokers in India at the moment.
Your premium calculation happens based on this critical information and if you hide these facts, then you are actually breaching the contract with the company and almost always your claim will be rejected at the end. Also, don’t think that just because you smoke just once in a while does not make you a non-smoker.
If you smoke (even though every fewer number of times), you are a smoker in the eyes of the life insurance company. Same is the case with those who take alcohol.
Make sure you fill your own form because there have been cases when an agent just mentions the policyholder as non-smoker or non-alcoholic to make sure the policy is easily issued.
9. Don’t hide your health information
Another grave mistake done by policy buyers is to hide any critical health information while purchasing the policy. If you have any health issues or have gone through any major operations/surgeries then you should clearly communicate that to the insurance company. One of the reasons for term insurance claim rejection is hiding important facts while purchasing the policy.
Please don’t wait for the insurance form to ask you the exact details.
An insurance policy is actually a proposal from your end in the eyes of law where you have to disclose all the facts and the company will accept your case or reject it. So the bonus of providing all the information is on you.
10. Don’t hide your family health history
Even your family health history matters. If your parents or siblings have some illness, then even that should be shared by you. Please don’t hide it because even that information impacts your premium.
Many people think that just because their parents had diabetes, it does not matter at all. That’s not true.
11. Don’t take small insurance cover (like 10-20 lacs)
Do you know that the average sum assured per India is in the range of Rs 90,000 to 1 lac only? Indians on average are highly uninsured, however, that’s mostly true for those who do not have term plans. But even those who have term plan try to cut the corners and eventually take less term insurance cover.
The most favorite number nowadays is Rs 1 crore. I see most of the people just taking a 1 crore term insurance plan thinking that it’s the right number. No, it’s not the case.
With the rising costs and lots of aspirations, Rs 1 crore might not be enough for most of the families all their life. I suggest you should take a good enough cover which gives you enough peace of mind.
Make sure you add up all your liabilities, 300 times of your monthly expenses and some more amount which can help your family reach your other financial goals and take at least that much cover.
If your life insurance requirement is Rs 1.3 crore, better than a 1.5 crore and not 1 crore.
12. Don’t overanalyze and delay your decision
Do you see that ad these days on TV where a lady shouts on her dead husband for forgetting to buy the life insurance even though they had decided to take it
“Kya, tum term insurance Lena bhul gaye, ab Ghar ka kharcha Kaise chalega”?
One of the biggest issues with most of the potential policy buyers is that they want to buy the best term insurance policy and don’t want to make any mistake. They are aware that they need a life cover, they also start searching for the policy, do the term insurance comparison, but then start to over-analyze the policy, its features, the premium comparison and what no.
Finally, they just don’t take any decision because of the analysis paralysis. They postpone the decision and think that they will “soon” buy it.
Don’t do this
But a decent term plan asap. Do some study, but don’t get into that zone where you are just stuck because of small points. It’s better to have a good term cover with any company, rather than having no cover trying to search for the best company.
13. Don’t forget adding nominee name
While filling the insurance form, make sure you carefully put the nominee name. But who can be a nominee in insurance? Ideally, it should be wife, children or someone whom you want to pass the term plan money. But try to avoid very old people as the nominee (in general).
Also make sure you mention this fact in your WILL too, or if you are not going to create a WILL right now, you can take the LIP act MWP , so that your nominee will be the final person (it can only be wife and kids if you add MWP) who gets the money.
If you have bought the term plan long back and now your preference has changed, it’s better to change the nominee name.
14. Don’t take more than 1-2 policy
You should ideally have 1 term plan policy in your life insurance portfolio, the max can be 2 policies. But nothing more than that.
I have seen some people dividing their 2 crores of the cover into 4 policies of 50 lacs each with 4 different companies and it’s a little bit of stretch. In almost all cases, 1 single policy of a big amount is good enough.
However, if you still feel that you want to break it into two policies, that’s the maximum you should do. Also, some people who are buying another term plan after a couple of years should not note this point that they should eventually not have more than 2 policies.
15. Disclose the old insurance policy
When you buy any life insurance policy, it’s mandatory as per their rules to disclose the old insurance policy you already have. In most the cases, when people buy a term plan for the first time, they already have a couple of traditional insurance plans, but they fail to declare that.
I suggest you don’t do that because as per life insurance policies, a company should know how much coverage you already have and only based on that they will offer you additional cover.
If you have already bought a term plan without mentioning your old policies, you should reach the customer care of your term plan company and share with them about your old policies.
16. Be open to try online brokers
There are various online brokers which are building a long term business in the insurance space and provide various extra benefits to their customers like fast service, claim settlement assistance without you (customer) incurring extra cost, because they get compensated by the insurer (without putting any additional cost on your pocket).
The premium for you is the same if you buy it from the company directly only or through these brokers. These brokers give you various options to choose from and help you buy the policy which you want.
You can approach these brokers if you really feel they will add value to your transaction. I am not saying that online brokers are the only way to buy. If you are very critical of them or are old fashioned, then you can directly reach to company or your neighborhood broker.
17. Check the policy papers once you get it
One of the things which you should immediately do after receiving the policy is to check all the fine points and a copy of your medical examination. Nowadays, the policy papers have your medical records.
Kindly go through each point and make sure things like your age, name, blood group, address and other important things are mentioned correctly.
There have been cases, where the information has been wrong. If things are wrong, you can reach out to their company customer care to get it corrected.
18. Don’t fall for “10 times of Income” marketing
Almost all the call center marketing people try to sell you the cover equal to 10 times your yearly income. This often is a very simplified way of finding your life insurance coverage.
A better way to find out your coverage is to find out 300 times your monthly expenses and add up your outstanding liabilities to it. In the end, you can include 30-40 lacs more into the final number to take care of your other financial goals in future like kid’s education, etc.
For example, a guy with monthly expenses of Rs 50,000 per month and with 60 lacs of the outstanding loan will need 300 x 50,000 + 60 lacs = 2.1 crores at the minimum. So he can take a 2.5 crore term plan for himself.
However much life insurance you should take is a function of your expenses and liabilities and not your income. What if a person earns 6 lacs a month, but a modest Rs 50,000 month expenses with no liability?’
The “10 times of your income” marketing will say that he should buy a 6 crore term plan, whereas his right number would be in the range of 1.5 to 2 crore only.
19. Choose a strong and good brand while choosing Insurer
. Do you think each of them are equal in terms of surviving, claim settlement experience (not ratio), dealing with clients, depth of medical examinations, integrity in conducting business and what not?
Here are the list of all the life insurance companies in India as of 2017.
- AEGON Life Insurance
- Aviva Life Insurance
- Bajaj Allianz Life Insurance
- Bharti AXA Life Insurance
- Birla Sun Life Insurance
- Canara HSBC OBC Life Insurance
- DHFL Pramerica Life Insurance
- Edelweiss Tokio Life Insurance
- Exide Life Insurance
- Future Generali India Life Insurance
- HDFC Standard Life Insurance
- ICICI Prudential Life Insurance
- IDBI Federal Life Insurance
- IndiaFirst Life Insurance Company Ltd – India First
- Kotak Life Insurance
- Life Insurance Corporation of India (LIC)
- Max Newyork Life Insurance
- PNB MetLife Insurance
- Reliance Life Insurance
- Sahara Life Insurance
- SBI Life Insurance
- Shriram Life Insurance
- Star Union Dai-ichi Life Insurance
- Tata AIA Life Insurance
When you choose a life insurance company, you should make sure you choose the one which has a strong presence, along with a good brand (not the biggest). Read reviews online and check their data and read about them.
20. Communicate to your family that you bought a term plan
You should share about buying the term plan with your family immediately along with the policy papers and the contact number of the insurer.
You can also write down the claim process on paper and keep that at a safe location and share it with family. I know it’s not an easy conversation to do even though it’s a logical thing to do. But at least communicate with your family about the important things they should be aware
Top 30 Insurance Companies in India 2021-2023
| Rank | Company | Gross Premiums Written | Capital & Surplus |
|---|---|---|---|
| 1 | Life Insurance Corporation of India | 55,068,779 | 868,553 |
| 2 | SBI Life Insurance Company Ltd. | 6,862,207 | 1,420,180 |
| 3 | General Insurance Corporation of India | 6,419,814 | 6,996,758 |
| 4 | HDFC Life Insurance Co. Ltd. | 5,268,576 | 1,179,481 |
| 5 | ICICI Prudential Life Insurance Co. Ltd. | 4,879,325 | 1,245,256 |
| 6 | New India Assurance Company Limited | 4,512,487 | 5,145,356 |
| 7 | Max Life Insurance Company Limited | 2,596,894 | 410,723 |
| 8 | United India Insurance Company Limited | 2,302,529 | 937,573 |
| 9 | National Insurance Company Limited | 1,983,054 | 389,402 |
| 10 | ICICI Lombard General Insurance Co. Ltd. | 1,955,441 | 1,108,238 |
| 11 | Oriental Insurance Company Limited | 1,797,901 | 1,065,448 |
| 12 | Bajaj Allianz General Insurance Company | 1,723,859 | 1,027,465 |
| 13 | HDFC ERGO General Insurance Co. Ltd. | 1,699,219 | 444,273 |
| 14 | Bajaj Allianz Life Insurance Company Ltd. | 1,641,992 | 1,465,926 |
| 15 | Tata AIA Life Insurance Company Limited | 1,516,399 | 295,049 |
| 16 | Kotak Mahindra Life Insurance Co. Ltd. | 1,515,735 | 552,344 |
| 17 | Aditya Birla Sun Life Insurance Co. Ltd. | 1,334,807 | 327,478 |
| 18 | Star Health and Allied Insurance Co. Ltd. | 1,282,005 | 476,838 |
| 19 | Tata AIG General Insurance Company Ltd. | 1,170,799 | 474,726 |
| 20 | IFFCO TOKIO General Insurance Co. Ltd. | 1,164,006 | 379,200 |
| 21 | Reliance General Insurance Company Ltd. | 1,147,758 | 281,112 |
| 22 | SBI General Insurance Company Limited | 1,134,949 | 384,466 |
| 23 | PNB MetLife India Insurance Company Ltd. | 823,781 | 194,140 |
| 24 | Canara HSBC Oriental Bank Com Life Ins. | 698,594 | 174,014 |
| 25 | Reliance Nippon Life Insurance Co. Ltd. | 646,762 | 187,317 |
| 26 | Cholamandalam MS General Ins Co. Ltd. | 600,856 | 261,014 |
| 27 | IndiaFirst Life Insurance Company Ltd. | 553,779 | 105,898 |
| 28 | Future Generali India Insurance Co. Ltd. | 532,396 | 155,425 |
| 29 | Exide Life Insurance Company Limited | 453,995 | 164,826 |
| 30 | Go Digit General Insurance Limited | 442,885 | 167,934 |
FAQ | Questions People Ask
Can I buy term insurance for a spouse?
Yes, you can buy a term insurance plan for your spouse. In fact, joint term insurance plans are quite popular for the many benefits that they offer. These plans cover you and your spouse under a single policy. Buying a joint term plan for yourself and your spouse can be a simple, hassle-free, and cost-effective way to buy term insurance.
What are the factors that affect the Term Insurance premium?
The insurance company considers a lot of factors before deciding your premium. The main ones are – age, gender, personal and family’s medical history, geographical location, occupation, BMI index, and lifestyle.
How is term insurance calculated?
One of the simplest ways to calculate your income replacement value is: insurance cover = current annual income x years left to retirement. For example, if you are 40 years old, your yearly salary is ₹15 lakh and you plan to retire at the age of 60 years, the cover you will need is ₹3 crore ( ₹15 lakh x 20).
What is 1 crore term insurance?
A 1 crore term insurance plan means that the term plan provides a sum assured of Rs. 1 crore which is paid as a death benefit to the policyholder’s family/beneficiary in the event of the policyholder’s death
Is 50 lakh term insurance enough?
A lot of people would recommend you buy term insurance amount that is 15 to 20 times your annual salary, so-called the ‘basic thumb rule’ but this is not a fit-to-all formula. The threshold can be Rs. 50 lakhs, Rs.
| Amit’s Age | 30 years |
|---|---|
| Required Life Insurance Cover | Rs. 4 Crores – Rs. 50 lakhs = Rs. 3.5 Crores |
Is LIC term plan good?
LIC term plans can secure your family against any loss of income that the family might face in. People favor these plans even though they do not offer any maturity. The LIC term plan allows insurance buyers to buy a high amount of coverage levels at very low premiums.
What are the four types of term insurance?
Term insurance plans, too, come in various forms. Namely, level term insurance, increasing term insurance, decreasing term insurance, the return of premiums plans, and convertible term plans.
What is a 10 year level term life insurance policy?
A 10-year term life insurance policy provides guaranteed insurance for a decade. During this time, the insured’s premium remains the same. After 10 years, the policy expires. That means you will no longer have coverage. The death benefit coverage of the policy also only lasts until the end of the term.
Can a housewife take term insurance?
Yes, as a housewife, you can and must buy a term plan to secure your family’s financial future in your absence. As a housewife, you can either buy a term plan individually or opt for a joint term cover with your husband.
Is it worth taking term life insurance?
A term insurance plan will help the family to meet their day to day expenses and accomplish the long-term financial goals too. Yes, it is worth buying a term insurance policy no matter what year it is. When compared to other types of life insurance products, a term insurance policy is much beneficial.
Which life insurance is better term or life?
Term coverage only protects you for a limited number of years, while whole life provides lifelong protection—if you can keep up with the premium payments. Whole life premiums can cost five to 15 times more than term policies with the same death benefit, so they may not be an option for budget-conscious consumers.
