Term Insurance Plans with Extra Benefits
Life is full of uncertainties and nasty surprises. How do you cushion the impact of the loss of a loved one? There is no amount of monetary compensation that can lessen the grief. However, life must go on, and for that, you need money to carry on with life – especially if the loved one is the sole breadwinner in the family. Term insurance was made to prepare you for a life without the departed soul around.
What is Term Insurance?
Term insurance is the simplest form of cover for your life. The main purpose of this type of insurance is to ensure that the nominees/family will receive the sum assured in the case of the death of the policyholder.
As the name suggests, the policy is for a fixed period that is agreed upon by the policyholder. If the insurer dies during this period of the term, then the sum assured is given to the family. This is the cheapest form of life insurance where premiums are concerned.
Given below are the best term insurance plans in India.
ICICI Prudential iProtect Smart Online Term Insurance Plan
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ICICI Prudential Online term plan is also known as iProtect Smart Term plan” and was introduced in 2010. The company has performed consistently well with a claim settlement ration of an impressive 96.20%. The premium amounts for this term insurance is affordable and competitively priced. Here are some key features of the plan:
- This term plan features “Waiver of Premium due to permanent disability” due to an accident – at no extra cost.
- It has riders like Accidental death benefit and additional cover for 34 critical illnesses.
Aegon Religare iTerm Plan
This plan has a built-in ‘Terminal Illness Benefit’. When a terminal illness is diagnosed, then 25% of the base sum assured is paid. The base of the assured sum is reduced by the amount of the benefit paid. It covers all forms of death including terrorist attacks, murder, etc. The iTerm plan offers riders like ADB and critical illnesses (as mentioned in the policy document). In these cases, all future premiums are waived off. Aegon Religare term plan has an average claim settlement of 95%. They are the pioneers of affordable online term insurance.
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Max Life Insurance Company has a very competitively priced online term plan that is easily affordable by anyone. It has one of the best claim settlement ratios and offers optional Accidental Death Benefit rider while the basic cover has two options.
- Basic Life cover plus Monthly Income
- Basic Life cover plus increasing monthly scheme
The term plan offers the following features:
- Maximum age at entry – up to 60 years
- Options like premium waiver and critical illness covers are available on payment of additional premium.
- Maximum life coverage is up to 85 years for term plans
- Lapsed policies can be revived within two years of the first unpaid premium.
- Free look period for 30 days (online plans only)
- The grace period for a monthly payment of premium is 15 days while it is 30 days for other modes of payment.
It has decided to merge with HDFC Life and is awaiting the approval of IRDA.
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Kotak’s e-Term plan is a very affordable plan and has a fairly decent claim settlement ratio of around 89%. This plan has an option where a part of the sum assured is paid to the family on the death of the policyholder. After that, a fixed amount is paid for the next 15 years to the nominee. This plan also features a “Waiver of premium on total and permanent disability.’
Three choices of plans are available to the buyer:
- Life Option – The full amount of sum assured is paid to the nominee on the death of the insured
- Life Plus Option – The full amount of sum assured shall be paid to the nominee on the death of the insured. The accidental death benefit shall be paid to the nominee up to a maximum of ₹ 1 Crore.
- Life Secure Option – If the insured is totally and permanently disabled, then all future premiums shall be waived. The death benefit shall be in force for the duration of the term of the policy.
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LIC launched this policy in May 2014 and is one of the insurance companies you can bank on. It has one of the highest claim settlement ratios (98.33%) among life insurers. The minimum sum assured under this plan is ₹25 lakhs. It is relatively cheaper than their Anmol Jeevan / Amulya Jeevan. However, compared to other private insurers, these plans are expensive.
However, the latest notification from the government requires all PSUs to provide discounts/rebate on online premium payments.
Why Are These Term Plans Recommended?
These plans were recommended for the following reasons.
- Based on IRDA’s Claim Settlement Records of companies offering life insurance
- Brand Name – companies with a good track record of doing honest business and customer-centric
- Providing a customer friendly experience to customers during the online buying process.
- Excellent after sales support provided by the company’s customer support team.
- Simple and intuitive online buying
- No intermediaries who would try to sell you something that is not what you want. Besides, this agent would be mainly interested in his/her commission or fulfilling his sales targets.
- NRIs can easily buy term insurance plans online.
In the case of NRIs, there could be additional costs for medical examination and the costs of sending the reports to the insurance company in India. On the other hand, if you purchase the policy in India, the cost of the medical examination is built in the cost of the policy. An insurance policy purchased in India covers death that occurs anywhere in the world.
If you are looking for a more affordable life insurance plans, then visit Paisabank.
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