Term insurance market in India is presently under 'Monopolistic competition' (MC) conditions. There are many firms offering similar products & services, but all there products are not identical. Take for instance, a tooth paste. Colgate and Closeup offer similar products, but there products aren't the same. Under MC the firm is not entirely a price taker, but can influence it to some extent depending on its branding, costing and its reach. Hence you will find Colgate and closeup tooth paste closely priced, competing for space and heavily depending on advertising/ in house operations. If Colgate increases its product price, customers will prefer to buy closeup and vice versa. Market share has no consequence on purchase trends in the market. Best term insurance.
Similar competion exists in the term cover market in the insurance industry. There are many firms offering similar products to vast no of buyers. The firms fix there prices according to there branding with a bit of product differentiation. The biggest brand is LIC, and hence, LIC prices its term products the most. It has certain strong fundamentals and can do so well within its right. Besides, all it offers is pure term cover, sans riders, sans Critical Illness etc…
Coming to the other players, like Aviva, to differentiate themselves from the big players, it offers a bouquet of term products, mainly to differentiate it self from the other players, and to offer the buyers a wider option.
There are other players like, HDFC, ICICI who have a strong hold on there customers, by virtue of there banking verticals and the home loan advances, and they make the best out this by leveraging there customer relations.
Smaller player, either tie with banks, or they keep there premium rates, woefully low to attract customers.
These tactics may work in the short term, however, not sustainable in the long run.
As a customer, you have a wide choice in the Term Assurance sector and as all firms are trying there best to offer you insurance.
Consider the following points while you choose Term assurance:
Price shouldn't be the only consideration.
Check out the outstanding/repudiated claims ratios of all CO's by visiting website of the regulator.
Check how the CO's are performing with respect to the Surplus generation in the same website. Most of them are in heavy losses.
Some cos have gone overboard in offering term assurance, and we read, off and on, they defaulted and were ordered by the court to pay the Assured amt.
Some CO's are taking the nominees for 'out of court settlement.'
It's all happening out there. Advices to take well considered and well thought out decision.
Call me for niche area details on 9441389721.
Best Term Insurance Plans for 2018
Today I will discuss about BestTerm Insurance Plans for India generally life insurance is referred to as traditional life insurance there is other type of life insurance as well.
Term Life Insurance - as the name itself suggests that this is an insurance which covers the risk of one's life for a specified term or period on payment of lump sum or regular during the risk coverage period the insured person dies,the predetermined sum assured is paid to the nominee of the insured.Further, during the policy term if no unprecedented incident occurs (no death), no maturity value will be paid to the policy holder.Since, term life insurance provides purely life risk coverage at a very nominal premium as compared to traditional life insurance, it is gaining momentum day by insurance emphasizes solely on risk coverage and therefore its inherent nature is insurance and not an investment.
It is noteworthy to state that Term Life Insurance is a very low cost product,covers a huge life risk at a very low premium and provides insurance even up to 100 years of can buy it online very conveniently at home.Online Term policy is very cheaper and no undue influence by the offline agents due to non engagement of middleman in online policy.
Life insurance prices
A term life insurance mainly has three components. Such as
Face value i.e. Death benefit or Sum assured;
Premium amount i.e. cost to the insured;
Standard risk coverage ratio and beneficiaries:Generally, Term insurance should be done for at least covering 10 to 12 times of one's annual income and is beneficial for sole bread earning member of the family who do have many other financial liabilities as well.
Ideal amount to invest in Mutual Funds
What is BSBD account? Basic Savings Bank Deposit account
Direct Mutual Fund investment
How to choose Best Term Insurance plans for 2018?
Currently, there are 24 numbers of insurance companies operating in India. All of them do sell Term Insurances in different variety of options covering all of our needs.Now, the question is are all of them good or best suited for answer is probably no.Now, take a look at the factors that you should consider before buying a term life insurance.
While buying a term life insurance policy you should consider the following factors.
Low premium with high risk coverage;
IRDA Claim Settlement Ratio for 2016-17
We can observe from the above table that out of total 24 Companies only 8 Companies did achieve a claim settlement ratio over 95%.
From claim settlement ratio point of view the eight Companies which topped are:
Now, take a look at the average claim settlement amount for 2016-17:
LIC’s Amulya Jeevan – II, is a pure term insurance plan. It is one of the best and well known term plan, which provides the entire sum assured to the nominee in case of unfortunate death of policy holder during policy term on very low premium. This plan does not provide any maturity value. This policy cannot be purchased online.
Highlights and Benefits:
High Sum Assured plan with very low premium.
Very long tenure of 35 years can be chosen.
Income Tax benefits on the Premiums paid under Section 80 C, and as per Sections 10(10 D), tax benefits can be enjoyed on the claims as well.
Age of Entry: 18 to 60 years
Premium Paying Mode: Yearly and Half Yearly
Basic Sum Assured: 25 lakh and above
Other KYC Documents: PAN Card, Adhaar Card, Tax Details etc.
Medical Check Up with LIC’s authorized Doctors.
Check how this policy benefits at the tenure of 30 years for the age bracket between 22 to 40.
Plan today for your Family Future. “Think outside the box”
There are many online websites that provide term insurance plans and easy comparison. Such websites are very convenient and can make decision making very easy.
These websites only contains 2–3 best insurance, but they miss out on many other insurance companies. Always compare the insurance provider websites to check for the latest updates and not the aggregator websites tobuy term insurance online.
There is one amazing eTerm insurance by Kotak Life Insurance in which you get protected @ less than Rs. 9/day.
They have Multiple Plan options -
Choose between Life, Life Plus or Life Secure option to ensure you have an ideal cover to secure your family:
– 100% of Sum Assured on Death shall be payable on Life Insured’s death
– 100% of Sum Assured shall be payable in case of accidental death of the life insured along with death benefit, subject to a maximum of Rs. 1 crore.
– All future premiums are waived in case the Life Insured becomes total and permanent disabled. The death benefit under the term insurance plan shall continue to be in force for the remaining policy term
इंश्योरेंस पॉलिसी हर किसी के लिए जरूरी होती है, लेकिन अक्सर लोग ये फैसला नहीं कर पाते हैं। बहुत से लोग यह भी सोचते हैं कि आखिर इंश्योरेंस की जरूरत है भी या नहीं।
मुसीबत की घड़ी में परिवार के लिए मरहम
किसी की अचानक मौत हो जाने से न केवल एक जिंदगी का नुकसान होता है, बल्कि पूरे परिवार को एक बड़ा झटका लगता है। अगर मरने वाला शख्स ही परिवार का खर्च वहन करता था, तो ऐसी स्थिति में परिवार की हालत बहुत ही खराब हो जाती है, क्योंकि कमाने वाले की ही मौत हो जाती है।
इंश्योरेंस पॉलिसी ऐसी स्थिति में काम आती है। जीवन बीमा से भले ही मरने वाले इंसान की कमी पूरी न की जा सके, लेकिन किसी की मौत के बाद बीमा से मिले पैसों से परिवार को अपना खर्च चलाने में थोड़ी आसानी हो जाती है।
अगर आप जीवन बीमा करवा रहे हैं, तो आपके लिए सबसे अच्छा विकल्प है टर्म प्लान। टर्म प्लान के तहत काफी कम कीमत में बहुत अधिक पैसों का कवर मिलता है। इस तरह की पॉलिसी पूरी तरह से सुरक्षा के लिहाज से ली जाती है।
जीवन बीमा कराते वक्त इस बात का खास ध्यान रखें कि बीमा एक खर्च है, न कि निवेश। ऐसे में टर्म प्लान लाइफ इंश्योरेंस सबसे अच्छी पॉलिसी होती है। इसके तहत काफी कम पैसे देकर कुछ विशेष सालों के लिए सुरक्षा कवर मिल जाता है। टर्म पॉलिसी सामान्यतया 30, 35 और 40 सालों के लिए ली जाती है।
Term Insurance is basically an income protection for your family.
It is a very critical policy that can financially save your family in case of your untimely death.
So cost should never be a constraint while opting for a good term insurance.
What you should actually look for is the Claim settlement ratio …
Claim Settlement ratio by no. of policies:- It gives the number of claims settled per 100 claims.
Claim Settlement ratio by benefit amount:- It gives the amount given by companies to insured to the amount collected as premium.
Both of these are critical data.
For 2016–2017 I found LIC & Max life had the best Claim settlement ratio by no. of policies(98% and 97 % respectively).
Also LIC and MAx Life had the best claim settlement ratio by benefit amount (95% & 94% respectively)