There is no one best life insurance policy that will cater to the needs of all individuals as the life insurance needs vary from individual to individual. To decide which term insurance plan to go for, consider the following factors: Best life insurance.
1. Claim settlement ratio (CSR): CSR is the number of claims settled by a life insurance company for every 100 claims received by it in a year. As on March 2018, as per the IRDAI website, the latest data available on Claim Settlement Ratio for life insurance companies is for the year 2016–17. Following are top 8 companies with the highest claim settlement ratio.
Life Insurance Corporation (LIC) – 98.31
While a good CSR is important, when it comes to buying a term insurance plan, the claim settlement ratio should not be the only criteria.
Apart from claim settlement ratio, you should consider the following points to arrive at a term insurance plan that suits your needs:
2. Premium: Compare the premiums of term insurance plans with similar features and evaluate which one offers you more value for money.
3. Maximum tenure of the plan: While most term plans will cover you for a maximum tenure of 35 to 40 years, there are some plans that will cover you for a higher tenure. TotalSecure+ from Edelweiss Tokio offers a maximum plan tenure of 62 years. This can cover you well beyond your retirement age of 60 years up to a maximum age of 80 years.
4. Claim pay out options: Life insurance companies offer choice of different various claim pay out options for the customers’ convenience. Evaluate the various claim pay out options offered under various term plans and choose the one that suits your requirement. For example, Max Life Online Term Plan Plus comes in the following 3 variants:
a) Basic Life Cover: Under this option, 100% of the sum assured is paid on death
b) Basic Life Cover + Level Monthly Income: Under this option, 100% of the sum assured is paid on death + 0.4% of the sum assured is paid per month, for 10 years
c) Basic life cover + increasing monthly income: 100% of the sum assured is paid on death + Increasing monthly income is paid for 10 years.
5. Riders: Access your requirement and check if you need to purchase any riders with the term plan and check whether the term plan is offering those riders. For example Edelweiss Tokio Life TotalSecure+ offers a choice of four optional riders, which include:
a) Accidental Death Benefit Rider
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b) Accidental Total and Permanent Disability Rider
c) Waiver of Premium Rider
d) Hospital Cash Benefit Rider
6. Option to increase life cover at important life stages: Evaluate if you would like to enhance your life cover at important life stages like marriage, child birth etc. For example, ICICI Prudential iProtect Smart offers the flexibility to increase the insurance cover at important life stages, without any medical tests, as follows:
a) Marriage: The life insured can increase the death benefit by 50% of the original death benefit, subject to a maximum additional amount of Rs. 50 lakh
b) 1st childbirth / legal adoption: The life insured can increase the death benefit by 25% of the original death benefit, subject to a maximum additional amount of Rs. 25 lakh
c) 2nd childbirth / legal adoption: The life insured can increase the death benefit by 25% of the original death benefit, subject to a maximum additional amount of Rs. 25 lakh
7. Variants of the plan: Term insurance plans of some companies are offered in various variants giving flexibility to the person to choose the variants that suits their requirement. For example HDFC Life Click2Protect 3D Plus offers 9 variants to choose from. Some of these include:
a) Life: Basic plan that pays lump sum amount as sum assured on death. All other variants cover this feature and some additional benefit.
b) 3D Life: Under this variant, future premiums are waived off on diagnosis of any of the specified 34 critical illnesses
c) Extra life: This variant pays additional sum assured, if death happens due to accident
d) Income: Pays additional level / increasing monthly income
e) Return of premium: If life assured survives the plan tenure, then the premiums are returned
The above are some of the variants of the plan.
On my blog, I have compared the claim settlement ratio of various insurance companies for the last 4 years. I have also compared the premiums and features of online term plans of 6 life insurance companies. You may check the details here:
I have chosen Aegon Life’s life insurance policy. I believe that this is the best life insurance policy in India and therefore, I would suggest you to go for the same. Besides, here are the following benefits offered by this plan, which makes it a perfect choice –
1- It protects your assets: Always remember, in case of your death, it’s your family who will pay all your debts, if any. If in case they fail do so, the financial institution which is involved will take possession of your car or house. Thus, a life insurance plan ensures that nothing like this happens to you. Therefore, it helps you to protect your assets.
2- It increases your wealth: Insurance also helps you to increase your wealth. Life insurance policies such as Unit Linked Insurance Plan earn you a return by investing a small part of your premium payment in to the capital market. In short, these insurance plans have a dual benefit – investment and protection.
3- It provides tax benefits: You can avail tax exemptions on your insurance payment under the section 80D or section 80C of the Income Tax Act. This thing will help you to save even more money.
Life insurance is a contract that is held between the policy buyer and the insurance company, wherein the policyholder pays a premium to the insurer and the insurer provides a risk cover in return. Thus, a life insurance policy is the best way to provide financial security to your loved ones. In life insurance, if the life assured passes away due to a natural or accidental death, a death benefit will be paid to the nominee. This payout can be used to pay for immediate expenses of the family, to fund your children’s education needs, serve as an income replacement for one’s family, etc. Thus, it is essential that you invest in a suitable life insurance policy without delay.
As a policy buyer, you can choose to purchase a life insurance policy through both online and offline channels. In this article, we will look at 5 online life insurance policies that are offered by companies with the highest claim settlement ratios for FY16-17.
LIC’s e-Term Plan: The e-Term Plan from LIC is a non-participating, regular premium, online term insurance policy that can be purchased by individuals between 18 years and 60 years. Policy buyers must choose a minimum sum assured of Rs.25 lakh if they belong to the aggregate category, or Rs.50 lakh if they belong to the non-smoker category. A policy tenure between 10 years and 35 years can be opted for. Under this policy, a death benefit will be paid to the nominee if the policyholder meets with an untimely death.
Max Life Online Cancer Insurance Plan: The Online Cancer Insurance Plan from Max Life provides coverage for all stages of cancer and offers a payout upon diagnosis of the disease. This policy can be purchased by individuals between 25 and 65 years of age, and coverage can be availed until one attains the age of 75 years. This policy also offers tax benefits under Section 80D of the Income Tax Act.
HDFC Life Click 2 Protect 3D Plus: The Click 2 Protect 3D Plus is an online term plan that offers comprehensive coverage to the policyholder at an affordable price. The unique benefit of this policy is that it provides coverage against death, disability, and diseases. The maximum age at entry for this policy is 65 years. Policy buyers must choose a minimum sum assured of Rs.10 lakh to purchase this policy.
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Aegon Life iTerm Insurance Plan: The iTerm Insurance Plan is a popular online term plan that provides comprehensive protection and is cost-effective. This policy also comes with an inbuilt terminal illness benefit. Coverage can be availed up to 100 years of age. Further, policyholders can increase their life cover during significant milestones in their lives.
SBI Life – eShield Plan: The eShield Plan from SBI Life is a non-linked, individual, non-participating, pure term insurance policy. This policy comes with two benefit payout options – the Level Cover Benefit and the Increasing Cover Benefit. An inbuilt Accelerated Terminal Illness Benefit is offered for both the payout options. In order to purchase this policy, one must be over the age of 18 years. The maximum policy tenure for the eShield Plan is 30 years.
With the digitisation of the insurance industry, several insurance firms in India have started to offer online insurance plans. Online insurance plans have a hassle-free application process, are time-efficient, and are also usually less expensive. However, before you purchase a particular online insurance policy, make sure to compare plans either via the official websites of insurers or through trusted third-party insurance websites and choose one that gives you optimum coverage and meets your exact needs.
If you are searching for the best life insurance policy, then your search for the best options ends here as iam providing you with a complete list of the 5 best life insurance policies in India.
Considering past performance, this insurance comes at the top as it completely fits the perception of a life insurance that a consumer New Jeevan Anand plan from the LIC Life insurance is a mixture of dual benefits including protection as well as a savings plan. This transforms into the usual security against your ill-timed death in terms of financial assistance for your family as well as maturity benefits if you survive the policy term multifaceted approach of this insurance policy makes it one of the best life insurance policies available in India.
It is basically a short term unit linked insurance (ULIP) plan that works on the premise of assisting you in achieving your investment goals in a relatively short period of 10 years, whereas alongside providing the required financial cover to your family against the potential perils emerging from your ill-timed demise. As a consumer you have to pay the premiums for just 5 years to enjoy market linked returns for the comprehensive duration of 10 years.
3. SBI Life Insurance– eShield If you are searching for a robust life insurance policy, then this is what you are looking for. It is one of the trusted life insurance policies as the name of SBI is associated with it. It is a comprehensive term plan that is non linked and non participating in nature. This policy is best for those who are looking for financial protection that provides complete peace of mind and domain capability that will surely be supplied by SBI Life.
4. SBI Life Insurance – Shubh Nivesh Yet another versatile product from SBI Life. It is a non-linked entity that provides dual benefits of endowment assurances and whole life coverage as well. This policy permits for maturity benefits- a lump sum amount paid in case you live through the tenure period, or conversion of the payable amount into a regular income source for a chosen duration of time. Alternatively, your family enjoys the financial benefits in case of your unfortunate demise during the policy tenure.
5. AEGON Religare iTerm Plan – If you are thinking about purchasing the best life insurance policy, then you must think about AEGON Religare iTerm Plan. It is a trusted brand plan ensures the protection of your family at a part of the conventional cost. This trouble-free, robust, scalable and efficiently managed plan is all set to be the top life insurance policy in 2016. Nowadays, the most common confusion among the life insurance buyers is the reliability of online life insurance plans. There are many life insurance plans available in the online as well as offline market which varies by prices and even features. People usually ask: Are life insurance plans reliable? If so, then why do companies offer their plans at a lower premium, online as compared to traditional offline life insurance plans. Don’t get confused, let us tell you the fact behind the same. Online insurers offer insurance plans at lower prices due to the lower distribution costs as compared to the offline companies which are present in limited cities and want better profiles of the consumers.