9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term

http://www.planmoneytax.com/best-online-term-plans-comparison/ 1/17
PlanMoneyTax
Best Online Term
Plans Of 2014 In India
Comparison With
New Premium
by Chandrakant 24 Comments
Are you planning to buy an online term life insurance policy?
Do you want to know the best term insurance plan in India
after the LIC e-term plan? Do you want to know
the cheapest online term plans? Are you searching for the
updated premium of online term insurance plans at one
place? Do you want to objectively compare all the available
online term plan in the market? This article will help you to
select the best term life insurance plans in India. A premium
comparison chart is also there to tell you about the best and
the cheapest term insurance plan. After reading this
article you get to know about the insurer with best claim
settlement ratio. You will have the idea about the financial
strength of the insurance companies. In the next few
minutes you will be able to judge the best online term
insurance plan. But do you know the features of term plan?
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9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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Do you know, the importance of the term plan? Do want to
know why I recommend a term life insurance plan vigorously.
Do you also want to avoid the greedy insurance agent ? If
your answer is yes, then please go ahead to choose the best
term life insurance. Else, You should first read the Term
Insurance Plan Guide.
Parameters For Selection
Of Best Online Term
Insurance Plan
To compare the online term plan of insurance companies, I
would go through these criteria.
1. Premium
2. Company Reputation
3. Claim Settlement Ratio
4. Solvency Ratio
5. Riders
1- Online Term
Plans- Compare The
Premiums
I know you care most for bargains. Hence, I will first talk
about the premium of term plans. Indeed, the biggest
benefit of online term insurance plan is the low-cost. The
premium of online term insurance is 30-50% less than offline
term insurance. This discount in premium is possible because
of the many benefits of an online sale. Insurance companies
save on agents commission and administration charge. Also,
The target group of the online term plan, the white-collar
people, is considered more healthy hence less risky.
Surprised? They are healthy not because, they do more
exercise or physical labor. But they can afford better medical
care of themselves. Like you, I am also not very much
convinced, But insurance companies consider this. So, online
term plans are most cost-effective. But like you and me
everyone wants to save more. You can do this by comparing
the online term insurance premium of different companies. A
chart is given below.
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9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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Online Term Plan Premium
LIC e Term 14,600
ICICI Pru iProtect 10,900
HDFC life Click2 Protect 10,600
Bajaj Allianz iSecure 11,960
Kotak e-Preferred Term
Plan
11,500
SBI Life eShield 13,135
Reliance Online Term 6,514 (Lowest)
Aviva iLife 7,853
AEGON Religare iTerm Life
Insurance
7,300
Max Life Online Term Plan 7,100
Bharti Axa Life eprotect
Plan
7,300
IndiaFirst Anytime Plan 9,214
Canara HSBC eSmart Term
Plan
8,740
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To prepare this chart I have visited the websites of insurance
companies and got the above quotes. These quotes are for
Rs one crore insurance cover. This premium is for a 30 year
young and healthy man. The man who does not smoke. The
above mentioned premiums are excluding of taxes. In
the above chart you can see online term insurance of one
crore can be taken at the premium of only Rs 7100. This
amount can be astonishing for many. I know, you are now
worried about the little tax saving, it offers. Relax! there are
many other tax saving options.
In the name of insurance, companies used to sell the
investment plans. These investment cum insurance plans
charge a hefty premium, but gives small insurance cover.
Previously LIC did everything to discourage term insurance
plans. But Finally, at last it has also introduced iCare. Among
private life insurer the established companies are charging
more for the term plan. The newer companies such as Aviva,
Max Life, Aegon Religare, Bharati Axa is charging premium
less than Rs 8,000. Reliance is even charging less than Rs
7000. But as I said you should not decide only by premium.
2- Choose Reputed
Insurance Company
You take Life Insurance for a long duration. Particularly, term
insurance is taken for 20-35 years. The financial security of
your family lies with the insurance company. In this scenario,
the insurance company should be reliable and reputed.
Definitely LIC scores on this front. LIC has backup of the
government of India. It has been in the country for more than
50 years. ICICI Pru and HDFC Life are also subsidiaries of the
two biggest private banks of the country. Management of
these companies are professional. In my opinion, these two
insurers are also in A grade. Bajaj, Kotak, SBI and Canara
HSBC also have better corporate governance record. Rest
life insurer falls in C grade. Please keep in mind, this grading is
subjective.
9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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3- Choose An Insurance
Company Which Has
Better Claim Settlement
Ratio
The claim settlement ratio shows the professionalism of the
company. This ratio is the number of claims honored by the
company out of the hundred claims. Suppose in a year a
company receives 100 insurance claims. But out of these 100
only 90 people get the claim amount. Remaining 10 claim is
rejected for some reason. These reasons may be genuine, but
it shows the probability of a claim being dishonored. I will
never take insurance cover from a company which rejects the
claims of the most people. Neither, you would select a
company which can give a harrowing experience to your
family. IRDA publishes claim ratio of every life and general
insurance company in its annual report. Below is the latest
claim ratio (2012-2013).
Company Claim Settlement Claim Settlement
9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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Ratio (Numbers) Ratio (Amount)
AEGON Religare 66.82 57.6
Aviva Life 87.71 68.73
Bajaj Allianz 88.67 78.74
Bharti Axa 89.48 71.61
Canara HSBC
OBC
88.4 87.23
HDFC life 95.76 87.8
ICICI Pru Life 96.29 90.71
IndiaFirst 71.4 62.09
Kotak Life 92.04 79.28
LIC 97.73 95.66
Max Life 94.25 88.43
Reliance Life 86.45 74.94
SBI Life 94.41 92.3
9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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Greater claim ratio means the more trustworthy company.
The claim ratio of more than 90% is considered good. In the
above chart LIC, ICICI Pru Life, SBI Life, Max Life and HDFC
life have the claim ratio above 90%. I have taken two types of
claim ratio to gauge the right professionalism of the
company. There are companies which have a decent claim
settlement ratio when considered in numbers, but when we
take account of the amount, Companies slip below. Did you
know the reason of this anomaly? It is because insurance
companies are reluctant to pay the claim, if the amount is
higher. The learning of these two types of claim settlement
ratio is that we should judge the insurance companies by the
claim settlement ratio which takes account of the total
amount. Those, who are considering for a high sum assured,
should give more weight-age to this criteria.
9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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4- Know The Financial
Strength of Insurer
Through Solvency Ratio
The criteria of solvency ratio is a bit technical. Let us learn
about the solvency ratio.
Insurance companies take premium from us and give
the insurance cover.
Through actuarial calculation the companies know the
number of claims can arise in a particular year.
The total assumed claim amount is considered a
liability.
Besides this, companies has provision of the
guaranteed maturity amount. It has to always
maintain the maturity amount to be given.
What if due to any reasons the insurance claimants
increase drastically? What if investment of insurance
companies under-performs heavily. In these scenario
insurance companies may not meet its total liability. To avert
such crisis, insurers have to keep some extra capital. This
extra capital is called solvency. The solvency should be in the
proportion of the total liability. IRDA has fixed minimum
solvency ratio of 1.5. The greater the solvency ratio means the
company is more prepared for exigencies.
HDFC Life Term Insurance
Aviva i-Life Term Plan
Max Life Term Plan
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1Cr Life Cover @ Rs 543*
Online Term Insurance
HDFC ERGO Health Policy
Jeevan Saral Plan
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Aegon Religare iTermPlan
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9/9/2014 Best Online Term Plans In India After Launch of LIC e-Term
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Solvency ratio is the measure to find out the financial
condition of the insurance company, But it does not
give the complete picture. Take the case of LIC, it has
the least solvency ratio, but it is financially sound than
any other company. ICICI Pru Life and HDFC Life have a
less solvency ratio than many other companies. But we
should also consider that these companies have huge assets,
therefore better prepared of any exigencies. Indeed, you
should take care of this factor for new and small company.
Bharati Axa, Aegon Religare and Max Life has the solvency
ratio more than the prescribed limit. But these companies
are more vulnerable among all the life insurance companies
of India.
5- Add value to online