Term Insurance Poll 2022!
Please use this poll and vote for the company you trust or company you have subscribed.
And don't forget to add something valuable that could help new term insurance buyers.
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Created by : azzuridd
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ICICI isn’t cheap. In fact costlier than most..
Choose between HDFC IPru Max TATA
Claim Paid Ratio yoy is a factor that you should always consider while buying
I prefer paying yearly till policy expiry. Don’t fall for the trap of pay for x years a higher amount
Learnt that after I bought mine 
chose Aegon Life Insurance
Max Life anytime. Best customer support with highest claim ration in the market so far. From agent point of view TaTa AIA is good😂
\bumping for visibility/
1. Max life
2. LIC tech term plan 854
3. Tata AIA
My analysis is based on following factors:
- Claims incurred ratio
- Claim settlement ratio
- Amount settlement ratio
- Claim rejection/repudiation ratio
- Average claim ratio
And then, last 3 year trend of all these ratios, like which company is doing the same, which is doing better year or year & which has already started going downhill.
PS: Tata AIA has one issue. If you’re buying 1cr term ins, they’ll make it 70L pure term insurance + 30L mandatory terminal or critical illness rider. I asked them about this & the representative said it works same like any other term insurance, but better have full clarity before buying.
PS: DO NOT FALL FOR MAX LIFE SCAMMY OPTION OF EXITING THE INSURANCE PLAN WITH RETURN ON PREMIUM. It’s a free rider that says if you take term insurance cover till more than 73 years age, then you get the option of exiting term insurance at age 58 & all your premiums will be returned. It’s a scam & big loss.
@atx88 Is there some sort of reduction in insured amount in case of early death of a person who opted for regular payment instead of upfront payment as in some general insurance policies there is a max limit on claim amount based on how much premium was paid(like in any case the claim amt cannot be more than 110% or 150% of premium paid till now etc).
I think what you’re saying is applicable only for mixed products like wealth plans, ULIPs or plans which have some exit/surrender value, and not for pure term plan.
In pure term plan, even of insured person dies in 3rd-4th month, full sum insured is payable. Ofcourse insurer can challenge claim in some cases like health etc if all correct medical info is not provided while buying insurance. But insurer cannot challenge after 3 years of policy taken I think.
But yes, its always better to ask this clearly from insurer before purchasing policy. Sometimes it may happen that when you change payment duration, the plan itself may get changed.
@atx88 @guest_999 @raman12 Which is better Fixed sum assured or Increasing sum assured..?? I am confused between them. Can you help me to select the right one..??
Short answer: Fixed is better.
Detailed answer: It is based on your requirement buddy… Lets take example of 1 crore plan…
My calculations are for a 33 year old, male, no tobacco.
Now here is how your flow chart should be:
Question 1: Ask yourself, do you need twice cover today? (2cr plan)
Q2: Answer to Q1 will always be yes, because hell yeah, why not. But that’s not the point. The question is can you afford it today?
Q3: If Q2 answer is yes, then go buy it. You’ll have 2cr protection from today itself.
But if Q2 answer is no, then are u willing to pay extra premium today to have a lower cover today, but slowly your cover will increase? (my guess is you’ll or are already confused in this step!)
Note that this extra premium is not just ‘little extra’. I checked 2 plans: LIC tech term plan and canara hsbc iselect term plan.
For LIC, premium increased by 73% and for canara hsbc, the increase was 78%.
In other words, if your premium for fixed sum was 20000, then for increasing sum, it will be 34750 in LIC & 35630 in canara hsbc. This is huge difference you have to pay for next 20-30 years.
In LIC, from 6th year, your coverage will increase by 10% of original cover every year until total cover becomes 2×. This means after 15 years, you’ll have 2x cover.
In Canara hsbc, right from 1st year, cover starts increasing by 5%. So after 20 years, you’ll have 2x cover.
So for 15/20 years, you will keep paying 73% extra premium but you won’t get 2x cover. Infact, for the starting 5-7 years, you’ll be paying a lot more premium in comparison to the cover you’ll be getting. For ex. after 5 years in canara hsbc, you’ll be getting 25% extra cover but you’ll be paying 78% extra premium. In LIC, after 8 years, you’ll be getting 30% extra cover but paying 73% extra premium.
So now you’ve seen the maths. If you’re okay with this time duration & premium cost, then okay, go buy it.
But wait, here is one more thing to consider: If you have the money to pay 75% extra premium today, then why not buy 1.75 crore term plan from the first day itself for about same premium? Yes, in increasing cover option, you’ll get 2 crore after 20 years, but these 20 years are also important right?
For me, in LIC:
- increasing 1cr plan = 28226 per year
- fixed 1.75cr plan = 28436 per year
Summary:
Cons of increasing sum option: Repeating above para again, for same premium, for first 10-12 years, it’ll be a loss if you choose increasing option.
Pros of increasing sum option: Increasing sum option is 25 lakh extra for same premium, but after wait of 15 years.
So think about your preferences & then weigh your option.
guys I am still confused…which company is best? Lic tech term plan seems too attractive but good if you pay the premium one time( for me 1cr cover cost only ₹2.5L).. whereas if you continue till policy tenure it is almost 3 times.. also lic don’t have 10-15 years payment option
I am a salaried person and wants to pay the premium in 10-15 years rather than dragging till end because later I may or may not be able to pay..also in IT you know job is not secure
Please suggest….max seems good but I feel it is hyped
atx88 Thanks for sharing your knowledge bro.
Max is best
ICICI is cheap and good