Online Term Insurance Plans

by Gopal Gidwani on June 17, 2011 · 58 comments

in Financial Planning,Insurance

Introduction
Ganesh is a 30 year old engineer working in a manufacturing company. Ganesh’s family includes his wife (homemaker), a 5 year old daughter (Komal) and retired parents.

  • Ganesh has a 20 year home loan of Rs. 25 lakhs which he is servicing since the last 2 years.
  • He has a 5 years car loan of Rs. 7 lakhs which he took last year.
  • Ganesh is investing Rs. 5000 per month for his daughter Komal’s education and another Rs. 5000 per month for her marriage. Ganesh started these investments 3 years back. Ganesh wishes to make Komal a successful engineer just like him.
  • Ganesh enjoys an annual vacation with family for which he pays from his credit card.
  • Ganesh doesn’t believe much in insurance, although he has bought an endowment plan which covers him for Rs. 5 lakhs. He bought this plan only with the intention of saving income tax.

Ganesh is a perfect example of rising middle class of ‘Shining India’. Ganesh enjoys life to fullest and he doesn’t have much savings. So far life has been very good for Ganesh, until life gave him this nasty shock.

Sometimes life can be cruel
Ganesh had promised his daughter Komal that this time he will take her to Kashmir for an annual vacation. Komal is thrilled by the fact that she will get to see and play in snow for the first time in her life, which so far she has seen only in movies. Komal is eagerly waiting for her dad to return from the business trip from Chennai after which they plan to proceed with their annual vacation to Kashmir. Little Komal did not know that her dad will never come. The only thing that came was the tragic news of her dad’s death in a plane crash. The family is in a shock and disbelief. The news of Ganesh’s death has not even sunk in. The tears of the family have not even dried and along with relatives who have come to express grief and condolences, the family has unexpected visitors knocking on their doors. These unexpected visitors are none other than the recovery agents:

  • First its the credit card recovery agents who are demanding their outstanding dues to be cleared at the earliest.
  • Then the finance company agents repossessed the car and disposed it off in the market to recover their outstanding car loan amount
  • Then the bank officials are demanding their home loan EMI’s threatening that they will seize the house if the EMI’s are not paid on time. Where does the family go if the home loan EMI’s are not paid on time and the bank takes the possession of the house???
  • Komal’s plans of pursuing engineering when she grows up have crashed!!! Who pays for her education???
  • Komal’s marriage plans are in a limbo!!! The investments that Ganesh was making for Komal’s education and marriage have come to an abrupt halt.
  • There is a big question mark on the family’s survival itself. The 5 lakhs insurance cover that Ganesh had taken can barely take care of the family’s needs for the next 1-2 years. What after that??? How does the family survive???

Importance of Insurance
Everything was good and going well till the unexpected and untimely death of Ganesh. So where and how did Ganesh get his planning wrong??? Ganesh did not have adequate insurance cover to take care of his liabilities and responsibilities in his absence. Had Ganesh taken appropriate life insurance cover to take care of his liabilities (credit card dues, car loan, home loan) and his responsibilities (Komal’s education and marriage expenses and the family’s survival expenses) in his absence, then today his family’s survival would not have been in question. Insurance premium that we pay for adequate protection of our liabilities and responsibilities is the small price we pay for the well being of our family in our absence.

Online Term Insurance Plans
Since the last couple of years some insurance companies have come up with online term insurance plans. In terms of features, these online plans are no different from the term insurance plans that can be bought from agents. But the major difference is in the way they can be bought and their pricing. These plans as the name suggest can be bought online only through the internet (from the company’s website). Since there are no agents involved and the administrative costs for these plans are less, the premium for these plans is less by 30% – 50% as compared to other term plans that can be bought through agents. The premium payment for these plans can be made through credit cards or internet banking.

Comparison of Term Insurance Plans
Let us compare the premium and features of some of these online term insurance plans

Company NameKotak Life InsuranceICICI PrudentialMetlifeAegon ReligareAvivaIndiaFirst
Term Plan Namee-Preferred TermiProtectMetProtectiTermi-LifeAnytime Plan
Premium for a 30 year old person for a cover of Rs. 50 Lakhs for 20 Years
PremiumRs. 5487.43Rs. 5791Rs. 5294Rs. 5736Rs. 4893Rs. 6162
Minimum Sum AssuredRs. 25 Lakhs10 Lakhs25 Lakhs10 Lakhs25 Lakhs10 Lakhs
Maximum Tenure30 Years30 Years35 Years25 Years35 Years30 Years
Claim Settlement Ratio for 2009-1086.9790.1782.544887.1153.85

Please note: All the premiums are inclusive of taxes and have been taken from the respective company websites. All the premiums are as on 29th May 2011.

Claim Settlement Ratio is the number of claims settled by the insurance company for every 100 claims received by it.

Features of online term plans
We can see from the above table, every company plan as its own features which acts as its USP.

  • I-Life from Aviva has the lowest premium and the maximum tenure of 35 years.
  • Even MetProtect has a maximum tenure of 35 years which is higher than the tenure of plans offered by Kotak, ICICI Prudential and Aegon Religare.
  • Kotak offers the buyer to increase (step-up option) the cover in the middle of the plan tenure during important events like marriage, child birth, buying a house.
  • ICICI Prudential has the 3rd best claim settlement ratio in the industry at 90.17 after market leader LIC (96.54) and HDFC Standard (91.14). Aegon Religare has a low claim settlement ratio at 48% being a relatively new player compared to other players in the industry. Claim settlement ratio is one of the important points to be considered at time of buying an insurance plan.
  • IndiaFirst Life Insurance Company’s premium for ‘Anytime’ plan is the highest at Rs. 6162 and also the maximum cover that can be offered under this plan is restricted to Rs. 49 Lakhs. IndiaFirst Life Insurance is a joint venture between PSU Banks – Bank of Baroda and Andhra Bank and the third partner is ‘Legal & General’ of UK.

Conclusion
Thus we can see that people like Ganesh can avail an insurance cover of Rs. 50 lakhs for a small premium of Rs. 4500 – Rs. 5500 per annum to protect their families from any uncertain events. An annual premium of Rs. 4800 amounts to Rs. 400 per month or less than Rs. 15 per day which people spend on having 2-3 cups of tea everyday. Yes insurance cover of Rs. 50 lakhs is cheap as the amount that you spend on tea everyday. So are you willing to spend that amount to protect your family against any unexpected event that may happen to you???? Well think about it!!!

For any comments on the above article please comment in the below comments section or write to us at gopal_gidwani@yahoo.com

{ 58 comments… read them below or add one }

Govind June 21, 2011 at 7:39 am

Hi,

Can I take more then one term plan from multiple insaurance company i.e. one from LIC and another from Aviva?

If Yes then “will there be any problem when taking claim. I mean will insaurance company require origional death certificate or zerox is ok”?

Thanks,
Govind

Reply

Gopal Gidwani June 21, 2011 at 12:47 pm

Hello Govind,

You can take multiple insurance policies from multiple companies. With regards to submission of death certificates at the time of claim, well in that case you can purchase multiple original copies of death certificate from the Municipal Corporation Office. They issue multiple original copies for a nominal fee.

Reply

Vaibhav June 21, 2011 at 2:14 pm

Hi Gopal,
Greeting of the day.
Well by various insurance agents this notion has been created that the claim settlement ratio which you have mentioned is for all insurance plans (example ICICI it is 90.17) offered by a company..actually their claim settlement ratio for online term plan is much much less.so please let us know how far this holds true???

Reply

Gopal Gidwani June 21, 2011 at 6:00 pm

Hello Vaibhav,

The ratios given in the article have been taken from the IRDA Website. I guess they are the average of all the products of an particular life insurance company. IRDA does not give the break up the claim settlement ratio of different plans of a particular company. So I cannot comment on whether the claim settlement ratio for online term plans is low or average or high

Reply

Govind June 22, 2011 at 3:04 pm

Thanks Gopal for your reply

I am bit confuse , from which Insaurance company to take term plan i.e. LIC or any other(AVIVA,KOTAK etc). There is a huge premium difference in LIC and others. considering LIC because the claim satellment percentage of LIC is much higher then others however the bed poing is Premium too high
LIC : For 25 Lakhs, 30 Years Term- 9690 Yearly
AVIVA:For 25 Lakhs, 30 Years Term- 3609 Yearly
KOTAK:For 25 Lakhs, 30 Years Term- 4274 Yearly

Please suggest which one to choose and why?

Reply

Govind June 28, 2011 at 6:16 am

Hi Gopal,

I hope all well at your end. just wondring haven’t got any reply from you of post be me on 22 June 2011.

I am greatfull to you, if you can put your suggestions

Thanks,
Govind

Reply

Gopal Gidwani June 28, 2011 at 7:04 am

Hi Govind,
Apologies for the late reply. In case you wish to stick to PSU insurers you can split your insurance cover between 2 insurers. For half the amount you can go with LIC (Jeevan Amulya Plan) and for the remaining half amount you can go with IndiaFirst Life Insurance (joint venture between Bank of Baroda, Andhra Bank and Legal & General (26% stake) of UK). IndiaFirst has a online term plan by the name of ‘AnyTime’ Plan. Their rates are very competitive and reasonable as compared to private insurers. Among private insurers you can consider ‘iProtect’ from ICICI Prudential. The claim settlement ratio of ICICI Prudential for 2009-10 is 91% which is 3rd best in the industry after LIC and HDFC Standard.

Reply

Govind June 29, 2011 at 11:06 am

Thanks Gopal for reply and suggestion

Reply

Vishal Khanna July 12, 2011 at 4:32 pm

Hi Gopal

I am 38 years old looking for term plan of around Rs 70 Lacs for a tenor of 20 years.
I am sole earning member of the family and working in a private bank and drawing salary of around Rs 12 Lacs P.A.

I have zeroed on the below mention options :-

1. Aviva I-Life for around Rs 60 Lacs for a tenor of 20 years and LIC plan for 10 Lacs for a tenor of 20 years.
2. Aviva I-Life for around Rs 60 Lacs for a tenor of 20 years and Kotak E-Term plan for 10 Lacs for a tenor of 20 years.

Logic behind choosing 2 Insurance company is that if one insurer settles a claim and other rejects we can very well put pressure on the other company that with the same terms and conditions one insurer has settled. Also if required I can reduce my Insurance amount.

I was reading some article that if you disclose the facts, insurance company cannot reject claims. Please also through some light on section 45 of Insurance Act (how practically it works).

Please advice if the same is ok, the main objective to taking Insurance is claim settlement in case need.

Best regards

Vishal Khanna
88606-35638

Reply

Gopal Gidwani July 13, 2011 at 10:28 am

Hello Mr. Vishal,

Instead of Aviva i-Life I will suggest that you go for IndiaFirst Life Insurance Online Term Plan (Anytime Plan).

With regards to Section 45 of the Insurance Act: The Act mentions that a life insurance company cannot question a policy after 2 years of it being in operation on the grounds that the life insured did not disclose some information / facts. It is the duty of the life insurance company to ask for all the details whatever they require within the 2 years and they cannot dispute the claim after 2 years of the policy being in operation.

Even if the insurance company chooses to reject the claim; the onus is on the insurance company to prove that some material fact was knowingly supressed by the life insured with fraudulent intentions and that fact was material to be disclosed in the process of issuing the policy.

With regards to knowing your insurance amount you can write to me at gopal_gidwani@yahoo.com with your requirement and I will calculate it and get back to you.

Reply

bajirao jadhav July 25, 2011 at 10:26 am

dear sir,
thanks for your greatful information regarding all type of insurence plans, investment plans etc..

for todays world it’s very useful information everyone.
because people want to do this but they couldn’t choice perfect way.

i read your all articals , i was very impressed.

thanks again.

BAJIRAO JADHAV

Reply

Gopal Gidwani July 25, 2011 at 6:23 pm

Hello Bajirao,
Thanks a lot for your kind words. It was nice to know that the website articles were helpful to you.

Reply

Ramesh Patel July 28, 2011 at 2:26 pm

I am 31 year old looking for Term insurance plan of Rs.1 crore, I am confused which company should is select due to huge premuim difference.
Aviva I life for 30 years offer on Rs. 8556/year whereas ICICI offers Rs 11357.

Pls suggest.

Regards

Ramesh Patel

Reply

Gopal Gidwani July 30, 2011 at 3:53 pm

Hello Ramesh,
Rather than going for a cover of 1 crore with one company, you can spread your risk among 2 companies: ICICI and Aviva with 50 Lakhs cover from each. This will also help at the time of claim. If one company does not settle the claim, you can use the other company settling the claim to ask the 1st company to settle the claim.

Reply

Gopal Gidwani February 8, 2012 at 5:54 am

Hi Friends,

Now we have an article on the comparison of claim settlement ratio of life insurance companies for 2009-10 and 2010-11. You can read about it at

http://www.bachatkhata.com/2012/02/claim-settlement-ratio-for-life-insurance-companies-for-2010-11.html

The article also has a comparison of the features of various term plans being offered by life insurance companies and the premiums being charged for these term plans.

Best Regards
Gopal Gidwani

Reply

bajirao jadhav February 8, 2012 at 8:18 am

dear sir,
good morning.
i read the artical of ganesh. really today more people have same condition like ganesh.
i have plan to go for on-line term insurance. today i am 36 years old. i have 1 son ( 11 yrs old) and 1 daughter ( 6 yrs old) .
please can you suggest me which on line term insurance is good and how to contact that company on line.
please suggest me.
and again thanks for your suggestion.

Bajirao jadhav

Reply

Gopal Gidwani February 8, 2012 at 9:11 am

Hello Mr. Bajirao,
If you want to go for a plain vanilla pure term plan, then go for click2protect plan from HDFC Life. If you looking for riders and annual increase in sum assured along with your term cover, then go for Protector Plus Plan from Birla SunLife or ePreferred Term Plan from Kotak Life. You can read more about the comparison of these term plans at the following link
http://www.bachatkhata.com/2012/02/claim-settlement-ratio-for-life-insurance-companies-for-2010-11.html

Reply

bajirao jadhav February 14, 2012 at 4:51 am

Dear sir,
thanks for your reply.

Reply

ishwar avhad February 12, 2012 at 5:09 pm

hello sir, i am ishwar avhad aged 30 years working in govt. sector earning 35000 per month looking for 1 cr.term insurance. my first question is whether i am eligible? 2. which company is better one becz. i am totally confused because it is said that prvt company creates lot of problems. 3 can one take online term term insurance if one dosent hav credit card or not comfortable with net banking?which one is better one betn on line insurance & insurance from agent.please guide me

Reply

Gopal Gidwani February 13, 2012 at 1:14 pm

Hello Mr. Ishwar,
1) You are eligible for a term plan. There is nothing that stops Government sector employees from buying insurance.
2) As long as a person who wants to buy insurance submits all correct information honestly at the time of application, the insurance company (private or LIC) will not create any problem at the time of claim settlement.
3) For online term plans the only way to pay premium is through credit card / debit card or net banking. So I am afraid if you don’t have a credit card or not comfortable with net banking, then you will not be able to buy an online term plan.
4) Online term plans are cheaper then offline term plans as the cost is less as the expenses of the insurance company in online term plans are lesser than offline term plans.

You can consider Click2Protect from HDFCLife or Protector Plus from Birla Sunlife or ePreferred Term Plan from Kotak Life

Reply

abhi February 22, 2012 at 9:06 am

im 44 and im planin to buy a hdfc online term plan..iv not had any health problems as such..the application form has some serious questions related to any heart conditions etc etc…as far as i know i dont have any major health risk…but then i hav not had a medical check up so i dont know the exact conditions..so in tht case how do i answer these questions..???as far as i think i am required to write wat i know or am aware of right???
and suppose the company comes to know later tht i had any complication while taking the policy but it was not in my form as i did not know it,will this complicate things???

do i have to let the company know if i get any habits after i take the plan??

Reply

Gopal Gidwani February 23, 2012 at 7:59 am

Hello Abhi,

While answering questions in the application form, mention what you know and what you are aware of. Mention all facts honestly and don’t hide anything that you are aware of. Don’t worry about things that you don’t know. HDFC Life will ask you to go for a health check-up and the medical report will take care of things that you don’t know.

The company cannot hold you liable for things that you don’t know.

In life insurance in case of lot of policies the duty of disclosure is upto the time the policy issued. Any habits / medical conditions that develop after the policy is issued need not be informed to the company, until unless the company specifically asks for it.

Reply

Abhi February 23, 2012 at 6:22 pm

GOPAL
in case of medical tests i understand..but what if the company doesnt ask u for a test as in case of iCare and gives me a 40L cover just on basis of my knowledge…can such plans sustain and can a customer like me believe that they wil settle my claim w/o knowing my medical condition at time of taking the policy…Im 48 and icare is my second option…SHOULD I TRUST IT GIVEN THEY ARE ABIDED BY THE CONTRACT or donot consider taking icare…i dont understand the psyche behind such a “no medical plan”
PLS help…and i appreciate your prompt reply gopal

Reply

Gopal Gidwani March 6, 2012 at 7:08 am

Hello Abhi,
If the company is not asking for a medical test, just mention all possible details in the applicable form. The company cant hold you responsible for something that is going on in your body and you are not aware of it. If at the time of claim the company rejects the claim for non-disclosure of any information then the onus lies on the insurance company to prove that point for rejecting the claim.
Also as per Section 45 (Indisputability Clause) of the Insurance Act after 2 years the company cannot reject your claim on the basis of some information that they did not ask for or they did not validate (by not asking you to go for a medical check-up). As per Section 45 after 2 years they can reject the claim on the grounds of fraud or fraudulent activity from your end. The onus of proving that also lies on the insurance company.

So from your side you should make sure you disclose all information that you are aware of at the time of making the application. Don’t worry about what you dont know.

Reply

Tejas March 5, 2012 at 10:43 am

Dear Gopal,

Thanks for this insigthful information.

Please suggest a online term plan for male-28 yrs-non smoking-mumbai.
Also how the entire process and what are the documents required. ?
I have heard their is lot of issues in support for after sales of online policy
Please advise.

Reply

Gopal Gidwani March 6, 2012 at 9:53 am

Hello Tejas,

You can go for Click2Protect plan from HDFC Life.

Documents required include:
1) Photograph
2) Photo ID Proof
3) Address Proof
4) Income Proof

I am not sure what particular after sales issues you are talking about. If you can elaborate then I can explain. Generally there are some small-small issues at times. But these can be sorted out by talking to customer care.

Reply

abhi March 6, 2012 at 9:56 pm

i wanted to buy hdfc click to protect but it does not cover me till 65..(im 48 now and it offers a term of 15 yrs to me..ie till 63 yrs..)..So i zeroed down icici as it too has a high settlement ratio as hdfc..but icici icare does not have medicals..i will provide all details as far as my health is concerned to the best of my knowledge but the company people say tht i will have to intimate them in case i have any health complications or get any adverse habits after taking the policy..so tht there would be no problems in claim settlement if a claim arises..im ok with that but dont understand how tht information will help the company as my policy is already ON and even if i have any health risk after taking the policy,the company will have to pay if a claim arises so why ask for intimations after the policy is in force…??

this is the practise with KOTAK also..would u explain the logic behind it..im thinking of finalising icici icare soon..what do u suggest

Reply

Gopal Gidwani March 7, 2012 at 11:42 am

Hello Abhi,
Normally people buy term insurance to protect their future income. People buy term insurance till retirement which is normally at the age of 60 years. In that case HDFC fits your requirement. Once the income stops after retirement, a person does not need term insurance.

But if you are looking for term insurance beyond 60 years then you can go for ICICI Pru. I am not very clear on the logic behind informing the company if anything happens after buying a policy. You have rightly pointed out that once the policy is bought and something happens after that, the company still has to pay the claim.

Reply

Tejas March 7, 2012 at 6:58 am

HI Gopal thanks for reply.

Out of available online term plan for male-28 yrs-non smoking, Agon religare has less premiun with till 75 year of age protection with some rider also i can avail. Other like hdfc,icici are charging more premium.

what is your suggestion on out of available options considering overall parameter like claim settelement ration,after sales service, etxc;
-AGON Religare.
-ICICI Pru.
-HDFC Life.

Thanks in advance for you insightful reply.

Reply

Gopal Gidwani March 7, 2012 at 11:46 am

Hello Tejas,
I agree that Aegon Religare is charging very low premium for iTerm. But if you look at HDFC Click2Protect Plan the premiums are very competitive. But HDFC has the 2nd best claim settlement ratio in the life insurance industry after LIC. The claim settlement ratio is a very important consideration at the time of buying life insurance. The claim settlement ratio of Aegon Religare is low. So I will suggest you to go for HDFC even though the premium is little higher than Aegon Religare and ICICI Pru. Also you need future income protection till your retirement (age 60 years). Why will you need term insurance post retirement till the age of 75 years?

Reply

tejas March 9, 2012 at 5:49 am

Hi gopal, thanks for reply

What is your advice on including rider in term plan like accidental death benefit,critical illnesss etc.

Shoult it be part of term plan or need to take some other policy for rider. ?

kindly advice

Reply

Gopal Gidwani March 10, 2012 at 11:11 am

Hello Tejas,
HDFC is not offering any riders with Click2Protect Plan. In case you are looking for Accidental Death Benefit Rider and Critical Illness Rider along with the term plan then have a look at Protector Plus Plan from Birla Sunlife. The claim settlement ratio of Birla Sunlife is 94.66% and their premiums are also very competitive. If you are looking for a plain vanilla term plan without any riders then you can go for Click2Protect Plan from HDFC Life.

Reply

tejas July 31, 2012 at 11:00 am

Hi gopal,

Thanks for info.

what is your suggestion for non smoker 29 in Mumbai, to go for plain vanilla term plan only add rider like Accidental death and disability ?

also suggest the plan for opt our of available based on your suggestion.

Thanks in advance

ashish bagde April 7, 2012 at 8:25 am

Hi Gopal,

This is regarding HDFC Life Click 2 Protect online plan. I had applied for the same on January 14, 2012 and paid the Premium Amount of 6397. They also got done my medical checkup. But on January 31, 2012 I got a mail that my policy is in withdraw state & the refund has been transferred to my account on 23/03/2012. I have tried their customer care number and registered a complaint that why my amount has been refunded any why policy has not been issued. I have got a response from their customer care people that I did provide the information of my Family Doctor. To Inform you about the same I got a mail from them for Family Doctor information on 14th Mar’ 2012 and provided detail of Family Doctor on 17th Mar’ 2012 on which they reverted that they have sent these detail to the concerned deptt.

Please advice what should I do now. Firstly HDFC Life did not issue This Term Policy to me in this 2.5 half month even after such a long time period and now they refunded my amount. Please advice what should I do now as I feel any insurance company can’t deny giving insurance to customer without giving any specific reason. What are the guideline of IRDA and their website address as I am unable to get IRDA information on website.

Waiting for your reply.

Reply

Ashish Bagde April 7, 2012 at 8:30 am

Hi Gopal,

This is regarding HDFC Life Click 2 Protect online plan. I had applied for the same on January 14, 2012 and paid the Premium Amount of 6397. They also got done my medical checkup. But on January 31, 2012 I got a mail that my policy is in withdraw state & the refund has been transferred to my account on 23/03/2012. I have tried their customer care number and registered a complaint that why my amount has been refunded any why policy has not been issued. I have got a response from their customer care people that I did provide the information of my Family Doctor. To Inform you about the same I got a mail from them for Family Doctor information on 14th Mar’ 2012 and provided detail of Family Doctor on 17th Mar’ 2012 on which they reverted that they have sent these detail to the concerned deptt.

Please advice what should I do now. Firstly HDFC Life did not issue This Term Policy to me in this 2.5 half month even after such a long time period and now they refunded my amount. Please advice what should I do now as I feel any insurance company can’t deny giving insurance to customer without giving any specific reason. What are the guideline of IRDA and their website address as I am unable to get IRDA information on website.

Now they are not responding on my email. I have forwarded requested on onlinequery@hdfclife.com and services@hdfclife.com ( which is their complaint email ID) as per customer care people and even not calling me for my complaints its me who is doing follow up with them for the issue resolution.

Waiting for your reply in hope you would provide right direction.

Reply

Gopal Gidwani April 7, 2012 at 9:49 am

Hello Ashish,
It is very unfortunate what has happened between you and HDFC Life. With regards to your query on how to reach IRDA; you can reach IRDA through their call centre by dialing ‘155255’ (toll free number) or sending e-mail at complaints@irda.gov.in
You can also reach IRDA at the following link http://www.igms.irda.gov.in through the Integrated Grievances Management System (IGMS).

Alternately you can also reach the Insurance Ombudsman through the following link on the IRDA website
http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo234&mid=7.2

I have posted an article on Insurance Grievance Redressal
http://www.bachatkhata.com/2012/04/grievance-rederessal-procedure-in-life-insurance.html
I hope it helps you

Reply

Ashish Bagde April 7, 2012 at 8:58 am

Hi Gopal,

Sorry for the earlier mail. Forgot to mention cleary on that mail.

Hi Rahul,

This is regarding HDFC Life Click 2 Protect online plan Application Number – S000000505602 and Proposal No. 14850129. I had applied for this policy through Policy Bazaar on January 14, 2012 and paid the Premium Amount of 6397. They also got done my medical checkup. But on Mar 31, 2012 I got a mail that my policy is in withdraw state & the refund has been transferred to my account on 23/03/2012. I have tried their customer care number and registered a complaint that why my amount has been refunded and why policy has not been issued. I have got a response from their customer care people that I did not provide the information of my Family Doctor. To Inform you about the same I got a mail from them for Family Doctor information on 14th Mar’ 2012 and provided detail of Family Doctor on 17th Mar’ 2012 on which they reverted that they have sent these detail to the concerned Deptt.
Please advice what should I do now. Firstly HDFC Life did not issue This Term Policy to me in this 2.5 half month even after such a long time period and now they refunded my amount. Please advice what should I do now as I feel any insurance company can’t deny giving insurance to customer without giving any specific reason. What are the guideline of IRDA and their website address as I am unable to get IRDA information on website. Waiting for your reply in hope you would do the needful and resolve the issue.

Reply

Faez August 23, 2012 at 1:22 pm

Guruji,
Your efforts on this page are really appreciated.
I am 33 yr old NRI working in KSA, wishing to go for a protector plan not less than 2 crores. Which plan from which company would you suggest me. Besides,
– is there a plan which gives me survival benefit?
– can I extend the plan to another 5-10 yrs after a specific period?
– Am i supposed to pay premium for the complete covered period or 10 consecutive years for that specific policy?
Your reply will be highly appreciated.
Thanks and best regards,
Faez

Reply

Gopal Gidwani August 24, 2012 at 8:21 am

Hello Faez,
I will suggest you take a look at HDFC Life Click2Protect online term plan.

There are plans that will give you survival benefit on maturity. But they will come at a higher cost compared to plain vanila term plans that don’t offer any survival benefit. I will suggest you go for a plain vanilla term plan and for returns you invest in other avenues like equity mutual funds or debt products.

You can choose a specified plan tenure of say 30 years. You can pay the premium annually. After say 20 years if you don’t wish to continue with the plan, you can stop paying the premium and the plan will lapse. But exercise that option after giving it proper thought. It is essential to have life insurance till retirement. If a person has liabilities post retirement also then life insurance will be required post retirement also so that the burden of liability repayment does not fall on dependents

Reply

Suresh Babu September 25, 2012 at 5:15 am

Dear Gopal ji

At present I am working for a private sector company in Mumbai with a per annum salary of Rs. 10,00,000/- and currently i have sbi smart shield term plan for Rs. 10,00,000/- and planning to take one more Term Plan for Rs. 50,00,000/- with HDFC or Aviva, but after 3 years I will go back to my native place and do cultivation, is this ok for Insurance companies if claim happens after 5 or more years.

Reply

Gopal Gidwani October 3, 2012 at 4:13 pm

Hello Suresh,
It is better to keep the insurance company informed at the time of taking the policy that after 3 years you will be shifting to some other place. If the insurance company has any concerns they will raise it before issuing the policy so that there are no issues later on.

Reply

Muddassir December 14, 2012 at 1:39 pm

Hi Gopal,

I am reading your site from past few days and its really awsome. You have made the decisions very clear where the prople have doubts…

I am planning to take online Pure term plan of Rupees 50 Lakhs with an Accidental rider of 50L ontop of it.
I am planning to take below
1. HDFC Click to Protect – 50Lakhs (No Rider is mentioned)
2. Aegon Religare OR BhartiAXA – 50 Lakhs cover with Accidental Rider

I have a doubt with the permanant Disability.. Which Online Term insurance plan give this as an additional Rider..
Please suggest your Priorities before I final my decision.

Thanks again for your Guidance..

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madhu December 17, 2012 at 8:50 am

Hi Experts, i am glad to see the postings and confidently i can ask a few questions. I am 33 yrs with a daughter working abroad ( NRI) since 7 years. I intend to take 2 term policies for 50 L each from Kotak or HDFC and TATA AIA. As i am working abroad, i can disclose this info while taking policy itself. I dont mind undergong medical but not sure for 50 L if they do medicals. When i visit India, i intend to take the policies online. Or, can i take it online from where i am presently working. Any reviews on TATA AIA, i havent heard but what are your views.

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Gopal Gidwani December 18, 2012 at 6:07 pm

Hello Madhu,
If a medical check-up is required then you will have to take the policy on your India visit. ‘Click2Protect’ from HDFC Life and ‘ePreferred Term Plan’ from Kotak Life are good plans among online term plans. I don’t much any idea on term plans that are offered by Tata AIA

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KP March 13, 2013 at 9:38 am

Hello Mr.Gopal,

I have opted for HDFC Click2 Protect Plan of Rs. 50 lacs taken 2 years back. I am having a IDBI Federal Insurance offline policy of Rs. 30 lacs for which i am paying premium of around Rs. 7,000/-. I would like to discontinue the IDBI Federal Term Plan and opt for another 50 lacs cover taking my total cover to Rs. 100 lacs.

Should i discontinue both the covers and take an entire new 100 lacs policy or it will be better to opt for another 50 lacs cover from a new Insurance COmpany.

I enquired with HDFC for updation from 50 lacs to 100 lacs but they said its not possible to term insurance increase risk cover once taken.

Can you suggest what would be a good option and which companies i can look for?

Thanks,

KP

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Gopal Gidwani April 14, 2013 at 6:54 am

Hello KP,

HDFC is correct in saying that the existing cover cannot be enhanced once it is taken. Some companies allow enhancing existing cover under certain plans but that option has to be chosen at the time of taking the policy.

You may close the IDBI Federal Policy and not the existing HDFC Life Policy. You may go for an additional cover of Rs. 50 Lakhs from Kotak Life (ePreferred term plan) or Birla Sun Life (Protector Plus plan). I suggest you first take the new policy and then close the existing policy.

Also make a mention of your existing policies at the time of taking the new policy. This is very important. If you don’t do that the consequences can be bad including rejection of claim.

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Sandip Desale April 1, 2013 at 9:11 am

Hi Gopal,

thanks for such gr8 information. I am a 32yrs and willing to take a term plan of about 1.5Crore with 30-40yrs term.
I went through different online options and planning to consider Tata AIA and ICIC online term plans for 50-50 % sum assured. Also I would like to consider SBI LIfe.
Please suggest me which one will be better option to opt.
Regards,
Sandip desale

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Gopal Gidwani April 14, 2013 at 6:05 am

Hello Sandeep,
I suggest you have a look at Click2Protect from HDFC Life and ePreferred Term Plan from Kotak Life.

With regards to your tenure of 30-40 years, in case of most companies the maximum tenure is of upto 30 years. Some offer it for 35 years while iTerm from Aegon Religare offers the maximum tenure of upto 57 years. You may read the below post for more information on plans term plans offered by companies and their comparison.

http://www.bachatkhata.com/2013/01/claim-settlement-ratio-for-life-insurance-companies-for-2011-12.html

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Pradeep Muley April 4, 2013 at 6:19 pm

Can I later enhance Insurance Cover amount after once it is purchased?
I am having Rs. 30,00,000 Cover of Kotak L epreffered, I intend to enhance it upto Rs. 50,00,000.

Does Insurance premium amount remain same overall tenure, as it is at starting time ?

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Gopal Gidwani April 14, 2013 at 5:58 am

Hello Pradeep,

Kotak ePreferred has options like Level cover, Cover Step-up option and Cover Step-Down option.

So if you want to enhance your cover you need to select the “Cover Step-up option”. But this option has to be selected at the time of taking the policy. Please check your policy document. If you have not selected this option at the time of taking the policy, then I am afraid you cannot enhance your cover with the existing policy.

The solution for that will be to take a new policy with the additional cover amount.

While Kotak ePreferred has this option of enhancing the cover, not all companies give this option. Few other companies that give this option include SBI Life (Smart Shield Plan), Birla Sun Life (Protector Plus Plan) etc.

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ashish dutt April 14, 2013 at 7:15 pm

what will be the approximate rate of returns in case of online insurance,like Aegon Religare iterm or indiafirst or metlife , and is there a chance of one getting less than what he invested in case of marked lined policies?

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Gopal Gidwani June 16, 2013 at 10:47 am

Hello Ashish,

There are no returns in online term plans

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Hari Om July 4, 2013 at 3:30 am

Hi Sir
Thankx for interact with us & sharing such a impressive knowledge.
I’m 24 male, Single, package 2 lack p.a.
I’m so serious abat future plans.
I want to buy term insurance plan, which plan suites to me including tenure and coverage amount???
should I go towards riders????
Suggest me
Hari Om
New Delhi

Reply

Gopal Gidwani February 4, 2014 at 6:42 pm

Hello Hari Om,
I would suggest you go for Click2Protect from HDFC Life

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ravi kumar jain December 27, 2013 at 2:52 am

I wish to purchase a term plan SA 5000000 term 20.my DOB 01/01/1965.Annual Income 700000.please suggestbetweenBSLI easy protect &fafa ATA suprem.
who is good

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amit January 19, 2014 at 6:27 pm

i am planning to buy 50 lakh term insurance plan with accidental rider . i had shortlisted few plan as mentioned below
1. I Care
2. HDFC Click 2 Project
3. Aegon Religare-I term
4. Aviva I life

pL suggest me which is the better plan from

Reply

Gopal Gidwani February 4, 2014 at 6:09 pm

Hello Amit,
I would suggest you go for Click2Protect from HDFC Life. But this plan does not have any riders.
Instead you may consider going for a separate Personal Accident policy from a general insurance company

Reply

Gopal Gidwani August 14, 2012 at 11:25 am

Hello Tejas,
If you want to go for a plan without riders, I suggest you have a look at HDFC Click2Protect. If you want to go for a plan with riders then I suggest you have a look at Birla SunLife Protector Plus

Reply

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