Claim Settlement Ratio for Life Insurance Companies for 2011-12

by Gopal Gidwani on January 12, 2013 · 80 comments

in Financial Planning,Insurance,Others,Uncategorized

Claim Settlement Ratio for Life Insurance Companies for 2013-14
Click here to read about latest claim settlement ratio for 2013-14

For people looking to buy a term insurance plan, annual premium charged for the term plan and claim settlement ratio of the life insurance company are two very important considerations apart from other important considerations like their specific need, product features, customer service of the company etc.

In this article we have compared the claim settlement ratios of life insurance companies for the last 3 years along with the premiums charged by them for their term insurance plans. We also present a comparison of the features of various term insurance plans offered by different companies.

Claim Settlement Ratio (CSR): In very simple terms CSR refers to the number of claims that were settled by the insurance company out of every 100 claim requests it received in that particular year.

In the below table let us look at the comparison of claim settlement ratios for life insurance companies for the last 3 years (2009-10, 2010-11 and 2011-12) and the premiums charged by these companies for their term plans.

InsurerCSR for 2011-12CSR for 2010-11CSR for 2009-10Policy NamePremium
LIC97.4297.0396.54Amulya Jeevan15169
ICICI Prudential96.5394.6190.17iCare7303
HDFC Life96.1795.4191.14Click2Protect6067
SBI Life95.4882.2483.27Smart Shield8539
Kotak Life92.189.386.97ePreferred Term5843
Birla Sunlife90.9494.6689.09Protector Plus8202
Bajaj Allianz90.6188.6988.19iSecure6505
Max Life89.8477.9665.51Platinum Protect10281
ING Vysya88.8290.4989.3
Bharti AXA87.787.1777.8eProtect4607
Star Union86.1680.6958.33
Reliance Life84.5881.3689.07
TATA AIA83.9481.9378.17
Canara HSBC80.5871.0238.71
Future Generali68.0650.5238.85
IDBI Federal67.4664.9249.52
Aegon Religare66.0652.3148iTerm4607
DLF Pramerica24.4651.2240
Edelweiss Tokio100NANA
Private Total89.3486.0584.88
Industry Total96.2695.5895.24

Please note:
a) The claim settlement ratio data for respective years has been taken from the IRDA Annual Reports for respective years
b) The claim settlement ratio is overall for the company for all products taken together and not just for term plans. Separate claim settlement ratios only for term insurance plans are not available
c) All premiums amounts have been taken from the respective company websites
d) The premiums shown in the above table are for a 31 year old male (non-smoker) for a sum assured of Rs. 50 lakhs for a term of 20 years.
e) All the premium amounts mentioned are inclusive of service tax
f) All premium amounts are as on January 2013. Interested buyers are requested to recheck these quotes with respective insurance companies before purchasing a term plan. These rates may not be fixed and are subject to change.

Last but not the least; we are not representing any particular insurance company.

There are lot of other people who are caught between low premium and high claim settlement ratio and are unable to decide whom should they give preference over the other. We try to help you strike a balance between the two.

Insurance companies offering term plans can be divided into three categories:
a) High Claim Settlement Ratio (CSR) with High Premium: In this category we have LIC that has the highest claim settlement ratio for 2011-12 of 97.42%. This in very simple terms means for every 100 claims that LIC received in the year 2011-12 it settled 97.42 claims. This is indeed a great achievement and kudos to LIC for doing it. Now that does not mean the remaining 2.58 claims (100 – 97.42) were rejected. Some may be still in process whereas some may have been rejected with reasons. LIC also had the highest claim settlement ratio for the year 2010-11 and 2009-10.

But the premium charged by LIC for its term plan Amulya Jeevan (Rs. 15,169) is also the highest among premiums charged by other insurance companies for their term plans. This premium amount is more than 3 times the premium charged by some other insurance companies for their term plans. Hence LIC falls in the high claim settlement ratio (CSR) with high premium category.

b) Lower Claim Settlement Ratio (CSR) with Low Premium: In this category we have companies like Aegon Religare (iTerm – Rs. 4607), Bharti Axa (eProtect – Rs. 4607) and Aviva (iLife – Rs. 4707) that offer term plans at the lowest possible prices as compared to many other life insurance companies. But the claim settlement ratio of these companies: Aegon Religare (CSR – 66.06%), Bharti Axa (CSR – 87.7%, Aviva (CSR – 89.55%) is lower than some other companies in the same segment. These three companies have improved their CSR in the last 3 years, but they still have some catching up to do as compared to higher CSR of some other companies.

c) High Claim Settlement Ratio (CSR) with Low Premium: This ideal combination of high CSR with low premium is what most people look for while buying term plans. The companies in this category try to strike a good balance between high CSR and low premium. In this category we have companies like:

a) ICICI Prudential (CSR – 96.53%) that offers iCare (Rs. 7303)
b) HDFC Life (CSR – 96.17%) that offers Click2Protect (Rs. 6067)
c) SBI Life (CSR – 95.48%) that offers Smart Shield (Rs. 8539)
d) Kotak Life (CSR – 92.1%) that offers ePreferred Term (Rs. 5843)
e) Birla Sunlife (CSR – 90.94%) that offers Protector Plus (Rs. 8202)

With high CSR and competitive premiums and other product features, an individual will have compelling reasons to buy term insurance from these companies. Since there is not much difference between CSR and premiums of these companies, the product features and customer service of the company can be a key differentiator. We will discuss the features of products offered by these companies later in the article. In this category before zeroing on the final plan the individual should look at his need and check the features of plans offered and accordingly take a decision.

We will put all other companies that don’t fall in any of the above three categories into the fourth category.

Now let us compare the features of the term plans offered by insurance companies. In the table given below we have tried to summarise the features of various term plans offered by various insurance companies.


InsurerPolicy NamePolicy TenureMaximum age at Policy ExpiryMinimum Sum AssuredMaximum Sum AssuredRider Options
LICAmulya Jeevan5 – 35 years70 years25 lakhsNo upper limitNA
ICICI PrudentialiCare5 – 30 years75 years10 lakhsBased on age slabNA
HDFC LifeClick2Protect10 – 30 years65 years10 lakhs10 croresNA
SBI LifeSmart Shield5 – 30 years70 years25 lakhsNo upper limitADB Rider, Accidental Total & Permanent Disability Benefit Rider, Accelerated CI Benefit
Kotak LifeePreferred Term5 – 30 years70 years25 lakhsSubject to underwritingNA
Birla SunlifeProtector Plus5 – 30 years75 years50 lakhsSubject to underwritingSurgical care, Hospital care, WOP, Accidental death and disability, CI
Bajaj AllianziSecure10 – 30 years70 years20 lakhsNo upper limitComprehensive Accidental Protection Benefit, CI Benefit, Hospital Cash Benefit
Max LifePlatinum Protect10 – 30 years75 years25 lakhsNo upper limitPersonal Accident Benefit, Dread Disease
AvivaiLife10 – 35 years70 years25 lakhsNA
Bharti AXAeProtect10 – 30 years75 years25 lakhsNA
Aegon ReligareiTerm5 – 57 years75 years10 lakhsSubject to UnderwritingADB, WOP on Critical Illness, Women CI Rider

Now let us look at each of these policies in details.

LIC – Amulya Jeevan: The minimum tenure of this plan is 5 years and the maximum tenure is 35 years. The minimum sum assured offered under this plan is Rs. 25 Lakhs. There is no upper cap on the sum assured. There are no riders available with this plan. There are no variants in this plan.

Though LIC has maintained the highest claim settlement ratio in the last 3 years, the premium charged by LIC for Amulya Jeevan is also the highest among premiums charged by insurance companies for term plans.

Our Take: People for whom the claim settlement ratio is more important than anything else and for whom a plain vanilla term insurance plan is the requirement, may go for this plan.

ICICI Prudential, HDFC Life, SBI Life, Kotak Life and Birla Sunlife
As we have seen above, these 5 companies offer a good combination of higher claim settlement ratio with lower premiums. There is less to differentiate at the CSR level and the premium level, but the features of the product / plan offered can be a key differentiator. Let us have a look at the features of products offered by these companies.

ICICI Prudential – iCare: The minimum tenure of this plan is 5 years and the maximum tenure is 30 years. The minimum sum assured is 10 lakhs and the maximum sum assured is based on the age slab the life insured person falls in. There are no riders offered with this plan.

This plan comes in 2 variants: Basic plan without ADB and another variant with Accident Death Benefit (ADB).

HDFC Life – Click2Protect: The minimum tenure of this plan is 10 years and maximum tenure is 30 years. The minimum sum assured is 10 lakhs and the maximum sum assured is 10 crores. There are no riders offered with this plan. There are no variants offered under this plan

SBI Life – Smart Shield: The minimum tenure of this plan is 5 years and the maximum tenure is 30 years. The minimum sum assured is 25 lakhs and there is no cap on the maximum sum assured. The plan comes with choice of 3 riders: Accidental Death Benefit Rider, Accidental Total & Permanent Disability Benefit Rider and Accelerated Critical Illness Benefit. The plan comes in 3 variants: Level Term Assurance, Increasing Term Assurance and Decreasing Term Assurance.

Kotak Life – ePreferred: The minimum tenure of this plan is 5 years and the maximum tenure is 30 years. The minimum sum assured is 25 lakhs and the maximum sum assured is subject to underwriting. The plan comes in 3 variants: Level cover, Cover Step-up option and Cover Step-Down option.

Birla Sunlife – Protector Plus: The minimum tenure of this plan is 5 years and the maximum tenure is 30 years. The minimum sum assured is 50 lakhs and the maximum sum assured is subject to underwriting. The plan comes with a choice of 5 riders: Surgical Care, Hospital Care, Waiver of Premium (WOP), Accidental Death and Disability, Critical Illness (CI). The plan comes in 3 variants: Level Sum and 5% and 10% Increasing Sum Assured.

Our take on the above 5 plans: Well, all 5 plans are worth considering.
a) For some who is looking for a pure plain vanilla term plan with no riders, no variants then ‘Click2Protect’ from HDFC Life fits the requirement and is a good choice.
b) The features of iCare from ICICI Prudential are similar to features of Click2Protect from HDFC Life, but iCare (Rs. 7303) comes at a higher cost compared to Click2Protect (Rs. 6067).
c) Smart Shield from SBI Life offers good choice of riders and good choice of variants. SBI Life has improved its CSR a lot from 82.24% last year to 95.48% this year. But the premium of Rs. 8539 is the highest among the above mentioned 5 plans.
d) At a premium of Rs. 5843, ePreferred from Kotak Life is the cheapest term plan among the above mentioned 5 plans. For someone who is looking for a level cover or Step-up Option to increase insurance cover at certain important stages in life like marriage, purchase of house, child birth, 1st, 3rd and 5th policy anniversary etc. ePreferred from Kotak Life fits the requirement and is a good choice.
e) Protector Plus from Birla Sunlife offers the best choice of 5 riders and comes in 3 variants in comparison to the other 4 plans mentioned above. For someone who looking for a combination of good CSR with good choice of riders and variants for options to increase cover it is a close call between SBI Life Smart Shield and Birla Sunlife Protector Plus. SBI Life has a advantage of better CSR, whereas Birla Sunlife has advantage of more choice of riders and slightly lower premium.

Aegon Religare – iTerm: iTerm was the first online plan in the online term insurance product segment, introduced in 2009. iTerm from Aegon Religare forced other insurance companies to jump into the online insurance space and compete with iTerm by lowering premiums. So credit to iTerm for the lower premiums that we are paying today.

iTerm offers the longest tenure of 57 years. The minimum cover amount is Rs. 10 lakhs and the maximum is subject to underwriting. The plan offers choice of riders like Accidental Death Benefit (ADB) Rider, Waiver of Premium (WOP) on Critical Illness. The plan comes with built-in Terminal Illness Cover. 25% of the base sum assured is paid on diagnosis of any terminal illness and the base sum assured gets reduced accordingly. The premium of Rs. 4607 is one of the lowest in the industry.

Our Take: Well, the above mentioned interesting features like long tenure and the very low premium of Rs. 4607 are compelling reasons to buy the plan, the low CSR of 66.06% is a spoilsport. Aegon Religare has improved its CSR from 48% to the current 66.06% in the last 3 years. But with that improved CSR also Aegon Religare is in the bottom 5 of the CSR Table. If Aegon Religare improves it CSR to above 90%, the iTerm can surely compete very strongly with other term plans of insurance companies. But for the time being it is wait and watch mode on this one.

Some Important Tips:
a) The proposer / applicant at the time of purchasing a term insurance plan or any other insurance plan from any life insurance company should ensure they provide complete and correct information relating to all material facts. This will ensure that there are no problems at the time of claim settlement.
b) While selecting a term plan, it should be remembered that an insurance company might offer different variants of same plan. The premium amount for each variant of the plan will be different.
c) Insurance companies offer different riders along with term insurance plans. Each rider is charged for separately with some additional amount.

Hence with the above points in mind, one needs to be very clear of his/her requirement at the very beginning itself and accordingly examine the features and benefits being offered. Terms and conditions of the policy need to be carefully studied before agreeing to them.

And finally we sincerely hope your search for a term plan and the dilemma of striking a fine balance between high claim settlement ratio and lower premium gets resolved to a certain extent with this article. We would love to hear from you on this or any other query!!!

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{ 78 comments… read them below or add one }

Vishal Agrawal January 19, 2013 at 12:51 pm

Hi ,
You have given very useful information here and in another blog –
It is helping a lot to me and my friends to understand diffidence between various Term plans, I have some queries , it would be great if you help us to resolve –
1. HDFC and ICICI are having very good CSR, low price premium, but no Rider option it seems (icici is having only 1 rider option) which one is better, going for higher sum insurance amount or moderate sum insurance + rider ?
2. While taking Term plan I feel we should try to cover it for all kind of deaths, in which kind of death these companies dont give claim (like terrorist attack, ACT OF GOD ) please give some info about it .
3. Which all companies give rider options ?


Gopal Gidwani April 14, 2013 at 10:17 am

Hello Vishal,

1) You may go for higher sum insured without riders with Click2Protect from HDFC Life.
2) Noramlly Act of GOD is covered in term plans. Terrorist attack cover differ from company to company. You will have to get this clarified from the specific company for the specific plan you are looking to buy. Once you get an email clarification it is best to take a printout of that email and attach it with the original policy document.
3) Protector Plus from Birla Sunlife, Smart Shield from SBI Life have rider options to choose from


chandan February 22, 2013 at 3:50 pm

I am little confused about thee term plan, I have confusion in two term plans– Aviva i-life and hdfc click2protect. One gives low premium and long tenure and another gives more csr with high premium. So plz guide which is workable by getting salary of 15000 a month.


Gopal Gidwani April 14, 2013 at 7:21 am

Hello Chandan,

I will suggest you go with Click2Protect from HDFC Life


venkat March 16, 2013 at 5:00 am


I am really thankful to your unbiased analysis with facts and figures. I am in the verge of buying a term plan for myself and a health insurance plan for my entire family. Your article helped me to take a decision now with study of the select policy terms on their websites.

I want your advise on an ALTERNATIVE SOLUTION i am proposing to get the best of below three:-
1. Low premium
2. High claim settlement ratio
3. Add on features ( ADB, WoP, Critical Illness benefit, Terminal Illness Cover etc. )

Assuming that I am a 40 yrs old non smoker, need a cover of 60 – 100 Lakh for a period of 25 to 30 years. What happens if i buy two different plans instead of one by 50% of risk cover by each of the plan. For example, one plan with best of all features but low CSR ( Ex:Ageon Religare iTerm/ Bajaj Allianz iSecure) and relatively higher side of CSR and best features but slightly higher premiums ( Ex: SBI Life- smart shield/ Birla Sunlife- Protector plus). In this case one not required to have a separate Accidental cover plan. This strategy gives a back up if i happens to be one of the rejectedby one insurance company based on their hidden/ indirect micro terms& conditions of the policy.

I want your advise and analysis on this.
There are many people like me who are opting for Online policies have one question, who critical is to have no agent/ agency at the time in the event of Claim settlement as the policy holder would not be there to fight for the rights. What is the procedure and how IRDA helps the consumer as a regulatory body?



Gopal Gidwani April 14, 2013 at 6:20 am

Hello Venkat,
Spreading the risk among two insurance policies instead of one is a good strategy. I often advise that to readers on this blog. So you may go ahead with that strategy.

With regards to claim settlement, the procedure is mentioned in the policy kit. The nominee / beneficiary needs to submit the claim settlement form along with other documents to the insurance company. You make read the procedure and also make your beneficiary aware of it.

If there is a dispute between the company and the beneficiary, then the Government and IRDA have set-up various channels through which the grievance can be redressed. You may read the below article for more information on these channels:


Annapurna April 22, 2013 at 6:26 am

A very informative and useful article. We usually get lured by the attractive features and the projected returns made by the agents and seldom think of checking on the claim settlement ratio. It is indeed an important aspect to consider, for it is actually a measure of the probability that one’s dear and near ones would be able to easily claim the insurance amount if the policy holder was to die all of a sudden; which is the very reason why one buys an insurance policy!


KISHOR May 1, 2013 at 8:03 am

Hi Gopal,

I a little confused in HDFC, ICICI,LIC & SBI plan, I know there is much difference in Premium of LIC & other 3. I am looking for 75 Lakh insurance (my home loan is 40 lakh)
My specific question is which policy covers maximum deaths like accidental death, illness death due to major critical diseases like heart attach , cancer, high bp, kideny failure & few others?
Also we are considering only last 3 years claim settlement ratio. Which will be the better claim settlement ratios companies after 15-20 years (even we consider worst financial situation that time of those companies) ? what’s your guess?….Will be always good to go for LIC or SBI since they have touch of government?


Gopal Gidwani June 16, 2013 at 10:36 am

Hello Kishore,

All term life insurance plans cover death due to accident and death due to some critical illness. The difference is, if you opt for an Accidental Death Benefit Rider then if death happens due to an accident, the additional benefit of the rider will be paid over and above the normal sum assured. Similarly if a critical illness rider is bought then on detection of specified critical illness, the additional benefit of the rider will be paid for treatment.

You may consider the following plans: Click2Protect from HDFC Life, eShield from SBI Life, ePreferred Term from Kotak Life or Protector Plus from Birla SunLife. All these plans have good features with competitive premiums and the companies have a good claim settlement ratio. If you are more comfortable with Government companies then you may opt for eShield from SBI Life. Their premiums are very competitive and much lower the LIC’s Amulya Jeevan.

With regards to Claim Settlement Ratios 15-20 years down the line, well no one will be able to tell how the CSRs will be at that point of time!


Vishal May 17, 2013 at 6:06 am

I have taken iTerm from Aegon Religare with Accidental Death Rider + Critical Illness + Terminal Illness (built-in). I understand that it is improving on the CSR part, but would it be advisable to continue because if I am not available (in case of death), how will this be taken care ?? bit worried.

This is my 1st yr with Aegon Religare.

Please suggest, should I opt out for 1 more term plan with BSLI ?


Gopal Gidwani June 16, 2013 at 10:24 am

Hello Vishal,

As long as you have declared everything correctly about you and your family health in the application form there is no need to worry about claim settlement. It will be taken care of should the need arise.

Regarding your query on a term plan from BSLI, if the cover amount that you have taken is low, then you may go for one more term plan from BSLI


Vaibhav Jain May 28, 2013 at 7:38 am

Dear Gopal,
Thanks a lot for a very informative & good quality work article. I want to buy a Term plan as i have a home loan of amounted 30 lacs, my age is 30 years. Kindly suggest me the following things –
1. How much life cover is good for me as i have a very little life cover (2 lacs) right now.
2. Which is better company to take the insurance as per my requirement.
3. is it good to take a life cover for the longest period offered by the company to cover the risk for longest period.
4. If insurance company is not taking medical test in this age so is it also affect the claim settlement due to non medical.


Gopal Gidwani June 16, 2013 at 9:57 am

Hello Vaibhav,
Please find below my replies to your queries
1) The amount of life cover depends on the value of your financial liabilities (home loans and other loans if any) and financial responsibilities (children’s education and marriage, family expenses, other expenses) etc.
2) You may consider the following plans: Click2Protect from HDFC Life, eShield from SBI Life, ePreferred Term from Kotak Life or Protector Plus from Birla SunLife. All these plans have good features with competitive premiums and the companies have a good claim settlement ratio.
3) Life cover is required to protect loss of future income due to untimely death. You may take life cover till your retirement. Beyond retirement life cover does not make sense as there is no active income to protect.
4) If there is no medical test it does not make a difference at the time of claim settlement. But as far as possible you should ask the insurance company to conduct the medical test even though they may say it is not required. Also in the application form make sure you declare every required about your health, any pre-existing illness/es, family history of any diseases etc.


P Srikanth June 3, 2013 at 9:59 am

How about SBI-e-shield?? can I prefer to go for it which has low premium with 3 riders?


Gopal Gidwani June 16, 2013 at 9:37 am

Hello Srikanth,

SBI e-shield is a good product. You can go for it. Also SBI Life has improved its CSR a lot from 82.24% last year to 95.48% this year.


Nirmal Singh June 16, 2013 at 8:11 am

I want term insurance online but confused to choose Hdfc click 2 protect & Eagon Religare. W


Gopal Gidwani June 16, 2013 at 9:26 am

Hello Nirmal,

I would suggest you to go for HDFC Click2Protect


Amit Kumar September 8, 2013 at 7:41 am

You should compare premiums for your age as well as claim settlement and customer service of the insurers before buying. I bought Aviva i-life after comparing and found it to be reasonable.


Manu June 26, 2013 at 11:31 am

hello Gopal,

I am 30 right now. I took LIC term plan 3 years back with a life cover of 30 lacs and policy duration of 35 years. I got married recently and my wife age is 28. Now, i want to take term plan of ICICI or HDFC, as premiums are lower than LIC and settlement ratio is good. My annual income is 12+ and i don’t have any liability right now. However, i intend to buy a home in Delhi with a budget of 40-50 lacs. Considering all these things, please advise how much extra cover should i take for myself and also for my wife. And which policy will be best? Thanks.


amreen qureshi June 27, 2013 at 6:45 am

which term plan is best between kotak life insurance,hdfc,i pro & sbi


Mahadev July 2, 2013 at 11:09 am

Very informative article and quite useful.
Request you to kindly share the latest CSR of all any new recommendations.
Thanks & Regards,


veeraraghavan July 4, 2013 at 1:40 pm

hello gopal

i am 52years of age . i had choosen TATA AIA term insurance as it covers up to 80
years of age with low premium .
is it really good company as i am worried about its claim settlement ratio is very low.
kindly advice regarding this


Venkat P July 6, 2013 at 9:26 am

Great and very useful posting…

I’m 37 year old and looking for 50Lacs of coverage. I’m confused between HDFC click2protect Vs TAT AIA iRaksha Supreme term plans.

HDFC – every other aspect is fine except coverage – for my present age i’m eligible for 25 years term, which means i can get coverage up to 62 years ONLY.

TATA AIA – Coverage up to 80 years is great and premiums for pure term without riders is comparable to HDFC. Credibility being new entrant is some thing i’m not sure of.

Definitely i would like to avoid as much liabilities by the age of 60 years. But who can expect perfectly? Should i go with TATA AIA since i’m happy with basic product as well as coverage aspect just in case. What is your views on TATA AIA as a life insurance provider for longer term horrizon? What do you suggest?


Gopal Gidwani February 4, 2014 at 6:32 pm

Hello Venkat,
I would recommend Click2Protect from HDFC Life. Also normally insurance is recommended for income replacement in case of untimely death during working life. So insurance is recommended till retirement (60 years).


Falgun July 8, 2013 at 11:21 pm

1) Why are you not talking about Edelwiess Tokio having 100% claim settlement?
2) Should we choose online product or go through the agent?


AMAN SOOD July 14, 2013 at 8:36 am

Sir, if I purchase a insurance policy of one crore from Aegonreligare and a small policy of ten lack from LIC. What will be your openion on this. Please reply.


Gopal Gidwani February 4, 2014 at 6:28 pm

Hello Aman,
It is a good idea to split insurance cover among 2 companies instead of one. Lot of people do that.


sunanda July 19, 2013 at 6:26 pm

what about tata aia? There is nothing written about them on the chart and no review also. They have some very good plans. please tell us about them.

thanks sunanda


Mohd August 6, 2013 at 9:24 am

Hello Gopal,
Thank you for posting such informative data.
I have read the comments above too, had a couple of questions.
1. Is there any policy which will give some returns if we happen to not die during the term? ( being optimistic 🙂 ..but heard SBI does) ?

2. When we opt for multiple policies, does a conflict arise between the insurance companies as to which one should process the claim? Not sure if we can claim from 2 insurers. ex: one claim from SBI of 50lac and another from Aeon Religare for 50 lacs will both be processed?



Gopal Gidwani September 24, 2013 at 4:32 pm

Hello Mohd,

1) There are ‘Return of Premium (ROP)’ plans available in the market. In case of these plans, if the life insured does not die during the tenure of the plan, the life insurance company either gives back just the premium or gives back the premium with additional investment returns. But the premium charged in case of such term insurance plans is much higher than the premium charged for pure term plans.

Pure term plans pay online in the event of death of life insured during the tenure of the plan. If nothing happens to the life insured during the tenure of the plan, the plan ends and the life insurance company gets to keep all the premiums paid.

Ideally you should go for term life insurance plans

2) You can buy multiple LIFE insurance plans from the same company or multiple life insurance companies. There is no conflict in terms of which life insurance company will pay the claim. Infact all life insurance companies have to pay the entire claim depending on the sum insured of each life insurance policy. For example if you buy Plan 1 for Rs. 25 lacs from Insurance Company A and Plan 2 for Rs. 50 lacs from Insurance Company B. Then in the event of a claim, Insurance Company A will have to pay Rs. 25 lacs and Insurance Company B will have to pay Rs. 50 lacs, resulting in a total claim payout of Rs. 75 lacs.

I hope that clarifies your doubts


AVA August 22, 2013 at 9:51 am


I am looking for a term plan which has permanent disability rider. Can you suggest me top three.


Gopal Gidwani September 24, 2013 at 4:23 pm

Hello Amal,

The following plans offer the disability rider
‘Smart Shield’ from SBI Life
‘Protector Plus’ from Birla Sunlife

You may check the websites of these life insurance companies for more information on these plans


Abhijeet Musale August 29, 2013 at 1:21 pm

Hi Gopal,

It was really an nice article. I read above comments and came to know that HDFC Click2Protect is the good term insurance.

If I want to buy above term insurance should I buy online or from any agent.
Which is the best way?



Gopal Gidwani September 24, 2013 at 4:19 pm

Hello Abhijeet,

‘Click2Protect’ from HDFC Life is good.

I will personally suggest you to go for an online term plan


Amit August 29, 2013 at 2:09 pm

Good details. Once can also check for quick premium comparison and latest claim ratios and other insurance statistics.


deepak August 31, 2013 at 3:22 pm

I want to discontiune my existing term cover with icici prudential life which is for 20 lac for 20 year. Now I want a longest term cover for Rs. 50 lac. Bharti axa and Aegon religare are providing cover upto 65 year and 75 year of age but hdfc and icici life looks more reliable despite the fact that claim settlement depends on the correct information. So I am confused. Also how should I show my existing policy which is in grace period, when I purchase new term plan from any company.


Gopal Gidwani September 24, 2013 at 4:17 pm

Hello Deepak,

It is good to have term life insurance till you are working. The main purpose of this policy being protecting the individual’s future income in the event of untimely death. So taking a policy that covers you till the age of 65 years or 75 years will help only if you plan to work till that age. I don’t think you plan to work till that long. So choose your life insurance tenure accordingly.

You may consider going for ‘Click2Protect’ from HDFC Life


sneha September 11, 2013 at 3:22 pm

sir very very informative article,thank you so much for this.
my question is that my husband age is 34yrs ,he has not filed return for the last 2 years ,earlier he was filing it ,he is self employed .
now i revealed this to policy agent (aegon religare and HDFC life) they said they will provide me policy if in the company letter head it is specified that my husband is withdrawing a particular amount in form of salary every month along with the stamp and signature in the company letterhead.
now it is fine that i ‘ll get both the policies of 50 lakhs each but will this create any problem at the time of maturity.
Also is it make any difference taking a policy through policy bazar ,or through an agent .please guide me sir.


Gopal Gidwani September 24, 2013 at 4:06 pm

Hello Sneha,

One person having multiple life insurance policies is perfectly alright. But please make a mention of all previous life insurance policies at the time of buying a new life insurance policy. This is very important.

I will suggest you buy a life insurance policy online directly from the website of the life insurance company. This will result in lower premium payments as there will be no middlemen involved.


dr prasant September 12, 2013 at 12:53 pm

i hv a term plan of 1 cr from hdfc life.
now i want a term plan of my wife(working in govt psu bank as officer).is it good or not?
my wife hv a lic insurance of annual premium 30000 yearly for 40 yrs.her age is at present 27 yr.buying a term plan after knowing all above is good decision or not?
if yes then what term plan will b best…..


Gopal Gidwani September 24, 2013 at 4:01 pm

Hello Dr. Prasant,

Buying a term plan for your wife is a good decision. She needs insurance cover because she is working and her future income needs to be protected in case of any untoward event in future.

You may consider buying ‘Click2Protect’ Plan from HDFC Life for your wife.


Aaron September 19, 2013 at 5:27 am

Hello Gopal,

Thanks for your indebt analysis. This is indeed very useful. I want to buy term insurance from Aviva for my wife. The customer service executive from Aviva claims that there is Critical Illness Rider, but I am unable to confirm it on their site, can you please confirm if Aviva provides Rider Benefits with their Term plan like ADB and permanent or partial disability benefits. I am thinking of this plan as the premium is lowest. Please advise. Thanks in advance.


Gopal Gidwani September 24, 2013 at 3:49 pm

Hello Aaron,
I checked the Aviva i-Life brochure on the Aviva website. It mentions they are offering Accident Death Benefit (ADB) rider With i-Life plan. The minimum ADB rider sum assured is Rs. 10 lacs and the maximum is Rs. 50 lacs. I could not find mention of any other rider available with i-Life in the i-Life brochure.

You may consider ‘Smart Shield’ from SBI Life or ‘Protector Plus’ from Birla Sunlife. Both these plans offer riders like ADB, Critical Illness etc. that you are looking for


Nilesh September 23, 2013 at 6:05 am

Dear Sir,

I am in age of 39 years, male, non smoker would like to buy term insurance plan for myself for 100lacs so should I go for HDFC or Aviva looking from claim settlement and maximum coverage point. Please advice.


Gopal Gidwani September 24, 2013 at 3:38 pm

Hello Nilesh,
I would personally suggest you to go for ‘Click2Protect’ from HDFC Life. They have the second best claim settlement ratio in the industry after LIC.


Kavitha September 25, 2013 at 12:52 pm

I am a 33 year old working women with an annual income of around 6Lpa. I am planning to stop working after 5 years or switch to some parttime job which may have a lower income. If I take a term plan now for 10 years based on my current income. Do I have to change the sum assured as and when the income decreased or stops.


Gopal Gidwani September 25, 2013 at 4:08 pm

Hello Kavitha,
You need not change the sum assured when you shift to a part time job or stop working. There are very few insurance plans that allow reduction in sum assured (most of these are related to mortgage insurance).
You may continue with the same cover when you shift to a part time job


Kavitha September 26, 2013 at 9:28 am

If I take a term insurance policy for 50 lakh for a period of 10 years will it be still valid if I stop working after 5 years?
Or is it better to take a policy for 5 year term only?
If I shift to a part time job after 5 years which pays me half my current salary,
do I have to reduce the sum assured to half i.e., 25 lakhs.
Thanks in advance.


Gopal Gidwani February 4, 2014 at 6:37 pm

Hello Kavitha
Your insurance cover will be valid even after you stop working. Also if your salary gets reduced by half, you will not be required to reduce your insurance cover by half. You can keep your insurance cover intact (same) even after you stop working or your salary gets reduced.


pranav October 4, 2013 at 6:36 am

pl compare SBI-e shield & ICICI- Icare as premium for both are same.Also the Claim settlement ratio for both are equally comparable. pl advice


Gopal Gidwani February 4, 2014 at 6:27 pm

Hello Pranav,
I would recommend SBI E-Shield


Anurag October 4, 2013 at 10:55 am

Dear Sir,
My age is 30 year , I want to take two 50 lacks term plan instead of one 1crore cover to avoid dependency on one company. I chooses bharti axa and hdfc for this. Is it correct, Is there any restriction on number of term plane a person can taken.


Gopal Gidwani February 4, 2014 at 6:26 pm

Hello Anurag,
There is no restriction on the number of term plans that one can take. You may consider the online term plans of HDFC Life and SBI Life


Sivakumar October 22, 2013 at 8:27 am

Dear Gopal,
Thank s for providing valuable information on term insurance. Its really nice to see you providing replies/suggestions for all queries.
I need your suggestion for my term insurance requirements. Already i am having term insurance of 30 lacs (Amulya Jeevan from LIC). Now i want increase my term insurance coverage to 1 crore. I am planning to buy another term insurance policy from LIC for 20 lacs and 50 lac cover from pvt insurer.
Could you please suggest me whether my option is correct and also suggest good pvt insurer for buying 50 lac cover.
Many Thanks in advance.


Gopal Gidwani February 4, 2014 at 6:22 pm

Hello Sivakumar,
Why don’t you go for 1 policy with a cover of 70 lacs? You may consider going for Click2Protect from HDFC Life


ATUL KHANNA October 22, 2013 at 7:49 pm

I am Atul 29 non smoker, I want to take a life cover of 50 lakh with max. term with
CI rider of 10 lakh.
I have shortlisted TATA AIA because they have 40yrs of term in there plan.
And along with that i want to attach a CI rider of AVIVA.
I want to know about TATA and AIA group in terms of how strong is there balance sheet. And also i want to know weather it is possible to attach a CI rider of AVIVA with this plan.
Please suggest any other term plans also if you find above combiations not advisable.

Thanks & Regards



gudla murali mohan rao December 10, 2013 at 2:25 pm

Dear Sir,
I am 42 yrs old (DOB 15-08-1971) working men in private organisation with an annual income of 12 lakhs per year. I am non smoker and married person having two children 9 and 4 yrs age. I had insurance coverage of 15 lakhs through lic, tataaia and shriram. Now I am planning to purchase online term insurance of Rs 50,00,000/- with ADB. Kindly advise me best performed company with low/average premium and good track record, offline is better or online and also advise whether Rs 50 lakhs cover is sufficent or not.


Gopal Gidwani February 4, 2014 at 6:20 pm

You may consider going for Click2Protect from HDFC Life. HDFC has a good track record and their premiums are very reasonable


Birendra December 16, 2013 at 4:43 pm

Dear Sir,
I am 33 year old male and confused about two products 1) HDFC clik 2 protect and
2) SBI e shield.My main concern is that the insurance company should exist at least 30 years from now on.



Gopal Gidwani February 4, 2014 at 6:18 pm

Hello Birendra,
SBI Life and HDFC Life are both good companies backed up by very strong promoters and I believe both will exist 30 years from now.
You may consider going for Click2Protect from HDFC Life


P M Rathod December 17, 2013 at 10:48 am

I want to buy a term insurances..I m in police department. I have lic table no.164 term plan 5 not offer plan to policeman. Which company is best for me? I want 30 lac more cover.i dont go with kotak.


Raghu December 27, 2013 at 9:12 am

Dear Mr. Gopal,


Thank you very much for your wonderful and informative articles on the subject.

I am a Professor and my age is 36 years. Recently I bought a Term Insurance for a cover of Rs. 80Lakhs from ICICI Prudential (iCare RP Option II) through online. I received sms confirming the issuance of policy just two days back. I wonder, without any medical tests, how can a company issue a policy for such a big sum! On asking the local office, the Area Manager confirmed, I am healthy and do not require medical test(as per their underwriter). I am a footballer fro more than 12 years and definitely healthy. But, company`s decision of declaring me healthy(on my information submission) is not satisfying me.

In 2006, I bought a term insurance with Reliance Life for Rs. 10 Lakhs and had underwent medical test. I was convinced with the process and seriousness.

Now after repeated requests, the company says medical test is not required considering my profile and height and weight details. I am worried about the Claim Settlement in the future(if need be), as the process is incomplete without medical tests. Even I offered to bear the Medical Test expenses, but in vain.

Please suggest,


Raghu D


Raj February 5, 2014 at 11:21 pm

Hi Raghu,
Buying insurance online without medical test is not at all advisable. That too from private insurance players it is not at all good. You can approach me for any term insurance from LIC. Entry into private insurance is easy exit is very hard check the claim settlement ration track records.


Gopal Gidwani March 2, 2014 at 9:47 am

Hello Mr. Raghu,

These days some life insurance companies (more for online plans) waive off the medical test based on the information that you submit online while filling the proposal form. Just like ICICI Pru (for iCare RP Option II), HDFC Life (for Click2Protect) also waives off medical test for sum assured upto Rs. 75 lacs subject to the company being okay with the personal health and family history information submitted by the prospect.

Here in this case for your satisfaction, you may do a medical test yourself from a well known hospital or diagnostic centre and keep the medical report with policy document. It will come in handy if there is a claim and if the insurance company rejects the claim for some health reason.

Also when the insurance company does not do a medical test inspite of the prospect asking for it, in such case the onus lies on the insurance company to prove the reason if they decide to reject the claim.


Gaurav January 19, 2014 at 6:51 pm

Hi Gopal,

Now IRDA has released Annual report for 2012-13 as well and I am planning to take term insurance for myself & my wife. I am bit confused between HDFC & Max Life. Reason being, HDFC’s CSR seems to be consistent for last 3 years around 95% or more whereas as per your above table, MAX is improving year on year basis with best CSR in 2012-13 of 94.2% I think. Pl correct me if I am wrong.
I want to go for MAX because of their 2 additional plans – (a) SI+ 0.4% of SI payment Per month for 10 years, (b) SI + 0.4% on 10% incremental basis for 10 year. These plans give addl security to family members in case of untimely death of insured. Pl Suggest.


Gopal Gidwani February 4, 2014 at 6:08 pm

Hello Gaurav,
The second plan of Max Life is good. Also their CSR ratio is improving. You may consider going for this plan.


Pavan January 21, 2014 at 9:18 am

Hello Mr. Gopal,

I am 30 year old. Recently I purchased SBI e-Shield for Rs. 50 Lacs. I want to have another 50 lac term insurance from others. Meantime want to have a cover for partial and permanent disability.
1) Would you suggest to mix it up with term insurance or buy it as a separate? If yes, which one you suggest?
2) If you suggest me to have a pure term insurance for another 50 Lac, which one should I buy now?

Pavan P B


Gopal Gidwani February 4, 2014 at 6:05 pm

Hello Pavan,
For term insurance, I would suggest you consider Click2Protect from HDFC Life.
For disability, I would suggest you go for a separate ‘Personal Accident’ policy from a general insurance company


Narender Singh February 4, 2014 at 9:07 am

Hi Gopalji,

I want to buy term insurance for Rs.50 lack for my wife and she is 36 years old (working). I am looking to buy low premium and best claim settlement ratio. I choose 3 companies Max life, Aviva and Bharti Axa. Please suggest me which one is better. If you can suggest me other co. please.


Gopal Gidwani February 4, 2014 at 5:36 pm

Hello Narendra,
I would suggest that you consider Click2Protect from HDFC Life. It has the second best claim settlement ratio in the life insurance industry after LIC. Also the premium are also very reasonable for Click2Protect


Vishal February 8, 2014 at 6:41 am

Dear Sir,

I have applied home loan in IDBI Bank Ltd of amount Rs.35,00,000/- and I would like to secure my loan liability through home protection plan (MRTA) as they are charging 1,52,000/- (one time premium) against my home loan for tenure 25yrs for Joint life option.
Please suggest any other insurance company plan with home loan benefit with high CSR.



srinivasareddy February 12, 2014 at 7:08 am

hello sir,

my annual income is 3 lakhs and DOB is 22-12-1980.iam intrested to take term policy . i want accidental,ill healthness riders benefit with max coverage years of life.please tell me the best policy to suggest to me and also suggest me how much premium is best for me…


Gopal Gidwani March 2, 2014 at 9:33 am

Hello Srinivasreddy,
I would suggest you consider Smart Shield from SBI Life or Protector Plus from Birla Sunlife. Both these plans have the riders that you are looking for.


Sachin February 23, 2014 at 2:20 pm

Hi Gopal,

Thank you for this very informative article.
I am looking to buy a Term plan and as per your suggestions I am looking for a combination of two. Would you please suggest which two would serve the purpose well..also I am looking to include CI rider in the Plan.

Thank you for your time.


Gopal Gidwani March 2, 2014 at 9:26 am

Hello Sachin,

You may consider a combination of Click2Protect from HDFC Life and Smart Shield from SBI Life / Protector Plus from Birla Sun Life.

Click2Protect from HDFC Life is a plain vanilla term plan without any riders. Smart Shield from SBI Life and Protector Plus from Birla Sun Life come with a CI rider which is what you are looking for


Vinod April 13, 2014 at 10:58 am

Hi Gopal,

I am currently 26 years old. I would like to buy term insurance for maximum benifit till 60 years for 1 crore insured amount. Reading your suggestion, I would like to buy Hdfc Click to Protect plan. Since it is valid maximum term for 25 years. I will not be able to insure till 60 years.
Should I buy 50 lk now and 50lk after I attain 30 years or 50 lk now in hdfc and 50 lk with other insurance company which insures me 35 years of maximum benefit( for ex. Aviva)



Gopal Gidwani May 10, 2014 at 10:13 am

The maximum tenure of HDFC Life Click2Protect is 30 years and not 25 years. You may buy Click2Protect for a cover of 50 lakhs for 30 years and 50 lakhs cover from some other company that can cover you for 35 years (like iTerm from Aegon Religare or iLife from Aviva)


RitzP April 14, 2014 at 5:35 pm

Claim settlement ratio of 2012-2013 has also been published. You can include the same in the article.


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