Comparison of term insurance plans
Generally insurance agents shy away from recommending Term Insurance plans. This is because the term insurance plans have a very low margin for the insurance agents. MeraMD is the first site to provide detailed comparison of term insurance plans for your benefit.
The advantage of term insurance is that you are not paying the insurance companies to invest on your behalf, the downside is that you need to be disciplined enough to make good investments yourself. Term insurance gives you a much larger Sum Assured than other plans, for the same amount of premium, because its a pure risk cover.
The method used to compare the term plans costs across the insurance companies was this. We took the following parameters across all plans:
- Healthy male life, 30 years age
- Term of 25 years, with regular premium
- Premium paid annually
- Sum Assured of Rs 10 Lakh
| Policy Name | Min entry | Max entry | Max Age | Min term | Max term | Min SA | Max SA | Cost (Rs.) | |
| Aviva | LifeShield | 18 | 55 | 65 | 5 | 40 | 500,000 | NA | 3530 |
| Bajaj Allianz | New Risk Cover | 18 | 60 | 65 | 5 | 40 | 400,000 | 50 Cr | 3730 |
| Bharti AXA | Secure Confident | 18 | 55 | 60 | 5 | 25 | 500,000 | NA | 2940 |
| Birla | Term Plan | 18 | 55 | 70 | 5 | 25 | 200,000 | NA | 3551 |
| HDFC | Term Plan | 18 | 60 | 65 | 10 | 30 | NA | NA | 3050 |
| ICICI Prudential | LifeGuard | 18 | 55 | 65 | 5 | 30 | 500,000 | NA | 3025 |
| Kotak | Term | 18 | 60 | 70 | 5 | 30 | 250,000 | 5 Cr | 4602 |
| Kotak | Term Prefered | 18 | 55 | 60 | 5 | 30 | 250,000 | 5 Cr | 3143 |
| Max New York | Level Term | 18 | 55 | 60 | 5 | 25 | 250,000 | 5 Cr | 3050 |
| LIC | Anmol Jeevan | 18 | 55 | 65 | 5 | 25 | 500,000 | 3 Cr | 3821 |
| Metlife | Suraksha TA 60 | 18 | 60 | 65 | 5 | 25 | 50,000 | None | 3600 |
| Reliance | Term Plan | 21 | 60 | 65 | 5 | 25 | 250,000 | None | 3070 |
| SBI Life | Shield -Level | 18 | 60 | 65 | 5 | 25 | 300,000 | 25 Cr | 2964 |
| Tata AIG | Raksha | 18 | 50 | 60 | 10 | 25 | NA | None | 2640 |
Additional notes for the above table:
- Most companies mention that taxes are extra. Some dont. Its been assumed that quotes are exclusive of taxes whereever the official website did not specify.
- Most companies provide additional riders, typically Accidental Death Benefit, Permanent Disability Benefit and Critical Illness Benefit. Some companies have other innovative riders like Waiver of Payment, etc.
- ICICI provides online purchase of risk cover for upto Rs 10 Lakhs if the life covered is in the 20-40 age bracket.
- Most companies have lower premiums for female life covers.
- The sum assured can typically be increased in increments of Rs 1 Lakh, while the term can be incremented typically in blocks of 5 years.
DISCLAIMER:
meraMD.com is not connected to any of the insurance companies listed above and does not recommend any specific insurance company. All rates and information given above is taken from the respective company websites, as of July 2007. meraMD.com is not responsible in case this information is outdated or no longer applicable.
Advertisement