At MyInsuranceClub, we have gone through every new online term plan that is available in India to buy. There is plenty of online terms plans to choose from right now and we will list down some of them to make your decision-making process faster and hassle-free.
The basic Features offered by almost all Online Term plans are
- Offers death benefit only (Sum assured is paid to the nominee on the death of policyholder)
- All types of deaths are covered (except suicide which is covered from 2nd policy year)
- No benefit on policy maturity (policyholder is still alive at the end of term)
- Offers tax benefits on premiums paid u/s 80c of IT act
- Tax exemption on proceeds that are given to the nominee
- Preferential premium rates for women, non-smokers, and high sum assured
Popular Term Plans
|Policy Name||Insurer’s Claim Ratio||Max age at Maturity (yrs)||Key Feature|
|ICICI Prudential iCare II||96.29%||65||No medical test|
|HDFC Life Click2Protect Plus||95.76%||75||4 plan options to receive death benefit|
|SBI Life e-Shield||94.41%||65||Option of increasing cover|
|Max Life Online Term||94.25%||60||3 plan options to receive a death benefit|
|Kotak Life e-Term / e-Preferred term||92.04%||70||Option to increase life cover|
|Bharti AXA Life e-Term||89.48%||75||Family care benefit|
|Bajaj Allianz iSecure||88.67%||70||Option to receive the death benefit in EMIs|
|Aviva iLife||87.71%||70||Option to add a critical illness plan|
|Reliance Life Online Term||86.45%||75||Medical tests at the doorstep|
|AEGON Religare iTerm||66.82%||75||Inbuilt terminal illness rider|
- The plans are sorted in descending order of Insurer’s Claim Ratio
- Insurer’s Claim Ratio here shows only Individual Death Claims Ratio as published in IRDA Journal 2012-13
- Key Features may/may not be part of the standard plan
Since LIC is the oldest and biggest player in the life insurance space in India, many visitors still want to compare the online term plans with LIC’s e-Term.
|Policy Name||LIC’s e-Term|
|Insurer’s Claim Ratio||97.73%|
|Max age at Maturity (yrs)||75|
|Key Feature||Competitive Pricing|
There is an increasing trend in the number of online term plans sold every month and it is getting better every month. In 2010, only 3 insurers were offering online term plans, and now almost all life insurance companies selling term plans online.
From selling less than 500 online term policies in a month, private life insurance companies collectively are believed to sell more than 15,000 online term plans every month. As the concept has spread beyond urban India, people are maturing to the concept of pure insurance and embracing online term insurance plans.
All the online term plans offer supremely great value for money and much-needed protection for our families which today stands at an average sum assured of Rs.85 lacs. In our mind, there isn’t a better financial product in today’s time than a term plan.
Please note that all articles are of a general nature only and should not be considered specific advice. MyInsuranceClub does not endorse or recommend any insurance company or product