Life Insurance - Term Plan Query

[dipen01]

Hey guys,

Need some suggestions wrt to Term Plans. I found some individual sites - LIC, Aviva, ICICI and then some comparing sites - Policy Bazaar.

My age is 25 - getting married next month.
Never had any kind of Insurance till now.
Opting of Term Plan.
Non Smoker, Non Drinker, No Chronic Diseases.
Need a coverage of 1Cr
25-35yrs Policy.

Post comparison, these are the results :

[attachment=10695:17688.attach]

Why the huge difference in Premium for these 4 Policies, even though the coverage is same ?
Thanks,

 

[adi_vastava]

Check Kotak mahindra as well;

About LIC rates; they were always higher. Last I read it was due to some table (which defines age/misc factor/price ratio not updated)

 

[agantuk]

Different companies have different overheads. The most reliable ones in terms of claim honouring are Tata AIG and LIC. Next I think is ICICI. ICICI has the most efficient online setup, hence hey give the best prices.

 

[dipen01]

No I mean a variance of 20-25% is understandable... But a variance of 300% !!

Hence I thought, there might be some underlying terms that I didn't understood. Because when I pay

8k (approx) x 35 = 280k

30 k (approx) x 35 = 1050k

for 1 Cr coverage, why will I want to shell out extra - 7,70,000 extra (Almost 8% of my Total Cover).

 

[Sei]

^OT: Thanks for the thread.. I was looking for the same too!

 

[MAGNeT]

Dipen..I would say right now whatever be your salary take a coverage of 8-10 times of that annual salary.

Suppose your annual package to be 10 lakhs.Than take a cover of 80 lakhs to 1 crore policy.

Also you can take a small policy of say 50 lakhs and say after 4-5 years you get a good increment that you can change th cover to 1.5 crore than go for it that way rather than straight only going for 1 crore.

Reason being HDFC and LIC havent started direct online policy but i guess within next 6 months their plans would be out.And they will also go cheaper.

Problem with LIC charging so much is mortality table on which premium is based is way old i guess during 1990-1995 table period when average human expectancy to survive age was 60-65 years.Whereas others use present data.But now LIC too have come to terms with those facts and they are changing and soon will come with direct plans as in annual premium 40-45% premium in cases goes to agents.

I woul say rather wait or get one small policy of 30-50 lakhs now from other players and when lic ,hdfc comes with their plans.Also buy from them.

In short if you going for 1 crore policy buy one of lic/hdfc/other of 50 lakhs and and another say iterm or other player of 50 lakhs.

Also check this site

Jagoinvestor – Financial Planning,Personal Finance,Financial Coaching,Financial Literacy

They have tons of articles and is based on indian markets.

Best Term Plan Comparision in India [ With detailed Charts ]

Review of iProtect Term plan from ICICI Prudential

Why premiums for online term plans are so cheap ?

iTerm , amazing Term Insurance Policy from Aegon Religare

 

[honest1]

LIC are very costly even for plain life term, Bajaj must have some rider attached to it and because of these, their costs are high.

Also compare Religare Life insurance and Ipru life insurance.

 

[iknowledge]

Go for Aviva Term Insurance.

LIC is expensive because its government and has a settlement ratio of around 97.8% clearnace.

Metlife has a clearance rate of around 94%

Aviva (a venture with Dabur group) has a clerance rate of 93%

Just go for it....

 

[logistopath]

One other reason why Aviva and Met protect are having low premiums is because both are online term plans.