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Best Term Insurance Plans in India 2015

Term insurance plan is necessity for an individual who has dependents or a family.

It is a proven fact that a term plan offers the most ‘value for money’ proposition. It is the basic form of life insurance where a fixed sum assured is paid on the death of the policyholder. In case of survival of policy term, the insured gets nothing in return. The premium on term plans depends on three factors: age, term of the policy and the sum assured you choose.

Now as you know what term insurance means. Let us look at the claim settlement ratio of term insurance providers according to IRDA in the year 2014. We will update the table according to the latest data available:

CompanyTotal Claim Received (Pending from last year+This year)Claim PaidClaim Settled Period
Nos.%Within 30 days31-90 daysMore than 90 days
LIC7,50,5767,33,54597.73%6,20,88160,04052,624.00
ICICI Prudential Life14,94814,39396.29%13,736362295.00
HDFC Life6,2535,98895.76%5,33860248.00
SBI Life13,42612,67694.41%11,2171,37980.00
Max Life9,0518,53194.25%7,1191,252160.00
Kotak Life3,0892,84392.04%2,326398119.00
Star Union Dai-lchi73866289.70%246231185.00
Bharti Axa1,04693689.48%65421369.00
Bajaj Allianz27,2822,419288.67%1,76355,1751,382.00
Canara HSBC59752888.44%217187124.00
Aviva2,4332,13487.71%1,82528326.00
Reliance Life21,41218,51186.45%13,2214,731559.00
Sahara Life95580984.71%270299240.00
Tata AIA4,8844,12584.46%3,143706276.00
ING Life3,3122,78083.94%2,241292247.00
PNB Metlife2,4052,01783.87%1,74720466.00
Birla Sunlife9,8718,14982.55%6,3201,457372.00
IDBI Federal68755080.06%55000.00
India First91665471.40%635190.00
Future Generali1,9411,36970.53%83743498.00
Shriram Life1,6021,07967.35%648316115.00
Aegon Religare42228266.82%248340.00
Edelweiss Tokio221045.45%460.00
DLF Pramerica61416627.04%515146.00

This list was prepared after IRDA announced the changes in its regulations which happened in January, 2014. Post the changes some of the insurers did not come up with their Term plans and hence have not been shown in the list.

Claim settlement Ratio of Life Insurance Companies

While looking for a term insurance policy, one of the major points to consider is claim settlement ratio.Claim Settlement ratio of a company informs you about the number of policies that are settled by paying back the claims in case of death.

Claim settlement ratio has been chosen to rate the insurance companies because it is the only ratio which could be of use to customers while they select the policy. High claim settlement ratio shows the insurer is reliable and could be trusted for taking term plans whereas the low ratio indicates that the credibility of insurer is less and therefore they won’t attract many customers because of their inability to settle claims.

Looking at the Claim settlement ratios of various companies it is clear that LIC, ICICI Prudential, HDFC Life, SBI Life and Kotak have fared well in terms of settling their claims and hence stand a good chance of gaining customers’ attention for a Term Insurance Plan.

List of Term Plans/Quotes for 30-Year, Male/Non-Smoker, Age 30, with Annual Premium Payment Details

No.Term Plans NamePremiumMode
1Reliance Online Term7,319Online
2Bharti AXA eProtect8,202Online
3AEGON Religare iTerm8,203Online
4Aviva i-Life8,297Online
5MAX Life Online Term Option I8,315Online
6HDFC Life Click2Protect11,911Online
7Edelweiss Tokio Life – Protection12,922Online
8SBI Life eShield13,135Online
9ICICI Prudential ICare II16,739Online
10LIC Amulya Jeevan26,180Offline
11PNB MetProtect13,034Offline
12Tata AIA Life Insurance Maha Raksha Supreme14,606Offline

 

LIC performs the best in this regard because the company being a core Life Insurer has settled the maximum claims for Term plans and has rubbished the “Do not take Term insurance from a Life Insurer” Norm.

It is a suggestion to all the customers that they make their choices wisely depending on the past performance of the insurers evaluated through their Claim Settlement ratios. Besides that age, health and income of the individual are of ample importance because depending on that only would the insurer decide on the sum insured, premium, term etc. Rest, the provided list is good enough to choose the best term insurance plan in 2015.


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