1 Crore Term Insurance

How to get 1 Crore Term Insurance?

Doubtless of anything, what we see is day to day the cost of living is going higher and standards have changed and people find it expensive to leave in the present condition.

Surely everyone wants to live a good life and have a good lifestyle and the ultimate goal is to buy an insurance policy. This not only secures yourself but also your family. Insurance policy is the best option to overcome any hurdles. 

Compare Term Plans Online to Get 1 Crore Term Insurance

When there are multiple choices with different companies, it becomes difficult to choose the term insurance. Most of the insurance providers assure you 1 crore rupees Term Insurance. 

Every insurance provider has their perspective of rating the premium for the term insurance, only after IRDA intervened and passed a regulation standardizing the rates, many insurance providers have brought down their rates making it more comfortable for customers to buy term insurance.

Company

Policy

Settlement Ratio

Sum Assured

Premium Amount (aprox)

Covers upto

SBI Life Insurance

eShield

(Basic Plan)

89

1 Crore

6400 Per Annum

N/A

AEGON Life Insurance

iTerm

(Basic Plan)

89.8

1 Crore

8892 Per Annum

70 years

Reliance Life Insurance

Online Term

(Basic Plan)

83.8

1 Crore

7950 Per Annum

N/A

HDFC Life

Click 2 Protect Plus

(Basic Plan)

90.5

1 Crore

11145 Per Annum

70 years

PNB Metlife

Metlife Mera Term Plan

(Basic Plan)

92.9

1 Crore

9011 Per Annum

N/A

Bajaj Allianz Life Insurance

iSecure

(Basic Plan)

91.9

1 Crore

14513 Per Annum

N/A

Max Life

Online Term Plan

(Basic Plan)

95.5

1 Crore

9046 Per Annum

70 years

Star Union Dai Ichi Life Insurance

Premier Protection Plan (Basic Plan)

94

1 Crore

22000 Per Annum

N/A

ICICI Prudential

iCare II Term Insurance

(Basic Plan)

93.8

1 Crore

18293 Per Annum

70 years

LIC

e-Term Plan

(Basic Plan)

98

1 Crore

14600 Per Annum

N/A

Why 1 Crore Term Insurance? Don’t forget inflation.

In the current world where life is uncertain, we look forward to coverage or insurance in all aspects of our lives and protecting our loved ones. We look forward to protecting our loved ones financially making them stable in case of any uncertainties.

Inflation has been to its pick. One individual working and being the only breadwinner in the house, could opt for a 1 crore term insurance which is much more enough to protect your family financially in the event of the sudden death of the policyholder.

Make up your mind as you need to protect your family financially. You need a source of income running within the family in the event something happens to you as the family is relying upon you. So while choosing the best policy you will come across a lot of insurance companies providing the benefits of 1 crore term insurance.

While choosing the policy please ensure that you run through the policy documents carefully understanding the pros and cons involved. Take a note of the following factors while choosing your policy.

• Rate of premium – your premium will be decided on the coverage you are looking for. Take precautions to be certain that the premium fits your budget. You can always make use of online premium calculators which will help you get an exact quote for your policy. Always compare the premium rates with another insurer before buying.

• Settlements of claim – A little research on the insurance plan will be a must to be assured that the insurance provider is providing claim settlement. To be safer choose the insurer who has over and above 90% claim settlement ration. This will give you peace of mind and leave you to worry-free.

• Add-ons – Most of the insurers provide additional benefits, these benefits only enhance your policy. Be wise to choose the right policy and do not get tricked by the add-ons.

How Your Sum Assured is Calculated in Term Plan?

The ultimate reason why one opts for an insurance plan is to keep their family or their loved ones safe and financially free. Looking at the standards of living and the rate of inflation you need to be pretty accurate of the coverage required. You can do so by estimating the exact amount you spend each year on different aspects like

• Your monthly expenses for utility, household items, and groceries.
• In the case of children their school or tuition fees.
• Payments of all premiums of the family.
• Other miscellaneous expenses of dining out, partying traveling, etc.

Once you come up to a monthly expense table multiple the same amount into 12 and you get your yearly figure or expense. Considering that this is your first year of expense, it may not be necessarily the same amount in the next of upcoming years. There will be inflation, so consider the inflation which calculating your expenses. 

Add your liabilities if any to the expenses. Add up other expenses like a marriage of children etc. 

For example, your monthly cost if Rs.20000/- multiple it into 12(months) = Rs.2,40,000/- into the number of years you want to cover say 20 years = 48,00,000/- plus per year inflation say at 10% = Rs.480000/-. 

Add up your other expenses life marriage functions celebrations, say another Rs. 15,00,000/-.

Monthly expenses for 20 years + inflation + other cost = sum required

Rs.4800000/- + 480000/- + Rs.15,00,000/- = Rs.67,80,000/-.

So you have got a figure for 20 years. That is a coverage that you are looking for in the next 20 years for your family. 

Your Annual Income Plays a Key Role in Getting 1 Crore Term Insurance

The key factor or the objective we can say is that insurance is a replacement of individuals’ income for the family in the event of untimely death. So to derive to the sum assurance the insurance company needs to know your annual income to evaluate and provide the same in return to you.

The applicant here might have to undergo a process of financial undertaking or stating your income proof.

The financial underwriting helps in

• Avoiding over insurance to the applicant.
• Avoiding taking higher risks.

 

The below table will provide a rough estimate of your insurance coverage

Age Group

Insurance cover

18 – 30

25 times the income

31 – 40

20 times the income

41 – 50

15 times the income

51 – 55

10 times the income

56 and above

5 times the income

For example, if Montu is 31 of age and his annual income is Rs.5,00,000/- so he can apply for Rs.5,00,000/- x 20 = Rs.1,0,000,000/-.

How to Calculate Annual Premium for 1 Crore Term Insurance

A specifically designed tool know as a Term insurance calculator will help you to draw an annual premium for the insurance policy. These calculators are available on the insurance companies’ portal which is very easy and simple to use. With the aid of the insurance calculator, you can derive to the sum assured that you are looking to protect your household. 

The term insurance calculator will help to determine the exact amount of premium payable as there are many companies providing insurance policies. This will also make it easy to compare different policies and choose the best suitable one. 

The Term insurance calculators have been a blessing as it works in saving time rather than manually calculating the premium amount. It is a quick tool to compare variously available polices and thus become cost-effective. 

Next time you plan to calculate your premium always remember to make use of the Term insurance calculators.

List of Companies Offering 1 Crore Term Insurance Online

Aegon Term Life Insurance

 

Aviva Term Insurance

 

Bajaj Allianz Term Insurance

 

Bharti Axa Term Insurance

Birla Sun Tern Life Insurance

Exide Life Term Insurance

HDFC Term Life Insurance

ICICI Prudential Term Life Insurance

IDBI Federal Term Insurance

Max Term Life Insurance

PNB Metlife Term Life Insurance

Reliance Nippon Term Life Insurance

SBI Term Insurance

 

 

Term Plan with Return of Premium (TROP)

Term Plan with Return of Premium (TROP)

Life is always unpredictable, so even if we eat healthily, don’t smoke or drink and live a healthy lifestyle, one cannot guarantee that we will live long. Any unfortunate situation can lead to the death of even a healthy person. So planning for a Term Insurance plan is always essential. However, a term insurance plan can provide us with higher returns in case of death of the policyholder. But if the policyholder outlives the tenure, then they would be left with nothing.

What is Return of Premium Term Insurance (TROP)?

TROP or Return of Premium Term Insurance works by paying a premium amount which is chosen as the sum assured. The premium tenure can range between 5 to 25 years. In Return of Premium Term Insurance unlike Term Insurance, the entire premium paid by the policyholder will be returned by the insurance company. Term insurance plan doesn’t offer maturity benefits, but Term Plan with Return of Premium offers maturity benefits in case of survival of the policyholder. Let us take an example that you have taken a Return of Term Insurance plan of INR.50 lakh with a premium of 3500 per year which is of 10-year tenure in regular pay. So, in all the policyholder has paid 35000 INR in 10 years. So if they survive the maturity period, the insured will receive an amount of 35000 INR in the form of survival benefit.

Benefit of a Return of Premium Term Insurance Plan (TROP)

There are many benefits of Return of Premium Term Insurance Plan i.e.: TROP. Few of them are listed below:

1) Benefit of Death: If the policyholder dies due to any circumstances, then the nominee will receive an entire sum assured amount. So TROP essentially provides death benefits to the individual.

2) Benefit of Maturity or Survival: If we pay the premium and the policyholder survives till maturity, then the premium paid amount will be returned to the policyholder whereas, in case of Term plan, there is no return of premium amount.

3) Customizable with Riders to Suit Specific Needs: The main advantage of the Term Plan with Return of Premium is that this policy is provided along with the rider as well. So by spending some extra bucks on top of the base policy, one can receive rider benefits like critical illness rider benefit, accidental rider benefit and term rider

4) Paid-up value: If because of some reasons, the policyholder is unable to pay the premium amount, then the insurance company reduced the cover instead of stopping the policy,

5) Tax benefits: The premiums deducted can be declared under section 80C of Income Tax return for Term Plan with Return of Premium.

6) Discontinuity Benefit: In case a person wants to discontinue the policy, then he or she can do so by paying a certain amount of penalty. They will receive a premium amount paid after a few deductions.

Handy Guide to Buying a Term Plan with Return of Premium (TROP)

There are various points which need to be noted before purchasing a Term Plan with Return of Premium:

• Keeping into consideration all the financial expenses of our family, the amount for the sum assured should be chosen. This is to ensure that after our death the amount accumulated as the sum assured doesn’t fall short.

• In Term Plan with Return of Premium, the premium amount considered should not be too high. It should be affordable.

• Compare all the list of companies online and select the one which provides you benefits along with a good settlement ratio.

• Check for the mode of premiums as either yearly, half-yearly, quarterly or monthly. Not all people can afford a one-time payment.

How a Return of Premium Term Insurance Plan (TROP) Works?

• An individual is made to choose a plan which satisfies all the needs of family members

• The duration of the policy could range between 5 to 30 years, which totally depends upon the insurer and policy chosen.

• After the maturity period, the insurance company returns the entire premium amount which was paid by the insured.

• In case the policyholder dies within the tenure, then as per normal Term Insurance norms, the beneficiary or nominee or family members will receive the sum assured.

• However, it is the sole responsibility of the individual to check for a company which offers the highest claim settlement ratio, and also satisfies many other needs of the individual.

How to File a Claim in Term Plan with Return of Premium (TROP)?

In case of death of the policyholder, the notification must be provided to the insurance company as soon as possible. The notification can be made in writing along with proof of death and date of death and all the relevant documents. The claim process should not be delayed, otherwise, they will need to face many questionnaires, and only after satisfaction of the reason for the delay, the claim process would be continued.

So one must follow below key points properly:

• Inform the insurer about the sudden demise of the insured.

• After the claim gets registered, submit all the relevant documents to them

• There is surveyor which is from the company itself, and they will decide if the claim needs to be approved or not. If it’s a fit, then it would be approved, any reason for the cause of death which is against the clause, such cases would be rejected.

After contacting the insurance company and notifying about death, there are certain documents which need to be arranged, in order to avoid claim rejection. Although the documents collected varies from company to company, there are certain common documents which are as below:

1) Claim form which is duly filled
2) Original policy document
3) Original Death Certificate
4) Post Mortem report or FIR (in case of unnatural death)
5) Medical Certificate
6) Age Proof (if age is not provided already)
7) Legal proof of title of the claimant(for title dispute)

Documents Required to Buy a Return of Premium Term Insurance Plan (TROP)

Below documents are required to buy a Return of Premium Term Insurance Plan (TROP):

The documents provided by the individual including proposal form, supporting documents and other information and any medical shreds of evidence if any provided by the individual forms a part of the contract of insurance and on the basis of this the insurance is issued.

Best Term Plans with Return of Premium (TROP) in India

Below is the list of best term plans with Return of Premium (TROP) in India:

1. Max Life Premium Return Protection Plan
2. ICICI Prudential LifeGuard
3. Tata AIA Life Insurance iRaksha TROP
4. MetLife Suraksha TROP
5. Reliance Nippon Life Insurance
6. HDFC Life Insurance Return of Premium

Term Insurance with Return of Premium (TROP) FAQs

Most frequent questions and answers about term insurance with return of premium FAQs

1. What is TROP?

Term insurance works by paying a sum assured to the individual in case of death of the policyholder whereas if the policyholder survives the tenure then no benefit is provided. Through TROP one can essentially receive the entire premium paid amount at the time of maturity along with the benefit of receiving the entire sum assured in case of death of the insured. The premium amount paid can vary from 5 to 25 years of age. For eg: if a person is searching for a cover of 20 lakhs and with a TROP plan, pays 2500 per year for 10 years, then after maturity the person will receive 25000 INR as survival benefit. But if that person dies in between the tenure, then the cover of 20 lakhs is provided to the nominee.

2. Is the return of premium life insurance worth it?

Term Insurance is a pure risk plan in which if the insured dies then only the amount is provided to the nominee. But nothing is provided in case the insured survives the policy tenure. TROP comes as a protector in such a case. It provides the entire premium amount paid to the policyholder.

Here there are pros and cons of purchasing a Term Plan with Return of Premium:

PROS:

1) Survival benefit is provided in case the policyholder survives the policy tenure

2) In case the policyholder is not able to pay the premium amount after a certain period, then the insurance company returns the premium amount paid, but a certain amount is deducted as a penalty.

CONS:

1) Return of Premium Term Insurance is usually more expensive than normal term insurance plan. So while thinking about saving plus obtaining a term plan, one could end up paying more.

Beneficial would buy the term plan and invest the difference amount elsewhere which offers a better return and lower fees.

3. Is the insurance premium refundable?

Term Insurance provides a sum assured for a minimum premium and offers higher benefits in the future as a death benefit. Return of Premium Term Insurance provides benefit if the policyholder outlives the tenure. The entire amount paid is returned to the policyholder. In the case of Return of Premium Term Insurance, the entire premium amount is charged as per the claims. Hence if the coverage increases then the premium also increases simultaneously. As the age of a person increases then the premium amount also increases simultaneously.  In Return of Premium Term Insurance, even though the company offers a return of premium, the individual will have to bear a higher premium amount in order to receive higher benefits in future.

4. Do you get money back in term insurance plan?

Unlike other term insurance plan where the amount is received only in case the policyholder dies, here in Term Plan with Return of Premium, the amount is received even if the policyholder survives the tenure. This amount is received as a survival benefit to the individual. The entire premium amount is given back by the company. In case the person was able to pay money for a few years only, then the entire amount is refunded but there is a little penalty imposed on top of the amount received. Also, the amount received as a survival benefit is not taxable. Most of the payors offer an individual premium paying mode as yearly, half-yearly, quarterly and monthly.

5. What is money back term insurance plan?

As we grow in different stages of life, we aspire to dream high for ourselves and our family members. We think about the expenses, school fees, health fees, and many more. Money-back term insurance plan is nothing but a Term Plan with Return of Premium plan which is a contract between Term Insurance company and the individual and the individual agrees to pay some amount for a specific tenure with the guarantee of providing an assured amount to the family in case of his death. Also as the name money back, it will return all the premium paid to the policyholder during maturity.

6. Who Should Buy Return of Premium Term Insurance?

Return of Premium Term Insurance plan is basically for anyone. The minimum entry age is 21 years for a Term plan with return of premium which extends up to 55 years. You can purchase the term plan with return of premium for a specific tenure with certain sum assured which purely depends upon the premium amount paid.  The premium amount payable to women is lesser than men.

But most importantly below are the people who must definitely opt for Return of Premium Term Insurance Plan:

1) Single or Unmarried:
If you are single and you have your parents who are dependable on you. If they don’t earn and you are the only breadwinner of the house taking care of all the expenses, then a Term Plan with Return of Premium Plan is very essential in such case. Here, if you survive the policy tenure, then a premium amount will be paid back.

2) Married, but no kids:
If you are married and have no kids, then this plan is also essential for you. Suppose if your spouse is not working, in that case, you are the only support of the family. So through Term plan with return of premium, one can create a backup also, the premium paid doesn’t get wasted as it is received during maturity period.

3) Married with kids:
If you are married with kids, then you are solely responsible for your spouse and kids. Kids are fully dependent on parents. So for their education, marriage, etc, a Term Plan with Return of Premium is essential. This will ensure that these expenses are sorted out in case of death, also the premium amount paid is not wasted in case of survival.

LIC Term Insurance Plans

LIC Term Insurance Plans

In the insurance industry, LIC is a prominent name. LIC stands for Life Insurance Company. It has a huge market shareholding. LIC was established by the Government nearly six decades ago. It is one of the oldest insurance providers and is most trusted. It has expanded exponentially over the period providing customer-centric services and plans. Earlier, it was the only insurance provider that had successfully penetrated to the remote and rural parts in India. LIC is also the most profitable insurance company in India. It has over 250 million customers in India. LIC provides a variety of products such as term plans, child plans, life and health insurance plans, traditional saving plans, pension plans and also, ULIPs.

Benefits of Buying LIC Term Insurance Plan

• It has the best claim settlement ratio of 98%
• Customer trust and confidence has increased over the years as it is the most trusted insurer of the company
• Insurance policies can be bought online directly or through intermediaries.
• Customers are provided an option to convert from one plan to another.
• A customer does not feel burdened while paying premiums and his lifestyle is not affected.
• Policies and plans are available for all age groups- from young to old.
• Varieties of sum assured options are available and customers can also choose from various add on coverage.
• Mode of payment of premium is flexible and depends from customer to customer.
• Flexibility is provided to customers in the frequency of premium payment schedule.
• Customer has the flexibility to choose his sum assured.
• Policies provide for high coverage at cheaper rates and lower premiums. Also, if the person is a non –smoker then premium amounts are much lower.

Types of LIC Term Insurance Plans

LIC provides for three types of term insurance plans.
• LIC Anmol Jeevan II
• LICAmulyaJeevan II
• LIC e-Term plan

LIC AnmolJeevan II

LIC Anmol Jeevan II plan Features
• In case of death of policyholder, the plan provides the nominee with a lump sum amount as sum assured.
• Person applying for the plan shall not be more than 56 years of age and shall not be less than 18 years of age.
• The policy term shall range from 5 years to 25 years.
• If the policyholder survives by the end of policy term, there shall not be any payout or benefit to the insured.
• Regular premiums are payable either annually or semi-annually.
• Sum assured shall be in the range of 6 lakhs to 24 lakhs.
• Policyholder shall be entitled to tax benefits and exemptions under section 80C and 10(10D) for premiums paid.
• It is a protection insurance plan which provides for financial security to the policyholder’s family in case of his untimely death.
• The age of maturity shall be 65 years (max).
• The minimum premium amount shall depend on factors such as age, policy term, etc. However, there is no limit on maximum amount.

LIC’s AmulyaJeevan II

LIC AmulyaJeevan II plan Features
• In case of untimely or unfortunate death of policyholder, the plan provides the nominee or the family memberswith sum assured on policy.
• Person applying for the plan shall not be more than 60 years of age and shall not be less than 18 years of age.
• The tenure of policy shall range from 5 years to 35 years.
• If the policyholder survives by the end of policy term, there shall not be any payout or benefit to the insured.
• Minimum sum assured shall be 25 lakhs INR while there is no maximum limit to it
• Regular premiums are payable either annually or semi-annually.
• Policyholder shall be entitled to tax benefits and exemptions under section 80C and 10(10D) for premiums paid.
• It is a pure life insurance plan which provides for financial security to the policyholder’s family in case of his untimely death. Financial security is provided in terms of death benefits.
• The age of maturity shall be 70 years (max).
• The minimum premium amount shall depend on factors such as age, policy term etc. However, there is no limit on maximum amount.

LIC e-Term plan

LIC e-Term planFeatures
• As per the name of the plan, it is offered online.
• It is a pure term plan.
• In case of death of policyholder, the plan provides the nominee or the family memberswith sum assured on policy.
• Person applying for the plan shall not be more than 60 years of age and shall not be less than 18 years of age.
• The tenure of policy shall range from 10 years to 35 years.
• The premium payment term shall be equal to policy term.
• The policy shall be purchased online and rates of the policy are low.
• If the policyholder survives by the end of policy term, there shall not be any payout or benefit to the insured.
• Minimum sum assured shall be 25 lakhs INR for aggregate and 50 lakhs INR for non –smoker. There is no limit on maximum sum assured.
• Regular premiums are payable during the entire period.
• Premium shall be paid annually.
• Policyholder shall be entitled to tax benefits and exemptions under section 80C and 10(10D) for premiums paid.
• No sum assured shall be payable in case of the suicidal death of policyholder. However, if premiums are paid till the death of policyholder, nominee shall receive a return of 80% of the premium paid.
• It is a pure life insurance plan which is provided by LIC through its online route. It is for financial security to the policyholder’s family in case of his untimely death. Financial security is provided in terms of sum assured.
• The age of maturity shall be 75 years (max).
• The minimum premium amount shall depend on factors such as age, policy term, etc. However, there is no limit on maximum amount

Important Things to Consider When Purchasing Term Insurance

1. Cover provided by the policy:
This factor should be considered before purchasing any insurance policy. Amount of cover required depends on factors such as family members, financial liabilities, age, current lifestyle of the insured, existing income, prevailing inflation rate, etc. Adequate planning and assessment is required. Once assessed, future financial requirements of the family in case of untimely demise shall be evaluated.


2. Claim Settlement ratio:
Claim settlement ratio is claims paid to insurance holder or families with respect to total claims received by the company from its customers. Higher the ratio, better the record of settling claims in the past. In simpler words, claim settlement shall be processed with minimum hindrances. The claim settlement ratio of every company (insurer) is available on the website of Insurance Regulatory and Development Authority of India (IRDAI).

3. Customer Service:
Before purchasing a policy, one should consider quality customer service and 24*7 online assistance. In case of an emergency, online assistance is very helpful as problems can be solved from any part of India. Quality customer service shall refer to the entire process of claim settlement being hassle free. Also, customer care service executives should be helpful and available.

4. Number of members in a family:
The basic drive to purchase a term plan is to provide financial security to the family or nominee in case of untimely death. A term plan must provide for all the needs of family members and any other additional dependents in the insured’s life.

5. Standard of living
A term plan must provide for adequate cover to meet the basic standard of living during the insured’s absence.

LIC Term Insurance Plan Exclusions

Exclusions are those points or circumstances under which LIC shall not be liable to settle any claims. The major exclusion under which LIC shall not provide claims shall be on suicidal death of the insured person. In this case, no death benefit is paid. If the insured person commits suicide within twelve months from date of inception of policy or date of revival of policy, then there shall be no payout. The nominee shall be eligible to receive 80% of premium paid till then subject to some conditions and confirmations.

Riders Offered by LIC Term Plans

Along with any non-linked term insurance plan, LIC offers two special featured-packed riders. The two riders as offered by LIC are:

1. LIC’s New Critical Illness Benefit Plan Rider
• It covers fifteen critical illnesses. It includes Cancer of specific severity, Open Chest CABG, Kidney Failure requiring regular dialysis, Stroke, Permanent paralysis of limbs, Blindness, Third-degree burns, Alzheimer’s, etc.
• Eligibility criteria shall be minimum of eighteen years and maximum of sixty-five years of age.
• The maximum maturity age shall be seventy-five.
• Limited pay, regular pay shall be the mode for premium payment.
• Sum assured shall range from 1,00,000 to 25,00,000/-

2. LIC’s New Critical Illness Benefit Plan Rider
• It is a pure death benefit rider. At a minimum cost, the insured can buy this rider along with any base term insurance plan. The nominee shall receive the sum assured on rider and insurance policy in case of the insured’s death.
• Under this benefit plan rider, there is no maturity benefit.
• In case of untimely demise of the insured, the claimant shall receive an amount equivalent to rider sum assured, which can be equivalent to base policy sum assured.
• Eligibility criteria shall be minimum of eighteen years and maximum sixty years of age
• The maximum maturity age shall be seventy-five.
• Premium payment mode and frequency mode shall be same as base plan.
• Sum assured shall range from 1,00,000 to 25,00,000/-
• Premium paying term and policy term shall also be same as base plan.

How can I apply for LIC Term Insurance?
One can apply in two ways for a term insurance plan. These are:
1. Online –The only insurance plan available online is LIC’s E-term plan.
• It is available online through official portal of LIC.
• One can visit on the site and register an account.
• Then, select the appropriate coverage and plan tenure.
• Post selection, premium shall be automatically calculated.
• You will then be directed to online payment portal where payment can be made via credit/debit/net banking.
• Policy will be automatically issued on payment of premium.
2. Offline – This term plan cannot be purchased online. It can be purchased from banks, LIC agents, brokers and intermediaries.

LIC Term Life Insurance Claim Process
Step 1: To claim death benefits, a structured process has to be followed. The process requires you to fill in certain documentation and submit proofs regarding the same.
Step 2: For claiming death benefit, the following documents have to be submitted by nominee or claimant:
• LIC term insurance policy document
• Death certificate which clearly states cause of death.
• The above documents have to be submitted along with a mandate that gives LIC permission to transfer claim amount through NEFT in your account.
Step 3: Once the documents are ready, the claimant has to submit these to the office of the LIC post.
Step 4: Post submission, verification shall be done.
Step 5: Post verification, the claim is processed further and sum assured is transferred to nominee’s account.
Step 6: The claimant need not worry about settlement as he is dealing with LIC and it has the best claim settlement ratio among the other term life insurance providers in India.

Documents required for LIC Term Insurance

The documents required for LIC Term Insurance are-
• Identity proof – It shall include Aadhaar, PAN, License, and Passport.
• Age proof –It shall include PAN, Birth Certificate, and Matriculation Certificate.
• Address proof –It shall include the following documents as proof -Passport, Aadhaar, Electricity/Gas/Phone Bill, Rental Agreement.
• Proof of income –It shall include Salary Statement, Income Tax Returns.
• Medical reports shall include the Latest medical report wherever required.

Review LIC Term Insurance Plan
LIC is the first insurance company in India and is catering to the customers since the last six decades. It has an enormous base of shareholders and offers variety of products as per objectives of its customers. LIC functions with 2048 fully computerized branch offices. It has 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate Office. Term plans as offered by LIC are no different than other products.

Renewal of LIC term insurance

To renew term insurance plan, one must follow the below mentioned steps:
• Login to the official portal of LIC
• Select the wanted LIC term insurance plan
• Then, select the preferred mode of payment. Payments can be made through debit cards, credit cards or net banking.
• Make the payment.
• Post completion of payment, save the premium deposit receipt generated.
• Alternatively, the insured can also renew the term plan by visiting any branch of LIC and by paying through cash or cheque.

Customer Redressal Grievances
Customers can redress their grievances related to policies by contacting their Grievance Redressal Officers at Branch/ Zonal/ Division/ Corporate level. On the official website, a special “grievance” tab is available.

For any other help, one can use traditional message route; SMS LICHELP to 56767877 or 9222492224.

LIC Term Insurance Plan FAQs

Most frequent questions and answers about LIC Term Insurance Plan

1. What kind of LIC term insurance policy should one opt for?

Every policy has its own pros and cons. Based on one’s requirements, long term goals and affordability, one should choose the life insurance policy. Before purchasing any insurance policy, a person should compare various policies and make investment decisions wisely.

2. How to check policy status for LIC term insurance plans?

Registered users can directly check the status of their policy on the insurer’s website. In case the insured is a new user or any person has recently purchased his policy then it is mandatory to complete the insurer’s registration process.

The steps to be followed by registered users are:
• Login to the official website of LIC
• Click on “Online Services” tab on homepage. It shall direct you to another page
• Then, select “Customer portal” option
• You will be redirected to the eServices page. Here you will have to select “registered user” option.
• Next, you will have to fill up the login details. Details such as user ID, password and date of birth are required to log in and view updated policy status.

The steps to be followed by new users are:
• One needs to register himself on the LIC website with a username and password.
• A confirmation E-mail regarding successful registration shall be sent to your registered E-mail ID.
• The next step shall be to register your LIC term plan.
• This will help you to access the Online Policy Enrolment Form where you will be required to enter details about your policy and policyholder.
• Take a print out of the form. Sign (by the policyholder) and submit it.
• You will receive an acknowledgment confirming your submission.
• Upload the policy on the website. Details such as policy number and premium shall be required for verification.
• After verifying the accuracy of the details mentioned, the policyholder shall receive an E-mail notifying him about the successful completion of verification process.
• Post this; the policyholder shall be able to access the policy status by logging into the official website of LIC.

3. What are the advantages of LIC term plans?

The advantages one can enjoy from LIC term plans are:
• Plans are provided at affordable premiums
• It also provides for comprehensive coverage.
• Plans can be chosen from depending upon the financial objectives of the policyholder.
• It already caters to large customer base ranging from 18 years to 60 years.
• One can make payments through various modes as prescribed
• It also provides the user with premium payment frequencies.
• Policyholders are provided with benefit of switching from one plan to another in respect of some LIC term insurance plans.
• It holds the highest settlement claim ratio.

4. Which is the best LIC term policy?

The best LIC term policy shall be LIC e-term policy. It is considered as a pure insurance policy and has a maturity of 75 years. The basic plan, guarantees a sum assured of at least INR 50, 00,000/-. The annual premium on it is also reasonable.

5. Are rebates on premium allowed?

Rebates on premium to applicants are allowed in certain cases such as record of good health and lifestyle, no record of pre-existing diseases. Rebates on premium to non-smokers are available.

6. What will happen if the policyholder forgets to pay term insurance premium for a month?

In cases where the policyholder forgets to pay insurance premium on or before due date, the company shall provide the policyholder with a grace period of 30days to make the payment and in case of monthly premiums, grace period is of 15 days. IF the policyholder still does not pay the premium then the policy shall be treated as lapsed and he will have to revive the policy. If the policy is not revived during the revival period then policy is null and void and no claims can be made on same in future.

7. What are tax benefits one enjoys on LIC term insurance plans?

Tax benefits can be claimed by availing exemptions under section 80C and 10(10D) of the Income tax act. The sum assured received by the nominee in case of death of policyholder is also exempted from tax.

8. Does LIC have a mobile application?

Yes, LIC has a mobile application named My LIC. It is available for Android and iOS users.

9. Is LIC premium taxable?

No, the LIC premium is not taxable and the same is available as exemption under Sec 80C of the Income Tax Act, 1961.

10. Is tax payable on the LIC bonus?

Exemption under section 10(10D) is available for LIC bonus and hence the same is not taxable.

HDFC Term Insurance Plans

Discount upto 75% on car insurance. Renew in just 5 mins.

Vehicle registration number is required. Invalid registration number.Sample: DL-01-KY-3053
Previous Insurer is required.
Previous Policy Number is required.
Old quotation number is required. Invalid quotation number.Sample: PIBLMTRPC000000000000000

Forgot your car number? Click here

Want to insure your new car? Click here

Probus Renewal? Click here

Already Have Quotation? Click here

HDFC Term Insurance Plans

HDFC stands for Housing Development Finance Corporation Ltd. It is a housing company in the private sector that has ventured out into various other businesses; one of them being life insurance. HDFC along with Standard Life PLC, a UK based company has floated HDFC Standard Life Insurance Company. It is a joint venture. A major stake in the company is held by HDFC with 74.60% while Standard Life Insurance holds 26% and the remaining stake is held by others.
HDFC Standard Life, with its various products and expertise, has become the prominent market leader in the insurance sector. With its different product lines, the company attempts to meet every individual’s insurance requirement from a single source. The range of products includes protection plans which are term plans, child plans, savings, and investment plans.

HDFC Term Insurance Plans

Term Insurance plan provides for protection coverage to individuals. Term plans provide the policyholder with the basic principle of life insurance. It a type of life cover that gives coverage for a prescribed period and if the insured expires during the term of the policy then death benefit shall be payable to nominee otherwise no amount shall be payable. The reason to opt for term insurance by the policyholder is to provide for the financial security of his family and a life cover for himself.

Why opt for HDFC term Insurance Plan?
• HDFC term insurance plan provides for maturity benefits such as basic sum assured, accrued guaranteed additions and vested simple reversionary bonuses (if any), terminal bonus (if applicable) along with death benefits.
• HDFC term insurance plans provide for a grace period in case of no payment of premiums.
• HDFC term insurance plans provide financial independence to the policyholders and his family.
• Premiums paid towards these plans qualify for tax exemptions. The benefits received from these plans also qualify for tax exemptions.
• Based on one’s requirement, one can choose the term plan by not letting his standard of living be affected.
• Term insurance plans generally are the cheapest plans and hence premium payments are not seen as a financial burden.
• Also, the company provides for convenience to the customers as regards the method of purchase by the customer- insurance plans can be purchased online and also through intermediaries.

 

10 Key Benefits of HDFC Term Insurance
• HDFC Term plans provide life cover protection for a large period.
• Additional rider protection options are provided by HDFC term insurance plans.
• Enhanced cover is provided by the company. In simpler words, the company offers flexibility to enhance life cover during critical stages of policyholder’s life.
• Innovative features such as preferential premium rates for non –smokers are prescribed.
• Insurance policies can be bought online directly or through intermediaries.
• Policies and plans are available for all age groups- from young to old.
• Varieties of sum assured options are available and customers can also choose from various add on coverage.
• The mode of payment of premium is flexible and depends from customer to customer.
• It has a good claim settlement process.
• HDFC term insurance plans provide policies at affordable premium rates.

Types of HDFC Term Insurance Plans

HDFC Protection plans are term insurance plans. HDFC Term Insurance plans include the following:
• Click2Protect 3D Plus Plan
• Click2ProtectPlus Plan
• CSC Suraksha Plan
• Click 2 Protect Health

Click2Protect 3D Plus Plan

Features of Click2Protect 3D Plus Plan
• It is low in cost, easy to understand and simple.
• It is a non – linked plan.
• It ensures savings and financial security to the policyholder and his family.
• It provides a lump sum amount as death benefit to the family in the event of the death of the insured. It also provides terminal illness benefits, accidental health benefits, and maturity benefits.

• It has 9 different cover (plan) options. These are:
1. Life Option,
2. Extra life option,
3. 3D life option
4. Income option
5. Lifelong protection option
6. 3D Lifelong protection option
7. Extra life income option
8. Income replacement option
9. Return of premium option.

• Policy term ranges from five to forty years.
• Premium paid attracts tax benefits under section 80C of the Income-tax Act
• Premiums can be paid as single premium on a lump-sum basis at the commencement of policy or regularly for the entire policy duration.

The Eligibility Criteria for Click2Protect 3D Plus Plan

It is to be noted that the below eligibility criteria are not for life long options.

Entry Age

18 years to 65 years

Maturity Age

23 years to 75 years

Policy term

5 years to 40 years

Sum Assured

10 lakhs to no limit

Premium paying term

Single pay

Limited pay – 5 year to 40 years

Premium payment frequency

Monthly, quarterly, half-yearly, yearly

 

The eligibility criteria for Life long protection option & 3D lifelong protection option

 

Entry Age

25 years to 65 years

Maturity Age

Whole life

Policy term

5 years to whole life period

Sum Assured

10 lakhs to no limit

Premium paying term

Limited pay – 65 – Entry age

Premium payment frequency

Monthly, quarterly, half-yearly, yearly

Click 2 Protect Plus Plan

Features of Click2Protect Plus Plan
• This plan provides for 4 coverage (plan) options. Those are:
1. Life option
2. Extra life option
3. Income option
4. Income plus option
• The death benefit paid under this plan will be higher of 125% of Single premium or sum assured for plans which have a single premium feature. Where the plan is of regular nature, the death benefit will be higher of sum assured or ten times the annual premium. In either case, the death benefit shall not be lower than 105% of total premiums paid till the date of death.
• Under this plan, there is a feature called Life Stage Protection- it helps the policyholder to increase the sum assured at important stages in life.
• After attaining 45 years of age, the policyholder has the option to decrease the additional coverage.
• Preferential rate is available for non-smokers.
• Premium paid attracts tax benefits under section 80C of the Income-tax Act
• Premiums can be paid as a single premium on a lump-sum basis at the commencement of policy or regularly for the entire policy duration.
• Under this plan, HDFC Life Income Benefit on Accidental Disability Rider is available- the rider shall pay 1% of the rider sum assured every month to the policyholder for a fixed period of ten years if he suffers Total Permanent Disability arising out of an accident.
• Premium paid attracts tax benefits under section 80C of the Income-tax Act

The Eligibility Criteria for Click2Protect Plus Plan

 

Entry Age

18 years to 65 years

Maturity Age

28 years to 75 years

Policy term

5 years to 40 years

Sum Assured

25 lakhs to no limit

Premium paying term

Equal to Single pay or

Limited pay or policy term

Premium payment frequency

Monthly, quarterly, half yearly, yearly

However, the following shall be excluded: In other words, the exclusions are;

  • If the policyholder commits suicide within 12 month of the start of policy or revival of policy. Here, only 80% of premiums paid shall be returned and no death benefit shall be available to the nominee.
  • In case of rider benefit, if the policyholder expires 6 months after the accident then the same shall be excluded.
  • Deaths due to self-caused injury, alcohol abuse, war, aviation, acts of criminal nature where the rider coverage does not operate will also not be included.

 

CSC Suraksha Plan

Features of CSC Suraksha Plan
• It is a low cost, easy to understand term insurance plan. It caters to rural areas to facilitate providing insurance services to rural population.
• It provides a lump sum amount to the family in the event of the death of the insured.
• Premiums under this plan are low as they ensure affordability.
• Policy terms are flexible as they range from 5 to 15 years.
• The policy as issued is hassle free, with Declaration of Good Health.
• In this policy, higher of sum assured or 10 times the annualized premium or 105% of total premiums paid as on date of death shall be payable to the nominee by the company.
• Premium paid attracts tax benefits under section 80C of the Income-tax Act.
• Annual premium amount shall be 112/- Rs

The Eligibility Criteria for CSC Suraksha Plan

Entry Age

18 years to 55 years

Maturity Age

23 years to 60 years

Policy term

5 years to 15 years

Sum Assured

30,000 To 2 lakhs

Premium paying term

Equal to the policy term

Premium payment frequency

Monthly, quarterly, half yearly, yearly

 

Click2Protect Health

Features of Click2Protect Health
• It is low in cost, easy to understand and simple.
• It ensures savings and financial security to the policyholder and his family.
• There are special premium rates for females.
• It has 9 different cover options along with a customised plan.
• Premium paid attracts tax benefits under section 80C and Sec 10(10D) of the Income tax Act
• Premium rates for non-tobacco users are different than those of tobacco users.
• The plan provides to increase cover every year by choosing a top-up option.
• It offers the Life Stage Protection feature offer to increase insurance cover on certain key milestones.
• The plan provides for flexibility to choose policy payment terms and premium payment terms.
• Under this plan, future premiums are waived on Accidental Total Permanent Disability and on diagnosing of critical illness.
The Eligibility Criteria for Click2Protect Health
It is to be noted that the below eligibility criteria are not for lifelong options.

Entry Age

18 years to 65 years

Maturity Age

23 years to 75 years

Policy term

5 years to 40 years

Sum Assured

10 lakhs to no limit

Premium paying term

Single pay or regular pay

Limited pay – 5 year to 40 years

Premium payment frequency

Monthly, quarterly, half-yearly, yearly, single

The eligibility criteria for Lifelong protection option & 3D lifelong protection option

Entry Age

25 years to 65 years

Maturity Age

Whole life

Policy term

5 years to whole life period

Sum Assured

10 lakhs to no limit

Premium paying term

Limited pay – 65 – Entry age

Premium payment frequency

Monthly, quarterly, half-yearly, yearly

The eligibility criteria for Click2Protect Health

Entry Age

91 days to 65 years

Maturity Age

Lifelong on continuous renewals

Policy term

1 year or 2 year

Sum Assured

3,5,10,15,20,25,50 lakhs

Premium payment mode

Period of policy 1 year: Annual

Period of 2-year policy: Single

 

What are the documents required for HDFC Term Insurance Plan?

The following documents are required for applying HDFC insurance plan:
• Proposal form – duly signed and filled by the concerned individual. It consists of Plan details and personal details of the policyholder, nominee, beneficiary, and appointee if any.
• The second document is the Illustration Copy- It contains basic policy details such as Policy term, Frequency, Plan name and assumed returns on investment during various stages of the policy. It also includes the effect of charges which are applicable only for Unit Linked policies.
• The third document required shall be the Most Important Document (MID). It is a one-page declaration form which is required to be filled. It serves as an understanding of key features of your policy.
• Along with the above documents, address proof, identity proof and income proof shall also be submitted.
• Copy of PAN is also required to be submitted along with documents as discussed above.
HDFC Term Insurance Plan Riders
A rider is an add-on to the basic insurance plan as accepted by the policyholder. It provides extra benefits subject to terms and conditions. The company offers a variety of riders depending upon the requirements of the individuals. These riders are:
1. Critical illness rider – This rider shall enable the policyholder to receive financial benefits on being diagnosed with critical illness.
2. Disability rider – It receives benefits on being afflicted with a disability covered by this rider.
3. Accidental death benefit rider- It receives benefit on accident leading to death.
4. Term rider – It Offers monthly income to nominee on death of life assured.
5. Waiver of premium rider – In the event of an accident or mishap as defined by the rider, the policyholder is not required to pay future premiums on the policy.
It is important to note that these riders can be attached to any insurance plan; it can be a term plan, endowment plan or unit-linked plan (ULIP) or money back plan.
HDFC Term Insurance Plan Exclusions
While deciding on term insurance, it is important to know that not all cases are covered by term insurance plans. These are called exclusions. A claim shall not be considered if the policyholder or the insured dies of the following reasons:
• Suicide within 12 months of the activation of the policy
• Death due to alcohol or drug abuse or any other substance abuse
• War-like situation, invasions, etc.
• Taking part in any flying act (except for traveling in a commercially licensed aircraft)
• If the policyholder takes part in any of the criminal activities and suffers injuries or succumbs to the same.
How to file a Claim for an HDFC Term Insurance Plan?
• A claim intimation form shall be filled in by the claimant. It shall be submitted at the nearest branch.
• HDFC will inform to the claimant as regards to documents to be submitted.
• The claimant should provide complete documentation and information so as the claim proposal to be accepted.
• Where claim proposal is rejected, reasons for the same shall be provided to the claimant.
• A claim shall be submitted as soon as possible to the insurer.
• Also, any claim payments shall be made in electronic form. It means all claims shall be settled using NEFT. Cheque shall be issued in case of the NRE account.
• Any query regarding life insurance or critical illness claims shall be written to service@hdfclife.com
• Any query regarding health insurance claims shall be written to contact.hdfclife@paramounttpa.com

HDFC Term Insurance Plans FAQs

Most frequent questions and answers about HDFC Term Insurance Plans

1. How can one check HDFC Life term plan policy status?

Since all the term plan users are registered on the e-portal of the company; a customer can simply log into the portal and check the policy status.

2. How shall one surrender a term plan provided by HDFC Life?

The term plan can be canceled or surrendered by filling and submitting the surrender form. Along with the form, the policy documents shall also be submitted at the nearest branch office of HDFC Life. A refund will be provided by the company within a period of 72 hours. The company shall provide a refund after deduction of documentation costs, cost of medical tests and cancellation fee.

3. Can an existing policyholder renew the HDFC Life term insurance policy online?

Yes, it is possible for an existing policyholder to renew online HDFC Life term insurance policy using the e-portal of the company.

4. How to get premium receipts?

• One can download his premium receipts by visiting the official website.
• Then go to E-services section of My account
• The policyholder can even place a request for a premium receipt through the company’s IVR.
• The policyholder can contact the company’s touchpoints.

5. How to update details such as contact and Email Id?

• It is easy to update details such as contact and Email ID.
• One just needs to update his contact number and email ID in the Personal Profile Section of My Account.
• The policyholder can even place a request for change in contact details through the company’s IVR.

6. Are premium paid on life insurance policies taxable?

No, premium paid is not taxable and the same is available as exemption under Sec 80C of the Income Tax Act, 1961.

7. What kind of HDFC term insurance policy should one opt for?

Every policy has its own benefits and back draws. Based on one’s requirements, long term goals and affordability, one should choose the life insurance policy. Before purchasing any insurance policy, a person should compare various policies and make investment decisions wisely.

8. What are the benefits available to a customer while buying a Click 2 Protect health plan?

A customer shall be required to give a single cheque, single documentation and undergo a single medical test while buying this policy.

9. How can a customer claim a partial withdrawal facility?

The customer can avail the above facility by submitting a Partial Withdrawal Request Form. It shall be duly signed along with the ID proof and Address proof to be submitted at any HDFC Life branch. It is mandatory to have NEFT documentation. Request shall be processed by the company subject to product norms and features.

10. How to get the Annual Premium Statement?

Annual Premium statement shall be downloaded from E-Services Section of My Account. The customer can even email the insurance company at service@hdfclife.com for the same.

Deaths Covered in Term Insurance

Type of Deaths Covered in Term Insurance

These days, everyone is hustling to earn more money to upgrade their present lifestyle and at the same time secure their future financially. Also, one seeks different ways to secure the future of their near and dear ones. One of the easiest methods for the financial security of the family is to get oneself covered by a good protection plan. These plans not only provide for financial stability in times of need but also aim to maintain the same lifestyle post the death of the insured or breadwinner of the family. Protection plans include various types of term insurance plans which can be chosen as per the needs and requirements of the every individual. Term plans provide security for risks related to uncertain and unexpected deaths. However, one should go through the terms and conditions of the term insurance policies with utmost care as not only it provides for your risk but also ensures for your future financial stability. It is very important togo through the policy documents carefully regarding inclusion and exclusions of the term insurance policy. Various types of life insurance plans are provided by insurance companies, one of them is a term insurance plan.
Term insurance plans are those plans that provide insurance against the risk of life of the insured person. It provides coverage for a pre-determined or specified selected term. Premium has to be paid annually or on a lump sum basis. Under term insurance plans, the nominee receives the prescribed financial death benefits from the term plan only if the insured suffers death as mentioned below. So, in this article, we shall be putting forth the types of death covered under term insurance plans.

1. Death under natural circumstances
Where a person dies due to natural factors like old age etc, the nominee shall receive the benefits as mentioned in the policy agreement. Death due to a natural cause is covered under term insurance.

2. Health-related issues
Death due to a person suffering from any ailment or illness or medical condition is covered under term insurance. It is inclusive in the term insurance policy.

3. Death due to accidents
Coverage is provided by term insurance plans in case of accidental deaths. Term plans also provide for additional accidental death benefit riders. Under accidental death benefit riders, the extra sum assured shall be paid to the nominee or beneficiary apart from the basic sum assured if the insured person dies in an accident.
It is to be noted that death due to following reasons are excluded from accidental death claims
• alcohol consumption while driving OR
• consumption of any type of drugs while driving OR
• Involvement in any criminal or illegal activities
Hence, a claim of a nominee shall be rejected if a person suffers from death due to above reasons.

4. Making claims for more than two policies
Where a beneficiary or nominee makes an application for two or more term insurance policies then he has to follow the guidelines of IRDA. IRDA stands for Insurance Regulatory and Development Authority of India. It is the apex regulatory body of the insurance sector. To claim the benefits, the nominee shall submit details of existing term insurance policy while purchasing a new policy. Details regarding the policy have to be provided in proposal forms. Insured’s death certificate shall be submitted to the life insurance company. Information shall be verified by the new insurance company with the existing insurer. The beneficiary shall receive the claim after successful verification.

5. Death due to suicide
• The beneficiary shall receive 80% of the premium paid if the policy is a non-linked one. However, such amount shall be transferred to the beneficiary’s account only if the insured commits suicide during the initial 12 months from the date of policy commencement.
• Where linked plans are involved, the beneficiary of the policy shall receive 100% of the total premium paid only if the policyholder commits suicide during the initial 12 months from the date of policy commencement.
• Where the policyholder commits suicide after the completion of 1 year of the policy, the benefits of the policy will be nullified. Also, the policy shall be terminated.
• However, some of the insurance companies do not provide for suicidal deaths and ono should be aware of the terms of the policy before purchasing it.

Conclusion
The bottom line of this article is that buyers need to be aware of the policy – rules, terms, and conditions should be properly read and understood in the same manner as provided in the agreement. It helps in avoiding any confusion or discrepancy at the time of claims.

Type of Deaths Covered in Term Insurance FAQs

Most frequent questions and answers about Type of Deaths Covered in Term Insurance

1. What are the examples of accidental death?

The following are examples of death due to accidents:
• Accidents involving motor vehicles or by motor vehicles.
• Accidents involving machinery at the workplace
• Accidents causing fire-related injuries
• Accidentally falling from a height, building or rooftop
• Accidentally drowning in water.

2. Are death due to diseases like cancer included in term plans?

Yes, death due to critical diseases like cancer are included in term plans.

3. What types of death are not covered under the term plan?

Deaths caused due to
• intoxication or in other words, an overdose of drugs or alcohol or
• if the insured dies due to sexually transmitted diseases or
• the insured person causes harm to himself (self-inflicted injury) or
• Homicide – cases where the nominee was himself involved in the death of the insured.
In the above cases, claims made by the nominee or beneficiary shall be rejected by the life insurance company.

Types of Deaths Not Covered in Term Insurance

Types of Deaths Not Covered in Term Insurance

Life is unpredictable and no one knows when will they breathe their last. To mitigate the risk of life unpredictability today we have a solution in term insurance plans. Term insurance plans are simple, affordable and easy to basic life insurance policies. These plans provided by insurance companies help the insured person to feel secure and content about his or her future. Though the event of the death of a loved one cannot be replaced; term insurance plans shall always be the financial protection umbrella for the family of the insured in times of a tragic event.

These plans provide death benefits to the nominee in case of the untimely death of the insured during the active term of the term insurance plan. These benefits are paid on a lump sum or monthly basis or both depending upon the choice made when the term insurance policy was purchased. These plans also provide for additional optional rider options for the extra premium amount. These options provide additional protection and enhance the value of the plan. However, are all deaths covered under term insurance plans? Or there are some certain types of death uncovered? This article throws light on the types of deaths that are not covered under term insurance plans.

1. Death due to driving under the influence of alcohol

The terms and conditions for term insurance plans are simple to understand. It clearly states that accidental death caused due to driving under the influence of alcohol shall be excluded. In other words, if Mr. A is driving his car under the influence of alcohol and meets with an accident resulting in his death then the claim put for the term insurance plans may be rejected. The claim shall also be rejected by the life insurance company even if narcotic substances are involved that is death caused due to the consumption of drugs and other substances.

2. Death due to committing suicide

All term insurance policies do not include cover for suicidal deaths. It is a common exclusion. If the insured commits suicide within a year of inception or revival of the policy then the claim shall not be admitted or payable to the nominee. However, some insurance companies return the premium paid by the policyholder after deducting some expenses, if any. Deaths due to any self-inflicted injury are excluded.

3. Death caused as a result of participation in dangerous activities

Where adventure sports are involved, protection by term insurance plans is excluded. Adventure sports such as skydiving, parachuting, hiking, etc are specifically excluded from term plans. It also excludes activities such as car and bike racing. These possess high risk and are fatal.

4. Death caused due to pregnancy or birth of a child

The insurance company shall not be liable to pay the nominee in cases where a death is caused due to complications arising from pregnancy or while giving birth to a child. Term insurance policies do not provide for the same.

5. Pre-existing health conditions

Where a person loses his life due to an illness which was already declared by him while purchasing a policy then the insurance company shall not provide for the same. The nominee shall not be able to receive any benefits under this type of death.

6. Homicide

If the nominee is himself involved in the death of the insured then the death benefit payout to the nominee will be rejected. Killing a person for the sake of money is a gruesome crime against humanity. Hence, insurance companies do not support such activities.

7. Death caused due to natural disaster

Natural disasters such as earthquakes, tsunamis are troublesome. However, any death caused due to its occurrence is not included in term insurance plans.

8. Death due to sexually transmitted diseases

Sexually transmitted diseases such as HIV AIDs are outside the ambit of term insurance plans. Where a person loses his life due to such diseases, the term insurance policy does not provide for the same. Hence, the nominee shall not be able to reap any benefits of the insurance plan.

9. Participation in illegal activities

The term insurance plan excluded deaths of a person who loses his life due to participating in any illegal activity.For example, any person dealing in drugs is carrying on illegal activity. If he gets killed in an encounter by the police then the death of the insured shall not be covered under the policy.

Conclusion

The above exclusions should not act as an obstacle for purchasing a term insurance policy. A policyholder should always read the terms and conditions properly before purchasing the term life insurance plans. It is advisable for a policyholder to look at various aspects of the policy and his lifestyle and then make decisions to which policy suits him or her the best. It is best to make use of the term life insurance calculator online to compare various plans and then buy the one that fits all your expectations.

Term Insurance Calculator

Term Insurance Calculator

The importance of having a term life insurance plan cannot be emphasized much in today’s day and age. However, most of us are clueless about our term insurance requirements and the process to go about buying the right term insurance plan.

In the past, we use to call the insurance agent and buy the policy that he or she suggested to us. This process did not guarantee us the best deal available in the market. And, at times, we had to bear a large chunk of agent commission to buy the plan.

But now, things have changed. With the advent and fast internet facility in the country. We have the luxury of online platforms to get the required services like buying groceries, booking a cab, paying a bill, etc. in seconds.

Talking about insurance, things have changed as well. You can see details, features and benefits, and review complex products such as term insurance online. Today, the smart way to find the best term life plan is to use the term insurance premium calculator. Term Insurance calculator is available for free.

What is Term Insurance Calculator?

Term Insurance calculator is an innovative tool specifically designed to help an individual in finding the premium quotes from different insurers offering various term plans. It helps to calculate the term insurance premium for a particular sum assured for an individual’s specific needs based on the provided information.

The individual just needs to feed in their details like age, gender, annual income, life cover requirements, etc. Based on the information provided, the term insurance calculator gives the individually customized term insurance plans available in the market along with the premium payable. As there are many life insurance companies in India, checking out all the available term plans one by one is not possible. The term insurance calculator helps to compare the different term plans available.

Then, one can decide which term plan should they opt, which will be the best match for their requirements. The term insurance calculator does the scanning work amongst numerous of term insurance plans available in seconds and presents the available plans. Term insurance premium calculator saves time and money as everything is online.

Benefits of Term Insurance Calculator

Once you decided the sum assured, the calculator fetches insurance premium you must pay to avail the same. Let’s see some significant benefits of using a term insurance calculator.

Getting a quote

Imagine getting a term plan quote without having to speak with any insurance agents.

That’s what a term insurance premium calculator essentially does, it helps you to get a quote for your term plan.

You could also change the sum assured as required and as per the eligibility to see how that impacts the term insurance premium.

Affordable

Once you have fixed the life cover and are comfortable with the premium amount, you can buy the policy right away. Buying term plan online is cheaper.  As there are no intermediaries involved, the benefits are directly passed on to the customers.

Compare Term plans

The calculator takes the affordability factor a few notches higher. When you use an online term insurance calculator, you can compare the plans provided by different companies along with their price and features. However, you shouldn’t always aim for the cheapest plan. Instead, keep a close eye on the features and benefits.

Guide to Using The Term Insurance Calculator

1. Probus Insurance provides term insurance premium calculator for free to everyone. If you want to compare term plans from different life insurance companies, then you will find premium quotes and term plans using Probus Insurance’s term insurance calculator.

2. You will need to put details like date of birth, gender, annual income, the sum assured (life cover), etc.

3. After entering the above information, click on compare now button to fetch quotes.

4. Based on the information provided, the term insurance calculator will show the customized term plans and premiums.

5. Based on the premium payable, claim settlement ratio, the reputation of the insurer, choose the most suitable term plan for yourself.

Use Term Insurance Calculator and Get Instant Premium Quotes

It is no longer a hassle to choose the best term plan for yourself. The term insurance calculator does the job in minutes for you, saving you precious time and money. So, experience yourself how easy it has become to buy a term insurance plan online all by yourself with the help of term insurance calculator.

Increasing Term Insurance Plan

All About Increasing Term Insurance Plan

What is Increasing Term Insurance Plan?

Increasing term insurance plan is a type of term insurance. In case the policyholder passes away during the term plan period, the insurance company will pay the sum assured as per increasing amount. The increasing term insurance plan takes care of the financial stability of your family in your absence. 

If the life assured passes away unexpectedly during the policy term, it ensures the cash flow is as per the financial needs of the family while taking inflation into account.

Term insurance is one of the most economical ways to provide a financial shield to your family in your absence. It offers a high sum insured life cover for the low premium amount as all the premium goes in life cover fund. And so, the financial gurus advise having a term life insurance plan is a must to mitigate the impact of unforeseen problems.

What else is there to Increasing Term Life Insurance Plan?

More than just a death coverage plan, increasing term insurance also has a tax exemption of up to maximum INR. 1.50 lakh as per the section 80C of the Income Tax Act, 1961.

The age eligibility of the term insurance plan is usually between minimum 18 years to a maximum of 65 years. It is advisable to get a term insurance plan at an early age as the premium increases with age.

It is advisable to get a term life plan at an early age as the premium tends to increase with age.

                                             

How an Increasing Term Insurance Plan Works?

 Everyone’s approach is different to tackle a situation. People who think they want more protection in the future for them, then this increasing term insurance is the answer.

The cover in increasing term insurance plan increases at a predetermined rate over the years.

 Increasing Term Insurance Example

 If an individual buys a cover for INR. 1 crore with 5% increase each year, then after 10 years he or she will have a life cover of Rs.1.5 crore.

Term of Policy

Life Cover Amount

Year 1

1 crore

Year 2

1.05 crore

Year 3

1.10 crore

..Year 10

1.50 crore

What to Look for Before Buying an Increasing Term Insurance Plan?

Life cover

The increasing term plan that you opt for should be capable of providing your nominee with money for kids’ education, marriage or any other responsibilities even in your absence. Check the rate of increase is sufficient to tackle inflation or future financial obligations.

 

Premium

Choose a plan that offers a maximum sum assured for the lowest premium to prevent the draining of your pockets.

 

Check terms and conditions

People often commit the mistake of not reading the terms and conditions, especially exclusions thoroughly. It is always advised to look upon the whole terms and conditions before finalizing on the plan.

 

Company’s credentials

Make sure that the insurance company you choose is credible in terms of its experience in the field, claim settlement process, etc.

 

Increasing Term Insurance Riders

Choose a plan that offers you essential riders like an accident, critical illness coverage, waiver of premium, etc.

 

Flexibility

Choose flexible plans, which means that the policy allows you to change the plan tenure according to your needs.

 

Claim settlement process

Make sure that the company you have opted provides you with quick and easy claim settlement procedures without much delay and hassles.

 

Good customer service

Make sure that the insurance company you have chosen can cater to all your queries and requirements in an efficient manner.

Best Increasing Term Insurance Plans in India 2019

• Max Online Term Plan Plus

• SBI Smart Shield

• HDFC Click 2 Protect Plus

Who Should Buy Increasing Term Life Insurance Plan?

This type plan is useful when there is an uncertainty of future coverage based on the present price. The belief that current rate coverage might not be enough to handle future losses and inflation.  To take care of all these uncertainties, increasing term insurance plan would be a good option. With the added benefits, the premium is also dearer compared to the other term insurance plans.

Exclusions in Increasing Term Insurance Plan

Death due to Suicide or self-inflicted injury

Suicide is the primary exclusion in any life insurance plan. The claim won’t be accepted, and the death benefit will not be paid if the policyholder Suicides within the first year of the commencement of the increasing term insurance policy. If the policyholder commits Suicide within the first year, then the insurance company will reject the claim and will payout only the insurance premiums minus the administrative expenses. Some insurance companies may have a two year waiting period for the suicide exclusion clause.

 

Death due to the incident related to Adventure sports

Term insurance gives coverage only to death risks which are purely natural, accidental, or due to critical or terminal illness, which is not in the capacity of the policyholder.

Adventure sports like auto racing, sky diving, rock climbing, bungee jumping are risky.

In such cases, where the policyholder is aware that such adventurous sports may cause an injury or death and still is doing on their own will, is not covered. A typical life insurance policy does not include any incidence that happens due to adventure sports. However, there are insurance plans which especially cover adventure sports but charge a higher premium for its coverage. Some insurance companies may give you a plan, but at a very high premium.

 

Private aircraft accident

Insurance companies do not cover private aircraft rides. Only commercial airlines rides are included. If a policyholder dies in and private aircraft accident, then the nominee will not get the insurance payout.

 

HIV or sexually transmitted diseases

HIV or sexually transmitted diseases are one of the exclusions of increasing term insurance policy. If the policyholder dies due to AIDS or any HIV related diseases, then the death claim will be rejected by the life insurance company.

 

Fraud claims

 The death claims due to illnesses are verified by the insurance company to ensure that the illnesses were not pre-existing when the policy was purchased. This is done to avoid the fraud cases of the claim. If a medical test is done during the application process of the plan, then it confirms the health status of the policyholder. At the time of claim, it becomes easy for the insurance company to process the claim. Or if Suicide is proved as a murder and the beneficiary is shown to be involved in illicit acts, then there is no payout.

 

Use of drugs or excess medicine dosage

If the policyholder dies of consuming illegal drugs or excess intake of medicines or of medicines other than prescribed by Doctor, then the claim will get rejected.

 

Claim on lapse policy

One of the critical aspects of a life insurance policy is the premium payment. The policyholder is required to pay the insurance premiums on time to ensure continuity of the plan. If the policyholder fails to pay the term insurance premium on the due date, then he/she gets one month of the grace period. Claims made during the grace period also get paid out by the life insurance company. However, if the premium is not made even at the end of the grace period, then the policy lapses. And there won’t be any payout for claims made post expiry of the

policy.

Increasing Term Insurance Plan FAQs

Most frequent questions and answers about on Increasing Term Insurance Plan

1. Does term insurance premium increase every year?

No, the term insurance premium remains constant every year for increasing term life insurance plans.

2. What is an increasing death benefit option?

The life cover in the increasing term life insurance plan increases every year at a fixed percentage until the term of the policy.

3. How many term insurance policies one can take?

An individual can buy multiple term insurance, but it is not recommended to be over-insured as the money on paying hefty premiums will be wasted. One can use online human life value (HLV) calculator to know the required life cover and plan their term insurance purchase smartly.

4. What is the life stage benefit option in term insurance?

Life Stage benefits options mean at certain life stage events the insurer allows the policyholder to increase the life cover in term insurance in an affordable and hassle-free manner. The life assured may not also be required to go any medical test when availing the life stage benefit.

5. Is Increasing Term Insurance a better option?

It depends from person to person. The premium of the increasing term insurance is higher than a level or decreasing term insurance plan. Hence term insurance should be chosen as per the circumstance and future financial obligations of a person.

Decreasing Term Insurance Plan

Everything about Decreasing Term Insurance Plan

What is Decreasing Term Insurance Plan?

Decreasing term life insurance plan is one of the most basic insurance plans in case policyholder passes away during the term plan period. The term plan provides financial stability and protection to the family in unpredicted circumstances.

 

Term insurance is one of the most economical ways to provide a financial shield to your family in your absence. It offers a high sum insured life cover for the low premium amount as all the premium goes in life cover fund. And so, the financial gurus advise that a term life insurance plan is a must-have insurance product some to mitigate the impact of unforeseen problems.

What else is there to Decreasing Term Life Insurance Plan?

More than just a death coverage plan, decreasing term insurance also has a tax exemption of up to maximum Rs. 1.50 lakh as per the section 80C of the Income Tax Act, 1961.

 

The age eligibility of the term insurance plan is usually between minimum 18 years to a maximum of 65 years. It is advisable to get a term insurance plan at an early age as the premium increases with age.

Things You Should Consider Before Buying a Decreasing Term Insurance Plan

Life cover

The decreasing term plan that you opt for should be capable of providing you with money for paying liabilities, home loan, or debts. Moreover, funds for children’s education and marriage even in your absence. So choose a term plan that covers for your liabilities in your absence. Also, keep inflation in mind.

 

Premium

Choose a plan that offers a maximum sum assured for the lowest premium to prevent the draining of your pockets.

 

Check terms and conditions

People often commit the mistake of not reading the terms and conditions, especially exclusions thoroughly. It is always advised to look upon the whole terms and conditions before finalizing on the plan.

 

Company’s credentials

Make sure that the insurance company you choose is credible in terms of its experience in the field, claim settlement process, etc.

 

Decreasing Term Insurance Riders

Choose a plan that offers you essential riders like an accident, critical illness coverage, waiver of premium, etc.

 

Flexibility

Choose flexible plans, which means that the plan allows you to change the plan tenure according to your needs.

 

Claim settlement process

Make sure that the company you have opted provides you with quick and easy claim settlement procedures without much delay and hassles.

 

Good customer service

Make sure that the insurance company you have chosen can cater to all your queries and requirements in an efficient manner.

Best Decreasing Term Insurance Plans in India

• SBI Smart Shield

• HDFC Click 2 Protect Plus

• Aegon Religare Decreasing Term Plan

Why should you Buy Decreasing Term Life Insurance Plan?

Decreasing term life insurance plan is best for people whose liabilities will decrease later in life. The liabilities of a person are the most during the young working-age when they buy a house, car, start a family etc. As they progress in life and accumulate savings and pay off the big loans, the liabilities decrease. Hence, for such individual decreasing term life insurance plan suits the most.  Decreasing term insurance plan not only helps in one being over-insured but also saves a lot of money spent on hefty premiums. Decreasing term insurance helps in smart life insurance cover planning.

Exclusions in Decreasing Term Insurance Plan

Death due to Suicide or self-inflicted injury

Suicide is the primary exclusion in any life insurance plan. The claim won’t be accepted and death benefit will not be paid if the policyholder Suicides within the first year of the commencement of the decreasing term insurance policy. If the policyholder commits Suicide within the first year, then the insurance company will reject the claim and will payout only the insurance premiums minus the administrative expenses. Some insurance companies may have a two year waiting period for the suicide exclusion clause.

 

Death due to the incident related to Adventure sports

Term insurance gives coverage only to death risks which are purely natural, accidental, or due to critical or terminal illness, which is not in the capacity of the policyholder.

Adventure sports like auto racing, sky diving, rock climbing, bungee jumping are risky.

In such cases, where the policyholder is aware that such adventurous sports may cause an injury or death and still is doing on their own will, is not covered. A typical life insurance policy does not include any incidence that happens due to adventure sports. However, there are insurance plans which especially cover adventure sports but charge a higher premium for its coverage. Some insurance companies may give you a plan but at a very high premium.

 

Private aircraft accident

Insurance companies do not cover private aircraft rides. Only commercial airlines rides are included. If a policyholder dies in and private aircraft accident, then the nominee will not get the insurance payout.

 

 HIV or sexually transmitted diseases

HIV or sexually transmitted diseases are one of the exclusions of decreasing term insurance policy. If the policyholder dies due to AIDS or any HIV related diseases, then the death claim will be rejected by the life insurance company.

 

 Fraud claims

The death claims due to illnesses are verified by the insurance company to ensure that the illnesses were not pre-existing when the policy was purchased. This is done to avoid the fraud cases of the claim. If a medical test is done during the application process of the policy, then it confirms the health status of the policyholder. At the time of claim, it becomes easy for the insurance company to process the claim. Or if Suicide is proved as a murder and the beneficiary is shown to be involved in illicit acts, then there is no payout.

 

Use of drugs or excess medicine dosage

If the policyholder dies of consuming illegal drugs or excess intake of medicines or of medicines other than prescribed by Doctor, then the claim will get rejected.

 

Claim on lapse policy

One of the critical aspects of a life insurance policy is the premium payment. The policyholder is required to pay the insurance premiums on time to ensure continuity of the policy. If the policyholder fails to pay the term insurance premium on the due date, then he/she gets one month of the grace period. Claims made during the grace period also get paid out by the life insurance company. However, if the premium is not made even at the end of the grace period, then the policy lapses. And there won’t be any payout for claims made post expiry of the policy.

Decreasing Term Insurance Plan FAQs

Most frequent questions and answers about on Decreasing Term Insurance Plan

1. Who should buy a Decreasing Term life Insurance Plan?

Individuals who have mortgages/home loans, car loans, personal loans, business loans should buy decreasing term life insurance. The life cover of the plan will decrease with decreasing the liability of the respective loans.

2. How to Choose the Best Decreasing Term Insurance Plan in 2019?

Before purchasing any term plan, it is essential to look at the best term plan options available to you. You need to thoroughly examine, analyze, compare and only then, finally select the best term insurance plan quote from all the available options. It is recommended to go online and compare all the term insurance options and choose the ones that best fit your individual needs and circumstances