Term insurance is the most basic and cost-effective type of life insurance. It offers financial protection for the family of the life insured in return for a set amount of premium payment made for the given duration. A death benefit is provided to the insured’s family in the event of the insured’s death during the policy term. This plan secures your family’s needs in the event of your unfortunate demise while offering high coverage at affordable premium prices. Term plan will assist your family in meeting their long-term objectives and addressing routine expenses in your absence.
When we are talking about term insurance plans, we cannot unsee the term plans offered by Aditya Birla Capital and Future Generali Life Insurance Company because both companies have come up with a number of term plans that are made with unique features apart from the basic ones to make it more suitable for the customers. Their plans are suitable for all, be it breadwinners of the family, women, newly married, or single individuals. Both insurers have come up with rider facilities that can be bought at additional premiums to strengthen the base term plan. To know more about them, have a look at the following mentions.
Comparison between Aditya Birla Term Insurance and Future Generali Term Insurance plans
The following table gives a brief idea about these two-term insurers and their differences.
|Parameters||Aditya Birla Capital Life Insurance Company||Future Generali India Life Insurance Company|
|Number of plans|
ABSLI Salaried Term Plan
ABSLI DigiShield Plan
ABSI Saral Jeevan Bima
ABSLI Anmol Suraksha Kawach
ABSLI Poorna Suraksha Kawach
Future Generali Care Plus
Future Generali Express Term Life Plan
Future Generali Jan Suraksha
Future Generali Saral Jeevan Bima
Future Generali Flexi Online Term Plan
|Availability Rs. 1 crore term plan||Yes, available||Yes|
|Premium amount of Rs. 1 crore term plan||Rs. 542 per month||Rs. 8554 per month|
|Can NRIs purchase||Yes.||Yes|
|Rider benefits||Yes, 6 riders available||5 riders available, at an additional premium|
|Pre-existing medical history||Covered||Payable, may have to pay the higher premium amount|
|Online buying facility||Available||Available for a few term plans|
|Medical check-up||May require, depending on the plan||Required|
|Premium payment frequency|
Note: May vary from one plan to another
Note: The availability of a one-time payment option will vary from one plan to another.
|Tax benefits||Yes, available||Available, up to a limit of Rs 1,50,000 in a year.|
|Grace period||15/30 days||15/30 days|
|Online claim facility for term plans||Yes, available||Available|
|Maturity benefit||Usually not available||Not available unless it is a TROP plan|
Note: The CSRs (Claim Settlement Ratios) have been taken from the latest IRDAI report.
Key Insights About Aditya Birla Capital Term Insurance
Aditya Birla Capital Life Insurance offers various term plans that promise to protect you and your family even when you are not around. Their plan can give you life cover up to 100 years of age. Their life cover for term plans starts from Rs. 25 lakhs to Rs. 1 crore. Cover for Covid-19 is also available. All the term plans under this insurer are budget-friendly, so that anyone can buy them. Critical illness and terminal illness benefits can also be availed of under term plans of this insurer.
Major Highlights of Term Plans of Aditya Birla Capital Life Insurance Company
The following are the benefits.
Their term insurance plans offer a death benefit to the nominee in case of the policyholder’s untimely demise during the policy tenure. The death benefit is typically paid out as a lump sum amount, which can help the nominee cope with the financial burden in the absence of the policyholder.
The primary purpose of life insurance is to provide financial security to your loved ones in case of your untimely demise. Term insurance plans offer a death benefit to your beneficiaries, which can help them cope with the financial burden in your absence.
Term insurance plans of Aditya Birla Capital are typically more affordable than other types of life insurance policies. Since these plans offer coverage for a specific period, the premiums are lower compared to policies that offer lifelong coverage.
No Investment Risk:
Unlike other life insurance policies that combine insurance and investment, term insurance plans do not have any investment component. This means that the policyholder does not have to worry about investment risks or returns.
Aditya Birla Term Plan offers coverage for the expenses of COVID-19 treatment, which is a very important component of the term plans.
Cover Against Critical Illnesses:
ABSLI Salaried Term Plan offers accelerated payout in case the life insured is diagnosed with any of the 42 specified critical illnesses by choosing Accelerated Critical Illness Benefit.
Term plans under this insurer have come up with a sack full of rider options that can be bought by paying a little extra premium amount. The company has six rider options to choose from.
There are several discounts available with this insurer. If the annual income of the life assured is more than Rs. 5 lakhs per annum, then that person is eligible to get a 5% discount on the premium for the first year of the policy period. For women, this discount will rise to 9%.
Terminal illness Benefits:
In case a terminal illness is diagnosed when you are below 80 years old, the policy will immediately pay you 50% of the applicable sum up to Rs. 2 Cr. All future premiums will be waived off, provided the policy is in force.
Know about Future Generali India term insurance plans
Future Generali term insurance plans are designed keeping your needs and preferences in mind so that you can secure your family’s lifestyle today and tomorrow. Customized plans are available to suit your individual requirements. The company offers a long-term protection plan at an affordable premium rate. Their term plan gives you the flexibility to choose the period of protection and the period of premium payment. Accidental death benefits are also covered by the term plans of this insurer.
Key Benefits of Future Generali Term Insurance Plans
The benefits are as follows.
Safety for Loans and Liabilities:
The term insurance plans of Future Generali provide protection for your dependents from your financial commitments, such as home loans, personal loans, etc.
As per the provisions under Section 80C of the Income Tax Act 1961, the premium you pay to buy a term insurance plan is exempt up to a limit of Rs 1,50,000 in a year. As per the provisions under Section 10(10D) of the Income Tax Act 1961, the death benefit of term insurance plans is completely tax-free. Tax laws are subject to changes.
The company has more than 1357 self and partner branches spread all over the country. Their customer service is available 24/7. Therefore, you will always get the company by your side at the time of need.
Flexibility to Receive Benefits:
In each of the term policy options, the policyholder can choose to receive the Death Benefit as per the mentioned payout options. The default payout option is a lump-sum payout. The policyholder can change to any of following the payout options during the policy term but before the occurrence of the insured event – Fixed Income Payout or mixed Payout.
Flexibility To Make Changes:
Premium payment mode can be changed among Annual/ Half-yearly/ Quarterly/Monthly modes. The alteration of premium mode will be applicable from the policy anniversary and will be allowed subject to minimum installment premium conditions.
Life Plus Health Cover Option:
The life cover option is available with several term plans of Future Generali that provide Critical Illness Benefits if the Life Assured is diagnosed with or undergoes any one procedure out of the listed 34 Critical Illnesses.
To Pay Off Loans:
You might have acquired many assets through loans, like a house, a business, a car, etc. You may be assured that your family will not be put at financial risk while you are not around because of the burden of these loans. Such loan(s) may be covered by the payout from the term plan in case of an unfortunate event.
To keep pace with the digitalization of the modern world. Future Generali has come up with different online facilities, such as you can buy or renew their term plans online. You can also raise a claim using their online procedure.
Premium Payment Option:
With this insurer, you have the choice of selecting single (one-time), recurring, or limited payments with term life insurance coverage. However, this varies depending on the plan.
Aditya Birla Term Insurance and Future Generali Term Insurance plan, which one should you opt for?
Choosing between Aditya Birla Term Insurance and Future Generali Term Insurance plan is a very tough job because both insurers are popular among the policyholders, and each of them has some unique benefits that have made them known among the customers. If you want to get inbuilt coverage for terminal illnesses, you can opt for Aditya Birla Capital Term plans. On the other hand, if you wish to have a term plan with a higher sum assured option, then you should go for Future Generali. Therefore, it depends on you and your preferences which insurer would be more suitable for you. However, go through the exclusions and inclusions and compare the premium amount of each term plan offered by these insurers, and only then select one.