Did you know? India is the second country with the highest number of deaths per day, with 25,649 deaths a day.
Sounds shocking, doesn’t it?
Well, have you ever wondered- What will happen to their family after demise? Who will bear their monthly household expenses? If you don’t want it to happen to you, then considering term insurance is inevitable in such scenarios.
Term insurance provides financial protection in case of the death of the life insured during the policy period. If the policyholder passes away within the predetermined term, the insurer will pay a tax-free death benefit to the designated beneficiaries. One of the key features of term insurance is its simplicity; it focuses solely on providing a death benefit and does not involve any savings or investment components.
Now, the question arises: What is the best term insurance to choose? Though Reliance Nippon Term Insurance and PNB MetLife Term Insurance are two of the popular names in the segment, you should choose one that caters to your needs.
Comparative Analysis: Reliance Nippon Term Insurance vs. PNB MetLife Term Insurance
Here is the in-depth comparison between Reliance Nippon Term Insurance and PNB MetLife Term Insurance.
|Parameters||Reliance Nippon Term Insurance||PNB MetLife Term Insurance|
|Claim Settlement Ratio (Individual Death Claims) Life insurance)||95.39% (As per IRDAI Report 21-22)||93.35% (As per IRDAI Report 21-22)|
|No. of Plans||3||7|
|Term Plan With Health Cover||Yes||Yes|
|Life Coverage||Get life cover till 80 years||Whole Life Coverage till the age of 99|
|Child Education Benefit||Not Covered||Covered|
|Regular Health Check-Ups||No||Covered|
|Riders||Accidental Death Benefit and Total and Permanent Disablement Rider.||Multiple Riders|
|Claim payout Time||Within a week||Within 7 working days|
|Premium Payment Flexibility||Yearly, half-yearly or monthly frequency||Yearly, half-yearly or monthly frequency|
|Additional Discounts||No||Yes (7% discount on combined premiums)|
What is Reliance Nippon Term Insurance?
Reliance Nippon Term Insurance is a pure life insurance product that protects your family in case of your demise during the policy period. Term insurance plans by Reliance Nippon operate on the basic principle of providing a death benefit to the nominee/beneficiary in the event of the policyholder’s demise during the policy term. The death benefit acts as a financial safety net, ensuring that the policyholder’s family has the necessary funds to cover living expenses, pay off debts, and meet other financial obligations in the absence of the primary breadwinner.
Key Features and Benefits of Reliance Nippon Term Insurance
The following are the key features and benefits of Reliance Nippon Term Insurance.
- Affordable Premiums
Reliance Nippon term insurance is very budget-friendly. The premiums of these term insurance plans are affordable. Reliance Nippon term insurance ensures the policyholder gets comprehensive life cover at affordable rates. This also helps in selecting the right insurance that only fulfils your requirements but also fits your estimated budget.
- High Claim Settlement Ratio
According to IRDAI Report 21-22, Reliance Nippon Term Insurance achieved an exceptionally high claim settlement ratio of 95.39% in FY 2021–2022. Reliance Nippon’s claim settlement ratio shows how many insurance claims are resolved by the company relative to the total number of claims filed during a fiscal year. It is a fantastic quality of Reliance Nippon that draws in more clients.
- Availability of Riders
To improve the protection against life’s uncertainties, Reliance Nippon Term Insurance provides the option to add extra benefit riders to your term insurance plans. In a financial crisis, riders are the additional benefits that are provided.
- Income Benefit Variant
This benefit is available in one of the term insurance plans by Reliance Nippon, i.e., Reliance Nippon Life Super Suraksha that provides an additional benefit to the nominee/beneficiary in the form of a regular income or monthly payout instead of a lump sum payment in the event of the policyholder’s demise.
- Multiple Premium Payment Frequencies
Reliance Nippon term insurance plans give you a variety of options for how frequently you want to pay premiums. It gives policyholders the option of paying their premiums on a monthly, quarterly, half-yearly, or annual basis.
- Life & Health Variant
Term insurance plans by Reliance Nippon combine life insurance coverage with health insurance benefits. In this variant, the policyholder and their family receive protection against both the financial consequences of the policyholder’s death and the costs associated with medical expenses and healthcare services.
- Tax Benefits
Policyholders can receive additional savings on their premiums by taking advantage of the tax benefits available under Section 80C of the Income Tax Act for Reliance Nippon term insurance plans.
What is PNB MetLife Term insurance?
PNB MetLife is one of the topmost insurance companies in the country that has insured 3.16 million people to date. Punjab National Bank (PNB) and MetLife, one of the top insurers in the world, have partnered to provide insurance and protection for individuals. In the event of your death, PNB MetLife Term Insurance offers a variety of extra coverage options to safeguard your loved ones’ financial future. The term insurance plans by PNB MetLife have been designed to address the policyholder’s protection requirements at an affordable cost.
What are the Features and Benefits of PNB MetLife Term insurance?
Here are the key features and benefits of choosing term insurance plans by PNB MetLife.
- Choice of riders
By adding extra riders to the PNB MetLife term, such as those for critical illness, disability, accidental death, etc., you can increase the benefits of your term insurance. The family will be in an unmanageable financial situation in the event of a serious illness or disability. In this instance, you can pay for the treatment and have the coverage increased.
- Tax benefit
Premiums paid under Term Insurance plans by PNB MetLife qualify for tax deduction according to Section 80C of the Income Tax Act, 1961. The death benefit paid out to the family is tax-exempt under Section 10(10D) of the Act.
- Affordable premium rates
When you’re young, you can get PNB MetLife Term Insurance at a lower premium. You are less likely to become susceptible to diseases at a younger age, and you might not already be suffering from any conditions. Therefore, a lower fixed rate will apply to the premium. At various points in your life, such as when you get married and have kids, you can increase the coverage.
- Automatic recharge of Sum Insured
This automatic recharge of the sum insured is included in the term insurance plans by PNB MetLife, which provides a significant advantage, especially in the case of policies covering the entire family. It ensures continued coverage for medical expenses even if the initial sum insured is used up, offering additional financial protection without the policyholder having to manually enhance the coverage or purchase a new policy.
- Multiple Add-On Covers
With PNB MetLife Term Insurance Plans, not just death benefit is offered in the event of unfortunate death of the policyholder, but with its customizable features, the benefits and coverage of the term plan can also be extended. Various features that can be added include accidental death cover, terminal illness cover, disability cover, etc.
- 7.5% discount on PNB MetLife term premiums
The benefit of a 7.5% discount on PNB MetLife term insurance premiums is a cost-saving advantage for policyholders. When you receive a discount of 7.5% on your term insurance premiums, you pay a reduced premium amount compared to the standard premium rate.
- Life Cover with inbuilt Terminal Illness Rider
This combined coverage offers a comprehensive financial safety net, ensuring that the policyholder and their family are protected both in the event of an untimely death and in the unfortunate circumstance of a terminal illness diagnosis. Having this rider built into the policy eliminates the need to purchase it separately, providing convenience and additional peace of mind to the policyholder.
What to Pick: Reliance Nippon Term Insurance or PNB MetLife Term Insurance?
Choosing between Reliance Nippon Term Insurance and PNB MetLife Term Insurance (or any other insurance provider) requires careful consideration of your individual needs, preferences, and financial situation. Assess your coverage requirements based on your financial obligations, outstanding debts, family’s living expenses, and long-term goals. If you want term insurance with a higher claim settlement ratio, then Reliance Nippon Term Insurance can help you. On the other hand, if you want term insurance with a wide range of plans, multiple riders, and discounts, then considering PNB MetLife term insurance will never disappoint you.