e -Term insurance policy
e-Term insurance plan is a form of term life cover, it provides coverage for defined period of time. If the insured expires during the term of the policy then sum assured is payable to nominee. Term plans are specifically designed to secure the financial needs of the family or liquidation of liability in case of death of the bread earner of the family.
Low Premiums
The premiums for Term insurance policies are the lowest among all the types of life insurance policies. The premiums are low since there is no investment component and the entire premium goes for covering the risk. eTerm insurance is cheaper by 25-35% to the regular term insurance since there is no element of commission in e term insurance.The comparative chart of some eTerm Insurance Policies are provided at the end.Factors to be considered are;
- How good is the claim settlement ratio? ( Click here)
- Compare the premium!
- Decide the cover you need (At least 10 times the annual salary)
Eligibility criteria
Minimum age of entry: 18 years and the maximum: 65 years.Tax Benefits
- Premium : Deduction under Section 80(C)Maximum upto Rs 1.5 Lakhs
- Maturity, Claim and Bonus : Tax free under Section 10(10D)
How to buy online term insurance plans:
Buying the best term insurance plan in India online is simple, While the process of buying online term insurance varies across insurance companies, it broadly involves the following steps:- Log on to the company website ,Put Your Personal details (Name, DOB & Address)
- Enter the sum assured, Choose the policy term &Choose the premium paying term
- You will see the premium amount & You may be asked for Medical Check up
- Make the premium payment & get the acknowledgement on a successful transaction
- Upload the Documents: Identity Proof, Address Proof & Income Proof
- The insurance company will them refer the proposal to their underwriting team
- After the proposal is accepted, you will receive a soft/hard copy of the policy
Some comparative Premiums *in Rs (Lumpsum Payout option) |
|||
e-Term Plans |
Sum assured |
Annual Premium(30 yr male) |
Annual Premium(25 yr female) |
| HDFC Life Click to Protect Plus |
Rs1 cr |
10,378 |
7,902 |
| ICICI Prudential iProtect Smart |
10,287 |
7,380 |
|
| Aegon Life iTerm |
7,306 |
6,228 |
|
| Edelweiss Tokio Total Secure |
7,481 |
6,491 |
|
Some more options(Staggered Payout Options for SA Rs1 cr) |
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e-Term Plan |
Lump sumpaid on Death |
Staggered Payouts |
Annual premium (30 yr male) |
Annual Premium (25 yr female) |
| HDFC Life Click to Protect Plus | Income Option-Rs 10 Lakhs | Rs50,000 per month for 15 yrs |
8,717 |
6,638 |
| Income Plus Option – Rs 1Cr | Rs50,000 per month for 10 yrs & then increasing by 10% pa |
14,010 |
10,666 |
|
| ICICI Prudential i Protect Smart |
Nil |
Income Option : Rs 83,333 pm for 10 yrs |
8,945 |
6,418 |
|
Nil |
Increasing income option Rs 83,333 for 1st year & then increasing by 10% pa |
13,259 |
9,513 |
|
| Aegon Life i Term |
Nil |
Rs 1.2 Lakh pm for 100 months |
7,306 |
5,868 |
| Edelweiss Tokio Total Secure |
Nil |
Equal income payouts : Rs 3.02 lakhs pm for 3yrs; Rs 1.92 lakhs pm for 5 yrs; Rs 1.09 lakhs pm for 10 yrs; Rs 80,600/- pm for 15 years |
7,481 |
5,965 |
|
Nil |
Increasing income option Above payouts increases by 5% every yea |
7,481 |
6,456 |
|
*Inclusive of service tax