Life is unpredictable and full of ifs and buts. It is important to keep your family members secured in your absence. A term plan is an insurance solution that provides financial security to your family members in case an unfortunate event of death occurs to you.
A term insurance plan ensures that the entire sum assured is provided to the nominee in case an event of death occurs to the policyholder. This Sum assured can be utilized the way your spouse/ nominee wishes to use it – pay bills, pay EMIs, pay for child’s school fees, health bills, etc
Term insurance is the simplest insurance product. They ensure that in the event of the policyholder’s death, the family gets the sum assured. Term plan provides a life cover for a till the policy term. If the insured dies during the time period specified in the policy and the policy is active then a death benefit will be paid.
Let us understand some of the best Online Term Insurance Plans in India. These are online plans that can be purchased at your convenience and are the cheapest form of insurance plans.
Below are the parameters on which I have shortlisted few best term plans
- Premium amount
- Brand name.
- Added Features
- Quality of service provided during the online purchase and after issuance
- Feedback received from my friends who bought online Term Life Insurance plans directly.
Below is the comparison;
|Company||Plan||Entry age (Min-Max)||Covers up to (max age)||Sum assured||Premium (for a healthy 25 year old male policy term 25 years)|
|Max Life Insurance||Max Life Online Term Plan Basic Life Cover
|18 – 60||60||Rs. 1 crore||6200*|
|Edelweiss Tokio Life||MyLife+||18 – 60||80||Rs. 1 crore||4950*|
|HDFC Life||Click2Protect||18 – 65||75||Rs 1 crore||8378*|
|LIC||Amulya Jeevan II||18 – 60||Rs 1 crore||16560*|
LIC’s e-Term Plan Online Term Insurance Plan
LIC had launched its online Term insurance plan on May, 2014. It was a late entrant with respect to the launch of online term plans. The e-term plan is about 35% cheaper than the offline term plans offered by LIC. However, when you compare the premiums of LIC’s e-term plan with private insurance players’ online products, you may find it very costly.
Max Life Insurance’s Online Term Plan
The term plan provided by Max life insurance is reasonable and provides a basic life cover. It also provides different plans that have different payout options – like monthly and lumpsum. However, the maximum life cover provided by Max term insurance is only up to age 60. With the increase in life expectancy rate, it’s better that you choose a term plan which provides a longer life cover at least up to the age of 80.
Edelweiss Tokio Life – MyLife+
Edelweiss Tokio Life provides a term plan known as MyLife+. It is a low cost online term plan that provides a higher sum assured of Rs 1 crore at only Rs 4950*. It also provides an accidental total and permanent disability rider which provides protection against total disability. Other riders which can be added are waiver or premium and accidental death benefit rider. It also provides multiple payout option in the same plan like monthly or lumpsum without any additional charges. MyLife+ is the only plan that provides a longer life cover up to the age of 80. The maximum sum assured has no limit and is decided by the underwriting team.
HDFC Life’s Online Term Plan
The premiums of HDFC’s term plan are higher than Edelweiss Tokio Life – MyLife+ .The maximum Sum Assured that one can buy is Rs 10 crore under this plan. The maximum cover provided by HDFC life is 75 years.
Since, I have outlined the key factors on which you can compare online term plans. According to me, MyLife+ is a better option because it provides features like multiple payout options, good option to add relevant riders and also provides value for money because it is comparatively cheaper.