Suggestions Needed for Choosing the Best Term Insurance

[virat#889]

Hi All,

I’m planning to purchase a term insurance policy with a coverage of ₹2 crore up to the age of 60. After comparing claim settlement ratio, amount settlement ratio, and solvency ratio, I’ve shortlisted the following insurers:

* HDFC Life (Click 2 Protect Super) – ₹20,984
* Axis Max Life (Smart Term Plan Plus) – ₹17,063
* ICICI Prudential (iProtect Smart) – ₹16,857
* TATA AIA Life – ₹19,137

Note: The above premiums are annual and do not include any riders.

I have a few queries:

1. Which of these companies are known for good customer service and hassle-free claim experience?
2. Are there any additional factors I should consider before finalizing the insurer?
3. I’m considering adding Accidental Death & Permanent Disability and Waiver of Premium on Critical Illness riders. Are these worth including, or would it be better to go with a plain term plan?
4. Does opting for riders increase the likelihood of claim rejection?

Would appreciate your inputs. Thanks in advance!

 

[drvirag]

I ll go wid axis. N do 4000 SIP instead of hdfc.
Rest i told u yesterday

 

[sunit123]

2 things, no one cannot predict in life whether air bags will open in the car or the beneficiary will get term insurance cover or not because the person will not be around to see

So there is NO BEST term insurance...It is best if claim will be settled and it is waste if claim is not settled.

 

[S U D O]

Hi All,

I’m planning to purchase a term insurance policy with a coverage of ₹2 crore up to the age of 60. After comparing claim settlement ratio, amount settlement ratio, and solvency ratio, I’ve shortlisted the following insurers:

* HDFC Life (Click 2 Protect Super) – ₹20,984
* Axis Max Life (Smart Term Plan Plus) – ₹17,063
* ICICI Prudential (iProtect Smart) – ₹16,857
* TATA AIA Life – ₹19,137

Note: The above premiums are annual and do not include any riders.

I have a few queries:

1. Which of these companies are known for good customer service and hassle-free claim experience?
2. Are there any additional factors I should consider before finalizing the insurer?
3. I’m considering adding Accidental Death & Permanent Disability and Waiver of Premium on Critical Illness riders. Are these worth including, or would it be better to go with a plain term plan?
4. Does opting for riders increase the likelihood of claim rejection?

Would appreciate your inputs. Thanks in advance!

which one did you choose? what was your final decision?
I am planning to purchase too

 

[Saad]

Mee to in the same boat. Watched LLA video on life insurance. Seems like a good Choice to invest in base life insurance and invest rest in SIP. I'm thinking axis maxlife. I have hdfc ergo health insurance, was thinking of going for hdfc life insurance too, but I see everyone suggesting axis instead. Any specific reasons apart from cost? I don't see much difference except cancer cover upto 5 years in hdfc.

 

[magscas]

Mee to in the same boat. Watched LLA video on life insurance. Seems like a good Choice to invest in base life insurance and invest rest in SIP. I'm thinking axis maxlife. I have hdfc ergo health insurance, was thinking of going for hdfc life insurance too, but I see everyone suggesting axis instead. Any specific reasons apart from cost? I don't see much difference except cancer cover upto 5 years in hdfc.

Cost is just one factor. Even claim settlement ratio is good as well. You can also consider ICICI Prudential as it is slightly cheaper than Axis but boasts similar claim ratios.

I am a certified advisor and deal with insurance as well.

One piece of advice is not to go for Waiver of premium and Limited pay options. They are not beneficial for the customer. In fact, those options would give better commissions for me but as an advisor, I would not suggest as it tends to work out costlier when considering future value of money. You can invest the difference in a mutual fund and enjoy better returns.

 

[Saad]

Cost is just one factor. Even claim settlement ratio is good as well. You can also consider ICICI Prudential as it is slightly cheaper than Axis but boasts similar claim ratios.

I am a certified advisor and deal with insurance as well.

One piece of advice is not to go for Waiver of premium and Limited pay options. They are not beneficial for the customer. In fact, those options would give better commissions for me but as an advisor, I would not suggest as it tends to work out costlier when considering future value of money. You can invest the difference in a mutual fund and enjoy better returns.

Hello Sir,
Thank you for your advice. Yes I was thinking the same, I can invest the difference amount into SIP rather than limited pay. Cancer cover for 5 years seems like a scam too. I was a bit confused on the waiver of premium part. Opting in for it in case of critical illness or accidental disability would be good right?
I am a bit new to this, still researching on this part. Could you please elaborate more on this? Your inputs would really help me.

Appreciate your honesty tho.

 

[magscas]

By cancer cover, are you referring to critical illness cover? Ideally, you shouldn't take only a cancer cover. There will be many diseases covered in a specified critical illness cover and usually these illnesses require treatments which are very costly. So once you are diagnosed, you would get a lumpsum benefit. This would help in case you are not able to work for a long time following your illness. Also this should be bought in conjunction to a health insurance policy
And Opting for waiver of premium in term insurance is a good option since you wouldn't need to pay the premium following the unfortunate incident of accidental disability or any critical illness but the life policy will continue until the end of the policy term.

 

[Saad]

By cancer cover, are you referring to critical illness cover? Ideally, you shouldn't take only a cancer cover. There will be many diseases covered in a specified critical illness cover and usually these illnesses require treatments which are very costly. So once you are diagnosed, you would get a lumpsum benefit. This would help in case you are not able to work for a long time following your illness. Also this should be bought in conjunction to a health insurance policy
And Opting for waiver of premium in term insurance is a good option since you wouldn't need to pay the premium following the unfortunate incident of accidental disability or any critical illness but the life policy will continue until the end of the policy term.

No, I was referring to the cancer cover addon rider in hdfc (I won't take it anyway), there is a separate addon for 5 year cover.
Thanks man, I'll opt in for critical illness cover and waiver of premium.

 

[Saad]

I had a doubt, how much ideal cover would you suggest? People I talked to suggested atleast 20x of my current CTC.

 

[magscas]

I had a doubt, how much ideal cover would you suggest? People I talked to suggested atleast 20x of my current CTC.

There's a human life value method of establishing the cover required. You can get those calculators online.

 

[Saad]

human life value

okay thanks sir, wil check it out