A Comparison of Premiums for the Best Online Term Plans

*Please note that the quotes shown will be from our partners

Term insurance is a traditional form of insurance, where the insurer pays a certain amount every year. In case of his demise within a stipulated period, a predetermined nominee will receive a sum assured, plus any additional bonus as the case may be. Traditionally, term insurance does not come with maturity or income benefits; but most plans these days have riders to make your plan more versatile.

To modernise the process of insurance purchase, many insurance providers have come up with online plans. The biggest advantage of these plans is that the purchaser can avoid the use of an agent, the hassle of paperwork and the inconvenience of physical payment. The entire process from premium calculation to submission of documents takes place online. Some providers like ... even allow their customers to check the status of their application online.

But one drawback of this method is that if the proposer is not careful, he may miss certain terms and conditions stipulated in insurance documents available online. Also, websites may suggest riders and premium options which the proposer does not need. To ensure that your online policy meets your exact requirements, it is important to follow two steps:

  • First, compare available plans to make sure you choose the right one.
  • Second, go through the terms and conditions of your chosen plan thoroughly before purchase.

Here is a quick look at some of the online term insurance plans available in the market right now:

Plan

Annual premium for a coverage of Rs.1 crore for a 30 year old male, with a policy term of 30 years

Special features

Non-smoking

Smoking

MetLife Mera Term Plan

7387

9927

  • Riders for income, as well as child education benefit
  • Life stage benefit increases coverage at significant events like marriage and childbirth
Max Life Online Term Plan

7400

11700

  • Special riders for accident, dismemberment and critical illness
  • Increasing income benefit under premium option
Bharati AXA eProtect

7300

13200

  • Family care benefit of Rs.1 lakh is paid within 48 hours of submitting documents proving death
Aegon Life iTerm Insurance Plan

8359

11954

  • Critical illness rider specifically for cancer, open chest CABG, first heart attack and stroke.
  • 25% paid in case of terminal illness, under base plan
Kotak preferred e-term

8481

13024

  • Waiver of premium in case of permanent disability without additional option/rider
ICICI PruiProtect Smart - Life

8945

13753

  • 5 levels of protection, serving health or accidental needs
  • Death benefit can be paid out on diagnosis of terminal instead, instead of death
Bajaj Allianz i-Secure

11960

18375

  • Rebates are offered for purchase through website and for joint insurance plans

 

Punjab National Bank’s MetlifeMera Term Plan offers the most favourable premium rates for both smokers as well as non-smokers. However, it is a basic plan which does not cover unlikely events. Max Life Online Term Plan has slightly higher premium rates, but it comes with accident benefit and premium waiver options. ICICI PruiProtect Smart-Life gives the most comprehensive coverage, along with flexible modes of payment.

Keep in mind that these estimates have been made for simulated conditions, and will vary from person to person. Let’s look at some of the factors that determine your rate of premium…

  • Pure term plans cost less than other forms of insurance because they come with no maturity or survival benefits.
  • If your age at the time of purchase of policy is less, your premium will be lower as well.
  • Most providers have special rates for women, non-smokers, and healthy individuals.
  • Lower premium rates per unit of coverage are charged for a higher amounts of sum assured.
  • Annual premium rates are the lowest. The more frequently you pay your premium, the more you end up paying in the long run. Mode of payment can be monthly, quarterly, half-yearly or annual, according to your provider.
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