Term Insurance: Overview
Term insurance is the oldest form of insurance and is the least expensive plan to purchase the death benefit. It is a no return plan just like your mediclaim or car insurance cover. If claim comes within the insured period, the nominee will get the full sum assured or otherwise there is no maturity value or cash value of the plan. Term Insurance provides coverage for a specific period or term say 10,15,20, 25 years. Term insurance is the simple type of life insurance and easiest to understand. You need not have to calculate the charges and returns in this plan, as you know from the day one that premium paid by you is not going to come back.
Now Private players have gone one step further and are now offering online term plans. The major difference between regular term plans offered through agency channel and online plan is that online term plans are available at 40 to 50% discount premium compared to regular term plans. As there is no maturity value in term plans, the effective cost becomes major criteria while finalising insurance plan. Premium of regular term plans include cost of marketing and office expenses. Whereas all these expenses are saved in online term plan, making them cheaper from cost point of view. Agents are also paid 35% of commission in 1st year and 5% from 2nd year onwards in regular term plans. Online term plan has no commission as plan is directly bought from Co. through its web site
Now Private players have gone one step further and are now offering online term plans. The major difference between regular term plans offered through agency channel and online plan is that online term plans are available at 40 to 50% discount premium compared to regular term plans. As there is no maturity value in term plans, the effective cost becomes major criteria while finalising insurance plan. Premium of regular term plans include cost of marketing and office expenses. Whereas all these expenses are saved in online term plan, making them cheaper from cost point of view. Agents are also paid 35% of commission in 1st year and 5% from 2nd year onwards in regular term plans. Online term plan has no commission as plan is directly bought from Co. through its web site
Term Insurance: Premium
To help you analyze premiums of the various Life Insurance companies in India, we have created the Term Plan comparison tool. Simply enter your profile details (Age, Gender, Whether Tobacco user) and the amount of Life Cover you seek. We will find out the premiums of all Term Plans offered by Life Insurance companies in India.
Get Life Insurance Proposals
Upto 5 providers will offer you alternative proposals based on Feb 2012 premiums