Online Term Vs. Regular Term Plans

The major difference between this HDFC Life Click 2 Protect plan and a regular term plan is that it is much cheaper comparatively since you are buying it directly from the company and there are no agents involved.

Plan Details

• Minimum sum assured is Rs. 10 lakhs
• Maximum sum assured is Rs. 10 crore
• Minimum premium – Rs. 2000
• Only Annual premium payment option is available
• Policy terms ranges from 10 years to 30 years
• Minimum entry age – 18, maximum – 55
• Maximum maturity age – 65

Benefits

Death Benefit – The nominee will get the sum assured in case of death of the policy holder

Surrender and Maturity Benefits – This online term plan does not have any maturity or surrender benefits

Tax Benefits – This premium paid for this plan is eligible for tax benefits under section 80C

How to Buy HDFC Click 2 Protect

You can just buy this Click2Protect online in just 3 simple steps,

1. Choose sum assured and policy term
2. Calculate your regular annual premium
3. Fill the form and make the payment

Approximate Premium

For a 1 crore sum assured  a non-smoking individual of 30 years of age just need to pay an annual premium of Rs. 10,600.

Things to Know

• After buying this HDFC Life Click 2 Protect plan online they have given you an adequate free look-in period of 30 days within which you can cancel your policy and you will get the refund minus charges
• There is also a 30 days grace period for paying premium annually
• If no premium is paid the plan gets lapsed but it can be revived provided you have paid the pending premiums

There are various other online term plans like the Aviva i-Life, Met Protect and Kotak e-term, ICICI iProtect and many more plans like the good old and the first online term insurance plan from Aegon Religare iTerm, etc., which you can compare effectively before deciding to buy any one of the plans.  But it is mandatory that you buy at least one term plan for yourselves without fail which is the pure insurance plan that you should have rather than the money back, endowment or ULIP plans which actually combines life insurance with the investments which is totally not advisable for any individual looking to cover their family even during their absence.

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Jeevan Ankur Plan Details

Entry Age – 18 years to 50 years

Entry Age for kids – 0 to 17 years

Term – 18 minus age of kid, maximum 25 minus age of kid

Sum assured – minimum Rs. 1 lakh while there is no maximum limit

Features

• Parents are the life assured (not kids)
• Maturity benefit:  Sum assured + loyalty bonus
• Death Benefit:  Sum assured + maturity benefit +income benefit
• Various riders to choose from including accident benefit rider
• Critical illness benefit rider including premium waiver
• Cannot take loan with this policy

Benefits

• Death benefit ensures that immediate payment to meet the financial requirement for kids.
• 10% SA on policy anniversaries to help meet the financial requirements regularly till the end of policy
• Monetary benefit helps reach the important goals in your child’s life at the time of maturity
• Customization of plan with accidental riders, critical illness rider for more security

Although comes loaded with various benefits and features, as the experts advice just think twice in taking such traditional endowment or children’s plans as the actual yield at the end of the term would much lesser comparatively in terms of inflation as well as liquidity factors, etc.

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Hence with this new option, the LIC will pay the policy payment including the annuity, claims, etc.

Advantages of NEFT with LIC

• Faster payment credit exactly on due date
• Most secure way to get paid on your policy
• No other extra charge or service charges
• Easy to track and get back the amount in case of non-receipt of your policy maturity amount

How to give NEFT to LIC

If you are wondering how you can submit your existing bank details for prompt payment from LIC via NEFT, then read further.  First you will need to download the LIC NEFT Mandate form from the LIC India Website and then fill in all your personal details including your policy numbers.  You can actually fill in up to 6 policy numbers in one mandate form.

You should include your bank name, address, account type, bank account number, IFS Code along with your signature to the LIC office where at least one of your policy is being serviced.

Along with your NEFT Mandate form you will need to give your bank’s cancelled cheque leaf or photocopy of the passbook which has the above mentioned details.

Important Points

• Make sure you give all the correct details of your bank so that you get the correct credit of your policy payment on maturity or either for money back plans.
• Also confirm and make sure that your existing bank has the option of receiving NEFT transfer
• NRI Accounts are eligible to receive such transfers from LIC
• If you want to change your existing bank details with LIC, then you will need to give a fresh mandate form for the same

This is an excellent option and a welcome move by LIC and RBI to help our lives a lot more easier as it will ensure that you get your policy payment promptly and effectively without getting lost or needing to wait for the cheque, etc.

You can download this LIC NEFT Mandate form from here .

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Features

• Guaranteed income for 15 years that is 180 months
• Different payment options of 5 years or 10 years for 20 or 25 years terms respectively
• Death benefit of 45 months of monthly income as well as accrued bonus as well as 15 years monthly income for the family
• Tax benefit under section 80 C for the premium paid

MetLife MIP Plan Details

• Entry ages 18 to 60 years
• Maximum maturity age is 85 years
• Minimum monthly income is Rs. 1000 per month
• Sum assured of 180 times the monthly income
• Premium payment options for 5 years or 10 years
• Policy term 20 years or 25 years

Apart from the monthly income that you receive from Met Monthly Income Plan, you also get the accrued bonus, which will vary according to various factors, at the end of the policy term which makes it like a money back as well as endowment policy in one.  In plan words, they are able to guarantee the monthly income since you are investing continuously either for 5 years or for 10 years and after that they are guaranteeing you the monthly income for 180 months plus bonus which may turn out to be insignificant or small amount during that time due to inflation and other factors, so think and decide before you are planning to opt for this MIP from Met Life.  But the added advantage being the death benefit for the family.

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Benefits of Aviva i-Life

• Death Benefit is applicable for this policy and the sum assured will be paid to the beneficiary in the family upon unfortunate death of the policy holder.
• No Maturity benefit is applicable for this plan
• Tax benefits under section 80C under the current income tax rule

Eligibility and Specifications

• Minimum sum assured is Rs. 25 lakhs, maximum there is no limit
• Minimum and maximum entry age is 18 and 55 respectively
• The maximum maturity age is 70
• The minimum policy term is 10 years and maximum 35 years
• Premium can be paid either annual or half yearly mode
• There is a 5% discount for the females who buy this term insurance product

Premium

The 1 crore policy under Aviva i-Life Term Plan comes around Rs. 22 per day according to their calculation and details of the various terms and duration.  For a 30 year old individual non-smoking male the premium that he has to pay is Rs. 4358 for a 50 lakhs sum assured under this plan which makes it the cheapest insurance in India in terms of death benefit offered, but remember there will never going to be any maturity benefit available for such term plans ever.

How to Apply

To apply for the Aviva i-Life Term Plan just visit Aviva India website and use the internet explorer 6 and above for the same and go through the instructions to buy and submit all the necessary documents to them like photo identity card as well as income proof for their reference and once done you will be the proud owner of the term insurance plan and can relax as your family’s future is well protected during the time of unfortunate events.

Why Term Plans

Since being a pure term insurance plan, never expect any benefit that you can enjoy yourself but you are securing your family’s prospects during the time of your absence.  Hence such plans should form an integral part of your investment planning.  Never go for the endowment, money back plans or the full life policy where the sum assured will be less and the premium paid will be more and the overall returns would be much lesser in comparison with any other products.

But when buying such online term insurance plan just give only the true info about yourself and never ever fudge or hide any other info which may make it harder for your family to claim the sum assured during the time of unfortunate death which may be even worse than not taking the term insurance at all.

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As we all know that term plans are pure protection plans which does not have any survival benefit attached to but can only be benefited by your family in case of unfortunate death of the insurer during the policy term.  This is the pure form insurance that one should definitely have unlike the endowment plans, money back plans or even the much hyped ULIP plans which are nothing but investment cum insurance plans where you get to enjoy the benefit upon your survival.

Why Term Plan

Unlike the other insurance policies, term plans should definitely feature in everyone’s portfolio allocated for the insurance.  These term plans are ideal for anyone who have dependents who are living out of your income and cannot survive without it in case of sudden demise.  If you have term plan, the amount insured will be given to your family who can use it.

How to Buy Met Protect

1. Just visit the Met Life Insurance website and choose the MetProtect plan and then choose the amount that you desire which you would feel would be ideal for your protection of your family in case of unfortunate death of the insurer.
2. Choose the duration for the cover of the term plan (ideal to choose the maximum years for better protection)
3. Just fill in the proposal form given with all your details truthfully and correctly
4. Pay the premium via credit card/debit card, cheque or even the IVRS.
5. Just get the documents required (will be told at the time of buying the plan online) ready so that the representative from MetLife will come and collect it.
6. After that you will need to undergo medical tests at your place without any additional charges in which a medical personnel or tem authorized by MetLife will come and visit you depending upon your availability.
7. Finally after everything is done successfully you will be sent the policy documents via the courier and you are now officially the insurer of the Met Protect Term Plan from MetLife.

Features of Met Protect

• Lowest premium since brought online
• Even lower premium for the non-smoker
• Different premiums for female insurers
• Tax benefits under section 80C on premium
• Minimum and maximum entry ages 18 and 60
• Maximum expiry of policy 70 years
• There is no limit for the sum assured amount
• Flexible premium payment option (Single/annual/half yearly)
• Death benefit for the beneficiary
• No maturity or surrender value benefits

Free Look in Period

After buying the Met Protect Term Plan online you find some of the terms not in line with what you had expected or didn’t want to continue with your policy you can just cancel the policy within 15 days by returning the same to Met Life within that time frame and you will get the premium refund minus the medical exam expenses and stamp duty charge, etc.

Exclusions with MetProtect

There are some exclusions applicable for this pure term insurance plan as well like suicide within 1 year of the policy start.  There are also exclusions on certain travel where travel advisory had been advised.

Verdict

If you have not brought any term plan for yourself yet and looking to buy one, then you can surely try out this pure term plan, Met Protect from MetLife which on the whole looks like a very promising term plan and the premium that you are going to pay for the happiness of your family during your absence too seems to be reasonable.  It is a must to have a regular term plan rather than buying those useless endowment, ULIP or money back insurance plans.

But try to be as truthful and frank when filling the insurance claim form as well as with your medical examination as you don’t want your family to be denied of the claim during your absence simply due to the fact that you have hidden or given wrong information regarding your health or other habits (read smoking or other bad habits) you may have!

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• Birla Sun Life Insurance (BSLI) Foresight Plan

The minimum premium amount for the BSLI Foresight Plan for the single-pay plan is Rs. 2 lakhs and while for the 5-years option it is Rs. 1 lakh per year.

Life Cover

The life cover for the Birla Sunlife Insurance Foresight Plan can be chosen by the insurer depending upon the requirement.  The minimum life cover being 1.25 x basic premium for the single premium option while the maximum life cover is 5 x basic premium for the single premium plan.

The minimum life cover for the 5-pay option is 10 x basic premium while the maximum life cover is 300% of basic sum assured.

Investment Options

With the Foresight Plan you can choose the investment option between guaranteed option or the self-managed option.  With the guaranteed option the investment is made at the Foresight Fund and you will receive the minimum guaranteed maturity benefit by way of optimization of the entry as well as gains from the stock markets.  All these will be calculated via their own calculation and computation using the Net Invested Premium (NIP) value, etc.

Benefits of Foresight Plan

• Maturity Benefit will be decided upon the fund you have chosen, i.e., the guaranteed option or self-managed option.  With guaranteed option you will receive the Guaranteed minimum maturity benefit.  While for the self-managed option you will be getting the fund value as the benefit.
• Death Benefit will be in the form of Basic Sum Assured plus the fund value.
• Surrender Benefit can be availed after 5 years of policy existence and you will receive the fund value as well as the refund of the mortality charges for the remaining duration of the plan
• Partial Withdrawals can be made for any number of times for this policy from BSLI
• Policy Loans can be availed with this plan.

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