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Term Insurance Companies: All You Should Know

Until now, buying a term life plan was never that easy. We, at Coverfox.com will help you step-by-step to decide the right term-life plan. When we are on your side you don’t have to worry. We have done all the hard-work to simplify the selection process based on your needs.

The basic process before opting a plan is to identify your needs, compare insurer, evaluate based on the key factors and then select.

How to Select the Best Term Insurance Company

Key factors that affect your sum assured and premium

  • Age: As age increases premium increases, because with the age, the chance of getting prone to life-threatening illnesses and diseases are more as compared to someone at a younger age. Thus, if you buy a term plan in 30’s the premium you pay will be less than at 40’s.

  • Gender: Insurance companies take a ‘life expectancy’ into the account while calculating the premium. For this reason, some insurance companies offer a lower premium to women as compared to the men, because as per studies women are believed to live longer than men. Additionally, some companies offer discounts to women on a term plan.

  • Annual income: Generally, the sum assured in a term plan is more or less 15-20% of the annual income of an individual. Type of job: Depending on the risk factor involved in a job premium will differ. Higher the risk higher the premium. The premium for the same assured will be higher for a person working as a fireman than that of a person working having a desk job.

  • Smoking habits: Yes, smoking habits affect your premium amount. A non-smoker pays comparatively less than a person who smokes.

  • Type of Payout: Depending on the type of payout you choose when buying a term plan will affect the premium you pay. You may opt lump sum benefit or income benefit as a payout.

Factors to Keep in Mind While Comparing

Claim Settlement Ratio
Whenever you compare, do not forget to check a claim ratio of the insurance company. Always check claim ratio of one insurance company with the other. A claim ratio number indicates the number of claims settled in the previous year. It is advisable to go with the insurance company having a higher claim ratio number.
Riders
Have a quick review for the ‘Riders’ offered by an insurance company. Riders are the way you widen up your base term plan. There are few common riders offered by every insurance company while few companies may offer additional riders apart from the commonly available riders.
Premium Rates

The premium may differ from insurer to insurer, but this should not be the sole and primary deciding factor. Though some insurance company may offer the same sum assured at a high premium chances are claim ratio may be higher too. Moreover, you must checkout ‘view details’ when comparing the term plan offered by each insurance company to know inclusions and exclusions, as few insurance companies offer riders in their base plan itself which may be the reason for higher premium.
Deciding Sum Assured
Generally, the sum assured is 15-20% of the annual income. But you must also consider other factors before fixing the sum assured. You must consider: - Outstanding debts and inflation - Income replacement in your absence to take care of your family expenses The thumb rule: Annual Income X 10 or 15times + Loans/ Liabilities (If any)

Term Insurance Plans offered by Coverfox

Aegon Term Insurance

Aegon with Bennett, Coleman and Company Limited launched Aegon Life Insurance Co. Ltd. Headquartered in Mumbai with 4.4 lakh happy customers across the country, Aegon Life Insurance Co. Ltd is one of the oldest and international insurance provider, providing life insurance, asset management, pensions. With more than 170 years in providing life insurance Aegon has come a long way to help their customers to reach their long-term financial goals.

Plan offered:

  • Aegon Life iTerm

Edelweiss Tokio Term Insurance Co. Ltd.

Plan offered:

  • Edelweiss Tokio Total Secure+
  • Edelweiss Tokio My Life+

Future Generali India Term Insurance

A joint venture between a Future Group and Generali Group. Future Group is one of the top retailer in India and Generali Group is a global player in insurance and financial market since 1831. With a vision to protect and enhance their customer’s life they have sold more than 71 lakh policies across India.

Plan offered:

Future Generali Flexi Online

HDFC Standard Term Insurance

A leading life insurance company, HDFC Standard Life Insurance (HDFC Life) was formed as result of partnership between HDFC Ltd and Standard Life. HDFC Life is long-term life insurance provider providing range of products to individual and group insurance including savings and pensions plan.

Plan offered:

  • HDFC Life Click 2 Protect Plus Life
  • HDFC Life Click 2 Protect Plus Extra Life

Max Life Term Insurance

Established in 2000, a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. started their operation in 2001. Max Life Insurance was awarded as “Best Underwriting Initiative of the Year” in the Asia BFSI Excellence Award. With a strong vision ‘To be the most admired life insurance company,' Max Life recorded Gross Written Premium of Rs. 8,172 crore with sum assured of Rs. 2,26,701 crore in the FY’15.

Plan offered:

  • Max Life Online Term Plus Basic Life Cover
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