Did you recently bought a Term Insurance from some other Company ? , because here comes iTerm , the new sensational Term Insurance from my favorite Aegon Religare . This product has power to change the way Indians Look at Insurance . iTerm is currently the cheapest Term insurance in market , not only cheap , its dirt Cheap .
Imagine how much Rs 8162 provide as an Insurance cover ? I went to their website and found out that I can get astonishing Rs 1 crore Insurance for tenure of 25 yrs (My age is 26) just for Rs 8162 (including Service Tax)
Update 18th Dec 2009 :
Disclaimer : Please note that this is my personal View and should not be taken as Promotional Review , Hence take decision only after you are satisfied . The customer care of AR is not working well and hence the user experience is not that great . I personally feel it will get better in coming week and months . So I will buy mine only after that . If you are concerned about Security and do not understand Insurance products and their pricing , please do not get into this product and stay will well known names like LIC and SBI or HDFC . Thanks
Main features of iTerm Term Insurance
- How to Buy : Can be bought “only online” from Aegon Religare website. (Only Internet Explorer Supported)
- Sum Assured can be Minimum – Rs. 10,00,000 , Maximum – No limit (subject to underwriting requirements)
- Entry Age : Minimum – 18 years , Maximum – 60 years
- Policy Term : Minimum – 5 years , Maximum – 25 years
- Maturity Age : Maximum – 65 years
- Premium Payment Frequency : Only Yearly
- Free Look up Period : 15 days (you can return the policy if you dont like it)
- Service Tax : Right now iTerm Shows you all the figures inclusive of Service tax . So in the above example I took , The total premium is just Rs 8162 (Smart company)
- More Details : iTerm Brochure or get more Information by calling on 1800 209 9090 .
Comparision with other Insurers
If I compare Term Insurance Premiums of Different Insurance Companies , iTerm Comes out to be really really cheap , The second cheapest Policy around was 85% more costly than this , and it was ICICI Pru Protect . I found this amazing tool which can compare Premiums of Different Insurance Companies with iTerm Term plan (Thanks to Ganesh)
Some Quotes
- 30 years Male , Tenure 25 years , Insurance Cover 50 Lacs , Premium 5600
- 30 years Female , Tenure 25 years , Insurance Cover 50 Lacs , Premium 4850
- 35 years Male , Tenure 25 years , Insurance Cover 1 Crore , Premium 14500
- 35 years Male , Tenure 25 years , Insurance Cover 1 Crore , Premium 11800
- 50 years Male , Tenure 10 years , Insurance Cover 50 lacs , Premium 17200
- 40 years Male , Tenure 20 years , Insurance Cover 75 Lacs , Premium 14925
- 35 years Male , Tenure 20 years . Insurance Cover 60 Lacs , Premium 8220 (11640 if Smoker)
My Notes
iTerm Term Insurance was announced at Bloggers meet in Mumbai on 21st Nov , 2009 and I feel proud to tell you that “Jagoinvestor was also invited” to be part of the Blogger meet and part of Discussion on iTerm and overall Insurance Industry . Though I was not able to go there personally , I had one representative attend the meet on my behalf (Thanks Abhishek Chandran) .
From the day Aegon Religare was Launched, I always knew that this Company has an attitude , It really know what to do and How to do it in Indian Insurance Sector . I think iTerm is one of the best products launched in the history of Indian Personal Finance System . You can not miss this product , especially if you are still looking for Insurance. iTerm is a value for Money . India had a total internet base of over 60 million . I am sure that this product will rock our Insurance Industry and in coming years Aegon Religare will lead the Industry for at least Pure Protection Plans .
Important Doubts
What should you do if you already taken Term Insurance recently ?
- Check quotes for your self , I am sure It would be 40-50% cheaper than what you are paying today . So better to switch if you have just 1 policy , Or if you were smart enough to split your Term Cover into two Policies , then stop the higher premium one and take this iTerm and continue the other policy .
You dont have Term Insurance but you are Planning to take one ?
- You are the perfect person , Not that you have not done the sin of being without Term Insurance till now , Your timing is perfect
. Go for this .
Make sure you dont miss the future Updates , Subscribe through Email for FREE !!
But I am a hardcore fan of Endowment and Money back Policies ? Why do I take Term Insurane when it does not pay me anything back at the end ?
- You read This (Big Sigh)
Is it Safe to Buy Online Product from This company , I trust public limited Companys only ?
- Here is the Answer of Are private Insurance Companies Safe . Regarding Buying online products , dont worry .. Indian Insurane market is much advanced these days and we already have companies like ApnaInsurance and InsuranceMall where you can Buy , Sell , Manage and even make the Claims for your Policies .
I want to go for a Big Enough Cover and Want to take only iTerm , no other . What should I do ?
- Break your Policy into two and take two policies . so Instead of taking one Policy for 1 crore , take two policies of 50 Lacs .
How to Buy iTerm Term Insurance online ? Can I get a Demo Please ?
Below is a Presentation with each slide showing you each page you need to fill while Buying iTerm Term Insurance online , Make sure you see it in Full screen to get a better feel .
If you are reading this in Email , you can see the presentation on the Blog . Readers with decent Internet Speed can also see Video Demo on Youtube.
- Are you a Jagoinvestor Fan , let Manish know what do you think about this Blog , Fill the Guest Book
Shortcomings
Nothing is perfect and Everything has shortcomings , and so has iTerm , Which are
- Will take time to reach in Rural Areas as iTerm can only be bought Online , because of this the first layer of target audience are people who have access to Internet . Aegon Religare need to formulate a Strategy to Capture Rural market .
- As their is no agent involved in between there are many people who would not be able to keep track of yearly payments and they are more vulnerable to forget the payment unlike the scenario where agents made sure premium was paid on time , Not sure how far its an issue , tough not a big one .
- iTerm came out with this Policy without Much Advertisement and hence it would take some time for people to know about this .
- There are no Riders available with this Policy , which may look little bad , but the primary objective of Cheap cover is provided , so I think its fine .
- Company is pretty new , so it will take time for the company to gain confidence , and given its pretty cheap premium , its subject of Crticism and Suspicion form general public .
Conclusion
iTerm is a innovative Term Insurance, Its a must have Product in everyone Portfolio because of its Value for money and amazing simplicity and importance as a Life Insurance Protection . Aegon Religare is showing some great leadership in Insurance Area and the only thing I am waiting for is its IPO 
.
Comments Please , Are you going to take iTerm Policy ? Do you need any more Insurance , Please share with us in comment and feel free to raise more doubts .
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Hi Manish,
As per slide no. 10 , what type of medical tests we may have to undergo and also what documents we may need to submit after buying it online ?
Have you got any call from them ?
Regards,
SB.
I am not sure about the details , you should talk to the Customer care for that . I didnt buy the product , just went till payment point and then did not buy it ..
Manish
Interesting! We both have written on the same topic
Even I wasn’t aware of the product until one of my blog reader asked me to review this plan! Seriously, they need to look into their marketing strategy to get a huge customer base.
.-= Mohan´s last blog ..Aegon Religare iTerm Plan =-.
I was aware of the product , as I got a call from their office in Mumbai to attend the bloggers meet . yes , they need to look at marketing of product seriously .
They have to first answer how come they are offering it so cheap and why others are not !! .
manish
Indeed it’s a cheap term insurance plan. But I don’t know it’s deep in mind that private companies give junk reasons to settle claims. since insurance is a long term commitment, I am worried if they say so after 20 years.
Can i get claim settlement details of aegon religare?
I accept that the claim rejection rate for LIC is the lowest and higher for other companies , However We have to wait and see how does AR fairs in that .
Most of the claims are rejected because of wrong data provided , no proper documents , etc .
manish
Nice post .. Thanks for sharing.
After completion of policy term will i be receiving any money back ? If yes how much ? Ex for Term 20 yrs ; Permium – 10000
Regards,
Sai
Sai , you dont get back anything in Pure Term Insurance .
Manish
Dear Jago investor,
One important point you should include in your analysis:
The plan does not allow any “Accidental disability and Dismemberment rider” with the plan.
Consider a case, I am 30 year old, I buy i-term for Rs 1 crore by paying aprox Rs 11 K per annum. Next year, I meet with an accident and lose my eyesight or both legs. This plan is useless.
This is the biggest shortcoming. Term insurance plans are typically aimed at young population. In the early years, the biggest risk is accident and more important is accidental dismemberment. This plan does not address it. This is the biggest weakness in the plan.
I trust you will highlight it in your review.
Regards,
Raghu.
Disclosure: I am neither a financial planner nor an agent of any life or non-life insurance company.
Well..
You are correct that they dont provide the riders , But anyways it comes with an extra cost , What stops you to take an accidental and disablement insurance from health Insurance company ? What if its not with the policy as Rider .
I know it would be little overhead , but overall its a win win situation . Dont you think like that ? Riders not something which you get free anyways .. so better buy it as standalone products .
Manish
A stand- alone accidental insurance policy is costlier and more important, getting the claim settled from a non-life insurance company is tougher.
Second and more important point:
As a 30 year old, my life is exposed to the risk of death due to accident and risk of permanent disability. This is the biggest risk I face as a young working professional. If my policy does not cater to it, it is useless.
I think we have to look at the needs first and they accordingly chose the products. We in no circumstances, first look at products and accordingly create/ mould needs.
This policy unfortunately does not offer a ‘much needed and essential term life cover’ and hence I will not buy.
Regards,
Raghu.
This is an excellent point. I do think Insurance is not something that one should go “cheap” on. Better off paying a few more bucks for a comprehensive policy. Thanks for bringing this up.
Hi Raghu,
Agreed, this plan does not offer any rider for accidental cover, and it concerned me as well. The strategy which we need to use is to split the plans in two. At your age, which is exactly the same for me, you can buy plan for 50L for say 5700-6200 from Aegon in addition to this buy a pure accident and diablity cover for 50L from National Insurance which will cost you approx INR 40 per lac irrespective of your age. Since accidents are not linked to age, why to pay more as riders. Any rider will not cost less than INR 100-150 per lac.
Hope this combination helps. Keep this in mind that for natural death (which is unlikely for age group) you are covered for 50L and for accidental death you are covered for 50L from Aegon and 50L from National Insurance(this also covers disablity).
Cheers,
Vikas
Vikas
Nice to see your comments . Can you give more details of this policy you talked about . Seems nice
Manish
“I accept that the claim rejection rate for LIC is the lowest and higher for other companies , However We have to wait and see how does AR fairs in that .”
Dear Manish,
I would hesitate to buy insurance from a company with no knowledge of its policy rejection rate. In a term insurance policy policy rejection rate is more important in my view than cheaper premiums. However I agree that a person should furnish clear info without hiding anything.
Also lure by cheaper premium why should a family ” wait and see how does AR fairs in that” the painful way?
I hope its not like they show in movies:
Where these firms have a claims checker who gets a commission for finding a legal reason for rejecting claims since its cheaper for the company.
When it comes to LIC I know service is lousy and they take an eternity to settle claims. However they are usually not as thorough as other and is probably the reason why rejection rate is low!
Also a term policy having no riders is not useless! It is better to take independent accident and critical illness covers 9in addition to mediclaim). This way the company cannot refuse to continue the term plan after a critical illness or accident.
One final point: You keep advising people to get two term polcies. Some firms like Kotak clearly state that the premium listed in the webiste is only if no other policy is taken with someone else.
This has two issues:
(1) The second term policy maybe costlier because of a pre-existing policy. Can you confirm this?
(2) After you get the second policy should one not declare this to the first company?
Will failure to do so result in a claim rejection? Also even if the info is declared it should be properly entered into a persons record. This also must be ensured.
The way I see it as long as a person is completely transparent and honest when getting a policy the chances of rejection is nearly zero. As someone I heard of did, before buying a product get the rules enlarge the fine print by photocopying, clarify all rules from the company (not the agent) if possible get it in writing that all rules have been made transparent and then go for it. This way a single term policy maybe good enough.
Sorry about the long comment
Pattu
Pattu
thanks for your long comment , It gives me opportunity to discuss some other things
When I said “We have to wait and see how does AR fairs in that .” , it means that buyers who are concerned with Claim rejection rate should wait for some time (which can be years) and only when they are satisfied with it and ready to go with it psychologically should buy it finally . It does not mean that one buys it first and leaves it to fate . I want to clear this point , May be I was unclear .
(1) The second term policy maybe costlier because of a pre-existing policy. Can you confirm this?
Ans : Yes , Company takes this information , As per the rule of insurance , Life Insurance is not some thing which one should use as a tool to make money , So a person should not be insured for more amount he deserves , A normal person with insurance requirement of X can not take 10X insurance cover , Thats the reason companies make sure that you already are not covered for obscene amount .
If yes , they can either deny the Insurance or charge a bit more (need to make sure why premiums can be high).
(2) After you get the second policy should one not declare this to the first company?
Will failure to do so result in a claim rejection? Also even if the info is declared it should be properly entered into a persons record. This also must be ensured.
Yes , claim settle ment can be rejected and this happens . one should always make sure that they provide all the possible information to insurance company which can form a basis for rejection anytime in future .
Note : the Primary purpose of spliting your Insurance is to create a situation where you can decrease your Insurance requirement by just stopping one policy later if you wish . So if you dont want to go for two different companies thats fine , split it with a single company.
Final Note : No one is perfect , Neither Aegon Religare , nor Jagoinvestor . We can hear some one and think about it , but final decision has to be yours , If one is not comfortable with an idea , Its totally fine that he does not take it .
So a for people who are wondering what will happen at the end . its all risk appetite and faith in something .
I personally am a mathematical person and like to take decision backed by Probability and my faith in some thing , So i personally look forward to take this Policy , Can I fail ? Yes , obviously , Its life
Btw , Did you know that As Per IRDA Report , LIC has the least solvency ratio ? Which is 1.5 . Every company is suppose to maintain solvency ratio of atleast 1.5 and LIC has exactly 1.5 , from past some years LIC is having some hot interactions with IRDA on this . Solvency Ratio is a measure of how solvent a company is when it comes to paying the claims in case of Emergencies or unexpected events .
Manish
Dear Manish,
Thank you for your response. I am shocked to hear about LICs Solvency ratio! Or perhaps someone who knows about LIC well will say they are NOT surprised!!
Yes I understand that one should not listen to your views blindly. The problem is if you listen too many people then you are simply confused and may end up getting something bad!!
Well one has to evaluate a product as thoroughly as possible stop at some point make a decision and hope its the right one!
Thanks for all your articles. Your efforts are deeply appreciated.
Pattu
Thanks for your Understanding
Again , Solvency ratio is a indicator, but LIC is a state owned Company and hence in times of crisis , no doubt Govt will enter and finally resolve the matter (Hopefully) .
Manish
Hi Manish..
Going by what Raghu has said, will not be better to consider the normal term plan that AR has, with increasing cover along with accidental rider ?
Your Views…
Thanks,
Shantharam
It would still be costly than a iTerm + seperate Accidental cover . the problem with Regular Term plan with Rider is that once you are diagonaised with Some critical illness or they pay you Accident cover , your life cover stops !! .
So better go for iTerm + Seperate Cover of Accident from some Health Insurance , I would suggest for proper Health Insurance itself
Manish
Dear Manish
We would like to see a nice article on Health Insurance.
hmm.. Let me try to plan about it . I will gather some Information and come up with a series of Posts .
Manish
The person who would feel really bad is the one who took a level term plan with Aegon, say about six months earlier without riders. A 35 year old will have to shell Rs. 35,000 as annual premium for 1 crore 30 year term policy. With iTerm the premium is only Rs. 14,000 or so!!
He would even more frustrated if he was net savvy
Also that the level term plan from Religare I think has come down in importance except for riders and 30 year duration. I think Religare should explain how it can offer a product which is Rs. 20,000 less (we know obvious reasons)
Also the item is not something one buy sitting before a computer for someone in their 30s or 40s if they some health condition.
I met two Max New York insurance agents today. They were speechless when I showed them the iTerm plan! For the above details Max New York had a premium of Rs. 43,300!!
They later said New York life is a 165 year old company! I told them that Aegon is a 160 year old company!!
For the first time in my life I sold something to a salesman!!
Lol !! that was good .. I am sure even a lot of agents have no idea that they should start looking for a new job !! .
anyways ., I think yes , AR should come up with the explaination on how they can provide it so cheap !!
Wonderful plan from a wonderful company! I must say…
After reading the comments from various people, I guess I can clarify many points that various readers have (mis)understood
a) If a person buys the Normal Term Insurance plan from AEGON Religare Life Insurance, he will not be questioned whether he has Insurance policies from other companies. The whole claim will be settled, (if it is a genuine one) irrespective of whether the person was insured from any other companies.
So, the question of the term policy becoming costlier does not arise. (The premiums become costlier, if the medical reports are not satisfactory)
[Everyone needs to declare about their medical conditions honestly to avoid a claim rejection.]
b) It is advised not to take Critical Illness(CI) and Accidental / Disability Insurance policies as “Stand-alone” since the costs are EXTREMELY high for a CI cover and the premiums are decided on the “Real-age”. The premiums increase as the age increases similar to the Medical Insurance.
c) Medical Insurance companies provide the coverage for 1 or 2 years (max 3-5 yrs) & the premiums are increased as the age increases. If we take the Critical Illness covers from a General Insurance company, the CI rider is limited to a maximum of 5Lakhs.
In India, we have very few Life Insurance companies who provide Critical Illness riders for more than 5 Lakhs (LIC limits it to 5 Lakhs)
d) Critical Illness works out to be cheapest if taken as a Rider from any of the Life Insurance comapnies. For example, it works out to be around Rs 2500/= for Rs 10 Lakhs coverage in case of AEGON Religare. The premium remains constant throughout!! I know this very well since I have taken it
e) Couple of Insurance companies do not provide CI rider along with the term Insurance (Weird). Here also AEGON Religare has the edge since they provide the CI till the age of 65 Years which None of the General(Medical) Insurers provide.
f) If a person is diagnosed with Critical Illness, he will be paid the entire amount if he survives for 30 days after the Critical illness occurred. Once this is paid out, the term insurance will still continue.
For example: If a person has opted for Life cover for 25 lakhs + 15 Lakhs of CI Rider, he will be paid 15 lakhs in case of CI, & the term cover will still continue. He needs to pay the premiums for the life cover only.
Similar thing holds good for Accident / Disability cover also.
Those of you who are very serious about taking a Critical Illness cover should really consider what Shantaram has told (Normal cover + CI rider + Disability / accident cover)
Wow … Thats lot of information .. I was not aware of lot of things .. Thanks to Guru for wonderful explaination
. So the way I can think of iTerm is that one should go for iTerm + ( Normal Cover with CI and other riders ) . That way it would be cheapest and covering for all the things 
Manish
Dear Guru,
Thanks a lot for the info. However can you point me to a brochure on riders of any compamy which explicitly states the fact that life cover will continue after rider payout if relevant premium is payed properly? I cant find this statement in AG website.
The point is when I buy from an agent I will ask the above question and verbal assurances of the same are not good enough. Not stating it in the brochure is also not good enough. It has to be in black and white. If someone could point out where this is states explicitly it would be convenient.
pattu
Nice ..
Thats the way to go
Manish
Sorry I spoke too soon:
“Following an AEGON Religare CI Rider claim, the Death Benefit under the base plan and any other rider benefit remains unaffected’
http://www.aegonreligare.com/critical_rider.php
By ‘CI rider claim’ I hope it refers to CI rider payout! However a similar statement is not found for AG ADD rider!
pattu
I just saw that .. I was not aware of that . thanks man
Manish
Sorry about repeated posting. But riders have to evaluated more carefully.
cost of ADD rider is premium very cheap however:
http://www.aegonreligare.com/addd_rider.php
If 50% of the ADDD Rider Sum Assured has been paid on Accidental Dismemberment, only the balance 50% of the ADDD Rider Sum Assured will be payable on any further insured event, be it Accidental Total and Permanent Disability or Accidental Death or further Accidental Dismemberment.
Will the sum assured on life be pain on accidental death? Or does this mean that Accidental death is treated separately from natural or CI related if a ADD rider is taken. If true This is a disadvantage. Because If a person dies an accidental death many years after a 50 % ADD claim he will get only the remaining 50% ADD amount.
Again if true its best to take a personal accident policy New India Assurance or United India Assurance. Unlike a CI policy the company cannot outright reject an accident policy based on age.
This is why explicit documentation is important.
pattu
@Guru
Can you comment on what pattu said ?
Manish
Here is my feedback
called their customer care 3 times since Nov 23,2009.
2 Times I waited for around 10 minutes, after that decided to use Call back facility, gave my number/name to their voice mail, Haven’t received Call Back YET. I think 10 days are sufficient enough for reading all voice mail.
1 time, call got connected in around 8 minutes, so it is fine…
Their Online purchase model lacks, doesn’t have sufficient space for Address/Nominee Address, Doesn’t count for special character..
I have send feedback about same to customer.care@ and one more lady from whom I got qoutes in my mail. Yet to received any reply.
Bottom line *customer care sucks*, if anyone has better experience let me know
Bottom line, If I die today, and my family has to wait so long for submitting claim or for getting claim status, I would rather prefer to use another Insurance company whose customer service is better than these guys.
Low premium is *not* the only thing which One should look
I am sorry to hear that . I have tried it myself once and it was not a good experience . Let me forward your experience to an official .
Manish
I needed some clarification, so I called their helpline many times over the course of a week. I was on hold every single time. I also left a voice mail with my contact number. Like above user, I am still waiting for their call. If this is their responsiveness at the time of selling, I fear their response (rather, lack of it) in the unthinkable event like claim settlement.
Manish, i truly find your blogs quite informative. But, in this case the product does not deserve such glowing reviews. Please write based on known experiences and not on company PR exercises. Thanks.
Sree
Yes , thats a problem . Not explicitely but you can get the feel about this problem in shortcoming section . I have talked about the product per se , not the customer service ,, I will take care next time . Thanks for bringing it to notice .
Manish
hey manish
was looking for a good life & health insurance…
called up reliance insurance guys for some queries and got a call back in 48 hrs…
Great
They seem to have very good customer care . Let us know how was your experience overall .
Manish
Hi Manish,
Thanks for making me aware of this ploicy.
Can this policy be used as a tax saving mechanism under 80C or 80D or any other section ?
Vikram
Yes, it comes under sec 80C , infact any Life insurance comes under sec 80C
Manish
Dear Manish,
Speaking again of Term insurance from LIC and others, why do you think Aegin Religare is good? They are so new (as you have mentioned several times) that we cannot even create statistics for claim settlement ratio. New players in insurance always seem to be making a loss at least in the first few years (IDRA data compiled in a blog. I forgot the address!). SBI life has started making profit only in the last 3 years (good for you! since I think you have their term plan). I would expect Aegon also to start getting profits only a few years from now. We have no idea about their solvency ratio (at least its on not the IRDA page)
Under such circumstances it would be difficult for a 35 year old like me on the verge of fatherhood and single earning to rely on Aegon or other private players. SBI should be a little better since it has strong financial base. On the other hand for a 25-26 year old like you: suppose he/she takes an Aegon item policy. If the company seems to be doing badly he/she can always switch to LIC or SBI at 35 without too much trouble.
However if I consider a switch in my 40s I will be screwed with higher premiums.
The claim settlement ratio of LIC is simply too high (IRDA again).
LIC rejects 1.13 policies in 100 while others reject 10.17 policies in 100.
The chances of my policy being rejected by LIC is 10 times lower. This is were the higher premium of Amulya Jeevan scores.
http://www.irdaindia.org/annual_report/annual_rep_2007_08.pdf
(page 40)
http://www.irdaindia.org/ar06-07/ar-2006-07-eng.pdf
(page 19)
Assuming customers give data with the same level of honesty and frankness to all companies because of ignorance or carelessness LIC should also reject claims with more or less the same rate and not 10 times lower! (It was 13 times lower in 2006-07!!) LIC with even its least solvency ration is able to settle a large no of claims. This is impressive.
We can’t just say all the claims rejected by private players is due to incorrect data. This is improbable.
If a company settles a lot of claims then its net profit will be low. This may lower the solvency ratio. After all there is more than one definition of solvency ratio. If we go by what the IRDA uses then solvency ratio is directly proportional to available solvency margin (ASM). ASM is excess value of funds a company has. If a company settles a lot of claims then ASM will be lower for it and so will the solvency ratio.
This is why I like LIC. For someone my age and with my commitments its not just low premiums it peace of mind that if I die my family need not run from pillar to post. Also if you have health problems companies can twist it around to their benefit. Considering the high claim settlement ratio LIC does not trouble people too much I guess which is a big relief.
Of course being a decade younger than me I don’t expect you to understand. The reality quotient of old age and dying may possibly for a person in 20s than someone in 30s or 40s. Trust in the company is major issue for older people. Aegon Religare is too young to even form an opinion. There its best suited for young people who have started their careers cant afford too much premium but can afford to switch insurers a few years later.
yup , i have to admit that your points are valid and I understand the trust part . Now the discussion is shifting towards the Risk taking capabilities as you mentioned . With your age and responsibilities you cant take the risk which a 25 yr unmarried like me can take , thats fair .
One point is very true that the company does not have a record to compare , and that can happen only after some years . The main reason I am more confident in this company than any other is because of the leadership and innovation this company is bringing in the sector . AR is mainly focused at Term Insurance and understand what exactly India needs badly . It emphasises on the basic reason of Insurance , that the main reason of my interest in the company . So yes , Like every other assumption , this can also fail .
Because of this faith of mine , I personally would like to take some part of my insurance with them if not whole . Its very valid to go for this company or not because of individual risk appetite and preferences . Thanks for the data and insightful comments . thats really the proper way a preson should take his decisions .
Manish
Dear Pattu,
Very well said, i agree with your comments.
Rakesh
Here are few more points related to the discussions that are happening here in this forum.
a) AEGON Religare’s Accidental Rider sum assured will be paid out in full along with the Life cover, if the death happens by an accident. For example: If the sum assured is 20 Lakhs and the ADDD Rider sum assured is 10 lakhs, 30 lakhs will be paid to the nominee in case the Insured dies due to an accident
b) Regarding the statement “If 50% of the ADDD Rider Sum Assured has been paid on Accidental Dismemberment, only the balance 50% of the ADDD Rider Sum Assured will be payable on any further insured event, be it Accidental Total and Permanent Disability or Accidental Death or further Accidental Dismemberment” it means that the balance 50% of the ADDD Sum Assured (in our example; it’s 5 Lakhs) is paid if there is Accidental Total and Permanent Disability or further Accidental Dismemberment. If the death happens due to an accident, the normal Sum insured will be paid along with the remaining 50% of the ADDD Sum assured.
c) Regarding taking the Personal accident policy from New India Assurance or United India Insurance: Most of us know that the Rejection rate from a General Insurance company is quite high compared to Life Insurers. Given this, I personally would like to split the cover between a General Insurer and a Life Insurer. Currently I have compared the Personal Accident policies from more than 14 companies (both Life & General Insurers). The premiums are more or less the same; it costs around Rs 100 to 150 per lakh sum assured. One of the advantages of taking it from a AR Life Insurance is that the premiums are constant throughout + I get the coverage till the age of 75 and it’s quite easy to track, since it is a rider along with our regular insurance. However, I myself have split the Personal Accidental Insurance of 10 Lakhs each from AEGON and a PSU General Insurer.
d) The General Insurers seems to have mastered the Accidental / Disability Insurance and offer them packaged in various nice options.
Option 1, which covers death in an accident, works solely as life insurance;
Option 2 also covers the risk of permanent total disablement;
Option 3 additionally covers the risk of permanent partial disablement.
Option 4 additionally covers the risk of temporary total disability. It is this option that provides the most comprehensive accident cover. Option 4 policy serves as a useful ‘umbrella policy’ that small offices can buy for their employees to cover the risk of accidents while they’re on duty. There’s also a ceiling of sorts on the cover you can buy under Option 4; this is set at about 25 times your monthly salary or Rs 5 lakh, whichever is lower. But, believe me; the highest rejection ratios are from this option.
Now, according to my understanding Manish appreciates AEGON Religare because this is the 1st Insurance Company in India which has given the REAL awareness about Term Insurance. Remember a year back, when Irfan Khan ads used the teaser KILB to promote this company. (KILB means Kum Insurance Lene ki Bimari).
Also, I see that Manish always recommends people to split their Insurance needs between LIC and a private Insurer. Incidentally, since AEGON Religare offers the lowest premiums, not only Manish; but most of the other financial planners whom I know feel that it is prudent to go for AEGON Religare if you are going for a private Insurer. The risks associated with all the other 22 private Life Insurance companies are considered to be the same.
If the company runs into losses, in all probability it will be sold to some other Insurer or it’ll be merged with some other profit making Insurer who will still have to respect all the policies which this company had issued. I still cannot comment on the Rejection ratio of AEGON Religare, because they may not have settled many claims till now.
The bottom-line is that we cannot compare Oranges with Apples (LIC cannot be compared to any other Private Insurers). Private Insurance company term insurance coverage should be backed by either Jeevan Anmol or Amulya Jeevan
You are right
Hi Manish,
)
This article comes at a very right time for me. I have been planning to get a Term Insurance from quiet some time and I think that I shouldn’t delay further otherwise I have to pay higher premium.
I plan to take two Term Insurances of around 40 Lakhs each from two different insurance companies. (one I am considering AEGON Religare, thanks for this article
I was talking to some agent today and according to him, we should only take one term insurance of whole amount and not break it, as I am planning. He says that taking two insurances increases probability of rejection. I am not sure on this. Is it ok to have two term insurances from different companies or we should have the whole amount insured with one company only. Need your advice on this.
Regards
Atin
I dont think that insurance agent makes any sense . What if you take 40 lacs cover now with just 1 insurer and then later after 1 yr if you wish to increase it , does it mean that now, you chances of rejection has increased just because you didint take it all in the start .
Ask the agent why the probability will increase , you need to ask question . What i suspect is that he is one company insurance and dividing it in two will result in his commision cut by half because he is involved only in one . Ask him that you have decided to take just one , but not from him , I am sure he will now say that its fine to take two
Manish
LIC rejects 1.13 policies in 100 while others reject 10.17 policies in 100.
One of the reason is that private insurance companies are new. In short, claims for newer policies is subject to greater scrutiny than older policies. This is because chances of fraud are higher in initial years of the policy.
What you need to compare is what is the rejection rate of policies of LIC and private which are say 3 years old.
You cannot compare rejection rate of 2 year old policy and 20 year old policy. Rejection rate of prior will always be higher.
Average age of policy which LIC deals with is much larger than new private insurance companies. And so this statistic favors LIC more.
Very insightful comment
.. thanks for this .
you correct when you say “What you need to compare is what is the rejection rate of policies of LIC and private which are say 3 years old. ” … Oranges must not be compared to Apples
Manish
Dear Ninad,
Fair point. However where does one get this data? In the absence of a credible source we will have to fall back on IRDA’s annual report. Also IRDA’s report only gives the average of all private insurers. We need data of each individual insurer. If an insurer really has a low rejection rate then he would do well to advertise it. This will help develop trust.
LIC does not have a policy for every situation. For example I am considering the ICIC Prudentials criticall illness cover: ” Crisis cover”. Its features are pretty good, 35 illness, upto 75 years coverage etc. However there is no data of claims settled. When I search the net there is a site called mouthshut.com. All the reviews there are terrible for ICIC pru. Who do I trust? Also when the recession began there were rumors that ICICI will fold. So now I am totally confused. I will prefer the critical illness policy from National insurance instead which covers only 6 illness and upto 65 year s because its a govt of india undertaking.
So if the private insurers want support especially from older Indians they should provide claim history documentation and annual reports in their website. Just saying that Aegon, New York life, prudential etc. have more than 100 years experience is useless.
Pattu
Did you consider asking them for claim data ? I guess It would work . No ? Your points are valid , let me try to find some place which gives good data on this ..
Manish
The point is the insurer seldom interacts with the client directly. It is always through an agent/advisor. If you ask an agent (I did ) they will say 98% of claims are settled (incl LIC agents who are the oldest irritants in the universe!). When I ask for proof documentation they make excuses and don’t provide them. This is why it should be on their webpages.
There is one way to decrease claim rejection rates for any insurer. People in the claim settlement dept should sell the insurance! They are likely to tell a customer the finer points. Claims are almost always rejected citing finer points.
The bottom line is (1) more transparency from insurers and (2) more research from customers.
The worst question to ask an agent is “Which policy is best for me”. The way I see the agent is a mere courier between me and the company. He brings the proposal forms, takes them back and brings back the policy document when its ready. I don’t see any need to discuss anything with him. Everything you want to know is there in the policy document. One should read and understand it fully before accepting it. I am quite sure failure to do this is the reason why most claims are rejected. If we leave no stone unturned then rejection probability is lower. So (3) NEVER EVER discuss your insurance needs with an agent. Research adequately and then call an agent to finish the deal, If an agents says there are better policies than what you take he often means better policies for him!!
Very valid points .
I agree that the biggest reason for rejection is because of those finer prints which customer never saw . If one takes all care from his/her side. there cant be any reason why a claim will be rejected.
Good points overall ..
Manish
Dear All
i am working in bankofbaroda and just few days back we have launched our own life insuarnce product(Indiafirst life insurance).After searching for good websites regarding insurance companies , i found this one a real information site.keep it on buddy!
customer needs a good website like urs for better investment.
Nice .. will have a look some time.. mail me the comparision with others
Kudos Manish for such an informative page!!!
I have a different experience (though, not a happy one!) to share about AEGON Religare iTerm plan. Already having a couple of investment (endowment) policies with LIC, I opted for Rs. 50 lakh max. term coverage with iTerm. But to my amazement, after issuing an e-quote, I was flashed ‘Sorry’ message on the very first step (when I wanted to Proceed after entering Employment details). My subsequent attempts also met with the same fate.
Obviously, my next step was to get in touch with their Customer Support, which was pathetic in response. Most of the time, the call never went through and when it did, the operator had little or no knowledge about the product. When requested to connect with the concerned personnel, she simply took my phone no. and promised to get back (which, of course, was not the case). My next stop was the local AR office, which was as clueless about the product as the customer support. Finally, after trying for over a week, I got hold of the official in-charge of this vertical (iTerm). In essence, he informed me that I haven’t met one (or some) of their pre-determined criterion but he never disclosed it even after multiple requests. When pressed for transparency, he expressed helplessness and informed me that it was the company’s policy not to tell anyone about the eligibility criterion.
My specific question to you are:
1) Is AR justified in not disclosing the eligibility terms and conditions for a product before selling? Is this practice legal under IRDA guidelines, rules and regulations?
2) Most likely (that’s what I believe), the objection could be my profession (btw, I’m freelance web content writer) and if it’s so, is AR justified in discriminating against some professionals?
FYI, I’m 30 and my premium came to be Rs. 6177/- incl. service tax.
Looking forward to reading your comments
Thanks
Rajiv
The reason for not giving you insurance can be what you said .. i guess so .. but i am not sure if they are within legal limits by disclosing the reason or not ?
Manish
Well this religare plan is good but not the best here is one the most imp reason for the same:
As term plan is only care for life, and people’ have more risk once they cross the age of 50-55, but if your age is 25-30-35 then your coverage will be till 50-55-60
9max 25 years) and your premium will also be high it you take at later stage….and I believe we should have this facility for longer period.
And I also researched this product when i opt for term plan and and finally I took ICICI term plan, only bec it is providing me the coverage till the age of 65 no matter what is my current age.
My age is 29 and I took this plan last year, so If i calculate it I got this for (65-28) 37 years…which i was looking for i.e till my age will be 65 I will be covered.
And another thing was at the age of 28 the premium was too low, I got it 25 lacks for 4.5 K..
Now i have to pay only 4.5K every till 65 of my to get the life benefit for 25 for my family…
This is what i selected for me after looking all pros and cons, not sure is it help you..but just want to share my thoughts…..
Regards.
Rohit
hmm ok ..
So why do you need cover after 60 when you are retired and not earning .. i believe cover should be till the point you want to be retired ?
No ?
Manish
Dear Manish
suppose i have taken two term life insurance policy.In case of death how the insurance value will be calculated?In your previous comment, you have written that the insured person will not get more than the insured value.how does it work?
If you have two term insurance , you will all the money from both the insurance companies ..
Initially when you take second insurance , you shoudl tell the second one that you have insurance already so that he can decide if you have enough or you need more .. Failing to tell that your insurance can be denied at the end .
Manish
Hi manish …
I am reader of your blog recently n found be happy here.
here i like mention somthing about term plan…..
in term plan all co. maximum maturity age is 65yr. (except LIC)
My age is 35 and recently buy term plan of 25 L (for 35 y Term) so here my insurance will cover up to my age ..70 y.
Do u feel that any one insurance company give insurance up to age 70 ??
I have chek all com. ’s portal and found insurance up to age 65. (in term plan)
i think we all need Risk cover at age between 65-70. am i right ?????????????????
(Thats y i prefer term plan of LIC’s Amulya jivan. )
thanks.
mitesh shah
Mitesh
you are not very much right in that . We need main coverage in the start of our life .. when we earn .. By the time we are 55-60 , we are supposed to have have accumulated enough wealth by then through sound financial planning .. So you need insurance cover more at the start and less at the end ..If you get covereage till 70 .. its great ..else upto 60 is ok
Manish
Manish,
I am on the http://buyonline.aegonreligare.com/buyonline/ and while Calculating my premium, I see that permium for 49Lacs is more than 50 Lacs.
I have selected Age: 26 Smoker: No Policy Term: 25 years
If I select Sum Assured as 50 Lakshs premium comes as Rs 4,650.
But if I select Sum Assured as 49 Lakhs premium comes as Rs. 6,860.
I fail to understand how this is possible or if this is a bug in their website
Thanks!
Atin Agarwal
Atin
Thats looks a bug to me .. or may be its a encouragement to go for more than 50 lacs
… just kidding 
. I have not idea about this .. talk to their Customer care
Manish
it is not the bug, feature/product as designed – Courtesy Customer Care
Yup
Even I confirmed with them . Its something they come up with and its a feature of the product .
manish
Hi Manish,
I was very excited when i first came to know about iterm plan exactly a month back.
But after that i was never able to contact the customer care personal for any clarifications.
I am 27 year old and one point which is stopping me to take this policy is the 25 year maximum limit of the policy tenure.
That means i will be only insured till the age 27+25=52 years. Don’t you think this is a big disadvantage for any one who is within the age of say 30 years.
hmmm.. yeah you should get insurance till 60 atleast .. but stll you can consider them for 50% part … not a big deal
Manish
Hi Manish,
Exxellent post as usual. Looking forward for your series on health insurance..(Iam planning to take one now immediately so hope your articles will come out by next week
I have been doing some reaseach on different health insurance plans. I think ICICI pru and National insurance have some good plans..I have prepared one PPT on this.. If you want I can share the brochures , my ppt with you for your article..
Karthik
Sure .. please share it .. I Will add some things if needed and post it
. I will try to come up with Health Insurance topics soon .
Manish
Q1. Is this insurance company approved by IRDA ?
Q2.Why the insurance cover is only for 25 yrs? n why not for whole life?
If any one survive through 25yrs then after 25 yrs he has to look for another insurance policy for his rest of life to cover his life in future ??Which doesn’t seems to be good.
Ans 1 : Yes , its approved by IRDA . infact Insurance companies are always approved by IRDA . There cant be any company which will not be approved by IRDA
Ans 2 : Insurance Tenure is a feature of Insurance Product which is decided by Company and its acturies .. Its a market product and you are there to choose if you want it or not .. If you feel it does not suit you then you should look for another product . Its not the basic requirement of a Insurance product to be of more than 30 yrs or more than 35 yrs .
Can you ask Mac donald’s on why they are putting onions in their burgers and why the burgers are of ABC color .. Its all about , do you like it or not .. If yes take it , else look for other product .
Manish
Hi Manish
Excellent article on Term Insurance & pros & cons on iTerm.
You have given all relevant points and many have topped up with more details.
As rightly said by you, it is always an individual decision based on his/her requirements and what is important for him/her.
I read that you started online application for i Term & later didn’t go for it. Is there any specific reason for this (i know i don’t have rights to ask you this) BUT just eager to know the reasons since your analysis is very valid and i am sure you will take a calculated decision.
I already have LIC term plan and want to take one more from a pvt insurance (where premium is low) and i Term falls exactly as per my requirement. Do i need to inform LIC to update my existing policy if i decide to i take i Term
I like your comment on probability of company being successful or failing.
Infact term insurance is itself a probabaility game.
Anyone who is taking term insurance (internally beliefs that nothing should happen to him-positive thinking) and takes an insurance due to belief in probability that something can go wrong. Company beliefs that nothing will happen to you.
i.e company betting that nothing will happen to us and we betting otherwise……………
Thanks
JP
I was not looking for buying it .. I was just going through it because I wanted to make that screenshots
for the article . If i need it, i will but it later 
If you take extra insurance , its better to inform the company , however you would be required to inform AR about your LIC policy anyways
Manish
Manish,
I am planning to buy a term insurance policy. I have some money back policies from LIC and Birla Sunlife. Do I need to disclose them at the time of buying another term insurance.
Dharpan
Dharpan
No , you dont need to inform them , there is no such rule from IRDA .
Manish
HI Manish,
Firstly, thanks to everybody for their contribution. It was really enlightning.
I am 22 years old and looking for a term plan. But keeping in mind the max 30 yrs limit, I can get the cover till the age of 52 only.(Except one of the ICICI policy wherein one is insured till the age of 60)
Would it be logical to take the AR iterm plan for a part of my insurance needs, say about half of it?
Amit
Think of it this way .. If you need 1 crore insurance today and you are 22 .. then by the time youare 52 , how much of assets and wealth you be able to generate ? At that time if you die , will your family be dependent on solely Insurance amount or will you have enough assets , bank balance etc ?
I think you can go for iTerm for half the amount , another thing is that iterm max tenure is only 25 yrs , not 30 yrs . does it show 30 for you ?
Manish
Funny.. i have been trying to buy iTerm through the online process.. but yet to be able to do so!! Looks as if their website is having problems, i get stuck at the place just before generating e-quote (i am not able select state and IE8 shows an error). I mailed Religare and got a response back saying it is fixed. It did work for sometime and i managed to generate an e-quote. But now when i try to buy, i get stuck at the same place. I have mailed them again, and hope to see a response soon.
Another thing that i noticed, which is a bit spooky!! For a 30 year old, male, non-smoker, for a policy term of 25 years and sum assured of 50 lakhs, the premium shown is Rs.5600. Try the same for a premium of 40 lakhs and the premium is Rs.6800. What??!! How on earth can Term insurance be cheaper for higher sum assured???
Are these guys really serious? First of all they have a conked website (and no other point of sales) and then they have messed up premium rates!! Hope those are just teething problems.. else i would be skeptical doing business with them!!
Manish – your comments please!!
Ganesh
Regarding Their service .. I agree its bad and needs to improve . I came to know that they dont have launched the product without thinking about scalibility issues .They need to get better soon .
However regarding more premium for 40 lacs then 50 lacs . Thats they way they have desinged it (as per my info , i read it somewhere) . So i guess its for encourage ment to go for higher sum assumed . sounds illogical to me too .. however thats the way it is
Manish
Encouragement to take higher sum assured? I still don’t get it! What benefit will it be for Aegon Religare? Not that i am complaining
but just that i am curious on the reason! They have dirt cheap premiums already, and on top of that they are offering discounts for higher sum assured? What benefit will AR get out of that? I have heard some one say that, too much of good thing can be bad. But in this case i have started feeling suspicious!! (Guess i need to continue with my costly HDFC Term till things are clear!)
Ganesh
Lets wait for some time .. Things will get clear in coming months . Better wait with your current Cover
Manish
Regarding Higher premium for 49 Lakh cover and Lower for 50 Lakh Cover:
I just inquired about it from Custome Care, and they said that it is by design. She explained that the company has some fixed charges in issuing every policy. As the Sum Assured increases, they get reduced proportionately, and hence after some time, they are in a position to pass on the benefit to the customer.
Some insurance companies do it gradually. They have done it at the level of 50 Lakhs. And hence you will find that there is a sudden drop in Premium amount at 50 lakh.
@Manish: Excellent Blog. As a tech-blogger from Varanasi, I greatly admire your blog. BTW, I have been to Sonbhadra a few times, which I believe is the place where you belong to. In fact, it is still within my area of operational job.
.-= Manish Garg´s last blog ..Clean Desktop in Vista / 7 Free =-.
Thanks Manish
I am from Robertsganj , Sonebhadra
. Where are you from ?
Manish
The IE8 issue is because this solution seems to be built in Cordys. It probably does not work in any other browser due to the same reason.
Debanga
What is Cordsys ? that may be the reason I think
Manish
Sorry…I was talking about their Level Term plan. It allows me to get a cover for a 30 yr term.
Is it oly the paperwork thats the difference between level term and iterm? and the premium ofcourse…
Wonder how are they providing such cheap options to the public and others not. Need to read into the fineprints….
thnx for all the help….
ok , so the level term is just like other regular term plans .
Iterm has lot of things missing , like no riders , no cover for more than 25 yrs , can be only bought online (issue for many) .
Not sure how they can provide iTerm so cheap .
Manish
Hi All
Dont ever go for Aegon Religear. I had been trying since I read about this policy on Jagoo Investor. I took all the possible ways to contact there nonsense peoples over Tollfree or paid lines but did not get any responce other than “Put on Hold since I am a valuable customer to them ” . They even dont take efforts to respond to emails also.
Hi Manish
What you are providing to investment society is a 100% returns on 0 investments so keep it up , this is just to tell you dont suggest peoples this policy since these peoples are not answering even to new potential customer, you can imagine the worst with olders onces.
“Cheap services at Cheap premium” .
oops ..
I have reviewed the product , but Its my mistake to not review the customer service, which I feel is not expected when doing product review . I apolosize if you are disappointed . I have clearly mentioned in “Shortcomings” section that Company is pretty new , so it will take time for the company to gain confidence , and given its pretty cheap premium , its subject of Crticism and Suspicion form general public . they need to improve the customer service because of the issues with large scale .
Anyways .. you can wait for couple of months to finally decide if you want this or not . anyways .. some review is better than no review
. What do you think ?
Manish
manish,
As far as your review is ocncerend.. it is good 
atleast it tell abt pros and cons of policy ( not customer services)
I am with you this site.. your main aim for this blog is to spread financial literacy .. I dont think you have to check out the customer service of every product you analyse.. after all any one who is planning to buy an insurance is supposed to take some pain in finding all information and to decide whetehr it is good for him or her
Thanks
Manish
Hi All,
Having read that many ppl have experienced horrible customer service, I gave it a try too….this being my first call regarding iterm to AR.
FORTUNATELY, I was very satisfied with the customer service, believe me my call lasted for only 6-7 minutes….6 min 38 sec to be precise. Also, all my queries were satisfactorily answered too.
Q1) I was unable to buy the policy as I could not select my city…the drop down was not enable…
Ans) There were technical issues which were fixed. I cross checked and yes it was working now.
Q2) I also asked them that there is approx 25% diff between their own products, products being LEVEL TERM and iTERM (for same term and Sum Assured)…
Ans) the lady told me that its the agents commission and the processing fee that makes LEVEL TERM expensive and which is why they introduced the concept of Online Policy.
Q3) I asked about the detailed procedure….as they cannot simply rely on the data entered by any person…
Ans) She replies that online info is verified by a background check and after generating an equote, A detailed list will be sent to you via email and a courier will be sent containing all policy documents. This might take up to three days.
Post 3 days, u need to fix an appointment and their office boy will pick up all the req documents from your residence.
Q4) I queried regarding any medical tests associated with this policy…
Ans) She told me that if they feel like a medical test, they would inform us to get one done…AND..the EXPENSE for the MEDICAL TEST WILL BE BORNE BY THE COMPANY. Yeh hui na faayde ki baat….
Don’t know whether I was fortunate or u guys had a bad luck…..
@Manish –
Yes, absence of riders does gives other policies an edge over iterm…but I wonder if riders are at all needed….this though depends on individual needs…..
thnks………n sry for such a long post….
Many thanks for sharing this . I will add some points in the main article so that people who have doubts will benefit .
Manish
@ Amit
You are really a lucky man !!!! . But belive me I had been trying since a week long but every time I got either a hold request or they ask to record my query. Every time i have recorded my query along with my personal number. But to my surprise I have not received any call from them.
( I am neither an insurance agent nor a Product reviewer this is just what I am facing)
@Manish
Ohh man … I dont want to point you falsly … Not at all !!!! After reading your blogs containts I could realize my insurance needs and I have taken a some good decisions towards financial planning. what ever your reviews , planning calculators and illustrations are one of grate kind of investment documets I have read so far. Thanks and keet it up ….
Niranjan
thanks for the reply and faith in Jagoinvestor . I believe Customer service from AR is not upto the mark it should be and hence we should wait for some months to settle things down and then re look things . I will try to contact AR regarding this .
Manish
Yes…JagoInvestor is living upto its name…gr8 work guys…
After the basic plan, I guess we should also discuss the riders in more detail as they can greatly influence your premium (for those who don’t require riders) and others might just stay ignorant about it (though they should get it but aren’t aware of its need).
Can anyone put some light on this?
thnx………
Amit
I would write an article on it soon .. but for now .. Just remember that riders with term insurance are cheaper because the cost is already factored in for sales and commision in main product , where as a stand alone policy will be costly because they have to spend extra on sales and promotion and commision
Manish
Also, I read the brochure for iterm….
It states –
“Tax Benefits – Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply. Please consult your tax advisor for confirmation.”.
I believe insurance is not solely for tax benefits but still can someone clarify…I guess the company itself is not sure about its policy
Thnx…..
Amit
All Life insurance premiums get tax benefit under 80C ans 10(10D) (no tax on maturity) .
manish
hi manish & all,
q1.
what is meaning of rider?I really didn’t understand its meaning..Can u explain so
i can understand.
q2.
From how many years AR is been in india ?
q3.
what is difference in iterm & term insurance of AR?(answer in terms of benefits)
q4.
Does this company fulfil its promises ?Is it loyal?
Ans 1 : Rider is an added benefit with insurance policy like critical illness or Accidental benefit .You can take it for extra cost . if you dont need it , you can avoid .
Ans 2 : 1 yrs , Do you define good companies by how much old they are , in that case go for LIC .
Ans 3: iterm is a pure protection plan without riders and without any agent in between , Term insurance from AR is regular term insurrance
Ans 4 : you should ask this question in more business oriented way .. What is “Fulfilling its promise” ? or “being Loyal” ? Probably you want to ask “How good is its track record in settling claims ” , “What are the chances that the company will survive in Indian market” ?
So the answer is Its all regulated by IRDA , its a small unorganised market where anyone can enter without meeting the norms . Its also something depending on your risk appetite and attitude towards risk . If you are too concerned or not a risk taker , the best idea would be to stick with some one you trust .
Manish
Manish
“ust remember that riders with term insurance are cheaper because the cost is already factored in for sales and commission in main product , where as a stand alone policy will be costly because they have to spend extra on sales and promotion and commision”
NOT TRUE. for CI: For a sum assured CI benefit of Rs. 6 lakhs:
ICICI Lombard Critical care has a premium of 2457 (yearly renewable)
ARegon Religare Level term plans CI rider premium: Rs. 3348
Of course standalone CI policy has to be renewed yearly or every 5 years while CI rider is for full period of term insurance. But now IRDA has now put stringent guidelines and has said that standalone policies must be renewed up to permissible age limit.
Maybe Accident insurance rider is cheaper.
May be true for Critical Illness . I told that riders are cheaper with Term insurance because I heard this in a talk from FPSB in bangalore.
Do ICICI Critical illness cover Policy cover more illnesses that AR ?
Manish
ICICI lombard covers
Cancer
Coronary Artery Bypass Graft Surgery
Myocardial Infarction (Heart Attack)
End Stage Renal Failure
Major Organ Transplant
Stroke
Paralysis
Heart Valve Replacement Surgery
Multiple Sclerosis
——————————————————————————————
Aegon level term CI rider covers:
1. Cancer
2. Coronary Artery Bypass Surgery
3. Heart Attack (Myocardial Infarction)
4. Kidney Failure (End-stage Renal Failure)
5. Major Organ Transplant
6. Stroke
7. Paralysis
8. Heart Valve Surgery
9. Surgery for a disease of the Aorta
——————————————————————————-
Practically the same, there maybe important differences of course. Anyway the best critical illness policy I found is ICICI Prudential Crisis cover with 35 illness covered. The premium is of course expensive but I think worth it
ok , in that case what i said was correct .. It does not apply to critical illness rider . Thanks for letting this know
Manish
No You are mistaken. ICICI lombard CI policy is practically the same as any term insurance rider and it is cheaper than that offered by AR. Both cover 9 illness.
ICICI Prudential crisis cover is total different policy and is more comprehensive covering 35 illness.
The point is there is at least one stand alone CI policy cheaper than a term insurance CI rider.
So we cannot generalize riders are cheaper.
I was just saying a more comprehensive CI policy from ICICI prudential covers more illnesses and is therefore more expensive. This of course cannot be compared with a rider.
ok in that case ICICI one is better . what i meant was that generally riders are cheaper than stand alone .. But we have this one as exception and may be 1-2 more ..
thanks for finding this one out
Manish
Hi Manish,
I have found your blog extremely informative and visit it often.But I would personally recommend that you edit this particular blog entry warning folks about this company’s customer service.I have already bought this insurance and until the payment is done the system works fine.One is supposed to sign the proposal after the payment and submit the relevant documentation to the company which they personally collect from you at no cost.Until this point no issues.I have done this around three weeks back and after that have sent at least 6 to 7 emails , but no one has bothered to reply.My money is gone and I don’t have the policy with me yet.They don’t even have an escalation matrix on their website to escalate this matter.Sincere request that you please put a warning on this company on this blog entry so that people are not cheated.Unfortunately Cheap here is = very poor customer service.It is a faceless organization and customer care number/email is never answered
Thanks
Suhas
Suhas
your frustration is valid . Its happening with everyone .. However i had a talk with AR representative and they are really sorry for this . things were not suppose to go this way as they claim .. keep patience and let me put some things they told me
Manish
“let me put some things they told me”
Wow! You seem to be relentless in your support for this company after all the negative comments!!
I think its about time someone asked: How much are they paying you? You are not their customer. Due to some “instinct” you think they are good company , they call you over for a PR thing and then you run a big post with no personal experience!!
Hilarious. Don’t lose your reputation earned with some good posts with this crap.
Rahul
Mis-understanding ruins relationships .. This blog has a relationship with each of its readers and I dont want to break it . I have not done anything which is against readers . I am fine with allegations
, but you should have talked to me before putting the comment , that works best .
. You along with other readers should know
but i should give an explaination also
This is the mail i sent to AR on Mon, Dec 14, 2009 at 4:24 PM
————-
Anita
I need some answers of queries .. My readers on my blog are discussing how they are facing issues with Customer care at Aegon religare . Here is one comment from a reader
“Dont ever go for Aegon Religear. I had been trying since I read about this policy on Jagoo Investor. I took all the possible ways to contact there nonsense peoples over Tollfree or paid lines but did not get any responce other than “Put on Hold since I am a valuable customer to them ” . They even dont take efforts to respond to emails also.”
I would really appreciate if you can give me explaination of why this is happening and how AR is going to take care of this , It would improve customers faith .
Manish
———–
So after receiving the mail , they called me around evening and I told them what are the issues Aegon Religare is facing and why there product is so cheap compared to another term insurance in market and what they are trying to do , why their customer care sucks and what they should do . The representative were sorry and told me the reasons behind what all is happening . The main issue is beyond imagination response from users and there servers and customer service being small for the size they expected .
They are lazy and are not doing the perfect job and they really suck at it . But lets make sure we try to co-operate and understand others problem , Not that they will succeed in India for sure .. but atleast this company has some guts to come up with leadership in Term Insurance which our country needs .
I have the telephonic conversation recorded in my phone , but due to my being technically challanged , i am yet not successful in transferring it to my computer so that I can send you that
. Still trying 
.
My apologies if you got an impression that I am getting paid by them to do the reviews
, the problem is on my side then … I would appreciate if you give your honest opinions every time . dont hesitate 
Manish
Manish, you are doing a great job providing completely unbiased reviews about companies and products. You stress points for those products that you think will be good for investment purposes. Each day i return from office, i try to find time to have a look at what you have written – so please do not stop it.
Again, I have not come across someone so generous to give away all the source links directly – for example of other bloggers. This makes your reviews and your intentions to be as honest as possible – financial freedom for (indian) investors. Secondly we as readers post comments / queries and you ensure that you reply to *every* one of the comments – this is something highly responsive.
You take real effort to create charts / diagrams so that we understand easily – you do this for subjects which are new for you. This is something i have not seen others do – each one would be good in only one aspect – but you try to learn from all the corners of financial planning. {should i ask you how much time do you have to spend each day for such wonderful efforts!!}
And for comments like rahul’s i am not sure whether is it possible for you to just delete this kind of comments (In economic times, each of the comment goes online after review – you could do this as well – since anyway you read all the comments!!). An ocean like you should not worry too much about small stones – these will be present, just ignore and keep flowing with all your strength (don’t you see how many of us keep asking you for advice! that clearly shows that none have such opinions).
One suggestion: You already have Questions and Answers sections. Could you have some section like ‘Wish List’ where we could add just ‘topics’ which we would like to have understanding for? For e.g., “tax planning” and “tax rules” – for salaried employees is one such topic (Yes, this is a too vast topic and with ever changing rules!!).
Thanks Nehal
I put around 18-20hrs/week for creating charts and writing articles and working on blog .
I also have control over all the comments, I can reject it if i wish to
and delete any comment i need .
You have a good suggestion . I had an account with scribit , will be putting that again , its a suggestion widget which is good alternative to ‘Wish List’ (actually its same as Wish list , just others can also vote for topics )
Thanks for your support and kind words
Manish
dear manish,
first i would like to thank from the bottom of my heart for providing all the wonderful knowledge through your website and would request you not to get bogged down by critics .this is because they may be either have been shortchanged by someone in their expiriences or worst they may be people who are threatened by the revelation to public about a better product at bargaining pricers jeoparadising their vested interest.so be firm when you are true and i and many like me believe you are and continue to educate people by your knowledge as you are doing a great service to your fellow citizens and critics will sooner or latter realise their mistakes and will be left with egg on their face.NEVER EVER THINK OF NOT PROMOTING SOMETHING WHICH YOU HONESTLY FEEL OF PROMOTING.
thanking you,
rajesh khandelwal,kolkata
Thanks Rajesh
..
Manish
To Rahul & Manish,
I would like to look at the issue from a different angle. The allegation is that since Manish is promoting a particular insurance company he is definitely paid by them. Even if we assume, for the sake of argument,that it is correct (i.e. Manish being paid by Religare) what is the harm? He is not forcing anybody for buying it. That choice is with the individual who after searching in other forum (like mouthshut etc) can take a judicious decision. Moreover, if logically Manish can establish that Religare is a better alternative in the hands of the investor there is no harm in accepting it. Character assassination is highly unwanted. From my personal experience I can say that Religare is relatively a less advertised but rapidly progressing insurance company. Finally on a personal level, after following “Jagoinvestor” for last few months I am the last person to doubt the honesty and integrity of Manish. My request to you is that if you are personally and honestly confident about the usefulness of a particular product please promote it fearlessly, notwithstanding any allegation that may come in the way.
Thanks,
Purnendu Bagchi
Thanks Purnendu
Hi Manish,
I have been following your articles for the past few months and would rate it in the top 3 most informative financial blogs.
I have learnt so much from your blog. I agree with the comments here saying that investors should do thier due diligence before buying a product. Not every product would suit everyone. So keep it going.
Thanks Karthik
Dear Manish
I Personally think you are doing a good job…..so chill!
Personal investment is always a personal choice as it depends on the indiviual if he wants to buy the product or not.
Regarding AR i feel it is a good product but still new in market to trust it.
As per AR if you are under 35 and if your sum assured is below 50 lakhs you dont have to undergo medical tests,acc to my friends most of these medical tests are used by insurance companies to hike up the premium……..i want to buy a insurance of 1 crore,do you think it would be advisable if i buy 2 seprate policies of 49lakhs each from AR.
RGDS Ankur
I never knew about that rule .. thanks for teaching me that .
But if you are going with iTerm , its not recommended that you take it for less than 50 lacs if you need for more . So better take one from AR , say Rs 60 lacs and then take 40 lacs from other one like SBI or HDFC .
Anyways .. in AR you never know if you will go for medical or not ..
Manish
Hello Guys!
Why give so much importance to a character called “Rahul” over his character assasination comments.
I am sure Manish would be the last person to dislike any negative comments and it is not absolutely necessary to go with the tide. We are all welcome to debate and counter his opinions. That makes a very healthy learning for all of us.
However, people like Rahul should know their ‘lines of limit’.
Did Manish forced anybody to buy this policy holding a pistol on our temple?
Are we kinder garden child to take everything on face value whatever Manish tells in this site?
Is god’s greatest gift ‘common sense’ lacking in us or diminished state?
If your answer is “NO” to these questions, it would be truly dissapointing to accuse him of anything and that too reading his extensive detailed painfuly analysed posts FREE OF COST at the comforts of our drawing room.
May be Rahul did not express what he wanted to clearly, but he should think twice before bluntly putting something in serious allegations.
I have no personal enmity with Rahul either, but I am equally dissapointed and hurt when somebody tries to ‘derail’ a young youth who tries hard to instill financial awarness in all of us.
Before somebody like Rahul comment, I would like to clarify “I have not been paid” by Manish to write this comment.
Regards
Vikas
Thanks for your detailed comments
..
I am glad that people trust this blog so much
. Keep coming 
Manish
I think AR s premium are lower because there are no agents involved, so no commission to them. Am i correct or missing something? Thanks for the nice article manish.
yes .. correct . thats the main reason
I think there are more reasons and agent commission is also one of the reason (but mayn’t be the main reason)
Insurance agents normally sell only endowment / money back / ULIPs because their commission is more (7-20% incl trail commisions) and commission from term insurance is the lowest for them (about 3-5% – reason why they don’t promote term insurance).
If the commissions for term insurance is low, the difference between premiums (with agents and without agents) shouldn’t be more BUT in iterm the difference is huge…
I feel one more reason is updated mortality rate (mortality rate is improving year after year)…….
– Aegon might be using current updated mortality rate
– others might be using old mortality rate (5 years back) and a higher rate.
One more possible reason……Aegon might be aggressive to get customers & hence offering premiums with very low margin for them
May be other companies need to review mortality rate and come out with new reduced premiums……hope it happens
These are my views
JP
Nice points JP
The new mortatlity rate vs old one is really good point worth noting ..
Manish
More details on Mortality rates in India reproduced from google search
JP
—————————————————————————————————
Year Death rate Rank Percent Change Date of Information
2003 8.49 107 2003 est.
2004 8.28 108 -2.47 % 2004 est.
2005 8.28 107 0.00 % 2005 est.
2006 8.18 110 -1.21 % 2006 est.
2007 6.58 145 -19.56 % 2007 est.
2008 6.4 146 -2.74 % 2008 est.
2009 6.23 153 -2.66 % July 2009 est
Definition: This entry gives the average annual number of deaths during a year per 1,000 population at midyear; also known as crude death rate. The death rate, while only a rough indicator of the mortality situation in a country, accurately indicates the current mortality impact on population growth. This indicator is significantly affected by age distribution, and most countries will eventually show a rise in the overall death rate, in spite of continued decline in mortality at all ages, as declining fertility results in an aging population.
Source: CIA World Factbook – Unless otherwise noted, information in this page is accurate as of September 17, 2009
———————————————
sorry for misalignment
Great work JP !!
This shows that mortality rates are becoming attractive over log period of time in India .
Manish
Manish,
I had taken a term plan from AR in August, now with iterm plan gaining recongnition should i cancel my existing plan and take this one. Please do advise.
Rakesh
That is one of the option
Another thing you can do is
1. Take another policy for 50% of amount insured incase you are still underinsured .
Manish
Religare seems to be really aggressive in the financial sector. Off late I am seeing a lot of right noises from them- be it hiring, or new products, M&A’s etc. Guess they plan to be real big in the financial space- not only in India but also globally (One should read this strategist story on religare http://www.business-standard.com/india/news/eyesthe-world/379507/ to get a deeper insight on what future does this company holds).
thanks for the link Rohan
Nice work . So what do you think abour products from AR ?
Manish
First my compliments for compiling this wonderful site. It serves to finance nerds and smarties also.
The term plan from Aegon is cheapest. But hw trustworthy is the company?Also fact that wheter claim settlement will be a problem?
Mukul .. read my post on Why Private insurance companies are safe .. Dont worry to much on safety side ..
Manish
Thanks a lot manish and keep it up….
I have few questions to ask you…
I ‘m very confused whether I shd take critical illness rider in my term insurance or not .
This rider is generally very costly and don’t cover many deseases .
Is it not advisable to avoid this rider in term insurance and have one health insurance .
Can you please also explain me if I need to have Accidental rider in my policy .
Also why insurance companies are charging very high premiums for life time policy and very few plans available to cover for life .
Can you pls suggest one life time term plan for me .(You already did this …:-) so leave this for now..)
One health plan..I ‘m not willing to have 1or 2 yr health plan..instead longer term..
Thanks
Deepak
The first thing you have to decide is if you need critical illness cover or not .. generally everyone needs it . Also have a look at what different illness are covered there , does it fit into your criteria or not ?
If yes and you are satisfied then it makes sense to go with term insurance rider . Else not ..
Try apnainsurance.com to compare .
Manish
Sir, I am going to take this life insurance. However, they aren’t allowing to transfer money from my SB account which is in HDFC bank (HDFC is not listed there). So I have to use my credit card only. Can I avail tax benefit under 80C if I use my credit card? Please do reply. I am kind of stuck in the mid of applying.
Thanks,
Madan Kumar Rajan
Err … No ..
You will get the tax benefit only when you pay the premium through Cheque .. You wont get any benefit if you use your credit card .
Manish
Thanks a lot Manish and Others for your comments… As pattu has said, it is good to hear that cheque payment is not mandatory. Thanks people for sharing information.
Thanks,
Madan Kumar Rajan
Great
.. keep coming 
Manish
Wow…well thats sumthing I was completely unaware of…U mean 2 say that if I make my premium payments by a Credit Card then I aint entitled for Tax Benifits, Or am I getting it wrong?
Amit
Amit
thats correct . You can get tax benefit only when you pay by cheque . The reciept you submit generally contains the cheque number .
Manish
manish,
Am I reading right here? I always pay my premium online by credit card and they always send receipt to my mail which I disclose while claiming tax benefit. This is what I am doing since last 3 years and have no issues. Can you please elaborate more here?
.-= Jagbir´s last blog ..Disable ssl ver 2 in apache for pci compliance =-.
Jagbir
Ignore that .. i was wrong
Manish
Cheque payment is not necessary for tax deduction acc to
http://www.simpletaxindia.org/2009/01/deduction-us-80d-mediclaim-policy.html
and
http://www.smartmoneyindia.co.cc/2009/03/medical-health-insurance-premium.html
I work in a central govt org and I dont give any proof of cheque payment for TDS. I only give photocopy of policy document which does not give details of payment.
“Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode”
Which means my information was stale . Anything other than Cash will do then
. Thanks for the clarification .
Manish
Hi Manish,
First of all, Thanks for such useful information for this product. I have already taken this civer for 50 lacs sum assured. My age is 30 years and term is 25 years. Now after one week of payment, nobody from AR has contacted me for Collection of Form and Medical Test. I don’t know how this company is dealing with customers. If this is the postion at the time of sell, we can assume that at the time of claim by our family member, how they will treat them. I would like to convey this message to AR, that they are not selling any mobile phone or electronic gadgets, but they are selling a Insurance Product. Once customers will loose faith, they will never show their face to this Company. Only Cheap cover is not the only thing a custoer is looking for. It is the faith and customer service, which make a great insurance company. I am now trapped and having same feeling like I have bought a Cheap Chinese Instrument.
As far as Claim is concerned, I donot want to fell guilty now for my surviving family. I am sure if this the condition they will certainly put claiment in pathetic condition.
Even after payment of my premium, I am not insured. Is this amount to cheating. It is not lake of customer service, but it is deliberate attempt to cheat the peoples.
I hope you will understand my position and convey this message to AR on behalf of the readers of this blog. One more thing, until all issue resolved, please donot recommend this plicy to other peoples.
Thanks,
Atul
Atul
You should mail anita.rao@aegonreligare.com . With your queries and issues . I am sure she will revert back .
Manish
Insurance is a long term commitment, more than cheap premium; Trust is important. No matter what IRDA rules are meant for but still claim settlement is a big concern in India. Many a time we buy cheap chinese product which does not even run for 5 months then we think “Oh! I should have bought branded item”. I have experienced it many times. I suggest go for trusted band names like LIC, SBI, HDFC.
in that case lic is the only one you can trust , Even HDFC and SBI have bad claim ratio compared to lic . What do you think srinivas ?
manish
Yes. Even LIC has also lowest rejection rate but not 0%. What I meant here was trust level is more in LIC, SBI, than AR.
Sometime back I finally decided to take this I term plan. Paid premium on 10 Dec, Medical on 25st Dec (date of my choice), Policy is received on 5th Jan. Good turnaround time ??
If anyone of you wanted to know so called T &C , I can scanned the policy and put it on web for your cautious view, I didn’t find any T & C * error nous* or unruly to policy holder, you might want to have look
Great. . Please put it on web and let us know
Manish
Hi Manish,
I am currently of 28 years and would like to get the insurance till the age of 60 years i.e. ~ 32 years which is not possible with iTerm(max. 25 years).
Wht do u suggest for me? Should I take (for example) 50 Lakhs plan for 25 years, stop paying the premium when I attain 35 years, and then start a new iTerm plan for next 25 years?
Am confused, please suggest..
Anand
The reason why you want to get insured till 60 is that you might be earning till then and people might be dependent on you . But it might happen that you get retired early also , if you make more money than you think you can
Also , in later years you will also have most of the savings to support your goals , So I think that at the moment its fine to go for iTerm or any term plan .
Manish
Hi Manish,
Is there any other iterm or term insurance which can be slightly costly but more secure.
I think no body will mind paying slightly more n in return getting secured product.
Thats what the insurance is about security.If its not there any its objective is diluted.
First peference to any secure iterm insurance(from companies like SBI,LIC,HDFC,ICICI) n than to normal term insurance.
Thanks
hmm.. That makes sense .
Yes . security should be considered . I think companies should also comeup with campaigns which teach people how secure they are .
Manish
From the latest data published on the IRDA (2008 – 2009), the death claims received by Aegon Religare are 7, of which 5 were rejected (repudiated) and decision on 2 is pending. The actual reasons (which might be rightly confidential) could be genuine, but we need to look for at least a year or two to believe Aegon Religare.
Yes . Thanks
Better wait for more time .
Manish
Hi NKanai,
Thanks for sharing the data.
How u got this information ? Plz share with us.
From which link can get such useful information.
Yogesh
Here is the link : http://www.irdaindia.org/annualreport09/annual_rep_eng_09.pdf
Manish
Thanks NKanani. I had a look at previous annual reports of IRDA. I see LIC has highest claim % and followed by HDFC, ICICI, Reliance Life, Birla Life, Bajaj Allianz but I see SBI comes almost after all these.
This is a good data to be considered.
Thanks Srinivas for looking into previous reports and coming up with the claim % comparison!
Good work guys .. Its great to see how readers here are helping each otehr .
Manish
Hi Manish,,
In mail chain I suggested to have a section of investment options.
and u asked upto what extend.I understand ur concern its difficult to put each n evry thing.
As per my view u can only include Name of investment option of any nature whether Equity,Debt,Equity + Debt .If we know the name can search details.
And Plus can put some details on any product which is ur favourite and has come in market
Name will also be of great help for us.If we ahve fuirther any doubt can consult with u.
Yogesh
thats the motto of jagoinvestor . We are not here to recommened products ,. I want to teach how to fish , not provide fish .
So I tell how to think , how to choose etc . Now choosing is upon you . Dont you think thsi is the right way of doing thing
. iam sure you are 
Manish
I would advise members not to jump and take this policy, wait for few more months we could see many other private players coming up with attractive term plans. I presonally had a very bad experience with religare, so i will not recommend this policy to anyone. Their customer service is pathethic. Last year i had taken a term plan and the agent promised me a cash discount. Its been over 4 months that i have been following with them but to no awail.
So think twice before buying this policy.
Rakesh
Err .. Sorry to hear about your experience . I would suggest you complain about them at Banking Ombudsman .
Manish
Cash discount ? mean returning some part of his commission… BTW it is illegal as per rules.
Is it the only reason behind dis advocating the company and policy ?
Govt is planning to increase FDI cap in insurance sector and many Japanese, south Korean giants are eying Indian insurance market. Hold on for few months to get cheaper and attractive policies and we get time to evaluate Aegean Religere also.
Srinivas
Thats Good news from Competition point . can you give me the links where you read that ?
Manish
Link is here. http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Japanese-insurers-eye-Indian-market/articleshow/5373785.cms
Thanks . I just saw the link . But as per them they are eying some company which have wide network across India . I dont see anything other than LIC or SBI for the best reach
Dont you think it will only add to the “crowd” ?
Manish
Yes, They are not allowed to do business independently. They have to operate through local tie-up. After they take stake in some insurance company; I don’t think they will sit idle; they are expected to aggressively market their product.
Just like we select mutual fund based on their performance history; Isn’t a better idea to look claim history and other details before buying insurance? What do u say?
Srinivas
Just like MF , Past performance is a critical thing to look at in Insurance also , but apart from that We also have to look at other things .
Better to look at IRDA reports for this . The insurance industry is still not too matured i think .
Manish
You are right, Manish! Insurance companies in India (apart from LIC) lack experience in handling and settling claims. Though most of these are established players in the West, but Indian business environment and customers’ expectations are quite different.
I’d suggest a study of the claim settlement and other important data in their home country/State. That’ll give some indication as to the overall standing of the insurance companies vis-a-vis claim settlement.
Rajiv
Rajiv
Let me see if i can get detailed infomation on this . thanks for your views
Manish
Excellent Blog. Congrats and keep it up. Thanks for the information.
You need to provide insight on one important aspect of Term Plan that it only covers death due to natural causes and NOT ACCIDENTAL DEATH. And everybody particularly the people upto 50 yrs should Buy PURE Accidental Plan with Permanent Disability Rider.
Moreover, certain issues like following aspects of insurance need more clarity :-
1. iterm of Religare has been specifically designed for the educated masses who are net savvy and in all probability healthy and in the productive age group.
2. Look at the maximum term available i.e. 25 years and you can easily conclude that most of the people who will be net savvy are likely to remain alive and probably More Healthy than non-net savvy cohort of people.
3. So the product ism cleverly launched for elite few and not for general masses.
4. This product will definitely revolutionize the Indian Insurance Industry and others will be bound to come out with better and more cost effective Plans.
5. No doubt it is the cheapest Term Plan, but what about claim settlement. Today company is only collecting the Premiums.
6. In one of your articles you had highlighted this aspect that diversify insurance and buy from 2 companies. My question is Why the company will refuse to entertain a claim? Do highlight this aspect.
7. Agents are only interested in getting the new policy/customer and not interested in servicing the old customers/policies, because they in any case will get their Commissions out of the premium paid by the policy holder. Highlight this aspect.
I have information on all the above aspects, but since you are already doing an excellent work, kindly highlight elaborate on these points. Rest in the next.
God Bless You
Raju
Thanks for our excellent and detailed comment . My first question to you is who told you that Accidental death is not covered in plain term policies ?
5. yes , this is valid point and definately we should wait for some time to see how claims are honoured from this company .
6. The reasons why company can refure to pay the claim are many , like no proper documents supported , no correct information provided from customers etc .
7. Yes , this the problem in india, we still dont have trusted agents who can service customers well .. Lets see how IRDA takes this forward in coming years .
Manish
You can log to premium calculator website of any insurance company and therein it is clearly mentioned that ACCIDENT POLICY if required can be taken as additional rider. And the premium varies from Rs. 90 to Rs. 180 per 1 Lac of insurance.
I suggest to all – Buy Accidental Insurance directly from sarkari companies @ Rs 40-45 per lakh
As per Pattu’s comment . Accidental cover is always covered with term insurance untill and unless they specifically say “Accidental Death is not covered” .
Manish
1. ACCIDENTAL POLICY MUST BE bought from Sarkari Companies, as the premium is Rs. 45/- per Lakh, whereas the private companies charge anywhere between Rs. 90 to Rs. 180 per Lakh.
2. Your agent will be more interested in selling a product with many riders but don’t fall in the trap and buy only Accidental Plan with Permanent Disability Rider.
3. The sarkari companies will settle the claim more speedily than private companies, though you must not expect courtesy and service from sarkari people/companies.
Thanks for the tips
Do you recommend some policies too ? Do you have some data supporting your argument ?
Manish
Raju,
You are mistaken. Accidental death and critical illness fall under the category of double indemnity where the nominee will get sum assured on plain term policy plus accidental death benefit if the death occurs by accident. The catch word is additional sum. You could clarify this with any insurance agent. Term policies cover suicide after the first year.Why wouldnt they cover accidental death. Of course more paperwork like FIR is needed for accidental claims.
Watch the movie double indemnity to see how this works!
double indemnity ? Is that a movie
?
Manish
Yes double indemity is a famous movie about insurance fraud (1944)
http://www.imdb.com/title/tt0036775/
This is a must see Manish, dont miss it.
Also see:
http://en.wikipedia.org/wiki/Double_indemnity
Several websites clearly mention ADD rider benefit as additional to main policy. Also if something is not listed in exclusion, the company has to pay. I dont think accidental death is listed as exclusion in any policy, term or endowment etc.
ok
I will watch it sometimes
Manish
Manish,
Is it legal to have 2 term insurace policy of two different companies?
Won’t there be any issues in submitting all original documents as only one original doc will be available?
I remember having 2 medical insurance policies will not work out due to original bills and documents. Is it right?
Ravisuga
Yes , Its totally legal . Dont worry about the documents . I know cases when claims have been settled with 2 companies . See Guru’s comment .
Manish
Hi Ravisuga,
Having 2 medical insurance policies is valid and you can claim.
Here is the procedure, Suppose you are covered for 2 lakhs by your employer and you have 2 lakh personal cover. then in a case where your medical expenses come out 4 lakhs. You can submit all the bills to the first insurance company and get the documents submitted certificate and submit this certificate to the 2nd insurance company. they will reimburse the remaining money.
Refer this link: http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/Take-extra-cover-for-sake-of-your-health/articleshow/5414641.cms
Srinivas
thanks for the link . You are doing amazing contribution on this blog and I thank for that .
manish
Hi Manish,
Wanted to know if the premium amount for Aegon Religare iTerm Plan is a Level premium or increasing every year (since the age of the insured also increases every year)?
Regards,
Sujit Shah
It’s a level premium. Your entry age is already considered and premium is charged accordingly. I have never heard of increasing premium.
Have you heard of it?
Let us know.
Srinivas
We have regular premiums which comes down sometimes when govt makes some relaxations , same way it can also increase in future , but its very rare
Manish
Sujit
Its generally fixed, the future inflation and increase in cost is already factored in the premium , however it depends on the policy document what they have put there. . it might happen that they might revise it in future depending on the rules and regulation from IRDA.
manish
Thanks Srinivas & Manish for your valuable comments. I’m still afraid (doubtful?) of low premium around 7K premium for 50L iTerm, in deciding whether to subscribe or not? Will they be sincere?
.-= Ravisuga´s last blog ..பங்கு சந்தை – டெரிவேட்டிஸ் (Derivatives) =-.
Yes. I understand your concern and same is true with everyone. Aegean Religere is new to India and we don’t have figures to prove their claim settlement. According to IRDA annual report for the last year, Out of 7 claims, 5 are rejected and 2 are pending.
Since insurance is a long term commitment, I suggest first you calculate how much insurance is required for you.
Take insurance from LIC, Birla, Bajaj Allianz, ICICI, HDFC though premium is more.
Ravisuga
As Srinivas pointed out , first calculate the amount of cover you need . and then depending on your comfort level choose the company you want to take insurance from . LIC and SBI would work better for you it seems . However I dont mind taking it from AR .
manish
is there a print option in yr website.
still a diehard fan of hard copies.
need to take only text of the wbpage.
satchells,papers,highlighters,markers , pen and pencil are my forte.
gr8 site.atlast there is a light at the end of tunnel of deception,deceit,and darkness of financial jargon
thnx once again.
Hi Manish,
How r u ?How u r doing?
Is everything fine at ur end?
Just thought to ask as didn’t see ur response from 2-3 days on people’s comments.
Take care.
Yogesh
Yogesh
I am doing great .. just back from a vacation, so chilling a bit
Manish
thats great manish.hope u has enjoyed vacations
Yogesh
Yah thanks man .. I really enjoyed a lot
Manish
Hi Srinivas,
In one your recent answers, you have quoted as below:
“According to IRDA annual report for the last year, Out of 7 claims, 5 are rejected and 2 are pending”
I have 2 queries:
1. Is such information available to general public using the IRDA web site? If YES, then please provide the link.
2. The statistics provided by IRDA for the last year is only for AEGON Religare or for ALL the insurance companies put together? Also, is the statistics only for the claim arising out of TERM Plan or for the claim arising out of all types of insurances.
Regards,
Sujit Shah
1. Yes. This information is available to general public. Link is here
http://www.irdaindia.org/annual_report/annual_rep_2007_08.pdf
Follow this for last 10 years..http://www.irdaindia.org ->Annual & other reports
2. This report has information about all insurance companies and about all types of insurance statistics including health insurance.
Hi all,
One latest news.
If any one wants to revive its lapse policy then can revive.Plz have a look at below link ..
http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/Revive-lapsed-LIC-policy-in-easy-instalments-now/articleshow/5511534.cms
Regards
Yogesh
ohh Nice link .
This will be helpful to people who are not able to pay their premiums .
Manish
Hi Manish,
I think the customer support of Aegon Reliagre has improved now,
Last week I called Aegon Reliagare, the waited for few minutes for my turn later on I hung up. Then I generated the online Quote, where they have assigned a Advisor for me, who answered almost all my Queries with mail(3 mail replies) on the same day within hours. And today I got a call from Aegon Reliagare, who referred my previous call where I did not get a chance to speak to their representative. And answered my queries very patiently(which very rarely happens with other customer support, they are always in hurry to attent max number of calls), I am quite satisfied with the customer support now. I am planning to get this insurance this monday. And thanks for your suggestion too.
Brij Mohan
Brij
Thats great news . Yeah i suppose the initial month was tough for them and they would surely try to make their services better . Thanks for the update
Manish
Hi Manish,
Thanks for your valuable advice on iterm plan. I have already taken this and received the policy documents last week.
I need your comments on some of these standard clauses of this policy:-
1) It is mentioned that “IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BRONE BY THE POLICY HOLDER”
Please clarify me “What are the risk under this plan and why it had not been communicated to me at the time of taking this policy?
2) In Clause 3.1 under Death Benefit it is mentioned that the Company will pay to the nominee or to the policyholder an amount equal to Base Plan applicable at the time of death.
Now, regarding this clasue please clarify ” What is the amount of Base Plan and will it vary during tenure of this policy.”
3) Nomination Schedule: Please clarify if Policyholder and Nominee under this policy together die in a accident, who will be eligible for the benefit under this policy.
Atul
1) I am not sure why they have mentioned “investment” there . its a pure insurnace plan ? Where does investment come into picture ?
2) Base Plan means the base amount which you have taken insurance for . It will be fixed throughout tenure .
3) This is mainly the 2nd nominee , just to make sure extra level of contact .
goodluck
Manish
Atul
1. The statement “IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BRONE BY THE POLICY HOLDER” is bound to be found only in ULIP plan. I wonder why they have it in term plan. bring this to their notice and rectify it.
2. The base amount is the sum assured after the policy holder death. Again the word “Policyholder” in your statement worries…Isn’t it it should be only nominee?
3. In this case, insurance amount is treated as beneficiary estate and any legal heir can claim the money. It’s always better to mention multiple nominees with % contribution. Even It is advised to write a “WILL” also, Will overtakes all your nomination wherever it is done.
Srinivas
2) the term “Policyholder” is again for same reasons as you mentioned in the first one . I suspect if they have sold a ULIP policy .
3) WILL is definately desired .
Good points overall .
Manish
Hello Shrinivas
Thanks for sharing such a valuable questions. Even I am planning to go for Aegon Religare iTerm plan, and so I asked these questions to Aegon Religare Company.
Following is what they told me is -
1) iTerm Plan Policy does not in any way give you any right whatsoever to share in the profits or surplus of the business of the Company. This is a non-linked non-participating plan. Regarding the Standard Policy provisions mentioning of the Investment risk, Aegon will make the changes shortly in the contract.
2)Base Plan is sum assured (Since In some cases sum assured and riders both together amount to base plan). Kindly note death due to any circumstances whether accidental or natural death is covered. There is only one exclusion that is in case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.
3) Class I legal heir (such as wife, children, parents) come up claiming their first right on the policy monies.
Your points were really Good!, thanks for the same.
Thanks.
Hiren Shah
Hi Manish,
I have been reading your blogs in last months and these are just great. Thought of seeking your advise on some concerns i have.
I have purchased Bajaj Allianz’s ” UNITGAIN PLUS GOLD SIZE TWO” ULIP insurance wherein SA is 50 lacs and annual premium is Rs 50k in 2009.
What is your recommendation for this policy ? any comments ? should i continue or look out for a better deal ? Kindly advise your detailed views and also on better product if you have. i have purchased this to shield home loan of Rs 50 lacs.
Regards, eenigma
Avoid this , Better go for term + MF . I have already mailed you for this .
Manish
hi,
this is tejus chauhan. sir i want to sale this plan on comission by calling but I realy dont know the way to contect you. sir if I will get guidline from your side then I will look for a DSA of Aegon Religare. i want to work with you i am requesting you to contect me as soon as possible .
mobile no. 9899946336
Tejus
You cant sell this product your side because by design , this plan is online and there are no agents in between, you can sell other products, I am not sure how I can help you , but my id is manish[at]jagoinvestor[dot]com
Manish
IRDA report for 2008-09
http://www.irdaindia.org/annualreport09/annual_rep_eng_09.pdf
thanks for the link
Manish
Hi Manish,
In case of iterm how the claims are to be made ?Is it online or
any other way ?
Hi Manish & Vikas,
Yes this seems to be good combination as in 8200rs we are covered for all
type of things for 50lachs..In Some plans which covers all things premium is more
th
Hi Manish & Vikas,
Yes this seems to be good combination as in 8200rs we are covered for all
type of things for 50lachs..In Some plans which covers all things premium is more
than this..
Regards
Yogesh
Yogesh
Ok great to see that you understand the product .
Manish
Hi,
I need to understand one thing….
There are two ways in which premium for Term Insurance is charged :
1. Wherein the premium is fixed for the entire term i.e If I pay 8250/- as first premium for Rs.50 Lac cover, I ll have to pay the same premium for the entire term..
2. Wheerin the premium increases each year with the age.. i.e the premium increases from 8250/- in the first year to may be Rs.76620/- for the last year..
I scanned the entire website and all blogs similar to you but strangely I find all silent on this issue…
Pls enlighten about the same.. in case anyone of you has an answer
Hi Rahul,
As far as my understanding goes, iTerm plan is a fixed premium plan. Since nowhere on the website or product brochure it is mentioned that premium increases with age, the presumption is always in favour of fixed premium. If they start charging increased premium every year or every five years, they are in for a big trouble from IRDA, as this is such a vital aspect of an insurance policy and silence on the subject could be suicidal for the company.
Hope this helps…
Rajiv
Why the Company is suspiciously silent on this matter…
Regarding the IRDA stick – In case they have filed the product accordingly with IRDA its legal and binding..
In Sales – there are two ways to Sell – 1) Make False Statements 2) Hide True Statements..
Pray the company is not into it…
An Rajiv in Insurance there is no Room for the term “presumption”… Its a legal contract and thats binding…
Rahul,
I agree with your views about sales and how the insurance companies try to sell their product by hiding the facts.
Regarding your views on ‘presumption’, I agree with you to the extent that if it’s expressly written in the contract that the premium increases as the policy grows, then there is no problem. However, when the website, product brochure, and the contract simply uses the term ‘premium’, then there is legal presumption that premium is fixed. And I know this for a fact because I myself am a lawyer.
To allay your fears, I’d suggest you to explore other companies’ term plans as well, you’ll see barring one or two exceptions, hardly anyone sells increasing premium term plan. And no one expressly states that premium is fixed or increasing. All they tell you is that premium may be paid annually/regularly, semi-annually/half-yearly, quarterly, monthly, etc.
If you still have doubts, simply write an email to their customer support.
Rahul
As Rajiv said , All the companies have a fixed premium model even though its not written somewhere . So i would say dont worry .. the premium today already is high and factors in the time value . if it was to be increased every year , the premium would start low and would appreciate slowly . but thats not the case
Manish
Manish,
Its not right ” All companies have fixed premium model”
Since its a neutral platform with no vested interest, I feel we should speak FACTS.
I ll like to share a small statistics which will be useful for all (source IRDA Annual Report 2008 09)
Death claim statistics
Why it matters? Some private insurers claim to offer lowest premium for term policies but statistics of death claims settled by them are shocking.
What is the point in having a life insurance policy if the possibility of your insurance claim getting settled in case of an unfortunate incident is uncertain? Leave alone low premiums.
In percentile terms – Out of All Claims serviced by AR – 71.43% of the claims were REPUDIATED & 28.57% Claims were PENDING and None i.e 0% claims were paid..
I am sure figures might have improved by now but then repudiating 3 out of 4 claims in something SHOCKING…
So….. Taking Cheap Life policies is not always advisable…
PS – No personal grudge or anything against AR, Just trying to be Better Safe than Sorry..
Rahul
I agree that Private companies claim ratio;s are higher than PSU (LIC) , It would be safe to watch AR in coming days rather than taking a dip right now .
Manish
Rejecting 5 out of 7 claims………..i would not like to pay even 1 rupee to this company……guys look at Birla sunlife dream endowment plan or ICICI pure protect…Cheerz
From where you got this figures, please let me know, it will help me to know more about this.
Thanks
Brij,
Open this link:-
http://www.irdaindia.org/annualreport09/annual_rep_eng_09.pdf
Look at Page 151 of this report.
Don’t even think of going with Aegon Religare.
Manish please look into this and confirm if what i said is right or wrong.
Cheerz
Gaurav
Cheerz
Gaurav
i have taken this iterm policy for 25 lakh for 3600 rs for my wife. Document will be collected next week. No medical test required in her case. I am not sure about their claim rejection/service but I as a real customer will keep you all posted from time to time. I have read somewhere that in term insurance cheaper is better as it is just a contract. Give all the facts right and wait for the best. 99.99 % chance is you are not going to die. But yes the lack of riders is important and one should look into this issue. Another policy can be taken.
Sunny
Is your wide earning member , Is any one financially dependent on her ?
Manish
@ Sunny,
Your statement “99.99 % chance is you are not going to die” looks ridiculous to me. At the first place, How can you expect 99.99% of no-death?Who guaranteed it? Astrologer or GOD told you?
If 99.99% no chance of death then why do you need insurance?
My friend remember, “Life is what happens to you; when you are busy making other plans”
Yes
I support you .. 99.99% is too much of probability in favor , I am sure the mortality charts maker would faint if this were true .. I would say a good figure would be 95-96% . what do you say ?
Manish
@ Sunny
“99.99 % chance is you are not going to die”
Who gave you such guarantees!? Cheaper is better is plain bullshit which many financial planners advocate. Every earning member has to ensure that life is hassle free for the family if he/she dies. Spending a little more in this regard should be acceptable to everyone, but unfortunately is not. 5 out of the 7 IR claims repudiated and 2 are pending. I wouldn’t want my family fall into those 5 or 2.
IRDA should make the process more transparent on what made the company reject the claim , I am hearing more and more issues like this
Manish
manish as you asked..well right now no one is dependent on my wife…and i also have no dependent. we both earn almost same..around 5L pa and are in our late 20s. I am also thinking of taking another term insurance for her. I have a coverage of 30 lakhs… 15 from my company and 15 from LIC.
Guys i admit that 99.99% is too much…
it stands revised to 95-96%.
By the way both me and my wife are planning to start our retirement planning. Can i discuss my plans here so that you all can check if my strategy is correct?
When your wife is not dependent on you and you have no other dependents.
first of all, you do not need insurance cover now.
But you already have Rs 30 L coverage and still looking for one more?
I don’t understand the reason for so much insurance?
You can discuss other stuff in the Jago forum.
Manish, What do you say?
Does any body knows whether LIC Anmol/Amulya Jeevan term plans carries the risk of Accidential Death?
As per my understanding these policies only covers the natural death.
Does LIC offers any riders ???
Pl. help.
Hiral
All the term plans cover accidental death , accidental riders are just for extra accidental cover + income in case of disablity
manish
Thanx Manish.
BTW: are there any term plan which covers terorist attact and/or natual calmity etc. etc..
I read nice discussion on iTerm, does iTerm has any catch?
Thank you in advance.
Hiral
I am not sure of that .. check on internet and let us know .
Manish
Manish / Hiral,
Aegon covers terrorist attacks. When you look at any policy pay special attention towards ‘Exclusions’.
Cheers
Gaurav
Gaurav
Thanks for the reply
Are you talking about the iTerm plan or general term insurance they provide ?.
Manish
Manish,
Both of them (Level Term as well as iTerm) have terrorism cover in them. But as i wrote earlier rejecting 5 out of 7 claims…..naaaahhh….i would not like to pay my premium to this company and rather go for ICICIPRU or Birla Sunlife as both of them pay more than 90% of claims.
Cheerz
Gaurav
Gaurav
ok , great to know that . Yes , its better at the moment to go with someone else . lets see the future claims and then think about AR .
Manish
This the mail i got when i send a mail asking about the 5 claim rejected out of 7.
reply from Anita Rao’s email id:
“We started business in July 2008 and hence do not have any material information on claims. Our promise is to settle all claims as long as there is no suppression of facts by the customer while buying the insurance policy.”
And a small query. After 2 years is the insurance company bound to pay even if there was some suppression of facts by the customer? Any ideas?
Anita Rao is a just a front desk jockey. programmed to say this by higher ups.
Every insurance company will have a separate claims settlement dept. We cannot access the dept unless we have a claim. Now that dept can request any information they deem fit before settling a claim. If they find any new info they may declare it as suppressed. However the insurance application form is not usually clear about how much to reveal. So the claims deptcan exploit this when they don’t have enough money!
If you carefully look at Form 300 of LIC which is used for its Amluya Jeevan, it says claims will not be paid only if any untrue declaration is made. It doesn’t say anything about suppression. However being truthful and suppression of facts overlap sometimes. So this can be used against you.
Pattu
Oh , this a new thing
. So logically companies should always care about the information they are asking , its unfair and idiotic to rely on the information customers might provide .
I have personally emailed Anita Rao to get involved in comments (some spice) .
Manish
Today nobody from Religare came to pick up my documents and the signed proposal form. I am in two minds now. But then I have already paid Rs 3600 through my card. Any chance of getting my money back?
Besides I need a small help so this off track question.off track question. My wife’s tax planning is due…total 1 lakh need to be invested. It should have been done earlier and not at this last moment but then we both are trying to be less lazy and after reading this nice blog..well time to get our act together. Thanks a ton Manish for this wonderful creation. And thanks to everyone who makes this place so lively.
Anyway pls advise how i put this 1 lakh. She has no dependents and risk tolerance can be considered on the higher side. I was thinking of a 60:40 split. 40% in fixed income and rest in HDFC Taxsaver/Fidelity tax advantage. What you all recommend? I guess this time investment in ELSS need to be done in lumpsum as no time for SIP. Thanks in advance.
@ Sunny
Every insurance will have a free look up period within which you can ask for a refund if not satisfied. At worst its only Rs. 3600 you could let the policy lapse by not paying next premium.
Sunny
If she has EPF , you can then put all the money in Mutual funds , just make sure that you are ready to take the downturn if things get bloody ..
Manish
Hi,
I feel that term insurance should always be taken for long period ( at least till the retirement age as after that u get the ppf/epf etc)and iTerm only provided 25 years.Other policies like Max new york life insurance have policy period duration of 35 years and is a better option .Moreever Aegon religare is new entrant /not listed .sceptical about its long term performance.
Madhup
hmm.. I would say take any policy as per requirement , if it does not fit , i would say you should not take, if it fits we can take, we cant make a generalised statement of wheather its good or bad
. what do you feel ?
manish
Madhup
hmm.. I would say take any policy as per requirement , if it does not fit , i would say you should not take, if it fits we can take, we cant make a generalised statement of wheather its good or bad
. what do you feel ?
manish
Madhup
hmm.. I would say take any policy as per requirement , if it does not fit , i would say you should not take, if it fits we can take, we cant make a generalised statement of wheather its good or bad
. what do you feel ?
manish
Hi Manish,
Let me first take this opportunity to salute you for this fine informative blog.. you are doing a right job and providing an informative platform to other.. I have read the entire discussion and would like to say that Bharti AXA has come up with a term insurance covering till age 75 yrs. Do you have any idea on this ??
Amit
thanks for your comment , I have no idea about the Plan of Bharti AXA , good to know that they are covering till 75 yrs , any conditions ? what about the premiums ?
manish
Hi Manish ,
The details of BHarti AXA Term Insurance Plan is as under. Would appreciate your vaulable feed back on the same and is it again safe to opt Bharti Axa?
Bharti AXA Life Elite Secure – Whole Life Insurance Plans
Key Benefits:
Term Assurance for 5,10,15,20,25 years and a Unique new “To Age 75″ option where you are protected till the age of 75 years.
Financial protection against unfortunate event of death at an affordable cost.
Comprehensive overall protection with help of riders.
Tax benefit under section 80C and 10(10D) of Income Tax Act.
Further details of the product is available on the following link:
http://www.bharti-axalife.com/images/elite_secure_brochure.pdf
Hi Amit,
Is this policy covering accident ridder too & How much extra u need to pay for criticial illness if opt
for 25yrs term & ur entry age is 30.
Overall this policy is looking good.Its premium is comparatively less than others in market(except iterm policy).
You may also check MetLife – Suraksha Plus,ICICI Prudential Life Insurance – ICICI Pure Protect plans.but premium wise ur bharati is best among all.
Regards
Yogesh
Hi
One can visit websit of bharti axa at http://www.bharti-axalife.com and calculate the premium.
The private insurance companies are giving low premiums because they know that they will not pay the claim.
There is IRDA data available which shows how the nominees are harassed and not paid their dues in context of incorrect information. The following single rule shows the biggest loophole using which insurance company denies or “negotiates” the payment -
Incorrect Information & Non Disclosure
Your Policy is based on the replies furnished to the questions in the Proposal Form and in the reports, if any, of the Medical Examiner and the declarations which have been made to the Company and any other information provided by you or on your behalf in writing before we accepted the risk under your proposal. If any information provided by you is incomplete or incorrect, notwithstanding any other provisions under the Policy, the Company reserves the right to vary the benefits which may be payable and if there has been non disclosure of any material fact or if the replies to any of the questions asked in the Proposal Form/ report are false or wrongly answered then we may treat the Policy as void.
Section 45 of the Insurance Act, 1938 is reproduced hereunder for your ready reference.
“No policy of life insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no policy of life insurance effected after the coming into force of this Act shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured,or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policy-holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose:
Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the Life Assured was incorrectly stated in the proposal.”