Suggest best term policy company

POSTED BY srinivasarao ON January 17, 2012 7:31 pm COMMENTS (7)

Dear members, I am very happy to become member of this forum.I am planning to buy a term policy for approximately 50L.I gone through the book published at this portal named “Term-Insurance-Ebook-by-Jagoinvestor”.Still i am in a confusion in choosing a company. hence please suggest best insurence company. calims ratio mentioned on this web portal is overall claims ratio or term policy claim ratio.If it is over all claim settlement ratio how can we know term policy claim settlement ratio.
please help me srinivasarao

7 replies on this article “Suggest best term policy company”

  1. Dear Srinivasrao, I congratulate you for the hard work done in by you. One more thing you should add in your table – The total sum assured filed for claim & total sum assured accepted for claim.

    You ‘ll come to know on your own, Why I’m asking to do such data work?



  2. srinivasarao says:

    Hi to all
    thanks for for suggestions

    I mainly concerned about claims ratio at less premiums. I just gone through the annual report by IRDA of 2007-08,08-09,10-11 and made table of claims ratios link was given below.


    From this data and your’s suggestions I am in consideraton of two term policies from either 1.ICICI Prud 2.Birla sunlife 3.LIC

    Some of forum members suggested company’s claims ratio is poor even though their premium is less


    1. Hey Thats such nice info .. in tabular form , can you send me that table ?

      A little issue is the AVERAGE, because each year the number of policies would be different and hence the average should be weightage average … anyways .. please send me on email


  3. KM says:

    The problems with online term insurance that I have come across are

    1) The premium is cheap no doubt, but in some cases after the medical test they have increased the premium (despite healthy medical report). So you either have to pay the increased premium or ask for your money back (minus medical cost)

    2) Sometimes the medical diagnostic center and the company do not have synchronization. In which case you have paid the premium and based on your inputs the company asks a nearby diagnostic center to visit your home for medical checkup. But due to lack of sync, the diagnostic company does not conduct all the tests requested. So now its a email/phone ping-pong between you, diagnostic center and the company. It can sometime takes more than a month to resolve (if you have the patience) or else you cancel the proposal and get the money back (minus the medical cost).

    3) With claim settlement ratio of many private insurers is less than 90%, it may not make sense to go with them since your dependents may not get the safety net for which you have planned the term insurance. But HDFC and Kotak seems to have good claim settlement ratio.

  4. Hi Srinivasarao ,

    My suggestion will be to take term policy from icici prudential (icare) . You can book it online and get covered as soon as it is processed .Generally private firms offer less premiums than Lic because Lic is still following the old death ratio .
    If you have doubt in claim settlement better take a insurance worth 10L from Lic and the rest of 40L from icici or aviva whichever is best for you and if you travel a lot than better go through the riders offered also.Its always better to take term insurance than endow/money back


  5. Dear Srinivasrao, if you are comfortable with online term cover, Aviva I-life is one of the cheapest.

    Another good plan is from Icic Prudential I-care, not the cheapest but no medical till 1.5 Crore Sum assured.

    In case you are in doubt for claims, please do not look around & go for LIC. Yes the prem. ‘ll be very high than the online plans but that’s the price of your mental peace.



  6. curious_investor says:

    Economic times published comparison on term insurance features.

    LIC beats everyone else hands down when it comes to claim-settlement. Still it would be advisable to split your insurance amount between multiple insurer.
    My personal choice would be LIC Jeevan Amulya and Kotak e-preferred term plan.
    Kotak gives you option to step-up. This will facilitate you to factor in inflation. Birla Sun life also has similar plan.

    ET Link –

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