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POSTED BY ON April 6, 2014 2:22 pm COMMENTS (4)
Hello Everyone,
I have been doing some research in past few weeks to get the best term plan and have decided to for online term plan offered from Aviva i Life for 1 Crore. My age is 29 and not married/working professional. Appx the annual premium from Aviva is coming out to be 7800 yearly. Though I wanted to go for a brand name which I think can survive over the time period of 35 years. LIC does not offer the online term plan yet so the another one which I had in my mind was SBI. But SBI has more premium , appx 11000 yearly with almost same features.
When inquired about this thing, I have been told by the Policy Bazzar customer representative that since SBI main business is banking and insurance is its secondary. And its not been very long for SBI in Insurance so their Premium is more than the insurance companies. Same is applicable to HDFC and ICICI also. I was convinced with the point/ or the reason behind more premium for these banking players now into Insurance also.
This point I have not seen in any of the online discussion forums and not many (I would say 95%) people thinking from this point. Even I was part of category until I asked explicitly about this from the Polic Bazar CR.So if we are going for insurance and specially term plan its always good to go to the Big Insurance players as they are totally into insurance and their business has not divergent. So for same features you will get cheaper than the banking sector. I was convinced with the point but not sure if that is the main reason for SBI having more premium for the online term plan as compared to the companies totally into insurance.Wanted to know your views on this point unanswered in most of the forums , at least I have gone through.
Regards,Anshul Sharm
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Dear Anshul, in case of LIC, please compare the offline prem. of LIC with other insurers. Using your logic that pure insurers’ prem. should be lower, LIC’s term plans should also be cheaper. That’s not the case. Why? Any clue?
In simple words, the logic given to you by Policy Bazaar guy is wrong one. He is only interested in his earning which ‘ll come to him if the lead (your name) is converted into a successful policy purchase.
Thanks
Ashal
Ashalanshu…. LIC does not have any online Term Plan till now. Thought they are planning to enter into this but not yet entered. And offline plan are always costlier than the online because of the Agent Fees. Another factor for less cost of online is that online customer are less risky customer as compared to the others.
Manikambh….Agreed with you . All those factors counted when people go out for Term plan. And in India SBI and LIC are the two most trusted brand in Insurance and Banking sector. But I think this is not the only one reason for SBI and LIC having more cost of Term Insurance plan. And yes IRDA takes care of all the insurance things in India , so we should not hide anything while filling the information initially 🙂
Its all trust, claims success and brand factor. People go out for lic and sbi due to these factors, they’ll make you feel better.
Personally if you give all the right information before taking the policy then it shouldnt mattered to you about the security of your amount. All are backed by irda.
All the best.
Dear Anshul, why the prem. of LIC is the highest?
Thanks
Ashal