Which is the best policy for me for a life cover of 1 crore INR?

POSTED BY CP ON April 10, 2012 12:33 pm COMMENTS (27)

Hi, Im a 32 year old female living in Dubai. I would like to get a life insurance policy when I visit India.

At present, all I have is a Jeevan shree from LIC. The cover is 15 lakh + bonuses. It’s a 20 year term.

I earn about 15 lakhs a year ; and have two kids, hubby and parents. I feel I need a better cover. Something like a crore rupees.

Can someone suggest a good policy?

Others here are talking about 1 crore policy with a yearly premium of 8-9 thousand rupees. I pay over 1 lakh premium formy jeev shree every year!!!!

Can you pls guide me?

27 replies on this article “Which is the best policy for me for a life cover of 1 crore INR?”

  1. LifeInsuranceHelp says:

    Dear Ma’am,

    You may consider ICICI Pru iCare, a term plan from ICICI Prudential Life Insurance which can easily be purchased online and allows you to get a cover of upto 1 crore without any medical tests. This makes it very easy and quick to get protected.

    This product has a good claims record as explained in the following news articles: http://bit.ly/HejDZA and http://bit.ly/HTbw7S

    To find out more about this product and to see if it suits you, please visit http://bit.ly/IgvQDe

    Consumers have chosen ICICI Pru iCare as Product of the Year 2012 in the Life Insurance Category based on survey of over 30,000 people by Nielsen.

    Please understand that we only offer suggestions based on your requirements, however
    choosing a policy most appropriate for you remains at your discretion.

    Warm Regards,
    Life Insurance Help
    ICICI Prudential Life Insurance

  2. BanyanFA says:

    @ Ramesh – I have become a fan of your analysis, specially your comment around killing 🙂

    I have one clarification with this whole point of term insurance for NRIs. Don’t the insurance policies have a jurisdictional barrier. If a NRI takes a term plan from India and shifts to Dubai where the person dies, wouldn’t the insurance company reject the claim considering the fact that Dubai was not one of the locations where the insurance companies in India would like to cover ?

    My experience with insurance companies in developed markets is that they generally provide a cover for a person living in their respective jurisdiction only. I would hence expect the same from Indian companies as well.


    1. Ramesh says:

      Thanks BanyanFA for the encouragement.

      You will have to ask the insurance company for that. I am not sure about that. But there is a point- if a person goes on a foreign holiday, and dies in an accident, will the insurance reject the claim? I do not think so, but directly asking the insurance company is the only way to be sure.


    2. Dear BanyanFA, Let me answer it. You are already aware that I have purchased I-Life from Aviva recently around 4 months back. I personally raised this query with Aviva.

      “What ‘ll happen if down the line after few years, due to my current employer or a new employer, I’m relocating for my job outside of India?”

      Aviva’s answer – The policy ‘ll; remain in force & the claim ‘ll be honored if the documentation work is in order

      Personally I feel, if the person is relocating as per my query, it’s advisable to inform the Insurer in advance before leaving the country.



      1. BanyanFA says:

        Thanks Ashal. It is indeed a comfort. I had a policy with SBI Life and I banged my head several times but they couldn’t respond back. Finally I stopped paying the premiums and discontinued the term plan from SBI Life.


  3. CP says:

    Thanks Ashal. I have some other life insurance policies. Therefore I fell 1 c cover is enough.

    You have raised a valid point .

    Am currently having difficulties getting responses from insurance companies. I have mailed all of them. They don’t seem to have a channel to serve NRIs.

  4. CP says:

    Thanks Ramesh and shibu.

    Nandini, I will check Aegon. Thanks.

    1. Dear CP, at 15L yly income, do you feel 1C cover is enough for your family? A lot of has been discussed for your Term plan but nobody discussed this aspect hence I though to put my foot in. @ 32 age for next 20Y LIC Amulya Jeevan ‘ll provide you the cover of 1C Rs. at 28400 Rs. Where as same cover from online plans from other insurers can be purchased for a yly prem. of 10-11K Rs. only.

      On your part – as you are having NRI status, not many insurers ‘ll provide you the cover. So I request you to mail all the insurers & ask specifically for your term cover requirement being an NRI.



  5. Nandini Pandit says:

    You should check out the newly launched iTerm plan from AEGON Religare Life insurance. The plan offers you a cover of 1crore for an annual premium as low as Rs 6200 per year.

    Here’s a link to their website: https://buyonline.aegonreligare.com/iTerm-plan.asp#overview

  6. shib4u says:

    Death by suicide is also covered, most cover it after 1 year of the policy. Do check exact terms and conditions for each policy.

    “accidental death benefit” is a rider which many companies offer, the benefit of taking accidental death benefit rider is that the Sum Assured is enhanced (ie nominee gets more) in an unfortunate accidental death. Note that addition of a rider will increase your premium.

  7. CP says:

    Thanks Ramesh. Very much appreciate your help. I have a q about death in term covers.

    Is death by any means (except suicide) covered?

    The reason am asking is because, some policies offer accidental death benefit. What’s the difference between those who offer it and those who don’t?


    1. Ramesh says:

      Death by any means is covered by term covers (but only within the stipulated term). Even suicide is covered, but only after 1 year of start of cover.

      The few exceptions are death during criminal activity, or if you undertake dangerous adventure sports (then you have to notify or something, etc).

      Accidental death benefit is a different thing altogether (the proper term is Additional Accidental Death benefit). In that, you will get an extra Death benefit over and above the normal death benefit, if (and family members have to prove it) the death is due to an accident. And not by illness, suicide, or any other mode of death.

      In my opinion, all these riders are just too complicated. Keep it really simple. If you are ready to shell out more money, get an overall higher insurance value, rather than adding these so-called benefits and riders. Since, in case of claim, these things have to be proved conclusively, and any failure / delay just increases the agony of the family members.


  8. CP says:

    Can u pls pass me the link to aviva post from Ashal?

  9. CP says:

    Thank you Ramesh. I missed zionview’s comment.

    I have done some research on other term policies. This article gives a good comparison.


    Deciding on a final one is not easy though!

    1. Ramesh says:

      Dear Ashal had a good experience with Aviva.

      There is a post, where he has mentioned that.

  10. CP says:

    Hi Ramesh, got your point.

    Is there any LIC policy that provides term cover? I don’t know why but am so old fashioned and am so fond of LIC

    1. Ramesh says:

      TheZionView has mentioned those above.

      I would ask you to check the other options as well. In the end, it is your decision. A bad term insurance is definitely better than No Policy. Choose whatever you and your family members are comfortable with.


  11. CP says:

    Thanks for all the replies. I checked out HDFC life click 2 protect. It doesn’t offer survival benefit at the end of the plan. I wouldn’t want to feel sorry for living through the term; hence need some compensation – the premiums paid.

    Can you suggest a suitable plan?

    1. Ramesh says:

      There is an option for killing yourself on the last day. That is a joke.

      Because what you are asking is a joke also. For say 10k per year for 20 years (total 2 lakh), you will get a 1 crore death benefit (on any day). But since you want to get your money back, you are ready to pay 20k per year (from which actually, 10k goes for the mortality charges- they are gone one way or the other, never to return back IN ANY LIFE INSURANCE policy), which will invest the rest 10k (for 20 years) and then pay you 2 lakh after 20 years.

      Why don’t you simply put that extra 10k per year in any scheme (any means any savings scheme- FD/PPF/Liquid fund/Equity fund) and get whatever you get after 20 years.

      For car/motor insurance, you do not go for return of premium schemes. You just go ahead and select the policy which gives you maximum benefits for your money. Same is for term insurance.


  12. Ramesh says:

    Check out aviva ilife, aegon religare, icici iprotect, etc.

  13. CP says:

    Thanks shibu. Do you know the name of LIC term plan?

      1. TheZionView says:

        Shib4u and CP

        LIC already has 2 term plans Amulya Jeevan and Amol jeevan both are offline policy and has huge premiums. Lic is yet to lauch online Term insurance.

  14. shib4u says:

    Check out “HDFC Life Click 2 Protect”… you will have to undergo a medical test after which the policy would be issued. Also, you can wait for the Term plan from LIC which will be launched very soon.

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