Term Insurance – Finally made a decision
After searching extensively for a Term Insurance policy with the following requirements, i finally went ahead with HDFC Click2Protect – 50L – 30 years - Plain Vanilla policy with no riders
Requirements:
* My age: 35 ; Tenure required - 30 years
* Amount: 50Lakh
* A company with a good claim settlement ratio.
* Possibility of any inbuilt riders or additional riders like Critical Illness riders or Accident disability riders at minimum cost
Why HDFC?
This is the list i prepared
Sum Assured
|
SA Term
|
Premium
|
CI amount
|
CI term
|
Premium
|
Total
| |
Aegon Religare
|
10L
|
45
|
2240
| ||||
Met Suraksha Plus
|
10L
|
30
|
6191
|
10L
|
25
|
5472
|
11663
|
Met Suraksha TROP
|
10L
|
20
|
7402
|
10L
|
20
|
5303
|
12705
|
Met Suraksha
|
15L
|
25
|
7079
|
10L
|
25
|
6270
|
13349
|
Aegon Religate
|
20L
|
45
|
4000
| ||||
Met Suraksha
|
20L
|
25
|
8876
|
10L
|
25
|
6270
|
15146
|
Aegon Religate
|
30L
|
45
|
6000
| ||||
Aviva iLife
|
30L
|
30
|
5729
| ||||
Aegon Religate
|
40L
|
45
|
6440
| ||||
Aviva iLife
|
40L
|
30
|
7639
| ||||
Aegon Religate
|
50L
|
45
|
5650
| ||||
Aegon Religate
|
50L
|
30
|
5846
|
5846
| |||
Aviva iLife
|
50L
|
30
|
5920
|
5920
| |||
Aviva iLife
|
50L
|
30
|
6030
| ||||
Aviva Lifeshielf platinum
|
50L
|
30
|
10450
| ||||
HDFC click to protect
|
50L
|
30
|
8150
|
8150
| |||
Kotak epreferred
|
50L
|
30
|
9635
|
9635
| |||
Kotak Preferree
|
50L
|
30
|
11826
| ||||
MetProtect
|
50L
|
30
|
10148
|
10148
| |||
ICICI icare
|
50L
|
30
|
12303
|
12303
| |||
Aegon Religate
|
55L
|
45
|
6215
| ||||
Aviva iLife
|
55L
|
30
|
6634
| ||||
Aegon Religate
|
60L
|
45
|
6780
| ||||
Aviva iLife
|
60L
|
30
|
7236
|
My shortlist included: Aegon Religare's online policy, Aviva ilife and HDFC click2Protect.
Catch: Claim settlement ratio:
As per the Section 45 of Insurance Act, 1938 states: In accordance with Section 45 of Insurance Act, 1938, no policy of life insurance 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 of insurance or any report of a medical officer, or a referee, or a 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 statements was on material factor or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making that the statement was false or that it suppressed facts which it was material to disclose
Going by the statement above, after 2 years of spending time with a policy, the company should ideally not reject any claim. So, all this claim settlement ratio is for the first two years. Here, HDFC outshines all private insurers and obviously, Aegon is the worst.
Now consider the claim settlement ratio for cases after 2 years, you would find Aviva and SBI showing a small percentage of rejections. Other companies including Aegon have negligible values.
My logic:
· Why did I reject Aviva?
o if a company has a considerable amount of rejection after 2 years, there is a culture in the company to reject claims.
· Why did I reject Aegon?
o My friend suggested a logic that if I konk off, my wife should not run pillar to post to get the money, hence, for me, it is better to go with a company which has good service rating. Hence, I chose HDFC Click2Protect for me.
o I plan to go with Aegon for my wife.
Next steps:
· I am looking for a critical illness cover.
· Aviva has an independent critical illness cover. I should explore this further. I want to check if it makes sense to avail of this or to have it covered as part of health insurance.
