reg. Term Insurance Policy – Private or LIC?


I am looking to compare pure Term Life Insurance policies between private companies and LIC. I find that the Private company Insurance premiums are very cheap when compared to LIC. For eg. for the same amount of premium I get 50 lakhs cover for 25 years whereas with LIC I get only 25 lakhs cover for 25 years. Can you suggest me whether to take a Term insurance from Private or from LIC to cover my family. The problem here is that the person taking the insurance will not be there and the family members should not be put in to trouble for getting the claim. Pl. send your advice.

Thank you.

6 Replies to “reg. Term Insurance Policy – Private or LIC?”

  1. We all do the same mistake LIC is not the government organization, rather it related to Govt. We have became habituate with LIC since 100 years, so it become more closer to us. But if you go through the serveral bank oriented Insurance, they can give you a large range of varities in product. Being a General Indian I was also in a confusion like you until I Get compared within ING Vyssya LIfe, SBI Life and ICICI Prudential, Best three other than LIC, PLEASE GO THROUGH WEBSITES OF ALL THE ABOVE THREE, YOU CAN FOLLOW THE SAME THAT PRODUCT ARE ALL OF THE COMPANY ARE MORE OR LESS SAME, BECAUSE ALL THE INSURANCE SELLING COMPANIES (INCLUDING LIC) HAS TO GO UNDER THE SAME RULES AND REGULATION OF IRDA (INSURANCE REGULATION DEVELOPMENT AUTHORITY) AND THAT IS MUCH STRICTLY MAINTAINED BY THE INSURANCE POLICY RELATED TO BANK. YOU CAN GO SURELY WITH ANY BANK ORIENTED POLICY, SPECIALLY ING MY CONTACT NO. IS 9433707733 IN KOLKATA. I CAN ASSURE YOU CAN COMPLETELY DEPEND ON ICICI ALSO AND SBI ALSO.


  2. LIC has proved it in settling maturity claims where as others are yet to prove them since they came to the field in recent years.

  3. Take 2 policies from different private players.


    Their rates are one of the lowest.

    You can take one from AVIVA.

    Also have a look at critical illness riders. LIC does not offer critical illness riders with TERM policies.

  4. Mr. vijay,
    Your question is really interesting and given some answer are also interesting. Most of the man are prejudice they always prefer to other for joined whether they all ready attached. I`m not here for blame game. Lets talk about your question you ask regarding term insurance it`s also called pure insurance , it have no any maturity benefit only have death claim payable to nominee. You are asking about pvt. and LIC and telling some hint about premium but i think premium is not a factor to choose any term insurance the main thing is claim. Those company are best which claim ratio is best because you taken policy only for risk cover. Some says about IRDA so its absolutely right . Kindly visit at IRDA site and see claim ratio .
    I m given here some hint details are at IRDA site.
    COMPANY—————–CLAIM REJECTION % (2009-10)
    aegone religare – 44%
    aviva-9.75 %
    bajaj allianz-5.20%
    bharti axa-22.20%
    birla sunlife-10.62%
    future generali-29.36%
    ing vysya-4.26%
    icici prudentail-3.27%
    max new york-12.31%
    reliance life-7.05%
    sbi life-14.75%
    tata aig-12.93%
    Now it is your decision you like cheaper or fair claim.

  5. I would suggest you to take LIC as LIC has the highest claim settlement ratio, which assured you that after you, you family WILL get its money. You can not be that sure with other companies. Remember you get back what you pay. There is no FREE LUNCH

  6. First of all I would appreciate you for your decision to go for Term Life Insurance. Most of the commoners don’t understand that it is the best insurance plan. Regarding private or LIC, LIC is not a Govt. organisation, that’s true, but it’s a PSU just like any nationalised bank. But the subsidiary life insurance company of banks like SBI Life is a private organisation. For choosing your life insurance company, you must, look for the company which gives less harassment to your family in your absence. Can the money saved by going with the company having low cost policy be used for reducing the harassment during claim ?

    For LIC, there is a long track record to verify with, whereas others players are quite new in this field. As far as I know, LIC don’t even go for verification if the claim amount is less than 1 cr and if the required documents looks OK !!

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