Which is the Best and Cheapest Term Insurance Policy?

am 32 years old. I would like to know the following
1. Which are the companies which provide the best quotes for Term Insurance? Are the quotes for these companies available online?
2. How much Term Insurance Coverage you
3. How many years should I take cover for – is maximum duration really beneficial
4. Are the Private Sector Companies reliable? How are we protected if one of them collapses tomorrow? Or should we go for only LIC and SBI?

10 Replies to “Which is the Best and Cheapest Term Insurance Policy?”

  1. Hi, I am the same age as yours and had done a lot of legwork to find the best policy for myself.
    Finally I landed up at http://www.InsuranceMall.in and sent a query using their ask and expert button…and FLASH! I got my comparative quotes from leading Insurance Companies in a day’s time. You just need to provide your age, coverage you want, term you want and tobacco habits and http://www.InsuranceMall.in provide you quotes on email.

    Answers to the other questions:
    1. Best Companies are Kotak, Tata AIG, Max New York Life, Birla, Reliance.
    2. Term Insurance Coverage should be calculated as 100 times your monthly salary plus long term loans you may have.
    3. Duration of Coverage of Life Insurance should be till age of retirement when you dont have dependants on you…or you become a dependant yourself. 60 years is a good benchmark. You should therefore go for 30 years.
    4. Ofcourse, the Private sector companies are reliable. As informed by a InsuranceMall.in expert all Insurance companies go through liquidity and solvency norms to provide coverage to us. They have huge deposits with Insurance Companies + as their Sum assured issued grows they are required to infuse more capital in the company. So they are really safe.
    LIC and SBI do give a comfort factor, as this is a long term policy, but I would still recommend to make a proper cost-benefit-reliability analysis.

  2. Term Insurance rates depend on the length of the policy and the amount of the policy. If you get say a 30year term–and keep it, you can just continue it without a health examination when you reach 60. Another thought is that you need more coverage now and less when you are 60 so your premiums would be lowered.

    My suggestion would be to get an financial needs analysis done. Some companies charge for these–My company does them free for anyone. A financial needs analysis is like a “snap shot” of your financial situation. Along with that is an computed sheet that shows how much insurance do you need. With that figure,,,,A policy can be personally written to your individual needs.

  3. You already have got good answers.

    ‘Adequate Risk Cover’ is different for different families. Factors to be considered in order to figure out how much insurance you need:
    1. No. of dependants – Higher the no. of non-earning dependants, higher is the insurance need.
    2. Future expenses – They are usually education and marriages. No. of children will determine this expense.
    3. Debt – If you have borrowed for buying a home, your survivor has to repay it.
    4. Your present financial position – If you are very rich than you will require very little risk cover.

    It is advisable to purchase diff. term plans of diff. periods according to your goals. Stop these plans once you have acheived your goals.
    e.g. Once education of children is over cover required is less
    Daughter gets married, cover is further reduced and so on.

  4. for insurance– go for only insurance, check with oriental insurance etc
    for investment– go for fix deposit, mutual funds,gold etc
    don’t mix insurance and investment

  5. First and Foremost, “Best” and “Cheapest” do not go hand in hand for any product on the market.

    You can get quotes from Intelliquote and Select a quote sites. You can also get them by calling up agents or brokers directly.

    For amount of coverage, that depends on your situation. How much debt do you want to eliminate upon your death? How much do you want to pay for your funeral? How much do you want to leave per month for those that survive you? Do you want to leave money for kid’s college? Etc.

    For how many years is also dependent on your situation. How long do you need coverage? Do you have a mortgage with 25 or 30 years left on it? Do you have a 20 years till kids go to college? Etc.

    Private vs Public? Well, regardless of the agent/broker, any company you choose to go with should be rated A+ or better (A is still good, but A+ is better).

    I know this didn’t answer your question, but hopefully it gave you something to think about.

  6. As someone else mentioned best and cheapest are two completely different things.

    Would you rather have the cheapest rate and go with a company that has only been in business for 5 years, or pay an extra $ 1 a month to be with a company that has been in business for 100 years?

    Another example, in Canada…there is a company that will refund the smokers rating if you quick within the first 2 years of having the policies. Would you rather pay a couple bucks more to get that money back if you’re already thinking abotu quitting, or go with the cheapest company and not even have that option…making it more expensive if you actually quit…(obviously hypothetical and might not apply to you since we don’t know if you even smoke, but shows cheap isn’t always best)

    Quotes are available online, but the companies will ALWAYS quote you based on Super Preferred health status which is typically a subhuman health status where you’ve hardly even had a cold ever in your life.

    Contact a lisenced insurance broker in your area, that sells term and whole life (unless there is a reason you are asking specifically about term, whole life might be suitable as well in some cases…if you’re looking at term because you’ve read about Buy Term and Invest the Rest, do some more research, like reading “No Salesman will Call” by Lyle Manery…it debunks more than 10 books that promote the theory and exposes the flawes in every one of them) through multiple companies. They can compare rates and explain which companies are good or bad.

  7. The best can not be the cheapest.

    LIC has won the No.1 brand award in the service sector from the Brand Equity survey undertaken by Economic Times. This was won for the fifth year in a row.

    LIC has highest claim settlment ratio in the industry as reported by IRDA in Eco Times dated 29.4.2008.

    If you need proof of either mail me on [email protected] and I can mail you scanned pages.

    If you are Mumbai based I can help you in planning your Life Insurance Portfolio.

  8. 1. LIC’s Term Assurance seems to be the best. yes
    2. (your retirement age minus 32) times your annual income
    3. till the age you expect to retire
    4. all are reliable, but its the ease of claim settlement that is more important and hence go for LIC

  9. Hey friend…I understand your concern. I was in the same state 3 months ago. But let me tell you this guy from ICICI Pru helped me like anything, should you like to talk to him, just give him a call at 9873664258, his name is Saurav…

    Take care and Happy Insurance…

  10. my dear india is having around 16 authorised inurance companies
    most of them r following and highlighting ULIP policies
    these r the best plans in the market avialable , anyway dont go 4 LIC ,
    Govt: is making sure abt u r money tht investing in private sector
    dont worry in tht , if u wannt the money 4 u r childerns education in future is best long term policies is 15-20years if u need the money is 4
    buying a house or car like tht just go 4 short term policies is from 3-5 years

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