One of my friends has been blessed with a daughter a few days back & he’s on cloud eleven. Well but with such bundle of joy comes a lot of responsibilities. So as a responsible dad he wanted to take a life insurance cover. How much insurance he requires is a different subject matter altogether & obviously the first step to insurance. I would talk about this very soon in my next posts. But once you decide your insurance amount you need to find the cheapest term plan.
I looked on net for him to find the cheapest insurance plan. And here it is Aegon Religare iTerm Plan. A unique aspect of the plan is that it can only be bought online which enables the insurance company to cut costs substantially.
The cost: For a 28 year old healthy non-smoker male an insurance cover of Rs. 1 crore for 25 year term, the premium is Rs. 9,400.
The Plan Details:
The plan is a pure term insurance product. In other words, apart from the sum assured, which is payable only on the death of the policyholder, there is no additional benefit. The minimum and maximum entry age is 18 years and 60 years, respectively. The age at maturity is capped at 65 years. The minimum and maximum policy term is 5 years and 25 years. But only those above 30 can buy a policy for less than 10 years. You can choose your sum assured, subject to a minimum of Rs 10 lakh, though the higher sum assured is subject to underwriting requirements. This means that rates could go up if health parameters such as blood pressure, weight, etc, do not fall within the range prescribed by the company.
The only exclusion in this policy is that it does not cover death by suicide during the first policy year and no death benefit is payable within one year from the reinstatement of the policy. As the life insurance company has made the policy available online, you can buy it from your home, making it a convenient purchase. The product, however, does not allow the insured to avail of any additional benefits such as accident disability benefit, making the offering short of a complete solution.
Why I recommend this plan?
- Its the cheapest term insurance cover as of today
- There is no intermediary involved & you can easily buy it from comforts of your home with few clicks
Things Lacking in the plan:
- You cannot buy additional accident disability cover with the policy.
- Link for buying the plan & other details
I think this is the way forward for insurance industry. They need to find new channels to reach their end users in a more efficient & cost effective manner. Term Plans are simple products and can be understood by most. So its a commendable step by Ageon Reliagare to launch iTerm Insurance Plan and do away with agents who most of the time are more interested in their gains than yours!