- About Coverfox
Term insurance stands as a cornerstone of financial planning, offering unparalleled protection and peace of mind for your loved ones. At Coverfox, we recognise the importance of safeguarding your family's future against life's uncertainties. Our platform serves as your guiding light, providing comprehensive insights into term insurance, and empowering you to make informed decisions that ensure a secure tomorrow.
Term insurance is a type of life insurance that provides coverage for a set period. This insurance is designed to protect the policyholder's beneficiaries financially, in case the insured passes away during this period. Unlike other types of life insurance policies, term insurance does not include a savings element or a cash value component. It simply provides a death benefit, which is a lump sum payment to the nominee(s) if the policyholder passes away within the policy term.
Term insurance plans offer several benefits:
Financial Security: Provides a substantial sum assured as a lump sum to the nominee(s) in case of the policyholder's demise during the policy term, ensuring financial stability for the family.
Affordability: Term plans generally offer high coverage at relatively low premiums, making it an affordable option for substantial life coverage.
Customizable Coverage: Allows policyholders to choose the coverage amount and policy term based on individual needs and financial responsibilities.
Income Replacement: Ensures replacement of the insured's income, aiding the family's financial needs, such as mortgage payments, education expenses, or daily living costs.
Tax Benefits: Premiums paid towards term insurance plans are eligible for tax deductions under Section 80C of the Income Tax Act, offering additional savings.
Selecting the best term insurance company involves considering several factors to ensure comprehensive coverage and reliable service:
Claim Settlement Ratio: Look for insurers with a high claim settlement ratio, indicating their efficiency in settling claims promptly.
Financial Stability: Choose an insurer with a strong financial background to ensure they can honour claims, especially during challenging times.
Coverage Offered: Assess the extent of coverage provided, including riders or add-ons that suit your needs.
Reviews and Reputation: Consider online reviews and feedback from existing customers to gauge overall satisfaction with the insurer's services.
Term insurance riders are additional benefits or enhancements that policyholders can include in their base term insurance policy for added coverage.
Accidental Death Benefit Rider: Provides an additional sum assured in case of death due to an accident, offering extra financial support to the nominee(s).
Critical Illness Rider: Offers a lump sum amount if the insured is diagnosed with specified critical illnesses mentioned in the policy, helping cover medical expenses.
Waiver of Premium Rider: Waives future premium payments in case of permanent disability or critical illness, ensuring the policy continues without further premium obligations.
Income Benefit Rider: Ensures a regular income stream for the family after the policyholder's demise, providing a monthly or annual income for a specified period.
The following Term Insurance Companies offer some of the best policies on Coverfox
Aegon with Bennett, Coleman and Company Limited launched Aegon Life Insurance Co. Ltd. Headquartered in Mumbai with 4.4 lakh happy customers across the country, Aegon Life Insurance Co. Ltd is one of the oldest and international insurance provider, providing life insurance, asset management, pensions. With more than 170 years in providing life insurance Aegon has come a long way to help their customers to reach their long-term financial goals.
A joint venture between a Future Group and Generali Group. Future Group is one of the top retailer in India and Generali Group is a global player in insurance and financial market since 1831. With a vision to protect and enhance their customer’s life they have sold more than 71 lakh policies across India.
A leading life insurance company, HDFC Standard Life Insurance (HDFC Life) was formed as result of partnership between HDFC Ltd and Standard Life. HDFC Life is long-term life insurance provider providing range of products to individual and group insurance including savings and pensions plan.
Established in 2000, a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. started their operation in 2001. Max Life Insurance was awarded as “Best Underwriting Initiative of the Year” in the Asia BFSI Excellence Award. With a strong vision ‘To be the most admired life insurance company,' Max Life recorded Gross Written Premium of Rs. 8,172 crore with sum assured of Rs. 2,26,701 crore in the FY’15.
Several insurance companies offer reputable term insurance plans in India, each with its unique features and strengths. Here are some top companies can trust to buy a term insurance policy.
LIC was established nearly 60 years ago. LIC offers different plans to cater different needs of the policyholder. LIC also provides online term plan.
SBI Life Insurance Co Ltd is an alliance formed by State Bank of India (SBI) and BNP Paribas Cardif S.A. (BNP Paribas Cardif). In 2016, SBI Life Insurance was awarded as 'Life Insurance Company of the Year' and ‘Bancassurance Leader Life Insurance (Large Category)' at the Indian Insurance Awards.
TATA AIA life insurance is a joint venture company formed by TATA Sons and AIA Group. It was licensed as a life insurance provider to operate in India on February 12, 2001. However, they started their operations on April 1, 2001.
Aviva Life Insurance Co. India Ltd is a joint venture of Dabur Invest Corp and Aviva Group. Aviva Insurance was the first company to introduce modern unit-linked and unitized with-profit policies. Aviva offers different term plans, one can customize it as per the requirement.
Bajaj Allianz Life Insurance Company Limited (IRDA Reg. No 113) is a joint venture between Bajaj Finserv Limited and Allianz SE. Both the companies are respected insurance providers. Bajaj Allianz began their operations in 2001, and offers customized term insurance plans.
|Aegon Life Term Insurance
|Reliance Nippon Term Insurance
|Sahara Term Insurance
|Pramerica Life Term Insurance
|Exide Life Term Insurance
|IDBI Federal Term Insurance
|Indiafirst Term Insurance
|Kotak Term Insurance
|Star Union Dai Ichi Term Insurance
|PNB Metlife Term Insurance
|Tata Aia Term Insurance
|ICICI Prudential Term Insurance
|SBI Term Insurance
|Max Life Term Insurance
|Shriram Term Insurance Plan
Determining the "best" term insurance company depends on individual needs and preferences. Companies like ICICI Prudential, HDFC Life, and Max Life are often considered among the best due to their diverse plans, comprehensive coverage, efficient claim settlement, and competitive premiums. However, the "best" company varies based on factors like coverage requirements, affordability, rider options, and customer service.
Term insurance is a good option for many reasons. It is affordable, meaning you get high coverage for a lower cost. You can choose a higher coverage amount for lower premiums compared to other life insurance plans. The structure of term insurance is simple, with no savings or investment component, which keeps premiums lower.
Term insurance is a smart investment for many reasons. Firstly, it provides financial protection for your family in case of your untimely death during the policy term. This can help them maintain financial stability during a difficult time.
In general, life insurance companies are considered trustworthy and reputable entities that play a crucial role in providing financial security to individuals and families. They operate under strict regulations and are often highly regulated by governmental authorities to ensure compliance and protect consumers' interests.
Convertible term insurance plans come with a provision that allows policyholders to convert their term insurance policy into a permanent life insurance policy, such as whole life or endowment, within a specified timeframe mentioned in the policy terms.
Yes, however, there are some important factors to keep in mind before going for it. Firstly, it is crucial to disclose all existing insurance policies when applying for a new one. Secondly, insurers assess the total coverage amount based on factors like income, financial status, and existing insurance policies. They might limit the total coverage they offer to ensure it aligns with your financial capacity. Thirdly, each insurer will evaluate your health, lifestyle, and other factors independently. As a result, premiums for each policy might vary based on their assessment. Lastly, in the event of a claim, both insurers should be informed, and claims need to be filed separately with each insurer based on the respective policy terms.
Yes, term insurance policies can generally be cancelled by the policyholder at their discretion. The process for cancellation varies among insurance companies, but typically, it involves submitting a written request to the insurer for policy cancellation. Upon cancellation, the insurer might provide a refund of the premium paid, excluding any charges or deductions as mentioned in the policy terms.
The best-term insurance companies generate revenue from premiums, investment income, careful underwriting, and managing the risk associated with their policyholders.
Term insurance premiums typically increase under specific circumstances: Policy Renewal: For renewable term insurance policies, premiums can increase at the end of the initial term when policyholders renew their coverage. Renewal premiums might rise due to factors like age, health changes, or adjustments in the insurer's pricing. Policy Conversion: In convertible term insurance plans that allow conversion to permanent policies, premiums for the new policy (after conversion) might increase as it's based on the insured's current age and health at the time of conversion. Changes in Health: With certain policies, if there's a significant deterioration in health or the policyholder develops medical conditions, the premiums for future coverage might increase upon renewal or modification.
Term Insurance was first offered in India in 2009. Since then, term insurance has gained popularity in India as an essential and affordable life insurance product, offering substantial coverage at relatively low premiums, and providing financial security to policyholders' families in case of untimely demise.
Term insurance claims can get rejected for several reasons, some of which include: Non-Disclosure of Information: Failure to disclose accurate and complete information during the policy application, especially regarding health-related details, previous medical history, or lifestyle habits, can lead to claim rejection. Policy Lapse: If premiums are not paid within the grace period and the policy lapses, any claims made during the lapsed period may get rejected. Policy Exclusions: Claims for situations explicitly excluded in the policy terms, such as death due to suicide within the policy's initial period (usually one to two years), may be rejected. Misrepresentation or Fraud: Providing false information or making fraudulent claims can result in claim rejection. Expiry of Policy Term: Claims made after the policy term ends or after the maturity of the policy (in non-term plans) are generally not honoured. Inadequate Documentation: Insufficient or incomplete documentation supporting the claim can lead to rejection. Death Under Excluded Circumstances: Death occurring under circumstances excluded in the policy, such as participating in hazardous activities not covered by the policy, might result in claim rejection.