Term insurance is a type of life insurance that provides a large sum assured at affordable premiums. The catch to this kind of life insurance is that usually it does not carry any survival or maturity benefits. Term insurance plans are much cheaper compared to whole life insurance plans because these plans carry no cash value. The plan provides pure financial protection benefits. This means that if the life insured dies during the policy term, the beneficiary will receive the death benefit. If the person survives till the end of the policy term, no benefits are payable to anyone.
For those who have dependents whom they look after, term plans are ideal as they provide a large payout for very cheap premiums. Individuals can choose high sums assured while paying a low premium. This way, if the breadwinner/policyholder passes on from this life, the people who relied on them will receive a substantial amount that will help them get by financially. These plans have a set duration limit and the cover will be offered only for this period. Once the plan lapses, the holder can choose to renew it or give up all benefits.
|Term Plan||Entry Age||Maturity Age||Policy Term||Premium Payment Option||Minimum sum Assured||Payout Type||Claim Settlement Ratio(FY 16-17)|
|ICICI Prudential iProtect Smart||18 years to 65 years||23 years to 75 years||5 years to 40 years||Single pay, duration of plan or 5-year limited pay. Payments can be made monthly, half-yearly or yearly||Subject to minimum premium of Rs.2,400 p.a. (excluding taxes)||Lump sum or monthly income for 10 years||99.96%|
|HDFC Life click2Protect Plus||18 years to 65 years||75 years||10 years to 40 years||Single pay, duration of plan or 5-year limited pay. Payments can be made monthly, quarterly, half-yearly or yearly||Rs.25 lakh||Lump sum + optional monthly income over a period of either 10 or 15 years||99.89%|
|Max Life Online Term Plan Plus||18 years to 60 years||75 years||10 years to 40 years||Equal to plan term||Rs.25 lakh||Lump sum + optional monthly income/increasing monthly income over a period of 10 years||100%|
|Aegon Life iTerm Plan||20 years to 65 years||75 years||5 years to 40 years (or up to the age of 80)||Equal to plan term. Payable monthly, half-yearly or yearly||Rs.10 lakh||Lump sum + optional monthly income for 5 years||100%|
|PNB MetLife Mera Term Plan||18 years to 60 years||75 years||5 years to 40 years||Equal to plan term||Rs.10 lakh||Lump sum + choose to receive monthly income/increasing monthly income or monthly income till child turns 21 years||98.41%|
|Canara HSBC OBC iSelect||18 years to 70 years||80 years||5 years to 40 years||Equal to plan term. Payable monthly or annually||Rs.25 lakhs||Lump sum + optional monthly income||100%|
|LIC e-term Plan||18 years to 60 years||75 years||10 years to 35 years||Annual||Rs.25 lakhs / Rs.50 lakhs for non-smoker||Lump sum||100%|
|SBI Life eShield Plan||18 years to 65 years||70 years||5 years to 30 years||Equal to policy term, payable annually||Rs.20 lakhs||Lump sum||99.98%|
This plan offers life cover payable as a lump sum death benefit, or customers can choose to get a monthly income for 10 years after the demise of the policyholder. Anyone between the ages of 18 years to 65 years can apply for this plan with a minimum tenure of 5 years. Customers can choose to pay the premiums as monthly, half-yearly or yearly. The minimum premium required for this plan is Rs.2,400 p.a. (excluding taxes).
The minimum sum assured under this plan is subject to the minimum premium, with no limit on the maximum sum assured. This policy comes with four plan options, i.e., the Life option, Life Plus option, Life and Health option, and the All in One option. The policy provides varying benefits under different plan options, thus helping you opt for a plan option that is perfectly suited to your needs.
This plan provides optimum coverage with options of either a lump sum benefit, or a lump sum benefit plus monthly income for the beneficiary after the demise of the policyholder. Customers can opt to pay premiums for the duration of the plan, for 5 years or in one single premium. The minimum sum assured under this plan is Rs.25 lakh.
This term plan is ideal for anyone between the age of 18 years to 60 years. With premium payments equal to the term of the plan, customers can opt for a minimum coverage of Rs.25 lakhs. In return, if the policyholder dies during the term, then the nominee will be entitled to a lump sum benefit and/or monthly income and/or monthly increasing income for 10 years.
Aegon offers its Life Term Plan to individuals who are 20 years to 65 years. This policy can be purchased online, and the minimum sum assured one can opt for is Rs.10 lakh. The payout upon the demise of the policyholder can either be a lump sum benefit, or a lump sum plus monthly income for 5 years. The maximum maturity age for this plan is 80 years.
This plan also comes with an Inbuilt Terminal Illness Benefit, thus providing the policyholder a guaranteed benefit in case he/she is diagnosed with a terminal illness. The insurer also offers preferential premium rates to women and non-smokers. A policy buyer can also opt for additional riders along with this plan to enhance the coverage of the base policy.
Customers can opt for a term plan from PNB MetLife for 5 years up to 40 years. The minimum age at entry is set at 18 years to 60 years. Customers can secure financial protection for their loved ones for a minimum sum assured of Rs.10 lakh. With PNB Metlife, customers have an array of payout options that include: Lump sum / Lump sum + monthly income / Lump sum + monthly increasing income / Lump sum + monthly income till the child attains the age of 21 years.
The iSelect Term Plan from Canara HSBC OBC Life Insurance is a non-participating, non-linked, term insurance policy that is available to those between the ages of 18 years and 70 years. The maximum maturity age under this plan is 80 years. Customers can opt for terms of 5 years to 40 years with a premium payment term that is equal to policy term. Customers will benefit from a minimum sum assured of Rs.25 lakhs.
This plan offers the policyholder a cover against death and also against terminal illnesses. Further, a policy buyer can choose to enhance this policy by purchasing the Accidental Death and Accidental Total and Permanent Disability rider, which will provide an additional benefit in case the life assured meets with an accident. Lower premium rates are offered to women and non-tobacco users.
LIC offers its e-term plan to those between the age of 18 years and 60 years. Customers are required to pay the premium annually and in return will receive a death benefit of Rs.25 lakhs if the policyholder dies during the policy term. When purchasing this policy, the policy buyer can opt for a policy term between 10 and 35 years. The maximum maturity age for this plan is restricted to 75 years. The policyholder will have to pay the due premiums on a yearly basis, for the duration of the policy tenure.
SBI Life’s term plan, eShield, is an individual, non-participating, non-linked, pure term insurance plan that is available online on the insurer’s official website. This plan offers a minimum sum assured of Rs.20 lakhs as a lump sum benefit payable to the nominee upon the demise of the policyholder. Anyone between the age of 18 years to 65 years can apply.
If you apply for a term insurance plan, you will be required to pay a premium. If the life insured dies during the coverage period, then the person nominated will receive the death benefits. There are a variety of term plans in the market ranging from 1-year coverage up to 40 years. Term plans are usually renewable once the policy term ends.
There are different types of term insurance plans. Some of the major plans are:
Term Plans have distinct features that separate them from regular life insurance plans.
Term plans have a number of benefits. The main benefit is that the premiums are cheap while the financial protection offered is much larger than regular plans.
Currently, term insurance plans are one of the most sought-after life insurance products, in the country. The popularity of these plans stem from the fact that they offer the policyholder a high sum assured at a comparatively low premium rate, thereby being easy on the pockets while guaranteeing financial security to one’s dependents. Most financial experts recommend purchasing a term insurance policy at a young age, in order for you to make the most out of these plans. Read on to know a few reasons and benefits of purchasing a term insurance policy while you are still young.
Premiums are linked to age: When quoting the premium rate, insurers take several factors into account, such as the sum assured opted for, the policy buyer’s age at entry, policy tenure, etc. A young policy buyer poses less risk to the insurer, since the chances of them being diagnosed with a critical illness or a lifestyle disease is relatively lower. Thus, an insurer is likely to charge you less as premium if you purchase the policy in your 20s or 30s, as opposed to buying it when you are older.
Financial security of dependents: There is nothing that can replace the loss of a loved one. However, an insurance policy, at the very least, ensures that your dependents have the means to carry on with their lives, in the event of an unfortunate eventuality. While a term insurance plan does not acquire a cash value, it does offer a high sum assured to one’s nominee in case of the policyholder’s untimely death. The lump sum amount your family receives, by way of the policy, can help them pay for immediate financial needs, plan for future milestones, and pay off any debts or liabilities that you may have, in a hassle-free manner.
Level premium rate: Under certain types of general insurance policies, the premium payable is likely to increase on an annual basis or whenever the policy is renewed. Since most life insurance firms offer term insurance plans with policy tenures ranging between 5 and 30 years, you can opt for your desired coverage period and pay the same premium amount for the duration of the policy tenure. Thus, you are assured of a level premium, which does not increase with age or inflation, for as long as your policy is active.
Helps in tax savings: Although not directly linked to your age, a key benefit of a term insurance plan is that it also helps you avail tax benefits. Thus, in addition to the policy benefits, you can also save on tax by purchasing a term insurance policy. You can claim tax benefits, up to specified limits, for premiums paid towards a term insurance plan under Section 80C of the Income Tax Act, 1961. Also, if a death benefit is paid out, your nominee can claim tax benefits for this lump sum amount under Section 10(10D) of the Income Tax Act, 1961.
Given the popularity of term insurance plans, all leading life insurance firms offer term insurance policies as part of their product portfolio. However, it is advisable that you compare various plans that are available in the market, request for premium quotes, and opt for one that provides you a suitable level of coverage at an affordable cost, before you purchase an insurance policy.
With a variety of term plans available in the market, it’s difficult to make a choice knowing that you made the right decision. When opting for a term plan, you need to ask yourself the following questions:
Ideally, your term insurance cover should be 10 times your annual income. Anything below this might not be sufficient to take care of your nominee in your absence. Any amount above this is a good option, however, it’s not advisable to take a higher sum, as the extra premium paid towards the plan can be diverted to better investment avenues that are profitable.
All insurance companies lay down certain requirements that individuals need to meet in order to be approved for a term plan. Some of the general requirements are listed below, however, this may vary between different insurers:
ID Proof - You will be required to provide a valid ID to the insurance company. Some of the accepted ID proofs are:
Proof of Residence
There are a number of riders available with term insurance plans depending on your choice of the insurance provider. Some of the main riders available with these plans are:
There are a few exclusions under which the insurance company will not be liable to pay the death benefit or rider benefits. Some of the general exclusions have been listed below
It is important to read the offer document carefully before purchasing the plan to ensure that you are aware of all the details and exclusions mentioned in the plan.
|Criteria||Term Plan||Endowment Plan||Unit Linked Insurance Plan (ULIP)|
|Purpose||Pure protection||Protection plus investment||Protection plus more investment opportunities in equity and debt|
|Benefits||Death benefits||Death and maturity benefits||Death, maturity and withdrawal benefits|
|Returns on Premium||No||Yes||Yes|
|Premium costs||High sum assured at low premiums||Premiums are higher for same sum assured||Premiums are higher for same sum assured|
|Loans||Loans are usually not available||Loans against policy is available||Partial withdrawals can be made after 3 years|
Life insurance offers the much needed financial security to the dependents of a person following his/her unexpected demise. There are different types of life insurance policies including term insurance, permanent life insurance, ULIPs, etc. Term life and permanent life are the two most common forms of life insurance available for customers. When it comes to choosing between these two, the decision must be made based on your personal needs, affordability, financial goals, dependents’ needs, etc. Let’s discuss the pros and cons of these two plans in detail to help you narrow down the choices.Pros and cons of Term insurance
Term life insurance is simplest form of life insurance. It is also the cheapest type of life insurance you can buy. Term plans can be bought for a specific period, say 5 years or 10 years or even 30 years, depending upon your requirement. The cost of insurance gets higher with your entry age. For instance, a term plan for a 30-year old person is much cheaper than a term plan for a 50-year old person. Once entered, the premium amount for term insurance remains the same as long as the policy is renewed. Hence, it is better to enter a term insurance plan at a very young age.
There are a few limitations associated with term insurance plans. One of the major limitations of term insurance is that it does not offer any maturity benefits at the end of the policy term. If a policyholders outlives the policy term, the plan will come to an end and no payout of any sort will be paid to the insured person. If you need protection for a longer time, you must take a separate over after one expires or you need to convert your term plan into a whole life plan (a form of permanent life insurance plan). Lack of maturity benefit is one of the reasons why term plans are much cheaper than other varieties of life insurance.Pros and cons of Permanent Life Insurance
Permanent life insurance is a kind of life insurance cover that remains active throughout a person’s life. This comes with an insurance as well as investment component to provide maximum benefit to policyholders. One of the major advantages here is that the death benefit is guaranteed to the dependents as long as the policy remains active. The cash value associated with the investment part grows steadily and matures at a guaranteed rate. Also, the premium amount remains the same throughout the life of the policyholder.
Among the downsides of permanent life insurance, it has been often stated that these plans are a little more complicated than term life insurance plans. Since there is an assured return, permanent life insurance is way more expensive than term plans. The cash value growth in this type of insurance is extremely slow, and it takes more than 10 to 15 years to accumulate a decent amount.Choosing between Term or Permanent Life Insurance
When it comes to choosing between term or permanent life insurance, various factors such as age, health condition, financial requirements, family needs, retirement plans, debts and liabilities, etc. must be taken into consideration. Also, the cost of insurance determines the choice in many cases. Term plans are ideal for replacing your income and paying for your liabilities. Permanent life plans are most suitable for estate planning. Also, permanent life is ideal if you have to provide for lifelong dependents.Conclusion
Both term life insurance and permanent life insurance policies come with their own set of advantages. Choosing between these policies must be done after understanding of your financial situation and determining the type of protection you need for your dependents. There are various life insurance companies in the market that offer both plans to their customers. Make sure that you do a thorough research on the available policies before choosing a life insurance plan that meets your expectations.
The most unique feature about term insurance plans is that there is no return on premiums in the event that the policyholder survives till the end of the term. Many people do not opt for a term plan because if they survive the term, then the money is gone. There is no return on investment with a term plan. However, there are a few insurance companies in the market that offer returns on premiums with their term plans. There are not too many of these plans available, but with research one can find a term plan that provides this benefit. Under these plans, if the life insured is still alive at the end of the plan term, then they will receive the premiums paid minus any fees, administrative charges, and so on. Some of the top Return of Premium Term Plans in India are:
The Jeevan Mangal Plan from Life Insurance Corporation of India is a micro insurance product that returns all premiums paid during the policy tenure, on the date of maturity.
Key Features of LIC’s Jeevan Mangal Plan:
The Premium Return Protection Plan from Max Life Insurance is a policy that guarantees the return of all premiums paid should the policyholder survive till the completion of the plan tenure.
Key Features of the Max Life Premium Return Protection Plan:
The ICICI Prudential LifeGuard Plan comes with three plan options – Level Term Assurance, Level Term Assurance with Return of Premium, and Single Premium. Policy buyers can opt for any plan option as per their requirements.
Key Features of ICICI Prudential LifeGuard Plan:
The iRaksha TROP from Tata AIA Life Insurance is an online term insurance plan with a ‘Return of Premium’ feature. Thus, this plan provides a death benefit in the event of the policyholder’s untimely demise or a survival benefit if the policyholder survives till the end of the policy tenure.
Key Features of Tata AIA Life Insurance iRaksha TROP:
This plan is a non-participating term insurance plan which is offered at a nominal cost by the insurer. Under this plan, upon maturity of the plan, the policyholder will receive the sum of all premiums paid and the Guaranteed Additions.
Key Features of MetLife Suraksha TROP:
In the event that you need to make a claim from the insurance company for the benefits of a term plan, the steps listed below is the general process to be followed:
Term Insurance Premium Calculators are handy tools that are specially designed to help potential term plan customers to calculate their premiums for the cover they wish to opt for. The calculators are easily available online and are very simple to use. Customers can adjust the sum assured to see different premium rates. To use these calculators, you need to follow the steps given below:
The most important step while taking a term plan is to determine how much coverage would be sufficient. Ensure you choose a sum that will help fulfill the needs of your loved one in your absence.
The ideal cover you should take is determined by the formula below:
Minimum sum assured = Annual income x 10 (+ loans and liabilities, if any)
Yes. You can declare yourself as a non-smoker only if you have not smoked in the last 12 months. Not declaring that you smoke can lead to your claim being rejected later for non-disclosure of important information.
Smoking is the cause of a number of health issues and cancers. The risk borne by insurers for smokers is much higher. Therefore, the premiums are higher for smokers.
Once you submit the request along with all the documentation, the insurer will usually take about 8-15 days. A claim settlement should not exceed 180 days for whatever reason.
Yes, buying a term plan online is cheaper. If you buy a plan through an agent or a branch, the insurer incurs a higher cost to deliver the plan to you. Online, the plan is sold directly to the customer making it cheaper for the insurer. Therefore, premiums are lower on online term plans.
The Insurance Regulatory Development Authority of India (IRDAI) publishes a report annually which details the claims status of every insurance company in the country. The public can view how many claims were made to a company and how many they settled.
Insurance providers offer term insurance plans with varying policy tenures, starting from a period of 5 years. Any policy that you purchase should be sufficient to meet your coverage needs. That being said, it is always advisable to opt for a long-term insurance policy since the premium rates will only keep increasing each time you renew your policy due to your advancing age.
No, insurance providers do not offer the same riders under different policies, thus making it all the more important that you consider this factor when purchasing a policy.
Yes, you can purchase more than one term insurance plan. Provided you have disclosed all facts to the insurer and have made your due premium payments, your nominee should be able to claim the payout from both policies.
Yes, term insurance plans come with a free-look period. For most term life plans, the free-look period is usually either 15 days or 30 days. You can review the terms and conditions of your policy during the free-look period and return it if it doesn’t meet your expectations.
Most life insurance plans come with a suicide clause. Thus, if the policyholder, whether sane or insane, commits suicide within a year of purchasing the policy, the insurer will not be held liable to pay a death benefit. In this case, a percentage of the overall premiums paid will be returned to the nominee. Further reasons for claim repudiation are non-disclosure of key information at the time of purchasing the policy, misrepresentation, fraud, etc.
This will vary based on the insurer’s terms and conditions. Certain insurance providers will offer term insurance plans to NRIs, while other insurers might require you to be a resident of India in order to purchase the policy. Make sure to read through the eligibility criteria of the policy or reach out to an insurance advisor before purchasing a policy if you are an NRI.
Pure term insurance plans do not provide a maturity benefit at the completion of the policy tenure. However, there are a few term insurance plans that have a ‘Return of Premium’ feature, wherein you receive the sum of all premiums paid during the policy tenure at maturity of the policy.
For most term insurance policies, your premium amount will remain constant for the duration of the policy tenure. However, in most cases, you will have to renew the policy for a slightly higher premium rate. This premium will be decided primarily on the basis of your age at the time of renewing the policy and the sum assured.
No, since term insurance plans do not have a cash value attached to them, you will receive no surrender benefit if you surrender this type of a policy. Since it is always good to have an active life insurance plan, ensure that you continue to pay the due premiums during the policy tenure.
The exact claims settlement procedure varies from insurer to insurer. However, most insurers settle claims within a period of 7 – 30 days based on the timely submission of supporting documents and the prevailing conditions of the said claim.
Yes, you can change your nominee any time during the policy tenure. You will, however, have to submit a request to the insurer for the same.
Riders are offered by insurance providers in an effort to help policy buyers customise their policy. However, you only have to purchase a rider if you are in need of it. Purchasing a rider can help you or your nominee receive an additional benefit, and thus increase the level of protection offered by the base plan.
Yes, it is completely safe to purchase a term insurance plan online since policy payments are done via secure, authorised channels. However, when buying insurance, make sure to only purchase a policy from a reputed insurance firm or from a trusted third-party website.
No, since term insurance plans do not have a cash value attached to them, you cannot avail a loan against a term life insurance policy.
Yes, policyholders and nominees are eligible to avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, for premiums paid and the death benefit, post the policyholder’s death.
Purchasing an insurance plan online, as opposed to offline channels, has several benefits. Firstly, since there are no agents involved, the process is likely to be more hassle-free as you can purchase the plan right from the comfort of your house. Also, when you purchase the insurance plan online, you can compare various plans offered by different insurance providers, and opt for a policy that is best suited to your requirements. Insurance providers selling online plans are also likely to have a simpler documentation process.
Insurance providers will mention the eligibility criteria for each plan in the policy brochure. Thus, if your age at entry falls within the insurer’s age limits, you will be eligible to purchase the policy.
Both types of insurance products serve different purposes. A term insurance plan offers only protection. Thus, if the policyholder passes away during the policy tenure, a payout is offered to the nominee. However, if the policyholder does survive the policy term, no benefit is paid. A ULIP or Unit Linked Insurance Plan, on the other hand, offers customers the dual benefit of a savings cum investment option. Thus, in addition to the risk cover, you are also provided the option of investing in funds that match your appetite for risk. Before opting for a certain type of policy, make sure to consider our stage of life, needs of your dependents, financial goals, and liabilities to find the right insurance policy.
A term insurance plan is a pure protection policy. Thus, they offer a risk cover with a large sum assured for a relatively low premium. Considering this, they do not serve as a savings/wealth creation option.
No, life insurance premiums are decided by the insurer. Insurance companies consider various factors to measure the premium. A few factors that could affect premium rates include the policyholder’s age at entry, the gender, previous medical conditions, smoking/tobacco use, nature and type of occupation, the type of policy, etc. Since the premium rates offered various insurers will differ, it is recommended that you compare premium quotes on a third-party website and opt for a policy that will provide you optimum coverage for a competitive premium.
Discounts and offers provided by insurers will vary from company to company and time to time. Thus, you will have to check on the insurance website or consult an agent to know if any discounts are being offered.
The minimum age at entry for most term insurance plans in the market is 18 years. Thus, if your child is under the age of 18 years, you will not be able to purchase a term insurance plan for him/her.
The decision of what insurance plan to buy will vary based on several factors, such as your liabilities, premium payment capacity, needs of your dependents, etc. The advantage of term insurance plans is that the policy buyer can opt for a high sum assured by paying a low premium. However, with increasing age, the cost of term insurance plans also rise slightly. On the other hand, a retirement/annuity/pension policy is best suited for those looking to secure their post-retirement years, by way of a steady source of income. Thus, make sure to consider these factors before purchasing any policy.
Yes, most insurance providers offer services like online premium payment, via the insurer’s official website.
Kotak Mahindra Life Insurance, which is currently the seventh largest life insurance firm among the 25 life insurance companies in India, has reported consistent and satisfactory growth for the last fiscal. Up to December 2017, the insurance firm reported a growth of 38% in the collection of new business premiums, while collection of renewal premiums increased by 27%.
Mr. Murlidhar, the MD and CEO of the insurance company, has said that 60% of the premium collection comes from traditional insurance products, while 35% comes from ULIPs. It is also reported that business from the retail segment contributed to 48% of the insurer’s premium collection and business from groups contributed to around 43% of the premiums collected.
22 February 2018
The upcoming merger of three public sector insurance firms – National Insurance Company, United India Insurance, and Oriental Insurance Company – is likely to make a large number of staff redundant, thereby resulting in savings of around Rs.3,000 crore per year. The government has also said that it is likely that the merger of these three companies and the listing of the merged company will close by the end of the next fiscal year. The merger is expected to end any unhealthy competition between the insurance firms and reduce operation costs, in due time.
16 February 2018
The Insurance Regulatory and Development Authority of India (IRDAI) has asked all insurance companies to transfer deposits that haven’t been claimed by anyone for the last 10 years, as on 20 September 2018, to the Senior Citizens’ Welfare Fund (SCFW), by 1 March 2018. All insurance companies, including those coming under the life insurance, health insurance, and general insurance sectors, will have to comply with this directive that was issued by the IRDAI in a circular.
The SCFW, which is a public fund created by the government, has been set up to promote the welfare of senior citizens within the country by way of certain schemes, promotion of affordable healthcare facilities, introduction of long-term savings options, etc.
14 February 2018
Max Life Insurance, which is one of the largest life insurer in India, has recently announced that their Assets Under Management (AUM) has touched the Rs.50,000 crore mark. The company’s AUM has grown at a CAGR (Compounded Annual Growth Rate) of 19.5%, over the past three years.
Max Life’s growth can be accredited to growth of new business, strong investment performance, and increased retention of customers. The insurer reported a First Year Premium, including both retail and group segments, of Rs.3,666 crore in FY16-17. The Gross Written Premium for the same period increased by 17% to a sum of Rs.10,780 crore. The renewal premium, too, increased by 12% to a sum of Rs.7,114 crore during the same period.
13 February 2018
Leading life insurance provider, PNB MetLife, has recently launched a humorous video campaign in effort to increase awareness of their protection products. The insurer recently increased the life cover limit for their online term insurance plan, the PNB MetLife Mera Term Plan, from 75 years 99 years.
The campaign is designed to help viewers reassess their protection needs and to improve customers’ awareness of purchasing term insurance plans that are both affordable and provide adequate life cover for a long duration. The age limit for the Mera Term Plan was increased to 99 years in light of the increasing life expectancy of Indian consumers, who are also looking to stay protected beyond 70-75 years of age.
8 February 2018
HDFC Standard Life Insurance, which is the third-largest, private-sector life insurance provider in India, has reported a 33% growth in their new business premiums, for the period that ended in December 2017. The insurer’s new business premium rose from Rs.5,330 crore, which was collected last year, to Rs.7,070 crore.
While the majority of the insurer’s product mix was made-up of market-linked insurance products, protection products, too, saw an increase of 27.3%, in terms of the new business premiums. As a result of the steep growth reported for all products, the life insurance firm’s assets under management (AUM) rose by 27%.
24 January 2018
T S Vijayan, the chairman of the Insurance Regulatory and Development Authority of India, will leave office on February 21, 2018. Nearly 40 experienced personnel from the field of insurance have applied for the post.
The initial notification stated that the applicants should have at least a 30- year work experience, should have been the secretary to the government of India or held an equivalent position at the Centre or the State. V K Sharma, the chairman of LIC and G Srinivasan, the chairman of New India Assurance are a few among others who have applied for the post of chairman of the IRDA.
The revised notification by the department of financial services stated that chairmen of public sector general insurance companies and senior executives of LIC can also submit applications. CEOs of large financial institutions from the private sector can also apply. The term of the chairman is for a period of 5 years and he/she is authorised to a sum of Rs.4.5 lakh per month.
18 January 2018