Term Plan Insurance:  Aviva LifeShield Plus vis-à-vis Aegon Religare Level Term Plan

A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

LifeShield Plus is the term insurance product of Aviva Life Insurance.

Level term plan is the term insurance plan of AEGON Religare.

Age Eligibility:

Anyone aged between 18 years to 55 years can apply for Aviva LifeShield Plus. The maximum age at maturity should not exceed 65 years.

For AEGON Religare level term insurance, person aged between 18 years to 55 years can buy the term insurance plan. Level term plan maximum maturity age is 75 years.

Life Cover:

The minimum life cover that can be opted with Aviva LifeShield Plus is Rs 10 lacs and for level term plan, minimum cover is Rs 5 lacs. The maximum cover in Aviva LifeShield Plus and Aegon level term plan is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

You can choose policy term from 10 years to 30 years with Aviva LifeShield Plus. The policy term for Level term plan is from 10 years to 30 years.

Riders:

Aviva LifeShield Plus have two riders available which can be opted by paying additional premium- Accidental death benefit and Dread disease rider.

AEGON Religare level term plan has accidental death, dismemberment and disability rider, critical illness rider.

Premium Comparison:

The premium comparison for few samples is given below:

*kindly verify the premium for any changes. The premium for females is bit lower.

Reinstatement:

On policy lapse, both Aviva LifeShield Plus and AEGON Religare level term plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio for Aviva life insurance is 91% whereas for AEGON Religare, claim settlement ratio is 46%.

End Note:

Both Aviva LifeShield Plus and AEGON Religare are good term insurance plans which are suitable for individuals looking for particular Sum Assured. Riders can be added with both plans by paying additional premium to increase financial security.

Bharti AXA eProtect Plan Review

Plan Name: eProtect

Insurer: Bharti AXA Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

Bharti AXA iProtect Plan is the latest launched term life insurance plan which offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since Bharti AXA iProtect is a pure risk plan, there are no survival benefits.

Who can buy iProtect Plan?

Bharti AXA iProtect term life insurance plan is for any individual who is at least 18 years. iProtect policy term is minimum of 10 years and maximum of 30 years. If you are 50 years old the maximum term you can opt for is 10 years. That is because iProtect plan maturity age cannot exceed 60 years.

How Much Cover: The minimum Sum Assured is Rs 25 lacs. iProtect allows you to take very high cover as per your financial profile. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit: The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter. The policy should be active to receive the benefit.

Family Care Benefit: This benefit becomes applicable after two year consecutive premiums have been paid. Under this benefit, a part of Sum Assured equal to Rs 100,000 is provided to the nominees within 48 hours of submitting all the required claim documents. The 48 hours time limit is subject to some conditions like working day etc.

Discount: For Sum Assured above Rs 50 lacs, premium discount is made.

Tax Benefits:  Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

The following example will make the plan crystal clear.

Illustration:

Gagan is 25 years old and has just started begun his career. He wants to financially secure his parents so that if something happens to him, they do not face any financial constraints.

Gagan opts for online term plan Bharti AXA iProtect and chooses cover of Rs 50 lacs for policy term of 30 years. He chooses maximum term available so he is covered for many years and he has to pay level premium. He has to pay premium of just Rs 4,026 inclusive of service tax, cess and other taxes.

In case of unfortunate death of Gagan

His family gets = Rs 50 lacs (Sum Assured) + Savings

Consider these Scenarios:

Scenario1: Gagan dies in the 4^th policy year- Gagan’s family will get 50 lacs. Same is true for all policy years.

Scenario 2: Policy is in grace period and Gagan dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses on the 22^nd year, Gagan dies, nothing will be paid.

What Else?

How to buy: iProtect plan can be bought online. Buying Online is very easy and hassle free process.

Free Look Period: iProtect plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: iProtect can be paid within 30 days from the date of renewal. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Sum Assured: The policyholder cannot change the sum assured of iProtect once taken. However he can opt for another term plan as per his needs.

Reinstatement- iProtect can be revived within 5 years from the premium due date. However all outstanding premiums are to be paid.

Maturity: There are no maturity benefits in Bharti AXA iProtect plan as it’s a pure term life insurance plan.

Payment Method: Net banking, credit/debit card are accepted by Bharti AXA.

Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

Policybazaar take on Bharti AXA iProtect Plan

Bharti AXA is the latest insurer which has come up with online term plan. What differentiates iProtect from other online term plan is the Family Care benefit which will pay the emergency amount equal to Rs 1 lac within 48 hours. This amount will be reduced from Sum Assured if claim is approved. However, there are no riders with Bharti AXA iProtect.

Close Competitors:

AEGON Religare iTerm, Future Generali Smart Life, ICICI Pru iProtect, Kotak e-Preferred, Met Protect term plan

Interested? Compare with similar plans

AEGON Religare iTerm Plan

Plan Name: iTerm

Insurer: AEGON Religare Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

AEGON Religare iTerm Plan is recently revised term life insurance plan which offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since AEGON Religare iTerm is a pure risk plan, there are no survival benefits.

Who can buy iTerm Plan?

AEGON Religare iTerm life insurance plan is for any individual who is at least 18 years or below 65 years. iTerm policy term is minimum of 5 years and maximum of 57 years. So if you are 50 years old the maximum term you can opt for is 25 years. That is because iTerm plan maturity age cannot exceed 75 years.

How Much Cover: The minimum Sum Assured is Rs 10 lacs. iTerm allows you to take as much high cover as you want. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit: The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter. The policy should be in force to receive the benefit.

Terminal Illness Benefit: If life insured is diagnosed with critical illness, 25% of Sum Assured is paid and Sum Assured is reduced by that amount.

Riders: You can add the following riders with the plan:

Accidental Death: In case of death as a result of accident, Sum Assured under the rider will be payable.

Waiver of Premium on Critical Illness: On diagnosis of four critical diseases namely Cancer, Coronary Artery Bypass Surgery, Heart Attack and Stroke, future premiums will be waived off and policy will continue.

Women Critical Rider: This feature is for women life insured and pays additional % of Sum Assured on diagnosis of critical illness.

Tax Benefits:  Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

The following example will make the plan crystal clear.

Illustration:

Ravi is 32 years old with wife and 2 kids. His yearly salary is Rs 6 lacs and makes savings of one lac per year.

Suppose Ravi dies after 5 years, he will have left paltry 5 lacs to his dependents. Under same scenario, he buys AEGON Religare iTerm Plan (no medicals) with Sum Assured equal to Rs 40 lacs and policy term of 25 years.

He would have to pay a paltry premium of Rs 6133 (approx).

With just around Rs 6133 yearly, you can get sum assured of 40 lacs which will financially secure your family. Additionally most of the savings stay intact.

Your family gets = Rs 40 lacs (Sum Assured) + 4-5lacs (Your Savings)

Consider these Scenarios

Scenario1: Ravi dies in the 4^th policy year- Ravi’s family will get 40 lacs. Same is true for all policy years.

Scenario 2: Policy is in grace period and Ravi dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses on the 22^nd year, Ravi dies, nothing will be paid.

What Else?

How to buy: iTerm plan can be bought online. Buying Online is very easy and hassle free process.

Free Look Period: iTerm plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: iTerm can be paid within 30 days from the date of renewal. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Sum Assured: The policyholder cannot change the sum assured of iTerm once taken. However he can opt for another term plan as per his needs.

Reinstatement- iTerm can be revived within 2 years from the premium due date. However all outstanding premiums are to be paid.

Maturity: There are no maturity benefits in AEGON Religare iTerm plan as it’s a pure term life insurance plan.

Payment Method: Net banking, credit/debit card are accepted by AEGON Religare.

Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

Close Competitors

Aviva i-Life, Future Generali Smart Life, ICICI Pru iCare, Kotak e-Preferred, Met Protect term plan

Policybazaar take on AEGON Religare iTerm Plan

AEGON Religare iTerm has been revised and launched again. There have been many changes in the plan. The maturity age has been increased to 75 years. Many riders have been introduced in the plan. If you choose to take medical tests, premium would be lower as well.

Term Life Insurance Plans- Protect Loved Ones

Term life insurance plan provides life cover to an individual. In simple terms, a lump sum amount (Sum Assured) is paid to the family members on demise of life insured. For the life cover, the life insured has to pay relatively low premium. The life cover is for certain policy term after which life cover ceases.

Anyone aged above 18 years can buy term life insurance plan. The maximum policy term is usually 35 years. The average maximum age till which life is insured is 65 years.

Should you buy term insurance plan?

Term insurance plan is without doubt the most essential life insurance policy. You should buy life insurance policy if there are people (family members) who depend on your income for their daily needs.

Joint life Term Life Insurance

Some term life insurance plan can be bought jointly. What that means is two lives can be covered under a single plan. This could be in the case of husband and wife. The advantage of joint life insurance is that the risk cover extends to more people. If anything happens to any of the life insured, claim amount will be payable.

How much cover?

The cover is an integral part of term life insurance plan. It will determine the amount which your nominee will get in case of death of life insured. Before randomly choosing the cover, take into account the following factors:

- Outstanding debts like home loan, car loan etc

- Your Annual Income

- Future financial needs like children’s education and marriage

- Inflation

There are many human life value calculators available online which can assist you in arriving near the approximate life cover amount.

Compare term plans now!

Do I get premium back in term life insurance plan?

There are two types of term life insurance plan- pure term plan and return of premium term plan. The former has no survival benefits while the latter will return the base premiums.  However under the same conditions, you will have to shell more money for the return of premium term plans.

What types of deaths are covered in term life insurance plan?

Term life insurance plan pay the Sum Assured in most cases. The death caused could be natural, accidental or as a result of critical illness. Term plans even cover death outside India as long as you have updated insurer with the same information.  You can add riders as well which will ensure additional payouts as per the death cause.

Can term life insurance claim be rejected?

If claim is made within 1^st year or so, there is possibility that term plan was bought intentionally for making the claim and as such insurance company will investigate to make sure that claim was not fraudulent.

There are a few other instances when death benefit will not be paid. These typically include suicide in the first policy year, self-inflicted injuries, participation in dangerous hobbies, natural disasters etc.

The new term plans have terrorist coverage which can be verified from the insurer.

What if I hide material facts?

No important information should be withheld and proposal form should be filled honestly. For instance- if you hide that you are a smoker and it is later determined that death caused was result of smoking, insurer has the right to deny the claim.

Online Term Plan

After the first online term insurance was launched, the trend was followed by other insurers. Online term plans are cheapest among the lot. Since the product is directly sold to the customer, costs involved are less and that’s why online term plans are cheap.  Online term plans presently available in the market are Aegon Religare iTerm, Aviva iLife, ICICI Pru iCare, HDFC Life Click 2 Protect, Kotak e-preferred, IndiaFirst Anytime, MetProtect and Future Generali Smart Life.

Should I buy term plan online?

Recently, many term life insurance products have been launched online. That is, you can visit the insurer’s website and buy the product online. The benefit being that online term plans are very cheap compared to regular term plans since there are less costs involved in the former. If you are looking for just life cover with no riders, online term plans are certainly a cheaper option. However, term plans are not available in all cities.

Best Term Life Insurance Policy

The objective of a term plan is to pay the Sum Assured in case of death of life insured. Every term life insurance policy does that as long as the claim is genuine. The major issue faced by most people is that insurers reject claim or they take too much time to solve the claim. So in order to determine the best term life insurance plan, one should look at the claims data like claim settlement ratio , claim ageing etc which is available on insurer’s website. The other things that should be looked upon are the coverage, riders’ availability, revival conditions etc.

Term Insurance Comparison

With so many term life insurance plans in the market, it becomes hard to choose a single term plan. You should compare the term insurance plans online (website portals). The term life insurance comparison will help you determine which term plans have similar features, whether any term plan has additional features which suit your requirement. Then you can do cost to benefit analysis and buy the term life insurance policy accordingly.

Compare term plans now!

Insurer: HDFC Life Insurance

Category: Return of Premium Term Life Insurance Plan

Objective: Financial Protection of Family

HDFC Premium Guarantee is a return of premium term life insurance plan which provides financial security to your family in case you are not there to look out for them. You get good cover at low cost. If something unfortunate happens to you, Sum Assured is paid to the nominee. If you survive throughout the term, the base premium will be returned at the end of policy term.

How Much Cover?

The cover in HDFC Premium Return term insurance plan will depend on age of life insured and policy term opted. The issuance of cover is subject to underwriting.

What cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit: In the event of life insured’s unfortunate demise (during policy term), the sum assured is paid to the nominee (parents, wife or children) if the insurance policy is in force.

Tax Benefits- The premium paid is eligible for tax benefits under Section 80C, 10 (10D) of the Income Tax Act, 1961.

Illustration: Sunil aged 30, to secure his family buys return of premium term insurance plan- HDFC Premium Guarantee with policy term of 25 years.

He pays premium of Rs 7,890 (exclusive of tax and cess) and gets Sum Assured of Rs 1,000,000.

Consider these Scenarios

Scenario1: Sunil dies in the 2^nd policy year; Sunil’s wife will get Sum Assured. This is true for the complete policy term.

Scenario 2: Policy is in grace period and Sunil dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses in the 10^th year, Sunil dies, nothing will be paid.

Scenario 4: If Sunil survives the policy term, premiums paid will be returned.

Free Look Period: HDFC Premium Guarantee can be cancelled within 15 days of receiving the policy contract. The policy document can be returned to the nearby branch along with letter of cancellation.

Grace period:  HDFC Premium Guarantee premium can be paid within 15 days from the date of renewal. After the grace period, if the renewal premium is not paid the policy will cease to exist or become paid up.

Maturity: Premium Guarantee is a return of premium term insurance plan and has survival benefits.

Surrender: Premium Guarantee term insurance plan can be surrendered and a guaranteed surrender amount is payable after 3 years of premium have been paid.

Payment Method: HDFC Life payment method is cash, cheque, credit card/debit card.

Exclusion: In term life insurance, death caused by suicide in the first year or within first year of revival, no Sum Assured will be paid.

Death Claim: The nominee can apply for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

Insurer: Shriram Life Insurance

Category: Return of Premium Term Life Insurance Plan

Objective: Financial Protection of Family

Shriram Money Back Term Plan is a return of premium term life insurance plan which provides financial security to your family in case you are not there to look out for them. You get good cover at low cost. If something unfortunate happens to you, Sum Assured is paid to the nominee. If you survive throughout the term, the base premium will be returned at the end of policy term.

How Much Cover?

The cover in Shriram Money Back Term Plan term insurance plan will depend on age of life insured and policy term opted. The issuance of cover is subject to underwriting.

What cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit: In the event of life insured’s unfortunate demise (during policy term), the sum assured along with all basic premiums is paid to the nominee (parents, wife or children) if the insurance policy is in force.

Riders: By paying additional nominal premium, you can add the following riders:

• Accident Benefit Rider
• Critical Illness Cover Rider
• All Cause Total and Permanent Disability Rider

Conversion:

You can convert the Money Back Term plan to the Whole Life Assurance policy which will provide life cover for extended period.

Discount: 

For Sum Assured equal and above Rs 10 lacs, discount on premium will be made.

Tax Benefits:

The premium paid is eligible for tax benefits under Section 80C, 10 (10D) of the Income Tax Act, 1961.

Illustration:

Pradeep aged 30, to secure his family buys return of premium term insurance plan- Money Back Term Plan with policy term of 25 years.

He pays annual premium of Rs 12186 with policy term of 25 years and gets Sum Assured of Rs 10 lacs.

Consider these Scenarios

Scenario1: Pradeep dies in the 2^nd policy year; Pradeep’s wife will get Sum Assured. This is true for the whole policy term.

Scenario 2: Policy is in grace period and Pradeep dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses in the 10^th year, Pradeep dies, nothing will be paid. However lapsed policy can be revived.

Scenario 4: If Pradeep survives the policy term, base premium would be returned.

Free Look Period: Shriram Money Back Term Plan can be cancelled within 15 days of receiving the policy contract. The policy document can be returned to the nearby branch along with letter of cancellation.

Grace period:  Shriram Money Back Term Plan premium can be paid within 30 days from the date of renewal. In case of monthly mode payments, grace period is 15 days. In case of death during grace period; renewal premium will be deducted from Sum Assured payable. After the grace period, if the renewal premium is not paid the policy will cease to exist.

Reinstatement- Money Back Term Plan can be revived within 2 years from the premium due date. Also beyond 6 months, proof of good health will be required. All the unpaid premiums plus relevant interest have to be paid to revive the policy.

Maturity: Money Back Term Plan is a return of premium term insurance plan and has survival benefits.

Surrender: Money Back Term Plan term insurance plan can be surrendered and a surrender amount is payable.

Payment Method: Shriram Life payment method is cash, cheque, credit card/debit card.

Exclusion: In term life insurance, death caused by suicide in the first year or within first year of revival, no Sum Assured will be paid.

Death Claim: The nominee can apply for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

Shri Suraksha Term Insurance Review

Plan Name: Suraksha

Insurer: Shriram Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

Shri Suraksha Plan is term life insurance plan which offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since Shri Suraksha is a pure risk plan, there are no survival benefits.

Who can buy Suraksha Plan?

Shri Suraksha term life insurance plan is for any individual who is at least 18 years or below 45 years.

How Much Cover: The fixed Sum Assured is Rs 1 lacs. Suraksha Sum Assured increases every year.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit:

Sum Assured increases over the policy term by Rs 5,000 for every completed policy year subject to maximum of Rs 200,000. Depending on the policy term, increased Sum Assured is paid.

If life insured suffers from permanent disability, additional 50% of Sum Assured is paid.

The Sum Assured is payable in 12 equal monthly installments.

Disability Benefit:

If life insured suffers permanent disability due to accident, 50% of Sum Assured is paid. The policy will continue with the life cover and all premiums have to be paid till the end of policy term.

Tax Benefits:

Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

What Else?

How to buy: Contact Policybazaar and we will help you guide you through the process.

Free Look Period: Suraksha plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: Suraksha premium can be paid within 30 days from the date of renewal. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Sum Assured: The policyholder cannot change the sum assured of Suraksha once taken. However he can opt for another term plan as per his needs.

Maturity: There are no maturity benefits in Shri Suraksha plan as it’s a pure term life insurance plan.

Payment Method: Net banking, credit/debit card are accepted by Shriram.

Exclusion: No death claim will be accepted in the first year.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

Policybazaar take on Shri Suraksha

Shri Suraksha is for people looking for low cover as the life cover is mere Rs 1 lacs. The Sum Assured increases every year and there is inbuilt accidental permanent disability benefit.

DLF Pramerica Fee Protect + Plan Review

Plan Name: Fee Protect +

Insurer: DLF Pramerica Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

DLF Pramerica Fee Protect + Plan is a term life insurance plan which offers financial protection to the dependents in case of untimely demise. Fee Protect is specifically designed for financial need of children in case of demise of life insured. The monthly payouts take care of child’s education needs.

Who can buy Fee Protect + Plan?

DLF Pramerica Fee Protect term life insurance plan is for any individual who is at least 18 years or below 55 years. Fee Protect policy term is minimum of 5 years and maximum of 15 years.

How Much Cover: The minimum monthly benefit is Rs 1,000. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Maturity Benefit:

80% of the premium paid over the policy term is returned at the end of policy term.

Death Benefit:

Monthly Income: The chosen monthly income is paid till the end of policy term. The future premiums are waived off. The monthly benefit will increase at compound annual rate of 5% each year. The nominee will also get 80% of all the premiums payable.

Tax Benefits:

Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

The following example will make the plan crystal clear.

Illustration:

Dinesh is 30 years old and buys DLF Fee Protect+ with monthly income of Rs 5,000 and policy term of 15 years. The premium amount would be Rs 7870.

Consider these Scenarios

Scenario1: Dinesh dies in the 4^th policy year- Dinesh’s family will start getting monthly benefit of Rs 5,000 which will continue for the rest of policy term. The monthly benefit will get compounded growth of 5%. Also the premium amount will be returned accordingly.

Scenario 2: If life insured survives the policy term, on maturity, Rs 82,200 will be returned.

Scenario 3: Policy is in grace period and Dinesh dies, policy benefits will be applicable.

Scenario 4: Policy lapses on the 10^th year, Dinesh dies, nothing will be paid. You do have the option to revive the policy.

What Else?

How to buy: Policybazaar representatives will help you through the purchase process.

Free Look Period: Fee Protect + plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: Fee Protect + can be paid within 30 days from the date of renewal and 15 days for monthly mode. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Reinstatement: If the policy lapses, it can be revived within 3 years from the date of Income unpaid premium.

Sum Assured: The policyholder cannot change the sum assured (monthly benefit) of Fee Protect + once taken. However he can opt for another term plan as per his needs.

Maturity: There are maturity benefits in DLF Pramerica Fee Protect + plan.

Payment Method: Credit/debit card, cheque are accepted by DLF Pramerica.

Exclusion: During the Income policy year or the year of reinstatement of policy, if policyholder commits suicide then monthly benefits will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

DLF Pramerica Fee Protect Plan Review

Plan Name: Fee Protect

Insurer: DLF Pramerica Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

DLF Pramerica Fee Protect Plan is term life insurance plan which offers financial protection to the dependents in case of untimely demise. Fee Protect is specifically designed for financial need of children in case of demise of life insured. The monthly payouts take care of child’s education needs. Since DLF Pramerica Fee Protect is a pure risk plan, there are no survival benefits.

Who can buy Fee Protect Plan?

DLF Pramerica Fee Protect term life insurance plan is for any individual who is at least 18 years or below 55 years. Fee Protect policy term is minimum of 5 years and maximum of 15 years.

How Much Cover: The minimum monthly benefit is Rs 1,000. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit:

Monthly Income: The chosen monthly income is paid till the end of policy term. The future premiums are waived off. The monthly benefit will increase at compound annual rate of 5% each year.

Tax Benefits:

Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

The following example will make the plan crystal clear.

Illustration:

Harish is 30 years old and buys DLF Fee Protect with monthly income of Rs 5,000 and policy term of 15 years with pay term of 10 years. The premium amount would be Rs 3,613 (inclusive of taxes).

Consider these Scenarios

Scenario1: Harish dies in the 4^th policy year- Harish’s family will start getting monthly benefit of Rs 5,000 which will continue for the rest of policy term. The monthly benefit will get compounded growth of 5%.

Scenario 2: Policy is in grace period and Harish dies, policy benefits will be applicable.

Scenario 3: Policy lapses on the 10^th year, Harish dies, nothing will be paid. You do have the option to revive the policy.

What Else?

How to buy: Policybazaar representatives will help you through the purchase process.

Free Look Period: Fee Protect plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: Fee Protect can be paid within 30 days from the date of renewal and 15 days for monthly mode. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Reinstatement: If the policy lapses, it can be revived within 3 years from the date of Income unpaid premium.

Monthly Income: The policyholder cannot change the sum assured
(monthly income) of Fee Protect once taken. However he can opt for another term plan as per his needs.

Maturity: There are no maturity benefits in DLF Pramerica Fee Protect plan as it’s a pure term life insurance plan.

Payment Method: Credit/debit card, cheque are accepted by DLF Pramerica.

Exclusion: During the Income policy year or the year of reinstatement of policy, if policyholder commits suicide then monthly benefits will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

DLF Pramerica Family Income Plan

Plan Name: Family Income

Insurer: DLF Pramerica Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

DLF Pramerica Family Income Plan is term life insurance plan which offers financial protection to the dependents in case of untimely demise. Family Income is pretty useful since you get lump sum amount as well as monthly benefits to deal with current and future financial problems.  Since DLF Pramerica Family Income is a pure risk plan, there are no survival benefits.

Who can buy Family Income Plan?

DLF Pramerica Family Income term life insurance plan is for any individual who is at least 18 years or below 55 years. Family Income policy term is minimum of 5 years and maximum of 30 years. If you are 50 years old the maximum term you can opt for is 15 years. That is because Family Income plan maturity age cannot exceed 65 years.

How Much Cover: The minimum monthly benefit is Rs 2,000. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

Summarized Table:

What do I get?

Death Benefit:

Monthly Income: The chosen monthly income is paid till the end of policy term.

Guaranteed Income for 36 Months: If the claim occurs even in the last 4 years, monthly income for 36 months is guaranteed.

Riders: Accidental death benefit and critical illness are the riders available with Family Income.

Tax Benefits:  Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

The following example will make the plan crystal clear.

Illustration:

Ravi is 30 years old and buys DLF Family Income with monthly income of Rs 10,000 and policy term of 25 years. The premium amount would be Rs 4,050 (exclusive of taxes).

Consider these Scenarios

Scenario1: Ravi dies in the 4^th policy year- Ravi’s family will get monthly benefit of Rs 10,000 which will continue for the rest of policy term.

Scenario 2: Policy is in grace period and Ravi dies, policy benefits will be applicable.

Scenario 3: Policy lapses on the 22^nd year, Ravi dies, nothing will be paid. You do have the option to revive the policy.

What Else?

How to buy: Policybazaar representatives will help you through the purchase process.

Free Look Period: Family Income plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

Grace period: Family Income can be paid within 30 days from the date of renewal and 15 days for monthly mode. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

Reinstatement: If the policy lapses, it can be revived within 3 years from the date of Income unpaid premium.

Sum Assured: The policyholder cannot change the sum assured of Family Income once taken. However he can opt for another term plan as per his needs.

Maturity: There are no maturity benefits in DLF Pramerica Family Income plan as it’s a pure term life insurance plan.

Payment Method: Credit/debit card, cheque are accepted by DLF Pramerica.

Exclusion: During the Income policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.