Term Plan Insurance: Aegon Religare Level Term Plan vis-à-vis Kotak Preferred Term Plan

Term Plan Insurance:  Aegon Religare Level Term Plan vis-à-vis Kotak Preferred Term Plan

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

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

Preferred term plan is the term insurance plan of Kotak Life.

Age Eligibility:

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.

For Kotak Preferred term insurance, person aged between 18 years to 65 years can buy the term insurance plan. Preferred term plan maximum maturity age is 70 years.

Life Cover:

The minimum life cover that can be opted with AEGON Religare level term insurance is Rs 5 lacs. The minimum cover available with Kotak Preferred term insurance is Rs 25 lacs.  The maximum cover in AEGON Religare level term insurance and Kotak Preferred term insurance 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:

The policy term for Level term plan is from 10 years to 30 years. The policy term for Kotak Preferred term plan is from 5 years to 30 years.

Riders:

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

Kotak Preferred term plan has accidental death, permanent disability rider and 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 AEGON Religare level term plan and and Kotak Preferred 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 AEGON Religare is 46% whereas for Kotak Life, claim settlement ratio is 83% (H2, 2011).

End Note:

Aegon Religare level term plan is a regular term life insurance plan which pays lump sum amount on death of life insured. Riders are also available with it. Kotak Preferred term plan is a flexible term plan with multiple premium options- single and regular. It also has riders available with it. Also there is unique conversion option with Kotak in which you can convert to any other Kotak life insurance plan (except term plan).