Skip to main content

LIC Online Term Plan

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

 





Market leader LIC has finally launched its online term plan. The competitively priced policy could be a game changer for this fast-growing segment.

The launch of an online term plan by LIC could be a game changer for this segment of the industry. Find out if you should buy it. While the nation was engrossed in politics last week, LIC quietly triggered a mini revolution in life insurance. The state-owned life insurer launched an online term plan, which could prove to be a game changer for this fast-growing segment. The e-Term plan from LIC is about 35% cheaper than the LIC offline term plan, but slightly costlier than most online pure protection offerings from private companies.


However, given the tremendous brand equity of LIC, the e-Term plan is likely to become the preferred choice for most insurance buyers. Private insurance companies have received the news with mixed feelings. While many of them have gone into a huddle and refused to comment, others have hailed the LIC move as a positive step that will help grow the category. "We welcome LIC's foray into the online protection segment. This will help grow the online term plan market and enhance the awareness of customers.

 

Rau can afford to be optimistic about this new threat from the market leader. The Reliance Online Term Plan has the lowest premium compared with other online term plans for almost all ages (see table). Price is one of the biggest deciding factors in the online term category, with customers preferring to go with the price leader.

 

That's true, but only partly. A lot of buyers are also concerned about the pedigree of the company when they buy an insurance policy. For them, LIC is a household name that exudes confidence and trust. The state owned insurer has the highest claim settlement record in the industry, which gives it an edge over private companies. In 2012-13, the LIC paid out 97.73% of the claims it received.
Among private players, only five insurers, including ICICI Prudential Life, HDFC Life, SBI Life, Max Life and Kotak Life, reported a claim settlement ratio of over 90% during this period. Experts say that the insurers who have completed 10 years of operations ought to have a claim settlement record of over 90%. A high claim settlement ratio indicates that the company pays all genuine claims, which reduces the buyer's worry.

Others point out that the claim settlement ratio should not be seen in isolation. "While the claim ratio is a significant factor, there is no reason for the claim to be declined as long as the customer's declaration is correct

 

Another major concern that buyers have is that an online plan has exclusions hidden in the fine print. The incredibly low premiums charged by online term plans only add to these suspicions. A 30-year-old can buy a cover of `1 crore for as little as `7,000-8,000 a year. This has led many buyers to think there is a catch and the insurance company won't pay the claim.

This is a misconception. The premium of an online term plan is low because of two basic factors. One, there is no intermediary, so the agent's commission is passed on to the customer. More importantly, the online buyer is perceived as a low-risk customer by insurers. He is educated, earns reasonably well, is concerned about protection and is likely to have health insurance as well. In case of a medical emergency, he may be able to quickly reach a hospital and access specialised medical treatment. All these factors combine to lower the risk and, therefore, reduce the premium.


Premium quote is only indicative However, the premium quoted by an online calculator is only indicative and based on the assumption that you carry the normal risk in terms of health, family's medical history and occupation. When you submit your details online and pay the premium, the cover starts immediately, but is subject to medical tests and actuarial screening. If the tests show that you are suffering from a medical condition, have a family history of an ailment, or are exposed to a specific risk at work, the premium quoted is likely to rise.

 

Experts warn against furnishing incorrect information in the application just to bring down the premium. If you smoke or use tobacco in other forms, your premium will be roughly 25-30% higher than that of a non-smoker. If, however, you don't disclose crucial facts relating to your health, social habits and existing policies, it can jeopardise your insurance cover. If the insurer discovers that a policyholder concealed facts that affected the risk to his life, the claim will be rejected.
Most companies have medico-legal experts, who scan the claim documents for any attempt to mislead. Every year, about 4% of the claims received end up in the trash can.


Awareness about protection needs The past few years have witnessed a surge in sales of pure protection plans. While online term plans have become popular, their true potential is yet to be tapped. A joint study by Max Life Insurance and Nielsen reveals that four out of every five people who start the process to buy insurance online drop out before completing the purchase. The study does not say so, but one reason could be that

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now