I want to buy a term insurance cover of ₹50 lakh for my daughter. (Date of birth 30/9/92-Female-nonsmoker). I am confused about which policy to buy. I want to buy the cover for a maximum term, say, 30 to 35 years. There is a huge difference between the rates of online policies and normal policies.
What will the annual premium for plans from LIC and other good insurers. Suggest a good policy and offer a comparison.
- Sethupathy
Life insurance cover is meant for earning individuals with financial dependents. We assume that your daughter is earning. Insurance company generally insure only earning individuals. There is no point in insuring a non-earning member without any financial liabilities because there would be no financial fallout if the person dies.
You should go for a plain term plan to cover your daughter. Since your daughter is very young, you can go for an online term plan. Online plans are cheaper due to the absence of agents, the insurance company pass on the benefits to customers in the form of lower premiums.
Policy term should be equal to working years of the buyer or till someone else steps into the shoes of the insured to bear financial responsibilities.
Max Life Online Term Plan, HDFC Click 2Protect and SBI Life e-Shield are recommended policies. Choose any one. We have selected these policies on the basis of claim settlement ratio of the last three years and premiums charged by the insurers. You may even go with LIC, but is is a bit expensive.
Annual premium (inclusive of service tax) for a 50 lakh cover for a 30-year term for a healthy female at your daughter's age is below:
Annual Premium (₹)
Max Life Online Term - 3876
HDFC Click2Protect - 4436
SBI Life e-Shield - 4127
LIC - 5244
This article was originally published on October 14, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
