Rs 25 lakh life cover a 31-year-old man

I am a 31-year-old non-smoker. I want to buy a life insurance cover of ₹25 lakh. Which is a good offline term plan for me?
- Mahendra Kanzariya

We normally recommend online term insurance plans as they are cheaper by 30 per cent to 50 per cent than offline term insurance plans. Since you buy online term plans directly from a life insurance company website, there are no agent/ intermediary costs. That is why the premiums are lower. Offline term plans are sold by agents and the commission to be paid to them make offline plans expensive. Online plans also offer higher sum assured for a lower premium given the low mortality risk and reduced servicing costs.

Here are three online plans you can consider buying. We have also provided the annual premium for you (31 year, non-smoker) for a ₹25 lakh cover for 29 years (so that it will cover you till your retirement at 60).

Max Life Online Term Plan: annual premium of ₹3,350 (claim settlement ratio of 98.63 per cent)

Aegon Religare iTerm Plan: annual premium of ₹3,563 (claim settlement ratio of 96.59 per cent)

Aviva i-Life Term Plan: annual premium of ₹3,855 (claim settlement ratio of 94.2 per cent)

If you want additional benefits, you can add extra riders to your basic cover by paying an extra premium. Also, always remember to disclose all the details while filling proposal form to avoid any inconvenience in future while making a claim.

This article was originally published on March 31, 2016.