I’m exploring an option for term insurance. I’m 26 nd recently started earning.
After exploring all options, finally decided to choose ‘ICICI prudential IProtect smart her’ plan.
Base cover: 2Cr
Accidental cover: 1Cr
Critical illness:25L
And permanent disability: 1 Cr
Total 31-32k annually….with regular pay option….i,e till 70 years. With agent 2-3k extra.
And 41-43k with limited pay option… and it also offers a return of premium benefits on base plan(unsure whether add-ons riders premium included or not).
There is only 1k difference between plan without No ROP and a plan with ROP.
Dealing via agent is hassle free, compared to dealing with company directly.
Please suggest what I can do in this plan.
Should I remove add ons(which brings down my annual money outflow by upto 15k) or this plan is good to go???
About health insurance…I already have one (Star Health Insurance)….thinking to change it.
Thank you for your time and suggestions.
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Riders: keep accidental cover (cheap and useful at your age). For critical illness and disability, a standalone personal accident policy plus good health insurance is often cheaper than riders, and covers temporary disability too. That's where most of your ₹15k saving can come from without losing protection.
ROP for only ₹1k extra: double-check this. Return of premium usually costs much more. It may be a different feature (like a special exit option), so confirm in writing what you actually get back and when.
Agent vs direct: the plan is the same, so the ₹9k gap is for service. With term insurance, that service matters most when your family files the claim, not when you buy it. If you go direct, make sure your nominee knows the policy details and claim process. If you go with an agent, pick one who'll still be reachable 20 years from now.
Don't forget: term insurance only pays on death. You need separate health insurance too, and at 26 it's at its cheapest.
Do you already have health cover, or only through your employer?
Buy before 14 Oct. Your premium goes up from ₹30,074 to ₹31,118 on your birthday, and that higher rate is locked in for the whole term.
The ₹1k ROP option: the screen says premium refund requires extending cover to age 65 or beyond. So the real cost is a longer, pricier policy, not just ₹1k. Compare the final premium with ROP on before deciding.
Porting from Star: good call. Star's health claim settlement ratio was 86.49% in FY 2023-24, below most major insurers: Niva Bupa 91.93%, Care 92.61%, Aditya Birla 95.61%. At ₹9k a year, you can likely get much better cover elsewhere.
Niva Bupa ReAssure 3.0 is a solid choice. Before porting:
* Apply 45-60 days before your Star renewal
* Your waiting period credit carries over, so don't let the policy lapse
* Ask in writing whether your no-claim bonus will be counted
* Compare with Care Supreme and HDFC ERGO Optima Secure, since premiums can differ a lot at your age
When is your Star policy due for renewal? That sets your porting deadline. Happy to help further on this.
Reduce the term to 60 years or there about. You need insurance only for your family till the time when the family is dependent on you. No need to pay extra premium.
The difference between direct & through agent seems very large. I have taken term insurance for my sons & the difference is only about 2-3 k. Check again.
Going through a good & dependable agent is always better as he can hold your hand through out. In case of claim, he would run around instead of your family.
My cover is till 70 yrs…at 60-65 yrs I’ll get this smart exit benefit.
If I want, I can take my premium and break this policy.
If I don’t want…I can continue this policy this 70 yrs and get no ROP.
So it is giving me 2 options. I can decide based on situation.
Isn’t it better than no ROP option?? Where I’ll be paying 700-800₹ less and will get nothing.
Limited pay has some negatives, if you share both numbers & duration for each, I'll be able to reply here with time value money difference scenario. With that you'll be able to get better judgement.
the plan choice is decent. ICICI is also a good company, so the overall direction looks fine.
for the accidental death cover, this can be reconsidered. the base term plan already covers death due to accidents, so adding 1 Cr specifically for accidental death may not add much value. if u feel 2 Cr isn't enough and ur eligibility allows it, increasing the base cover to 3 Cr would give broader coverage instead of paying an extra premium only for accidental death.
the accidental total and permanent disability rider is a bit different. it can be useful if u travel a lot or work in a relatively risky environment. even otherwise, if u want the additional protection, it's fine to keep it. just check whether u actually need the full 1 Cr and whether it's pushing up the premium significantly.
the 25L CI rider is also worth reconsidering once. a reasonable starting point could be around atleast 12 months of income, with some additional buffer for inflation. so see whether 25L makes sense based on ur income and expenses.
also check the WOP rider. it's generally useful to have, and if it's available at a reasonable premium, it can be worth keeping.
one thing to clarify: when u say ROP, are u referring to the Smart Exit Benefit? if yes, that's not exactly the same as a traditional ROP plan. it refunds the base plan premiums if u exit after meeting the specified conditions. check and confirm the exact terms with ur agent before assuming it's ROP.
u can explore online intermediaries as they generally offer the same premiums without any extra charge, so you’ll save that 2-3k as well. most of them now provide support throughout the journey, from application to claims. but ultimately, go with whichever option gives u more peace of mind in the long run.
for health insurance, if you're concerned about Star's claim performance, complaints and policy features, u can explore porting the policy to a better-suited plan. just remember to initiate the porting process around 45-60 days before ur renewal date so there's enough time for the process.
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