Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.
As I’d promised in one the comments on a previous post in this series, I’m picking up the Aviva i-Life online term plan for review. In the most recent review, I was super impressed with the flexibility offered by the AEGON Religare iTerm plan. So let’s see if the Aviva i-Life plan has got what it takes to get to pole position. (One of my regular readers of this blog has purchased this plan and he was impressed by the responsiveness of the company as well as the smooth buying process.)
So here’s what I read of this online term plan –
- The direct information on the website for the product and the downloadable product brochure available on the same website seem to differ in illustrating the specifications for the product. The brochure talks about an optional Accidental Death Benefit rider being available but the website seems to have no mention anywhere about this option. So which one’s correct? My guess would be to trust the website and that’s what I will base this review upon. But surely not a good omen to begin this review with! In a highly competitive market, an insurer cannot afford even the slightest slip-up. Compare this what I said about the AEGON Religare iTerm Plan –
That’s what I am generally liking about AEGON Religare — the portal is very well designed and everything seems to be stated up-front and in a very visible way.
Aviva i-Life product specifications as seen directly on the website (note the absence of any rider options) –
Aviva i-Life product specifications per the downloadable brochure (note the rider options) –
- The maximum maturity age is 70-years which is a good thing since it extends well into traditional retirement but because the maximum policy term is 35-years you might end up without cover for a few years before traditional retirement were you to buy this policy in your very early twenties. But does anyone even buy life insurance policies at that early age? I don’t count this as a significant limitation. But again, the AEGON Religare iTerm plan is one-up because it offers a maximum policy term of 40-years.
- Otherwise this plan is pretty simple and straightforward.
- For our usual 30-30-1 benchmark plan (30-year old buying a 30-year plan for Rs 1 crore cover), the indicated premium is Rs 8,279 but this includes service tax. Excluding service tax, the premium works out to around Rs 7,300, the same as our incumbent.
- I think I also like this approach of telling you upfront the overall cost of buying insurance — other plans that I’ve reviewed so far give an impression of lower cost with the service tax clause put underneath usually in fine print. There’s also an additional rebate for female lives of 5% on the tabular premium rates for male lives.
So, for this particular plan, if we consider a female life, premium calculations for our 30-30-1 benchmark would be –
Given all this, does the Aviva i-Life plan have what it takes to beat the incumbent AEGON Religare iTerm plan?
Nope. I continue to keep the AEGON Religare iTerm plan in top position, because I believe with its flexibility it’d address the term insurance needs of a much wider audience.
But, what do you think?
A quick reminder: To help you to keep up with new term plan reviews, to go back and refer to past reviews, and to share all of this content with your friends, I’ve created the following easy to remember link — http://bit.ly/termplans. So, please go ahead, bookmark and share — I see that many of you already are. Thanks!
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.