Planning to take a term insurance? Have decided for the sum assured already? Wait.... please read the interesting facts below before purchasing Term insurance for yourself.
Please find below the table in which Premium for various amounts of two cheapest term insurance plans in the market, and surprisingly, its not that you pay higher premium for higher sum assured.
Insurance term is 30 years for ICICI Pure Protect and 25 years for Aegon Religare I-Term Plan.
| Sum Assured | ICICI Pure Protect | Aegon Religare I-Term |
| 2000000 | 5587 | 3752 |
| 2500000 | 10292 | 4440 |
| 2500001 | 6716 | 4441 |
| 4900000 | 13162 | 8702 |
| 5000000 | 12329 | 5694 |
| 5001000 | 12331 | 5792 |
| 9900000 | 24409 | 11466 |
| 10001000 | 21356 | 10810 |
Observation
- If you take insurance of Rs. 2500001 Rs in case of ICICI Prudential then you pay significantly lower premium than Rs. 2500000 lac Policy
- If you take policy for Rs. 10001000, in case of ICICI Prudential then you pay significantly lower premium than Rs.9900000 lac Policy
- Same happens with Aegon Religare at threshold level of 50 lacs and 1 Crore.
The purpose of comparing 2 insurance companies was to show that it is not followed by only one insurance companies but in the entire industry.
I tried to find out the reason and in fact called up Senior Officers of the Companies to know the exact reason of this anomaly and came to know that its Premium rates are decided by actuaries and depends on lot many factors and they may not be in a position to say anything else.
I assume that higher sum assured is not offered to everyone but only to people in High income group and there the mortality rate would be much lesser and that's why being less risky they are able to offer lower premium.
I am sure that this insight will help everyone who is planning to buy a term insurance plan.
