Is it worth investing in aegon religare term plan?


Is it worth taking the iterm plan from Aegon Religare? How come Aegon Religare is the only company which is giving term insurance upto 75 years of age? that too on such cheap premiums??? The CSR for Aegon is not that great and it hovers around 50%. Would it be a sound decision to take this term plan?

21 replies on this article “Is it worth investing in aegon religare term plan?”

  1. JayaprakashReddy says:

    Have a look at the customer satisfaction rating at mouthshut may be that will give you some idea

  2. Himanshu says:


  3. Himanshu says:

    Dear Manish,

    Please end my suffering,

    Have been researching about term plans for over a month now but still couldn’t decide on which one should I go for.

    Really liked Religare term insurance but worried because of its negative word-of-mouth on different forums and also because of very low CSR.

    Please give your view and end my suffering.

    1. If you are not comfortable with AR , then better look at another, but personally I feel there is no much issue with AR . The Claim settlement ratio gets built due to genuine cases at times .

      You can now look at other options like Aviva, HDFC or Kotak .

      1. Himanshu says:

        Thanks Manish…

        The inbuilt option of getting 25% of the insured value in case of terminal illness and critical illness rider actually makes AR plan more attractive.. HDFC, Aviva and Kotak does not have this option.

        As you said that you do not see issues with AR, I think I’ll go with AR only.

        And If I believe that If i am providing all the information correctly and genuinely then in case of any unfortunate event, my family will not run pillar to pillar for claim and also, AR cannot reject a genuine claim (IRDA will be their to protect)… please correct If I am wrong.

        1. Yes , no company can actually !


    Hi Ashal, h r u?

    I am waiting for a reply from your side.

    Best Wishes

    1. Deepak

      You can go for iTerm , there is no issue . You can also look at other companies like Bharti Axa or Aviva which are also cheapest .

      You can take upto 75 yrs also no issues , if you feel that you would need it upto 75 yrs, its only you who had to take the decision . Dont think from “getting benefitted” using this policy , A lot of people feel that they can benefit form the policy in worst case , somewhere they see the policy providing them great benefits at cheap premium , given the law of large numbers ,its not true on averge .

      Better just go for it now and complete the analysis part now , get into action .



    Dear Ashal

    As far as Aegon Religare is concerned please have a look-

    Exclusive Inbuilt Feature: Terminal/critical Illness Benefit is an inbuilt feature where In if you are diagnosed with a terminal illness, 25% of Sum Assured will be paid to you immediately. This is a unique feature which is not available with any term plans.

    For a critical illness cover of approx 1000000 the premium is around Rs. 3500/annum. NOTE – the critical illness cover premium will be revised every year. So when you turn 60 – it may reach somewhere around 25000

    Now if you have a term insurance of 1 crore from aegon religare upto 75 years of age with a premium of 8 or 9000/annum, in case of a terminal illness you will get 25% of 1 crore.

    what would you say about this?

  6. BanyanFA says:

    I agree with some of the views mentioned on this post. Why do you really need to be covered upto 75 years of age. it all depends upon the earning potential of a person. You may achieve financial independence by 40 years and may not need insurance after that considering your big capital base which you may have built by then. Alternatively, you may need a cover till 60 years to protect your dependents in case you have not been that luck and are still struggling to have a good capital base to sustain your dependents.

    Remember – Term insurance is on your life for your dependents ! Hence either the insurance or your investments should cover the living cost of your dependents.

    On the contrary, Critical Illness cover is something which should be taken upto what so ever age the insurance company is providing you the cover. God forbid if a person gets hit by such diseases – his / her entire saving goes in medical treatement !


    1. Dear BanyanFA, yes I’m fully agree with this Critical Illness thing & the term to be covered.




    See this also

    Life expectancy at birth: total population: 66.8 years
    male: 65.77 years
    female: 67.95 years (2011 est.)

    Definition: This entry contains the average number of years to be lived by a group of people born in the same year, if mortality at each age remains constant in the future. The entry includes total population as well as the male and female components. Life expectancy at birth is also a measure of overall quality of life in a country and summarizes the mortality at all ages. It can also be thought of as indicating the potential return on investment in human capital and is necessary for the calculation of various actuarial measures.

    Source: CIA World Factbook – Unless otherwise noted, information in this page is accurate as of January 9, 2012


    Personally I also feel that one should opt for 75 years of term plan. Please read the following excerpt taken from Annual Health Report 2010.

    Changes in Life Expectancy at Birth-

    Life expectancy in India has more than doubled in the last sixty years. It increased from around 30 years at the time of independence to over 63.5 years in 2002-06. Although the decadal increase has slowed from 5.7 years in the 1970s to 3.2 years in the 1990s, the overall life expectancy increased by 14.1 years in the rural areas and 9.9 years in the urban areas during the period 1970- 75 to 2002-06. The wide variance in performance across states is of special concern. While in Kerala, a person at the time of birth is expected to live for 74 years, the expectancy of life at birth in states like Assam, Bihar, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh is in the range of 58-62 years, a level Kerala achieved during the period 1970-75. Globally India’s life expectancy is lower than the global average of 67.5 years and the average of most countries that won their
    independence from colonial rule at about the same time–China, Vietnam, Srilanka, and so on.

    It says that the global Life Expectancy is around 67.5 years. So whats the harm to buy a term insurance for 75 years?

    In case of your unfortunate demise after the age of 60 (even if you are financially secure), you would not mind your family getting some money in terms of insurance claim. would you? And moreover the premium which you would be paying today for 75 years term plan would be like peanuts when you turn 60.

    so what do you say Ashal?

    Best Wishes

    1. Dear Deepak, to me the insurance is merely a risk coverage tool & not a profit earning one. What You have suggested amounts to me profit earning from one’s death. If a real need is there due to financial situation, the cover should be bought for age 75 but for the person who is financial secure, liabilities are over, where is the risk that you want to cover?

      Regarding the prem. in peanuts, my dear friend the value of those 50L or 1Crore ‘ll also be very less due to impact of inflation down the line after 35-40-45 years.

      Think over it.



  9. suhel desai says:

    as saurav mentioned if you have provided all details correctly there shouldnt be a problem while claiming incase unfortunate event does happen.

    I recently purchased religare and must say it was a good experience and got the policy document booklet with all medical tests attached.

  10. Sourav says:

    Dear Deepak,

    iTerm was India’s fist online term plan. Post iTerm there were several other insurance players who realised the need to launch products central to the customer. Hence, we revised iTerm and relaunched the plan with a 75 year term to provide maximum benefit to the consumer. Majority of the customers opting for iTerm go for a term of upto 75 years. We have had 7 claims on iTerm since the launch of the product and 6 of which have been settled imemdiately with only one rejection due to undisclosed pre-existing diseases by the proposer such as Asthma, Hypertension, kidney disease and diabetes. No genuine claims can be rejected by any life insurance company.

  11. Dear Deepak, instead of commenting on Aegon’s CSR & all other things, I w’d like to know, do you really need life cover till age 75?

    Please clarify.



    1. Ramz says:

      Hi Ashal,
      I think most term insurance companies give cover upto 30 years max. So if you take an average individual taking term insurance at around 25-30 years, cover is valid until age of 55-60.
      However my question is what if in worst case, unexpected thing happens on the next. You are not covered. But the expectations or liabilities do not change in that one day.

      So why not take the advantage given in this scenario. of course this should not be the only criteria to select term insurance.

      I personally agree we might not need cover at 75 or may be above 70 years. but for yound persons who are taking term insurance at age below 30 years, I feel may be this option can work well.

      Please comment on my views. Thanks in advance 🙂

      1. Dear Ramz, I did not said one does not go for age 75 cover. My concern is only the need till that age. If a person is in need of cover till age 75, that’s very tough situation to be in. The person in question should think seriously about it.



        1. Ramz says:

          Hi ashal,

          I perfectly agree to your points. cant imagine a person at 70+ to be in that financial position.

          I just want your comments regarding the points i suggested. Your suggestions are really apprciated.

          Thanks in advance

    2. Himanshu says:

      Der Ashal,

      CSR is important, isn’t ??
      However , I also believe that If you are disclosing all the facts correctly then whether you buy it from Aegon religare or LIC, your claim will be acknowledged and IRDA is always their to protect you if the insurance company is trying to create goof ups.

      Please correct me if I am wrong..

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