Life Insurance

5 Best Term Insurance Plans in India 2019

5 best term insurance plans

Term insurance plans are the most popular among life insurance plans. Term plans provide pure insurance coverage, and they provide high-value coverage at an extremely affordable price. This is one of the reasons why term insurance plans are popular among working professionals in India. It is a must-have insurance policy for everyone since it offers financial security to the insured’s family upon his/her unexpected demise. Most finance experts in India agree that you must invest in term plans to provide basic financial security to your dependents.

Customers are free to choose the coverage amount based on their requirement and affordability. However, companies set the maximum sum assured amount based on various factors like human life value, existing coverage amount, age, income, location, smoking habits, etc. In India, term covers are offered by almost all the top insurers in the market. So, it goes without saying that customers have a wide range of options to choose from. If you are looking for term insurance plans online, you may check out the 5 best term insurance plans listed here before deciding on your purchase.

What is Term Insurance?

Term insurance is a type of life insurance plan that provides most comprehensive form of financial protection or term plan is the simplest form of life insurance product that only covers for your life risk. You can choose a large cover against a nominal premium making it the cheapest insurance product in the market. On your passing away during the term of the policy, your nominee is paid the sum assured as a death benefit and the policy terminates.

Most Insurance companies offer riders for enhancement and value addition to your cover. The riders typically add cover for the following:

  • Critical illness: The feature allows for a payout on the first diagnosis of the listed illnesses, which may be partially allowing the policy to continue or a final payout is made and the policy is terminated.
  • Accidental Disability: This covers you for loss of employment and the policy is terminated after death benefit is paid.

5 Best Term Insurance Plans in India

Some of the best term insurance plans in the market along with their features are listed in the following table:

Plan name Eligibility Policy term Sum assured amount Cover ceasing age
SBI Life – eShield Minimum entry age: 18 years

 

Maximum entry age: 65 years (for level cover) and 60 years (for increasing cover)

Minimum: 5 years (for level cover) and 10 years (for increasing cover)

 

Maximum: 80 years minus age at entry (for level cover) and 75 years minus age at entry (for increasing cover)

Minimum: Rs.35 lakh

Maximum:  No limit

For level cover: 80 years

For increasing cover: 75 years

HDFC Life Click 2 Protect 3D Plus Minimum entry age: 18 years (25 years for Life Long Protection Option and 3D Life Long Protection Option)

 

Maximum entry age: 65 years

Minimum: 5 years

 

Maximum: 40 years (50 years for Life Long Protection Option and 3D Life Long Protection Option)

Minimum: Rs.10 lakh

 

Maximum: No limit

Whole of life
LIC’s e-Term Policy Minimum entry age: 18 years

 

Maximum entry age: 60 years

Minimum: 10 years

 

Maximum: 35 years

Minimum: Rs.25 lakh (for aggregate category) and Rs.50 lakh (for non-smoker category)

 

Maximum: No limit

75 years
ICICI Pru iProtect Smart Minimum entry age: 18 years

 

Maximum entry age: 65 years

Minimum: 5 years

 

Maximum: 85 years minus age at entry

Minimum: subject to the minimum premium

 

Maximum: subject to approval from the company

85 years with an option to extend till 99 years
Max Life Online Term Plan Plus Minimum entry age: 18 years

 

Maximum entry age: 60 years

 

Minimum: 10 years

 

Maximum: 50 years, subject to maximum maturity age

Minimum: Rs.25 lakh

 

Maximum: Rs.100 crore

85 years

Features & Benefits of a Term Insurance Plan

  • The benefits of term insurance and its riders are plenty. It also comes at very low premiums and is a prudent way to claim tax exemptions under Section 80C of the Income Tax Act. It is a simple tax saving tool for beginner investors.
  • Many term insurance policies are convertible. This ensures that the term insurance policy can be converted into an endowment policy for the same amount of as the existing policy but with increased premiums.
  • If policyholders cease the payments of premiums in the term insurance policy, the policy ends without any adverse effects or withdrawal amount payment. This is not the case in other life insurance policies where if the payments are stopped mid-term, financial losses need to be faced.

How to Choose the Best Term Insurance Plan?

There are currently about 24 life insurance companies in the Indian market. Almost all of them have more than one variant of term insurance covers in their product line up. While this provides a range of options for policyholders, it could also get a little confusing about how to choose the right cover. If you are wondering about choosing the right term cover, you may consider the following things while doing your research:

  • Features and benefits: The features and benefits offered by a policy must be considered while doing your research. Make sure that you choose a policy that meets your requirements. Considering the range of options available, it is not difficult to find a policy that fits your needs.
  • Cost: Cost is one of the major factors that people consider when buying a new life insurance policy. It is important to choose a life insurance policy within your affordability. However, do not always opt for the cheapest policy you can find. Make sure that other terms are agreeable to you before choosing a policy.
  • Service quality: Consider the insurer’s service quality while choosing the best term insurance plans. Check for reviews in consumer forums and try to get word-of-mouth feedback from friends who are existing customers.
  • Claim settlement ratio: This is one of the factors that can be considered while choosing the best term insurance plan. The higher the claim settlement ratio, the more effective the company in settling its claims.
  • Evaluate your family’s needs: Your family’s financial security is a major consideration when choosing a term insurance cover. Calculate your family’s needs before determining the sum assured amount. If you have dependent children, make provisions for their higher education and marriage. Once you determine your family’s requirement, you will be able to find the right policy cover.

Also Read: Permanent Insurance vs. Term Insurance: Which to Choose?

Conclusion

The plans listed above are some of the best plans in the market. However, they are by no means exhaustive. The life insurance market is flooded with different types of term insurance covers. You may choose a policy based on the considerations given above. To sum up, your term plan should be able to take care of your specific needs and give coverage accordingly.

About Ajeet Sharma

My Name is Ajeet Sharma Financial Blogger & Founder of Financegab.com. We are a personal finance blog dedicated to personal finance & financial planners. The main aim of this blog is to help people to informed financial decisions.
View all posts by Ajeet Sharma →

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