A term insurance plan offers financial protection to the policyholder for a specific duration. The beneficiary will receive the money in case the policyholder dies during the policy term. Term insurance offers the maximum life insurance protection for the least premium among all life insurance plans.
Investing in term insurance plans can help in building a financial backup for your family in case of unforeseen circumstances. The policyholder’s pending loans as well as other financial requirements can be covered by the family with the help of the death benefit from a term insurance plan.
What is Term Insurance?
A pure risk or protection life insurance product that gives you only the death benefit on your unfortunate demise. There is no payout other than offered through the riders, which vary from company to company. In fact all the insurance companies operating in the life insurance sector, have innovative term insurance plans to woo you with multiple benefits and riders. The most common riders on offer are:
- Critical Illness Rider.
- Accidental Death Rider.
- Accidental Disability Rider.
The most important feature of term insurance is in its offer of a high sum assured at a low premium, making it the cheapest life insurance product on offer in relation to the cover sum. Coupled with the ease of purchase, an online term insurance is an attractive proposition to the present day younger generation.
Why Buying Term Insurance online is Better?
Some of the reasons of buying the best term insurance plans online are mentioned below:
- Plans are available at a cheaper price. According to experts, buying a term insurance plan online will get you a discount of almost 40% when compared to buying it online.
- It is very easy to use, and the process is very simple.
- Reminders of your renewals are sent so that an individual does not allow the policy to lapse.
Best Term Insurance Plans in India 2019
There are various best term insurance plans available online and offline, some of them are mentioned below:
Minimum/Maximum (In years)
|Term of policy
|Claim Settlement Ratio|
|LIC e-Term||18 (completed)/60||75||10/35||Rs.25 lakh||98.04%|
|Aegon LifeiTerm plan||18/65||100||5/40||Rs.50 lakh||97.1%|
|TATA AIA Sampoorna Raksha||18/70||80||10/40||Rs.50 lakh||98%|
|Bajaj Allianz iSecure||18/60||70||10/15/20/25/30||Rs.2,50,000 for general category
Rs.20 lakh for other categories
|Kotak Mahindra e-Term||18/65||75||5/40||Rs.25 lakh||93.72%|
|HDFC Life Click2 Protect 3D Plus||18/65||75||5/40||Rs.10 lakh||97.80%|
|Future Generali – Flexi Term Plan||18/55||75||10 years. For smokers, maximum age is 65 and for non-smokers maximum age is 75||Rs.50 lakh||93.11%|
|Aviva I Life||18/55||70||10/35||Rs.25 lakh||94.45%|
|IDBI Federal -iInsurance||18/60||80||10/62||Rs.50 lakh||91.99%|
|SBI Life eShield Plan||18/65||80||5/30||Rs.50 lakh||91.99%|
This is an online best term insurance plan which offers insurance coverage to the policyholder’s family in case of an eventuality. This term plan offers low premium rates for non-smokers.
Aegon Life iTerm Plan
Aegon LifeiTerm plan is an online term insurance plan which is specifically designed with an objective to provide life protection to the family of the insured at a very affordable premium rate. Aegon Life iTerm Plan has a term insurance claim settlement ratio of 97.1% and offers various benefits to the insurance holder. Let’s take a look at the key features of Aegon Life iTerm Plan.
Features of Aegon Life iTerm Plan
- The plan offers an easy and hassle-free process of online purchase.
- Aegon LifeiTerm plan comes with inbuilt terminal illness benefit.
- The insurance holder can increase the life cover of the policy according to their increasing life stage requirements.
- Tax benefit is available under section 80C of Income Tax Act 1961.
- The policyholder can avail rider benefit offered by the policy in order to enhance the coverage of the policy.
- The policy offers premium rebate for female and non-smokers.
- Aegon Life iTerm plan comes with offers the option of single premium payment and regular premium payment.
TATA AIA Sampoorna Raksha
TATA AIA Sampoorna Raksha is a traditional online term insurance plan which offers high protection coverage at an affordable premium rate. This plan can be purchased online in a simple and hassle-free way. The policy offers two types of premium payment option single pay and regular pay.
This is a non-participating, non-linked term insurance plan that offers financial protection to the family of the insured in the event if uncertain demise of the policy holder. The plan offers a claim settlement ratio of 98.0%.
Features offered by TATA AIA Sampoorna Raksha
- The plan provides high insurance coverage at an affordable premium rate.
- The plan can be bought online in a simple and hassle freeway.
- TATA AIA Sampoorna Raksha Plan offers rewards for insurance holders living a healthy lifestyle.
- The policy provides discount on premium amount for female insurance buyers.
- The policy provides discount on premium amount for higher sum assured.
- Tax benefits can be availed on the premium payment under section 80C of Income Tax Act 1961.
Bajaj Allianz iSecure
This is a pure term insurance plan which provides comprehensive insurance coverage to the insured’s family at an affordable premium rate. The plan comes with simple eligibility criteria and best for individuals who want to secure the financial future of their loved ones.
Kotak Mahindra e-Term Plan
Kotak Mahindra e-Term Plan is an online term insurance policy which provides life protection to the family of the policyholder at a minimum premium rate. The plan offers two plan options to choose from and comes with inbuilt rider benefit of waiver of premium.
HDFC Life Click2Protect Plus Term Plan
HDFC Life Pro-Growth Plan and HDFC Click to protect are a term insurance plans that provide life coverage as well as insurance opportunity to the buyers. These plans are designed in a very comprehensive way and provide life protection cum financial stability to the family of the insured.
Features of HDFC Life Click2Protect Plus Plan
- The insured have an option to increase the life cover on major events like marriage or child birth.
- It also provides add-on coverages as riders.
- Taking the payout as lump-sum plus monthly claim settlement
- The tenure of the policy states from10 years – 40 years
- The policy provides options for insured to take death benefit amount as lump-sum or as monthly income over 15 years.
- The insured have a choice to take add-on coverage as accidental death benefit and disability rider.
- Under section 80C and 10(10D) of income tax act the insured can avail the option of tax benefit.
Future Generali Flexi Online Term Plan
With a claim settlement ratio of 93.2%, Future Generali Flexi is a traditional term insurance plan that provides life coverage to the family of the insured in case of uncertain demise of the insured during the tenure of the policy. The plan can be purchased online in a simple and hassle freeway.
Features of Future Generali Flexi Online Term Plan
- The plan can be bought online through the company’s website.
- Future Generali Flexi Online Term Plan comes with two coverage options i.e. income protection and basic life cover.
- If policyholder survives the entire tenure of the policy then the policy does not provide any maturity.
- The policyholder can opt for additional accidental rider benefit along with the basic policy in order to enhance the coverage of the policy.
- Future Generali Flexi Online Term Plan provides premium rebate for female insurance buyers and non- smokers.
- The policy also offers discount on premium amount for option for higher sum assured amount.
- Tax benefit is offered on the premium payment under section 80C of Income Tax Act 1961.
- The plan provides life coverage up to maximum age of 75 years.
Aviva I Life
Aviva, I Life is a pure protection plan which provides insurance coverage to the family of the insured in the event of the unfortunate decease of the policyholder. The policy offers additional benefits for female insurance buyers.
IDBI Federal iSurance Flexi Plan
This is a comprehensive term insurance plan which secures the financial future of the family of the insured. The plan comes with inbuilt rider benefit for cancer, stroke and heart attack.
IDBI Federal iSurance Flexi Plan is a non-linked, non-participating term insurance plan that offers financial protection to the family of the insured in the event if uncertain demise of the policy holder. The plan offers a claim settlement ratio of 90.3%.
Features offered by IDBI Federal iSurance Flexi Plan
- The plan provides high insurance coverage at an affordable premium rate.
- The plan comes with innate conversion option for Heart Attack, Cancer and Stroke.
- IDBI Federal iSurance Flexi Plan offers rewards for insurance holders living a healthy lifestyle.
- The policy comes with add-on rider benefit of accidental death.
- Offers discount on premium amount for women.
- The insurance holder can avail tax benefit on the premium payment under section 80C and 10(10D) of Income Tax Act.
SBI Life eShield Plan
SBI life eShield plan is non-participating online term insurance, which provides high life protection to the family of the insured at a lower premium rate. The plan offers 4 different option of insurance coverage.
SBI Life eShield plan is an online term insurance plan which is specifically designed with an objective to provide life protection to the family of the insured at a very affordable premium rate. SBI Life eShield plan Plan has a claim settlement ratio of 96.7% and offers various benefits to the insurance holder.
Features of SBI Life eShield Plan
- As an online term insurance plan SBI Life shield plan do not offer any bonus facility.
- The plan offers the option to choose from 4 option of life cover.
- Under increasing level cover option, the sum assured increases by 10% every 5th year of policy.
- The plan offers the option to choose from add-on accidental death benefit at the initiation of the policy.
- The policy offers discount on higher sum assured.
- The policy offers discounts for female lives and non-smokers.
- Tax exemption is applicable on the premiums amount and claim made under Section 80C, 80D, 80DD and 10(10D) of Income Tax Act 1961.
Types of Term Insurance Plans
Standard Term Insurance:
It is the simplest of all best term insurance plans. The mode of payment can be chosen by the individual when he/she buys the policy. Payments can be made on a monthly, quarterly, half-yearly, or an annual basis.
Group Term Insurance Plans:
These are offered to a large group of people working together. Life cover is offered to all the members in the group. In case a person leaves the group, he/she will not be eligible for group cover anymore.
Joint Life Term Plan:
It is a plan where you and your spouse are covered. The duration of the plan is fixed and if either one of the members dies, the other person receives the life cover amount.
Convertible Term Plan:
By choosing such a plan, the policyholder can change it to an endowment plan or a whole life insurance plan. In case of change in plan, charges may be applicable.
Term Return of Premium (TROP):
The premiums paid throughout the policy are paid back by the insurance provider in case the policyholder survives the entire duration of the policy term.
Life Stage Event Term Insurance Plan:
In case you reach a certain significant life stage, the coverage of your plan can be increased.
Increasing Term Insurance Plan:
The only difference between an Increasing Term Insurance Plan and a Standard Term Insurance Plan is that there is an increase in life cover as the age of the policyholder increases.
Benefits of Best Term Insurance Plans
- By paying 2%-3% of your yearly income, you are provided a cover of about 20 times the income made in a year.
- There is no investment component.
- If the policyholder dies during the policy term, the premium is paid out to the nominee.
- Free-look period is offered.
- Discounts are available for females and non-smokers.
- Riders could be added to increase extent of base cover.
- Various options are available to choose from such as frequency of payment, policy duration, mode of payment, etc.
- Financial certainty is provided for your family at a low premium.
- Sum insured is higher at a low premium.
- Term insurance can be bought online. It is a time saving and simple process.
- Under Section 80C of the Income Tax Act, tax benefits are provided.
Some of the Reasons to Buy a Term Insurance Plan
- In case you are operating a start-up or a business.
- If you wish to secure your children’s future in your absence.
- If there are people depending on you (spouse, parents, etc.).
- If you are the only earner in your family.
- If you are planning to start a family.
- In case you have many loans, in your absence, your family will have to cope with the loans, therefore, it is advisable to buy a term insurance plan.
How to Choose the Right or Best Term Insurance Plans?
Presently, there is a vast range of plans available in the market. Each plan will have different benefits and features when compared to other plans. Therefore, it is important to choose the plan that meets your requirements. Some of the important points to keep in mind when you are buying a plan are listed below:
- Choose an insurance company with a good reputation.
- Choose a plan that can meet your financial requirements. For an individual to get benefits out of a term insurance plan, premium must be paid regularly. Therefore, it is vital to buy a plan that you can afford.
- Check to see if the insurance provider has a good claim settlement ratio.
- It is important that you go through all the terms and conditions in detail. It will help in understanding the policy as well.
Term Insurance Premium Calculator
To calculate the premium of a life insurance policy, an individual can use a Term Insurance Premium Calculator. It will calculate the premium amount of your policy as per your financial needs.
It is a very easy process and helps in saving time. Using a Term Insurance Premium Calculator can also minimize any errors that may arise during manual calculations. Customization of the Term Insurance Calculator as per your requirements is also possible.
The factors that are used to calculate the premium by using a Term Insurance Premium Calculator are mentioned below:
- Age of the individual is the most import criteria when calculating the insurance premium.
- Any addictions to alcohol, smoking, and drugs will increase the premium of the insurance policy. Individuals who do not have any addictions pay a lesser premium.
- Duration of the insurance policy.
- The premium is lesser if your family does not have any history of Alzheimer’s, cancer, etc.
- The premium of the policy increases if the sum assured is higher.
How to Use Term Insurance Calculator?
- All personal details of the individual must be entered. Smoking and chewing habits, duration of policy, and cover amount must also be entered as it affects the premium.
- Once the details are entered, various insurance plans from different insurance companies are shown. You can select a policy as per your needs.
- You will now need to enter details such as address and nominee. The next step would be to pay the premium with the help of net-banking, credit card, or debit card.
Benefits of Term Insurance Calculator
Some of the benefits for using the Term Insurance Calculator are mentioned below:
- Exact premium of the policy for your chosen amount can be calculated.
- Buying an insurance policy online becomes very easy.
- You can choose from various plans as per your requirements.
- Features of different plans can be seen and compared to choose the best policy.
- Buying a policy online is simple to understand and cheaper on most occasions.
Documents Required to File a Claim
- Policy document
- The claims form filled and signed
- Claimant’s statement
- Death certificate of the Life Assured
- Any other relevant documents
- Police FIR, inquest form, and final investigation report
- Attending doctor’s statement or medical attendant’s certificate
- Medical report, death summary, and test reports
- Claimant’s statement
- Post-mortem report
- Any other relevant documents
Therefore, it is important for an individual to do a thorough research of all term investment plans before buying one. Also, comparing plans online can help an individual to choose the right term investment plan. It also makes it easier for the individual to check features and benefits of each plan. There are various third-party websites available where term investment plans can be compared.