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Best Term Insurance Plans in India

Best Term Insurance Plans in India

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Many key players in the insurance market offer the best term insurance plan in India. However, there is a myriad of factors that have to be taken into account. We have considered factors like the amount of death benefit, premium payment, and duration for a good contrast. Based on our comprehensive review, we will assist you in choosing the perfect fit for you. So, keep reading the upcoming paragraph for further detail. Top 6 Best term insurance plan in India To help you out in this herculean task, we have prepared a market assessment report on various term life insurance policies. This comparison is based on several critical factors, such as your age, policy term, and other long term benefits. So,  keep reading for a better understanding!

1. LIC e-term insurance plan:

The LIC e-term insurance plan is an online term assurance plan without any LIC agent. Moreover, LIC e-term insurance plan is a non-participating insurance plan which takes care of all your family’s financial need. However, nothing will be paid if you survive the policy duration. Another important consideration is that only your life is protected in this insurance cover. Additionally, the premium should be paid annually. It is one of the best term insurance plan for 1 crore and above assured amount.

Features

  • LIC e-term Plan is available online. There is no need for any middle man.
  • For smokers and non-smoker category, premium rates are different. For instance, smokers get a minimum sum insured of Rs 50 lakh
  • The online term insurance plan of LIC is more cost-effective compared to its online counterpart.
  • Your family will get a complete amount of insurance in case of death.
  • LIC has a 30-day return policy. In case you are not satisfied with the terms and conditions of the policy, you have an option of policy withdrawal.
  • Lic also offers lucrative benefits for its non-residential customers. They can also purchase LIC e-term plan through an online platform. They will be covered in their current country. The only condition associated with this is that you have to undergo medical tests in India.
  • Online insurance policy’s premium is less as there is no agent’ commission.

Benefits

1. Death Benefit–Provides best deals in case of death benefits.
  • You will get either 7x of annualized premium or 105% of all the premiums.
  • You will be paid the absolute amount that is assured to be paid on death.
  • In the case of a single premium policy, the sum assured will be higher than 125% of Single Premium.
2. There are special Premium Rates for Women 3. Income Tax Benefit: If you pay an annual LIC premium of Rs 1.5 lakh, you are eligible for a deduction of this amount from your taxable income. This tax benefit you will receive under section 80C of the Income Tax Act. Apart from this, death benefits Are also exempted from income tax under section 10(10D).

Insurance coverage details:

  • The maximum age to avail of this insurance policy is 75 years.
  • Policy relapse can occur if premiums are not paid within the stipulated duration.
  • In case of policy relapse, you have 2 years to renew it
  • you have to pay for your medical bills
  • If you have returned your policy within the cooling period, you will be paid back with your premiums. You just have to pay for stamp duties.

Key highlights of LIC e-term Policy

  • Plan duration: Ranges from 10 to 35 years
  • Sum assured: Minimum limit: Rs 25 lakh, Rs 50 lakh for non-smokers.
  • Maximum limit: No upper limit
  • Premiums value: Lower limit: Rs 2875(annual)
  • Upper limit: Depends on the sum assured
    • Frequency of premium payment: Annually(Grace period-30 days)
    • Surrender value: no value
  • Freelook period: The period in which you can withdraw your policy without any penalties. For LIC, it is 30 days.
  • Add-on policy: You can purchase add-on covers that range between Rs 1 lakh to Rs 25 lakh. The premium of the add-on policy can be paid along with the parent policy premium.

Requirements for purchasing online term insurance:

  • Entry age: You should be above 18 years to get enroll in this insurance plan. The maximum age up to which you can avail this offer is 60 years.
  • Minimum Sum assured: The minimum amount required for the aggregate category is Rs 25 lakh. While in the case of non-smokers, it is Rs 50 lakh.
  • Maximum sum assured: No upper limit Income: Applicant should have earned income Coverage: The only applicant is covered Citizenship: Indian.
  • Premium: should be paid annually.
  • Policy duration: should be minimum of 10 years

2. Max Life Term Insurance Plan

Max life term insurance plan has both online and offline policies. If you are applying for the online policy, you will be free from the hassle of paperwork. While offline plans can be availed with consultation from the advisor. Another striking feature about this insurance plan is that you can avail of tax benefits on your premium amount. These feature of this policy makes it one of the best term insurance plan in India. One of the outstanding features of max life insurance policy is that you can avail loans in its lieu. In short, max provides a secure financial future for your dependents. It protects against the risk of death, accidental disability, and critical illness.

Features

  • Insurance cost is low compared to another insurer
  • Max’s life’s terms and conditions are flexible in terms of premium payment, cover amount, and so on.
  • Special concessions on policy price for non-smokers and women
  • Online shopping for an insurance policy. You can avail of any policy from the comfort of your house.
  • Under this insurance policy, all customers are eligible for income tax benefits under the sections of the IT Act, 1961
  • You can convert your plans without excessive paperwork.

Benefits

  • You have plenty of choices for payment.
  • In case you want to return your policy, many options are available at your disposal.
  • By applying to this insurance plan, you can avail Long duration insurance Coverage.
  • If you are already a policyholder, you can avail of 5% loyalty off your next purchase.
  • It provides Coverage for Smokers.
  • Max’s term life insurance plan protects against 40 critical illnesses.
  • Premium payment guidelines are not stringent and have multiple payment options.

Max Life Term insurance Plans:

  1. Max Life Online Term Plan
  2. Max Life Premium Protection Plan
  3. Max Life Super Term Plan

1. Max Life Online Term Plan

You can avail this online term plan through the company’s official portal. In the max life online term insurance plan, three variants are available. These are listed below:
Basic life coverLife Cover + Monthly IncomeLife Cover + Increasing Monthly Income
  • Basic term plan
  • It pays a fixed amount to the dependant.
  • In the case of the policyholder’s death, the assured sum is paid in the form of benefits.
  • If you choose this plan, your dependant will get double the benefits.
  • Under this, Your family will receive 100% of the sum assured. Afterward, they are also eligible for 0.4% of the sum assured as a monthly payment.
  • Monthly income will be available for 120 months.
  • So, in total, this plan pays 148% of the sum assured to the dependant family
  • This plan offers long term benefits.
  • In this policy, you will get life cover. Your family will receive a fixed amount in case of death.
  • Additionally, a monthly income will be provided to your loved ones for 10 years every month.
  • This monthly income will keep on rising by 10% every year.
  • In total, this plan pays 169.6% of the sum assured to the dependant family

Key highlights:

  • Age requirement: Ranges from 18 t0 60 years Maturity Age: Max 75 years
  • Premiums payment: Monthly, quarterly, half-yearly, or annually
  • Limited payment option Freelock period: 30 days, Grace period: 15 days for regular premium payment
  • Policy tenure: Minimum-10 years, Maximum-35 years
  • Sum assured: Minimum: Rs 25 lakh Maximum: Rs 100 crores.
  • Tax benefits: On premium- Can avail tax redemption up to Rs 1 lakh annually as per Sec 80C
  • Death benefits-No tax as per Sec 10(10D)
  • Death benefits: Fixed amount assured or sum assured+fixed monthly income or sum assured+10% increase in fixed monthly income(yearly)

2. Max Life Premium Return Protection Plan

In this category of insurance plan, you will get complete life cover. Additionally, you will get back the premiums that were paid during the policy tenure. Key highlights Age requirement:   Minimum-21 years Maximum-55 years in case of 20-year policy; 50 years in case of 25-year policy and 45 years in case of a 30-year policy
  • Maturity age:         Maximum-75 years
  • Premium payment: Minimum-Rs 8500 Maximum-depends on the sum assured
  • Premium payment duration: 3 options available In the case of Regular Pay –throughout the policy term Limited Pay – Premium paid for either 5 years or 10 years Single Pay – One-time lump sum payment of premium
  • Policy tenure: Duration can be 20 years, 25 years, or 30 years
  • Premium payment: Monthly, quarterly, half-yearly, or annually
  • Sum assured: Min-Rs 5 lakh Max 1 crore Death benefits-Either 10 times of annual premium or105%of total premium
  • Maturity benefit: equivalent to the total premium paid

3. Max Life Super Term Offline Plan

It is an offline insurance plan that offers pure protection and financial security at a low-cost premium. Key highlights Age requirement: Min-18 years; Max-65 years Maturity age: Maximum of 75 years Premium payment: regular pay Minimum – INR 5000 Maximum – No limit Sum assured:         Min-Rs 25 lakh Max-No limit Policy duration: Ranges from 10 to 35 years Premium payment: Annual, semi-annually, quarterly or monthly Death benefits: You can either avail 105% of total premium paid or 10 times more amount  of annual premium Sum assured: Fixed or 5% raise every year without nay rise in premium

3. HDFC Life Click 2 Protect Plus Term insurance Plan

HDFC life insurance plan is one of the best insurance policies. It provides a comprehensive protection plan at reasonable prices. With an HDFC term insurance plan, you will be assured about your family’s future. It offers one of its kind services in the insurance market. For instance, you can choose insurance cover and other features based on your requirement. There is no doubt that HDFC life click 2 protect plus offers one of India’s best insurance plans. Another striking feature associated with this policy is that you have to pay a low premium for a range of life cover features

Features:

  • You can avail of the additional cover. There are many options available to enhance your insurance cover after marriage or  childbirth
  • This insurance policy also covers death benefits for the rider in case of accidents.
  • The applicant can avail of lumpsum benefits and also claim monthly income.

Benefits:

1.Death Benefits: Following benefits to the dependent in case of death of the policyholder Single premium policy: Your family can get 125% of single premium, or sum assured (Highest of both) Other premium policy: you can avail either of the following benefits
  • 105% of all paid premiums
  • 10 X of the annualized premium
  • Total sum assured
2.Life Stage Protection
  • If you choose this plan, your dependant will get double the benefits
  • Under this, Your family will receive 100% of the sum assured. Afterward, they are also eligible for 0.4% of the sum assured as a monthly payment.
  • Monthly income will be available for 120 months.
  • So, in total, this plan pays 148% of the sum assured to the dependant family.
3. Life Stage Protection: This is one of the best add-on cover provided by the HDFC term insurance plan. By making additional premium payments. These add-on policies will provide financial coverage at each stage of life, such as adding new family members. 4. Sum Assured increase: You always has an option to increase your insurance coverage 5. Additional Coverage reduction option: Under the HDFC term insurance plan, you can reduce the insured person’s additional coverage once he attains 45 years of age. 6. Maturity Benefit: No maturity benefits 7. Income Tax Benefit: You are eligible for premium cost deduction from your taxable income under sec 80C. The upper limit is Rs 1.5 lakh.

Key highlights

  • Age requirement: 18 to 65 years
  • Maturity age: 75 years
  • Policy tenure: 10 to 40 years. Depend on maturity age
  • Premium payment option: Annual, semi-annually, quarterly or monthly
  • The minimum annualized premium will be Rs 3000
  • Sum assured: Minimum: Rs 25 lakh, Maximum: No limit

Documentation requirement for HDFC life term policy

  1. KYC documents: It includes Identity proof, Address proof
  2. Age proof: DOB document
  3. Income proof
  4. A medical test is mandatory for the applicant.

4. Aditya Birla Sun Life Term Insurance

The insurer provides lucrative offers that will protect your loved ones from future liabilities. They mainly offer four life insurance plans. You can choose the best plan that suits your requirement. In the following paragraphs, you can read all the necessary details about these plans.

BSLI Protector Plus Plan

Key features:

  • Age requirement: The person must be between 18 to 65 years to avail of this plan
  • Policy duration: Ranges from 5 to 30 years
  • Sum assured: Minimum sum assured-30 lakh and no upper limit
  • Premium cost: Minimum-Rs 3024 and no upper limit

Benefits(Death benefits):

You can avail these benefits either in monthly installments or in a lump sum
  1. 105% of all paid premiums
  2. 10 X of the annualized premium
  3. A Higher of sum assured
  • Other benefits: Other benefits will be paid to the dependant throughout 10, 15, or 20 years.
  • Premium payment option: Annually, half-yearly, quarterly, monthly

BSLI Future Guard Plan:

Offers premium return on the occasion of policy maturity

Key features:

  • Age requirement: The person must be between 18 to 65 years to avail of this plan
  • Policy duration: Ranges from 10 to 30 years
  • Sum assured: Minimum sum assured-5 lakh and no upper limit
  • Premium cost: Two options available
    • Option A: Full premium amount returned on maturity
    • Option B: 110 to 150% of the premium amount will be returned
  • Benefits (Death benefits): You can avail these benefits
  • 105% of all paid premiums(annual)
    • 10 X of the annualized premium
    • Higher of sum assured.
  • Premium payment option: Annually, half-yearly, quarterly, monthly

BSLI Easy Protect Plan:

Key features:

  • Age requirement: The person must be between 18 to 55 years to avail of this plan
  • Policy duration: Ranges from 5 to 30 years
  • Sum assured: Minimum sum assured-50 lakh and no upper limit
  • Premium cost: equivalent to policy terms
  • Benefits (Death benefits): Nominee will get the sum assured on death of the policyholder
  • Premium payment option: Annually and monthly

BSLI Protect@ease Plan

Key features:

  • Age requirement: The person must be between 18 to 55 years to avail of this plan
  • Policy duration: Ranges from 5 to 30 years
  • Sum assured: Minimum sum assured-50 lakh and upper limit-Rs 500 crores
  • Premium cost: equivalent to policy terms
  • Benefits (Death benefits): Nominee will get these benefits
  • 105% of all paid premiums(annual)
  • 10 X of the annualized premium
  • Higher of sum assured.
  • Premium payment option: Annually and monthly

Features & Benefits

  • Under the Protector plus 5 riders available such as BSLI Accidental Death & Disability Rider
  • There is two coverage option under the Protect Plus plan:
  • Constant sum assured
  • Yearly 5% or 10% increase in Sum Assured
  • Income tax benefits: You can avail premium amount deduction from your taxable income according to Section 80C and Section 10(10D).

5. ICICI term insurance plan

ICICI offers a large range of term insurance plans. It is known as one of the best term life insurance in India. It offers a wide range of services to a large demographic area. ICICI provides the best term insurance plan for 2 crores. Usually, people opt for a 1 crore insurance plan. It mainly offers two online plans. The first one is the ICICI PRU iProtect Term Insurance Plan. It is one of the most distinguishing and beneficial insurance policies for its customer. ICICI term insurance is the only plan in which you can claim for 34 critical illness. Additionally, you can get coverage up to the age of 75 years. The second one is ICICI PRU iCare II Term Insurance Plan: It provides the best insurance coverage at the lowest premiums. There are two available option in this policy Option I: in this death, benefit=sum assured Option II: Additional death benefit=base sum assures/Rs 50 lakh (Lowest of the two)

Features

  • This insurance plan is suitable for your budget
  • Provides longer coverage to the applicant
  • You will be paid on diagnosis of 34 critical illness based on the list mentioned in their database
  • You can choose from four flexible payout options
  • It offers the best term insurance plan for 2 crores. This insurance policy offers accidental death benefit with a maximum accident cover of Rs 2 crore.
  • This policy even covers terminal illnesses such as AIDS.
  • At any stage, you can avail of any add-on packages, such as accidental benefits.

 Term insurance Benefits:

1.Death and Terminal Illness benefit: The nominee will receive a complete life cover amount in death or terminal illness. In both cases, the family will get a 100% cash payout. 2.Permanent Disability benefits: In this case, the firm pays for all the applicant’s leftover premium. 3.Accidental Death benefits: the nominee will get a lump sum amount in case of accidental death. It is an optional 4.Critical Illness: If the person is suffering from any of the 34 listed critical illnesses, he/she will receive a lumpsum payout. 5 Tax benefits: your annual premium is eligible for tax benefit under section 80C

Variants and their key benefits:

  1. Life: Death benefits, Terminal Illness Benefits, and Special discount on premium in case of Permanent Disability
  2. Life Plus: Death benefits, Terminal Illness Benefits, Special discount on premium in case of Permanent Disability and accidental death benefits
  3. Life & Health: Death benefits, Terminal, critical Illness Benefits, and Special discount on premium in case of Permanent Disability
  4. All-in-One: Death benefits, Terminal, critical Illness Benefits, Special discount on premium in case of Permanent Disability and accidental benefits

Key Highlights of ICICI PRU protect

  • Age requirement: The person must be between 18 to 55 years to avail of this plan
  • Maturity age: 65 years
  • Plan duration: It ranges from 10, 15, 20, 25 up to 30 years
  • Sum assured: Minimum-Rs 25 lakh; Maximum-1 crore
  • Minimum annualized Premiums: Rs 2000 without service tax
  • Premium payment: Annually, half-yearly, quarterly, monthly
  • Add-on: In non-medical cases, insurance cover becomes active on receipt of premium. While medical tests are required in cases, your add-on benefits will become active on the plan’s issuance.
  • Freelook period: 15 days from the date of receipt of policy documents
  • Surrender period: Not available in this plan
  • Maturity benefit: NO

Documentation requirement:

  • Age Proof: any document showing your DOB. For example -Driving license, school/ leaving certificate, and birth certificate
  • ID Proof: Anyone PAN Card, Voters Card, Aadhar Card
  • Residence Proof: Utility bills, bank statement
  • Income Proof: IT returns.

6. SBI Term Insurance

SBI term insurance policies are tailor-made. These are specifically designed to meet the needs of valuable customers. This insurer provides the option of online renewal of the policy. Based on your capability in our financial condition, you can choose between monthly and annual premiums. SBI offers death benefits. It also provides other coverage, such as accidental death coverage.

Features and Benefits

  • SBI term insurance policy provides financial support to the deceased family member and supports to fulfill other commitments. For instance, it provides loan protection.
  • The application process is simple. You can avail of your policy through online or offline mode.
  • Affordable premium rates is another advantage of these policies. They have policies for both the middle class and low-income families.
  • Flexible-Premium payment. You can either pay your premium monthly or yearly basis.
  • It offers riders that provide accidental death benefits. These are additional covers.
  • Income tax benefits are the other advantage.

Options under SBI Term Insurance Plans:

1. SBI Life Smart shield

Key features:
  • Age requirement: 18 to 65 years
  • Maturity age: 70 years
  • Plan duration: It ranges from 5 to 30 years
  • Sum assured: Minimum-Rs 25 lakh; Maximum-No limit
  • Premiums: Single premium Rs 15000 (Minimum), yearly Rs 5000, 3 months Rs 1,250, 6 months Rs 2500, every Month Rs 450. No upper limit
  • Premium payment: Annually, half-yearly, quarterly, monthly
  • Riders: Death accidental Benefit, Permanent Disability and Accelerated critical Illness Cover
  • Surrender period: available for a single premium policy
  • Death benefits: available. No survival benefits

2. SBI Life Saral Shield

Key features:
  • Age requirement: It ranges from 18 to 65 years
  • Maturity age: 65 years
  • Plan duration: It ranges from 5 to 30 years
  • Sum assured: Minimum-Rs 7.5 lakh; Maximum-24 lakh
  • Premium payment: Annually, half-yearly, quarterly, monthly
  • Premiums: Single premium Rs 10000 (Minimum), yearly Rs 2000, 3 months Rs 600, 6 months Rs 1100, every Month Rs 250.
  • Premium payment: Annually, half-yearly, quarterly, monthly
  • Riders: Death accidental Benefit, Permanent Disability and Accelerated critical Illness Cover
  • Surrender period: available for a single premium policy
  • Death benefits: Available. No survival benefits

3. SBI Life – Grameen Bima

Key features:
  • Age requirement: It ranges from 18 to 50 years
  • Plan duration: 5 years
  • Sum assured: Minimum-Rs 10,000 Maximum-Rs 50,000
  • Premium payment: Annually, half-yearly, quarterly, monthly for level term assurance and decreasing term assurance single premium payment
  • Premiums: Minimum -Rs 300, Maximum -Rs 2000, and Premiums are paid in multiples of Rs 100
  • Premium payment: Single
  • Surrender period: available from second year onwards
  • Death benefits: Available

4. SBI Smart Shield term assurance Options

1.Level Term Assurance: Most simple term insurance plan. In this dependant gets the sum assured in case of death 2. Increased Term Assurance: In this plan, your sum assured amount increase year b year. In case you want to shield your family from inflation, this might be a good option for you. 3.Decreased Term Assurance: It provides loan protection and available for those who have a loan to be paid 4. Decreased Term Assurance: It provides family income protection. In this plan, the sum assured would be reduced during the policy term and the death of the user

How to Choose Term Insurance Plan in India?

While selecting the best term insurance plan, the first thing that should come to your mind is the price? Apart from price, other more critical factors are necessary for your family's financial security. We should never neglect these considerations. You can also check out the workings of some other Insurances. In the upcoming paragraph, we will discuss these five factors in more detail. So, keep reading!

1. Insurer’s Claim Settlement Ratio:

Before making a final choice, never forget to look for the claim settlement ratio of your insurer. It is defined as the percentage of claims that were paid out of the total filled claim in the particular year. The greater the claim settlement ratio, the greater will be the financial security of your family. For instance, ICICI Prudential Life has a high claim settlement ratio as it has settled 10,938 claims out of the 11,034 claims in the last financial year.

2. Solvency Ratio of the company:

It is an indicator of the capacity of your insurer to settle your claims. As per  IRDAI, every life insurer’s solvency ratio should be at least 1.5.

3. Critical Illness Cover:

This coverage is beneficial if the breadwinner of the family I suffering from critical illness. All you need to submit is medical documents confirming the disease diagnosis. These premiums also qualify for income tax rebates.

4. Additional Coverage option:

An insurer provides basic term insurance plans. To provide complete financial security to your loved ones, you need to buy a few add-on packages. So, always choose a plan based on your requirement. Here we are listing some of the best-rated features of term life insurance plans.
  • Premium Waiver
  • Accidental Death benefit
  • Income Benefit
  • Terminal illness benefit
  • Flexibility in policy
While comparing insurance plans, always check if these features are available in your basic plan.

5. Premium Cost:

After comparing the above-mentioned factors, try to look into the premium cost that you have to pay. Never make compromises on other benefits. You should keep in mind that your premiums are eligible for a tax deduction

FAQs

1. What kind of surrender benefits are available under the ICICI care plan?

You can only avail surrender benefits in case of single pay. Surrender value = 70% × single premium × (policy term)

2. Tell me about the grace period of the SBI term insurance policy?

Grace period for SBI term insurance plans depends on your premium payment duration. For half-yearly, annually, and the quarterly premium payment grace period is 30 days. In the case of the monthly payment, it is 15 days.

3. Do you get any tax benefits for term insurance policies?

The premiums paid are qualified for tax rebate under the sections 80C, 80D, and 10(10D) of the income tax act.

4. Can you suggest the various types of Max Life Term Plans?

Generally, there are three plans under the max life term insurance plan. These are Super Term Plan, Premium Return Protection Plan, and Super Term Plan.

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