Finding the best term insurance plan is an impertinent necessity for an individual who has dependents or a family. It is a proven fact that a term plan offers the most ‘value for money’ proposition. It is the basic form of life insurance where a fixed sum assured is paid on death of life assured. In case of survival of the life insured during the policy term, no maturity benefit is offered by the insurer. The premium rate of the best term insurance plans depend on three basic factors: age, term of the policy and the sum assured you choose.

List of Best Term Insurance Plans of 2019

Term insurance policies are offered by most of the insurance providers and these plans come with different term period such as 10 years, 20 years, 30 years, etc. Most of these best term insurance plans come with an in-built feature to get converted to a permanent life insurance policy regardless of the insured’s health condition.

As there is a wide range of term insurance plans available in the market, choosing the right one always seems to be a herculean task. In order to help you out, here we have shown the list of best term insurance plans in India to invest in 2019.

• LIC e-Term Insurance Plan
• ICICI Pru iProtect Smart
• SBI Life eSheild
• HDFC Life Click 2 Protect 3D Plus
• Max Online Term Plan Plus
• SBI Smart Shield
• Aegon Life iTerm Plan
• Aviva iLife Plan
• Bajaj Allianz eTouch Online Term Plan
• PNB Metlife Mera Term Plan

Best Term Insurance Plans to Invest in India 2019

Let us take a look at the best term insurance plans in India to invest in 2019

Term Plan	Entry Age (Min-Max)	Policy Term (Min-Max)	Accidental Death Benefits	Critical Illness Benefit	Waiver of Premium	Terminal Illness
LIC E-term Plan	18 - 60 years	10 - 35 years	N/A	N/A	N/A	N/A
ICICI Prudential iProtect Smart	18 - 60 Years	5 - 40 years	Paid	N/A	Free	Free
SBI Life eShield Plan	18 - 65 years	5 - 30 years	Paid	N/A	N/A	N/A
HDFC Life Click 2 Protect 3D Plus	18-65 years	10 - 40 years(or upto 50 Years)	Paid	Paid	N/A	N/A
Max Life Online term Plan Plus	18-60 years	10 - 40 years	Paid	N/A	Included	N/A
SBI Smart Shield	18 - 60 Years	5 - 40 years	Paid	N/A	Free	Free
Aegon Life iterm Plan	18-65 years	5 - 40 years (or upto 80 Years)	Paid	N/A	Paid	Free
Aviva iLife Plan	18- 55 years	10 - 35 years	N/A	N/A	N/A	N/A
Bajaj Allianz eTouch Lumpsum	18 - 65 years	10 - 40 years	Paid	Paid	Free	N/A
PNB MetLife Mera Term plan	18-65 years	5 - 40 years	Paid	Paid	N/A	N/A

**Note: The above plans require mandatory medical proofs. 

LIC e-Term Insurance Plan

As one of the best term insurance plans, LIC e-term plan is an online term insurance plan which provides financial security to the family of the insured at a very affordable premium rate.  As it is an online term plan, the process of purchase of LIC e-term plan is very simple and hassle-free. The policy provides a death benefit to the beneficiary of the policy in the event of demise of the insured during the policy tenure. 

Features and Benefits

1. This is a traditional non-participating term insurance plan.
2. The plan only offers death benefit.
3. The plan can be purchased online in a simple and hassle-free way.
4. Offers insured the flexibility to choose the tenure of policy ranging from minimum 10 years to maximum 35 years.
5. Offers the benefit of tax exemption U/S 80C of Income Tax Act.
6. The maximum maturity age of the policy is 75 years.

ICICI Pru iProtect Smart

As one of the best term insurance plans in India, ICICI Pru iProtect Smart Plan comes with different options of life cover to choose from. As a comprehensive term insurance plan ICICI Pru iProtect Smart provides financial protection to the family of the insured at a very affordable premium rate. The plan also provides additional rider benefit as accidental death rider benefit and critical illness benefit in order to enhance the coverage of the policy.

Features and Benefits

1. This is best term insurance plan, which can be purchased online in a simple and hassle-free way.
2. The plan provides comprehensive coverage against terminal illness, death and disability.
3. Offers Premium discount for female policy buyers.
4. Offers the benefit of tax exemption U/S 80C of Income Tax Act.
5. The insured can choose from the three different payment option monthly income, lump-sum and increasing income.

SBI Life eSheild

SBI Life eShield is a best term insurance plan which is known to provide different plan options to meet various needs of its customers. The best part of the plan is that, the customers who follow healthy lifestyle gets more affordable premium rates. The plan has several benefit structures, such as level cover and increasing cover. The product also offers in-built Accidental Death cover as well as tax benefits to the policyholders.

Features and Benefits

1. This is best term insurance plan, which comes with a regular premium paying options.
2. The plan provides comprehensive coverage at an affordable premium rate.
3. The insured can choose from three different options of coverage.
4. The premiums paid towards the policy are applicable for tax exemption U/S 80C of Income Tax Act. The maturity proceeds are applicable for tax exemption U/S 10(10D) of IT Act.
5. The plan comes with a minimum entry age of 18 years, whereas the maximum entry age of the policy is 65 years.
6. The maximum maturity age of the policy is 70 years.

HDFC Life Click 2 Protect 3D Plus

HDFC Life Click 2 Protect 3D Plus is a best term insurance plan, which provides comprehensive insurance coverage to the family of the life, insured at an affordable premium rate. The 3D in the HDFC Life Click 2 Protect 3D Plus refers to the uncertainties of life i.e. death, disease, and disability. The plan provides financial security to the family of the life insured in case of an eventuality during the tenure of the policy. HDFC Life Click 2 Protect 3D plus offers the option of 9 plans to choose from.

Features and Benefits

1. This is an online term insurance plan, which can be purchased in a simple and hassle-free way.
2. The plan provides financial protection to the family of the insured in case of any eventualities.
3. The Insurance holder can choose from 9 different plan options, as per their requirement and suitability.
4. The plan offers a free-look period of 30 days.
5. Tax benefit can be availed under section 80C and 10(10D) of Income Tax Act.
6. The plan offers lower premium rate for non-smokers and female insurance buyers.

Max Online Term Plan Plus

Max Online Term Plan Plus is known as one of the best term insurance plan, which provides financial protection to the family of the life insured at a low premium rate. As a non- participating pure term insurance policy, Max Online Term Plan Plus offers the 3 different life cover options to choose from. The plan also provides additional rider benefit as accidental death rider benefit to enhance the coverage of the policy. It also offers, waiver of premium rider benefit, wherein the policy continues in case the life insured is not able to pay the premium due to illness or dismemberment.

Features and Benefits

1. This is a pure term insurance plan, which can be purchased online in a simple and easy process.
2. The plan offers 3 different variants of payout option to choose from.
3. The plan comes with extra rider benefits, to enhance the coverage of the policy.
4. The plan offers flexibility on premium payment mode.
5. Tax benefit can be availed under section 80C, 80D, 80DD and 10(10D) of IT Act.
6. The plan offers a free-look period of 30 days.
7. The plan offers lower premium rate for non-smokers and female insurance buyers.

SBI Smart Shield

SBI Smart Shield is known as one of the best term insurance plan, which provides financial protection to the family of the life insured at an affordable premium rate. As a non- participating pure term insurance policy, SBI Smart Shield offers the 4 different life cover options to choose from. The plan also provides additional rider benefit as accidental death rider benefit and critical illness benefit in order to enhance the coverage of the policy. 

Features and Benefits

1. This is a traditional non-linked pure term insurance plan.
2. The plan comes with extra rider benefits, to enhance the coverage of the policy.
3. The plan offers a free-look period of 15 days.
4. In case of demise of the insured, death benefit is paid to the beneficiary of the policy.
5. The insured can avail tax benefit under section 80C of Income Tax Act.
6. The maximum maturity age of the policy is 70 years.
7. The plan offers 4 different options of payout.

Aegon Life iTerm Plan

As one of the best term insurance plans, Aegon Life iTerm Plan is a pure term insurance policy which comes with inbuilt terminal illness benefit. The plan provides life coverage till the age of 80 years.  As an online term plan, the process of policy purchase is very simple and hassle free. The plan also provides additional rider benefit as accidental death rider benefit and critical illness benefit in order to enhance the coverage of the policy.

Features and Benefits

1. This plan can be purchased online in a simple and easy process.
2. The minimum entry age of the policy is 18 years, whereas the maximum entry age of the policy is 65 years.
3. The maximum maturity age of the policy is 80 years.
4. The insured can avail tax benefit under section 80C of Income Tax Act.
5. In case of demise of the insured, death benefit is paid to the beneficiary of the policy.
6. The plan offers flexibility on premium payment mode.
7. The plan offers lower premium rate for non-smokers and female insurance buyers.

Aviva iLife Plan

Aviva iLife is a best term insurance plan that provides life coverage to the family of the insured at a very affordable premium rate. The policy provides a death benefit to the family of the insured in the event of demise of the insured person. Apart from death benefit the plan also provides tax benefit under section 80C and 10(10D) of Income Tax Act 1961. 

Features and Benefits

1. This is one of the best term plan, which can be purchased online in a simple and hassle-free way.
2. In case of demise of the insured, the policy offers guaranteed annual payout to the family for 15years.
3. Tax benefit can be availed under section 80C and 10(10D) of Income Tax Act.
4. The plan offers two different options of payouts.
5. The maximum maturity age of the policy is 70 years.
6. The plan offers a free-look period 15 days.

Bajaj Allianz eTouch Online Term Plan 

Bajaj Allianz eTouch Online Term Plan is known as one of the best term insurance plan from Bajaj Allianz Life Insurance, which provides financial protection to the family of the policyholder at a low premium rate. As a non-participating pure term insurance policy, Bajaj Allianz eTouch Online Term Plan offers the 4 different life cover options to choose from. Apart from death benefit the plan also provides tax benefit under section 80C and 10(10D) of Income Tax Act 1961. 

Features and Benefits

1. This is comprehensive term insurance plan, which can be purchased online.
2. Higher sum assured rebate is applicable additional Rs.1 Lakh coverage amount above the basic sum assured amount.
3. The policy provides financial protection to the family of the insured, in case an eventuality.
4. The death benefit payment is offered in two different payout options.
5. Tax benefit can be availed under section 80C and 10(10D) of IT Act.
6. The plan offers lower premium rate for non-smokers and female insurance buyers.

PNB Metlife Mera Term Plan 

As one of the best term insurance plans, PNB Metlife Mera Term Plan offers protection to the family of the insured at a low premium rate. PNB Metlife Mera Term Plan also offers the option of increasing monthly cover with 12% per annum. Moreover, the policy also provides coverage for a spouse under the same policy. Apart from death benefit the plan also provides tax benefit under section 80C and 10(10D) of Income Tax Act 1961. 

Features and Benefits

1. This is a comprehensive term insurance policy, which can be purchased online.
2. The policy offers individual coverage to spouse under same plan.
3. The plan provides the flexibility to enhance the coverage of the policy.
4. The plan comes with a maximum maturity age of 75 years.
5. Lower premium rates are offered for non-smokers and female policy buyers.
6. The policyholder can avail tax benefit under section 80C of IT Act.

Claim Settlement Ratio of Term Insurance Companies

Now as you know what term insurance means. Let us look at the claim settlement ratio of term insurance providers according to IRDA in the year 2018-19. The table is updated according to the latest data available.

Insurance Provider	Death claims received	Claim settlement ratio	Death Claims Paid	Claims Pending
LIC	7,55,901	98.31%	7,42,243	0.50%
Max Life	9,223	97.81%	8,804	0.10%
Birla Sunlife	8,436	94.69%	8,055	1.70%
Tata AIA Life	3,873	96.01%	3,659	1.00%
Star Union Daichi	1,266	84.05%	1,191	0.30%
ICICI Prulife	12,309	96.68%	11,546	0.80%
PNB MetLife	2,466	87.14%	2,290	1.50%
Bajaj Allianz	20,661	91.67%	18,978	3.00%
Kotak Mahindra Life	2,686	91.24%	2,437	3.20%
HDFC Life	12,189	97.62%	11,031	2.30%
SBI Life	14,876	96.69%	13,303	3.20%
Sahara Life	778	90.21%	700	3.60%
Aegon Life	460	97.11%	413	0.20%
Canara HSBC	576	94.95%	516	3.10%
Exide Life	3,432	96.40%	2,955	1.60%
Reliance Life	18,142	94.53%	15,211	5.80%
Future Generali	2,160	89.53%	1,808	1.80%
Aviva Life	1,690	90.60%	1,396	0.50%
Bharti AXA Life	1,112	92.37%	900	2.90%
IDBI Federal Life	1,017	90.33%	736	4.30%
India First Life	1,655	82.65%	1,195	5.00%
Shriram Life	1,960	63.53%	1,307	11.20%
DHFL Pramerica	953	90.87%	545	6.50%
Edelweiss Tokio	119	93.29%	68	5.00%

**Claim settlement ratio for the year 2018-19   

While looking for a term insurance policy, one of the major points to consider is term insurance claim settlement ratio.Claim Settlement ratio of a company informs you about the number of policies that are settled by paying back the claims in case of death. 

For most of the people, even the best term insurance plans become quite tricky to understand as the facts & figures used in these products are not easy to relate to. This is one of the major reasons that IRDA has made it mandate to use simple calculation methods to help users calculate Claim settlement Ratio.

The calculation of Claim Settlement Ratio is based on the total number of claims received by the insurance company against the total number of claims settled by it.

To further simplify, the formula used for it is: Total numbers of Claims Settled /Total number of Claims Made

Let’s say for an example, an insurance company has received 5000 claims in a financial year and it settled 4800 claims amongst those 5000 claims in the same financial year.

Thus, the CSR comes to be: 4800/5000 = 96 percent

Claim Rejection Ratio = (5000-4800)*100/5000 = 4 percent

Let’s suppose 100 claims are still waiting to be processed by the company. In that case, the pending ratio will be: 100/5000*100 = 2 percent

The reason behind keeping these calculations simpler is to make the buyers understand it easily, which eventually enables them to make a fair decision after looking into CSR details.

Claim settlement ratio has been chosen to rate the insurance companies because it is the only ratio which could be of use to customers while they select the policy. High claim settlement ratio shows the insurer is reliable and could be trusted for taking term plans whereas the low ratio indicates that the credibility of insurer is less and therefore they won't attract many customers because of their inability to settle claims.

Looking at the Claim settlement ratios of various companies it is clear that Life Insurance Corporation of India (LIC),  Aditya Birla Sunlife, Bharti Axa, Aegon Life, and Edelweiss Tokio are the top 5 insurance companies that have fared well in terms of settling their claims and hence stand a good chance of gaining customers' attention for a Term Insurance Plan.

It is a suggestion to all the customers that they make their choices wisely depending on the past performance of the insurers evaluated through their Claim Settlement ratios. Besides that age, health and income of the individual are of ample importance because depending on that only would the insurer decide on the sum insured, premium, term etc. Rest, the provided list is good enough to choose the best term insurance plan. 

However, there are also such factors that might lead to the rejection of your claim. Few of them include:

Misrepresentation of Data:

Sometimes, the lack of information or wrong information shared by the insured in the application form (provided by the insurance company) can lead to the claim rejection. If the person buying the insurance hasn’t answered the questions or provided the data & information clearly at the time of buying insurance, it might also lead to lapse of claim.

Fraud: 

There have been many cases where the customers have tried to fool the company and make extra money by making fraud claims. For instance, many times the customers quote a much higher value of the insured product than the real damage cost incurred, in order to extract more money from the insurer. Thus, insurance companies follow a thorough procedure to check the authenticity of the claims made, to avoid any losses.

Contracts:

It is a very common phenomenon amongst the policy buyers to ignore those teeny-weeny terms & conditions printed on the contract while signing it. For us, going through the list of terms & condition has always been an unimportant task; however, that is where we get trapped and then we have to pay its price later on. That is why, it advisable to take your time and thoroughly analyze the contract before signing it. In case, you get stuck at any point get it clear from the agent to avoid any confusion later on.

Nominee:

Every year, many claims are rejected by the insurer on the grounds that the nominee was not present at the time of claim settlement. Therefore, it’s really important for a nominee to be present for claim settlement; otherwise, the claim can be rejected. Furthermore, if there is any ongoing dispute going on between two parties that has got the involvement of the legal heir or the nominee of the insurance, its need to be settled before claiming the insurance as the insurance companies don’t entertain such cases in order to avoid any involvement in such disputes in future. 

Before we conclude this article, it is important to mention that you should not make your decision solely based on the Claim settlement ratio of an insurance company.  This is because, though you get a fair idea with CSR about the number of claims settled by an insurer in one particular year, it is still does not give you any clear idea on why other claims were rejected.

There could be a lot of reasons leading to the rejection of claims by the insurance company such as fraud, misrepresentation/non-disclosure of the facts or delay in submitting the required documents by the buyer. Hence, you need to be smart and be true & clear about the facts shared with your insurer while buying a policy which will eventually make the life much easier for your nominee.

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