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 the best term insurance offers the most ‘value for money’s proposition. It is the basic form of life insurance where a fixed sum assured is paid on the death of the 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 depends on three basic factors: age, the term of the policy and the sum assured you choose.

Most of the people often get into the misconception that the term insurance plans do not provide ample coverage as they do not provide any maturity benefit. However, contrary to this, there are various term insurance plans that offer high insurance coverage at a very affordable premium rate. Moreover, a hassle-free process of premium payment guarantees safety with the convenience of the best term insurance plan.

As the simplest form of life insurance product, there are wide ranges of best affordable term insurance plans available in the market. According to one’s own requirement and suitability, the customer can compare the plans online and choose the most comprehensive plans available in the market. This article will give you a better understanding of the best term insurance plans along with their respective claim settlement ratio.

Before we dig into the nitty-gritties of the best and safest term insurance plans, let’s see:

What is Term Insurance?

Term Insurance is amongst some of the best and the most cost-effective investment modes to financially secure the future of your loved ones, in the times of uncertainties. The best term plan provides coverage to the insured and their family in the form of growing regular income and a lump sum amount. This insurance policy secures the financial future of their family in case of any eventuality. Additionally, different term plans offer different term plan benefits. The best term Plan with Return of Premium (TROP) offers a return of premium in case the policyholder survives the policy term.

List of Best Term Insurance Plans

Term insurance plans 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 best 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 given the list of top term insurance plans in India to invest in 2020.

• 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 PlanB

Best Term Insurance Plans in India

Let us take a look at the best term insurance plans in India to invest in 2020.

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 affordable term insurance plans, LIC e-term insurance 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 the demise of the insured during the policy tenure.

Features and Benefits

LIC e-Term Insurance Plan comes packed with several features and benefits. Some of the key features and benefits are listed below:

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

 

ICICI Pru iProtect Smart

ICICI Pru iProtect Smart Plan ranks amongst the top term insurance plans and 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 an accidental death rider benefit and critical illness benefit in order to enhance the coverage of the policy.

Features and Benefits

The salient features and core benefits of ICICI Pru iProtect Smart plan are as follows:

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

 

SBI Life eSheild

SBI Life eShield is amongst the top affordable term insurance plans, and 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 a healthy lifestyle get 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

• This is the best term insurance plan in India, which comes with a regular premium paying options.
• SBI Life eSheild is the best term plan that provides comprehensive coverage at an affordable premium rate.
• The insured can choose from three different options of coverage.
• 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.
• The plan comes with a minimum entry age of 18 years, whereas the maximum entry age of the policy is 65 years.
• 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 one of the best online term plans, which provides comprehensive insurance coverage to the family of the life insured at an affordable premium rate. The 3D feature 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 any 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

Some of the key features and benefits of HDFC Life Click 2 Protect 3D Plus plan are as follows:

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

 

Max Online Term Plan Plus

Another best suitable term insurance plan is Max Online Term Plan Plus. 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

Max Online Term Plan Plus comes loaded with certain features and benefits. Some of these features and benefits are listed below:

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

 

SBI Smart Shield

SBI Smart Shield, another best and safest term insurance plan that 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

Here are some of the best features and benefits of SBI Smart Shield:

• This is a traditional non-linked pure term insurance plan.
• The plan comes with extra rider benefits, to enhance the coverage of the policy.
• SBI Smart Shield, the best affordable term plans, offers a free-look period of 15 days.
• In case of demise of the insured, death benefit is paid to the beneficiary of the policy.
• The insured can avail tax benefit under section 80C of the Income Tax Act.
• The maximum maturity age of the policy is 70 years.
• The plan offers 4 different options for pay-out.

 

Aegon Life iTerm Plan

As one of the best term insurance plans in India, Aegon Life iTerm Plan is a pure term insurance policy, which comes with inbuilt terminal illness benefit. The plan provides life coverage until 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

Here is a list of the features and core benefits of the best affordable term policy – Aegon Life iTerm Plan:

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

 

Aviva iLife Plan

Aviva iLife is the best term insurance plan in India 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 the 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

Aviva iLife Plan comes packed with certain benefits and features, they are as follows:

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

 

Bajaj Allianz eTouch Online Term Plan 

Bajaj Allianz eTouch Online Term Plan ranks amongst the best term insurance plans from Bajaj Allianz Life Insurance. The plan 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

Below are the salient features and benefits of Bajaj Allianz eTouch Online Term Plan:

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

 

PNB Metlife Mera Term Plan 

Marking its place amongst 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

Let’s dig into some of the core benefits and key features of PNB Metlife Mera Term Plan:

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

What is Claim Settlement Ratio?

The claim settlement ratio of an insurance provider is the number of claims that are settled versus the number of claims filed by the insured or his/her nominee. In this way, at the time of choosing a term insurance provider, you must also check the claim settlement ratio and prefer the one that has good CSR. Claim Settlement Ratio can help you find the best term plan.

Claim Settlement Ratio of Term Insurance Companies

Let us look at the claim settlement ratio of term insurance providers according to IRDA in the year 2017-18. The table is updated according to the latest data available. The insurance provider with the highest claim settlement ratio would offer the best term plan.

Insurance Provider	Death claims received	Claim settlement ratio	Death Claims Paid	Claims Pending
LIC	7,55,901	98.00%	7,42,243	0.50%
Max Life	9,223	98.70%	8,804	0.10%
Birla Sunlife	8,436	97.1%	8,055	1.70%
Tata AIA Life	3,873	99.10%	3,659	1.00%
Star Union Daichi	1,266	92.26%	1,191	0.30%
ICICI Prulife	12,309	98.60%	11,546	0.80%
PNB MetLife	2,466	96.20%	2,290	1.50%
Bajaj Allianz	20,661	95.00%	18,978	3.00%
Kotak Mahindra Life	2,686	97.40%	2,437	3.20%
HDFC Life	12,189	99.00%	11,031	2.30%
SBI Life	14,876	96.80%	13,303	3.20%
Sahara Life	778	90.21%	700	3.60%
Aegon Life	460	96.50%	413	0.20%
Canara HSBC	576	95.20%	516	3.10%
Exide Life	3,432	97.00%	2,955	1.60%
Reliance Life	18,142	97.71%	15,211	5.80%
Future Generali	2,160	95.20%	1,808	1.80%
Aviva Life	1,690	96.00%	1,396	0.50%
Bharti AXA Life	1,112	97.30%	900	2.90%
IDBI Federal Life	1,017	96.20%	736	4.30%
India First Life	1,655	94.20%	1,195	5.00%
Shriram Life	1,960	80.23%	1,307	11.20%
DHFL Pramerica	953	96.60%	545	6.50%
Edelweiss Tokio	119	97.80%	68	5.00%

**Claim settlement ratio for the year 2017-18 

While looking for a term insurance policy, one of the major points to consider the term insurance claim settlement ratio. Claim Settlement ratio of a company informs you about the number of best term insurance plans 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 per cent

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

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

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 best term insurance plans whereas the low ratio indicates that the credibility of the 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 the claim. Therefore, you must provide relevant information and avail the claim for the best term plan for you.

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 term insurance 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 analyse 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 is 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 have 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 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 the best term plan, which will eventually make the life much easier for your nominee.