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How to Choose the Best Term Insurance Plan

An eventuality can be struck with anyone anytime, during such uncertainties a term insurance plan works as a financial cushion for the family’s financial security. Moreover, the benefits offered by the term plans also work as income replacement for the family member.   

With an extensive range of term policies available in the market, customers often get confused to choose the best term plan as per one’s requirement and suitability. While choosing the best term insurance plan, various aspects should be kept in mind like policy period, insurer, coverage amount, etc.

Read further to know a few simple tips on how to choose the best term insurance plan to secure your family’s financial future.

Tip 1: While determining the coverage amount, think about the number of family members and your life stage

The number of dependent family members may vary as per the different life stages. A single salaried individual will have less financial responsibility as compared to the person who is married or the one with kids. Thus, one should choose the coverage amount accordingly. Also, if you are purchasing a plan at a very young age then do keep in mind the increasing financial responsibilities in the future.

Tips 2: Think about how much coverage your family will need to maintain a good lifestyle

Whether you are the single breadwinner of the family contributes to the family’s collective income, always choose the coverage amount that is ample for your family to maintain a good lifestyle even in your absence. As per the insurance experts, it is always advised that the insurance buyers should choose the coverage amount 10-15 times of their annual income.

Tips 3: Go for the insurers who have a higher claim settlement ratio

This is the most important aspect to consider while purchasing the best term insurance plan.  The claim settlement ratio of the company is determined as the percentage of claims settled by the insurance company by the total number of claims received in a financial year. The higher the claim settlement ratio of an insurance company is the more reliable it is is.  Thus, always try to purchase the policy from a renowned insurer so that you can be assured that in case of a claim filed, the family will get all the benefits of the policy.

Tip 4: Know what are the riders benefit offered by the policy

Apart from the death benefit offered by a term insurance plan, many policies come with extended rider benefits to enhance the coverage of the policy. Go through the terms and conditions of these riders before adding them to your base plan. Also, make sure that you know what are the riders option offered under a particle plan before zeroing in on one.

Tips 5: Don’t forget to compare the plans

While zeroing in on a term insurance plan it is very important to compare the plans online. By comparing various plans online you can evaluate the benefits offered by the different plan and choose the best term insurance plans as per your suitability and requirement at a minimal premium rate. Thus it is a must to compare the plans online before making an informed decision.

Apart from these simple tips, you can also take help of the below-mentioned table to choose the best term insurance plan. 

Best Term Insurance Plans in India

Let’s take a look at the best term plans in India.

Plans Entry Age Policy Term Premium Paying Term Sum Assured Incurred Claim ratio
Aviva Life Shield Advantage Plan 18 years/55 years 10 years-30 years Single pay, Regular pay Min-Rs.35,00,000

Max-Option A- No upper limit

Option B- Rs.50,00,000
96.06%
Bajaj Allianz iSecure Plan 18 years/60 years 10,15, 20,25 & 30 years Regular pay Min- Rs.2,50,000(general category)Rs.20,00,000 (split category) Max- No upper limit 95.01%
Bharti Axa Life Flexi Term Plan 18 years/65 years 5, 10,15,20 years Regular pay Min- Rs.10,00,000 Max-Rs.25,00,000 97.28%
Canara HSBC iSelect Term Plan 18 years/65,55, 50, 45 years N/A Single pay, limited pay Min-Option 1- Rs.25,00,00 Option 2- Rs.50,00,000 Option 3- Rs.15,00,000 Max- No upper limit 94.04%
Edelweiss Tokio Life Protection Plan 18 years/60 years 10-30 years Single pay, regular pay Min- Rs.15,00,000 Max- No upper limit 95.82%
Exide Life Smart Term Plan 18 years/60 years, 65 years 10-30 years, 12-30 years Regular Pay N/A 97.03%
Future Generali Flexi Online Term Plan 18 years/55 years 10 years- 65 years minus entry age(smokers) 10 years-75 years minus entry age (non-smokers) Equal to policy term Min- Rs.50,00,000 Max- No upper limit 95.16%
HDFC Life Click 2Protect Plus 18 years/65 years 5 years-85 years minus the age at entry 10 years-40 years Regular pay, limited pay & single pay N/A 99.04%
ICICI Pru iProtect Smart Plan 18 years/65 years 5,10,15,20 years Single pay, limited pay, regular pay N/A 98.58%
IDBI Federal Termsurance Life Protection Plan 18 years/60 years 10-30 years Single Pay, regular Pay Min-Rs.5,00,000 Max- No upper limit 95.79%
Kotak e-Term Plan 18 years/65 years 5 years-40 years Regular pay, limited pay, single pay Min-Rs.25,00,000 Max- No upper limit 97.40%
LIC Tech Term Plan 18 years/65 years 10 years-40 years Equal to policy term Min-Rs.25,00,000 Max- No upper limit 97.79%
Max Life Online Term Plan Plus (Basic Cover) 18 years/60 years Regular Pay- 10 years-50 years Limited Pay- 15 years-50 years Regular pay, limited pay Min-Regular Pay- Rs.25,00,000 Limited Pay- Rs.50,00,000 Max- Rs.100 crore 99.22%
PNB Metlife Mera Term Plan 18 years/65 years 10 years-81 years Regular Pay & limited pay N/A 96.21%
Pramerica Life TruShield 18 years/45,50,55 years 7 years, 10 years, 12 years, 15 years &20 years Regular pay, limited pay Min-Rs.5,00,000 Max-Rs.50 Crore 96.80%
SBI Life eShield Plan 18 years/60 years, 65 years 5 years- 80 years minus the age at entry 10 years-75 years minus the age at entry Equal to Policy Term Min-Rs.35,00,000 Max-No upper limit 95.03%
Shriram Life Smart Protection Plan 18 years/65 years 10 years-30 years Equal to policy term Minimum- Rs,1,00,000 Maximum-Rs.14,00,000 85.03%
Star Union Dai-ichi Life Abhay 18 years/65 years 15 years-40 years Single pay, regular pay Min-Rs.50,00,000 Max-Rs. 100crore 96.74%
TATA AIA Sampoorna Raksha 18 years/70,65,50 years 10years-85 years minus age at entry, 15 years-85 years minus age at entry For Whole Life- 100 years minus age at entry Limited Pay, Regular Pay Min-Rs.50,00,000 Max- No upper limit 99.07%

Disclaimer- “Policybazaar does not endorse, rate, and recommend any particular insurer or insurance product offered by an insurer.

Written By: PolicyBazaar - Updated: 10 October 2020
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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