Best Term Insurance Plans

This article will give you a better understanding of the best term insurance plans offered by top term life insurance companies along with their respective claim settlement ratios.

Best Term Insurance Plan In India 2022

Below is a list of the Best Term Insurance Plan in India from some of the top term insurance companies along with their Claim Settlement Ratios.

*Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

How to Choose The Best Term Insurance Plan In India 2022?

You must go through the following factors to consider while buying a term insurance plan that is the most suitable for you. It is also better to purchase term plans online as it not only saves time but also money since there are no middlemen involved. Here is a list of all the steps you should follow to choose the best term insurance plan in India 2022:

But before this, let’s first understand the meaning of term insurance and its benefits:

What is Term Insurance Plan?

Term insurance is a type of life insurance product where the insurance company provides coverage for a certain term in return for a specific premium amount paid over a period of time. If the policyholder dies during the term specified in the policy, the death payout is paid to the policyholder’s family. Term insurance provides high life coverage at low premium rates.

What are the Benefits of a Term Insurance Plan?

Following are the benefits of the Term Insurance Plan.

• Higher Coverage at Lower Premiums: Term plans offer the highest life cover at pocket-friendly costs.

• Whole Life Cover: Various term insurance offers a whole life cover, in which case your family will be financially protected against an eventuality for a long time.

• Payout Options: Several term plans provide the option of selecting the payout option for the sum assured, which can serve as regular income.

• Return of Premium: Term Plan often offers the option of receiving the paid premiums back at the end of the policy term as a maturity benefit.

• Additional Rider Benefit: You can include various riders in your base plan to get enhanced coverage.

• Easy to Understand: Term plans are very easy to understand as they provide cover for the policy term as long as you are up-to-date with your premium payment.

• Premium Frequency: You can select the premium paying mode and frequency at your convenience as a lot of insurers provide single, regular or limited payment options.

• Online/Offline: You can easily purchase term insurance online or offline. However, various insurers offer special deals on online purchases. There are many benefits of buying term insurance online.

As we have discussed the factors to consider while choosing the best term insurance plan, let’s discuss them in detail:

1. Assess Your Requirements

   The sum assured amount of your term plan should be sufficient to meet your family’s financial goals in your absence. In order to determine the adequate amount, you should consider your current income, existing liabilities such as loans, number of dependents, funds needed to meet the family’s lifestyle, inflation rate, and the amount invested each month for achieving financial goals.

2. Select Your Insurer

   Before purchasing a policy you should select a reliable insurer based on their:

   • Claim Settlement Ratio: The Claim Settlement Ratio of Term Insurance describes the number of claims a company settles against the total number of claims made. The higher the CSR, the better the chances of your claim getting settled. You can check the CSR of each insurer from the IRDA annual report that they release every financial year. The formula used to calculate CSR is as follows:

   • Claim Settlement Ratio: Total Number of Claims Settled /Total number of Claims Made x 100

     Let us understand with the help of an example:

     If an insurance company received 5000 claims in a financial year and settled 4800 claims within the same year. Then the CSR according to the above formula will be 96%, indicating a good claim settlement ratio, which means the claims made with the insurer will be settled quickly.

     CSR ⇒ 4800/5000 x 100 = 96%

   • Solvency Ratio: The Solvency Ratio of Term Insurance determines the ability of the insurer to meet their financial obligations to customers.

3. Additional Riders

   Term plans allow you to include various riders in your base plan to enhance the policy coverage. You can include any of the following riders to extend the financial coverage in unfortunate circumstances:

   • Waiver of Premium: With this rider, your remaining premiums will be waived off, in case of a job or income loss.

   • Accidental Death: Under this rider, your family will receive an increased amount as a death benefit in case of the death of the policyholder due to an accident.

   • Critical Illness: In this rider, you will receive an extra amount as soon as the policyholder is diagnosed with a critical illness to deal with the medical expenses.

   • Income Benefit: By including this rider, your nominees will receive a regular monthly income to meet their financial obligations, in your absence.

   • Permanent and Partial Disability: With this rider, you will receive a percentage of the sum assured in case of a permanent or partial disability.

4. Calculate The Premium Amount

   After going through all the above-mentioned points, you must evaluate the premium required and purchase the plan that fits your needs. You can use an online term insurance calculator to determine the premium you are required to pay for your desired sum assured amount.

Why Buy Term Life Insurance Online?

Reasons to buy Term Insurance Online

Convenient (buy it through mobile)

Cost - Effective (Online Discounts)

No Documentation (zero paperwork)

Customisation (Add rider benefits)

Easy Comparison (Compare plans In seconds)

View Plans

Best Term Insurance Plans In India

Following is a list of the best term insurance plan offered by top term life insurance companies

1. Aditya Birla Sun Life Insurance DigiShield Plan

   This is a traditional protection term plan which offers a higher sum assured amount at a nominal premium rate. The plan secures the financial future of the family of the insured against any type of eventuality. Moreover, the plan also takes care of future liabilities and helps to maintain a good lifestyle even in the absence of the breadwinner of the family. Here are some of the salient features of the policy and the benefits offered by it.

   Features and Benefits

   Here is a list of the features and core benefits of Aditya Birla Sun Life Protector Plus Plan:

   • The plan provides complete financial protection at a minimum premium rate.

   • Offers 10 plan options to fit your requirements.

   • The plan comes with an inbuilt terminal illness benefit along with the option of including an Accelerated Critical Illness Benefit to enhance the coverage of the policy.

   • The beneficiary can receive the death benefit as lump-sum, monthly income, or a combination of both.

   • Policy offers the option to receive survival benefits as monthly income after the age of 60 to maintain financial independence.

   • The plan offers rider options to enhance the coverage of the policy.

   • The policyholder can save on tax under Section 80C of the Income Tax Act.

   Read More

2. Aegon Life iTerm Comfort

   Aegon Life iTerm comfort is a pure term life insurance policy, which offers life cover as a lump-sum payout. The plan provides life coverage until the age of 70 years. As an online term insurance plan, the process of policy purchase is very simple and hassle-free. The plan also provides additional rider benefits like accidental death rider benefits and critical illness benefits to enhance the coverage of the policy.

   Features and Benefits

   Here is a list of the features and core benefits of the term plan – Aegon Life iTerm Comfort:

   • 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 70 years.

   • The insured can avail of tax benefits under section 80C of the Income Tax Act.

   • In case of the unfortunate death of the insured, the death benefit is paid to the beneficiary of the policy.

   • The plan offers flexibility in premium payment mode.

   • The plan offers various premium payment frequency modes like monthly, quarterly, bi-annually, and yearly.

   Read More

3. Bajaj Allianz eTouch Online Term Plan

   Bajaj Allianz eTouch Online Term Plan ranks amongst the 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 life insurance policy, Bajaj Allianz eTouch Online Term Plan offers 4 different life cover options to choose from. Apart from the death benefit, the plan also provides tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

   Features and Benefits

   Bajaj Allianz eTouch Online Term Plan comes packed with certain benefits and features, they are as follows:

   • This is one of the affordable term life insurance which can be purchased online in a simple and hassle-free way.

   • In case of the demise of the insured, the policy offers a guaranteed annual pay-out to the family for 15 years.

   • Tax benefit can be availed under sections 80C and 10(10D) of the Income Tax Act.

   • The plan offers two different options for payouts.

   • The maximum maturity age of the policy is 70 years.

   • The plan offers a free-look period of 15 days.

   Read More

4. Bajaj Allianz Life Smart Protect Goal

   Bajaj Allianz Smart Protect Goal is a pure term plan that offers the option of choosing Return of Premium (ROP) on maturity. This plan provides life cover, secures your life goals, and helps you live stress-free. You can also include additional riders to the base plan for enhanced coverage.

   Features and Benefits

   • This term plan offers various premium payment options like single premium, limited premium, or regular premium.

   • You can opt to receive a Return of Premiums (ROP) as a maturity benefit on the maturity of the plan.

   • Riders like Accidental Death Benefits, Accidental Total Permanent Disability Benefits, Critical Illness Benefits, and Waiver of Premiums Benefits can be included in the base plan.

   • The plan provides the option of a whole life cover up to the age of 99 years.

   • Policyholders can avail of tax benefits u/s 80C and 10(10D) of the Income Tax Act.

   Read More

5. Bharti AXA Flexi Term Pro

   This is an online term insurance plan that provides comprehensive coverage to the family of the insured in case of any emergency. As an online term plan, it can be purchased online in an easy and hassle-free way. Along with the benefits of insurance coverage, the plan also helps to save on taxes. The following are some of the key features and benefits of the policy.

   Features and Benefits

   These are some of the features and benefits offered by the policy.

   • The plan offers cover for the single life plan till the age of 99 years.

   • The plan offers the option to choose the insurance coverage amount and tenure of the policy as per one's requirement and suitability.

   • The policyholder can pay the premiums in a single pay, regular pay, or limited pay.

   • The policyholder can select the death benefit payout as per their beneficiary’s need.

   • Tax benefits can be availed under Section 80C of the Income Tax Act.

   Read More

6. Canara HSBC iSelect Smart360

   Canara HSBC iSelect Smart360 term plan is a comprehensive protection term plan which is specifically designed to provide financial security to the family of the insured and take care of the future financial needs of the family in the absence of its breadwinner. The plan offers multiple options like plan options, whole-life coverage, in-built coverage, etc. Here are some of the salient features and benefits offered by the policy.

   Features and Benefits

   The following are some of the features and benefits offered by the policy.

   • The plan provides different plan and coverage options to choose from.

   • The policyholder can choose the inbuilt cover of their choice to enhance their coverage.

   Different cover options offered by the plan are:

   • Plan Options

     • Life Secure

     • Life Secure with Income

     • Life Secure with Return of Premium

   • Coverage Options (applicable only with the plan option life)

     • Level

     • Increasing

   • Optional In-built Cover

     • Accidental Death Benefit

     • Accidental Total & Permanent Disability Premium Protection

     • Accidental Total & Permanent Disability – Premium Protection Plus

     • Critical Illness Premium Protection

     • Critical Illness Premium Protection Plus

     • Terminal Illness

     • Child Care Benefit

     • Block Your Premium

   • Tax benefits can be availed under Section 80C of the Income Tax Act.

   Read More

7. Edelweiss Tokio Life Total Protect Plus

   This is a pure term insurance plan, which provides insurance coverage to the family of the insured in case of any eventuality. Moreover, the plan also covers the child under the Child Future Protect Benefit and/or the spouse under the Better Half Benefit option. Let’s take a look at some of the benefits offered by the policy and its salient features.

   Features and Benefits

   The following are some of the features and benefits of this policy.

   • The plan offers different coverage options to choose from.

   • The plan offers life cover until the age of 100 years.

   • The policyholder can choose the limited premium payment option to pay the premium of the policy.

   • The plan offers add-on rider benefits against Critical illnesses, Disabilities, Accidents, Accidental Deaths, and Hospitalisation.

   • Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.

   • The death benefit can be availed as a lump-sum, monthly income benefit, or a combination of both.

   Read More

8. HDFC Life Click 2 Protect Super

   HDFC Life Click 2 Protect Super is one of the online term plans, which provides comprehensive insurance coverage to the family of the life insured at an affordable premium rate. The HDFC Life Click 2 Protect Super is designed to fit the needs of your evolving lifestyle and life stages. 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 Super offers the option of 3 plans to choose from.

   Features and Benefits

   Some of the key features and benefits of the plan are as follows:

   • This is the 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.

   • You can get back all the premiums paid as maturity with the Return of Premium option.

   • The insurance holders can choose from 3 different plan options, as per their requirements and suitability.

   • You can include a Waiver of Premium Benefits for Critical Illness and Total and Permanent Disability.

   • This is one of the affordable term plans with a free-look period of 30 days.

   • Tax benefits can be availed under sections 80C and 10(10D) of the Income Tax Act.

   Read More

9. HDFC Life Click 2 Protect Life

   HDFC Life Click 2 Protect Life is a comprehensive term plan that provides financial protection to your family in the event of an eventuality. This plan auto-balances Death and Critical Illness benefits with increasing age and offers the option of a life cover for the whole life. You can easily purchase the plan online hassle-free through policybazaar.

   Features and Benefits

   • You can opt to receive all the paid premiums, back at maturity with the Return of Premium option.

   • Provides the option of income payouts from the age of 60 with the Income Plus Option.

   • The plan offers 3 plan options from which the policy buyers can choose the one that best fits their needs.

   • You can include the various add-on benefits including the Waiver of Premium on Critical Illness Benefits and Accidental Death Benefits.

   • The policy offers the option to reduce the premium paying term from Regular to Limited Pay at any point of the policy term.

   • The plan offers special premium rates for females and non-tobacco users.

   Read More

10. HDFC Life Quick Protect Solution

    This is a regular pay term plan with the benefits of four coverage plans combined into one. This plan can be bought online effortlessly from the insurer’s website or from policybazaar’s term page.

    Features and Benefits

    • The plan offer three Sum Assured package options which are 75 Lacs, 1 Cr, and 1.25 Cr.

    • The Critical Illness Rider within the plan offers cover against 19 critical illnesses.

    • The premium paying term will be equal to the policy term with no Return of Premium option available.

    • You can opt for regular monthly income for 10 years in the case of an Accidental Total Permanent Disability.

    • The policyholders can avail of tax benefits under sections 80C and 10(10D) of the Income Tax Act.

    Read More

11. ICICI Prudential iProtect Smart

    ICICI Pru iProtect Smart Plan ranks amongst the 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 benefits such as an accidental death rider benefit and a critical illness rider benefit to enhance the coverage of the policy.

    Features and Benefits

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

    • This is amongst the 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.

    • There are also special premium rates offered for non-tobacco users.

    • You can opt for the premiums to be paid in a single pay, regular pay, or limited pay, as per your choice.

    • Offers the benefit of tax exemption U/S 80C of the Income Tax Act.

    • The insured can choose from the three different benefit payout options, which are monthly income, lump sum, or a combination of both.

    Read More

12. IndiaFirst e-Term Plus Plan

    This is a pure protection plan that ensures that the policyholder’s loved ones are taken care of even in his/her absence. This plan can be purchased online in a simple and hassle-free way. Along with providing financial coverage to the family, the plan also takes care of the future liabilities of the family in case of the demise of the insured person during the policy term. The following are some of the features and benefits of the policy.

    Features and Benefits

    India First Anytime Plan comes packed with several features and benefits. Some of the key features and benefits are listed below:

    • The policy offers the option to enhance the sum assured at different life stages like marriage, taking home loans, and childbirth.

    • In case of an unfortunate demise of the insured person during the policy term, the death benefit can be paid as a lump sum, or as monthly income, to the beneficiary of the policy.

    • Tax benefits can be availed under section 80C of the Income Tax Act.

    • The policyholder can choose from 8 different coverage options, the plan that fits their requirements the best.

    Read More

13. Kotak e-Term Plan

    The Kotak e-Term plan is a complete risk cover plan that will protect your loved ones in case of an eventuality. It truly offers a high level of protection and is available at a special premium cost for women and non-tobacco users.

    Features and Benefits

    Listed below are the key features and benefits offered by Kotak e-Term plan:

    • It is a low-cost insurance policy, which offers high coverage at a pocket-friendly price.

    • Through the step-up option, the cover can be enhanced at special life events.

    • Offers three pay-out options to choose from and three plan options.

    • Choose rider benefit options such as accidental death benefit, total permanent disability, and critical illness.

    Read More

14. LIC Tech Term Plan

    LIC’s Tech Term Plan, is a pure life protection plan that provides protection to the family of the policyholder in case of the policyholder’s untimely death. The policy term offered under the plan is from 10 to 40 years.

    Features and Benefits

    Here is a list of all the features and benefits offered by LIC’s Tech Term Plan:

    • You can choose from two benefit options: Level or Increasing Sum Assured.

    • LIC Tech Term offers the flexibility to choose

      • Regular, Limited, or Single premium payment.

      • Benefit payout in installments

      • Policy and premium paying term

    • The plan offers special rates for women and non-smokers.

    • You can also enhance your coverage by including the Accidental Benefit Rider in your base plan.

    Read More

15. Max Life Smart Secure Plus

    Another suitable term insurance plan is Max Life Smart Secure Plus. As a non-participating, pure term insurance policy, this plan offers 3 different life cover options to choose from. The plan also provides additional rider benefits like accidental death rider benefits and critical illness benefits to enhance the coverage of the policy. It also offers, a return of premium option, wherein the policyholder will get all the paid premiums back at the maturity of the policy.

    Features and Benefits

    Max Life Smart Secure Plus comes loaded with certain features and benefits. Some of these features and benefits are listed below:

    • This is an affordable term plan, which can be purchased online simply and easily.

    • The plan offers different premium paying terms like regular pay, single pay, and limited pay.

    • The plan comes with extra rider benefits, to enhance the coverage of the policy.

    • Tax benefit can be availed under sections 80C and 10(10D) of the IT Act.

    • This is the term plan as it offers a free-look period of 30 days.

    Read More

16. PNB Metlife Mera Term Plan Plus

    Marking its place amongst the term insurance plans, PNB Metlife Mera Term Plan Plus offers protection to the family of the insured at a low premium rate. PNB Metlife Mera Term Plan Plus also offers the option of additional spouse coverage. Moreover, the policy also provides the option for the Return of Premiums. Apart from death benefits the plan also provides tax benefits under sections 80C and 10(10D) of the Income Tax Act 1961.

    Features and Benefits

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

    • This is a comprehensive term insurance plan, which can be purchased online.

    • The policy offers additional coverage to the spouse under the same plan.

    • The plan provides the flexibility to enhance the coverage of the policy under Step-Up Benefit, Life Stage Benefit, and Child Education Support Benefit.

    • The plan comes with a maximum maturity age of 75 years.

    • The policy offers 3 life benefit options with different additional riders included in the base plan.

    • Lower premium rates are offered for non-smokers and female policy buyers.

    • The policyholder can avail of tax benefits under section 80C of the IT Act.

    Read More

17. SBI Life eSheild Next

    SBI Life eShield Next is amongst the more affordable term insurance plans and is known to provide different plan options to meet the 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 Terminal Illness cover as well as tax benefits to the policyholders.

    Features and Benefits

    • This is the term insurance plan in India, which comes with premium paying options like single pay, regular pay, or limited pay.

    • SBI Life eSheild Next is the term plan that provides comprehensive coverage at an affordable premium rate.

    • The insured can choose from three different options of coverage.

    • The plan can be customized using the Death Benefit Payment Mode and Better Half Benefit Option.

    • The premiums paid towards the policy are applicable for tax exemption U/S 80C of the Income Tax Act.

    Read More

18. TATA AIA Sampoorna Raksha Supreme

    The TATA AIA Sampoorna Raksha Supreme is a plan that ensures that family members are never short on financial resources and lead their lives without any financial stress in case of the unfortunate demise of the breadwinner. This non-linked term insurance plan also ensures that the burden of debts or loans, if any, does not impact the family’s life and happiness. This Sampoorna Raksha Supreme plan offers an array of choices to fulfill certain financial necessities of the family and secure their future accordingly.

    Features and Benefits

    Listed below are the key features and benefits offered by TATA AIA Maha Raksha Supreme:

    • Offers whole-life coverage until the age of 100 years.

    • An alternative to enhance the policy and make it more secure through rider benefit options.

    • You can enhance your protection with the optional riders available.

    • Special premium rates are offered for females.

    • Option to increase the cover with the life stage option at each important milestone.

    • The policy provides the option to pay the premium only once, throughout the term of the policy, or for a limited period.

    • Option to get income payouts at 55, 60, or 65 years of age for an easy retirement.

    • Avail tax benefits as per the existing laws.

    Read More

Why Should You Buy Term Plan from Policybazaar?

How To Buy The Best Term Insurance Plan In India From Policybazaar?

You can buy term life insurance online by following the below steps:

• Step 1: Go to policybazaar’s term plan page

• Step 2: Enter basic details like Name, DOB, and Phone no. and click on ‘view plans’

• Step 3: Submit details about your occupation type, annual income, educational qualifications, and smoking habits

• Step 4: Compare the policy details of the different plans available

• Step 5: Select the term insurance plan that fits your requirements the best

• Step 6: Proceed to pay via net banking, debit or credit card.

Best Term Insurance Plans in India- FAQs