Best Term Insurance Plan in India

Term insurance is the type of life insurance plan in which if any unfortunate death occurs during the policy term, then the policyholder’s nominee/beneficiary will receive the sum assured amount. Term plans provide large coverage at low premium rates. Let’s discuss the best term insurance plan in India, understand their benefits, and know how to buy the plans from Policybazaar.

What is the Best Term Insurance In India 2023?

Below is a list of the Best Term Insurance Plan in India 2023 from some of the top term insurance companies along with their Claim Settlement Ratios for FY 2021-22.

Note: Table illustrates the 18 year male, a non-smoking individual opts for a life cover of Rs. 1 Crore. Above table shows the list of the best term insurance plans for 1 crore.

The above-mentioned plans offer different life cover options for different annual incomes.

Best Term Insurance Plan In India: An Overview

Following is a list of the 12 best term insurance in India 2023 offered by top term life insurance companies.

1. ICICI Prudential iProtect Smart

   • This is amongst the best term insurance in India, 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.

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

   Read More

2. HDFC Life Click 2 Protect Super

   • 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.

   Read More

3. Max Life Smart Secure Plus

   • 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.

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

   Read More

4. TATA AIA SRS Vitality Protect

   • This plan offers life cover for future financial protection for your family in case of terminal illness or death

   • Receive benefit of wellness program

   • Guranteed premium rate discount in the first year

   • Free healthy check-ups are available

   Read More

5. Bajaj Allianz eTouch Online Term Plan

   • This is one of the best term insurance in India, 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.

   • 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

6. PNB Metlife Mera Term Plan Plus

   • 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.

   Read More

7. Canara HSBC Young Term Plan

   • The plan offers a return of premiums on the survival of the policy term.

   • You can exit the plan early and receive all the premiums paid during the policy.

   • The plan waives off future premiums on the diagnosis of a covered critical illness or an accidental total permanent disability during the policy term.

   • You can block your premium rate at the time of policy purchase and increase the cover up to 100% of the base sum assured.

   • The plan allows you to cover your spouse within the same plan.

   Read More

8. 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

9. Aegon Life iTerm Prime

   • The plan provides life cover with lump sum payout on demise

   • Affordable premium rates throughout your earning time

   • Option to receive all your premiums back if in case you no longer need life coverage through special exit feature

   • Flexible premium payment modes

   • Option to select add-ons/riders for Critical Illness or Accidental death to increase the policy coverage.

   • Tax benefits on premium amount paid and payouts received as per the prevailing laws of the ITA, 1961.

   Read More

10. SBI Life eSheild Next

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

    • SBI Life eShield 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.

    Read More

11. Aditya Birla Sun Life Insurance DigiShield 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.

    Read More

12. LIC Tech Term Plan

    • LIC e-Term insurance plan is a non-participating pure life insurance 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

But before learning how you can select the best term insurance plan for yourself, let’s first understand the meaning of term insurance, term insurance benefits, and its definition:

What is a 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. The best term insurance plan in India provides high life coverage at low premium rates.

What are the Benefits of Buying the Best Term Insurance Plan in India?

The following are the benefits of buying the best term insurance in India:

• Higher Coverage at Lower Premiums: The best term insurance plans provide high life cover at really low premium rates.

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

• Payout Options: Several best term plan in India 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: There are several important term insurance riders available in the best term insurance in India. You can include any of the available riders in the best term insurance 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 payment mode and frequency at your convenience, as a lot of insurers provide single, regular, or limited payment options.

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

• Tax Benefits: Get term insurance tax benefits as per the prevailing laws of the Income Tax Act, 1961.

How to Choose The Best Term Insurance Plan In India 2023?

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 saves not only 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 2023:

• Assess Your Requirements: The sum assured amount of your best term insurance 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.

• Risk Cover Offered: The best term plan in India provides a death benefit to the family in case of the policyholder’s untimely death. This way, the term insurance plans cover the risk of the family’s financial instability in the absence of the main income earner.

• Types of Term Plans: Insurance providers in India offer a variety of best term insurance plans for you to choose from. You can select the type of term plan that best fits your needs from the regular term plans, term return of premium plans, 100% refund of premium at no-cost term plans, and whole life insurance policies.

• Select Your Insurer: Before purchasing the best term insurance plan in India 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 for buying best term insurance in India 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. Make sure the solvency ratio of the insurers offering the best term insurance plan should be over 1.5.

• Compare Term Plans: After selecting a suitable insurer, go through the list of available plans from the companies of your choice, and select the best term insurance in India. You can compare term plans based on their premium rates, CSR values, policy term, sum assured, critical illness coverage, loan facility, and other benefits offered.

• Additional Riders: When it comes to the best term insurance in India, riders play a significant role in enhancing the coverage and customization of your policy. Riders are add-on benefits that offer additional protection beyond the basic coverage of a term insurance plan. Best term insurance plan in India allow you to include following riders in your base plan to enhance the policy 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 Benefit: 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 Rider: In this rider, you will receive an extra amount on the diagnosis of a critical illness listed under the rider to deal with the treatment expenses.

  • Hospicare Benefit: By including this rider, you will receive a percentage of the sum assured to take care of the hospital bills and medical costs.

  • Accidental Total and Permanent Disability: With this rider, you will receive a percentage of the sum assured in case of accidental total permanent disability.

  • Terminal Illness Benefit: With this rider, in case the policyholder is diagnosed with a terminal illness, a part or the entire sum assured is paid to the policyholder in advance, which provides an early payout on terminal illness.

• Calculate The Premium Amount: After going through all the above-mentioned points, you must evaluate the premium required and purchase the best term insurance 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 From Policybazaar?

Here are a few reasons why you should the best term insurance plan in India from Policybazaar:

• Dedicated claim assistance to family for Free

• Lifetime discount upto 5% for buying term plan online

• Advisors available in your city

• Refund at a single click

• 100% recorded calls to reduce mis-selling

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

You can buy best term insurance plan in India online by following the below steps:

• Step 1: Go to Term Insurance

• 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 Plan in India- FAQs