Top 5 Best Term Insurance Plans in India

One of the basic requirements of financial planning is buying term insurance policy. Term Insurance is an insurance coverage provided to the policyholder for a specific time period. Term Insurance Plans provides the highest amount of life insurance coverage in the lowest cost. It is recommended to buy term plan as it provides financial support to the family in the absence of policyholder.

When it comes to buying term plan basic question that comes to our mind is which is best term insurance plan? It is very difficult to find out best term insurance plan. Almost every insurance company is offering term insurance policy. Premium, features, and conditions are also similar. It is very difficult to distinguish and find out best term insurance plan. If you are planning to purchase term insurance policy and searching for best term insurance plans in India. Here are Top 5 Best Term Insurance Plans in India.

best term insurance plans

Best Term Insurance Plans in India 2018

LIC e-Term – Online Term Insurance Plan

The first best term insurance plan is by LIC. The name of the plan is e-Term. e-Term is online term insurance plan. The key features of e-Term Plan are given below.

  • This plan is available through online route only.
  • It is pure term plan. It provides death benefit only and does not provide any other benefits on maturity.
  • The premium rate for non-smoker and female is low.
  • The policy can be continued until the age of 75 years.
  • No riders are offered in this policy.
  • All types of death coverage are provided by this plan including accidental death.
  • Minimum sum assured by this plan is 50 Lakh.

LIC is trusted and most popular brand and most of the people prefer LIC for insurance. e-Term is very good plan but a premium of this plan is high and this plan does not provide any benefit of rider.

ICICI Prudential iProtect Smart Term Plan

ICICI Prudential iProtect Smart Term plan is one of the best term insurance policy. This plan offers terminal illness benefits and also provide coverage for 34 critical illnesses. The key features and benefit of this plan are given below.

  • Options to select payout options from Life, Life Plus, and Life & health.
  • Inbuilt terminal illness and premium waiver benefit in case of permanent disability due to an accident.
  • Life stage protection benefit. One can increase life coverage during policy tenure.
  • This plan covers a wide range of critical illness.
  • The death due to suicide is also covered under this plan.
  • Minimum sum assured under this plan is 8 Lakh.

Looking at multiple benefits offered by iProtect it is rated as one of the best term insurance plans.

HDFC Click 2 Protect 3D Plus Term plan

HDFC Click 2 Protect 3D Plus is online term plan that covers 3 uncertainty of life namely death, disability, and disease. This plan also provides 9 different options for the insurer. Key features and benefit detail of this plan are given below.

  • HDFC Click 2 Protect 3D Plus offers an additional coverage for disability and disease.
  • Customization of term plan with a selection of 9 different coverage options.
  • Life stage protection with increase coverage at an important stage of life.
  • Flexibility to increase coverage via top up.
  • Low premium rates for female lives and non-tobacco users.
  • This term plan provides comprehensive coverage and premium waiver benefit on diagnosis of critical illness.

Max Life Online Term Plan Plus

Max Life Online Term plan is next choice of the best term insurance plans. The unique feature of this plan is increasing monthly income along with basic life coverage.  This plan also provides coverage against 40 critical illness and accident death and disability. Key features of this term plan are given below.

  • Max Life Online term plan provides one-time payout and an additional monthly income for the nominee for 10 years.
  • Premium payment is up to 60 years and coverage is up to 85 years.
  • This plan provides facility to increase coverage at a later stage.
  • Additional rider is provided under this plan.
  • This plan is also offered to NRI in the selected countries.

 SBI Life eShield

SBI Life is a well-known name in the insurance sector. eShiled Term plan provided by SBI is next in the list of best term insurance plan. It is pure term plan. It is affordable term plan with inbuilt terminal illness benefit. Key features of this plan are given below.

  • SBI eShield offers an option to select a benefit from life cover and an increasing cover.
  • This plan offers inbuilt accelerated terminal illness benefit and two rider options for complete coverage.
  • Discount on premiums for non-smokers
  • Two rider options to provide comprehensive coverage
  • Maximum coverage up to 75 years

best term insurance

Factor to consider for selecting Best Term Insurance Plan

Affordable Pricing

The term plan you are purchasing should not cost you additional money. You should compare various term plan available in the market. You can make use of free comparison tools available online.

Features

The second factor for consideration is features offered by plan matching with your need. You should study plan carefully to find out features offered by the plan. If additional riders offered by a plan is not required, you should remove that. This will help to reduce insurance premium.

Maximum Coverage

Another important factor for the selection is maximum coverage. A plan should be capable of providing higher coverage. A coverage up to 75 years is recommended.

Provide complete information

You should provide complete information to term insurance company while buying a term plan. The company has rights to reject the claim in case they found any mismatch in the information provided.

Split Term Insurance

It is very good idea to split term insurance and purchase two different policies instead of buying a single policy. This will help you to divide risk.

Stay away from riders

Accidental benefit riders and critical illness rider will cost extra money. It is recommended to stay away from riders to save cost.

Conclusion –

There are several good term insurance plans in India. You need to select a best term insurance plan based on your requirement. You can consider a list of top 5 best term insurance plan while making a selection.

If you have any query about a selection of best term insurance plan feel free to post it in the comment section.

The Author

Raviraj Parekh

Raviraj is the man behind moneyalpha.com. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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