Which are Best Term Insurance Plans in India? How to compare term insurance plans in India? These are some common questions asked by many people. The confusion for the selection of best term insurance plan is but natural. There are many insurance companies in India. All of them offers term plans with similar features. Hence, it becomes difficult to shortlist “BEST” among them. This post will help you in making selection of Best Term Insurance Plans in India.
What is a Term Insurance Plan?
Term Insurance Plan is one type of Life Insurance Policy. Term insurance plan provides real financial protection to the family of policy holder. In term plan if death of policyholder occurs during the policy period, then his/her nominee will receive the Sum Assured. If policyholder survives till the end of policy period, then he/she will not receive any maturity amount.
Term plan policy is less costly compared to traditional insurance policies. You can get large amount of risk coverage by paying very low premium. Anyone who has financial dependent must purchase term insurance policy.
Few Points to Consider for the selection of term insurance
The most important thing to do before buying a term plan is to calculate the coverage you need. You will have to take into account multiple factors such as your age, dependents and your income.
Assess your Need
While evaluating the available options, consider whether the sum assured will be able to meet your family’s future requirements. Check for premium amount payable for the policy.
Credibility of Insurance Company
You should also check for the credibility of insurance company. The company should be in this business for at least five years and above.
Another important factor to consider is policy premium. You should compare policies before taking purchase decision. It is advisable to go for online term plan.
Claim Settlement Ratio
Claim Settlement Ratio is one of the vital factor for the shortlisting of term insurance policy. You should select a term insurance company with history of good claim settlement ratio.
It is recommended to go for online term plan option, as it gives advantage of lower premium rate and convenience.
The best term insurance plan is one which gives over all coverage. An additional rider is an extra to the essential plan that offers advantages beyond the policy.
Top 5 Best Term insurance Plans in India 2019
Here are Top 5 Best Term Insurance Plans in India 2019 along with key features list.
#1 LIC e-Term Insurance Plan
LIC is most popular and a trusted insurance company in India. One of the best term insurance plans from LIC is e-Term. It is online term insurance plan. The key features and eligibility condition for e-Term insurance plan are given below.
- This plan can be purchased only via online route.
- It is pure term plan which means that it only provides death benefits and do not offer any other benefit on maturity.
- This plan covers all types of death including accidental death.
- The e-term policy does not offer any riders.
- Loans cannot be given against this policy.
- Minimum Policy term is 10 years and a maximum is 35 years.
- This plan provides coverage up to 75 years of age.
- Minimum sum assured under this plan for the non-smoking category is 50 Lakh.
A trusted brand and high claim settlement ratio of LIC are plus points about this plan. On the other hand, premium amount of this policy is very high and this plan does not offer any riders.
#2 ICICI Prudential iProtect Smart Term Plan
ICICI Prudential iProtect Smart is a Term Plan that provides 360-degree coverage to your life at very reasonable cost. This plan also offers claim payment on diagnosis of 34 critical illnesses. The key features and benefit of this plan are given below.
- You have options to select payout for a nominee from lump sum, Income, and increasing income.
- This plan offers terminal illness benefit. This means you will be paid for detection of critical illness.
- It gives you the option to add accidental benefit at the later stage.
- This plan covers a wide range of critical illness.
- The death due to suicide is also covered under this plan.
- Minimum Policy term is 10 years and a maximum is 30 years.
- Minimum sum assured under this plan is 8 Lakh.
Looking at attractive features and benefits, I have rated this plan as one of the best term insurance plans for 2018-2019.
#3 HDFC Click 2 Protect 3D Plus Term Plan
HDFC Click 2 Protect 3D Plus Term Plan is unique and best term insurance plans that provide coverage against three uncertainties death, disability and disease. This plan is offered by HDFC. Key features and benefit detail of this plan are given below.
- HDFC Click 2 Protect 3D Plus offers 9 different options for the coverage.
- This plan offers life stage protection feature to increase insurance coverage on certain key milestone without medical.
- It also offers top-up option to increase coverage every year.
- This plan offers attractive premium rates for female lives and non-tobacco users.
- This term plan provides comprehensive coverage and premium waiver benefit on diagnosis of critical illness.
- Minimum Policy term of this plan is 5 years and a maximum is 40 years.
#4 Max Life Online Term Plan Plus
Max Life Online Term Insurance Plan is next in the list of best term insurance plans in India. This plan offers basic life cover along with increasing monthly income to your family in your absence. Key features and benefit detail of this plan are given below.
- Max Life Online Term Plan Plus offers one-time payout to nominee along with increasing monthly income for 10 years.
- You can maximize plan benefit by opting for additional riders.
- This plan gives the option to increase coverage at important milestones.
- The Minimum policy term of this plan is 10 years and a maximum is 35 years.
- This plan provides maximum coverage up to age 85 Years.
- This plan is also offered to NRI in the selected countries.
High claim settlement ratio, increasing monthly income to nominee and coverage up to maximum age 85 years are plus points for this plan.
#5 SBI Life eShield
SBI Life eShield is one of the best term insurance plans offered by SBI Life. eShield is pure term plan. eShield offers a wide range of benefits at an affordable premium. 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 cover.
- This plan offers a discount on the premium for a non-smoker.
- The Minimum policy term of this plan is 5 years and a maximum is 30 years.
- This plan provide a maximum coverage up to age 75 Years.
Over to you –
The Best Term Insurance Plans given above is based on few selection criteria. If you are planning purchase term plan you should compare all policies side by side on premium, coverage, additional benefit and claim settlement ratio. This will help you to take an informed decision.
If you are looking for help in the selection of right term plan, you can post your query in the comment section given below.