When you are planning to buy life insurance you have many options such as term plan, whole life insurance plan, endowment plan, etc. You need to select the insurance plan which is best suitable for your requirements. However, if you are the single breadwinner of your family you should go for a term plan. A term plan is a pure protection plan where an insurer provides sum assured to the nominee in case of the sad demise of the policyholder. There are multiple term insurance companies offering term plan. Many of them offer online term plan options. The premium amount in the case of online term plan is low compared to offline term plan.
In this post, I will share detail about what is term plan? , How to select Best Online Term Plan in India? and Top 5 Online Term Plan in India.
What is Term Plan?
Term Plan or term insurance plan is a pure life insurance plan that provides financial coverage to your loved once in your absence. In term plan claim is paid to nominee only in case of death of policyholder during the policy term. If the policyholder survives policy term no money/claim is payable. Along with life coverage, some insurance companies also provide coverage for partial or permanent disability.
Example of Online Term plan – Let’s say healthy non-smoker individual, with age 25 years opt for an online term plan with a sum assured of Rs.50 Lakh with maturity age up to 60 years. The annual policy premium will be fixed throughout the policy term. If the policyholder survives policy term nothing is payable. If the policyholder dies during policy term nominee will get a sum assured of Rs.50 Lakh.
Types of Term Plans
There are multiple types of term plans available in the market.
- Standard Term Plan – Standard Term Plan is a simple term plan where only death benefit is payable. No survival benefit offered under this policy.
- Increasing Term Insurance Plan – Increasing Term Insurance Plan similar to standard term plan with regard to premium payment and policy term. The only change is the sum assured (insurance coverage) increases with the age of the policyholder.
- Life Stage or Event Term Plan – Life stage or Event Term Plan allows policyholder to increase the coverage on your significant life stages.
- Convertible Term Plan – Convertible Term plan allows you to convert insurance policy to whole life, endowment plan any stage of policy.
- Joint Life Term Insurance Plan – The term insurance policy that covers you and your life partner jointly in the single insurance policy is known as Joint Life Term Insurance Plan.
- Online Term Plan – The term plan that is sold only in online mode is known as online term plan.
- Group Term insurance – The term insurance plan that is purchased for group of people by employees by employer is known as group term insurance plan.
How to Select Best Term Plan in India?
The insurance requirement of every individual is different. Here are few points that you must consider while selection of term plan.
Determine Insurance Coverage
The first thing you need to do before buying a Term Plan is to calculate the coverage you need. You need to consider multiple factor such as your age, your income, number of dependents, liabilities etc. Determine the total insurance amount required.
Assess Your Budget and needs
Next is assess your budget with respect to premium payable. Consider tif sum assured will be able to meet your family’s future requirements. If required use term insurance calculator.
Select Right Insurer
The next important step is to select a right insurer. There are multiple factors for making a selection of right insurer such as reputation of the insurance company, solvency ratio and claim settlement ratio.
Choose Best Term Insurance Plan
When it comes to making a selection of best term insurance plan you need to consider available features such as add on protection, support in case of disability, maximum maturity age, life time coverage, tax benefits, premium amount, maturity benefits, additional riders, premium waiver etc.
Top 5 Online Term Plans in India
#1 LIC Tech Term Plan
LIC Tech Term Plan is first in the list of best online term plan. It is pure term plan this means in case of death of policy holder during policy term nominee will get sum assured. If policy holder survives nothing is payable. This plan comes with two options level sum assured and increasing sum assured.
- LIC Tech Term Plan is pure term plan available online only.
- Minimum sum assured is 50 lakh and maximum coverage age is up to 80 years.
- Level sum assured and increasing sum assured options.
- Optional accidental rider available with plan.
- Different premium rate for women and non-smoker.
#2 ICICI Prudential iPortect Smart Term Plan
ICICI Prudential iProtect Smart Term Plan is next in the list of online term plan. This plan provides 360 degree coverage to policy holder life. In addition to life cover this plan also provide coverage against 34 critical illnesses.
- Payout option as lump sum, increasing income and income option.
- Maximum coverage up to 75 years of age and minimum sum assured is 8 Lakh.
- The plan covers wide range of critical illnesses.
- Add on accidental rider is available at the later stage.
- This plan offers terminal illness benefit.
#3 HDFC Click 2 Protect 3D Plus Term Plan
HDFC Click 2 Protect 3D plus is unique term plan available in the market. This plan provides 3D coverage against death, disability and disease to the policy holder. It is one of the best online term plan available in the market.
- HDFC Click 2 Protect 3D Plus provides 9 different options for the coverage.
- Life stage protection feature to increase insurance coverage.
- Top up option to increase coverage at every year.
- Life coverage up to maximum age of 65 years with minimum sum assured of 10 Lakh.
- Premium waiver for the diagnosis of critical illness.
- Low premium rate for non-tobacco customers.
#4 Max Life Online Term Plan Plus
Max Life is next in the list of best online term plan available in the market. This plan provide complete life coverage and option of increasing monthly income to your family. This plan also offers additional riders.
- Max Life Online Term plan provide maximum coverage up to 85 years of age.
- Minimum sum assured is 25 Lakh.
- Option for increasing coverage at important life stages.
- Additional riders are available.
- This plan also offered to NRI in the selected countries.
#5 SBI Life eShield
SBI Life eShield is popular term plan available online. SBI Life eShield offers wide range of coverage at lower premium rates. You can get option of life cover and increasing cover in this plan.
- SBI Life eShield provide maximum coverage up to 75 years of age.
- You can get life coverage and increasing coverage in this plan.
- Lower premium rate for the non-smoker.
- This plan offers terminal rider benefits to the policy holder.
- Minimum sum assured in SBI Life eShield is 35 lakhs.
Over to you –
The term plan list given above are some of the best term plans available in the market. The selection of above plans is done based on features and premium rates.
Make sure to go through terms and condition and features before buying a term plan.