No one is invincible these days. With uncertainties like death, disease and disability around the corner, an individual needs to buy the best term insurance plan to secure the financial future of his/her dependents. In India, 24 insurance companies offer online term insurance plans. It is because of this number that you may feel confused about who to trust with the financial future of your family. To ease your worries, below is a list of top 6 term insurance plans of 2020 which are highly effective and can assist during hard times. These plans are sold by companies that have the best claim settlement ratio in the market as per IRDA 2018-19 report.
|Sr. No.||Company Name||Term Insurance Plans||Policy Term (years)||Coverage (years)||Minimum Sum Assured (Rs.)||Claim Settlement Ratio 2018-19*|
|1.||LIC of India||LIC Tech Term||18-65||80||50 Lakhs||97.79%|
|2.||ICICI Prudential Life||ICICI Prudential iProtect Smart Term Plan||18-65||85, 99||50 Lakhs||98.58%|
|3.||SBI Life||SBI Life eShield||18-60, 65||75, 80||35 Lakhs||95.03%|
|4.||HDFC Life||HDFC Click 2 Protect 3D Plus Term Plan||18,25-65||75, 85, whole of life||10 lakhs||99.07%|
|5.||Max Life||Max Life Online Term Plan Plus||18-60||85||25 Lakhs||99.22%|
|6.||Kotak Mahindra||Kotak e-term||5-75||Up to 40||25 lakhs||97.40%|
**Last Updated on 03-07-2020
*The claim settlement ratio is taken from IRDA's Annual Report 2018-19.
It is a non-linked pure protection plan that offers the required financial protection to the insured's family in case of his/her unfortunate demise. Know More...
It is an effective term insurance policy that offers 360-degree coverage at an affordable premium. Know More...
It is a non-linked and non-participating insurance plan which offers high coverage at minimal premiums. Know More...
It is an exclusive term insurance policy that covers three uncertainties- death, disability, and disease. It is designed to target the needs of women and children. Know More...
It helps your family to fight the 3 Ds of life- Disease, Death & Disability. It offers the required basic life cover along with the increased monthly income options for your family in your absence. Know More...
It is an affordable yet effective pure life insurance plan that provides a death benefit to the family/nominee in the event of the death of the policyholder.
Claim Settlement Ratio: There is no point of having insurance if your claims are rejected by the provider. So, checking and comparing the claim ratio of insurance providers should be the topmost priority. Higher the claim ratio, higher will be your chances to get a green signal for your claims.
Solvency Ratio: In simple words, solvency ratio dictates whether a provider is financially capable to handle your claim at the time of an emergency. According to IRDA, the solvency ratio of an insurance provider should be 150% to minimize bankruptcy. Anything less than that gives a clear sign that the company would fail to clear your claims.
Consider Your Needs: There is a common misconception that people have- only higher premium plans should be taken into consideration. That's not the truth. Of course, there are a few variations but a lower premium plan would not prove to be useless for you. To decide between the two, you should compare the benefits/features of the different providers along with their premium costs. If the selected plan matches your needs, it should be your choice among the lot.
Customer Service: Customer service has become an important part of the buying model. You should evaluate every provider's customer care department to get a better view of its after-sales service. After all, your queries will be entertained by them in the future.
Reputation: Apart from the above factors, the overall reputation of the company is important as well. You should take a look at the provider's government records, AUM and IRDA's rules violation (if any). It will give you a brief idea of which providers are playing by the book.
Additional Riders: It's always better to get extra protection. Riders are known for that. But not all companies offer them to their customers. So, it's recommended to go with the insurance provider who has listed additional rider(s) in its umbrella of protection.
Generally, there are two ways to buy a term insurance plan- offline and online methods. In the offline method, you can directly speak to the agent of the company (who comes to meet you) or visit the provider's branch office. This approach is time-consuming. Instead, you should prefer the online method. It's simple and convenient.
Just visit the official site of the insurance provider or log on to PolicyX.com. Both will allow you to purchase the plan in no time.
No, there are other factors along with claim settlement ratio which should be stressed upon before you choose a term plan. Those factors are explained in the above part of the write-up.
There are 24 insurance providers in the market. We have prepared the above list of 6 providers/plans based on the IRDA annual report and user interests. If none of the above suit your needs, you are free to consult with other 18 of them.
Yes, the provider can increase the premium amount or cancel the policy altogether.
Last updated on 03-07-2020