Best Term Insurance Plans
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Best Term Insurance Plans

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.

Best 6 Term Insurance Plans in India of 2020

Sr. No.

Company Name

Term Insurance Plans

Entry Age

(years)

Maximum Maturity Age

(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

Subject to the minimum premium

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

85, the whole of life

10,000

99.04%

5.

Max Life

Max Life Smart Term Plan

18-44/65

75, 85

10 Lakhs

98.74%

6.

Edelweiss Tokio

Edelweiss Tokio Life - My Term+

10-65

85

25 lakhs

95.82%

**Last Updated on 21-12-2020

*The claim settlement ratio is taken from IRDA's Annual Report 2018-19.

Details of Top 6 Term Insurance Plans - Watch Video

1. LIC Tech Term Insurance Plan

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...

Features and Benefits:

  • Premiums paid every year is applicable for deduction from the taxable income under the Income Tax Act, 1961.
  • Non-Resident Indians (NRIs) will be covered under the plan even if they are not in the country but should be present in the country for the medical tests.
  • Free look period is provided by the company. The policyholder can return the policy (in that duration) if (s)he is not satisfied by its clauses.
  • You can avail of the plan through an online application process and no intermediaries will be involved.

2. ICICI Prudential iProtect Smart Term Plan

It is an effective term insurance policy that offers 360-degree coverage at an affordable premium. Know More...

Features and Benefits:

  • Female policyholders will get extensive coverage for cervical and breast cancer under the Accelerated Critical Illness Benefit.
  • Under the plan, a policyholder has the option to choose accidental death benefit and accelerated critical illness benefit.
  • The surrender value is only applicable for a single premium.
  • A policyholder is also eligible to avail of tax benefits on premiums paid.

3. SBI Life eShield

It is a non-linked and non-participating insurance plan, which offers high coverage at minimal premiums. Know More...

Features and Benefits:

  • The plan offers 30 days to review the terms and conditions of the policy.
  • Under the Income Tax Act, 1961, you can enjoy tax exemptions on the regularly paid premiums.
  • SBI Life eShield offers 2 plan options- Increasing Cover and Level Cover. Accelerated terminal illness benefit is an inbuilt benefit for both the structures. If you decide to go with increasing cover, your sum assured amount will increase by 10% after every 5 years of the policy tenure.
  • The plan offers an option to enhance the coverage through the following riders: SBI Life - Accidental Death Benefit Rider & SBI Life - Accidental Total & Permanent Disability Benefit Rider.

4. HDFC Click 2 Protect 3D Plus Term Plan

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...

Features and Benefits:

  • If you are a female or non-smoker, you can grab the benefits of this plan at a low premium.
  • The plan offers the utmost flexibility to choose premium payouts, policy period, etc.
  • Regular premium payment in exchange for tax benefits is always an option, thanks to the Income Tax Act, 1961.
  • 9 plan options are available at your service. You can choose the ones to better suit your needs.

5. Max Life Smart Term Plan

It offers comprehensive protection to the policyholder against 40 critical illnesses, disability, death and offers complete financial protection to your family in your absence. Know More...

Features and Benefits:

  • You can enhance the cover by choosing optional riders such as accident cover, and accelerated critical illness cover by paying an additional premium.
  • The plan offers 7 variants of death benefits to choose from.
  • The plan offers multiple premium payment options that consist of limited pay, regular pay, and pay till 60.

6. Edelweiss Tokio Life - My Term+

It is an individual, non-linked and non-participating pure risk premium life insurance plan that offers coverage to you and your spouse with an added benefit of a limited premium payment term.

Features and Benefits:

  • The plan offers a waiver of premium benefit under which the policyholder doesn't need to pay the premiums if diagnosed with any one of the 12 listed critical illnesses.
  • The plan provides three death benefit payout options to choose from - Lump sum, Monthly Income, and a combination of the first two.
  • Under Section 80C and payout under Section 10(10D), premiums paid and benefits received from the policy are tax-free.

Which Factors Should Be Kept in Mind While Buying a Best Term Insurance Plan?

To buy term insurance, you need to do thorough research about the company and the plans they offer. Go through the brochure of the plan you want to invest in, and carefully read every single point.

Below are a few points that one should consider while purchasing a Term Insurance Plan online:

  • Claim Settlement Ratio: There is no point in 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. The higher the claim ratio, the higher are your chances to get a green signal for your claims.
  • Solvency Ratio: In simple words, the 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. And riders are known for that. Sadly, not all companies offer them to their customers. So, it's best to go with the insurance provider who provides additional rider(s) in its umbrella of protection.

How Can You Purchase a Term Insurance Plan?

Generally, there are two ways to buy a term insurance plan- Offline and Online. 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. However, this approach is time-consuming and that's why most people prefer to go with the online process.

To buy term insurance online, you have two options. Let's discuss both of them:

Through the Official Website of your Insurer:

  • Visit the official website of the insurance company you have chosen.
  • Select the term plan you want to buy.
  • Fill in all your details, and check the premium amount.
  • Pay the amount online. Your policy will be emailed to you on your registered e-mail id.

Through PolicyX.com

  • On the bottom of this page, click on the 'Buy Now' option under Instant Buy.
  • On the next page, select 'Term Plans.
  • Click on the plan you want to invest in.
  • Fill in all your details, and click on 'Proceed'.
  • Pay the premium amount online.
  • Once done, you will receive your policy details at your registered email address.

FAQ's

No, generally term insurance plans don't offer maturity benefits. However, there may be some insurance companies that would return the premium on the maturity of the plan.

Below is the list of documents that are required to purchase term insurance online:

  • Income Proof such as your salary slip or Form 16
  • Age Proof
  • Address Proof
  • Identity Proof
  • Photographs
  • Others requested by the company

The major exclusions are-

  • Suicidal death
  • Consumption of Alcohol or Drugs
  • Self-inflicted death
  • Death due to sexually transmitted diseases
  • Death due to involvement of adventurous or criminal activities
Naval Goel

Reviewed By: Naval Goel

Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.

Last updated on 21-12-2020