Term insurance refers to being a strong and much required financial tool that provides helpful financial assistance to your family in your absence. It allows your family to live independently and maintain their living standards. It also assists in dealing with all liabilities so they never feel the burden. The plan offers coverage against the risk of death, disability, and disease.
In India, around 24 insurance companies are offering online Term Insurance Plans. Hence, it is difficult to choose the best among all for the secure future of our loved ones.
To ease your worries, we have listed the top 6 term insurance plans of 2020 which are highly effective and can help you during hard times. The data available is updated as per the latest plans (IRDA 2018-19 report) with complete details.
|Sr. No.||Term Insurance Plans||Policy Term||Coverage||Sum assured||Claim Settlement Ratio 2018-19||Add-on Covers|
|1.||LIC Tech Term||10-40 years||65 years||50 Lakhs||97.79||Available|
|2.||ICICI Prudential iProtect Smart Term Plan||5-85 years (less age an entry)||75 years||8 Lakhs||98.58%||Available|
|3.||SBI Life eShield||5-30 years||75 years||35 Lakhs||95.03||Available|
|4.||HDFC Click 2 Protect 3D Plus Term Plan||5-40 years||65 years||10 Lakhs||99.04||Available|
|5.||Max Life Online Term Plan Plus||10-35 years||85 years||25 Lakhs||98.74||Available|
|6.||Aegon Religare iTerm Plan||5-40 years (or up to 80 Years)||100 years||25 Lakhs||96.45%||Available|
Below is the detailed explanation of all 6 term insurance plans.
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. You can easily avail of the required plan through an online application process and no intermediaries will be involved.
Features and Benefits
iProtect Smart by ICICI Prudential is an effective term insurance policy that offers 360-degree coverage at an affordable premium. It also allows you to file a claim against 34 critical illness diseases. It is also rated as one of the best term insurance plans of 2018-19 because of its attractive features.
Features and Benefits
Different iProtect Smart Term Plans
|Life and Health|
|All In One|
1) Death and Terminal Illness
The life cover amount will be provided only in case of death and terminal illness of the policyholder to the nominee(s). If diagnosed with a terminal illness, a 100% cash payout of the total life cover will be given.
The policy will terminate on payment of either the death benefit or terminal illness. Terminal illness refers to high-risk death within the next 6 months as diagnosed by medical practitioners.
2) Permanent Disability
If the policyholder is diagnosed with permanent disabilities due to an accident, he/she will not have to pay the future premiums. The policy will continue normally.
3) Accidental Death (optional)
In case of death due to an accident, the nominee(s) will get a lump sum amount in the form of an accident cover under the plan.
4) Critical Illness (optional)
If the policyholder diagnosed with critical illness with any of the 34 listed diseases, he/she will receive a lump sum payout for the treatment.
State Bank of India, the trusted brand in the industry of banking and finance offers SBI Life eShield; one of the purest term insurance policies that offer a wide range of benefits at an affordable premium.
Features and Benefits
HDFC Click 2 Protect 3D Plus Term Plan is an exclusive term insurance policy that covers three uncertainties i.e. death, disability, and disease. It is an effective yet affordable Term Insurance policy.
I. Death Benefit:
In the event of the death of the policyholder when the policy is in force, the nominee(s) shall get the benefits as follows:
II. Life Stage Protection:
It is an alternative cover that is applicable under the life option of the policy and can be purchased by paying an additional premium. This cover provides financial assistance to the policyholder throughout life.
III. Increase Your Sum Assured:
The coverage for insurance can be increased anytime.
IV. Reduce Additional Cover (Later Stage):
The policy provides an option to minimize the Additional Insurance Cover after the age of 45 years of the policyholder.
V. Maturity Benefit:
No amount will be paid to the beneficiary(s) if the policyholder will survive till the last date of the end of the policy tenure.
VI. Income Tax Benefit:
The premium that is payable up to Rs.1.5 lakhs is only applicable for deduction from Income Tax under Section 80C. Premiums paid below this amount will be tax-free.
Max Life Online Term Insurance is the next plan in the bucket of top term insurance policies of India. It offers the required basic life cover along with the increased monthly income options for your family in your absence. The company also carries good claim settlement ratios of 98.74%.
Features and Benefits
Aegon Religare iTerm Plan is the most affordable yet effective pure term insurance plan that provides a lump-sum payment and regular income to the family in the event of the death of the policyholder excluding any maturity benefit. The company carries a good claim settlement ratio of 96.45% which is attracting many consumers.
Features and Benefits
Like other investment options, term insurance holds a bunch of features that will help your family in the long run and provide a secured future. Before taking any final decision, it is important to understand all such features.
Comprehensive Cover: The plan offers a comprehensive cover to secure the future of your family, assist them in attaining financial goals and deal with all liabilities. It is a complete package at a nominal cost.
Assured Returns: Unlike other plans, term insurance offers assured returns in the hour of need and will be ready with the required financial support for your family. It will never let your family suffer in your absence.
Lifetime Cover: As an average lifespan of a human is 75 years, term insurance will definitely cover you for the same. Also, there are a few plans which offer cover till the lifetime. Under a few insurance plans, the entire amount is refunded upon maturity.
Minimum Investment: Term insurance starts at just Rs.10/day or less also. All plans are available at such low cost which makes it one of the cheapest investment options. By investing around 3 to 5% of your earnings, the returns will be around 25 to 30%.
Sum Insured: Sum insured is the amount that your nominee will receive at the time of maturity. You can easily get the coverage up to Rs.25 crores and more. You can also go for a customized plan as per your financial requirements.
Customized Riders: Like many other plans, term insurance also comes out with multiple add-on covers that you can avail at nominal additional cost to boost the basic cover. There are many options of add-on covers such as personal accident cover, critical illness, waiver of premium and much more.
Claim Benefit: You are allowed to choose the claim amount in a lump sum or in monthly installments (as per your convenience). Under a few plans, the monthly income might keep on increasing at a rate of 4% every year.
With the growing inflation rate, it has become a necessity to add an adequate term insurance plan. To secure the future of your loved ones, a person should go for the best term insurance plan. There is no doubt in saying that everyone wants to secure their loved ones and provide a secure future to them. With term insurance, your family would be strong enough to deal with all financial crises in case of the demise of the insured. By making an investment in term insurance at an early age, you will feel relaxed and happy. With the same, your family would be able to deal with all financial liability and daily expenses in your absence as well. That’s why experts in the industry also suggest investing in term insurance plans at a young age. Other benefits of term insurance are listed below:-
Attain Financial Goals: You may be working on a few goals ranging from owning your house, child’s education, marriage and much more. But in case of any unfortunate incident or your demise, who will fulfill such dreams of yours and how your family would be able to attain such goals. Term insurance will be able to do the same and assist your family in fulfilling such dreams on your behalf.
Safety At Pocket-Friendly Prices: Unlike other investment plans, term insurance doesn't charge a huge amount. It offers the required financial cover at a nominal cost which makes it the best insurance plan for complete protection.
Claim Settlement Ratio (CSR) is a numerical figure to determine the authenticity of an insurance company related to claims. It is calculated by using the simple formula shown below:
CSR = (Total number of claims paid during the time period)/(Total claims received)
For example, an insurer receives 1000 claims in a year, out of which 966 have been settled, 13 claims are pending for settlement and 21 claims have been rejected. Using the formula mentioned above, the insurance company has a CSR of 96.6%.
This Ratio is a significant indicator, specifically for Life Insurance (Term Insurance) plans. In the case of a claim for the death of an individual, the family wouldn’t be worried about how lengthy and problematic the process would be. The premium paid, insurance cover received, are all crucial indicators to choose a plan, but CSR should not be ignored. On an occasion when a claim is to be settled, you may have to suffer if you have chosen an insurance provider that has a CSR of less than 60%. You can collect the data by visiting IRDAI’s website or simply click at IRDAI Claim Settelment Report 2018-2019.
Let us see the IRDA Claim Settlement Ratio 2018-19 i.e.
|S.No.||Life Insurer||Claim Settlement Ratio 2018-19 (%)|
|1||TATA AIA Life Insurance||99.07%|
|2||HDFC Standard Life||99.04%|
|4||ICICI Prudential Life Insurance||98.58%|
|5||LIC of India||97.79%|
|6||Bharti AXA Life||97.28%|
|8||Aditya Birla Sunlife Insurance||97.15%|
|9||Reliance Nippon Life Insurance||97.71%|
|10||Kotak Life Life Insurance||97.40%|
|12||Aegon Religare Life Insurance||96.45%|
|13||Aviva Life Life Insurance||96.06%|
|14||Star Union Life Insurance||96.74%|
|15||Pnb Metlife Insurance||96.21%|
|17||Edelweiss Tokio Life Insurance||95.82%|
|18||Future Generali Life Insurance||95.16%|
|19||Bajaj Allianz Life Insurance||95.01%|
|20||IDBI Federal Life Insurance||95.79%|
|21||Canara HSBC OBC Life Insurance||94.02%|
|22||India First Life Insurance||92.82%|
|23||Sahara Life Insurance||90.16%|
|24||Shriram Life Insurance||85.30%|
They offer the required financial assistance to your family in case of an unfortunate situation that includes death, disability and much more. In the case of the policyholder’s disability or critical illness, this policy offers a lump sum amount to assist the family financially. Additional sum insured is offered in case of the accidental death benefit. It also helps through the benefit received in paying off loans/debts that might have been taken during the lifetime of an individual.
Investing in a term insurance plan should always be in your priority list. An adequate term insurance plan will assist your family in living a stable life in your absence. With the above-stated information, the whole process of choosing the best term insurance plan has become easier for you. Invest in the best term insurance plan for your loved ones today.
No, it is not necessary that you will get riders along with every Term Insurance Plan. It can vary according to the insurer and plans as well. A few of them might offer the same separately and a few may take care of the riders in the plan itself.
Yes, you are liable to purchase more than 1 Term Insurance policy.
In the case where you want to opt for a high Sum Assured, you have to talk to the insurance company and ask them about it. They carry a different process and first will rectify your details before proceeding further.
Yes, if you are an NRI, then also you can easily invest in a Term Insurance Plan. You can also get an exclusive plan for yourself.
You can cancel the policy by informing the insurance company within 15 days of the policy being issued.
The following documents are required to buy Term Insurance:
Proof of age
Proof of residence
Photo identity proof
No, policyholders are not eligible for loans as the policy doesn’t come with maturity benefits, nor does it attain surrender value.
Yes, Term Insurance Plan also carries a free-look period of 15 days from the day you receive the policy document. If you cancel the policy in between this period then your amount will be refunded after specific deductions.
The policies related to late payment fee may differ from insurer to insurer, but if you make the payment within the grace period then no interest is charged on the payment.
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Last updated on 08-01-2020