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.

Needless to say, the Indian insurance market is full of term plan providers, which often makes it difficult to buy the best term insurance plan. To ease your worries, below is a list of the top 20 term insurance plans of 2021, which are highly effective and can help your family during hard times.

Read along to know more about these plans:

**Last Updated on January, 2021

Details of Best 20 Term Insurance Plans of 2021

1. Aegon Life iTerm plan

   Aegon Life iTerm plan is a non-linked non-participating life insurance plan that offers life coverage until the age of 100 years and comes with an inbuilt terminal illness benefit.

   Features:

   • The plan offers the flexibility to choose from three different plan options- Life Protect, Protect Plus, and Dual Protect.
   • One can choose the death benefit payout as a lump sum, fixed monthly income for 100 months, or a combination of the above.

2. Aviva LifeShield Advantage

   Aviva LifeShield Advantage Plan is a comprehensive term insurance plan that safeguards the policyholder's family members against financial crisis due to his/her unfortunate death.

   Features:

   • The plan offers the flexibility to choose from two categories of protection- Life protection and Life-cum-disability protection along with Return of Premiums.
   • The total premiums paid by the policyholder are returned at the maturity of the policy.

3. Aditya Birla Sun Life Shield

   With 8 different plan options, Aditya Birla Sun Life Shield makes sure to fulfill the financial needs of all its customers.

   Features:

   • The plan offers joint life protection, where you and your spouse get coverage under the same policy.
   • The plan offers enhanced life stage protection, through which one can avail of additional cover during key stages of life like marriage, childbirth, etc.

4. Bajaj Allianz Life Smart Protect Goal

   Bajaj Allianz Life Smart Protect Goal is a non linked, pure life term insurance plan that comes with an encompassing life cover. For enhanced protection, the plan offers four add-on covers.

   Features:

   • Along with the protection cover, the plan offers coverage against 55 minor and major critical illnesses.
   • The add-ons available under the plan are: Accidental Death Benefit (ADB), Accidental Total Permanent Disability Benefit (ATPDB), Critical Illness Benefit (CIB), and Waiver of Premium Benefit.

5. Bharti AXA Life Flexi Term Plan

   Bharti AXA Life Flexi Term Plan is a flexible term insurance plan that offers financial protection to your family in case of your unfortunate demise.

   Features:

   • The plan offers the flexibility to choose from three different life cover payout options.
   • One can avail of critical illness cover at the age of 75, where comprehensive cover for 34 illnesses or major illnesses cover for 15 illnesses are provided.

6. Canara HSBC OBC iSelect Star Term Plan

   Canara HSBC OBC iSelect Star Term Plan offers the financial shield to your family against the uncertainties of life. You can also customize the plan as per your requirements.

   Features:

   • To achieve the different milestones of life, the plan offers an increasing life cover option.
   • Grab several discounts under the plan such as loyalty discounts, discounts on high sum assured or for female lives.

7. 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:

   • 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.
   • Under Section 80C and payout under Section 10(10D), premiums paid and benefits received from the policy are tax-free.

8. Exide Life Smart Term Edge

   Exide Life Smart Term Edge is a great term insurance plan that offers comprehensive protection to ensure that your family's future is financially secured in your absence.

   Features:

   • The plan is available in three variants-

     1. Classic

     2. Step-up

     3. Comprehensive

   • You can enhance the overall protection by adding riders at a nominal additional premium.

9. Future Generali Flexi Online Term Plan

   Future Generali Flexi Online Term Plan is a non-linked non-participating pure risk premium life insurance plan that offers you the flexibility to customize the plan as per your family's needs and requirements.

   Features:

   • The plan offers the flexibility to choose the death benefit payout- lump sum or monthly.
   • Lower premium rates for females and preferential premium rates for non-smokers.

10. HDFC Click 2 Protect 3D Plus Term Plan

    HDFC Click 2 Protect 3D Plus Term Plan is an exclusive term insurance policy that covers three uncertainties- death, disability, and disease. The plan offers financial protection to you and your family at an affordable cost.

    Features:

    • If you are a female or non-smoker, you can grab the benefits of this plan at a low premium.
    • 9 plan options are available at your service. You can choose the ones to better suit your needs.

11. ICICI Prudential iProtect Smart Term Plan

    ICICI Prudential iProtect Smart Term Plan is an effective term insurance policy that offers 360-degree coverage at an affordable premium. The plan, with the help of the Married Women's Property (MWP) Act, ensures that the insurance amount is given only to the policyholder's wife and/or children.

    Features:

    • Under the plan, a policyholder has the option to choose accidental death benefit and accelerated critical illness benefit.
    • Female policyholders will get extensive coverage for cervical and breast cancer under the Accelerated Critical Illness Benefit.

12. IDBI MyLife Protection

    IDBI MyLife Protection Plan is a non-linked, individual life pure risk premium plan that offers an extensive life cover at affordable premiums.

    Features:

    • The plan comes with a coverage booster feature under which the sum assured increases by 10% of Basic Sum Assured (up to a maximum of 150%) after every three years.
    • The plan comes with 3 premium payment options- Single Pay, Limited Pay, and Regular Pay.

13. IndiaFirst Life Guaranteed Protection Plan

    IndiaFirst Life Guaranteed Protection Plan is a comprehensive term insurance plan that makes sure your family continues to fulfill their dreams and aspirations even after your demise.

    Features:

    • Along with the death benefit, the plan also manages the expenses on the diagnosis of a terminal illness.
    • The plan provides a Return of Premium option, where the premiums paid by the policyholder are refunded upon survival till the end of the policy term.

14. Kotak Mahindra E-term

    Kotak Mahindra E-term plan is an individual non-linked pure protection life insurance plan that provides financial security to your family after your unfortunate demise.

    Features:

    • The plan offers three payout options to choose from: Immediate, Level Recurring, and Increasing Recurring.
    • The plan is available in 3 variants- Life, Life Plus, and Life Secure.

15. LIC Tech Term Insurance Plan

    LIC Tech Term Insurance Plan 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.

    Features:

    • 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.

16. Max Life Smart Term Plan

    Max Life Smart Term Plan offers comprehensive protection to the policyholder against 40 critical illnesses, disability, death and offers complete financial protection to your family in your absence.

    Features:

    • 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 multiple premium payment options that consist of limited pay, regular pay, and pay till 60.

17. PNB Metlife Mera Term Plan

    PNB Metlife Mera Term Plan, a pure protection plan, is an ideal way to protect the financial future of your family. The plan addresses your family's protection needs at an affordable cost.

    Features:

    • The plan gives you the flexibility to customize your protection needs and allows you to choose from four payout options:
    • Full Lump Sum Payout
    • Payout as Lump Sum + Regular Monthly Income
    • Payout as Lump Sum + Increasing Monthly Income
    • Payout as Lump Sum + Regular Monthly Income till child turns 21
    • The plan offers lower premium rates for non-smokers.

18. Pramerica Life TruShield

    Pramerica Life Tru Shield is a term insurance plan that safeguards your family's financial independence even in your absence.

    Features:

    • The plan offers flexibility to select from two death benefit options- Level Cover & Reducing Cover.
    • The plan offers the maturity benefits in the form of the return of premiums upon survival till the end of the policy term.

19. SBI Life eShield

    SBI Life eShield is a non-linked and non-participating insurance plan, which offers high coverage at minimal premiums and ensures that your family is financially protected.

    Features:

    • SBI Life eShield offers 2 plan options- Increasing Cover and Level Cover. Accelerated terminal illness benefit is an inbuilt benefit for both 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.

20. Tata AIA Maha Raksha Supreme

    Tata AIA Maha Raksha Supreme is a non-linked individual life insurance plan that comes with a wide range of choices and allows you to fulfill your family's financial needs after your unfortunate demise.

    Features:

    • The plan comes with an inbuilt payout accelerator benefit that gives 50% of Basic Sum Assured (in advance) if the policyholder is diagnosed with a terminal illness.
    • The plan offers discounted rates for female lives and standard premium rates for non-smokers.

Which Factors to Consider Before Choosing the Ideal Term Insurance Company and Plan?

Before finalizing your term insurance plan, you need to understand the product well and most importantly, do thorough research about the insurance company. Ignoring one of them may lead to unpleasant surprises and cause unnecessary confusion at the time of need.

Below are a few factors that one should keep in mind before choosing a term insurance company:

Reputation

The overall reputation of the company plays an important role while deciding your term plan. 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.

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.

Customer Service

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.

Factors one should keep in mind before choosing the ideal term plan:

Evaluate Your Needs

There is a common misconception that people have- only higher premium plans should be taken into consideration. That's not the truth. A plan with lower premium would not always prove to be useless for you. Consider your family's needs and requirements and then choose accordingly.

Details of The Plan

Check the features and benefits of the plans and see if they offer what you are looking for. Compare the benefits/features of the different providers along with their premium costs, and evaluate if they provide any additional benefits in the policy.

Riders

It's always better to get extra protection with riders. Therefore, before buying a plan, ensure that the plan you have chosen offers rider(s) under its umbrella of protection.

Premium Affordability

Before buying a term plan, ensure that you will be able to pay the premium amount charged. Determine how much you can commit to the plan on an annual basis (without burdening your pockets) and then finalize one.

Why is the Claim Settlement Ratio Important to Buy a Term Insurance Policy?

Claim Settlement Ratio can be defined as the number of claims cleared by the insurer (in a period of time) as compared to the number of claims raised.

Let's understand how the claim settlement ratio is calculated:

An insurance company has received 1000 claims in a financial year, out of which, 977 were settled, and the rest were rejected.

In such a scenario, the CSR (Claim Settlement Ratio) of the company will be 97.7% and the Claim Rejection Ratio will be: (1000 - 977)*100/1000 = 2.3%

Claim Settlement Ratio plays an important role at the time of choosing a term insurance provider. Buying a term plan because of its low cost and ignoring the fact that the company has a low claim settlement ratio can create a lot of problems for your dependents. Moreover, if you are the whole-sole breadwinner of your family, then the unsettled claim can come as a huge financial setback for your dependants.

According to Naval Goel (CEO of PolicyX.com), the claim settlement ratio is a very essential element of an insurance company and while choosing your ideal term plan, you must compare it and then make a decision.

Why Place Your Faith in PolicyX.com?

There are a few things about PolicyX.com that are worth mentioning. Such things help us attract more customers in the market. Here they are-

Trustworthy

PolicyX.com is an IRDAI approved platform, and we make sure that you get unbiased and accurate information.

Dedicated Customer Support

Have queries? No worries. Our customer care team is available for your assistance.

Compare & Buy

PolicyX.com allows you to compare all the plans and helps you to make a well-informed decision.

Securing your family's future financially with a term insurance plan is the best gift you can give to your loved ones. Consider the above factors, do your research, and select an ideal term plan as per your family's needs and requirements.