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So you have finally decided to purchase a term insurance policy. Your next action plan should include finalizing the best term insurance plan in India. An accurate term insurance plan should have some basic features like it should belong to a well-reputed insurance provider so that you have the best of customer services, appropriate coverage for your family, a good enough policy tenure, affordable premiums, options to customize the policy via riders, option to receive back the premiums if you do not pass away, premium payment term options, death benefit payout options, and some additional inbuilt benefits so that you can make the most of your term plan.
We know that term insurance is bought by someone who wants to financially support their family after their demise. Since the buyer of the policy will not be present when it comes into action, it becomes very important to choose the best term plan in India. Let us discuss how to do that in detail with this article.
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Following are some of the top term insurance plans in India in 2023. These are classified on the basis of CSR of their respective companies, their specifications, and some amazing features that they offer.
Insurance Providers | Best Term Plans | Claim Settlement Ratio (CSR) | Entry Age |
ICICI Prudential Life Insurance | ICICI Pru iProtect Smart | 97.82% | 18 to 65 years |
HDFC Life Insurance | HDFC Life Click 2 Protect Super | 98.66% | 18 to 65 years |
PNB Metlife India Insurance | Mera Term Plan Plus | 97.33% | 18 to 60 years |
TATA AIA Life Insurance | TATA AIA Sampoorna Raksha Supreme | 98.53% | 18 to 65 years |
Bajaj Allianz Life Insurance | Bajaj Allianz Life eTouch Plan | 99.02% | 18 to 65 years |
Max Life Insurance | Max Life Smart Secure Plus Plan | 99.34% | 18 to 65 years |
Canara HSBC OBC Life Insurance | iSelect Smart 360 Term Plan | 98.44% | 18 to 65 years |
Kotak Mahindra Life Insurance | Kotak e-Term Plan | 98.82% | 18 to 65 years |
Edelweiss Tokio Life Insurance | Zindagi Protect Plan | 98.09% | 18 to 65 years |
Aegon Life Insurance | Aegon Life iTerm Prime | 99.03% | 18 to 65 years |
Term insurance is the simplest form of life insurance that offers coverage to the policyholders. But when it comes to buying a term insurance plan, choosing the right one that best fits your budget can be a hassle. Here, we've listed the IRDAI-Approved 10 best-term insurance plans in India provided by top term life insurance companies.
Choose Term Insurance Coverage of Your Choice
There are a few steps that you should follow to find a term plan that suits you the best. Follow the given steps and you will be able to narrow down an accurate plan for you.
Look at the CSR of the company (should be more than 97%), solvency ratio of more than 1.5, product portfolio and company reviews.
Consider monthly expenses of family, your liabilities, and milestones such as children's marriage and higher studies. Go for coverage of 15-20 times your annual income.
Choose whole life coverage if buying young for low premiums. Retirement age and loans should lie in the policy tenure for smooth repayment.
If you might suffer from a critical illness or terminal illness or if you have a risky job, add riders to your plan for extra benefits.
A costly plan doesn't mean a good plan. Buy sufficient coverage and add riders only those you feel are necessary and choose premiums under your budget.
Apart from riders, some of the best term plans in India offer a plethora of benefits that make them more holistic for the customers. All of these benefits should be looked out for when purchasing a term insurance policy for maximum benefits.
For e.g., if the decreasing rate of your term plan is 5%, every year the 5% of the sum assured will be reduced. This also means that as your policy comes to an end, your loan will be paid off too.
Riders make your term plan more wholesome and mold it according to you. Term plans come with 6 types of riders which include:
offers a lump sum payout when any of the listed critical illnesses in the policy is diagnosed.
offers a lump sum payout on the diagnosis of any of the listed terminal illnesses in the policy. The payout is paid after the policyholder outlives the surviving period of 30 days.
offers an extra death benefit if the policyholder dies due to an accident.
If the policyholder incurs a permanent disability due to an accident, this rider waives off the premiums of his term insurance policy after 180 days.
the coverage of your term insurance policy increases every year up to a fixed percentage whereas your premiums remain fixed.
when added to a base term plan waives the premiums of the policyholder if he goes through a disability. This too happens after 180 days.
Term insurance plan premiums are calculated by carefully considering some aspects such as
Given below are some of the sample premiums that a 30-year-old male has to pay for a policy bought for 30 years with a sum assured of 50 lakhs, 1 crore, 3 crores, and 5 crores.
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 50 lacs | 509 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 1 Crore | 908 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 3 Crore | 2,131 |
Age | Policy Term | Coverage Amount | Monthly Premium (INR) |
30/Male | 30 | 5 Crore | 3,502 |
Check Your Premium
Following are the documents that you need to submit to the insurance company while buying a term plan are:
There are a number of mistakes that you should avoid when you purchase the best term insurance for yourself:
Always make sure to provide actual information to your insurer. The non-disclosure of your pre-existing diseases, not providing authentic proof of income, or any other documents, hiding your habits, or holding any other important information can straightaway lead to claim rejection. And since you will not be there to take care of the hassles then, it will directly impact the survival of your family.
Estimate very carefully how the medical costs, daily expenditures, and inflation in general are rising. The sum assured that you are choosing is not for the current time, it is meant to be for the future so it should match the needs of the future as well.
If you are healthy, have low liabilities, and do not have many children or dependents then you do not need to buy a very high sum assured term policy for yourself. Just buying sufficient coverage with a return of premium benefit would be enough.
It is very important that you research well before deciding on the best term insurance plan for yourself. Talk to people who already have a term plan, talk to insurance agents like those at PolicyX, read reviews online, and then only come to a decision.
Sometimes, the insurance providers can offer you some too-good-to-be-trusted deals. This might include the promise of a very high sum assured policy at very nominal prices, they might promise that they will not take any medical tests before the policy and will provide you with exclusive value-added benefits. Do not fall for such promises and trust your instincts well. Usually, when you feel that something is off with a deal, it usually is a scam.
Term insurance premiums are very competitive, There are many plans that come at very low prices. This does not mean that you should only consider these lower premiums and buy a policy which does not cover you well. Find a middle ground between sufficient coverage and budget-friendly premiums.
CSR is an extremely important aspect to consider when buying the best term life insurance policy. A good CSR is equally proportional to the on-time, fast claim filing by the insurer. Always consider a term insurance provider who has a CSR higher than 95% for an actually safe future of your family.
Lastly, do not delay the purchase of a term insurance policy just because it takes a lot of effort to find. Delaying this purchase will only lead to higher premiums in the long run. So, follow the steps given on this page, and you will be able to find an accurate policy for yourself.
Finding a good term insurance policy can require some effort but, once insured accurately you can rely on the policy to provide for your family in your absence. A term insurance policy comes into the picture when you are gone and therefore it becomes absolutely necessary specifically in this case that you buy the right plan. Take your time when you decide on one and follow the steps given on this page for assistance. For further information, you can always contact PolicyX and they will help you find the best plan.
The top term plans in India based on CSR and their offered features are:
Choose a term plan by considering the best term insurance providers in India on the basis of CSR, estimate your accurate coverage, choose the number of years you would like coverage for, look inbuilt benefits and riders that might customize your coverage.
It is not necessary that an expensive term plan is best for you. You can choose an accurate coverage for yourself by comparing different plans and pay affordable premiums for it.
Not all term plans come with maturity benefits. Only Term Return of Premium plans offer maturity benefit. There are many other good term plans available that do not come with Return of Premiums benefit and yet are considered as good options.
No, add riders only when you require them. Riders make the term policy more buyer exclusive. So, you can only add riders if you want coverage for specific situations.
The coverage of your term plan should lie anywhere between 15-20 times of your annual income. Any plan that offers this coverage should be considered by you for buying.
Yes, all term insurance plans come with tax benefits under section 80C of the Income Tax Act for up to 1.5 lakhs per annum.
Some of the factors that make a term plan good are trustworthy insurance providers, death benefit payout options, affordable premiums, options for choosing policy tenure, sum assured options, and quick claim settling ability of the insurer.
Smokers do get to buy term insurance plans of their choice. They just pay higher premiums as compared to non-smokers.
People with diabetes are usually considered as high risk individuals so not many insurers offer term plans to them. But, you can buy a term plan for Diabetes offered by Bajaj Allianz Life known as Bajaj Allianz Life Diabetic Term Plan Sub 8 HbA1c.
Many term insurers offer housewives term insurance plans based on the annual income of the husband. You can buy term plans for housewives from Max Life Insurance Company, ICICI Prudential Life Insurance Company, and PNB Life Insurance Company.
Eligibility is based on annual income
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Priya has been in the content writing industry for over 8 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.
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