Best Term Insurance Plans to Secure your Family

Uncertainties can knock on our doors any time. To sustain through the unforeseen tough times, one must be prepared with a solid plan to secure the future of his/her family. The best gift you could offer to your loved ones is a secured future in your absence. And the best term insurance policy is the best option for you. A term insurance plan not only provides wider coverage but also offers ample other benefits. This type of insurance doesn't come with a survival benefit, however, it offers a fixed sum assured to the family of the policyholder in case of his/her demise.

What Is Term Insurance?

Term Insurance offers financial protection to the policyholder's family when he/she is no longer there with them. Term insurance plans are available with low-cost premiums, flexible options, and a multitude of additional benefits, allowing you to choose the best suitable plan to mitigate risks.

A policyholder needs to pay a premium for a definite period of time, which is calculated on the basis of age, the chosen sum assured, and the term of the policy.

Best Term Insurance Plans In India

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 10 term insurance plans of 2021, 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 the IRDAI 2019-20 report. Let's take a look.

Best 10 Term Insurance Plans in India of 2021

**Last Updated on May, 2021

Let's deep dive to know more about the plans.

1. LIC Tech Term Insurance Plan

   LIC Tech Term plan is a non-linked, non-participating online pure risk premium plan that offers the required financial protection to the insured's family in case of his/her unfortunate demise. The plan offers the flexibility to choose from two benefit options that are (a) Level Sum Assured and (b) Increasing Sum Assured.

   Features and Benefits:

   • You can avail of the plan through an online application process and no intermediaries will be involved.
   • A free look period of 30 days from the policy receipt date is provided by the company. The policyholder can return the policy (in that duration) if (s)he is not satisfied by its clauses.
   • 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.

2. 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 comes out with 4 payout options such as:

   • Lump-sum Option
   • Income Option
   • Increasing Income Option
   • Lump-sum Plus Income

   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.

3. SBI Life eShield

   SBI Life eShield plan is a non-linked and non-participating insurance plan, which offers high coverage at minimal premiums. The plan offers a range of benefits without burdening your pockets. With loads of benefits, the plan offers several discounts on premiums for non-smokers.

   Features and Benefits:

   • 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
   • Under the Income Tax Act, 1961, you can enjoy tax exemptions on the regularly paid premiums.

4. 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 9 plan options and allows the customers to customize as per their needs and requirements. The plan options available are:

   • Life Option
   • 3D Life Option
   • Extra Life Option
   • Income Option
   • Extra Life Income Option
   • Income Replacement Option
   • Return of Premium Option
   • Life-Long Protection Option
   • 3D Life Long Protection Optio

   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.
   • The plan waives off all the future premiums on Accidental Total Permanent Disability and the diagnosis of Critical Illness.

5. Max Life Smart Term Plan

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

   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. 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. To look after the specific needs of every individual, the plan comes with four variants and allows them to customize the plan as per their requirements.

   Features and Benefits:

   • Along with the protection cover, the plan offers coverage against 55 minor and major critical illnesses.
   • The plan offers additional coverage for the child's educational expenses in case of death of the life assured.
   • For enhanced protection, the plan offers four add-on covers. 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.

7. 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. One also has the option to increase his/her cover through Kotak Permanent Disability Benefit Rider and Kotak Critical Illness Plus Benefit Rider.

   Features and Benefits:

   • The plan offers three payout options to choose from Immediate Payout, Level Recurring Payout, and Increasing Recurring Payout.
   • The plan is available in 3 variants- Life, Life Plus, and Life Secure.
   • The plan offers special premium rates to non-tobacco users and females.

8. Aditya Birla Sun Life Shield

   With 8 different plan options, Aditya Birla Sun Life Shield ensures to fulfil the financial needs of all its customers. To offer maximum benefit to the policyholder and his family, the plan comes with an inbuilt terminal illness benefit. Also, it comes with five rider options, enabling the policyholders to enhance their protection. The riders available are (i) ABSLI Accidental Death and Disability Rider (ii) ABSLI Critical Illness Rider (iii) ABSLI Surgical Care Rider (iv) ABSLI Hospital Care Rider (v) ABSLI Accidental Death Benefit

   Features and Benefits:

   • The plan offers joint life protection, where you and your spouse get coverage under the same policy.
   • The plan waives off all the future premiums in case the life insured suffers from total and permanent disability or critical illness during the policy term.
   • The plan offers enhanced life stage protection, through which one can avail of additional cover during key stages of life like marriage, childbirth, etc.

9. 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 fulfil your family's financial needs after your unfortunate demise. The plan comes with a wide range of benefits that fulfil your family's specific needs.

   Features and Benefits:

   • 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.
   • One can avail several discounts if he/she chooses the higher sum assured.

10. PNB Metlife Mera Term Plan

    PNB Metlife Mera Term Plan, a pure protection plan, is an ideal option to protect the financial future of your family. The plan addresses your family's protection needs at an affordable cost and ensures your family can meet their future dreams after your unfortunate demise.

    Features and Benefits:

    • 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.

Factors to Consider While Buying a Term Insurance Plan

To buy term insurance, you need to do thorough research about the companies 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:

Consider Your Needs

There is a myth that only higher premium plans are beneficial. 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 plans along with their premium costs. If the selected plan matches your needs, it should be your choice.

Premium Affordability

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

Claim Settlement Ratio

There is no point in having insurance if your claims are rejected by the insurer. So, checking and comparing the claim ratio of insurance providers should be the top priority. The higher the claim ratio, the higher are your chances to get a green signal for your claims.

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 services. After all, your queries will be entertained by them in the future.

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.

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 better 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

• At 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.

Let your family be financially independent and secure even when you will not be there. Gift them a secure and contented life by purchasing a term insurance plan. It is not an option but a necessity in the present times. Consider the above-mentioned factors, do your research, and select an ideal term plan that is best suitable to the needs of your family. Because only you know what is best for your family.