Best Term Insurance Plans in India
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.
10 Best Term Insurance Plans
Term Insurance Claim Process
All you need to know about Term Insurance
6 Best Term Insurance Plans in India
Compare Life Insurance Term Plan
List of Best Term Insurance Plans in India 2023
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.
Let's Understand the Best Term Insurance Plans Briefly
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.
ICICI Prudential iProtect Smart
- It is amongst the best term insurance in India, securing the life of an insured person by offering coverage on diagnosing any 34 critical illnesses.
- This plan comes with four coverage options: life, life plus, life plus health, and all in one.
- There are also two option benefits within plans, including the Accidental Death Option and Critical Illness Benefit.
- It also comes with additional features and benefits designed to protect the insured's family financially.
- Not just this, the ICICI Pru iProtect Smart plan offers whole life cover till the age of 99, with the eligibility age between 18 and 65 years.
HDFC Life Click 2 Protect Super
- It is among India's top versatile plans, along with flexible coverage options, and offers policyholders flexibility to choose from multiple premium payment options.
- This plan can be purchased online hassle-free, and buyers even get a 5% discount when buying online.
- This plan comes with three options providing extra perks and features within each variant: Life Option, Life Plus option, and Life Goal Option.
- There are also add-on riders with additional features and benefits such as Return of Premium (ROP) and Waiver of Premium on Critical illness, Waiver of Premium on Total or Permanent Disability, and Spouse Cover Option.
- The insurer offers policyholders flexibility to alter the premium frequency throughout the premium payment term.
PNB Metlife Mera Term Plan Plus
- PNB MetLife Mera Term Plan Plus is a protection plan known for its comprehensive coverage at affordable premiums.
- This plan comes with three options providing extra perks and features within each variant: Life, Life Plus, and Life Plus Health.
- If the insured person suffers any accidental total permanent disability or is diagnosed with the listed 50 critical illnesses, then the insurer will waive all future premiums.
- This plan comes with additional benefits such as step-up benefit, life stage benefit, child education support benefit, and additional riders.
- If you buy the term plan plus, you can customize your coverage under the cover enhancement options available.
- Even the policyholder has the flexbility to select an option to get their benefits as a lump sum, monthly income over a certain period, or as a combination of both revenue and lumpsum.
TATA AIA Life Insurance Sampoorna Raksha Supreme Plan
- It is a well-known tailor-made protection plan that offers comprehensive coverage at a nominal premium.
- TATA AIA Life Insurance Sampoorna Raksha Supreme plan offers whole life coverage up to 100 years of age, with the eligibility age between 18 and 65 years.
- This plan comes with three options providing extra perks and features within each variant: life, life plus, life income, and credit protection.
- This plan includes additional benefits such as rider benefits, multiple payment options, lower premium rates for women, maturity benefits, and more.
- This plan comes with a "Life Stage" option, in which the insured person can increase the sum assured at any time by paying an additional premium for every increase.
Bajaj Allianz Life e-Touch Term Plan
- Under the Bajaj Allianz Life e-Touch Term Plan, an insured person gets 4 different plan options: Life Shield, Life Shield Plus, and Life Shield ROP.
- This plan includes additional benefits such as death benefit, terminal illness, Waiver of Premium, maturity benefit, and Return of Premiums.
- This plan offers the "Early Exit Value" option in which the insured person can exit the plan before its maturity and get all the premiums they have paid.
- This plan also offers the "Premium Holiday" option in which the insured can skip paying a premium for 1 to 3 years throughout the policy term based on their need.
Max Life SmartSecure Plus Term Plan
- It is amongst the smart term insurance plans in India, designed to provide wide coverage for the insured person and their family, with protection features and multiple built-in features.
- This plan offers insured persons additional covers such as premium breaks, death benefits, joint life cover, Etc.
- This plan offers free-of-cost coverage against the diagnosis of terminal illness.
- Max Life SmartSecure Plus Term Plan comes with 2 death benefits: terminal illness cover and an exit value.
Canara HSBC iSelect Smart 360 Term Plan
- This plan comes with three options providing extra perks and features within each variant: Life Secure, Life Secure with Income, and Life Secure with Return of Premium.
- Canara HSBC iSelect Smart 360 Term Plan offers whole life cover till the age of 99, with the eligibility age between 18 and 65 years.
- This plan comes with an adjustable coverage option in which policyholder can change their covеragе amount as their life changes.
- Policyholders can avail special discounts on premums if they opt for higher coverage, and female buyers get a special discount.
Kotak e-term plan
- It is one of India's best pure risk cover term plans, known for providing a high level of protection.
- Kotak's e-term plan offers a special discount on premiums to non-tobacco users and women.
- This plan comes with three options providing extra perks and features within each variant: Life, Life Plus, and Life Secure.
- This plan has three payout options: Intermediate, Level Recurring, or Increasing Recurring Payout.
- Kotak E-term plan comes with two add-on riders: Kotak Critical Illness Plus Benefit Rider and Kotak Permanent Disability Benefit Rider.
Edelweiss Tokio Zindagi Protect Term Insurance Plan
- Edelweiss Tokio Zindagi Protect Term Insurance offers whole-life coverage up to 100 years of age, with the eligibility age between 18 and 65 years.
- This plan offers an extra set of additional benefits and provides a discount on 1st-year premium.
- This plan comes with a Special Exit Benefit in which the insured person can exit the plan before its maturity and get all the premiums they have paid.
- It also comes with additional features and benefits designed to protect the policyholder's child's future.
Aegon Life iTerm Prime Insurance Plan
- It is one of the well-known term plans that offer coverage for 36 critical illnesses.
- This plan offers policyholders the flexibility to increase the life coverage assured at any time by paying an additional premium.
- The policyholders also have the flexibility to attach or detach riders, with a choice of 4 riders.
- Aegon Life iTerm Prime Insurance Plan offers whole life cover till the age of 99, with the eligibility age between 18 and 65 years.
Choose Term Insurance Coverage of Your Choice
Steps To Choose the Best Term Plan in India
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.
- Step-1: Company
Look at the CSR of the company (should be more than 97%), solvency ratio of more than 1.5, product portfolio and company reviews.
- Step-2: Coverage
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.
- Step-3: Policy Tenure
Choose whole life coverage if buying young for low premiums. Retirement age and loans should lie in the policy tenure for smooth repayment.
- Step-4: Riders
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.
- Step-5: Premiums
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.
Some Important Benefits Offered by the Best Term Insurance Plans in India
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.
Life Stage Benefit or Increasing Life Cover
- Sum assured that you chose once might not be adequate for you in the future.
- Increasing Life Cover increases your sum assured up to some percentage at important stages of life without charging any extra premiums.
- This means that the payout will keep on increasing with the crucial stages of your life.
Decreasing Life Cover or 'Life Goal Option'
- Decrease your liabilities as your term insurance policy progresses.
- The benefit helps if you have pending loans. A part of the premium paid goes to paying away your loan.
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.
Term Return of Premium or Maturity Benefit
- If you outlive your term plan, the insurer returns the premiums that you paid after deducting the taxes.
- After the premiums are paid back, the policy terminates.
Option to Add Spouse or Joint Term Plan
- The best term life insurance policies offer an option to add a spouse in your term plan.
- Comes in handy when both partners wish to buy term insurance but do not want to pay for 2 term plans.
- Add your partner at very little extra premium and provide them a separate sum assured.
- If you pass away, they get the death benefit and their future premiums waive off while the coverage remains intact for the nominees.
Term Insurance under MWP Act
- Buy a term insurance policy under the Married Women Property Act and ensure that the death benefit is only entitled to your nominee.
- This means that the death benefit cannot be claimed by any other relative or creditors.
Special Exit Value or Zero Cost Term Plan
- Withdraw the plan between the policy term when you feel that there are not many liabilities to be taken care of.
- The insurer gives you a bracket of years to exit the policy and receive the paid premiums after you have endured the policy for a certain number of years (which is usually 25-30 years).
- A bracket of years is given to exit the policy and after the premiums are paid to you the coverage stops.
Riders make your term plan more wholesome and mold it according to you. Term plans come with 6 types of riders which include:
Terminal Illness Rider:
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.
Accidental Death Benefit Rider:
offers an extra death benefit if the policyholder dies due to an accident.
Waiver of Premium Rider:
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.
Accelerated Death Benefit Rider:
the coverage of your term insurance policy increases every year up to a fixed percentage whereas your premiums remain fixed.
Accidental Disability Benefit Rider:
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.
- The best term insurance plans offer different options for death benefit payout, one of these options is the Income Benefit.
- You can choose to get the sum assured as a monthly income over a period of 10 years
- The insurer divides the sum assured for 120 months and provides one part of this on a monthly basis for the next 10 years.
Premium Break or Premium Holiday
- An amazing benefit offered by some of the best term plans. Take a break from paying the premiums for 1 or 2 years and the policy still remains active.
- Comes in handy during financially weak periods.
- This benefit comes at a very minimal extra cost but can serve a great purpose for an insured.
Factors That Affect Your Term Insurance Premiums
Term insurance plan premiums are calculated by carefully considering some aspects such as
- Age Term insurance is best purchased when you are young and healthy. As you age, term insurance premiums increase as your health complications increase.
- Monthly income The sum assured you will be offered largely depends on your annual income. A very high sum assured policy might not be offered to you if you do not fall into the income group of that policy.
- Health Term insurance providers evaluate your health through a mandatory pre-policy medical check-up. There are some fixed tests that you have to go through and some additional ones if asked by the insurance provider. If your test results are favorable then the insurer bears the cost of these tests and offers you the policy. If you are detected as a high-risk individual they may offer you a policy with higher premiums. If the insurer is able to find a pre-existing disease that they do not cover, you are denied a policy and you have to bear the cost of the tests as well.
- Lifestyle habits Term insurers take note of your lifestyle habits such as smoking and drinking and if you smoke, your premiums are affected and are on the higher side.
- Geographical Location Some postal codes are blacklisted or considered high-risk zones by the term insurers. If you reside in these postal codes then you may get a term plan with higher premiums or might not get a policy at all.
- Gender Usually the best term insurance plans offer discounts to female policyholders. Also, females have a high life expectancy rate as compared to males so the premiums for females are on the cheaper side.
- Type of Occupation People with risky jobs are more likely to pay higher term insurance premiums as these individuals are considered high-risk by term insurance providers. Risky jobs include on-road services, working in factories, radiation labs, etc.
Mandatory Documents Required To Buy Term Insurance Plans
Following are the documents that you need to submit to the insurance company while buying a term plan are:
- 1. Identity Proof.
- 2. Address Proof.
- 3. Income Proof:
- If an employee - Last 3 months salary slips and bank statements having salary credit information.
- If self employed - ITR of the last 3 years with Computation of Income (COI).
- 4. 2 passport size photographs.
- 5. Policy number and coverage of pre-existing insurance policies (if any).
Some Mistakes To Avoid While Buying The Best Term Plan For Yourself
There are a number of mistakes that you should avoid when you purchase the best term insurance for yourself:
Not providing authentic information
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.
Not researching well
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.
Falling for too-good-to-be-true policies
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.
Only considering cheaper premiums
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.
Buying from low CSR companies
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.