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:
|Sr. No.||Company Name||Term Insurance Plans||Entry Age (years)||Maximum Maturity Age (years)||Minimum Sum Assured (Rs.)||Claim Settlement Ratio|
|1.||Aegon Life||iTerm plan||18-65||100||25 Lakhs||96.45%|
|2.||Aviva||Lifeshield advantage||18-55||65||35 Lakhs||96.06%|
|3.||Aditya Birla||Life Shield||18-65||85||25 Lakhs||97.15%|
|4.||Bajaj Allianz||Smart Protect Goal||18-65||99||50 Lakhs||95.01%|
|5.||Bharti AXA||Life Flexi Term Plan||18-65||85||10 Lakhs||97.28%|
|6.||Canara HSBC OBC||iSelect Star Term Plan||18-65||80||25 Lakhs||94.04%|
|7.||Edelweiss Tokio||My Term+||10-65||85||25 lakhs||95.82%|
|8.||Exide Life||Smart Term Edge||18-60||75||5 Lakhs||97.03%|
|9.||Future Generali||Flexi Online Term Plan||18/25-55||75||50 Lakhs||95.16%|
|10.||HDFC Life||Click 2 Protect 3D Plus Term Plan||18/25-65||85, the whole of life||10 Thousand||99.04%|
|11.||ICICI Prudential Life||iProtect Smart Term Plan||18-65||99||Subject to the minimum premium||98.58%|
|12.||IDBI Federal||My Life Protection Plan||21-65||85||50 Lakhs||95.79%|
|13.||IndiaFirst Life||Guaranteed Protection Plan||18-65||99||25 Lakhs||92.82%|
|14.||Kotak Mahindra||E-term||18-65||75||25 Lakhs||97.40%|
|15.||LIC of India||Tech Term||18-65||80||50 Lakhs||97.79%|
|16.||Max Life||Smart Term Plan||18-60||85||10 Lakhs||98.74%|
|17.||PNB Metlife||Mera Term Plan||18-65||99||10 Lakhs||96.21%|
|18.||Pramerica Life||TruShield||18-55||65||5 Lakhs||98.42%|
|19.||SBI Life||eShield||18-65||80||35 Lakhs||95.03%|
|20.||Tata AIA||Maha Raksha Supreme||18-70||100||50 Lakhs||99.07%|
**Last Updated on January, 2021
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.
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.
With 8 different plan options, Aditya Birla Sun Life Shield makes sure to fulfill the financial needs of all its customers.
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.
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.
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.
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.
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.
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.
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.
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.
IDBI MyLife Protection Plan is a non-linked, individual life pure risk premium plan that offers an extensive life cover at affordable premiums.
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.
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.
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.
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.
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.
Pramerica Life Tru Shield is a term insurance plan that safeguards your family's financial independence even in your absence.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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-
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.
Written By : Naval Goel
Last Updated : January, 2021
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