Tips to Choose the Best Term Insurance Plan
  • Find the Best Term Plan
  • Features of a good term plan
  • Added Benefits
Tips to Choose the Best Term Insurance Plan
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Term Insurance Plan for you.

Get upto 10% Online Discount*



How do you Choose the Best Term Insurance Plan

Having a term insurance plan is an effective way to safeguard the family when you're not around. Still, most of the population in India remains uninsured. It's because people have a misconception that term insurance is a pointless expense, and some of them struggle with how to choose the best term plan.

Nowadays, there are so many insurers offering different types of plans in the market that picking the one that is best for you can be challenging. We're here to make the process of finding the best term insurance plan easy for everyone.

How to Choose the Right Term Insurance Plan in India

Before buying a term insurance plan, it is essential to compare many insurers offering different types of plans to get yourself the best deals. Additionally, you must take into consideration some factors while choosing the best term insurance plan for yourself. Here, we've listed a few factors that may help you find the right term insurance plan effortlessly.

Tips to Choose the Best Plan

Check How Much Coverage is Needed

Before starting the process of finding a term insurance plan, make sure you have decided how much life cover you need. Take into account your family's future needs and goals that you've decided for your family to follow in your absence.

However, there are also four methods to calculate adequate term insurance coverage—Human Life Value, Income Replacement, Expenses Replacement Method, and Underwriter's Thumb Rule.

Some of these methods include your liabilities, annual income, the number of dependents, future needs, Etc.

Check the Claim Settlement Ratio of Insurers

Take into consideration the claim settlement ratio of insurers. It shows the total number of claims received and the total number of claims settled in a year by the insurance provider.

For instance, an X insurance provider has a 97% claim settlement ratio. It shows that 97 claims will be settled out of 100 claims received in a financial year.

Do Not Mix Insurance with Investments

Term insurance is a pure protection plan, and endowment or ULIP is an investment + saving plan. Under investment plans, it provides dual benefits of investments and life cover. While term plans offer high life cover, you'll not get any market return from these plans.

It makes buyers think investment plans are better than term insurance plans, but it's not. Because investment plans sometimes fail to deliver both. The cover is not adequate, and the investment returns are disappointing.

Hence, it's not a good idea to mix term insurance and investment. However, you can opt for a ULIP plan that provides guaranteed returns.

Analyze Your Income

Take into consideration and analyze your income to ensure how much premiums you can pay without burdening yourself. Because everyone has to serve a set of responsibilities in different phases of life that require some portion of income. Once you calculate the income limitations, you can get better chances to avail yourself of the best deal.

Save On Your Tax Outgo

With a term insurance plan, you can avail yourself of various tax benefits under Sections 80C, 80D, and 10(10D) of the Income Tax Act 1961.

  • Under Section 80C of the Income Tax Act 1961, you can claim tax exemption of Rs 1.5 lakhs on premiums paid towards your term insurance plan.
  • Under Section 80D of the Income Tax Act 1961, you can avail of a tax exemption of Rs. 75,000 on the premiums paid towards the optional riders included in your term insurance plan. It also provides an additional tax education of Rs. Rs 25,000 (Rs 50,000 for senior citizens).
  • Section 10(10D) of the Income Tax Act 1961 provides an income-tax exemption of up to Rs. 2.5 lakhs on the death benefit and maturity benefit received under your term insurance plan.

Select the Right Sum-Assured Option

While finding the best term insurance plan, do not overestimate the life cover. The right life cover will ensure that your family will be taken care of financially in your absence.

To learn more about the sum assured option, click on the options below

Why Opt for a Longer Term

To get yourself the best term insurance plan, you have to understand how long your liabilities will last and your family's financial needs. It includes when your kids will be independent, how long you will work, your aging parent's needs, Etc.

  • In general, the term plan matures at the age of 65, but some insurers offer you the flexibility to decide the policy tenure of your plan.
  • The term insurance premiums will remain constant once the product is bought throughout the policy tenure.
  • Buying a term plan for a long term in an early stage of life offers you cheaper premiums, and it maximizes an insured person's security for the future while reducing risks greatly.


Are you still wondering how to choose the best term insurance plan for yourself? In that case, we've mentioned above the top 5 factors that may help you find the best term insurance plan in no time. For further help, you can directly reach out to your insurance experts to select the right term plan.

Tips to Choose the Best Term Insurance Plan : FAQ's

1. How do I choose a good term plan?

To choose a good term plan, you must compare many insurers offering different types of plans and the limitations of your income to get yourself the best deals.

2. How many years do we need to pay premiums?

The term insurance period depends on how long you want protection. Generally, the term plan matures at the age of 65, but you can choose your policy tenure up to 99 years.

3. Is it worth it to take term insurance?

Nowadays, it has become a basic necessity to buy a term insurance plan to safeguard the dependents when something happens to policyholders.

4. At what age term insurance is best?

Being in your 20s is a good time to get yourself a term plan, and even your premiums will be cheaper.

5. Which insurance provider in India has the best term plan?

List of the top 5 term insurance plans based on Claim Settlement Ratio (CSR) 2021-22.

  • Max Life Smart Secure Plus Plan
  • Aegon Life iTerm Prime
  • Bajaj Allianz Life eTouch Plan
  • Kotak e-Term Plan
  • HDFC Life Click 2 Protect Super

Term Insurance Companies

What Our Customers Have to Say

Customer Review Image



May 20, 2024

SUD Life term plan truly stands out my expectations as I got SUD Life term plan along with additional riders at very affordable premiums.

Customer Review Image



May 20, 2024

I am impresses with the hassle free and quick claim settlement process of SUD Life. Thanks to PolicyX who guided me to get my claim settled.

Customer Review Image



May 20, 2024

Bought SUD Life Family Income Benefit Rider plan to secure the future of my plan financially even in my absence.

Customer Review Image



May 20, 2024

I was looking for a term plan to secure the future of my family. So I contacted PolicyX and one of their representatives Mr. Vaibhav helped me choose SUD Life term plan.

Customer Review Image

Armaan khan


May 17, 2024

I recently purchased a Pramerica term insurance policy from The customer service team was very helpful in answering all my queries and guiding me through the application process. I...

Customer Review Image

Rahul Yadav


May 17, 2024

PolicyX’s dedicated support made renewing my Bandhan Life Insurance policy easy. I’m absolutely delighted with the service offered by PolicyX Insurance Advisor.

Customer Review Image

Priyanshu Sharma


May 17, 2024

I bought a Bandhan Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.

Customer Review Image

Yash Tomar


May 17, 2024

After getting advice from the PolicyX experts, I chose a Bandhan Life Insurance term plan. Thank you, PolicyX, for helping me buy a term plan at such a low premium.

Varun Saxena

Written By: Varun Saxena

Varun is a passionate content writer with over three years of experience in the insurance domain. An avid learner, he stays ahead of the industry's trends ensuring his writing remains fresh and includes the latest insurance shifts. Through his work, Varun strives to engage with targeted insurance readers.