With the rapid evolution of technology, every industry has witnessed drastic transformations. If we talk about the insurance sector in India, research suggests that it has garnered incredible attention in the last quarter of 2015. Term insurance is one of the most popular and crucial forms of insurance plans that offers coverage for a specific amount of time. Under this, if an insured person dies during the tenure of the policy, then the sum assured is being paid out to the nominee. On the contrary, if the insured person survives the tenure, then no payment is given. For those individuals who are worried about the family financial issues when they are no more, term insurance plan is one of the basic necessities! The premium on such plans relies on the three factors – term of the policy, age and the sum assured.
Best Term Insurance Policies in India
Here is a list of Top Ten Term Insurance Policies in India, available today.
ICICI Prudential iProtect
It is the smartly created plan offering a claim settlement ratio of 94.1%. This term plan provides a lump sum pay-out to the nominee after the unfortunate event of death of the insured. In addition to this, an optional Accidental Death Benefit rider can also be availed as per your needs. The amount that the nominee gets can be used to meet the day to day expenses or for repaying the loans (if any).
HDFC Life’s Click 2 Protect
This term insurance plan from HDFC boasts excellent claim ratio of 94%. Under this plan, you can opt for sum assured up to the limit of 10 crores. It offers a comprehensive protection to the insured at feasible price. Additionally, it is one of the most preferred term insurance plans that provide an array of cover options for your specific needs. HDFC Life’s Click 2 Protect provides the following cover options-
Life option (lump sum payment to the nominee after death of the insured)
Accidental death benefit: In case of accidental death, lump sum payment is is made to the nominee followed by extra Sum Assured.
Income Option – A part of Sum Assured is to be paid on death of the insured and rest of the payment as monthly income for 15 years.
Income Plus Option – as per the needs, monthly income can be chosen at increasing 10% p.a.
LIC’s e-Term Plan
LIC is the sole public sector company in life insurance industry that is appreciated by a majority of residents in India. LIC’s e-term plan provides the highest claim settlement ratio of 98.14%. Also, this plan is cheaper (35%) that the other offline term plans. It offers two categories of premium rates- Aggregate lives and Non-Smoker lives. If you are seeking sum assured up to Rs. 49 lacs, then Aggregate category rates would apply. For sum assured of Rs.50 lacs and above, there is an option to select differential premium rate.
Max Life Insurance’s Online Term Plan
If you are looking for the lowest premium term insurance plan, this is the one for you! Max Life Insurance’s Online Term Plan provides an option of Accidental Death Benefit Rider. Apart from the basic plan, you can choose any of the following options-
Basic Life Cover with Monthly Income
Basic Life Cover with Increasing Monthly Income
Kotak Life’s Preferred e-Term Plan
For all those people who are looking for a term insurance plan with the lowest possible premium rates, Kotak Life is one of the basic plans. Under this, after the death of the insured, the nominee will get a fixed amount for the next 15 years.
SBI Life’s e-Shield
This plan is an individual, non-linked, non-participating pure term plan that has a nominal premium rate. The plan offers affordable premium rate that can provide financial protection to your family. Age limit for this plan is 18 to 65 years.
The various options available with this plan are:
Basic Plan with Accidental Death Benefit
Increasing cover (under this the sum assured grows with10% interest rate per annum after every 5 year without increasing the premium rate)
Increasing cover with Accidental Death Benefit
Bajaj Allianz’si Secure
This term plan gives you an option to select either individual coverage or joint life insurance coverage! The eligible age to opt for the plan is between 18 to 60 years. After the event of death of the insured, the sum assured will be provided to the nominee.
Aegon Life iTerm Insurance Plan
It lays emphasis on the primary breadwinners of the nation. Aegon Life iTerm Insurance Plan offers claim settlement of around 81%. It is one of the cheapest plans in terms of premium rates. Along with the plan, there are other optional riders for Accidental Death Benefit and Critical Illness. Minimum sum assured is Rs.10, 00,000 and there is no such maximum limit for the same.
Aviva Life’s i – Life Term Plan
It’s again a cheaper term insurance that offers lower premium rates. This is one term plan where females get an extra 5% rebate on premium rates. Under the plan, the minimum Sum Assured is Rs. 25, 00, 000 and there is no maximum limit. For those who are considering paying a feasible amount of premium, this is an ideal plan to opt for.
Tata AIA iRaksha TROP Online Term Plan
Among all the highest premium plans in India, this term plan offers Accidental Death and Dismemberment Rider that can be chosen as per your specifications. It offers dual benefits – life insurance cover and return of premium. As per the plan, minimum annual premium is Rs. 17,854 and maximum premium depends on the sum assured.
So, there you have it. These are the top ten term insurance policies in India that are ruling the insurance market! You can go through these plans and make an appropriate decision according to your needs and budget.
Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC’s to startups, I have a lot to share with you. My aim is to help people, by sharing everything I’ve learned in life, through this blog. It’s read today by more than 150K people world over! I currently live in LA, California and visit India occasionally. Here’s my full story on who I am and why I blog. Connect with me on Facebook, Instagram, Twitter or WhatsApp (+001-408-489-4785). Happy to help! 🙂