Life is unpredictable, and ensuring the financial security of your loved ones in your absence is paramount. Term insurance plans are one of the most efficient and cost-effective ways to provide this security.
Term insurance is a type of life insurance that provides death benefits (i.e., sum assured) to the insured individual’s dependents. Term insurance is the purest form of life insurance. It is often considered the most affordable type of insurance. If you want to secure your family’s future, it is advisable to choose the best term plan that suits your needs by providing sufficient insurance coverage. You can buy term insurance if you are 18 years old or older and up to 65.
Best term life insurance in India
Term life insurance is necessary to secure your family in case of the policyholder’s untimely death. It offers affordable premiums. Anyone 18 or older can easily purchase a plan. It provides financial security to all your loved ones, aids in loan repayment, protects your valuable assets, and protects you from critical illnesses. As term plans have these benefits, you must sift through the best term insurance plans to select the top one for you and your family.
List of top 10 term insurances
The best term insurance plans in India are as follows.
1. HDFC Life Click 2 Protect Super
HDFC Standard Life Insurance provides this policy for people aged between 18 and 65. It comes with a minimum sum assured of Rs. 50 lacs and maximum sum assured of 20 crores. It is a type of return of premium policy that means the insurance provider will return all the premiums you paid provided you outlive the policy term.
It has three different policy options from which policyholders can choose from. It also has a free-look period of 30 days, during which you can cancel and get your money back if you are unhappy with the plan. This insurance term plan has a waiver of premium benefits for critical illness and total and permanent disability.
2. Bajaj Allianz eTouch
This term plan can be chosen by anyone aged between 18 and 55. It comes with a minimum sum assured of Rs. 50 lacs and Rs. 10 crores. It is among the best term insurance plans because it provides coverage in case of disability, terminal illness, and death. It also provides premium options for those looking for such plans.
You get the flexibility to pay premiums as you wish until you retire or until your policy expires. You can get a premium holiday option with this particular term plan that enables you to skip paying your premiums for 1, 2 or 3 years.
3. LIC Tech Term Insurance
This term insurance policy of Life Insurance Corporation of India is one of the LIC best plans for 2023. Anyone between 18 years and 65 years can opt for this plan. Secondly, the sum assured starts at Rs 50 lacs and has no maximum limit. Thirdly, it offers benefit payouts in installments. It also provides regular, limited, and single premium payment options.
The LIC term insurance plan offers special rates for non-smokers and women. It gives the policyholder the option to choose from two types of benefits; level sum assured and increasing sum assured. You also get to enjoy a free-look period for 30 days whereby you can cancel if you think the policy is not suitable for your family’s requirement.
4. ICICI Prudential iProtect Smart
This ICICI Prudential Life Insurance policy can be opted by anyone between the ages of 18 and 65 years. It is among the best life insurance plans in India. It comes with a minimum sum assured of Rs. 50 lacs and maximum sum assured of Rs. 20 crores. It comes with a 1-day claim settlement promise. You also get a 30-day free-look period.
This term insurance policy provides comprehensive coverage as it includes partial/permanent disability, critical illness, and death. The term plan offers competitive premium rates for non-smokers. You can pay the premiums either regularly, in a single pay, or with limited pay.
5. SBI Life eShield Next
This offering by SBI Life Insurance is for people between 18 and 65 years. It offers a minimum sum assured of Rs. 50 lacs and a maximum sum assured of Rs. 10 crores. You can get a life cover up to 100 years or until 85 years. The plan offers customization so you can ensure all your family’s requirements are met before you purchase it.
The SBI’s term life policy has a free-look period of 30 days. So you can decide the policy timeframes as per your financial requirements. You can also opt for a level cover with a future-proofing benefit option. As it offers affordable premiums, it is considered a good fit for many people. You can get discounts when you purchase the term life insurance plan online. It is among the best term insurance plans.
6. Canara HSBC Young Term Plan
An offering by Canara HSBC OBC Life Insurance is this young-term plan. It is one of the best term insurance with a return of premium. You can get this plan if you are between 18 years and 60 years. It provides coverage starting from Rs. 25 lacs and going up to Rs. 20 crores. The term plan has an option whereby you can have your total premiums paid returned in case of zero claims.
You can get an additional lump sum payment in case of permanent disability, accidental death, or critical illness. The term plan offers childcare benefits where an additional sum is assured until your child is 21. You can also block your premium rate at the start and increase your cover for the next 5 years up to 100% of the sum assured.
7. TATA AIA SRS Vitality Protect
This policy by TATA AIA Life Insurance can be opted for by anyone who falls in the age bracket of 18 to 60 years. The sum assured starts from Rs. 50 lacs and goes up to Rs. 2 crores. This policy is available in two forms: term or term with a return of premium. This policy is considered the best term insurance plan for 2023 as you can get an annual free health check-up.
When you opt for this term cover, you get the benefit of the wellness program whereby you can earn rewards according to your wellness status. Your wellness status is tracked via its app. It also gives you a guaranteed discount on your premium in the first year. You can earn yearly rewards as well that can unlock more discounts.
8. PNB MetLife Mera Term Plan Plus
PNB MetLife India Insurance is one of the top insurance providers in India. It offers a term insurance plan of a sum assured starting from Rs 50 lacs to Rs 1 crore. The minimum age to buy PNB MetLife Term Insurance Plus is 18 years, and the maximum age is 50. You get a flexible payout option with this cover.
It is one of the best term plans with a return of premium. The plan also offers an option to add your spouse to the term plan thereby extending the benefits of one plan to two people. You can also choose cover enhancement options to widen the protection provided.
9. Max Life Smart Secure Plus
This Max Life Insurance term plan is eligible for those between 18 and 60 years. It provides a sum assured starting at Rs. 25 lacs and going up to Rs. 10 crores. If you are looking for a simple and affordable term plan, this is a good choice. It offers a free-look period of 30 days after which you can decide if you want this plan or not.
It is on the list of best term insurance policies for a variety of reasons. It comes with terminal illness coverage at no extra cost. It also has a limited pay option where you have to pay premiums regularly until you are 60 years old and get benefits until 85. It is a return of premium plan where the company will return all premiums paid if you survive until policy maturity.
10. Kotak e-Term Plan
The e-Term plan is for anyone who is looking for a sum assured of Rs. 50 lacs up to Rs. 10 crores. People who are 18 years up to 65 years are eligible to opt for this plan. You can choose additional riders for more protection. The plan offers a permanent disability benefit rider and a critical illness plus benefit rider. It is a great option for people looking for economical premiums and high coverage.
This term plan is considered the best term plan for many families as you have multiple plan options to choose from. It enables you to choose the best protection for your family. You also get to choose from three payout options: immediate pay-out, level recurring pay-out, and increasing recurring pay-out.
Key takeaways
Choosing the best term insurance plan in India requires careful consideration of your financial goals, budget, and specific needs. Be sure to conduct thorough research, compare multiple policies, and consult with a financial advisor to make an informed decision that safeguards your family’s financial future. Remember that the right term insurance plan can provide peace of mind, knowing that your loved ones will be financially secure even in your absence.
Become an Insurance PoSP agent with PBPartners by selling term insurance plans and start your career in the always significant insurance industry.
FAQs on Term Insurance Plans
What is the best amount of term life insurance?
The best term policy depends on the individual’s age, income, expenses, lifestyle, dependents, etc. People between 18 to 35 years must take a cover that is 25 times their annual income, those between 36 to 45 years should take a plan that is 20 times their annual income, those people between 46 to 50 years should take a cover that is 15 times their yearly income, and those people between 51 to 60 years should take a plan that is ten times their annual income.
Can I buy a joint-term plan to cover my spouse?
You can buy a joint-term insurance plan that covers you, the policyholder, and your spouse in a single plan. It is a cost-effective option compared to buying two separate term insurance policies.
What is the minimum salary for Rs. 1 crore term insurance?
If you have found the best term insurance plan for 1 crore, it is imperative to know that your minimum annual salary should be Rs. 5 lacs.
What is the maximum age for term insurance?
The maximum age for purchasing a term insurance plan is 65 years. Certain insurance providers allow people to buy term insurance plans even after this age limit. These plans are called senior citizen plans.
Do I get my money back after term insurance?
It depends on the type of term plan because not all term insurance plans offer money-back after policy maturity. If you purchase a term insurance with a return of premium policy, you will receive the premiums paid when you outlive the term.
Who is not eligible for term life insurance?
People younger than 18 years or older than 65 years cannot purchase a term plan. Individuals who refuse to get a health check-up before opting for a term plan are not eligible as this is a mandatory requirement for disease screening.
What is a term insurance rider?
A rider is an add-on that expands the coverage of a term insurance plan. You can select one or more riders for better coverage for you and your family. Some examples of riders are accidental death, premium waiver, and partial/permanent disability.
What happens if the policyholder passes away outside India?
The claim will be approved if the insurance provider is informed about the incident instantly and all required documents are promptly provided. The insurance claim will be rejected by the insurance provider if the policyholder purposely puts himself in danger by traveling to a dangerous location.
How to choose the best term life insurance plan?
It is best to compare term plan insurance using the following parameters: eligibility, benefits, riders, premiums, and claim settlement ratio. Then you must check if the term plan provides all the long-term coverage you and your family require.
