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Best Term Insurance Plans

Best Term Insurance Plans

Unforeseen events can happen at any time in life and for that, we have to be well prepared so that our dearer ones do not suffer. To sustain through the uncertainties of life, we need an insurance plan that can secure the life of our family members even in our absence. Among all the insurance policies, a term insurance plan is a policy that can appear as a messiah in our tough times. A term insurance plan not only comes with a wider coverage but also provides a lot of benefits that can fulfil the future needs of your family such as your child’s marriage, his/her higher education, and so on by providing financial security to your family in your absence.

Top Term Insurance Plans Available in India in 2023

There are lots of insurance companies that offer term insurance plans with different benefits. So while there are a number of term insurance plans available in the market, it becomes harder for a policy-seeker to find out the best plan for him or her that can serve the purpose. To help you make a wise decision, here is a list of the best term insurance plans offered by different insurers that are selected based on CSR and decent sum assured options.

Insurers Term planClaim Settlement Ratio (2019 – 2020)Entry ageMax maturity agePolicy TermSum assured
Aditya Birla Sun Life InsuranceABSLI LifeShield Plan97.54%18 years to 65 years85 yearsSingle Pay
Limited Pay – 6,8,10 Years
Regular Pay
Minimum – `Rs. 25,00,000
Maximum – No Limit (subject to underwriting guidelines)
Bajaj AllianzSmart Protect Goal98.48%18-65 years99 years10, 15, 20,25 and 30 yearsMinimum – 50 lakhs
Maximum – – As per Board Approved Underwriting Guidelines
HDFC LifeClick 2 Protect Life99.07%18 years to 65 years85 years5 years to 85 years minus entry age (smokers)
10 years to 40 years minus entry age (non-smokers)
Minimum – 25 lakhs
ICICI PrudentialiProtect Smart Lumpsum97.84%18 years to 65 years85 years5, 10, 15, and 20 yearsMinimum – Subject to minimum premium
Maximum – Unlimited
Kotak Lifee-Term96.38%18 – 65 years70 years5 years to 30 yearsMinimum – ` Rs. 3,00,000, Maximum – Rs. 24,99,999
LIC InsuranceLIC Tech Term96.69%18 – 65 years80 years10 years to 40 yearsMinimum: 50,000 lakhs
Maximum: No upper limit
Max Life InsuranceSmart Term Plan Life Cover99.22%18 years to 60 years75 years
85 years (for base death benefit)
Regular pay – 10 years to 50 years
Limited pay – 15 years to 50 years
Minimum: Rs. 50,000 – Rs. 25 lakhs
Maximum: No upper limit
PNB Met lifeMera Term Plan-Full Lumpsum payout97.18%18 years to 65 years99 years10 years to 81 yearsMinimum – 10 lakhs
Maximum – 50 crores
SBI Life InsuranceeShield94.52%18 years to 60, 65 years70 years5 years to 80 years minus entry age (smokers)
10 years to 75 years minus entry age (non-smokers)
Minimum – 20 lakhs
Maximum – No upper limit

Note- The values are taken from respective plan brochures and are subject to change.

1. Aditya Birla Sun Life Shield Term Insurance Plan

ABSLI Life Shield Plan is a popular term insurance plan that comes with eight different plan variants so that the policy-seeker according to his or her retirements. This plan not only provides financial security to the family but also takes care of the future liability and helps to maintain a good lifestyle in the absence of the insured. To enhance the benefit, the policy comes with an inbuilt terminal illness benefit along with six-rider benefit options to increase the protection to the insured and his/her family. Under this plan, one can avail of a higher sum assured at a nominal premium amount.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • It is a very pocket-friendly plan that can provide complete financial protection to the insured’s family at a nominal premium amount

  • This plan offers joint life protection and your spouse can also get the protection under the same policy.

  • This term plan offers substantially longer coverage, up to 85 years.

  • It helps to take care of the liabilities in the absence of the insured such as car loan, education loan, and some more with the claim amount received.

  • Return of premium option is available with this policy. This plan waives off all the future premiums if the policyholder suffers from total and permanent disability or critical illness during the policy term.

  • This policy provides 6 rider benefit options.

  • A tax benefit option is available with this policy.

  • Policy rewards are offered for maintaining a healthy lifestyle.

2. Bajaj Allianz Smart Protect Goal Term Policy

Bajaj Allianz Smart Protect Goal is a non-linked, non participating, all-encompassing pure Life Term Insurance Plan. It not only offers you the option to get back the entire premium at the time of maturity but also protects the insured against the financial loss arising out of different critical illnesses. Multiple variants of the plan are available to offer a customized solution to provide the maximum benefit to the policyholder according to his/her convenience.

Key Highlights and Features

Here are the benefits of this plan as follows.

  • It provides coverage for 55 major and minor critical illnesses.

  • It offers a complete cover with multiple add-ons and carefully designed variants to meet the clients’ different needs.

  • Under this policy, one can receive the total premiums paid towards the policy at the time of maturity, if there is no claim.

  • A whole life cover option is available with this plan.

  • One can avail of add-on covers to enhance the coverage of the policy. You can opt for covers such as Critical Illness cover, Accidental Death Benefit, Accidental Total Permanent Disability Benefit, and Waiver of Premium Benefit

  • A 3% discount is offered if the policy is purchased online.

  • The plan offers a lower premium rate for non-smokers and female insurance buyers.

  • The policy offers basic coverage with rider benefits. That way, the term plan can be tailored to best suit your unique requirements.

3. HDFC Click 2 Protect 3D Plus Term Plan

HDFC Click 2 Protect 3D Plus Term Plan is an intelligent term plan that offers benefits as per the convenience and the changing lifestyle of the insured to keep his/her family financially protected in adverse situations. This plan covers three uncertainties – death, disability, and disease. This plan comes with 9 options to choose from.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • It provides financial protection to you and your family at an affordable cost where customize the plan with a choice of 9 plan options, namely – Life Option, 3D Life Option, Extra Life Option, Income Option, Extra Life Income Option, Income Replacement Option, Return of Premium Option, Life Long Protection Option, 3D Life Long Protection Option

  • All future premiums are waived on Accidental Total Permanent Disability (available under all options) and on the diagnosis of Critical Illness (available under 3D Life & 3D Life Long Protection options).

  • It offers flexibility to choose your policy and premium payment terms

  • Life Stage Protection feature offers to increase insurance cover on certain key milestones without medicals

  • You can avail of the flexibility to increase your cover every year through the top-up option

  • Special premium rates for female and non-tobacco users insured are offered under this policy.

  • Tax benefits are also available as per prevailing tax laws.

4. ICICI Prudential iProtect Smart Term Plan

This term plan is one of the most popular term plans that provide comprehensive financial protection to the insured and comes with different options of life cover to choose from. At a very affordable premium cost. To maximize the benefit of the policy, this plan also offers additional rider benefits to secure its customers.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • This plan comes with four payout options and they are – Lump-sum Option, Income Option, Increasing Income Option, and Lump-sum Plus Option.

  • It provides coverage for 34 critical illnesses.

  • It pays life cover on terminal illness.

  • This plan can be purchased online and the procedure is smooth, simple, and hassle-free.

  • The company pays all due premiums on your behalf in case of permanent disability caused due to an accident.

  • The accidental death benefit is also available with this plan.

  • The life cover can be increased under this policy after marriage, childbirth, and adoption of the child.

5. Kotak Mahindra E-term Plan

Kotak e-Term Plan is a non-linked individual and pure risk cover term plan that is truly an economical means of providing you with a high level of protection. This plan offers the option to enhance your coverage against Accidental Death, Total and Permanent Disability. Further, you can also choose additional cover through Permanent Disability Benefit Rider and Critical Illness Plus Benefit Rider on payment of additional premiums, therefore ensuring a complete cover against the unfortunate eventualities.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • 3 Plan Options to choose from are available with this policy – Life, Life Plus, and Life Secure.

  • There are 3 Payout Options to choose from – Immediate Payout, Level Recurring Payout, and Increasing Recurring Payout.

  • An insured can enhance his/her cover at specific events of life through the Step-Up option.

  • Special rates of premium are available for Non-Tobacco Users & Women.

  • Enhanced Protections against Accidental Death, Critical Illness, and Total Permanent Disability are offered under this plan.

6. LIC Tech-Term Insurance Plan

LIC’s Tech-Term is a Non-Linked, Without Profit, Pure Protection “Online Term Assurance Policy” which provides financial protection to the insured’s family in case of his/her unfortunate demise. It is an online term plan and the process of it is very simple, smooth, and hassle-free. This plan offers two variants from which you can choose the suitable one for you.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • This plan offers a death benefit to the beneficiary or nominee of the policy in the event of the unfortunate demise of the insured person during the policy tenure.

  • As you can avail of the policy online, therefore no intermediaries will be involved.

  • It offers two benefit options to choose from – Level Sum Assured and Increasing Sum Assured.

  • Non-Indian Residents (NRIs) can also avail of this policy even if they are not present in the country but for medical tests, they should be present in the country.

  • The insured person has the flexibility to choose the tenure of the policy that ranges from a minimum of 10 years to a maximum of 40 years.

7. Max Life Smart Term Plan

Max Life Smart Term Plan is a flexible plan that caters to people from different walks of life and age groups so that the policy-seeker can customize the insurance coverage by choosing the suitable benefits according to his or her convenience. It is a comprehensive term plan that provides financial protection against 40 critical illnesses.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • This plan returns the premium upon surviving the policy term under the base policy.

  • It provides comprehensive protection against 40 critical illnesses including kidney failure, heart attack, cancer, disability, death, and many more.

  • Under this plan seven different variants for death benefit payout are available.

  • This plan offers multiple payout options such as Single Pay, Regular Pay, Pay till 60 days, and Limited Pay.

  • It offers a 5% loyalty discount for existing policyholders. One can avail of the discount if his or her policy is in the premium paying stage or paid-up stage.

  • For non-smokers lower rate of premium is being offered by the policy.

8. PNB MetLife Mera Term Plan

PNB MetLife Mera Term Plan is designed to ensure that your family is taken care of even in your absence. It is a comprehensive term plan that offers the option of increasing monthly cover by 12% per annum. The policyholder can also ensure his/her spouse is under the same policy.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • Even with an affordable premium one can get his/her family all-rounded protection with a maximum sum assured of 50 crores.

  • You can also cover your partner under the same policy.

  • The plan offers four pay-out options to choose from and those are – Full Lump Sum Payout, Payout as Lump Sum + Regular Monthly Income, Payout as Lump Sum + Increasing Monthly Income, and Payout as Lump Sum + Regular Monthly Income till the child turns 21.

  • One can avail of tax benefits under Section 80C of the Income Tax Act.

  • It provides an option to pay premiums for a limited term.

  • It provides life cover till the age of years.

9. SBI Life eShield Plan

SBI Life eShield Plan is a non-linked and non-participating term insurance plan which is one of the most affordable ones. This plan offers several benefit structures, such as Level Cover and Increasing Cover, and also two rider options. Discounts are also offered under certain clauses.

Key Highlights and Features:

Here are the benefits of this plan as follows.

  • Two benefit structures with inbuilt Accelerated Terminal Illness Benefit for comprehensive coverage are offered by this policy.

  • To enhance coverage of the insured, this plan comes with two rider benefit options to choose from and they are SBI Life – Accidental Death Benefit Rider and SBI Life – Accidental Total and Permanent Disability Benefit Rider.

  • One can avail of a discount on premiums if the insured is a non-smoker.

  • One can also avail of a second medical opinion from a panel of medical experts

  • The online process of this plan is seamless, easy, and customer-friendly.

  • You can avail of tax benefits on payment of premium under section 80C of the Income Tax Act, 1961.

Which Factors To Consider Before Investing in a Term Insurance Plan?

To secure your dearer ones’ future, buying a term insurance policy is necessary as it financially secures your family in case of your untimely unfortunate demise. But there are few factors that you need to keep in your mind before selecting a suitable term insurance plan. The important factors are mentioned as follows.

  • Understand your requirements and decide the sum assured – Before purchasing any term plan, it becomes necessary to understand your requirements and decide the sum assured accordingly. Policyholders should ideally select an amount that they think will be adequate for their family to maintain their lifestyle in their absence.

  • Decide policy duration – How to choose a term plan with the right policy duration depends on multiple factors. Some of the major factors are as follows.

    1. Your present age. Usually, the younger you are, the longer your policy term and the lesser your premium would be.

    2. Your expected retirement age

    3. Your current income

    4. Your expected rise in income in the next few years

    5. Your financial responsibilities at present and in future

    6. Your future plans after retirement.

    7. Major expenses expected in the future like a wedding, travel, education, children, medical costs, etc.

  • Decide the type of policy – There are different types of term policies that are available with different countries in India like Level Term Plan, TROP Plan, Increasing Term Plans, Decreasing Term Plans, and many more. On the basis of the understanding of your requirements, you need to analyze the plans that are available. Then only you can understand the most suitable one for you. It would be advisable that compare the different available plans online as it makes your job easier to be done. After doing the in-depth research and thorough analysis select the most convenient one that can cater to most of your needs.

  • Select the right insurer – Selecting a proper insurance company is always important because you have to deal with them till your policy expires. There are a wide number of insurance companies n India that offer term insurance plans. But for selecting the right one, you need to do research on the basis of the following factors.

    1. Claim settlement ratio

    2. Solvency ration

    3. The financial background of the company.

    4. Clients’ feedback

    5. Reliability

    6. Extensions or add-on covers.

    7. Inclusions and exclusions

    8. Rider benefit options

  • Decide on the premium payment mode – It is one of the important factors in deciding how to choose a term plan. Many policies offer the option of a single lump-sum premium as well as a regular premium. Policyholders should opt for the former only if they have a substantial amount of extra cash that they can spare.

  • Intimidate the existing policy details – Having two similar insurance policies does not mean double benefits. If you have an existing insurance policy, you must disclose the policy number, company, and other required details to your new insurer. If you fail to do so, it may affect your claim process.

Frequently Asked Questions

The commonly required documents are as follows.

  • Pan card
  • Valid ID proof.
  • Valid age proof.
  • Valid income proof
  • Valid address proof.
  • Recent passport size photographs.
  • Any other document that is demanded by the insurer.

The general exclusions are as follows.

  • Consumption of drugs, liquor, or any other intoxicating substances that are not prescribed by a registered medical practitioner.
  • Suicide
  • Complications due to pregnancy or childbirth.
  • Self-inflicted injuries
  • Act of criminal nature.
  • War, war-like situation, strike, or any other public unrest.
  • Death due to natural catastrophes.

In term plans, you also have an option to increase the level of insurance coverage at different stages of your life. The percentage of increase depends purely on your insurer and on the type of plan selected.

Yes, natural death is covered under term insurance policies.

Yes, natural death is covered under term insurance policies.

Yes, it is possible. In that case, you need to declare it along with the other existing policies to your new insurer.

No, it is not possible to change the duration of the coverage after the policy has been issued. But, some policies allow for extensions in the coverage period on some occasions.

Yes, you can. In that case, you have to do it within the free-look period offered by the plan.

Yes, you can. Most of the insurers are open to the online facility.

In that case, the legal heir of the claimant becomes the beneficiary. However, he/she only can avail of the benefits after attaining the age of 18.

In that case, the insured has to nominate other beneficiaries within the knowledge of the insurer.

You can avail of deduction up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Yes, you can. Most of the insurance companies keep the term plans open for the NRIs too.

No, you cannot as these policies do not have maturity benefits and surrender value.

Yes, even if you are an occasional smoker or alcohol user, you have to declare yourself in the proposal form.
Yes, you can. For that, you have to fill up the nomination form and submit it to the insurer at any time before the maturity of the policy.