Best Term Insurance Plans in India 2024

Best Term Insurance Plans in India 2024

What happens if the earning member in the family suddenly collapses and dies? What happens if the head of the earning family has an accident and is not in this world? While the loss of a family member cannot be replaced by anything, it also affects the financial condition of the family. Such loss can ruin the education of children, marriage of daughter and existence of spouse. Taking a term insurance plan is one of the best ways to stay safe from such sudden negative surprises in life. Term insurance plans will come with low cost and high sum insured and will protect your family against such loss. How to choose the best term insurance plan? Which are the best term insurance plans for 2024

Best Term Insurance Plans in India

What is term insurance plan?

If you are aware of term insurance plans, skip this section. Term insurance plan is a simple insurance plan, where if the life insured dies, their family/nominee will get the sum assured. There is no maturity amount in a term insurance plan. These are insurance plans that have only risk coverage. No one will get any money back on maturity.
As per IRDA guidelines, after 3 years from the date of policy, a claim cannot be rejected citing any reason whatsoever. Hence, claim settlement ratio is no longer a major criterion in deciding the best term insurance plan. However, it still needs to be considered as a point of view while buying a term insurance plan.

How we filtered the top and best term insurance plans in India

There are several criteria that can be considered while choosing the top and best term insurance plan in India. However, I have considered 4 key parameters while choosing the right term insurance plan.

1) Insurance Claim Settlement Ratio (CSR): Though not the major criterion for considering CSR, it has to be given importance. As of 2015-2016, there are 62 insurance companies registered in India. However, only 10 companies have declared a claim settlement ratio greater than or equal to 95%. CSR is nothing but the insurance claims on the total insurance claims received by the insurance company. Lower CSR means, the company is rejecting more claims and your family may be a victim of it in future. I have filtered companies that have a claim settlement ratio of 95% to 100%. 

2) Reputation of the insurance company: No one can tell you how good an insurance company is. The longer the term of the registered insurance company, the better. So, we have filtered out those insurance companies that have a good operating history of more than 10 years.

3) Additional Features in Term Insurance Plans: What about a good insurance company that doesn’t offer much choice? No one would really want to pick it up. I have filtered term insurance plans which are basic features + additional features which will be helpful for individuals who are planning to take a term plan.

4) Low Premium Plans: While premium is not the only criterion in choosing an insurance plan; We have preferred term insurance plans which are being offered with more features at lower premiums. Term insurance should be compared before buying a term insurance plan. You can buy term insurance online from the respective insurance portal.

Here are the top 8 best term insurance plans for 2018-2019. We are giving the salient features of these term insurance plans.

1) LIC E-Term Insurance Plan

• LIC is a well-known and trusted brand in the insurance segment in India. One of the best term insurance plans that comes from LIC is the e-Term term insurance plan. Here are the features of LIC term insurance plan.
• Minimum entry age is 18 years and maximum entry age is 60 years
• The maximum maturity age is 75 years.
• The policy term ranges from 10 years to 35 years.
• The minimum sum assured is Rs 25 lakh. The minimum sum insured for a non-smoker is Rs 50 lakh.
• Maximum Sum Assured – No limit.
• No rider is available in this plan
• The claim settlement ratio for the financial year 2016-17 is 98%.
• All types of death including accidental death are covered under this plan, except suicide during the first year.
• One can propose only in one’s own name and one cannot name one who is not working.
• Premium is approx. Rs 19,700 per annum (excluding taxes) for a sum assured of Rs 1 crore for a 30 year policy for a 30 year policy. Once the premium is calculated, it will not change during the term of the policy.
• If you are planning to work abroad or go on vacation, LIC term insurance plan will still provide insurance coverage.
• LIC e-Term term insurance plan is one of the top online term insurance plans in 2018-2019 because of its brand value as well as being trusted by millions in India.

Salient Features of the Scheme:

• Competitive rate of premium for insurance.
• Premium paid for one year to get life insurance coverage.
• The rate of premium varies for the age group mentioned.
• Members in the age group of 21 years to 64 years are eligible to join this scheme.
• Spouses in the age group of 18 years to 64 years can join this scheme.
• No health or medical underwriting is required to join the plan.
• Life insurance coverage of Rs. 10 lakh for ICAI member.
• Life insurance coverage of Rs. 5 lakh for spouse.
• Settlement of claims through ICAI.
• The plan is renewable at the option after 1 year on completion of the stipulated period.

2) Max Life Term Insurance Plan Plus

Given below are the salient features of this term insurance plan from Max Life.

• Minimum entry age is 18 years and maximum entry age is 60 years
• The maximum maturity age is 70 years.
• The policy term ranges from 10 years to 40 years.
• The minimum sum assured is Rs 25 lakh.
• Maximum Sum Assured – Rs 100 crore.
• Comprehensive accident benefit rider is available in this plan.
• This plan is available in 3 coverages a) Basic life cover b) Basic life cover + Monthly cover c) Basic cover + Increasing monthly income
• The claim settlement ratio for the financial year 2016-17 is 97.8% which is the highest among all insurance companies.
• The basic premium is approx. 9,000 per annum (excluding taxes) for a 30-year policy for a 30-year policy for a sum insured of Rs.1 crore (excluding taxes).
• Max Life Term Insurance Plan Plus is one of the best term insurance plans for 2018 that comes with a high claim settlement ratio and low premiums.

Term plans offered by Max Life Insurance can be considered as the cornerstone of financial planning. These plans keep the family of the insured financially secure in case of the unfortunate event of his/her death. One of the main advantages of Max Life term plans is that they provide high coverage to the policyholder at an affordable premium. You can also combine these term insurance plans with various riders offered by the insurer to enjoy additional coverage by paying additional premium at the time of policy purchase.

Why Buy Term Insurance Benefits?

Max Life term insurance policy offers many benefits to its valued customers. Below are some reasons to buy it,

• High coverage at low premium: Max Life term insurance plans offer significant life cover at affordable rates. The sooner you buy the Max Life term insurance plan, the less premium you will have to pay.
• high maturity age: Under Max Life term insurance plan, you can choose a long term policy cover till the age of 85 years.
• Riders for Extra Benefit: Max Life term insurance plans come with riders that you can add to your Max Life term insurance plan to avail additional benefits. For example, Max Life Term Insurance Waiver of Premium Plus rider offers the benefit of waiver of all future premiums based on the terms and conditions mentioned in the term insurance policy.
• Multiple premium payment options: You get flexible premium payment options (regular payout/limited payout options) under Max Life term insurance plan.
• tax benefitsMax Life term insurance plan offers tax benefits under section 80C under the Income Tax Act.

3) HDFC Click 2 Protect Plus Term Insurance Plan

Given below are the key features of HDFC Click 2 Protect Plus term plan.

• Minimum entry age is 18 years and maximum entry age is 65 years
• The maximum maturity age is 70 years.
• The policy term ranges from 5 years to 40 years.
• The minimum sum assured is Rs 10 lakh.
• Maximum Sum Assured – No limit.
• There are many options available in this plan like Life Option, 3D Life Option, Extra Life Option, Return of Premium Option etc.
• The claim settlement ratio for the financial year 2016-17 is 97.6%.
• The basic premium is approx. 13,000 per annum (excluding taxes) for a 30-year policy for a 30-year policy for a sum insured of Rs.1 crore (excluding taxes).
• This term plan has many riders which make it a unique term insurance plan for 2018-2019. One can review HDFC Click 2 Protect 3D Plus before considering this insurance plan.

Why Buy HDFC Life Term Insurance?

HDFC Life Term Insurance offers a range of benefits to its customers. Some of the benefits offered by them are detailed below:

• High coverage at low premium: The terms offered by HDFC Life Insurance are quite affordable and provide significant coverage. Also, the sooner you buy a term insurance plan in life, the lower the premium you will have to pay for a term insurance plan.
• Financial Security: The unfortunate death of the sole breadwinner of the family is not only distressing but also brings forth various financial liabilities for the family. However, by purchasing a term insurance plan by HDFC Life Insurance, the family members of the policyholder receive financial assistance to meet their daily expenses in the form of lump sum or installments by the insurance company in their absence.
• Flexibility: HDFC term insurance plans offer policyholders a variety of coverage options, giving them the freedom to choose a term plan as per their specific needs and budget.
• MWPA (Married Women’s Property Act) Nomination Benefit: In order to ensure that the death benefit is only legally protected for the family members of the policyholder, one can avail the benefits offered by HDFC Life Insurance under the MWPA (Married Women’s Property Act). Can enroll in term insurance plans. ,
• Tax Benefits: As per Section 80C and 10(10D) of the Income Tax Act, a policyholder is eligible to avail tax benefits for term plans offered by HDFC Life Insurance against the premiums paid.
• Add-ons: HDFC term insurance plans can be purchased with multiple add-on covers or riders to gain additional benefits to enhance coverage and ensure overall protection. Some examples of various add-ons offered by HDFC Life Insurance include critical illness cover, an accidental disability rider, etc.

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