Term insurance, who needs it, right? Well, if you are a living being with people dependent on you, then we are pretty sure you do. So, for you, we have listed below the top 15 best term insurance plans in India (2020).
Insurance is advantageous to anyone looking to safeguard their family and themselves from financial risks. Life is full of uncertainties as you cannot have control over the sudden mishappenings in your life.
Having an appropriate insurance policy is significant as it ensures that you are protected financially to confront any health problem in life; therefore, insurance is a vital element of financial planning. Insurance can play a major role in your financial planning by giving you financial security when it is required most. One of the most popular types of insurance is Term Life Insurance.
The term insurance plan is a pure risk cover and most economical form of life insurance. This type of insurance provides financial protection to your family in your absence. The foremost intention of buying term insurance is to offer a financial shield to your loved ones, which are reliant on you for their livelihood. There are numerous term insurance plans on sale in the market. Still, it is imperative to find the best term insurance plans, especially for a person who is the single earning member of the family and has dependents, as death is an inevitable truth and accidents or mishaps are never predicted.
Now, how can you choose the best term insurance plan? As a matter of fact, the best term insurance renders the most worth for money’s proposition. Term insurance plans layout the highest insurance cover at a cost-effective premium rate.
Table of Content
- 15 Best Term Insurance Plans in India (2020)
- Term Insurance – What does it mean?
- The need for Term Insurance
- Benefits of Term Insurance Plans
- 1. SBI Life eShield
- 2. HDFC Life Click 2 Protect 3D Plus
- 3. ICICI PruiProtect Smart
- 4. LIC e-Term Insurance Plan
- 5. Max Online Term Plan Plus
- 6. PNB MetLife Mera Term Plan
- 7. SBI Smart Shield
- 8. Aegon Life iTerm Plan
- 9. Aviva iLife Plan
- 10. Bajaj Allianz eTouch Online Term Plan
- 11. Bajaj Allianz iSecure Term Plan
- 12. Kotak Preferred eTerm Plan
- 13. Aditya Birla Sun Life DigiShield Plan
- 14. Bharti AXA eProtect Term Plan
- 15. TATA AIA Life iRaksha Supreme Online Term Insurance Plan
15 Best Term Insurance Plans in India (2020)
Before we start exploring various best term insurance plans, you should take a proper idea of what is term insurance.
Term Insurance – What does it mean?
When we think about some of the best and most affordable insurance to safeguard the future of our near and dear ones from uncertainties, Term insurance stands amidst them. Term insurance plan is a simple plan, in which if the insured dies within the term of the plan, his/her family or the nominee selected by him/her while registering for the plan would get the amount assured in the plan or policy. No maturity amount is present in the term insurance plan, as such insurance plans have risk or uncertainty coverage only, and that also if something happens within the term period. An individual can receive nothing back at the time of maturity. Additionally, different term plans come with different term plan benefits.
The need for Term Insurance
Your whole family, your spouse, children, and parents (in some cases) are dependent on the earning members of the family. If you are the sole earning member and the head of the family, what would happen if you would not be there anymore? The loss of losing a family member cannot be compensated by anything. It also influences the financial status of the family. It also affects children’s proper education and upbringing, children’s marriages, and the day-to-day life of the spouse who would become a single parent. One of the best options to get your family secure from such fatalistic mishappening in life is to opt for a term insurance plan. These plans come with low prices and render high insurance cover. It is amidst the best options to protect your family.
In previous times only LIC was there as the sole insurance policy provider, but nowadays, various private insurance provider companies are contending with LIC.
Benefits of Term Insurance Plans
Some major benefits of a term insurance plan are as follows:
- Obtaining a lump sum amount on the sudden demise of the insured.
- You receive a lump sum amount on the accidental death of the insured.
- You receive a lump sum amount on disability or critical illness.
- It offers financial protection for your loved ones.
- See off loans and liabilities
- Supplementary income in case of hospitalization due accident.
Currently, there are several insurance providers that offer various term insurance plans with different term periods, such as 5 years, 10 years, 15 years, etc. Most term insurance plans nowadays come with some additional benefits and features of conversion into a stable and lasting life insurance policy, disregard of the health state of the insured person. Amongst the numerous term life insurance policies in the market, choosing the best one is possible only by comparing the better ones. To help you out of this, we have discussed 15 best term insurance plans in India here:
1. SBI Life eShield
SBI Life Shield in amidst the apex affordable term insurance plans. It offers various term insurance plan options to meet the varied needs of customers. The great feature of this plan is that the customers who follow a healthy lifestyle are offered low premium rates. The plan has other additional benefits such as level cover and increasing cover and also offer to inhibit accidental death cover and tax benefits to the insured.
- Best term insurance plan in India, with a consistent premium payment option.
- The plan comes with an entry age limit of 18 years – 65 years.
- It offers three varied options to choose from, and the maximum maturity age is 70 years.
- Offered tax exemption features under section 80C of the Income Tax Act.
2. HDFC Life Click 2 Protect 3D Plus
It is one of the best online term plans. It renders an extensive insurance cover to the family of the insured at modest premium rates. This plan provides financial security to the family in case of any mishap to the insured during the term period.
- The policyholder can opt from 9 varied plans, as suitable.
- You get a free-look period of 30 days.
- Non-smokers and female buyers are offered reduced premium rates.
- It gives tax benefits u/s 80D and 10(10D) of the I.T. Act.
3. ICICI PruiProtect Smart
ICICI PruiProtect Smart plan stands in the top term insurance plans and gives different life cover options to opt for. As an inclusive plan, it provides financial security to the family of insured at economical premium rates and renders rider benefits like accidental death and critical rider benefits to inflate the policy cover.
- This plan can be purchased online in an easy way.
- It provides substantial coverage from illness, disability, and death.
- The plan offers a discount on premium rates for female policy buyers.
- The policyholder can adopt any of the 3 payment options available, i.e., monthly income, lump-sum, and increasing income.
4. LIC e-Term Insurance Plan
LIC e-Term is another best online term plan that renders financial protection to the insured at cheap premium rates. The buying process for this plan is easy. The nominee or policyholder’s family members receive the death benefit on the sudden death of the policyholder during the term of the policy.
- It only offers a death benefit (i.e., on sudden demise).
- It offers the insured, freedom to select the policy period, ranging from 10 years to an extreme limit of 35 years.
- 70 years is the maximum maturity limit of the policy.
5. Max Online Term Plan Plus
One more best term plan is Max Online Term Plan Plus. It is a non-participating pure term plan offering 3 brief life cover options. This plan also gives accidental death rider benefit to magnify the policy cover. Along with this, you get a premium waiver benefit, in which the policy sustains in case the insured is unable to pay the premium due to illness or disability.
- Ideal economical online term plan which can be purchased effortlessly.
- It offers 3 varied payout options to select from.
- This plan offers flexibility in the mode of premium payment.
- Thi plan gives extra rider benefits to amplify policy cover.
- The policyholder also gets tax benefits under section 80C, 80D, 80DD, and 10(10D) of the Income Tax Act.
6. PNB MetLife Mera Term Plan
The PNB MetLife Mera Term Plan offers protection to insured at cheap rates. It also offers a choice of increasing the monthly cover with 12% p.a. Along with a cover for a spouse under the same policy, and other than the death benefit.
- Extensive term plan, which can be bought online.
- You can extend the policy coverage.
- The plan proposes individual coverage to the spouse of the insured under the same plan.
- Non-smokers and female buyers are offered low premium rates.
- This plan has a maturity age of maximal 75 years.
- Tax benefits can be availed by the policyholder under section 80C of the Income Tax Act.
7. SBI Smart Shield
SBI Smart Shield is one of the best term insurance plans offered by SBI that is secured and provides complete financial protection to the family at affordable premium rates. SBI Smart Shield is an individual, non-linked, and non-participating term life insurance plan to make your family financially secure at uncertain times.
This term insurance plan offers great affordability as it provides rider benefits too at affordable costs.
- This term plan offers a free-look period of 15 days, making it the most affordable term plan.
- You get four different life cover options.
- The additional rider benefits enhance the coverage of this term plan.
8. Aegon Life iTerm Plan
This term insurance plan comes with a lot of benefits in India. Aegon Life iTerm Plan provides inbuilt terminal illness benefits and is one of the pure term insurance plans. This plan offers rider benefits like accidental death rider benefits and critical illness benefits, which increases the term plan coverage.
- This plan has a simple process to be purchased online.
- The minimum age required to get this term plan is 18 years, and in case of the sudden death of the insured, the beneficiary gets the death benefit of the policy.
- The plan provides lower premium rates for females and non-smokers.
- The plan provides life coverage of 80 years.
9. Aviva iLife Plan
It is one of the best term insurance plans in India because of its provision of very affordable premium rates. The plan provides various benefits to the insured and their families such as death benefit at the time of the demise of the insured, and also the tax benefit under section 80C of Income Tax Act 1961.
- This term plan provides a simple and hassle-free method of purchasing it online and most affordably.
- In case of death, the plan offers an annual payout for 15 years to the family of the insured.
- 70 years is the maturity age of this plan.
- You get two payout methods with this plan.
10. Bajaj Allianz eTouch Online Term Plan
Bajaj Allianz eTouch Online Term Plan is one of the best term plans from Bajaj Allianz Life Insurance. It is a non-participating and pure term insurance plan, this plan has four life cover options. The term plan offers various benefits to the family of policyholders, such as death benefit and tax benefit.
- You can purchase this plan online.
- The plan offers complete financial protection to the family of insured in case of uncertain demise.
- The death benefit can be availed in two different payout methods.
- The plan offers lower premium rates in case the insurance buyer is a female or a non-smoker.
11. Bajaj Allianz iSecure Term Plan
The Bajaj Allianz iSecure Term Plan offers you life cover at lower premium rates, which makes it the most affordable term plan. This plan provides financial security to your family as they receive the death benefit in decent installments. It is a non-linked, non-participating, and individual term insurance plan that assures you to fulfill all the financial needs of your family.
- This plan provides a level term cover at a low cost.
- It offers rewards to people who maintain a healthy lifestyle.
- Non-smokers are offered premium rates.
- You get the flexibility to select the premium payment frequency.
12. Kotak Preferred eTerm Plan
Kotak Preferred eTerm Plan provides a high level of protection to your family in case of any unfortunate event. This plan offers lower premium rates to non-smokers and female insurance buyers and offers a death benefit to the family of policyholders in case of demise. Moreover, Kotak Preferred eTerm Plan provides you with additional options to enhance the coverage of your term plan against total and permanent disability and accidental death.
- This plan gives you two types of death benefit options – Recurring payout and immediate payout.
- It offers recurring payout, as well as immediate payout, and both can be availed in monthly installments.
- The plan gives you the option to pay the premium either for the entire duration or for a limited tenure.
13. Aditya Birla Sun Life DigiShield Plan
Aditya Birla Sun Life DigiShield Plan is one of the 4 term plans from Aditya Birla Sun Life Insurance. It offers the lowest premium rates among all. It provides 4 rider benefits – Accidental Death and Accidental disability rider, Critical Illness rider, Surgical Care rider, and Hospital Care rider.
- It offers an inbuilt terminal illness benefit.
- It allows you to add your spouse along with you to this term insurance plan.
- It is the only online plan among all other plans of ABSLI, and hence it can be purchased easily.
- The minimum entry age for this term plan is 18 years, and the maximum is 65 years.
- 85 years is the age of maturity.
14. Bharti AXA eProtect Term Plan
Bharti AXA eProtect Term Plan is an efficient term plan for high sum assured of more than Rs 25 lacs. This plan does not provide any bonus facility, and it can be purchased online. Premiums are paid until the policy term ends, and in case the insured dies within the policy tenure, the beneficiary receives the sum assured as the death benefit, and the policy gets terminated.
- It is a pure term insurance plan and offers a death benefit.
- This plan offers a special benefit called Family Care benefit under which the family receives a cheque of Rs 1 lac within 48 hours of claiming.
- There is no maturity benefit.
15. TATA AIA Life iRaksha Supreme Online Term Insurance Plan
This plan is among one of the 4 term insurance plans offered by TATA AIA Life. It ensures you affordable and attractive prices. You can now purchase this plan online. The age of the insurance buyer must be between 18-70 years at the time of application.
- The plan provides Life Protection plans and financial protection against the unfortunate death of the insured.
- It offers 3 different premium payment methods – Regular Pay, Limited Pay, and Single Pay.
- An individual with a healthier lifestyle, non-smokers, and female applicants are eligible for lower premium rates.
Multiple companies are offering several term insurance plans in India. If you wish to purchase a suitable plan, we recommend you to check and compare a few term insurance plans before investing your money in it.
Recommended: Top 10 Health Insurance Plans For You In India
Before going for a plan, run a complete check for its key features, eligibility criteria, and benefits. A best term insurance plan will help you live your life without worrying about future difficulties; hence, choose it wisely.