Top and Best Term Insurance plans in India for 2015
There are various term insurance plans in India. However, we may always get confused on assessing which is the top and best term insurance plan in India to buy. Insurance is a need. Instead of buying money-back insurance plans, one can buy a good term insurance plan with low premiums and secure their family. Which are the popular term insurance plans in India? What are the top and best term insurance plans in India to be considered.
What is a Term Insurance Plan in India?
If you are aware of this, you can skip this section. In simple terms, the Term insurance plan is one which provides risk coverage to the nominee in case of death of the policy holder without any maturity amount.
Wikipedia defines a Term insurance plan as,
“If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time
Also Read: Should you opt for Religare Joy health insurance for maternity and new born cover?
What are the features of Term Insurance Plans?
- Term insurance plans are designed for risk coverage only. In case of death, the sum assured is paid to the nominee.
- Zero maturity amount.
- Tax benefits u/s 80C for the premiums paid
- Premium depends on age, the sum assured, life style (smoker/non-smoker) and any premium discounts for high sum assured etc.,
Top and Best Term Insurance plans in India for 2015
1) LIC e-Term Insurance Plan
LIC has highest life death claim settlement ratio of 98.14% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 75 Years
- Mimum Sum assured – Rs 25 Lakhs
- Maximum Sum Assured – No limit
- Policy term – 10 to 35 years
- This is the Pure Term plan
- Differential premium rates for Smoker/Non-Smoker lives
- Proposal on own life ONLY will be considered
- No riders are available in this policy
- LIC e-Term is no doubt a best term insurance plan in India compared to other competitors / private insurance companies.
Also Read: Should you buy LIC online e-Term Term Insurance plan?
2) ICICI Pru I-Care II Term Insurance plan
ICICI Pru life insurance has a second highest life death claim settlement ratio of 94.10% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 65 Years
- Maximum Sum Assured – Rs 50 Lakhs
- Policy term – 5 to 30 years
- Option to select accidental death benefit where in case of death of policy holder due to an accident, an additional equal sum assured would be paid to the nominee. This feature comes with additional premium.
- ICICI Term insurance is top term insurance plan available among private insurance companies based on high claim settlement ratio.
3) HDFC Click 2 Protect Plus Term Insurance Plan
HDFC has a third highest life death claim settlement ratio of 94.01% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 65 years.
- Maximum age at maturity – 75 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – No limit
- Policy term – 10 to 40 years
- Increase life coverage at key milestones. This makes this as unique term insurance plan.
- There are 4 plan options to receive death benefit.
Also Read: Complete review about HDFC Click 2 protect plus term insurance plan
4) Max Life Term Insurance Plan
Maxlife has 4th highest life death claim settlement ratio of 93.86% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 70 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – Rs 100 Crores
- Policy term – 10 to 35 years
- There are 3 plan options to receive death benefit.
- Get additional cover by way of rider sum assured in case of Death or Dismemberment (impairments are listed under the Rider contract) due to accident. You have the option to add this rider at the time of purchase of the base policy or anytime during the policy term.
- Max Life Online Term offers lower premium rates for Non-Smokers.
- There are discounts built in the plan if select higher sum assured.
- Lower premium rates for female lives.
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 70 Years
- Minimum Sum assured – Rs 20 Lakh
- Maximum Sum Assured – No limit
- Policy term – 5 to 30 years
- Available in 4 different options. Level Cover, Level Cover with Accidental Death Benefit, Increasing Cover, Increasing Cover with accidental death benefit.
Also Read: How claim settlement ratio would influence your decision to buy term insurance plan?
6) Kotak eterm / Preferred Term Insurance Plan
Kotak Life has one of the highest death claim settlement ratio of 90.7% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 65 years.
- Maximum age at maturity – 75 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – No limit
- Policy term – 10 to 40 years
- Waiver of Basic Premiums on Total & Permanent Disability.
- Customized Claim Payout Option
Readers, what is your view on some of these top and best term insurance plans in India?
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Suresh
Top and Best Term Insurance plans in India
Hi Suresh,
Thanks for article. Very helpful.
Need your expert opinion. I am Planning to buy 1 Cr Term insurence plan.
Should I go with single company for 1 Cr or two different companies with 50-50 lakhs?
I am planning to go with below approach: Is my approach right?
1. 50 lakhs simple plan with 30 year term: SBI e-shield
2. 50 lakhs Advance plan with 40 year term : HDFC Click to protect plus with income option
Could you please give your frank opinion on same.
Go for 2 companies, I feel this is better.
Hi Suresh,
There is small correction in 2 Term insurance details. It should read ICICI but currently reading ad HDFC.
HDFC has a second height life should read ICICI
Thanks
Santosh
Yes yes, I have corrected. Thanks my dear friend Santosh.
Hi Suresh,
Nice information, but you didn’t concluded which is best? Can I assume the order you described each as the best?
I thought of taking LIC e-term but I feel that I may get reject because of my obesity. I feel choosing ICICI is better because it is having rider options too.
Kindly suggest me.
Thank you
Kishore
Hi Kishore, Long time no comment. I hope you are finding our articles useful, else give some suggestions. Regarding your queries. Yes, I have not concluded, but you can consider in the same order. LIC e-Term, yes I heard many rejections. I have personally taken ICICI Pru term insurance policy. I feel you can consider HDFC / ICICI Term insurance policies.
Pls correct- name of HDFC mentioned in place of ICICI in point no. 2
Yeh, Snipper Thanks. I have corrected it. By the way, what do you do. Where are you investing your savings ?
Hello sir,
I am Shalin, Age : 25.
I was planning to take
AEGON RELIGARE ONLINE TERM PLAN.
As it covers till 75 years of my age..
Will it be a good idea?
Or i should go for some other insurance company?
Please reply me as soon as possible..
THANK YOU..
Shalin, Considering taking term insurance which has highest settlement ratio. These are indicated in this article.