Top and Best Term Insurance plans in India for 2015

Top and Best Term Insurance plans in IndiaTop 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. 

HDFC click 2 protect Plus-plan options

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.

Maxlife Term Insurance plan options

5) SBI Life e-Shield Term Insurance Plan
SBI life has one of the highest life death claim settlement ratio of 91.1% (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 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

Suresh KP

66 comments

  • Dev05

    Very informative article.

    Need your suggestion with choosing the best plan for myself.

    After some extent of analysis, I have shortlisted the following online term insurance plans (1 Cr)
    LIC e-term – 35 yrs
    ICICI Pru i-protect smart – All in one – 30 yrs
    SBI e-shield – Increasing cover with accidental death benefit

    The premium for LIC and ICICI policies is almost the same (with difference in benefits ofcourse!)
    SBI is on little lower side (again can’t comapre with the riders available with ICICI)

    Which one would you think is better?

    I have chosen only online plans and never gave a thought about offline plans. Do I need to do some analysis on offline plans as well?

    Also, is it advisable to go with 2 companies instead of one for a cover of 50 Lakhs each.

    Kindly let me know your views on this.

  • Arun-chennai

    in kotak life term policy it is sated that “waiver of premium for total & permanent disability” what does it means. how it really benefits buyer or simply marketing gimmick

  • feroz

    my cousin NRI working UAE i want to term plan which company insurance NRI member

  • Rajeswari

    hello sir nice article about term insurance.

    my age is 33 i would like to take term insurance for 1 crore along with critical illness rider cover. upto 75 years

    can i take with LIC for 1 crore OR split and take with 2 different companies

    also suggest me in detail what riders available

    thanks in advance

  • Sagar

    Hi Suresh,

    A friend of mine told me that her father has chosen a plan that will give a fixed 1 crore Rs. after 20 years. All they will invest is 1 lac per annum for 20 years. They won’t get any death benefit, just a fixed amount on maturity.

    Please enlighten me, this is toooo good to be true. How can a company guarantee such high returns?

    Regards,
    Sagar

    • Sagar, 7 years back, I have been told by LIC agent about LIC money plus in similar manner. I need to invest Rs 10K for 10 years and I would get Rs 30L in 10 years. My friends brought that plan and paid  more than Rs 70,000 and the investment amount is now only Rs 90K. Peopel would cheat with all such cheap tricks. Send me more about such plans, I would tell you more through an article. Would await your response

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