Top 10 Best Term Insurance Plans in 2016

Top and Best Term Insurance plans in 2016Top 10 Best Term Insurance Plans


When someone approaches me for financial planning (of course I do it for free now), my first advice to them is to take a best term insurance plan. This is the first step in financial planning. While investments would yield returns to you, term insurance plans protects your family and ensures that you reach all your financial goals even in your absence. Which are the best Term Insurance Plans in 2016? What are the Top 10 Best Term Plans to be considered in 2016? I would provide all comprehensive details about the top term insurance plans and its features.

What are term insurance plans?


If you are already aware, skip this section. Term insurance is a life insurance policy that provides coverage for a certain period of time where if the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. There is no maturity amount in term insurance plan. These are basically only for risk coverage and not money back plans.

As per recent guidelines from IRDA, after 3 years from the date of policy, a claim cannot be rejected citing any reason. Hence, claim settlement ratio is no more a major criteria in deciding the good term insurance plan. However, this is one of the criteria which I considered as part of ranking the overall weightage for term insurance plans.

Top 10 Best Term Insurance Plans in 2016


Here are the Top 10 Term Insurance Plans for 2016. We are giving major features of each and every term insurance plan.

1) LIC e-Term Term Insurance Plan

I give top preference to LIC though it charges high premium. We need to pay high premiums for its brand.

  • Minimum Entry age is 18 Years and Maximum entry age is 60 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 10 years and 35 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • No Riders available in this plan
  • Claim settlement ratio of FY 2014-15 is 98.19%
  • Premium is approx Rs 8,900 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.
  • I feel LIC e-Term Plan is one of the top term insurance plan as it has brand value as well it has good trust.

2) ICICI iProtect Smart Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 20 Years and Maximum entry age is 65 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 10 years and 30 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • There are riders like Waiver of Premium on Disability, Critical Illness Benefit, Death Benefit/Terminal Illness Benefit available in this plan.
  • Claim settlement ratio of FY 2014-15 is 93.8%
  • Premium is approx Rs 5,100 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.
  • I feel ICICI Term plan is one of the best term insurance plans as it covers 34 Critical Illness which are useful.

3) HDFC Click 2 Protect Plus Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 10 years and 40 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • Extra Life Option, Income Option, Income Plus option and Accident Disability Rider available in this plan.
  • Claim settlement ratio of FY 2014-15 is 90.5%
  • Premium is approx Rs 5,800 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.
  • This has several riders which makes this as unique term insurance plan.

Also Read: Complete Review of HDFC Click 2 Protect Term Insurance Plan

4) Max Life Online Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 60 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 10 years and 35 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – Rs 100 Crores.
  • Comprehensive Accident Benefit Rider available in this plan.
  • Claim settlement ratio of FY 2014-15 is 96.03%
  • Premium is approx Rs 4,200 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

5) Bajaj Allianz iSecure Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 60 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 10 years and 30 years.
  • Minimum Sum Assured is Rs 2.5 Lakhs.
  • Maximum Sum Assured – No limit.
  • There are no riders available in this plan.
  • Claim settlement ratio of FY 2014-15 is 91.85%
  • Premium is approx Rs 4,400 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

6) SBI Life eShield Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 5 years and 30 years.
  • Minimum Sum Assured is Rs 20 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accident Death Benefit rider available.
  • Claim settlement ratio of FY 2014-15 is 89.43%
  • Premium is approx Rs 3,500 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.
  • You can have complete review about SBI Life e-Shield Term Insurance plan.

7) Kotak Life Preferred e-Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 10 years and 40 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accident Death Benefit rider available in this plan.
  • Claim settlement ratio of FY 2014-15 is 90.73%
  • Premium is approx Rs 4,900 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

8) PNB Metlife Mera Term Insurance Plan


Below are some of the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 10 years and 40 years.
  • Minimum Sum Assured is Rs 10 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accidental Death Benefit Rider, Premium Waiver, Accidental Disability,  Critical Illness Rider and Serious Illness Rider available in this plan.
  • Claim settlement ratio of FY 2014-15 is 92.86%
  • Premium is approx Rs 5,200 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

Also Read: Review of Metlife Mera Term Insurance Plan

9) Canara HSBC OBC e-Smart Term Insurance Plan


Below are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 70 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 5 years and 40 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accidental Death Benefit rider available.
  • Claim settlement ratio of FY 2014-15 is 89.58%
  • Premium is approx Rs 4,200 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

10) Aegon Religare iTerm Insurance Plan


Some of the key features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 75 Years.
  • Policy tenure is between 5 years and 40 years.
  • Minimum Sum Assured is Rs 10 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accidental Death Benefit Rider, Waiver of Premium Rider on Critical Illness, Women Critical Illness Rider available in this plan.
  • Claim settlement ratio of FY 2014-15 is 89.78%
  • Premium is approx Rs 4,600 per annum for a 30 year non smoker for a 30 year policy for Rs 50 Lakhs.

Conclusion: I have taken ICICI Term insurance plan earlier and recently applied for HDFC Life Click 2 Protect Plus for additional risk coverage. My advice to you would be to consider term plans among top-10 indicated above. Term plans are best which comes with low premiums and high risk coverage. This should be your first step in financial planning.

Readers, have you taken term insurance plan from above top plans? What are your experiences?

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Suresh
Top 10 Best Term Insurance Plans in 2016

53 comments

  • Mandar

    Hi Suresh ,

    My age is 24.
    I want to start investing 1.5 L per year,
    Please suggest distribution and advice in each category,

    Goal 1.Midium risk
    Goal 2. Tax saving
    Goal 3.Secure life and medical expenses
    Goal 4.Liquidity
    Goal 5.Grow capital.

  • Anand

    Dont take LIC its costly.. you can choose double coverage with max & sbi

  • ankur

    hello

    My name is Ankur. I am a IT Professional.I want to buy a term insurance plan of min 50 lakh. which company and plan i go for. Thanks in advance

  • Prakash

    Hi Suresh ,

    I am Prakash and my Salary is 50 k and age is 31 Y.
    I investments are 1: CignaaTTk medical 2:Aegon Term Plan 3:In Bajaj Allianz.4: HDFC 24 k Annual 5:ICICI 36 K .
    just let me know i am on right track and what extra i need to do.

    Thanks & Regards
    Vp

    • Hi Prakash, You have made insurance  and investment plans. Consider taking term insurance plan and invest balance in mutual funds and other fixed income options. How much insurance cover do you have ? Does it cover for your risk coverage? Ask this question to yourself and take additional amount through term insurance. Don’t invest in insurance plans. 

  • Rahul

    I want to invest in mutual fund 1,000 p.m for 40 year which company mutual funds give me best return
    From
    Rahul Tiwari

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