Top 7 Best Term Insurance Plans in India in 2017

Top 7 Best Term Insurance Plans in 2017 in IndiaTop 7 Best Term Insurance Plans in India in 2017


Life is full of surprises. There is no guarantee that an individual who has gone out from home would return back safely.  Many of us would have created beautiful goals for the family, children education or daughter marriage. However such goals would vanish with the loss of the earning parent in the family. One of the best ways to secure such goals is to take Term Insurance Plan. Term Insurance Plans would come with low cost and high sum assured and secures your family in such loss. How to pick-up a good term insurance plan? Which are the best Term Insurance Plans for 2017? What are the Top 7 Best Term Plans for 2017 that has high claim settlement ratio? Instead of simple sum assured, are there any unique term plans which are more features?

Also Read: How to choose a best Health Insurance Plan in India?

What are Term Insurance Plans?


If you are aware about Term insurance plan, skip this section.

Term insurance Plan is a simple insurance plan where if the individual insured dies, their family / nominee would get the sum assured. There is no maturity amount in term insurance plan. These are insurance plans that have risk coverage only. One would not get any money back or maturity amount at maturity.

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 it still needs to be considered as one of the point.

How I picked-up Best Term Insurance Plan in India for 2017?


There are several things that needs to be considered while picking up top and best term insurance plan in India. However, I have considered 4 major parameters.

1) Claim Settlement Ratio(CSR)


As of 2015-2016, there are 24 insurance companies which are registered in India. However, only 10 companies have declared claim settlement ratio of more than 90%. CSR means the ratio of settled claims over the total claims received by the insurance company. Lower CSR means, company is rejecting more claims and in future your family could be victim out of that. I have filtered companies that has high claim settlement ratio of over 93%.

2) Company Reputation and Operating history


How good is the insurance company? The higher the duration of the insurance company registered, it is better. If insurance companies are registered in last 3-5 years, are they good? Not at all. Hence, we have filtered Insurance companies that have good operating history of more than 10 years.

3) Good Features and more Options in Term insurance plan


What about good insurance company, that do not offer much options? No one would really want to opt for that. I have filtered Term insurance plan which are basic features + additional features that would be helpful for individuals who are planning to take term plans.

4) Low Premium


While Premium is not the only criteria, we have given preference to term insurance plans which are being offered at low premiums with more features.

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Top 7 Best Term Insurance Plans for 2017


Here are the Top 7 Best Term Insurance Plans for 2017. We are giving major features of each and every term insurance plan.

1) LIC e-Term Insurance Plan


Top and Best Term insurance plan 2017 - LIC eTerm insurance planLIC is a trusted brand and many of us believe in taking insurance plans from LIC. One of the best term insurance plans that come from LIC is e-Term Term Insurance Plan. Here are the features of this plan.

  • 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. For non smokers, minimum sum assured is Rs 50 Lakhs.
  • Maximum Sum Assured – No limit.
  • No Riders available in this plan
  • Claim settlement ratio of FY 2015-16 is 98%.
  • All kinds of death including accidental deaths are covered under this plan except suicide during first year.
  • Premium is approx Rs 15,622 per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
  • I feel LIC eTerm Term Insurance Plan is one of the best term insurance plan in 2017 as it has brand value as well trusted by many people in India.
  • You can Review LIC eTerm Insurance Plan here.

2) ICICI iProtect Smart Term Insurance Plan


Top Term insurance plan 2017 - ICICI iSmart term planHere are the key features of ICICI iProtect Smart Term Plan.

  • Minimum Entry age is 20 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 – Based on minimum premium of Rs 3,600 per annum.
  • 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 2015-16 is 95%
  • Premium is approx Rs 10,523 per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
  • I feel ICICI iProtect Term plan is one of the good term insurance plans as it comes with several riders which are useful.

3) HDFC Click 2 Protect Plus Term Insurance Plan


Below are the major features of HDFC Click 2 Protect Plus Term 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 Riders available in this plan.
  • Claim settlement ratio of FY 2015-16 is 95%
  • Premium is approx Rs 10,378 per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
  • HDFC Click 2 Protec Plus Term plan has several riders which make this as unique term insurance plan for 2017.

4) SBI Life eShield Term Insurance Plan


Good Term insurance plan 2017 - SBI eShield Term planHere are the key features of eShield Term insurance Plan from SBI.

  • Minimum Entry age is 18 Years and Maximum entry age is 60 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 in this term plan.
  • Claim settlement ratio of FY 2015-16 is 93%
  • Premium is approx Rs 13,443 per annum for a 30 year non smoker for a 30 year policy for 1 Crore sum assured.

5) Max Life Online Term Insurance Plan


Below are the major features of this term insurance plan from MaxLife.

6) Aegon Life iTerm Insurance Plan


Top and Good Term insurance plan 2017 - Aegon Life Term insurance planBelow are the major features of this plan.

  • Minimum Entry age is 18 Years and Maximum entry age is 65 years
  • Maximum maturity age is 80 Years.
  • Policy tenure is between 5 years and 62 years.
  • Minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – No limit.
  • Accidental Death Benefit Rider, Waiver of Premium Rider on Critical Illness, Women Critical Illness Riders available in this plan.
  • Claim settlement ratio of FY 2015-16 is 95%
  • Premium is approx Rs 6,636 per annum for a 30 year non-smoker for a 30 year policy for a sum assured of Rs 1 Crore

Also Read: Aegon Life iSpouse Term Insurance Plan – Is this a good plan for working couple?

7) TATA AIA Life Tem Insurance Plans


Top Term insurance plan 2017 - TATA AIA Life Tem Insurance PlanThere are 4 variants of term insurance plans offered by TAT AIA Life. One of the good plans with TATA AIA Life Insurance is Samporna Raksha 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 80 Years.
  • Policy tenure is between 10 years and 40 years.
  • Minimum Sum Assured is Rs 50 Lakhs.
  • Maximum Sum Assured – No limit.
  • Claim settlement ratio of FY 2015-16 is 97%.
  • Accident Death and Dismemberment rider (optional) available.
  • Rate benefits for customers opting for higher level of protection (Sum Assured of Rs 75 Lacs & above).
  • Premium is approx Rs 8,000 per annum for a 30 year non smoker for a 30 year policy for a sum assured of Rs 1 Crore.

Conclusion: I have taken LIC Term insurance plan several years back. Couple of years back I have taken ICICI Term insurance plan and HDFC Life Click 2 Protect Plus for some more risk coverage. My advice to you would be, to consider term plans among top-5 indicated above. You can also split your insurance coverage of say Rs 50 Lakhs each in 2 policies to avoid any rejections in future of say in next 10 or 20 years. 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 insurance companies? What are your experiences?

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Suresh

Top 7 Best Term Insurance Plans for 2017

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