Best Term Insurance Plans in 2022 in India

Best Term Insurance Plans in 2022 - Top Term Insurance Policy in IndiaOne of the basic financial steps is to consider a life insurance plan in the name of member in the family. In case of unfortunate death of the earning member, there would not be any hurdles for kids education and to meet regular monthly expenses of the family members. There are different types of life insurance plans in India. Among them, term plan is a popular one that comes with life risk coverage with low premium. There are 15+ life insurance companies in India that are offering term plans. You might be wondering, how to take a good term insurance plan. In this article we would provide the list of Best Term Insurance Plans in 2022, eligibility criteria to buy, key features and any major exclusions in such term plans.

Also Read: Best Health Insurance Policies in 2022

What is a Term Plan?

Term Insurance Plan provides life insurance risk coverage to the life insured on payment of premium to the life insurance company.

In case of unfortunate death of the life insured, the insurance company would pay sum assured to the nominee or family members. Basic term plans do not have maturity benefits or survival benefits. However, new age term plans offer several features including return of premium on maturity, critical illnesses coverage, waiver of premium benefit etc.,

However, one can take a simple term plan and additional take any other plans as enhancement instead of complicating it further.

Even if you have achieved your goals, you might need a life insurance plan.

Best Term Insurance Plans in 2022 in India

Here is the of term plans in India, their features, eligibility and major exclusions.

#1 – LIC Tech Term

#2 – HDFC Click 2 Protect Life

#3 – Aegon Life iTerm Plan

#4 – ICICI Pru iProtect Smart Term Plan

Top Term Insurance Plans – Eligibility, Features and Major Exclusions

Now that you have understood the list of top term insurance plans In India, let us check the eligibility criteria, features of these plans and any major exclusions / what is not covered.

#1 – LIC Tech-Term Insurance Plan

LIC offers various term insurance plans which are either offline or online. Out of this popular one is LIC Tech-Term Plan.

Eligibility criteria to take LIC Tech Term Plan

Any individual in the age of 18 years to 65 years can consider this term plan. However, maximum age of maturity is limited to 80 years.

Features of LIC Tech-Term Insurance Plan

  • LIC Tech term is non-linked and non-participating risk coverage plan.
  • It comes with 2 benefit options 1) Level Sum Assured and 2) Increasing Sum Assured.
  • Minimum sum assured in this plan is Rs 50 lacs.
  • No limit on maximum sum assured.
  • Policy tenure is 10 to 40 years.
  • It comes with various flexible premium payment options like Single Premium plan, regular premiums (monthly, quarterly or yearly) payment option and limited premium payment option.
  • Special discounted premium rates for women and non-smokers.
  • This plan offers high sum assured rebate.
  • It comes with optional riders, however one need to pay additional premiums.
  • LIC Latest Claim Ratio (2022) is 98.62%. Claim ratio is nothing but the total claims settled over the total claims received during the financial year. Higher the settlement ratio, the better the plan is.

Major Exclusions in LIC Tech Term Insurance Plan

Below are the major exclusions and death benefit is not covered in the following cases.

  • In case of suicide within 12 months
  • Due to activity which is illegal or for unlawful acts
  • Use of drugs or alcohol etc.
  • Injuries caused due to adventurous sports.

LIC is trusted brand. It has a consistent high claim ratio of over 95%. Considering its key features and positive factors, LIC Tech Term Plan is one of the Best Term Insurance Plans in 2022.

#2 – HDFC Click 2 Protect Life – Term Plan

HDFC Life Insurance has a couple of term insurance plans.  It has recently enhanced its existing term insurance plan and launched HDFC Click 2 Protect Life Term plan.

Eligibility criteria to take HDFC Click 2 Protect Life Term Plan

Any individual who is in the age group of 18 years to 65 years are eligible to take this term plan. There is restriction of age group for 50 years in case of specific options in this plan. Maximum age of maturity of 85 years.

Features of HDFC Click 2 Protect Life Term Plan

  • This term plan is non linked and non participating life risk coverage plan.
  • This policy comes with 3 different options 1) Life Protect 2) Life and Critical Illness rebalance and 3) Income Plan.
  • The minimum sum assured is Rs 20 Lacs.
  • Maximum sum assured – No limit.
  • Policy tenure is 10 to 30 years.
  • Even this term plan comes with flexible premium payment options like single premium option, regular premium payment option (monthly, quarterly and yearly) and limited premium payment option.
  • This term plan offers special premium rates to non-smokers.
  • HDFC Life Latest claim settlement ratio in 2022 is 98.01%.

Major Exclusions in HDFC Click 2 Protect Life Term Plan

This term plan does not cover the death benefit in case of the following scenarios:

  • In case of suicide of life insured within 12 months
  • In case life insured participates in any illegal or unlawful act
  • Consumption / use of drugs or alcohol etc.
  • In case of injuries caused to the life insured due to adventurous sports.

HDFC Life has a consistent high claim ratio of over 95% and part of HDFC Group. Considering its key features and positive factors, HDFC Click 2 Protect Life is one of the Best Term Insurance Plans in India.

#3 – Aegon Life iTerm Insurance Plan

Aegon Life offers iTerm Plan which is comprehensive, but yet easy to understand insurance plan.

Eligibility criteria to take Aegon Life iTerm Plan

Any individual in the age group of 18 years to 65 years is eligible to take this plan. One should note that the maximum age of maturity in this plan is 100 years.

Key Features of Aegon Life iTerm Plan

  • Even this term insurance policy is non-linked and non-participating plan.
  • This term insurance plan comes with 3 options 1) Life protect 2) Protect Plus and 3) Dual Protect
  • Minimum sum assured is Rs 25 Lacs
  • Maximum sum assured – No limit
  • Policy is offered for 5 to 20 year period.
  • This term plan comes with the regular premium payment option (monthly, quarterly or yearly).
  • Special discounted rates for female individuals and non-smokers.
  • Aegon Life latest claim ratio (2022) is 99.25%.

Major Exclusions in Aegon Life iTerm Plan

Death benefit is not paid in the following scenarios:

  • In case of suicide within 12 months from taking the policy.
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

Even Aegon Life has a consistent high claim ratio of over 95%. The premiums are lower compared to any other term insurance plans. Considering its key features, positive factors and low premiums, Aegon Life iTerm Insurance Plan is one of the Top Term Insurance Policies in 2022.

#4 – ICICI Pru iProtect Smart Term Insurance Plan

ICICI Pru Life Insurance offers a couple of term insurance plans. Among them, ICICI Pru iProtect Smart Term Insurance Plan is the famous one.

Eligibility criteria in ICICI Pru iProtect Smart Term Insurance Plan

Any individual in the age group of 18 years to 65 years is eligible to take this plan. Maximum age of maturity in this plan is 99 years.

Key Features in ICICI Pru iProtect Smart Term Plan

It is a non-linked and non-participating risk coverage plan.

  • This term policy comes with 4 benefit options 1) Life 2) Life Protect 3) Life and Health 4) All in One.
  • The minimum sum assured is Rs 1 Lac in this plan.
  • Maximum sum assured with no limit.
  • Policy tenure is 5 to 40 year period.
  • Coverage against death, terminal illness and disability.
  • 34 Critical illnesses are covered in this term plan.
  • Even this term plan comes with flexible premium payment plans like Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • This plan comes with low premium for non-smokers individuals.
  • Special discounted rates offered for female individuals.
  • This term plan covers female organ cancers such as cervical cancer and breast cancer under the accelerated critical illness benefit.
  • ICICI Pru Life Insurance latest claim settlement ratio (2022) is 97.9%.

Major Exclusions in ICICI Pru iProtect Smart Term Plan

Death benefit is not paid in the case of the following scenarios.

  • Cancer of specific severity is not covered.
  • First heart attack of specific severity is not covered.
  • In case of suicide within 12 months of taking the policy.
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

ICICI Pru Life Insurance has a consistent high claim ratio of over 95%. Considering all these key features and high claim ratio, ICICI Pru Life iProtect Smart Term Plan is one of the Best Term Insurance Policies in 2022.

#5 – Tata AIA Life Sampoorna Raksha+ Term Insurance Plan

Tata AIA Life insurance offers 5 term plans. Out of this, Tata AIA Life Samporna Raksha+ Term Plan is the popular one.

Eligibility criteria to take Tata Sampoorna Raksha+ Term Plan

Any individual in the age group of 18 years to 65 years are eligible to take this plan. One should note that the maximum age of maturity in this plan is 100 years.

Key Features in Tata AIA Life Sampoorna Raksha+ Term Plan

  • This plan is a non-linked and non-participating risk coverage policy.
  • This term plan comes with 2 death benefit options – 1) Option-1 – sum assured is paid in case of unfortunate death of life insured and 2) Option-2 – Sum assured is paid in case of death, of life insured + 1% of the sum assured is paid every month for 10 years from the date of death.
  • Minimum sum assured is Rs 50 Lacs
  • Maximum sum assured – no limit.
  • Policy tenure is 5 to 40 year period.
  • It comes with flexible premium payment options like Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • It comes with discounted premium rates for a high sum assured.
  • There are differential premium rates for females and non-smokers.
  • This term plan also comes with maturity benefit i.e. return of premium options. However you should check if you win or loose by taking return of premium option in term plan.
  • Tata AIA Life Insurance latest claim settlement ratio (2022) is 98.02%.

Major Exclusions in Tata AIA Life Sampoorna Raksha+ Term Plan

Death benefit is not paid in the case of the following scenarios:

  • In case of suicide within 12 months
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

Tata AIA Life insurance has a high claim ratio of 95%+ and consistently in the top 3 insurance companies having a high claim ratio in the last 5 years. Considering the key features of the plan and high claim ratio, Tata AIA Life Sampoorna Raksha+ Term Plan is one of the Best Term Plans in 2022 in India.

 

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