When it comes to securing your family’s financial future, term insurance plans stand out as one of the most essential tools. With rising uncertainties and responsibilities, buying a term insurance plan with the right coverage, features, and reliability is no longer an option—it’s a necessity. In this article, we list the Best Term Insurance Plans in India for 2025 based on parameters like claim settlement ratio, features, affordability, and customer experience, curated by ChatGPT in line with our style.
Also Read: What is monthly Income Plan in Term Insurance Plan?
What is a Term Insurance Plan?
A term insurance plan is a pure life insurance policy that provides financial protection to your family in case of your unfortunate demise during the policy term. These plans offer a high life cover at a low premium and come without any maturity benefits. They are best suited for individuals looking to secure their dependents financially.
Key Features of Term Insurance Plans
- High Sum Assured at Low Premiums
- Flexible Policy Term Options
- Multiple Death Benefit Payout Options (Lump sum, monthly, or a combination)
- Optional Riders for enhanced protection (Accidental Death, Critical Illness, etc.)
- Tax Benefits under Sections 80C and 10(10D)
Top 5 Best Term Insurance Plans in India (2025)
Let’s dive into the details of the best term plans available in 2025:
#1 – LIC Tech Term (Plan 854)
- Claim Settlement Ratio (CSR): 96.42%
- Type: Pure online term plan
- Key Features:
- Flexible premium payment terms
- Multiple sum assured payout options (lump sum, instalment, or combination)
- Optional riders: Accidental Benefit Rider
- Positives:
- Backed by India’s most trusted insurance brand – LIC
- Strong claim settlement record
- Availability pan-India, even in remote areas
- Negatives:
- Claim Settlement Ratio has fallen significantly to 96.42% which is low.
- Slightly higher premiums than private insurers
- Limited flexibility in customization compared to newer-age plans
#2 – HDFC Life Click 2 Protect Super
- Claim Settlement Ratio (CSR): 99.97%
- Type: Highly customizable online term plan
- Key Features:
- Multiple plan options: Life, Life Plus, and Life Goal
- Increasing life cover option available
- Wide range of riders like Critical Illness, Accidental Death, etc.
- Positives:
- Excellent CSR and strong customer support
- Feature-rich plan with flexibility to suit life stages
- Digital-first experience
- Negatives:
- Too many options can confuse first-time buyers
- Premiums slightly higher for some add-on features
#3 – Axis Max Life Smart Secure Plus Plan
Maxlife is now Axis Maxlife which ChatGPT is not upto date.
- Claim Settlement Ratio (CSR): 99.79%
- Type: Comprehensive term plan
- Key Features:
- Optional Return of Premium (ROP)
- Critical Illness & Disability Rider
- Option to cover terminal illness and death due to accident
- Positives:
- High value for money
- Among the highest claim settlement ratios in the industry
- Good post-sale support and servicing
- Negatives:
- Return of premium option increases premium significantly
- Limited offline presence
#4 – Tata AIA Life Insurance Sampoorna Raksha Supreme
- Claim Settlement Ratio (CSR): 99.58%
- Type: Online/offline term plan
- Key Features:
- Life stage benefit option – increase coverage at key life milestones
- Multiple death benefit payout options
- Availability of health riders
- Positives:
- Highly competitive premiums
- High CSR and consistent service
- Trusted Tata brand with AIA’s global expertise
- Negatives:
- Limited customizability compared to newer plans
- Medical underwriting may be stricter
#5 – ICICI Prudential iProtect Smart
- Claim Settlement Ratio (CSR): 97.09%
- Type: All-in-one protection plan
- Key Features:
- Terminal illness coverage included
- 34 critical illness rider – one of the most extensive in the industry
- Income replacement option for family
- Positives:
- Well-known private insurer with strong digital capabilities
- Comprehensive coverage under one plan
- Quick onboarding with digital medicals
- Negatives:
- CSR is lower than top peers
- Complex structure may not be suitable for all buyers
Also Read: What are the major benefits in Term Insurance Plans?
Premium Quote Comparison (Illustration)
Here’s an illustration of premiums for a 30-year-old non-smoker male opting for ₹. 1 Crore term cover for 30 years:
|
Term Plan Name |
Annual Premium (Approx.) | Claim Settlement Ratio |
Key Highlight |
|---|---|---|---|
| LIC Tech Term (Plan 854) | ₹. 10,900 | 96.42% | Trust & reach of LIC |
| HDFC Life Click 2 Protect Super | ₹. 9,600 | 99.39% | High customization |
| Max Life Smart Secure Plus Plan | ₹. 8,900 | 99.97% | Best CSR + value for money |
| Tata AIA Sampoorna Raksha Supreme | ₹. 8,700 | 99.13% | Competitive pricing + life stage cover |
| ICICI Pru iProtect Smart | ₹. 9,200 | 91.16% | Extensive rider options |
Note: Premiums are indicative and may vary based on health, lifestyle, and rider selection.
ChatGPT recommended Term Plans – Video Link
Final Thoughts
Choosing the right term insurance plan depends on your life stage, dependents, financial goals, and budget. While all the above plans offer strong benefits, you should look at claim settlement ratios, rider options, and premium affordability before finalizing. Always buy term plans early to lock in lower premiums and ensure maximum security for your family.
Which of these term plans are you considering for 2025? Let us know in the comments!
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Smart Secure Plus Plan by Axis Max Life has been obsolete. Now few more variants with Returns of Premium ( ROP) & ULIP options have been launched with Smart Term Elite Plan (STEP), STAR with ULIP plans are for those who are seeking for market returns as well as life cover. These products are much better than LIC & HDFC comparatively. So try to elaborate STAR With ULIP.