Top 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 ₹ 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 ₹ 8,900 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 5,100 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 5,800 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 25 Lakhs.
- Maximum Sum Assured – ₹ 100 Crores.
- Comprehensive Accident Benefit Rider available in this plan.
- Claim settlement ratio of FY 2014-15 is 96.03%
- Premium is approx ₹ 4,200 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 4,400 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 3,500 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 4,900 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 5,200 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 4,200 per annum for a 30 year non smoker for a 30 year policy for ₹ 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 ₹ 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 ₹ 4,600 per annum for a 30 year non smoker for a 30 year policy for ₹ 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?
If you enjoyed this article, share it with your friends and colleagues through Face book and Twitter.
Suresh
Top 10 Best Term Insurance Plans in 2016
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Hi
that was a nice review, presently i have a term plan for 50L, and would like to go for another one for additional cover, my question is i have heard somewhere that we cannot go more than 1CR for to total sum assured , if taken the companies may deny the climes is it true,
do you suggest to go for second policy for 1 Cr directly.
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.
Dont take LIC its costly.. you can choose double coverage with max & sbi
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
Hi Ankur, You can consider any of the top-5 indicated in this article.
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.
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
Invest in ICICI focussed blue chip fund or Birla SL Frontline equity fund
Hi Suresh,
I am nearing 40 years, could you please suggest best term insurance for me.
Also explain are riders are good or unnecessary. Please explain under which circumstances I shall opt for riders.
Praveen.
I have already taken a term plan of 50lac in Aegon religre,
PLanning to take another 50lac , please suggest wht would be teh best ?
You can go for HDFC click 2 protect, Maxlife online term insurance plan or ICICI life term insurance plan
How If to begin with I will select 10 years plan and after 10 years depending on experiences & market review of the Insurance provider( ICICI which I almost shortlisted) renew the term insurance? I mean do my premium will change considerably after renewal or same amount will continue?
If you select for 10 years, you cannot renew beyond that period. You need to take fresh policy with the terms and conditions applicable at that time
Hi Suresh,
Claim settlement ratio for ICICI Prudential is 93.8%. Should I be worried about it????
More generically, Should one be worried with claim settlement of below 95-96%?
Long time Shiv. As long as it is in top5 we need not worry Shiv.
Do term plans are available for NRIs??
Yes Arjeet, HDFC Life and couple of other insurance providers are offering term plans for NRI’s
Hi Suresh,
I am a 36 year old and I was getting a annual premium of Rs. 13,189 for a 24 year term if I opt for the Life Cover option. The toltal amount I would be paying is 13189 X 24 = Rs. 316536. But, I also see that there is a One Time Payment option is available for this plan which is Rs. 191105. Is it good/advantageous to go for a single payment option?
I would not advice to go for that Ramakrishna. If after say 5 years, you find such policy is useless, then you can just discontinue. I don’t see any advantage in paying single premium option, except that it may come with lesser premiums
Hello sir, I am planning to take a term insurance for 1 crore by next month. It might be a possibility that i will be shifting to States for good in the next 1 year, should I be declaring my plans during the sign-up. Will my insurance premium change after moving to States. Will the Insurance be nullified post moving to States.
Hello sir I am 31 year non smoker and my income is approx 270000 per year kindly suggest me a plan which should I go for. Policy bazar suggested max life but the plan is for only 3 lac plus income.
Is Aegon Term Paln is advaisable. When comared with others they are offerring very less premium amount. I am at 36. Please advise.
Hi Siva, If you see it is ranking as 10th in my list. You can go. However, my advice is to invest in top 5 ranked companies in terms of claim settlement ratio or in terms of features.
Thanks suresh sir , I have a query regarding term plan I have a term plan of hdfc click2protectPlus rs. 50 lack with extra life option wich mean if policy holder death normally nomine receive 50 lac and due to accident death nomine receive 50+50 but in case of accident policy holder will not die and he lost any part of body in this situation claim is refund or not. If not what can I do for this situation ……..? Help me sir and give a call no. 9837092264 I waiting for your reply again thanks SURESH SIR.
Chanchal, You are right 1) If policy holder dies with accident, he would get sum assured + accident death benefit 2) If it is normal death, nominee would get only sum assured 3) If insured met with accident, but survives including losing any part of the body, their nominee would not get anything.
Hi suresh,this benefit for any type of death or onlyaccidental death??
This is for any type of death. However if you opt for additional risk coverage for accidental death benefit, you would get more. e.g. you can take Rs 10 Lakhs term plan with accidental death benefit rider that an additional 10 lakhs would be paid if accident happens to insured. If insured dies in normal death, his family would get Rs 10 Lakhs. However, if insured dies in accident he would get death benefit of RS 10 Lakhs + accidental deah benefit of RS 10 Lakhs totalling to RS 20 Lakhs.
Very nice information
Article is very informative. Risk covered is for any type of death or accidental only?
Hi Raj, Terms plans are only for risk coverage. You would not get anything at maturity
Very useful article. I have a question. Is it allowed to hold more than one term insurance plans and if yes will the beneficiary receive full benefits from all the term insurance plans held?
Ramesh, This is life insurance and full benefits are available from all companies where you have taken term insurance plan
Hi Suresh,
thanks for Informative article,
I have a personal experience with PNB metlife mera term plan.
I opted for PNB metlife as it provided the maximum tenor (40 years and covered me until 70 years). The process was really smooth with medical test done at home and policy was issued in 20 days. Claim settlement ratio is also above 90%.
Regards
Deepak Chordia
Hi Suresh
Thanks for providing these details .Five yesars back i took Aviva i life insurance for 1 cr.Aviva is not in the top 10 list.Please advice what i have to do.
thanks and informative article. I must sure it help me to choose best term plan for me.
my one request to you if you could write similar article on best home insurance and what should we see while the time of taking home insurance.
The choice of the best insurance provider is matters for first three years of the policy. After three years, no insurance company can deny your claim. Below is excerpts from Insurance Amendment Act, 2015
Section 45 of the Insurance Act clearly states:
“No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e., from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later.”.
In this scenario we should go for cheapest term plan available online if we do not have anything to hide..
Hi Suresh,
I have a Term plan from LIC(through agent). Now i want to take additional cover. i am planning to take the eTerm plan. Now my problem is i donot remember if i mentioned in the policy that i used to drink( i used to consume alcohol 5 years back i.e 1 year before taking the policy) what can i do now?
You can register on LICindia portal and you would be able to see your policy document. Alternatively you can ask LIC to provide copy of the proposal, I feel they should be able to do that
Please arrange to incorporate IT provisions so that your valuable articles can be forwarded to others through E-mail.
Blessings.
– Sudhir Bhatia
Thanks Suresh for nice article. A tabular format of the premium with & without riders along with inclusions/ exclusions, if any, could have been an added advantage.
Besides this, please clarify that above indicated premiums are including or excluding riders?
Suresh, Are there any fine prints with respect to claims in Term Insurance? Hope they will cover all clauses like natural calamity, vandalism, etc
Dear Sir,
My date of birth is 31.10.62 and I am interested in buying a term plan. All the plans that you have recommended are having a maximum maturity age of 70-75 years. Whereas I have checked few others also like TATA AIA term and Birla Sunlife which are offering maturity age of 80 years.
After reading you article and seeing term plan of Birla Sunlife and TATA AIA I am little confused. Please suggest with which term plan I should go..
Regards
Surendra Kumar gutgutia
Hi Suresh,
Thanks for the useful information. I have one doubt.
If a person has both life insurance and e-term policy will there be two death benefit? For example what if the person has LIC jeevan anand and also a term plan? What if the person has two e-term insurance?
I heard that only one benefit can be claimed.
Kindly clarify.
I disagree with the view regarding LIC’s brand value. While people who are not sufficiently exposed to other insurance companies, such as those in the rural and town areas, may consider LIC as the only insurance company in India, this is purely due to ignorance and lack of knowledge and not any value that LIC adds. If u go to knowledgeable educated people, such as those in metros and tier-2 cities, u will find LIC hardly counts for anything.
So while it may be your personal view reg. LIC’s brand value, I think it is not correct to generalize it; it is a mistaken notion.
Hi Suresh,
I have taken HDFC Life click 2 protect plus 15 months back when I was 32 and happy with it.
But till then I am seeing the settlement ratio is coming down and as per your post it is now 90.5 , so I am bit worried. As I am getting older if I take other term policy it will charge high.
1) Do you recommended taking one more term insurance of smaller amount from ICICI ? although I can see ICICI settlement ratio also came down on last year.
2) In case of uncertainty can x person can claim from both the insurance company ?
Nice article ….Can you also let us know best health insurance plan ?
It would follow next week Nitin
..Yes Suresh, I found this article too quite informative and well researched.
thanks Rajiv
Thanks for valuable info here. I have one more query here. How it’s advisable to opt online term plan rather than offline term plan.
Online term plans are easy to buy. Offline plans comes with riders. Beyond that there is no other benefit from offline plans. Online plans with riders is a good combination. You should opt for such plan
Hi Suresh
Thanks for providing these details .Five yesars back i have taken Aviva i life insurance for 1 cr.Aviva is not in the top 10 list.Please advice what i have to do.Can i discontinue the aviva and take the new insurance.