Top and Best Term Insurance plans in India for 2015
There are various term insurance plans in India. However, we may always get confused on assessing which is the top and best term insurance plan in India to buy. Insurance is a need. Instead of buying money-back insurance plans, one can buy a good term insurance plan with low premiums and secure their family. Which are the popular term insurance plans in India? What are the top and best term insurance plans in India to be considered.
What is a Term Insurance Plan in India?
If you are aware of this, you can skip this section. In simple terms, the Term insurance plan is one which provides risk coverage to the nominee in case of death of the policy holder without any maturity amount.
Wikipedia defines a Term insurance plan as,
“If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time
Also Read: Should you opt for Religare Joy health insurance for maternity and new born cover?
What are the features of Term Insurance Plans?
- Term insurance plans are designed for risk coverage only. In case of death, the sum assured is paid to the nominee.
- Zero maturity amount.
- Tax benefits u/s 80C for the premiums paid
- Premium depends on age, the sum assured, life style (smoker/non-smoker) and any premium discounts for high sum assured etc.,
Top and Best Term Insurance plans in India for 2015
1) LIC e-Term Insurance Plan
LIC has highest life death claim settlement ratio of 98.14% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 75 Years
- Mimum Sum assured – Rs 25 Lakhs
- Maximum Sum Assured – No limit
- Policy term – 10 to 35 years
- This is the Pure Term plan
- Differential premium rates for Smoker/Non-Smoker lives
- Proposal on own life ONLY will be considered
- No riders are available in this policy
- LIC e-Term is no doubt a best term insurance plan in India compared to other competitors / private insurance companies.
Also Read: Should you buy LIC online e-Term Term Insurance plan?
2) ICICI Pru I-Care II Term Insurance plan
ICICI Pru life insurance has a second highest life death claim settlement ratio of 94.10% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 65 Years
- Maximum Sum Assured – Rs 50 Lakhs
- Policy term – 5 to 30 years
- Option to select accidental death benefit where in case of death of policy holder due to an accident, an additional equal sum assured would be paid to the nominee. This feature comes with additional premium.
- ICICI Term insurance is top term insurance plan available among private insurance companies based on high claim settlement ratio.
3) HDFC Click 2 Protect Plus Term Insurance Plan
HDFC has a third highest life death claim settlement ratio of 94.01% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 65 years.
- Maximum age at maturity – 75 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – No limit
- Policy term – 10 to 40 years
- Increase life coverage at key milestones. This makes this as unique term insurance plan.
- There are 4 plan options to receive death benefit.
Also Read: Complete review about HDFC Click 2 protect plus term insurance plan
4) Max Life Term Insurance Plan
Maxlife has 4th highest life death claim settlement ratio of 93.86% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 70 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – Rs 100 Crores
- Policy term – 10 to 35 years
- There are 3 plan options to receive death benefit.
- Get additional cover by way of rider sum assured in case of Death or Dismemberment (impairments are listed under the Rider contract) due to accident. You have the option to add this rider at the time of purchase of the base policy or anytime during the policy term.
- Max Life Online Term offers lower premium rates for Non-Smokers.
- There are discounts built in the plan if select higher sum assured.
- Lower premium rates for female lives.
- Entry age of policy holder – 18 to 60 years.
- Maximum age at maturity – 70 Years
- Minimum Sum assured – Rs 20 Lakh
- Maximum Sum Assured – No limit
- Policy term – 5 to 30 years
- Available in 4 different options. Level Cover, Level Cover with Accidental Death Benefit, Increasing Cover, Increasing Cover with accidental death benefit.
Also Read: How claim settlement ratio would influence your decision to buy term insurance plan?
6) Kotak eterm / Preferred Term Insurance Plan
Kotak Life has one of the highest death claim settlement ratio of 90.7% (2013-14). Some of the important features are indicated below:
- Entry age of policy holder – 18 to 65 years.
- Maximum age at maturity – 75 Years
- Minimum Sum assured – Rs 25 Lakh
- Maximum Sum Assured – No limit
- Policy term – 10 to 40 years
- Waiver of Basic Premiums on Total & Permanent Disability.
- Customized Claim Payout Option
Readers, what is your view on some of these top and best term insurance plans in India?
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Suresh
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hello sir. thanks for the article. it is very informative. sir is claim ratio really important sir? i want to buy indiafirst life term plan because it is very cheap. but claims settlement ratio is verry low for that company. i read in mintwise.com that claim ratio is not fully reliable because of various factors like company age, and type of policies sold by company. then can i ignor e claim ratio and buy indiafirst life term insurance? is it good company, sir?
I am a kidney transplant patient surgery done before 40 months. Which company will offer me a term insurance. 07569636454 is my contact number
Hi
I am 33yr old male non smoker
I have shortlisted 3 companies for a term plan of 40 yrs for a sum of 1cr
1)Kotak with claim settlement ratio of 92% and good solvency ratio and premium of rs.11736
Kotak has a consistent claim settlement ratio of above 90% for 3 consecutive years
2)PNB metlife with similar claim settlement ratio of Kotak and same premium of rs.11781
PNB is a big nationalised bank and Metlife is one of the largest insurance companies in the world
3)Aegon life with claim settlement ratio of 89% and premium of rs.11172
Aegon is in partnership with bennett coleman company which is a times group company
Aegon doesn’t have a very good claim settlement ratio in the past but by paying an additional premium of 500rs you can get a waiver of future premiums on discovery of critical illness.
Please advise which policy should I go for considering I am taking a policy for 40yrs based on the data available of a few years.
Thanks
Abhishek