Insurance has become one of the essential requirements of life. There are several types of insurance such as car insurance, bike insurance, health insurance, etc. Every insurance has its features and benefits. Term insurance is a must-have for everyone as financial security. Let’s look into the definition of term insurance, a guide on how to choose the best term insurance plan in India. Also, and the list of best term insurance plan in India 2021.
Table of Contents
What is term insurance?
Term insurance, also known as pure life insurance is the insurance plan that provides a death benefit to the nominee if the registered person deceases within the stated term. Unlike other insurance policies, a term policy does not have a savings or investment aspect. It provides guaranteed compensation as a death benefit. In most cases, you can avail of the term insurance for payment in case of a critical and terminal illness. You may add riders to enhance life protection coverage with a slight increase in premium value.
Why should you buy a term insurance policy?
A term insurance policy provides financial security against life uncertainties. If we compare the premium of term insurance policy with other insurance plans, term policy premium is the lowest. A term insurance policy is an excellent insurance plan choice for young people with dependents. It ensures financial protection against funeral costs, mortgage debt, healthcare debts, etc. after your demise. Although a term insurance policy does not come with a saving component, it can become a great financial support to your family.
How to choose best term insurance plan in India?
With the multiple insurance companies offering term policies, it can be tricky to choose the best term policy in India 2021 according to your requirement. Here are the things that you must keep in mind while choosing a term policy.
1. Filter insurers according to the term insurance coverage.
2. Compare the claim settlement ratio.
3. Determine desired term policy tenure.
4. Read all the terms and conditions closely.
5. Choose add-on such as critical illness cover, additional coverage for accidental death, etc. wisely.
6. Make sure to disclose your age, health status, chronic diseases, habits such as smoking before purchase.
Best Term Plan in India Comparison
There are a large number of term insurance plans available in India. All the insurance companies offer online and offline term policies with each term policy having some specific features. This makes them complicated. Therefore, it is very difficult to choose the best term plan.
Now the question arises, which term policy to buy? And my straight answer is “Saral Jeevan Bima Yojana”. This standard life insurance plan is recently introduced by all life insurers as per guidelines of IRDA.
Saral Jeevan Bima Yojana is a standard life insurance plan with standard features. The maximum cover is Rs.25 lakh in this plan. However, insurers are allowed to offer higher coverage also. Therefore, if your selected insurer is offering this product at higher coverage, then the best option is to choose it. This is because the standard basic features are available with this product and it is very simple to understand.
Also Read: LIC Saral Jeevan Bima – Term Life Insurance Plan
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Top 10 best term insurance in India 2021
To help you choose best term life insurance plan in India, we have assimilated the list of the top 10 best term plan in India 2021.
1. LIC’s Tech Term plan
LIC provides a non-linked online term assurance plan known as a Tech term plan. This is pure protection “Online Term Assurance Policy”. You can purchase this term insurance plan online. LIC Tech term is one of the cheap and best term insurance plan in India.
Features & Benefits
1. You can choose premium payment frequency (single, regular or limited premium)
2. The minimum basic sum assured through this term plan is Rs.50 lakh. You may avail greater sum assured in multiples of Rs.5 lakh by paying a greater premium.
3. LIC provides special rates for women.
4. Policy tenure ranges from 10 years to 40 years.
5. This term plan comes with rider benefits on accidental death.
6. You can avail the benefit of taking death benefits in installments.
3. Max Life Online Term Plan Plus
Max Life provides one of the best term insurance plan for 1 crore at a relatively low premium. This plan is very useful if you are the chief earning member of your family. It is available to people between the ages of 18 to 60 years, with cover extending till the age of 85 years.
Features & Benefits
1. This plan offers you a choice between a basic life cover, a basic life cover + monthly income, and a basic life cover + increasing monthly income.
2. Flexibility to choose cover duration between 10 to 50 years.
3. You can opt for the Max Life Waiver of Premium Plus Rider. With this the future premiums will be waived off in case of critical illness and dismemberment.
4. You can choose coverage of 25 lakhs to 100 crores.
3. Bajaj Allianz iSecure
Bajaj Allianz iSecure is one of the best term plan for smokers. Smokers can avail the benefits at a slightly more premium than non-smokers and preferred non-smokers. With this plan, you will get a level term cover at a low cost for a larger sum assured.
Features & Benefits
1. Provide minimum sum assured Rs.25 lakh for general category. And Rs.20 lakh for preferred Non-Smoker1, Non-Smoker1, and Smoker.
2. Flexibility to select policy terms of 10, 15, 20, 25, or 30 years as per your requirement.
3. Flexibility to alter your premium payment frequency.
4. A joint term policy is also available.
4. Tata AIA Maha Raksha Supreme
Tata AIA Maha Raksha Supreme term plan is one of the best term insurance plan for senior citizens in India. This plan has a maximum age coverage of 100 years. It is also one of the best term plan for 1 crore.
Features & Benefits
1. Provides 50% advanced payout in case of terminal illness diagnosis.
2. Discounted premium rates for women and non-smokers.
3. The minimum sum assured is 50 lakh.
4. Surrender value provided for single payment option and limited premium payment. But no surrender value for a regular payment plan.
5. HDFC Life Click 2 Protect Life
HDFC Life Click 2 Protect Life is one of the best e term plan in India. The HDFC Life Click 2 Protect Life provides you with 3 plan options. This insurance plan has a tenure ranging from 10 years to 30 years.
Features & Benefits
1. There is an option to change the premium paying frequency during the premium payment term.
2. Option to avail coverage for the whole of life.
3. You will get back all the paid premiums on survival till maturity if you choose the return of premium option.
4. Waiver of premium on the diagnosis of critical illness through the waiver of premium critical illness option.
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6. ICICI Pru iProtect Smart
This term plan is also one of the best term insurance policy in India 2021. It provides longer coverage up to the age of 99 years. This insurance plan also comes with an assurance to protect the right of your wife under the MWP Act.
Features & Benefits
1. Provides 4 payout options:
- Lump-sum death benefit
- Regular monthly income
- Increasing income
- Lumpsum plus income
2. Coverage for terminal illness including AIDS.
3. Payout after diagnosis of any of 34 listed critical illnesses.
4. The plan gives you an option to add accidental benefits now or later.
7. Aegon Life iTerm
Aegon Life iTerm plan is one of the best term plan for smokers. It provides ‘Quit Smoking’ benefits to smokers. You can reduce your premium amount by quitting smoking. This opportunity is provided to smokers after 2nd year of insurance.
Features & Benefits
1. You have the freedom to build your insurance plan and secure your family.
2. Three optional plans: Life Protect, Protect Plus, and Dual Protect.
3. Get an additional lump sum payout on the diagnosis of a terminal illness.
4. Option to choose death benefit payout as a lump-sum or as monthly income or both.
5. Best term insurance plan with return of premium in India as regular monthly income provided after 60 years till maturity.
8. SBI Life eShield Plan
This is also one of the best term life insurance in India with 4 variants to cater to every individual’s needs. You can easily check the premium by filling up the required details on the official website.
Features & Benefits
1. 10% increase on the sum assured every five years for increasing cover variant.
2. Premium discounts for non-smokers.
3. The policy provides an in-built accelerated terminal illness benefit.
4. Two rider options to provide comprehensive coverage.
9. PNB MetLife Mera Term Plan
PNB MetLife Mera Term Plan is one of the best term insurance plan in India. This plan offers extended coverage till the age of 99 years. You may pay the premium monthly or yearly.
Features & Benefits
1. Provides the flexibility of choosing term tenure ranging from 10 years to 81 years. And up to 40 years for joint plan.
2. 4 payout options:
- Lumpsum
- 50% lumpsum+50% regular income,
- 50% lumpsum + 50% increased regular income
- And 50% Lumpsum + 50% regular income till child turns 21
3. Options to pay premiums for a limited term.
4. Coverage for spouse under the same plan.
10. ABSLI Life Shield
ABSLI Life Shield provides 8 different variants of term insurance plans. The plan also provides an option to cover your spouse under the same policy. It provides the option of return of premium according to option 7 and 8 plans.
Features & Benefits
1. Joint Life protection for plan options 1, 2, 3, and 4.
2. Option to choose the return of premium option.
3. Waiver of premium for complete disability and terminal illness.
4. Multiple rider options such as:
- Accidental Death and Disability Rider
- Critical Illness Rider
- Surgical Care Rider
- Hospital Care Rider
- Accidental Death Benefit Rider Plus.
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Frequently Asked Questions
1. Which is the best term insurance plan in India for senior citizens?
Every term plan provides a maximum age at maturity parameter. Senior citizens must opt for a term plan that provides greater maximum age at maturity.
Tata AIA Maha Raksha Supreme and Aegon Life iTerm provide maximum age at maturity of 100 years. HDFC Life Click 2 Protect Life and ICICI Pru iProtect Smart also provide life cover for the whole life. PNB MetLife Mera Term Plan provides life coverage till the age of 99 years. All these plans are available for senior citizens.
2. Which is the best term insurance plan in India 2021?
Choosing the best term insurance plan in India 2021 requires researching the following aspects.
- Maximum sum assured at an affordable premium.
- Term and Conditions about critical illness, terminal disease, and disability.
- Claim Settlement Ratio.
- Purchase, Claim, and renewal process.
- Payment options and modes.
- Review from existing customer.
To make your task easier, we have assimilated the list of top 10 term insurance plans in India 2021.
3. Which is the best term plan with return of premium?
Aegon Life iTerm plan and ABSLI Life Shield plan (option 7 and option 8) provide the return of premium on their respective plans. Therefore, these two terms share the stage of the best term plan with return of premium.
4. Which is the cheapest term plan in India?
Looking for the cheapest term plan may lead your family to great trouble. It is recommended to find a term plan that has adequate coverage. Also a good claim settlement ratio at an affordable premium. Following are the some of the best term policies at an affordable premium:
- LIC’s Tech Term plan
- Max Online Term plan
- Aegon Life iTerm
Final Thoughts
A term plan can help your family get rid of the financial burden after your demise. Hope our list of best term insurance in India 2021 will help you to choose the most suitable term policy for yourself. And you will also find the best term insurance plan for 1 crore.
Top 10 term insurance in India 2021
Disclaimer: MoneyManch does not endorse, rate, or recommend any insurance plan offered by an insurance company.
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