Best Term Insurance Plan in India

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Term insurance is a life insurance policy that provides a fixed sum insured to the policyholder in the event of his/her death. It is a lump sum amount that the insured knows in advance while subscribing to the policy.

For a higher sum insured, you will have to pay a higher amount as a premium. However, term insurance usually comes with affordable premiums and helps you safeguard your family members' future.

Some of the best term insurance in India plans also provide coverage for critical illnesses and enable you to avail of a loan for buying a home or car.

Best Term Insurance Plan in India

Why should you buy a term insurance plan?

There are several reasons for buying a term insurance plan. It helps your family take care of their expenses in the unfortunate event of your demise. Also, with the sum insured, your family can repay the debts you might have taken while purchasing a house or vehicle. 

It is better to subscribe to a term insurance plan early because the premiums increase every year. Once you buy a term insurance policy, its premium remains constant throughout your lifespan.

It is better to get a term insurance plan at a young age because the chances of your application rejection will be higher if you are suffering from a lifestyle disease. 

With this policy, the insured could take care of the education of their children, their marriage, and various other expenses even after their demise. Moreover, critical illnesses like cancer or heart failure are covered by this insurance term policy.

Best Online Term Plans in India

Overview of Best Term Plans

1. LIC e-Term Link

Here are some noteworthy features offered by this term insurance plan:

• The tenure or validity of this plan ranges between 10 to 35 years.
  
  
• Your age needs to be between 18 and 60 years to be eligible for this plan.
  
  
• The minimum sum assured for people who do not smoke is Rs. 50,00,000. Those who smoke get a minimum sum assured of Rs. 25,00,000. There is no maximum limit, so you can choose a higher sum assured if required.
  
  
• The minimum yearly premium is Rs. 2,875. The maximum premium depends on the sum assured selected that you select.
  
  
• You need to pay the premium every year, and a 30 days grace period is allowed.
  
  
• Surrender value is not offered with this plan and the free look period is 30 days.
  
  
• 75 years is the maximum age until which the cover is provided. In case the policy lapses, it needs to be renewed before the completion of 2 years.

2. Max Life Online Term Plan Basic Life Cover

Here are some unique features offered by this one of the best term plan in India:

• Max Life Online Term Plan Basic Life Cover comes with a free look duration of 30 days and offers low premium rates for non-smokers.
  
  
• There are no maturity benefits, but only the death benefit is applicable on this plan.
  
  
• The minimum age for entry is 18 years, and the maximum is 60 years, according to your birthday.
  
  
• The policy duration or tenure can be between 10 and 35 years. You can avail of this insurance policy till you become 70 years old.
  
  
• The minimum sum assured is 25 lakh, the maximum is up to 100 crores, and the premium is to be paid annually.

3. Birla Sun Life Protection@Ease Term Plan

The main features of this term insurance plan are highlighted below:

• This term plan is flexible and allows us to pick sum assured or duration at your convenience.
  
  
• The minimum and maximum sum assured are INR 50,00,000 and INR 5,00,00,00,000 respectively.
  
  
• To be eligible for this plan, your age should be between 18 and 55 years. 
  
  
• The policyholder can be 80 years old at the end of tenure, and the policy's term can be between 5 and 30 years.
   
• There are two modes of premium available, viz. annual and regular.
  
  
• This term insurance plan comes with a free look duration of 30 days.

4. Tata AIA iRaksha Supreme Online Term plan

Some of the key highlights of this term insurance plan are explained below:

• This is one of the most affordable term plans available in the market and can be bought online with easy to follow steps.
  
  
• A lower premium rate is offered to non-smokers.
  
  
• The age limit for getting this term plan is 18 to 70 years.
  
  
• The minimum plan tenure can be 10 years, and the maximum plan tenure can be 40 years.
  
  
• Along with non-smokers, women also get a lower premium TATA AIA term insurance plan.
  
  
• The premium needs to be either paid semi-annually or annually. Or else it can be paid as a lump sum amount for the duration of 10 or 5 years. A grace period of 30 days is provided to renew this term insurance plan.
  
  
• The highest sum assured provided as the death benefit is 105% of the total premium paid by the policyholder and ten times the value of the yearly premium.

5. PNB Metlife Mera Term Online Plan

• To get the PNB MetLife Mera term online plan, you must be between 18 and 65 years old. This term insurance plan can be availed till you become 75 years old.
   
• Based on your financial requirements, you can choose a term plan from the four options available.

Four options to select from are:

1. The nominee receives a sum assured as a lump sum amount. 
   
   
2. 50% of the sum assured is paid as monthly income for the next 10 years, and the rest 50% is paid as a lump sum. 
   
   
3. Under this option, the sum assured is also split into two parts. 50% is paid as a lump sum amount, and the other 50% will be provided as monthly income for 10 years. The monthly payment will increase at a simple interest rate of 12%.
    
4. Those with a child whose age is below 15 years can avail this fourth option. As per this option, 50% of the sum assured is paid as a lump sum. The rest will be paid as monthly income until the child gets to 21.

• The plan tenure can be between 10 and 40 years.
  
  
• The minimum limit set for your policy is INR 10,00,000.
  
  
• With around a 50% increase in the premium, you can add your spouse to the same plan, and there is no need to take a different plan for them.
  
  
• 18% GST is applicable on life insurance plans.

6. Bajaj Allianz iSecure Online

The best features of the Bajaj Allianz iSecure Online term insurance plan are listed below:

• Bajaj Allianz iSecure Online allows you to avail of the plan benefits by paying a regular premium.
  
  
• Your age needs to be between 18 and 65 to be eligible for this plan. The minimum and maximum maturity ages are 28 years and 85 years, respectively.
  
  
• The minimum sum assured for the general category is INR 2,50,000 and INR 20,00,000 for smokers, non-smokers and preferred non-smokers.
   
• The maximum sum assured is INR 50,00,000.
   
• The policy will terminate upon the death of the insured, and the death benefit is payable only if the policy is active at the time of the death.
   
• The policy tenures can be 10, 15, 20, 25, and 30 years.
   
• It comes with a free look duration of 30 days, and the grace period to renew the term insurance plan is 25 days.
   
• The nominee can receive the sum in monthly instalments for a period of 5 to 10 years.
   
• If you are unmarried when you take the policy, your spouse can be added later, but if you are married, you cannot add your spouse later. It has to be done at inception.
   
• Maturity and surrender benefits are not payable as per the policies of this term insurance plan.
   
• In case either the insured or joint insured individual (in case of joint life insurance plan) ends their life on the last date of the policy renewal date or before completion of 1 year from the date of policy purchase, the policy is ended, and 80% of the premium is paid back.

7. Kotak Preferred Term Plan

Some of the key features of the Kotak Preferred Term Plan are given below:

• Kotak Preferred Term Plan comes with two payout options: recurring payout or immediate payout. In the immediate payout, the sum insured will be paid instantly, and the plan will be ended. For recurring payouts, 10 per cent of the sum insured is paid instantly, and the remaining amount will be paid back in the form of monthly instalments for 15 years. These monthly instalments will be 6% of the sum insured.
   
• The eligibility age offered by this term insurance policy ranges from 18 to 65 years. The maturity age can range from 23 to 75 years.
   
• The bare minimum assured is INR 25,00,000, and there is no upper limit.
   
• Grace period is for 30 days and the free look period is for 15 days.
   
• The premium instalment modal is calculated as 100% for yearly, 51% for half yearly 51%, 26% for quarterly, and 8.8% for monthly.
   
• With the step-up option, you can get an additional cover at certain stages of life.
   
• The basic sum assured can be increased by 50% if required.
  
  
• Similarly, the basic sum assured can also be reduced by paying a nominal fee of INR 500.
   
• If the insured is diagnosed with one of the listed critical illnesses, a part from the sum insured is paid in advance.

8. SBI Life eShield

The best features of SBI life eShield are given below:

• SBI life eShield term insurance plan allows you to include accidental death in the coverage. It also allows you to increase the sum insured at a simple interest rate of 10% after completing 5 years by increasing the premium.
   
• SBI life eShield can be bought online by following some simple steps. The plan can be renewed within 2 years of the last date of the premium, which you had not paid.
  
  
• The minimum premium is Rs. 3,500, whereas the maximum premium depends on the sum you choose. A minimum sum assured of Rs. 20,00,000 can be availed with no cap for maximum sum assured.
   
• The premiums need to be paid annually, and this plan does not offer any surrender value.

9. Reliance Online Term Plan

Hassle-free documentation, simple terms and conditions, and affordable premiums are some of the key highlights of this online term plan. Some other essential features of Reliance Online Term Plan are discussed below:

• The minimum and maximum entry ages offered by this plan are 18 and 55, respectively. The maturity age ranges from 28 to 75 years.
  
  
• The policy tenure can range between 10 and 35 years. Reliance Online Term Plan with a minimum sum assured of Rs. 25,00,000 with no limit for maximum sum assured.
  
  
• The premium starts at Rs. 3,500, whereas the maximum premium depends on the sum insured you select. The premium is to be paid yearly.
  
  
• This plan offers no add-on covers and does not provide any surrender value.
   
• The death benefit of 10 times the yearly premium or 105% of the net premium paid till the occurrence of death is offered by this term insurance plan.

10. Bharti AXA Life eProtect

Bharti AXA Life eProtect can be availed at any time between 18 and 65. Some of the main highlights of this plan are highlighted below:

• A quick and easy process can be utilised to apply for this plan. The policy tenure ranges from 10 to 30 years.
   
• A minimum sum insured of Rs. 25,00,000 is offered by this insurance plan.
   
• The sum assured can be availed as a lump sum payment or in monthly instalments after the policyholder's death.
   
• A 30-day grace period is provided to renew the policy. If the policy gets lapsed, it can be renewed within 2 years.

11. IDBI Federal – Insurance Online Term Insurance Plan

The IDBI Federal – Insurance Online Term Insurance Plan is a micro-insurance plan that allows you to avail a sum assured between 5k to 50k as per your requirements. The key features of this term insurance plan are mentioned below:

• IDBI Federal - Insurance Online Plan comes with a tenure of 10 and 5 years. The premium can be paid in single or annual premium.
   
• You don’t have to undergo a medical test to avail the benefits of this plan.
   
• This term insurance plan also covers accidental death.

Overview of Offline Term Insurance Plans in India

1. Bajaj Allianz iSecure More

Some of the best Offline Term Insurance Plans in India are given below:

• This term insurance plan's minimum and maximum entry age are 18 and 60 years, respectively. The minimum and maximum maturity ages are 28 and 75 years, respectively.

• A minimum sum assured of Rs. 2,50,000 is offered, whereas there is no cap on the maximum sum assured.
   
• Monthly, quarterly, bi-annual, and yearly premium options are available with this plan.
   
• The nominee can get the sum assured in monthly instalments up to 5 or 10 years as you choose at policy inception. This plan offers a free look duration of 15 days.
   
• This plan does not offer maturity and surrender benefits.

2. HDFC Life CSC Suraksha

If you are between 18 to 55 years of age, you can get this plan that comes with flexible options for choosing tenure and sum assured. Some of the key highlights of this plan are given below:

• A sum assured from Rs. 30,000 to Rs. 2,00,000 can be chosen as per your requirements.
   

• The policy tenure can range from 5 to 15 years. The maturity age ranges from 23 to 60 years.
   
• Monthly, annual, quarterly, and bi-annual premium payment options are provided by the HDFC Life CSC Suraksha term insurance plan.

3. SBI Life Smart Shield

SBI Life Smart Shield comes with loan benefits, income protection for the family, increased sum insured to tackle inflation, and many other benefits. Some of the key highlights of this plan include:

• The age you can enter this plan ranges between 18 and 60 years. Its minimum and maximum tenure options are 5 and 30 years, respectively.
  
  

• Multiple premium payment options like monthly, quarterly, bi-annual, and yearly payments.
   
• Riders like accidental death insurance, permanent disability coverage, etc., can be availed with this plan.
   
• This plan offers a surrender value of 75% of the total term x one premium. A free look duration of 15 days applies to this plan.

4. SBI Life Grameen Bima

SBI Life Grameen Bima is designed for the rural sections of the country. This term insurance plan comes with a death benefit, surrender benefit, and many other features with an affordable premium. Some of these features include:

• A minimum sum assured of Rs. 10,000 is available with this plan. The plan tenure will be of 5 years.
   

• The surrender value is equal to one premium x 50% of the unexpired policy duration.
  
  
• The minimum and maximum entry age are 18 and 50 years, respectively.
  
  
• This term insurance plan provides a free look duration of 15 days.

What are the types of term insurance plans?

Senior citizen term plans, term plans for NRIs, family term plans, and spouse term plans are the basic types of term insurance policies available in the market. Some of the other types of term insurance plans concerning their technical features are discussed below:

1. Level Term Insurance Plan - The sum assured remains the same throughout the policy tenure.
   
   
2. Critical Illness Cover Plan - This type of term insurance plan offers critical illness cover that helps you take care of your medical expenses if you are diagnosed with a critical illness.
    
3. Limited Pay Term Insurance - You can pay for a limited tenure and enjoy the benefits till the policy tenure completes.
    
4. Accidental Death Cover Term Insurance - This type of term insurance plan also covers death due to accidents and standard life cover.
    
5. Standard Term Plan - This type of term insurance plan provides coverage against different health and financial risks.
    
6. TROP - Term Return of Premium (TROP) is a type of term insurance plan that returns the premium to the policyholder in case he/she survives the policy tenure.
   
   
7. Group Term Plans - Employers offer them to secure the financial interest of their employees.
    
8. Increasing Term Plan - This type of term insurance plan allows you to increase the sum assured after a specific period by increasing the premium.
   
   
9. Decreasing Term Plan - This type of term insurance plan allows you to reduce the sum assured as the tenure increases. It is useful for taking care of debts and comes with a lower premium.
   
   
10. Convertible Plans - They allow you to change the term insurance plan after a specific tenure.
     
11. Single and Joint Term Insurance Plans - A single term insurance plan offers life insurance benefits only for a single person. A joint term insurance plan provides both applicants with the same benefits.
    
    
12. Online and Offline Plans - If you visit the branch office of an insurance provider, it means that you are availing of a term insurance plan offline. If you get insurance from the app or official website of the insurer, it becomes an online plan.

Eligibility criteria for term insurance plan

The following are the eligibility criteria for term insurance plans in India:

• At the time of taking the policy, the minimum age of the policyholder will have to be 18 years.

• The maximum age of the policyholder usually depends on the minimum tenure of the policy. 

• The maximum age of maturity is usually 75 years but can also vary as per the insurer. 

• You may have to undergo a medical check-up to get a policy in some cases.

• Some policies have a fixed minimum sum assured, which is also an eligibility criterion when taking a policy.

• The minimum age at entry is calculated according to the minimum tenure offered and the minimum age at entry.

Documents required for term insurance

No matter which term plan you opt for, every insurer demands the following documents, although these may differ from one insurer to another. Some of the standard documents are given below:

• Any proof of identity. Passport, Adhaar card, Voter ID card, driving licence, a letter from a public authority or public servant verifying your identity.

• Your PAN card.

• Any proof of age. Birth certificate, driving licence, or Adhaar Card.

• Documents of address proof like electricity bill, phone bill, Voter ID card, Ration card, or even your passport.

• Income tax assessment order, employer's certificate or income tax return as proof of income.

• Some recently clicked passport-sized photos.

Why should you buy a term insurance plan?

Policy buyers often neglect term insurance plans even though they have many benefits. It is considered a basic plan that offers only the sum insured at the death of the insured policyholder. 

Let us look at the various benefits of term insurance and why we suggest you buy term insurance plans.

• Financial Stability

  In the unfortunate event of the policyholders' demise, this term plan offers a financial safety net to their families. In today's volatile and uncertain times, it is crucial to secure the future and life of your family and loved ones in your absence. 

• Simple and basic insurance plan

  Term insurance plans are easy to understand with no additional add-on, and even the premiums you have to pay are low with high return assured compared to the other plans. 

• The returns are greater

  Term plan is one of the policies where the sum assured and the benefit is much higher than the sum invested. The returns are sometimes as high as 105%.

Features and Benefits of Term Insurance Plans

Here are some of the features and benefits of term insurance plans that you should know about:

• The premium paid towards term insurance plans is eligible for tax benefits as per Income Tax Act’s section 80C.
  
  

• Insurance providers allow you to pay the premium at your convenience. Quarterly, monthly, half-yearly, and yearly payment options are offered by most insurers these days.
  
  
• Add-on plans or riders can be availed to extend the benefits offered by your term insurance plan. However, they will also increase the policy premium to some extent.
   
• You have the freedom to choose the policy tenure, sum insured, and other policy aspects as per your requirements.
  
  
• Options like premium returns upon maturity allow you to use the money spent on premiums if the insurance remains unused. However, regular term insurance might not offer this benefit. TROP (Term Return of Premium Plans) are specially designed term insurance plans with survival benefits.

How to choose a Best Term Insurance Plan India ?

Several term insurance plans are available in the market. However, you must choose the one that suits your needs and budget. Here are the few factors that can play a significant role in determining the usefulness of a term insurance plan:

• Choice of increasing the sum assured as per inflation or according to your needs.

• Option of including a rider for additional financial protection.

• Choice of availing the sum assured in the form of monthly instalments to ensure the family's financial security.

• A flexible tenure can be increased or decreased as per your insurance needs.

• Option of extending the insurance benefits after retirement.

Frequently Asked Question

Q1. Which term insurance plan is the best in India in 2022?

You cannot single out one term insurance plan as the best as hundreds of plans are available in the market. Each of these plans has its own features, advantages, and limitations.

Therefore, you must go through the features and benefits of these plans and pick the one that meets your requirements within your budget constraints.

Q2. Is the LIC term plan good?

LIC is one of India's oldest and most trusted life insurance plan providers. They can be utilised to safeguard your family from financial risks. Also, the term plans offered by LIC allow you to get maximum coverage at a reasonably low premium.

Therefore, it is an undoubtedly good option when it comes to buying a term insurance plan.

Q3. Which company is the best for term insurance plans?

The company that offers the highest claim settlement ratio and enables you to get a term insurance plan in a hassle-free manner would be the best option for you. However, determining one insurance company as the best would be difficult as different individuals have different insurance requirements.

The claim settlement ratios of Tata AIA, HDFC Life, and Max Life Insurance are the highest in India. However, LIC seems to be the best pick when it comes to affordable premiums.

Q4. Do term insurance plans cover natural death?

Yes, term insurance plans usually cover various types of deaths, including natural deaths, death by accidents, death due to illness, etc. However, deaths caused due to suicides, sexually transmitted illnesses like Aids, etc., are not covered by these plans.

If the cause of the death is a critical disease, it is usually covered by a term insurance plan. However, you must carefully go through the policy documents of the term insurance plan you are purchasing to know everything about its coverage and benefits.

I hope you liked our article on Best Term Insurance Plan in India, if you have any comments or suggestions do share them in the comments below.