Best term insurance plans

Best Term Insurance Plans in India – Online & offline

Term insurance is like a safety net which saves your family from financial falls if something untoward happens to you. Many people are plagued by the misconception that the term insurance plans are insignificant as they do not offer any cash value upon term completion. But the fact is that there are certain term insurance plans that are indispensable in providing excellent insurance value to the beneficiary in case of the demise of the policyholder within the policy term. Hassle-free insurance premium payment ensures safety with ease of the best term plans.

Term plans are the oldest form of insurance and the concept of life insurance began with them. There is a set of the best term insurance plans available in the insurance market that offer the most basic and purest form of protection along with life coverage for a fixed time period (term). The affordability of these best term plans establishes them as the most popular insurance product for people from various sections of the society.

This set of best term insurance plans can also be converted into permanent life insurance plans if desired by the policyholder. One can decide the best term plans options suiting his/her preferences and financial needs.

Best Term Insurance Plans

There are several online term insurance plans from best insurance firms for you to choose from. A clear vision of the insurance requirements and adequate sum assured can help you narrow down the best term insurance plans.

PlanEntry Age (Min/Max)Maturity Age (Min/Max)Policy Term (Min/Max)Sum Assured (Min/Max)
LIC eTerm Plan18/60 years75 years10/35 yearsRs 25,000/Rs 50 lakhs
SBI Life e-Shield Plan18/65 years75 years5/30 yearsRs 35 lakhs/No limit
Max Life Online Term Plan Plus18/60 years85 years10/50 yearsRs 25 lakhs/Rs 100 crores
HDFC Life Click2Protect Plus Term Plan18/65 years28/75 years10/40 yearsRs 25 lakhs/No limit
AEGON Life iTerm Insurance Plan18/65 years100 years5/62 yearsRs 25 lakhs/No limit
Birla Sun Life Protect @Ease Term Plan18/65 years5/40 yearsRs 30 lakhs
ICICI Prudential-iProtect Smart Plan18/65 years3/75 yearsMax- 45 yearsSubject to the minimum premium/No limit
Tata AIA iRaksha Supreme Online Term Plan18/70 years80 years10/40 yearsRs 50 lakhs/No limit
IDBI Federal iSurance Flexi Lump Sum Plan18/60 years28/80 years10/62 yearsRs 50 lakhs/Rs 30,00,00,000
Canara HSBC OBC iSelect Lumpsum18/70 years80 years5/40 yearsRs. 25 lakhs & above

LIC e-Term:

  • Entry age: Minimum entry age is 18 years while the maximum age limit is of 60 years.
  • Plan term: The minimum time that has to be chosen is ten years. The upper limit is 35 years.
  • Sum assured: The minimum sum assured is Rs. 25,000 for aggregate category and Rs. 50, 00,000 for non-smoker category. There is no upper limit.
  • Premium: Minimum premium is Rs. 2875 per annum. The maximum premium is decided in accordance to sum assured.
  • Premium frequency: Yearly mode of payment along with a grace period of 30 days.
  • Coverage: Cover is provided only up to 75 years of age. A lapsed term policy can be renewed within two years. There is a free look period in which the customer can return the plan and receive the amount paid minus some charges.
  • Riders: Cover can be enhanced by Rs. 1 lakh to Rs. 25,000 and the extra premium has to be paid along with the original premium.
  • Claim Settlement Ratio: 98.31%

SBI Life e-Shield

  • SBI offers one of the best term insurance plans in India. This pure term online plan is for individual insurance and is a non-linked best term plan.
  • Entry age: The minimum age is 18 years while the maximum entry age is 65 years for level cover and level cover with accidental death rider. For other increasing cover plan options, it is 60 years.
  • Policy term: The term can be five years to 30 years.
  • Sum assured: The minimum amount is Rs. 35 lakhs while there is no upper limit.
  • Premium: A minimum premium sum of Rs. 2,779 per annum is payable by the insured.
  • Premium frequency: Premiums can be paid in yearly instalments.
  • Coverage: SBI Life e-Shield offers life cover up to a maximum age of 75 years.
  • Riders: Accidental Death Benefit and Accidental Total & Permanent Disability riders can be opted for by the customer.
  • Claim Settlement Ratio: 96.69%.

Max Life Online Term Plan Plus

  • With simple online application process, Max Life Online Term Plan is among the best term insurance plans in India.
  • Entry age: Minimum entry age is 18 years while the maximum age limit is 60 years.
  • Plan Term: The minimum term is 10 years which can go up to 50 years along with interval for one year.
  • Sum assured: Minimum sum assured is Rs. 25 lakhs which can max up to Rs. 100 crore.
  • Premium: A minimum premium sum of Rs. 2,200/- per annum is payable by the insured (Age 18 years, Female, Non-smoker, Policy Term 10 years, Sum Assured Variant).
  • Premium frequency: This term plan allows only annual premium payment.
  • Coverage: Cover is provided just up to 85 years of age.
  • Riders: Customers can opt for additional rider namely Max Life Comprehensive Accident Benefit and Max Life Waiver of Premium Plus Rider.
  • Claim Settlement Ratio: 98.26% (FY 2017-18)

HDFC Life Click2Protect Plus Term Plan

  • Just like its name, this term insurance plan is swift and very comprehensive; hence is in the list of best term insurance plans.
  • Entry age: One needs to be at least 18 years old while buying this policy and not more than 65 years of age.
  • Policy term: The tenure of the policy ranges from 10-40 years.
  • Sum assured: The minimum sum assured is Rs. 25 lakh and there is no upper limit.
  • Premium: The minimum premium payable is Rs. 3000 per annum.
  • Premium frequency: Premiums can be paid monthly, quarterly, half yearly or annually.
  • Coverage: Under this term policy, the maximum age up to which one can be insured is 75 years.
  • Riders: Like best term plans, life option with additional premium can be chosen by the policyholder. Accidental death rider can be included in the policyholder.
  • Claim Settlement Ratio: 99.67% (FY 2016-17).

AEGON Life iTerm Insurance Plan

  • Customers can avail the features of best term insurance plans by applying online and reducing the time required for a vast array of paperwork.
  • Entry age: The minimum entry age is 18 years while the maximum age limit is 65 years.
  • Policy term: The tenure of this term policy ranges from 5 years to 62 years.
  • Sum assured: The minimum sum assured is Rs. 25 lakhs with no upper limit.
  • Premium: The premium sum is calculated based on the sum assured.
  • Premium Frequency: Premiums can be paid as a single instalment or can be paid annually.
  • Coverage: Cover can be availed for a maximum age limit of 100 years.
  • Riders: Four riders are available for the policyholder, namely Aegon Life AD Rider, Aegon Life WOP, Aegon Life iDisability Rider, Aegon Life iCI Rider and Aegon Life WoP Rider on CI.
  • Claim Settlement Ratio: 95.67% (FY 2017-18)

Birla Sun Life Protect @Ease Term Plan

  • One of the best term plans, it is very customer friendly and offers the option of choosing the lowest policy term.
  • Entry age: The minimum entry age is 18 years while the maximum age is 65 years.
  • Policy term: This plan offers minimum policy tenure of 5 years while the maximum is of 40 years.
  • Sum assured: Minimum sum assured is Rs. 30 lakhs.
  • Premium: The premium amount is decided in accordance to the sum assured.
  • Premium frequency: Premium can be paid on a regular or annual basis. For Single Pay, it is of 5 years and for Limited Pay it is of 7 years.
  • Coverage: This policy offers coverage for up to 80 years of age only.
  • Riders: Customers can opt for additional rider namely, BSLI Accidental Death and Disability Rider, BSLI Surgical Care Rider, BSLI Critical Illness Rider, BSLI Accidental Death Benefit Rider Plus, BSLI Waiver of Premium and BSLI Hospital Care Rider.
  • Claim Settlement Ratio: 95.29% (FY 2014-15)

ICICI Prudential-iProtect Smart Plan

  • With additional riders and flexible options, ICICI Prudential –iProtect Smart plan is one of the best term plans.
  • Entry age: The minimum entry age is 18 years which can max up to 65 years of age.
  • Policy term: The maximum policy term offered under the plan is of 45 years.
  • Sum assured: The minimum sum assured is subject to the minimum premium payable.
  • Premium: The minimum premium amount required to run this policy is Rs. 2400 per annum.
  • Premium frequency: Single pay, regular pay and limited pay options are available. Premium can be paid as a single sum or can be divided and paid annually, half-yearly or monthly.
  • Coverage: The maximum age on maturity cannot be more than 75 years.
  • Riders: This policy offers riders like accidental death benefit and critical illness benefit to widen the insurance cover.
  • Claim Settlement Ratio: 97.88% (FY 2017-18).

Tata AIA iRaksha Supreme Online Term Plan

  • This is an all in one package policy when it comes to being one of the best term plans.
  • Entry age: Individuals of age between 18-70 years only are eligible to purchase this online term plan.
  • Policy term: The cover can be chosen for a minimum term of 10 years and a maximum tenure of 40 years.
  • Sum assured: Minimum sum assured is Rs. 50 lakh and there is no cap on the maximum limit.
  • Premium: A minimum annual premium of Rs. 7,000 is required to be paid by the insured (30 year old male, non-smoker, policy term of 25 years, Sum Assured of Rs 1, 00, 00,000). Non-smokers and women can enjoy lower premium rates while taking up online term policy.
  • Premium frequency: Premium can be paid as a lump sum in a single premium or regular and limited period payment can be opted. Premium can be paid annually or semi-annually.
  • Coverage: One can enjoy life cover until 80 years of age.
  • Riders: Extra add-ons like Accidental Death rider and Dismemberment Long Scale rider can be bought at an extra premium.
  • Claim Settlement Ratio: 98.00% (FY 2017-18)

IDBI Federal iSurance Flexi Lump Sum Plan

  • Under this plan, IDBI offers the lump sum death benefit with conversion option. This pure term online plan is specifically tailor-mode for life.
  • Entry age: The minimum age is 18 years while the maximum entry age is 60 years for the level cover.
  • Policy term: The term can be 10 years to 62 years.
  • Sum assured: The minimum amount is of Rs. Rs 50, 00,000 and the maximum sum assured is of Rs 30, 00, 00,000.
  • Premium: A minimum premium sum of Rs. 7840 per annum is payable by the insured (30 year-old male, policy term of 30 years for a basic sum assured of Rs 1 crore).
  • Premium frequency: Premiums can be paid in Yearly, Half-yearly, Quarterly, Monthly
  • Coverage: IDBI Federal iSurance Flexi Lumpsum Plan offers life cover up to a maximum age of 80 years..
  • Claim Settlement Ratio: 90.33%. (FY 2016-17)

Canara HSBC OBC iSelect Lumpsum

  • Canara HSBC OBC iSelect Lumpsum is a pure protection term plan that provides life insurance and terminal illness cover along with cover against accidental death/ disability. It also gives you an option to secure an income for your family even in your absence.
  • Entry age: The minimum age is 18 years while the maximum entry age is 70 years for the life assured. The age limit for the spouse is in between 18 to 50 years.
  • Policy term: The term can be 5 years to 40 years.
  • Sum assured: The minimum amount is of Rs. Rs 25, 00,000 and above for the life assured; whereas, for the spouse it is Rs 25, 00,000 as a fixed amount.
  • Premium: A minimum premium sum of Rs. 10,818/- per annum is payable by the insured (34 year-old male, term of 26 years for a basic sum assured of Rs 1.5 crore).
  • Premium frequency: Premiums can be paid in Yearly and Monthly
  • Coverage: Canara HSBC OBC iSelect Lumpsum Plan offers life cover up to a maximum age of 80 years.
  • Riders: Additional Accidental Death Benefit and Accidental Total and Permanent Disability riders can be opted for by the customer.
  • Claim Settlement Ratio: 99.85%. (FY 2016-17)

Why Does One Need to Have a Term Insurance?

Life insurance products are not developed just to provide returns in the lifetime of the policyholder. After the unexpected demise of an insured, the dependents on her/his income will suffer significantly due to lack of finances. The best term plans in the market are saviours in such situations. To be able to clear the mental fog regarding which would be the best term plans for you, have a look at the reasons as to why they are so important.

  • Sound Finances:

Best term insurance plans provide a wide financial safety net. In case of accidental demise of the policyholder, his/her family members can have a financial back up to rely on.

  • Affordability:

Instead of being boggled by a host of complex insurance products with extra add-ons that can cost you a fortune, it is wiser to purchase a basic term plan. Best term insurance plans are not only affordable but also offer many additional features.

  • Good Return Value:

When compared to the term insurance premium, the return received by the beneficiary in best term insurance plans is much higher. There is no requirement to manage investment fund as they offer hassle-free returns.

  • Wide Coverage:

One can choose from a wide range of sum assured in best term plans, according to which the insurance premium is calculated. Ideal coverage is ten times the income of the policyholder. Careful assessment of best term plans can reduce the chances of under-insurance and over-insurance.

  • Surviving Policy Term:

Best term insurance plans do not provide survival benefits. Nevertheless, there is a provision of premium refund under Term Return of Premium Plans (TROPs).

  • Suitable Policy Term:

One can choose from different policy terms while taking a term insurance policy. This ensures the financial security of the family during the chosen fixed duration for the best term plans.

  • Fewer Claim Rejections:

If a policy among the best term plans has been active for more than a decade, the chances of claim rejection are almost negligible. Best term insurance plans have excellent claim settlement ratios.

  • Plan Flexibility:

Best term insurance plans provide the option of life insurance purchase in offline as well as online mode. For a policy of sum assured below Rs. 50 lakh, health check-ups are not mandatory.

  • Add-ons:

Insured can choose to enhance best term plans by adding riders. Rides offer additional protection at very nominal charges.

  • Minimal Brokerage:

Since term insurance premium is low in value, the overhead of broker charges is proportionally reduced in case of best term insurance plans. Online term insurance plans offer zero brokerage service to customers.

  • Easy Payment Options:

Policyholders can decide the payment options for best term plans, according to his/her convenience. Term insurance premiums can be paid limitedly, singly or regularly.  Limited and regular plans have the option of monthly, quarterly, half-yearly and annual premium payment.

  • Varied plans:

Best term insurance providers offer different kinds of insurance plans to suit everyone’s need. Single or family term plans can be availed suiting one’s preferences.

  • Tax Rebate:

All premium payment for term insurance offer tax benefits to the insured under Section 80C of Income Tax Act. Upon the death of the insured, the sum assured received by the nominee is eligible for tax deductions under Section 10D too.

Advantages of Online Term Insurance Plans

Best term insurance plans are getting even better with digitalisation. Purchasing online term insurance is safe and convenient for customers in many different ways.

  • Offers on Premium:

Since online sales of term policies marginalize the need of agents and field officers, insurers pass on the benefits like zero commission to their customers. The result is, lower policy cost for the best term plans.

  • Hassle-Free Process:

One can choose from a vast platter of the best term plans with the click of a button. Filling out the policy application and uploading necessary documents can be done from anywhere in the world.

  • Easy Assessment:

Online best term insurance plans can be bought after proper evaluation, without the influence of sales agent.

  • Quick Acceptance by Insurer:

Online customers are considered low risk by the insurers. Hence their policy applications are more readily accepted.