When it comes to the most popular insurance schemes in India, term insurance schemes or plans come to mind first. If the insured passes away during the tenure of the plan, the nominee will receive the lump-sum amount mentioned in the insurance plan. However, if the insured manages to survive the policy term, the individual or the nominee will not receive any money.
Term life insurance plans are also known as term insurance plans or life insurance plans. They are ideal for providing financial security to your family and loved ones should something untoward happen to you. If you are searching for the best term insurance plan to invest in, you are in the right place. This blog post will discuss the five best-term life insurance policies in India.
Five Best-Term Insurance Plans in India
If you looking for the best term insurance plan to cover your family, you can consider the five best term insurance plans in India mentioned below.
| Best Term Insurance Plans |
| 1. ICICI Pru iProtect Smart |
| 2. LIC e-Term Insurance Plan |
| 3. SBI Smart Shield |
| 4. Max Online Term Plan Plus |
| 5. HDFC Life Click 2 Protect Plus |
Factors to consider before choosing a term insurance plan
Investing in a term insurance plan is a major decision in your life. You may need to consider various factors to choose the best term insurance plan before investing in it. Here are some essential factors you should consider while investing in a term insurance plan.
1. Risk Coverage
The first and foremost factor that you must consider while choosing the best term plan is risk coverage. The primary benefit of a term plan is the range of risks it covers. Remember, the insurer will offer monetary compensation against the premium you paid under the scheme only if the cause of your death falls under its scheme risk coverage.
2. Varied Plans
Another essential factor that you must consider while choosing the best term insurance plan is plan variations. Note that insurance companies provide different insurance schemes that align with varying needs and preferences. A simple rule of these insurance schemes is the higher the premiums you pay, the greater the benefits you get.
3. Health Benefits
Term insurance plans generally cover only the life of the insured and you have to buy health insurance separately to meet your medical treatment expenses or hospitalization. However, some term insurance policies offer critical illness coverage on diagnosis of any critical illness. Also, some plans provide lumpsum payouts if diagnosed with terminal illnesses like AIDS.
4. Tax Benefit
Lastly, tax benefits are one of the major factors that you must consider when choosing the best life insurance plan in India. Choosing the right insurance plan will help you get tax benefits under Section 80C of the Income Tax Act, of 1961.
Five best term insurance plans in India: An overview
We will discuss some of the best term insurance plans, with all the essential details you need to know before investing in them.
ICICI Pru iProtect Smart
ICICI Pru iProtect Smart is one of the best term insurance plans. This life insurance plan in India is the only term plan offered by ICICI that offers payment of the insurance on the diagnosis of 34 critical illnesses. Plus, it offers tax benefits and coverage over 75 years of age.
Features and Benefits
Here are some of the features and benefits of the ICICI Pru iProtect Smart term insurance plan.
- The plan offers longer coverage for the insured
- It easily fits into different budgets
- Offers 4 different types of payment options
- The plan offers insurers the option to add accidental benefits later.
- Offers life cover benefits for terminal illnesses such as AIDS.
- The nominee will get the benefit of this term plan if the policyholder dies during the tenure or is diagnosed with terminal illnesses or permanent disability due to accidents.
- Life & Health-Along option offers critical illness benefits to the insured
- Life Plus-Along offers accident benefits to the insured.
Options Available
There are several options or variants available under the ICICI Pru iProtect Smart scheme such as:
- Life – Wavier of premiums if diagnosed with permanent disability, terminal illness benefit, and death benefit
- Life & Health – Wavier of premiums on permanent disability, terminal illness, critical illness, and death benefit
- Life Plus – Wavier of premiums if a person suffers permanent disability. It also offers accident benefits, death benefits, and terminal illness benefits.
- All-in-one –Â Wavier of premiums on permanent disability, terminal and critical illness benefits, accident benefits, and death benefits.
LIC e-Term Insurance Plan
Another best-term insurance plan that one can choose to buy in India is the LIC e-Term Insurance Plan. This is a unique term plan offered by LIC that doesn’t require an agent and one can directly purchase this term plan online. It is a pure life insurance policy that only covers the life of the insured.
Features and Benefits
- The plan can be purchased online
- Have different premium rates for smokers and non-smokers.
- The insured can return the policy purchase within 30 days of purchase if not satisfied with the terms and conditions of the plan or scheme.
- It offers a death benefit, which means if the insured dies while the plan is active, the sum assured will be paid to the nominee.
- Non-resident Indians can also purchase this term plan and they get the benefits even if they are staying abroad.
- The plan is comparatively lower priced than the offline term plans.
- The plan doesn’t offer maturity benefits.
- The plan also offers two tax benefits. If the policyholder pays a premium of up to Rs.1,50,000, tax exemption benefit is applicable. Also, the death benefit paid to the nominee is exempt from taxes under section 10(10D).
Options Available
LIC e-Term is one of the five-term plans offered by the LIC.
SBI Smart Shield
SBI Smart Shield is one of the five best term insurance plans in India that you can choose to invest in. It is a simple-term insurance plan that promises to offer financial support to the family members of the insured in case of death.
Features and Benefits
- The plan offers a death benefit which means if the policyholder dies during the tenure, the sum assured will be paid to the nominee or family members of the policyholder.
- It also offers accident benefits and terminal illness benefits so the insured or his family can benefit from this policy if an unfortunate event occurs.
- The plan offers single premium policyholders the option to surrender the policy after the completion of the second year of the policy or scheme.Â
- The plan doesn’t offer maturity benefits and the surrender amount is calculated according to a pre-determined formula.
Options Available
- Level Term Assurance – Here you only access the death benefit. This means the nominee of the scheme gets the insured sum if the policyholder dies during the tenure.
- Increased Term Insurance – This term plan offers an increase in the amount insured in the policy year after year. It is a great option if you want your family to sustain a high standard of living irrespective of inflation.
- Decreased Term Assurance (Family Protection) –Â The policy decreases the amount of policy during the duration of the policy and death. The nominee can avail of the sum on a lump sum or monthly basis.
- Decreased Term Assurance (Loan Protection) – The plan is only available for those who have home loans or car loans.
Max Online Term Plan Plus
If you are searching for the best term insurance plan in India, you can consider Max Online Term Plan Plus. It offers financial security against disease, disability, and death.
Features and Benefits
The following are some features and benefits of Max Online Term Plan Plus:
- The minimum policy purchase age is 18, while the maximum is up to 60 years.
- Policyholders can choose regular income payout options.
- Additional benefits like premium waiver, protection against accidental death, and cover for critical illnesses can also be added with additional premiums.
- Monthly, quarterly, half-yearly and annual premium payment options are available.
- For monthly plans, a grace period of 15 days is available for regular payment of premiums.
- It offers a maximum of 85 years of coverage.
- There is a 30-day free look period in the case of online plans.
Options Available
These are options available under Max Online Term Plan Plus:
- Basic Life Cover: It offers a death benefit and pays the sum assured in case of the insured person’s death during the policy term.
- Life Cover and Monthly Income: It offers death benefits plus 0.4% of the sum assured every month for a tenure of 10 months.
- Life Cover and Increasing Monthly Income: This option offers death benefits plus 0.4% of the sum assured for 10 years which increases by 10% per annum.
HDFC Click 2 Protect Plus
HDFC Click 2 Protect Plus is one of the popular pure-term insurance plans in India. A large amount of life cover is provided by this scheme against a considerably low premium rate.
Features and Benefits
Here are some features and benefits of HDFC Click 2 Protect Plus:
- The policy offers death benefits which are 125% of the sum assured or premium paid in case of single premium policies and 105% or 10 times the sum of annualized premium in case of other types of policies.
- It also offers Life stage protection under the ‘Life Option’ of the policy. Life stage protection covers individuals at each stage of their lives.
- A policyholder can increase the sum assured if required. One can also reduce the additional insurance coverage after the age of 45.
- Up to Rs. 1,50,000 in premiums paid is deducted from taxable income every financial year under Section 80C.
- A policyholder is not eligible to claim the sum assured if he survives the policy term.
Options Available
Below are the options available for HDFC Click 2 Protect Plus:
- Life Option: Life Option offers death benefits in a lump sum. It offers the assured sum on the insured person’s death.
- Extra Life Option: This option offers death benefits plus additional benefits in case of accidental death.
- Income Plus Option: This policy offers death benefits plus a monthly payout or 0.5% of the assured sum for a period of 10 years. The monthly payout can also increase every year.
Conclusion
Term insurance or life insurance plans are a great option to give financial security to your family in case of your death. There are plenty of options available when it comes to choosing the best term insurance plan. We have discussed the five best life-term insurance plans in India and the factors you need to consider before investing in them.
