Term Insurance – Best Term Plan

Term insurance is a life insurance policy that provides financial coverage to the beneficiary of the policy. If that beneficiary dies within the active tenure of the insurance, then the nominee selected by him is paid as death benefit. Term insurance plan provides cover for a specified time or “term” at a specified premium.

A term plan not only provides financial security to your family but also helps in meeting future needs like higher education of your children, marriage, etc.

Among all life insurance products, term life insurance policy offers the highest life coverage at the lowest premium. Some insurance companies also cover permanent or partial disability, in which the regular income of the policyholder is interrupted.

Remember: Insurance does not guarantee to provide coverage at the former rate of premium after the termination of the policy, unless the policyholder dies during the course of the policy. The policyholder has to either get extended coverage with different payment terms or give up the coverage altogether.

Why should you buy term insurance?
There are many reasons behind buying term insurance. In the following lines, we present some of the basic reasons for them:

Dependency of your family: You can ensure your family’s happiness and peace in the later periods of your life by providing sum assured. In addition, it caters to important life goals like education and your child’s marriage.
Asset Protection: A term plan allows you to take a loan against a property like a car or a house. However, if you do not pass, your dependents and family may bear the burden of repayment of the loan. In such circumstances, your family can use the insurance payment to help pay off the outstanding debts.
Lifestyle Risks: Current lifestyle problems often lead to various diseases. Some term insurance plans not only protect the dependents and loved ones after the death of the policyholder but also provide protection against critical illness for life. This important feature pays off on the diagnosis of some serious diseases such as heart attack or cancer.

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Best Term Insurance Plans in India
Insurance Company Term Plan Claim Settlement Ratio Maximum Maturity Age Premium (for a cover of Rs 1 crore)
Aditya Birla Sun Life Insurance ABSLI Lifeshield Plan 97.1% 75 Years ₹623 Per Month
Aegon Life i-Term 96.5% 100 Years ₹ 479 per month
Bajaj Allianz Life Cover 95% 85 Years ₹ 458 per Month
Canara HSBC OBC Life Insurance Eye Select+ Lumpsum 95.2% 99 Years ₹480 per Month
Exide Exide Life Smart 97% 55 Years ₹ 926 per Month
Edelweiss Tokyo Zindagi Plus+ Lumpsum 97.8% 80 Years ₹478 per month
Future Generali Future Generali Flexi Online Term Lumpsum 95.2% 75 Years ₹486 per month
HDFC Life Life Option 99% 85 Years ₹709 per month
ICICI Prudential iProtect Smart Lumpsum 98.6% 85 Years ₹647 per Month
India First E-Term Plan 94.2% 65 Years ₹ 422 per month
Kotak Life E-Term 97.4% 75 Years ₹654 per Month
Max Life Smart Term Plan Life Cover 98.7% 85 Years ₹571 Per Month
PNB MetLife Mera Term Plan – Full Lumpsum Payout 97.16% 99 Years ₹585 Per Month
Reliance Nippon Life Insurance Reliance DG-Term 97.71% 65 Years ₹500 per month
SBI Life Eshield 95.03% 80 Years ₹589 per Month
Tata AIA Tata Maha Raksha Supreme Lumpsum 99.1% 85 Years ₹ 927 per Month
Disclaimer: “PolicyBazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer.

Term insurance offers plan options to suit the needs of every individual. You can choose:

Preferred Sum Assured, option to pay life insurance premiums which can be lump sum, limited pay or regular pay. Add on policy term cover

Why should one compare term plans?
Comparing term plans can be a daunting task for insurance buyers. Different insurance providers offer different types of term insurance plans and each plan differs from each other based on various factors. Thus, it becomes very important to compare term insurance plans online before selecting one, in order to select the best plan as per one’s need and suitability.

While comparing term plans, it is very important to check the various aspects of the policy like insurance coverage, maturity age, claim settlement ratio etc. By comparing the quotes of different term plans, the policy buyer can choose the plans which suit their need and requirement. Meets the claim at affordable premium rate.

Comparison of term insurance plans
We have prepared the following term plan comparison charts for our readers to understand them better:

Plan Entry Age Policy Term Premium Payment Term Sum Assured Claimed Ratio
Aviva Life Shield Advantage Plan 18 Years / 55 Years 10 Years – 30 Years Single Pay, Regular Pay Minimum: ₹35,00,000Max: Option A: No Maximum Limit Option B: ₹50,00,000 96.06%
Bajaj Allianz iSecure Plan 18 Years / 60 Years 10, 15, 20, 25, 30 Years Regular Pay Minimum: ₹2,50,000 (Gen Category) ₹20,00,000 (Split Category)Max: No Maximum Limit 95.01%
Bharti AXA Life Flexi Term Plan 18 Years / 65 Years 5, 10, 15,

20 Years Regular Pay Minimum: ₹10,00,000 Maximum: ₹25,00,000 97.28%
Canara HSBC iSelect Term Plan 18 Years / 65,55,50,45, Year __ Single Pay, Regular Pay Minimum: Option 1- ₹25,00,00, Option 2- ₹50,00,000, Option 3- ₹15,00,000 Maximum: There is no maximum limit 94.04%
Edelweiss Tokyo Life Protection Plan 18 Years / 60 Years 10 – 30 Years Single Pay, Regular Pay Minimum: ₹15,00,000 Maximum: No Maximum Limit 95.82%
Exide Life Smart Term Plan 18 Years / 60 Years, 65 Years 10 – 30 Years 12 – 30 Years Regular Pay N/A 97.03%
Future Generali Flexi Online Term Plan 18 Years / 55 Years 10 – 65 Years Minus Entry Age (For Smokers)
10 – 75 Years Minus Entry Age (For Non-Smoker) Equivalent to Policy Term Minimum: ₹50,00,000Max: No Maximum Limit 95.16%
HDFC Life Click 2Protect Plus 18 Years / 65 Years 5 Years – 85 Years Minus Entry Age
10 Years – 40 Years Single Pay, Limited Pay, Regular Pay Not Applicable 99.04%
ICICI Pru iProtect Smart Plan 18 Years / 60 Years 5, 10, 15, 20 Years Single Pay, Limited Pay, Regular Pay Not Applicable 98.58%
IDBI Federal Termsurance Life Protection Plan 18 Years / 60 Years 10 – 30 Years Single Pay, Regular Pay Minimum: ₹ 5,00,000 Maximum: No Maximum Limit 95.79%
Kotak E-Term Plan 18 Years / 65 Years 5 – 40 Years Single Pay, Limited Pay, Regular Pay Minimum: ₹25,00,000 Maximum: No Maximum Limit 97.40%
LIC Tech Term Plan 18 Years / 65 Years 10 – 40 Years Equivalent to Policy Term Minimum: ₹25,00,000 Maximum: No Maximum Limit 97.79%
Max Life Online Term Plan Plus 18 Years / 60 Years Regular Pay: 10 – 50 YearsLimited Pay: 15 – 50 Years Limited Pay, Regular Pay Minimum: Regular Pay- ₹25,00,000Limited Pay- ₹25,00,000Max: ₹100 Cr 99.22%
PNB MetLife Mera Term Plan 18 Years / 65 Years 10 – 81 Years Limited Pay, Regular Pay Not Applicable 96.21%
Pramerica Life TrueShield 18 Years / 45, 50, 55 Years 7, 10, 12, 15, 20 Years Limited Pay, Regular Pay Minimum: ₹ 5,00,000 Maximum: ₹ 50 Cr 96.80%
SBI Life Eshield Plan 18 Years / 60, 65 Years 5 – 80 YearsMinus Entry Age
Equal to 10 – 75 Years Minus Entry Age Policy Term Minimum: ₹35,00,000 Maximum: No Maximum Limit 95.03%
Shriram Life Smart Protection Plan 18 Years / 65 Years 10 – 30 Years Equivalent to Policy Term Minimum: ₹1,00,000 Maximum: ₹14,00,000 85.03%
Star Union Dai-ichi Life Abhay 18 Years / 65 Years 15 – 40 Years Single Pay, Regular Pay Minimum: ₹ 50,00,000 Maximum: ₹ 100 Crore 96.74%
Tata AIA Sampoorna Raksha 18 Years / 70, 65, 50 Years 10 – 85 Years Minus Entry Age
15 – 85 Years Minus Entry Age
Whole Life – 100 Years Minus Entry Age Limited Pay, Regular Pay Minimum: ₹ 50,00,000 Maximum: No Maximum Limit 99.07%
Disclaimer: “PolicyBazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer.

When is the right time to buy term insurance?
The ideal time to buy a term plan online is: “As soon as possible.” Buying the right term plan ensures your life. Later, buying insurance at an early stage of life will cost you less premium as compared to old age.

A person whose life is dependent on his family should immediately look for a plan and buy the best insurance policy. If one has missed out on investing in a term plan at an early stage of life, then don’t neglect buying the best online term insurance now. It is better to be safe than sorry.

Term Insurance – FAQs
Question: What is the minimum and maximum age to buy a term policy?

Ans: An individual must be 18 to 65 years of age to buy a term policy; And their annual income must be minimum 2 lakh rupees.

Q: How much risk cover should I buy?

Answer: The amount of risk cover you should buy depends on your annual income. Generally, the risk cover should be 10 to 15 times your annual income. This means that if your annual income is Rs 4 lakh then you should buy a risk cover of at least Rs 40 lakh. This is thought to secure the future of the beneficiary so that he can continue his lifestyle even after the death of the insured. How much the risk cover should be, it also depends on the age of the insured. The younger you are, the higher the risk cover you can buy–usually at least 25 times. This is being said because your dependents may take a little longer to get back on their feet. Click here to know more.

Question: Can NRIs also buy a term insurance policy?

Answer: Sure. Nowadays insurance companies of India are also fulfilling the claims of NRIs.

Question: What are the benefits of buying a term insurance policy online?

Answer: Customers are always advised to buy term policies online. This is because you can compare different policies while buying a term policy online. When you buy a term plan on Policybazaar, your expenses are also less as there is no agent between you and the insurance company. You can also upload and submit your documents directly on the insurer’s website. There are many insurance policies that you can buy online only, such as SBI eShield, HDFC Click2Protect, ICICI

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