List of 11 Best Term Insurance Plans in India 2021
Mr. Ranjan, aged 45 years, working with an IT MNC, lived with his wife, two kids, and parents in Bangalore. He had taken a term insurance policy for 1 crore, hoping to cover the financial commitments of his family after his absence. Due to frequent travel involved in his work, he contracted a COVID-19 infection, which spread to all his family members as well.
Despite all efforts by the doctors to keep his vitals stable, Mr. Ranjan died due to multiple organ failure and oxygen insufficiency. His family members recovered from COVID-19 but were devastated over his loss.
With the single earning member of the family no more, the future could have looked blurry for them, but thankfully, Mr. Ranjan had informed about his term plan to his wife, who then sent a claim request to the insurance provider and received the death benefit of Rs 1 crore.
Without his term insurance plan, Mr. Ranjan’s family would have had no other source of income to run their daily lives or pay for the kid’s education. Thus, a term policy is a helpful tool for anyone who prefers to secure the financial commitments of their dear and near ones, even after their demise.
Like in the example above, nobody can predict the future, but we can plan for it after understanding the risk factors. The COVID-19 pandemic spreading across the world and taking the lives of people is a classic example of how things can become uncertain very soon.
In such situations only, you need to look at ways of securing the financial condition for a better tomorrow through instruments like term life insurance. Let’s know more about this effective financial tool called term insurance.
What is a Term Insurance Policy?
A term insurance policy is a pure protection plan to safeguard the family’s financial future in case of any untoward events such as death, terminal illness, disability, etc. Still, unlike other investment products, these plans do not offer any returns on the premiums paid at the end of the policy tenure.
So, if you are looking to buy a term plan, first you need to know the risks involved in your life, the number of dependents, and what amount would suffice for them to lead the same quality of life they are experiencing now after you pass away.
There are many insurance companies in the market, with each offering a wide range of policies to choose from. It is undoubtedly a big task to select the best term plan from this extensive list, but you must invest time and effort in the search as it guarantees peace of mind for you and a stress-free future for your family.
List of 11 Best Term Insurance Plans in India 2021
We are listing the 11 best term insurance plans in India here, along with their salient features, for you to choose and buy in the year 2021.
|Plan Name||Entry Age (Min/ Max) in years||Policy Tenure (Min-Max) in years||Sum assured (minimum)||Claim Settlement Ratio (CSR)|
|LIC Tech Term||18 -65||10 – 40||₹ 50 lakhs||96.69%|
|HDFC Click2Protect Plus||25 – 65||5 – 85||₹ 10 lakhs||99.07%|
|Max Life Smart Secure Plus Plan||18 – 65||10 – 67||₹ 20 lakhs||99.22%|
|SBI Life eShield||18 – 65||5 – 80||₹ 35 lakhs||94.52%|
|Tata AIA Maha Raksha Supreme||18 – 65||10 – 40||₹ 50 lakhs||99.06%|
|ICICI Prudential iProtect Smart Term Plan||18 – 65||5 to 40||subject to minimum premium||97.84%|
|Bajaj Allianz Smart Protect Goal Term Plan||18 – 65||5 to 40||₹ 50 lakhs||98.02%|
|Canara HSBC OBC iSelect Star Term Plan||18 – 65||5 to 60||₹ 25 lakhs||98.12%|
|PNB MetLife Mera Term Plan Plus||18 – 65||10 to 65||₹ 10 lakhs||97.18%|
|Kotak e-Term Plan||18 – 65||5 to 40||₹ 25 lakhs||96.38%|
|Aditya Birla Sun Life Insurance Life Shield Plan||18 – 65||10 to 55||₹ 25 lakhs||97.54%|
While looking for an ideal term plan you also need to keep in mind certain factors. Here are a few of them.
4 Factors to keep in mind before choosing a term insurance
- Assess your needs: Do you need a term insurance policy or a money-back policy? Before deciding to buy an insurance policy, you need to be clear on the purpose. Assess your current lifestyle and discuss with your partner the future requirements, goals, ambitions, etc.; based on these, you will be easily able to pick the best term insurance policy that aligns with the flow of life.
- Know about the policy: Once you shortlist a policy, spend time reading its features and its benefits instead of relying only on the information given by the insurance agent or your friends. With all the details related to a policy available on the website of the insurance provider itself, it has become easy to collect the necessary information. One can also look for online reviews of the policy for a better idea.
- Choose the riders: Riders are valuable add-ons to extend the coverage of your base policy and have it ready to cover higher risks of your life. Although these riders are offered for an extra cost, it helps you avoid buying multiple policies to cover various risks. Some popular riders are Accidental Death Cover, Accidental Disability Cover, Premium Waiver Cover, Critical Illness Cover, Terminal Illness Cover, etc.
- Pay attention to Claim Settlement Ratio (CSR): The Claim Settlement Ratio of an insurance company must be an important parameter while choosing the best insurance policy. It is the total percentage of claims settled by an insurer in a year out of the total claims received. While a high CSR means the insurance provider clears the claim requests on time, a low CSR denotes the claim settlements are delayed or rejected consistently. Experts recommend taking a policy from an insurance company with high CSR.
Before you proceed to search for the best term life insurance policy in India, we recommend you understand all the insurance policies and their benefits in detail from the brochures available on their website. If required, you may also take the advice of insurance experts or visit iiflinsurance.com and clear your doubts before investing, as this one decision can alter your family’s future in your absence.
Which term insurance is best in India 2021?
There are plenty of term insurance policies available in the market with various features and benefits. However, here is the list of best term plans in India in 2021:
• LIC Tech Term Plan
• HDFC Click 2 Protect Plus
• Max Life Smart Secure Plus Plan
• SBI Life eShield
• Tata AIA Maha Raksha Supreme
• ICICI Prudential iProtect Smart Term Plan
• Bajaj Allianz Smart Protect Goal Term Plan
• Canara HSBC OBC iSelect Star Term Plan
• PNB MetLife Mera Term Plan Plus
• Kotak eTerm Plan
• Aditya Birla Sun Life Insurance Life Shield Plan
Which company is best for buy a term plan in India?
All insurance companies have their pros and cons; however, you should select the company to buy a term plan in India based on their claim settlement ratio, solvency ratio, and reviews.
Claim settlement ratio (CSR) is the number of claims settled in a year by an insurance company. Higher the CSR more reliable is the insurer.
The solvency ratio refers to the measure of risk that an insurer faces, which it cannot absorb. Insurers with a higher solvency ratio are more financially stable and hence, more equipped to pay the insurance claims.
Reviews are genuine testimonials or reviews by the customers, determining the insurer's reputation among the buyers.
How do I choose the best insurance plan?
While choosing the best insurance plan, you need to consider the following factors:
• Evaluate your needs first
• Thoroughly go through the policy features, terms, and conditions
• Look for riders available with the policy
• Enquire about the insurer's Claim Settlement Ratio
What things should you consider while buying a new term plan in 2021?
To buy a new term plan in 2021, you should consider the following factors:
• Your life stage
• Your income
• Number of dependents
• Any debts and liabilities
• The cover amount you will require to fulfill your family's requirements.
What is the best age for a term insurance policy?
The ideal age to buy term insurance is at the earliest in your life stage to garner maximum benefits. However, you can purchase a term plan as early as 18 years.
How many term insurance policies can I buy in India?
You can buy more than one term insurance plan to fulfill your requirements. You can also have more than one nominee in your insurance policy.
What are the different types of term insurance plans available in India in 2021?
The different types of term insurance plans available in India in 2021 are:
• Level term plans
• Term Return of Premium Plans (TROP)
• Increasing term plan
• Decreasing term plans
• Convertible term plans
• Group Term plans
Which insurance company has the best claim settlement ratio?
According to IRDA Life Insurance Claim Settlement Ratio 2021, Max Life Insurance has the best claim settlement ratio of 99.00%, HDFC Life 99.07%, and Tata AIA 99.06%.
What are the documents required to buy a term insurance plan online?
Below are the standard documents that are needed to buy a term insurance plan online
• Duly filled Proposal form
• Address Proof - Driving License, Aadhaar Card, Passport, Voter ID, Ration card
• Identity Proof – Aadhaar Card, Passport, PAN card, Voter ID
• Income Proof - Salary slips, latest for 16, Bank statement, last 3 years Income tax return.
• Age Proof – Passport, PAN card, Birth certificate.