5 Best Term Life Insurance plan in India 2023

Best Term Life Insurance plan in India | How to select a term life insurance for your needs | which is the best term life insurance policy

This post was most recently updated on January 8th, 2023

Term life insurance plan is a popular choice for individuals looking to provide financial protection to their families or beneficiaries in the event of their untimely demise. It is a simple and affordable way to ensure that your loved ones are financially secure even in your absence. In this article, we will take a look at the best term life insurance plans in India, including their features, benefits, and factors to consider when selecting the best term life insurance plan in India.

How Does Term Life Insurance Plan Work in India?

A term life insurance plan is a contract between the policyholder and the insurer, in which the insurer agrees to pay a sum of money (the death benefit) to the policyholder’s beneficiary in the event of the policyholder’s death during the policy term. The policy term is the length of time for which the policy is in effect, and it can range from 5 years to 30 years or more, depending on the policy.

Term Life Insurance plan in India
Best Term Life Insurance plan in India

The policyholder pays a premium to the insurer at regular intervals (monthly, quarterly, or annually) in exchange for the death benefit. If the policyholder dies during the policy term, the insurer pays the death benefit to the beneficiary. If the policyholder survives the policy term, the policy expires and the coverage ends. The policy does not have any cash value and does not pay out any benefits to the policyholder or their beneficiaries if the policyholder is still alive at the end of the policy term.

Consider reading – Types of Insurance in India – 7 Key Things to consider

Features of Term Life Insurance Plans in India

Features of Term Life Insurance Plans in India

  • Coverage Amount: The coverage amount is the sum of money that the insurer agrees to pay to the policyholder’s beneficiary in the event of the policyholder’s death. The policyholder can choose the coverage amount based on their financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  • Policy Term: The policy term is the length of time for which the policy is in effect. The policyholder can choose the policy term based on their age, financial obligations, and other factors.
  • Premium Payment Frequency: The policyholder can choose the premium payment frequency based on their convenience. Most term insurance policies offer the option of paying premiums on a monthly, quarterly, or annual basis.
  • Premium Payment Mode: The policyholder can choose the premium payment mode based on their convenience. Most term insurance policies offer the option of paying premiums through online payment gateways, debit or credit card, or direct debit from a bank account.
  • Rider Options: Term insurance policies in India offer various rider options that can be added to the policy to enhance coverage. Some of the common rider options include accidental death benefits, critical illness coverage, and waiver of premium.

Benefits of Buying a Term Life Insurance plan in India

There are several benefits of buying a term life insurance plan in India. Here are a few key benefits:

  1. Financial protection for family: Term life insurance provides financial protection to the policyholder’s family in the event of the policyholder’s death. The policy pays out a lump sum amount to the beneficiary, which can be used to meet the policyholder’s financial obligations, such as mortgage payments, children’s education expenses, and other debts.
  2. Affordable premiums: Term life insurance premiums are generally more affordable compared to other types of life insurance policies. This makes it an ideal option for individuals who are looking for a cost-effective way to provide financial protection to their families.
  3. Flexibility: Term life insurance offers flexibility in terms of the policy term, coverage amount, and premium payment frequency. Policyholders can choose the policy term and coverage amount based on their financial needs and obligations, and the premium payment frequency based on their convenience.
  4. Simplicity: Term life insurance is a simple and straightforward insurance policy that does not require the policyholder to pay premiums for the entire policy term. This makes it an ideal option for individuals who are looking for a basic and affordable life insurance policy.
  5. Tax benefits: Term life insurance premiums are eligible for tax deductions under Section 80C of the Income Tax Act. This can help policyholders save on their income tax outgo.

How to select the Best Term Life insurance Plan in India?

Selecting the best term life insurance policy in India depends on your financial needs and goals. Here are a few factors to consider when choosing a term life insurance policy:

  1. Coverage amount: Choose a coverage amount that meets your financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  2. Policy term: Choose a policy term that aligns with your age, financial obligations, and other factors.
  3. Premiums: Compare the premiums of different term life insurance policies to find the most cost-effective option.
  4. Claim settlement ratio: Consider the claim settlement ratio of different insurance companies before buying a policy. A high claim settlement ratio indicates the company’s financial stability and ability to pay out claims. Each year IRDA publishes the claim settlement ratio for each insurance company.
  5. Policy exclusions: Review the exclusions of different term life insurance policies to understand what is not covered by the policy.
  6. Rider options: Consider adding rider options to your term life insurance policy to enhance the coverage.
  7. Company reputation: Choose an insurance company that has a good reputation and is financially stable.
  8. Customer service: Consider the customer service offered by different insurance companies before buying a policy.

It is important to carefully review the terms and conditions of different term life insurance policies and compare the features and benefits before making a decision. It may also be helpful to seek the advice of a financial advisor or insurance broker before choosing a term life insurance policy.

Mistakes to avoid while buying term Insurance in India

Here are some mistakes to avoid when buying term insurance in India:

  1. Not comparing policies: It is important to compare policies from different insurers to ensure that you are getting the best coverage at the most affordable price.
  2. Not disclosing pre-existing medical conditions: Failing to disclose pre-existing medical conditions can result in your claim being denied.
  3. Not reading the fine print: It is important to thoroughly read and understand the terms and conditions of the policy before purchasing it.
  4. Not reviewing the policy periodically: Life insurance needs and circumstances change over time. It is important to review your policy periodically to ensure that it still meets your needs.
  5. Not purchasing sufficient coverage: It is important to purchase sufficient coverage to ensure that your loved ones are financially protected in the event of your death or disability.
  6. Not considering the option to convert to a permanent policy: Some term insurance policies allow you to convert to a permanent policy, such as whole life insurance, without the need for a medical exam. This can be a good option if your health has changed since purchasing the term policy.
  7. Purchasing insurance for the wrong reasons: Insurance should be purchased to protect against financial loss, not as an investment.

5 Best Term Life Insurance plan in India in 2023

The Top 5 Best Term Life Insurance plans in India in 2023 are as below:

  1. LIC e-Term Insurance Plan: LIC’s e-Term insurance plan is a term life insurance policy that is available online. It provides coverage for a specific term, or length of time, and pays a death benefit to the beneficiary if the policyholder dies during the term of the policy. The policy does not have any cash value and does not accumulate any savings or investment component.
  2. SBI eShield: SBI eShield is a term insurance plan offered by the State Bank of India (SBI) that provides financial protection to the policyholder’s family in the event of the policyholder’s death. The plan offers a coverage amount of up to Rs. 1 crore and a policy term of up to 30 years. The policy also offers various rider options such as accidental death benefits, critical illness coverage, and waiver of premium. The premium for this plan is affordable and can be paid on a monthly, quarterly, or annual basis.
  3. HDFC Life Click 2 Protect Plus: HDFC Life Click 2 Protect Plus is a term insurance plan that offers a coverage amount of up to Rs. 50 crore and a policy term of up to 50 years. The plan also offers various rider options such as accidental death benefits, critical illness coverage, and waiver of premium. The premium for this plan is competitive and can be paid on a monthly, quarterly, or annual basis.
  4. ICICI Prudential iProtect Smart: ICICI Prudential iProtect Smart is a term insurance plan that offers a coverage amount of up to Rs. 50 crore and a policy term of up to 50 years. The plan also offers various rider options such as accidental death benefits, critical illness coverage, and waiver of premium. The premium for this plan is competitive and can be paid on a monthly, quarterly, or annual basis.
  5. Max Life Online Term Plan Plus: Max Life Online Term Plan Plus is a term insurance plan that offers a coverage amount of up to Rs. 50 crore and a policy term of up to 40 years. The plan also offers various rider options such as accidental death benefits, critical illness coverage, and waiver of premium. The premium for this plan is competitive and can be paid on a monthly, quarterly, or annual basis.

LIC e-Term Life Insurance Plan

Here are the complete features and details of the LIC e-Term Life Insurance Plan:

  1. Coverage: The e-Term insurance plan provides life insurance coverage for a specific term, or length of time. If the policyholder dies during the term of the policy, the death benefit will be paid to the beneficiary.
  2. Term options: The policy term can be chosen from a range of options, including 5, 10, 15, 20, 25, or 30 years.
  3. Premiums: Premiums for the e-Term insurance plan are generally lower than those for traditional life insurance policies. Premiums are calculated based on factors such as the policyholder’s age, gender, health, and coverage amount.
  4. Online application: The e-Term insurance plan can be applied for and purchased online, making it convenient and easy to get coverage.
  5. No cash value: The e-Term insurance policy does not have any cash value and does not accumulate any savings or investment component.
  6. Riders: Policyholders have the option to add riders, or additional coverage, to their e-Term insurance policy. This can include accidental death benefit coverage or critical illness coverage.
  7. Claim settlement: In the event of the policyholder’s death, the beneficiary can file a claim for the death benefit. The claim process for the e-Term insurance plan is straightforward and can be completed online.
  8. Eligibility: The e-Term insurance plan is available to individuals between the ages of 18 and 65. The maximum coverage amount depends on the policyholder’s age and the chosen term length.
  9. Tax benefits: Premiums paid for the e-Term insurance plan are eligible for tax deductions under section 80C of the Income Tax Act. The death benefit received by the beneficiary is tax-free under section 10(10D) of the Income Tax Act.

LIC Claim settlement Ratio in 2022: 98.62%

SBI eShield Term Life Insurance plan

SBI eShield is a term life insurance plan offered by the State Bank of India (SBI) that provides financial protection to the policyholder’s family in the event of the policyholder’s death. Here are some of the features and details of the SBI eShield term insurance plan:

  • Coverage Amount: The SBI eShield term insurance plan offers a coverage amount of up to Rs. 1 crore. The policyholder can choose the coverage amount based on their financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  • Policy Term: The SBI eShield term insurance plan offers a policy term of up to 30 years. The policyholder can choose the policy term based on their age, financial obligations, and other factors.
  • Premium Payment Frequency: The policyholder can choose the premium payment frequency for the SBI eShield term insurance plan based on their convenience. The policy offers the option of paying premiums on a monthly, quarterly, or annual basis.
  • Premium Payment Mode: The policyholder can choose the premium payment mode for the SBI eShield term insurance plan based on their convenience. The policy offers the option of paying premiums through online payment gateways, debit or credit card, or direct debit from a bank account.
  • Rider Options: The SBI eShield term insurance plan offers various rider options that can be added to the policy to enhance coverage. Some of the common rider options include an accidental death benefit, critical illness coverage, and waiver of premium.
  • Eligibility: The SBI eShield term insurance plan has the following eligibility criteria:
    • Minimum age at entry: 18 years
    • Maximum age at entry: 65 years
    • Minimum policy term: 5 years
    • Maximum policy term: 30 years
  • Exclusions: The SBI eShield term insurance plan has the following exclusions:
    • Suicide or self-inflicted injury within 1 year of the policy commencement date or reinstatement date
    • Death due to war, terrorism, or participation in hazardous activities
    • Death due to pre-existing medical conditions that were not disclosed at the time of policy purchase
  • Claim Process: The policyholder’s beneficiary can file a claim for the SBI eShield term insurance plan by submitting the required documents and filling out the claim form. The documents required for the claim process include the policy documents, a death certificate, and a medical certificate stating the cause of death. The claim process may vary based on the rider options chosen by the policyholder.

SBI Life Claim settlement ratio in 2022: 93.09%

HDFC Life Click 2 Protect Plus Term Life Insurance plan

HDFC Life Click 2 Protect Plus is a term life insurance plan that provides financial protection to the policyholder’s family in the event of the policyholder’s death. Here are some of the features and details of the HDFC Life Click 2 Protect Plus term insurance plan:

  • Coverage Amount: The HDFC Life Click 2 Protect Plus term insurance plan offers a coverage amount of up to Rs. 50 crore. The policyholder can choose the coverage amount based on their financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  • Policy Term: The HDFC Life Click 2 Protect Plus term insurance plan offers a policy term of up to 50 years. The policyholder can choose the policy term based on their age, financial obligations, and other factors.
  • Premium Payment Frequency: The policyholder can choose the premium payment frequency for the HDFC Life Click 2 Protect Plus term insurance plan based on their convenience. The policy offers the option of paying premiums on a monthly, quarterly, or annual basis.
  • Premium Payment Mode: The policyholder can choose the premium payment mode for the HDFC Life Click 2 Protect Plus term insurance plan based on their convenience. The policy offers the option of paying premiums through online payment gateways, debit or credit card, or direct debit from a bank account.
  • Rider Options: The HDFC Life Click 2 Protect Plus term insurance plan offers various rider options that can be added to the policy to enhance coverage. Some of the common rider options include accidental death benefits, critical illness coverage, and waiver of premium.
  • Eligibility: The HDFC Life Click 2 Protect Plus term insurance plan has the following eligibility criteria:
    • Minimum age at entry: 18 years
    • Maximum age at entry: 60 years (for a policy term of up to 40 years)
    • Maximum age at entry: 55 years (for a policy term of up to 50 years)
    • Minimum policy term: 5 years
    • Maximum policy term: 50 years
  • Exclusions: The HDFC Life Click 2 Protect Plus term insurance plan has the following exclusions:
    • Suicide or self-inflicted injury within 1 year of the policy commencement date or reinstatement date
    • Death due to war, terrorism, or participation in hazardous activities
    • Death due to pre-existing medical conditions that were not disclosed at the time of policy purchase
  • Claim Process: The policyholder’s beneficiary can file a claim for the HDFC Life Click 2 Protect Plus term insurance plan by submitting the required documents and filling out the claim form. The documents required for the claim process include the policy documents, a death certificate, and a medical certificate stating the cause of death. The claim process may vary based on the rider options chosen by the policyholder.

HDFC Life Claim settlement ratio in 2022: 98.01%

ICICI Prudential iProtect Smart Term Life Insurance plan

ICICI Prudential iProtect Smart is a term life insurance plan that provides financial protection to the policyholder’s family in the event of the policyholder’s death. Here are some of the features and details of the ICICI Prudential iProtect Smart term insurance plan:

  • Coverage Amount: The ICICI Prudential iProtect Smart term insurance plan offers a coverage amount of up to Rs. 50 crore. The policyholder can choose the coverage amount based on their financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  • Policy Term: The ICICI Prudential iProtect Smart term insurance plan offers a policy term of up to 50 years. The policyholder can choose the policy term based on their age, financial obligations, and other factors.
  • Premium Payment Frequency: The policyholder can choose the premium payment frequency for the ICICI Prudential iProtect Smart term insurance plan based on their convenience. The policy offers the option of paying premiums on a monthly, quarterly, or annual basis.
  • Premium Payment Mode: The policyholder can choose the premium payment mode for the ICICI Prudential iProtect Smart term insurance plan based on their convenience. The policy offers the option of paying premiums through online payment gateways, debit or credit card, or direct debit from a bank account.
  • Rider Options: The ICICI Prudential iProtect Smart term insurance plan offers various rider options that can be added to the policy to enhance coverage. Some of the common rider options include accidental death benefits, critical illness coverage, and waiver of premium.
  • Eligibility: The ICICI Prudential iProtect Smart term insurance plan has the following eligibility criteria:
    • Minimum age at entry: 18 years
    • Maximum age at entry: 60 years (for a policy term of up to 40 years)
    • Maximum age at entry: 55 years (for a policy term of up to 50 years)
    • Minimum policy term: 5 years
    • Maximum policy term: 50 years
  • Exclusions: The ICICI Prudential iProtect Smart term insurance plan has the following exclusions:
    • Suicide or self-inflicted injury within 1 year of the policy commencement date or reinstatement date
    • Death due to war, terrorism, or participation in hazardous activities
    • Death due to pre-existing medical conditions that were not disclosed at the time of policy purchase
  • Claim Process: The policyholder’s beneficiary can file a claim for the ICICI Prudential iProtect Smart term insurance plan by submitting the required documents and filling out the claim form. The documents required for the claim process include the policy documents, a death certificate, and a medical certificate stating the cause of death. The claim process may vary based on the rider options chosen by the policyholder.

ICICI Pru Life Claim settlement ratio in 2022: 97.90%

Max Life Online Term Plan Plus Term life insurance plan

Max Life Online Term Plan Plus is a term life insurance plan that provides financial protection to the policyholder’s family in the event of the policyholder’s death. Here are some of the features and details of the Max Life Online Term Plan Plus term insurance plan:

  • Coverage Amount: The Max Life Online Term Plan Plus term insurance plan offers a coverage amount of up to Rs. 50 crore. The policyholder can choose the coverage amount based on their financial needs and obligations, such as outstanding debts, mortgage payments, children’s education expenses, and other financial responsibilities.
  • Policy Term: The Max Life Online Term Plan Plus term insurance plan offers a policy term of up to 40 years. The policyholder can choose the policy term based on their age, financial obligations, and other factors.
  • Premium Payment Frequency: The policyholder can choose the premium payment frequency for the Max Life Online Term Plan Plus term insurance plan based on their convenience. The policy offers the option of paying premiums on a monthly, quarterly, or annual basis.
  • Premium Payment Mode: The policyholder can choose the premium payment mode for the Max Life Online Term Plan Plus term insurance plan based on their convenience. The policy offers the option of paying premiums through online payment gateways, debit or credit card, or direct debit from a bank account.
  • Rider Options: The Max Life Online Term Plan Plus term insurance plan offers various rider options that can be added to the policy to enhance coverage. Some of the common rider options include accidental death benefits, critical illness coverage, and waiver of premium.
  • Eligibility: The Max Life Online Term Plan Plus term insurance plan has the following eligibility criteria:
    • Minimum age at entry: 18 years
    • Maximum age at entry: 55 years (for a policy term of up to 40 years)
    • Minimum policy term: 5 years
    • Maximum policy term: 40 years
  • Exclusions: The Max Life Online Term Plan Plus term insurance plan has the following exclusions:
    • Suicide or self-inflicted injury within 1 year of the policy commencement date or reinstatement date
    • Death due to war, terrorism, or participation in hazardous activities
    • Death due to pre-existing medical conditions that were not disclosed at the time of policy purchase
  • Claim Process: The policyholder’s beneficiary can file a claim for the Max Life Online Term Plan Plus term insurance plan by submitting the required documents and filling out the claim form. The documents required for the claim process include the policy documents, a death certificate, and a medical certificate stating the cause of death. The claim process may vary based on the rider options chosen by the policyholder.

Max Life Claim settlement ratio in 2022: 99.35%

FAQs on Term Life Insurance Plans in India

  1. What is term life insurance?

    Term life insurance is a type of insurance policy that provides financial protection to the policyholder's family in the event of the policyholder's death. The policy pays out a lump sum amount to the beneficiary, which can be used to meet the policyholder's financial obligations, such as mortgage payments, children's education expenses, and other debts.

  2. How does term life insurance work?

    Term life insurance works by providing financial protection to the policyholder's family in the event of the policyholder's death. The policyholder pays premiums for the policy term, and in the event of their death during the policy term, the beneficiary receives a lump sum amount as the death benefit.

  3. How long does term life insurance last?

    Term life insurance lasts for a specific period of time, known as the policy term. The policy term can vary from 5 years to 30 years or more, depending on the policy and the policyholder's needs.

  4. What happens if I outlive my term life insurance policy?

    If the policyholder outlives the term of their term life insurance policy, the policy will expire and the coverage will end. The policyholder will not receive any payout or benefit from the policy.

  5. Can I renew my term life insurance policy?

    Some term life insurance policies allow policyholders to renew their policy at the end of the term. However, the premiums for a renewed policy may be higher due to the policyholder's age and any changes in their health condition.

  6. Can I convert my term life insurance policy to a permanent policy?

    Some term life insurance policies allow policyholders to convert their term policy to a permanent policy, such as whole life or universal life insurance. The policyholder can typically do this without having to undergo a medical examination. However, the premiums for a permanent policy are usually higher compared to term life insurance premiums due to the added features and benefits of a permanent policy.

Newsletter Updates

Enter your email address below to subscribe to our newsletter

3 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!

Join our mailing list to receive latest updates and newsletters!

You have successfully subscribed to our blog!

There was an error while trying to send your request. Please try again.

We Invest Smart will use the information you provide on this form to be in touch with you and to provide updates and marketing.