Life is unpredictable and full of uncertainties. You never know what might happen to you or your loved ones. That’s why it is vital to have a suitable term life insurance plan that can give economic security to your dear ones in case of your untimely demise.
Term life insurance is a life cover that provides a decent sum assured at a low premium for a fixed period. If you pass away during the policy term, your nominee will receive the assured sum as one-time cash or in instalments, depending on your chosen plan. Term insurance also offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act of 1961.
But how do you choose the best term insurance plan for yourself? There are many factors to consider, such as the coverage amount, the policy term, the premium payment mode, the cover options, the riders, the claim settlement ratio and the insurer’s customer service.
To make your decision easier, we have compared the ten cheapest term insurance plans with the minimum sum insured in India.
Best Term Life Insurance Plans
Some of the best life insurance term plan are as follows:
1. Bajaj Allianz Life eTouch
Bajaj Allianz Life eTouch is an online life insurance term plan from Bajaj Allianz Life, a joint venture between Bajaj Finserv and Allianz SE, one of the world’s leading insurers. The plan offers the following features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Minimum policy term: 10 years
- Maximum policy term: 40 years
- Minimum sum assured: Rs. 50 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Annual, half-yearly, quarterly or monthly
- Cover options: 4 options to choose from, such as Shield, Shield Plus, Shield Super, and Shield Supreme
- Claim settlement ratio: 98.02% for FY 2022-23
- Customer service: Toll-free number, email, SMS, chatbot, branch offices, etc.
2. LIC Tech Term Plan
This plan is offered by the Life Insurance Corporation of India, the country’s largest and oldest life insurer. The plan offers the following features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Minimum policy term: 10 years
- Maximum policy term: 40 years
- Minimum sum assured: Rs. 50 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Annual, half-yearly, quarterly, or monthly
- Cover options: Level sum assured or increasing sum assured
- Riders: None
- Claim settlement ratio: 97.79% for FY 2022-23
3. HDFC Life Click 2 Protect 3D Plus
HDFC Life, one of India’s leading private life insurers, sells this plan. The plan offers the following features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Minimum policy term: 5 years
- Maximum policy term: 40 years
- Minimum sum assured: Rs. 10 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Single, regular, or limited
- Cover options: 9 options to choose from, such as life option, 3D life option, extra life option, income option, income plus option, etc.
- Riders: 5 riders available, such as accidental death benefit rider, critical illness rider, income benefit on accidental disability rider, etc.
4. ICICI Prudential iProtect Smart
ICICI Prudential Life offers this plan with the following features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Minimum policy term: 5 years
- Maximum policy term: 99 years
- Minimum sum assured: Rs. 10 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Single, regular, or limited
- Cover options: 4 options to choose from, such as Life, Life Plus, life and health, and all in one
- Riders: 4 riders available, such as accidental death benefit rider, critical illness rider, waiver of premium on disability rider, etc.
- Claim settlement ratio: 97.84% for FY 2022-23
5. Max Life Online Term Plan Plus
This plan by Max Life offers the following features:
- Minimum entry age: 18 years
- Maximum entry age: 60 years
- Minimum policy term: 10 years
- Maximum policy term: 40 years
- Minimum sum assured: Rs. 25 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Annual, half-yearly, quarterly, or monthly
- Cover options: 3 options to choose from, such as basic life cover, basic life cover plus monthly income, and basic life cover plus increasing monthly income
- Riders: 2 riders available, such as accidental death benefit rider and waiver of premium plus rider
- Claim settlement ratio: 99.22% for FY 2022-23
6. Aegon Life iTerm Plan
Offered by Aegon Life, this plan offers the following features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Minimum policy term: 5 years
- Maximum policy term: 100 years
- Minimum sum assured: Rs. 25 lakhs
- Maximum sum assured: No limit
- Premium payment mode: Single, regular, or limited
- Cover options: 3 options to choose from, such as Life Protect, Dual Protect and life plus health protect
- Riders: None
- Claim settlement ratio: 98.01% for FY 2022-23
Some other plans in this list include SBI Life eShield, TATA AIA Life Sampoorna Raksha, PNB MetLife Mera Term Plan Plus, Canara HSBC OBC Life iSelect Star Term Plan and Aviva Life Shield Advantage Plan. When picking any of the above plans, always use the term insurance plan calculator.
Conclusion
Choosing the best term life insurance involves considering your needs and budget. Start by determining the coverage amount and term that suits your family’s financial security. Compare quotes from multiple insurers to find pocket-friendly premiums. Check the reputation and customer reviews of the insurance companies. Understand the policy terms and any additional features. Ultimately, choose a plan that aligns with your financial goals and provides peace of mind for your loved ones.