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,