Buying a term insurance plan is as important as fastening your seat belt while driving. There’s not always going to be an accident but if you unfortunately encounter one, your seat belt is going to save your life, right? That’s what a term plan does – saves your loved ones from unpleasant financial hassles when you’re not around. But then, how to know which is the best term plan in India? Let’s find out, but first allows us to give you the basic layout of a term plan;
What is a Term Plan?
A term plan or a term insurance plan is a pure life insurance plan which is non-linked and non-participating. This insurance policy gets its name of ‘term plan’ due to its basic feature, i.e. it provides coverage till the policy term. For example, if you’ve taken up a term plan for a period of 30 years, you will be covered till the expiry of this policy period only. There is no survival benefit attached to a basic term plan. However, nowadays many insurance companies offer term plans where you can get your premiums back if you survive the policy term, like the Max Life Smart Secure Plus Plan. Also, you can further the benefits of your term plan by adding various riders like a critical illness rider and a disability rider etc.
Which is the Best Term Plan in India?
The following are some of the best term insurance plans available in India:
|Best Term Plan in India||Claim Settlement Ratio||Entry Age||Maturity Age|
|Max Life Smart Secure Plus Plan||99.51%||18-60 years||85 years|
|Tata AIA SRS Vitality Plan||98.53%||18-60 years||85 years|
|Bajaj Allianz eTouch Online Plan||99.02%||18-55 years||99 years|
|ICICI Pru iProtect Smart Plan||97.82%||18-65 years||99 years|
|HDFC Life Click 2 Protect Super Plan||98.66%||18-65 years||85 years|
Now that we have an overview of the top 5 term plans in India, time to dwell deep and know about these insurance plans in detail;
Features of Top Term Plans in India
Max Life Smart Secure Plus Plan
- Unlimited death benefit cover
- In-built terminal illness coverage up to Rs 1 Cr
- Return of Premium option
- Can add spouse in the plan as well
- Accident cover up to Rs 1 Cr
- Option of Accelerated Critical Illness Cover against 64 illnesses (this plan provides coverage against maximum number of illnesses in India)
- Option to increase the sum assured any time during the policy term (up to 100% of the base sum insured)
- Option to not pay premium twice during the entire policy term
Tata AIA SRS Vitality Plan
- Minimum policy term must be 10 years
- Max. sum assured Rs 2 Cr
- Free health check-up
- Critical Illness rider – 39 illnesses covered
- Premium break offered
Bajaj Allianz eTouch Online Plan
- Comes with 4 variants
- Policy Term: 10 – 40 years
- Minimum Premium: Rs 5,000 per annum
- No premium break allowed
ICICI Pru iProtect Smart Plan
- Accidental death coverage of up to Rs 2 Cr
- Critical illness rider offers coverage against 34 illnesses
- Terminal illness includes AIDS
- Up to 18% lower premium rates for women
HDFC Life Click 2 Protect Super Plan
- No limit on death cover (except if entry age is more than 65 years)
- Maximum policy term is 40 years
- Minimum policy term is 10 years
- Critical Illness Plus rider covers against 19 illnesses
Out of all the top 5 term plans listed here, Max Life Smart Secure Plus tops the list in more than one ways. Where the company selling this plan (i.e. Max Life Insurance) has a solid and the highest 99.51% claim settlement ratio in India, it also gives various other flexible options, like no limit on base death benefit cover, option to add spouse in the same plan and coverage against 64 critical illnesses, which is the highest among all the term insurance policies in India.
However, if you’re someone who is beyond the age of 85 years, you can go for the other options listed above. That said, it is always best to get yourself covered with a term plan as soon as possible – you get high coverage and the premiums are low.
Here is the list of 5 best term plans in India:
Max Life Smart Secure Plus, HDFC Click 2 Protect, ICICI Pru iProtect Smart Plan, Bajaj Allianz Life eTouch and Tata AIA Sampoorna Raksha Supreme Plan.
Currently, Max Life Insurance carries the highest claims paid ratio in India – 99.51%.
You can avail riders like a critical illness rider, a permanent disability rider and a waiver of premium rider, with your term plan on paying an additional premium. These are the most common riders offered with a term insurance plan in India.