Top 10 Best Term Insurance Plans in India for 2022
Mr. Krishnan, 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. Krishnan 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. Krishnan 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. Krishnan’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 10 Best Term Insurance Plans in India 2022
Here we listed out the 10 best term insurance plans in India from top term insurance companies for you to choose and buy the best term plan for your family in the year 2021 as mentioned below:-
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- LIC Tech Term Plan
- HDFC Click2Protect 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 e-Term Plan
Best Term Plans in India
Here is the list of the 10 best term plans in India from some of the top-rated term insurance companies here, along with their salient features, for you to choose and buy in the year 2022-23.
| 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 | 99.35% |
| 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% |
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Let’s deep dive to know more about these term insurance plans in detail:-
1. LIC Tech Term Plan
It is a traditional term plan, providing financial support to the insured’s family in case of his or her untimely demise. This term plan comes with several essential features such as 2 death benefit options- Level Sum Assured and Increasing Sum Assured, policy term between 10-40 years, and maturity age till 80 years.
2. HDFC Click2Protect Plus
This comprehensive term plan offers 3 cover options – Life and CI Rebalance, Life Protect, and Income Plus, from which the policyholder can select as per their requirements. It comes with an option that auto balances death and critical illness benefits with the increase in age and offers whole life cover.
3. Max Life Smart Secure Plus Plan
The Smart Secure Plus Plan by Max Life Insurance gives you the flexibility to customize coverage protection at a reasonable price by offering 2 death benefit covers to choose from. It also provides different payout options to suit the insured’s requirement, which comprises a lump-sum payment, monthly income payment, and partly in a lump sum and partly as monthly income. In addition, it provides terminal illness coverage as well as returns all the premiums paid on policy maturity.
4. SBI Life-eShield
The policy offers four plan options, and you can pick the best one among them, depending on your requirements. It is the best term life insurance policy for your family, and you can apply for the same online without the tedious paperwork. Some of the benefits covered by this policy include renewability, 20 lakhs minimum sum assured, surrendering facility, free-look period, and so on.
5. Tata AIA Maha Raksha Supreme
Maha Raksha Supreme by Tata AIA Life Insurance comes with an in-built accelerator that provides up to 50% sum assured payout on diagnosis of any terminal illness. This plan also offers flexibility to choose from various premium paying terms and riders.
6. ICICI Prudential iProtect Smart Term Plan
This plan is available in 3 options, and you can select the right one after doing complete research. Some of the benefits offered by the policy include death coverage, terminal illness coverage, premium waiver benefit, accidental death benefit, tax benefits, surrender benefits, etc.
7. Bajaj Allianz Smart Protect Goal Term Plan
This plan offers death benefits at affordable premiums and maturity benefits by returning the premiums paid at the policy’s maturity. It also provides financial assistance if diagnosed with any listed critical illnesses in the plan.
8. Canara HSBC OBC iSelect Star Term Plan
This term plan comes with a whole life cover option and offers you the flexibility to enhance your life cover based on your changing lifestyle. It also comes with a return of premium option, spouse coverage, and in-built protection. In addition, it offers multiple death benefit payout option that includes lump sum, monthly income or lump sum plus monthly income.
9. PNB MetLife Mera Term Plan Plus
This term plan offers comprehensive protection at an affordable cost. Moreover, it provides flexibility to opt for protection against terminal illness, critical illness, disability, and death along with various life cover options such as spouse coverage and whole life cover.
10. Kotak e-Term Plan
It is a pure protection plan, and any individual between 18 to 50 years (for limited pay-pay till 60 years) or 65 years (except for limited pay-pay till 60 years) can buy this term plan. The minimum sum assured under this plan is Rs 25 lakhs. The Kotak e-Term plan offers different premium payment modes, including monthly, yearly, half-yearly, and quarterly. In addition, it comes with 3 different pay-put options – immediate payout, level recurring payout, and increasing recurring payout. It also gives the option to add riders for additional protection – Kotak Permanent Disability Benefit Rider and Kotak Critical Illness Plus Benefit Rider.
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.