Term insurance is a crucial financial tool that provides a safety net for your loved ones in the unfortunate event of your demise. It ensures that your family can maintain their lifestyle and meet financial obligations such as loans, mortgages, and daily expenses. Choosing the right Term Insurance Plans in India is essential to maximize the benefits and coverage according to your financial situation and goals.
In this comprehensive guide, we will explore the best term insurance plans in India for 2024. We will delve into the key features, benefits, and eligibility criteria of each plan, and provide a detailed comparison to help you make an informed decision. We will also address common questions such as which company is best for term insurance in India, whether LIC is good for term insurance, and what a 5-year term policy entails.
Why Choose Term Insurance?
Before we dive into the specifics of the best term insurance plans, it’s important to understand why term insurance is a valuable investment:
- Financial Protection: Provides a financial cushion for your family in your absence.
- Debt Clearance: Helps in paying off outstanding loans and mortgages.
- Affordability: Term insurance plans are generally more affordable than other life insurance products.
- Flexibility: Offers various payout options, riders, and customization according to your needs.
Best Term Insurance Plans in India 2024
Here are the top 5 term insurance plans in India for 2024:
- HDFC Click 2 Protect Plus
- Max Life Smart Secure Plus
- ICICI Pru iProtect Smart Term Plan
- SBI Life – eShield Next
- LIC Tech Term Plan
HDFC Click 2 Protect Plus
Overview
The HDFC Click 2 Protect Plus is one of the most comprehensive term insurance plans available. It offers a wide range of benefits and covers death, disability, and critical illnesses. The plan comes in three variants:
- Life and Critical Illness Rebalance
- Life Protect
- Income Plus
Key Features
- Life and Critical Illness Rebalance: Provides a balance between death and critical illness benefits. The sum assured is divided between life cover (80%) and critical illness cover (20%).
- Life Protect Plan: Offers a lump sum benefit to the nominee on the death of the life assured.
- Income Plus: Provides regular monthly income after the policyholder attains the age of 60 years.
Eligibility Criteria
| Plan Type | Minimum Entry Age | Maximum Entry Age | Maturity Age |
|---|---|---|---|
| Life and Critical Illness Rebalance | 18 years | 65 years | 75 years |
| Life Protect | 18 years | 65 years | 85 years (Fixed Term) |
| Income Plus | 30 years | 50 years | 85 years (Fixed Term) |
Pros and Cons
Pros:
- Covers COVID-19 claims.
- Lower premium rates for women policyholders and non-smokers.
- Flexibility to reduce premium payment terms.
Cons:
- No return on coverage if the policy tenure ends unless one opts for Return of Premium (RoP) plan.
- Expensive renewals.
Max Life Smart Secure Plus
Overview
The Max Life Smart Secure Plus Plan is unique for offering two death benefits and inbuilt cover for terminal illness at zero cost. It also provides several additional benefits such as RoP feature, premium breaks, and additional payout on accidental death.
Key Features
- Maximum Coverage: Till 85 years.
- Terminal Illness Cover: 100% of the guaranteed death benefit up to INR 1 crore on the diagnosis of a terminal illness.
- RoP: Total premium paid is returned if the policyholder survives post-maturity.
- Premium Break: Allows the policyholder to take a break from premium payments.
Eligibility Criteria
| Plan Type | Minimum Entry Age | Maximum Entry Age | Maximum Maturity Age |
|---|---|---|---|
| Base Plan | 18 years | 65 years | 85 years |
| Accelerated Critical Illness | 18 years | 65 years | 75 years |
| Accident Cover Option | 18 years | 65 years | 85 years |
Pros and Cons
Pros:
- Discounts on higher sum assured amounts.
- Lower premium rates for non-smokers.
- Quick claim settlement.
Cons:
- Whole life cover not available up to 100 years.
ICICI Pru iProtect Smart Term Plan
Overview
The ICICI Pru iProtect Smart Term Plan is popular for its affordability and comprehensive coverage. It offers different variants such as Life, Life Plus, Life and Health, and All-in-One, catering to various needs.
Key Features
- Life Cover: Provides death benefit and terminal illness cover.
- Life Plus: Includes accidental death benefit.
- Life and Health: Covers critical illnesses.
- All-in-One: Combines all benefits.
Eligibility Criteria
| Minimum Entry Age | Maximum Entry Age | Maximum Maturity Age |
|---|---|---|
| 18 years | 65 years | 99 years |
Pros and Cons
Pros:
- Inbuilt terminal illness benefit.
- Discounts for women policyholders.
- Long-term coverage up to 99 years.
Cons:
- Covers only specific illnesses under critical illness benefit.
SBI Life – eShield Next
Overview
The SBI Life eShield Next is a cost-effective term plan offering whole life coverage up to 100 years. It has three variants: Level Cover, Increasing Cover, and Level Cover with Future Proofing Benefit.
Key Features
- Level Cover: Sum assured remains constant throughout the policy term.
- Increasing Cover: Sum assured increases by 10% every five years.
- Future Proofing Benefit: Allows increase in sum assured at significant life stages.
Eligibility Criteria
| Minimum Entry Age | Maximum Entry Age | Maximum Maturity Age |
|---|---|---|
| 18 years | 60 years | 100 years |
Pros and Cons
Pros:
- Life coverage up to 100 years.
- Inbuilt terminal illness benefit.
- Option to cover spouse under the same plan.
Cons:
- No maturity and surrender benefits.
LIC Tech Term Plan
Overview
The LIC Tech Term Plan is a non-participating, pure risk premium plan. It provides financial protection to the insured’s family in case of death during the policy term.
Key Features
- Flexible Premium Payment Options: Regular, limited, and single premium payment options.
- High Sum Assured Rebate: Discounts on higher sum assured amounts.
- Online Purchase: Exclusively available online, offering convenience and lower premium rates.
Eligibility Criteria
| Minimum Entry Age | Maximum Entry Age | Maximum Maturity Age |
|---|---|---|
| 18 years | 65 years | 80 years |
Pros and Cons
Pros:
- Brand trust of LIC.
- High claim settlement ratio.
- Affordable premiums.
Cons:
- No maturity benefits.
Comparing the Best Term Insurance Plans
To help you choose the best term insurance plan, here’s a comparative table highlighting the key features of each plan:
| Insurance Plan | Minimum Entry Age | Maximum Entry Age | Maximum Maturity Age | Sum Assured | Claim Settlement Ratio | Premium Payment Options |
|---|---|---|---|---|---|---|
| HDFC Click 2 Protect Plus | 18 years | 65 years | 85 years | INR 20 lakh | 98.66% | Regular, Limited, Single |
| Max Life Smart Secure Plus | 18 years | 65 years | 85 years | INR 20 lakh | 99.34% | Regular, Limited, Single |
| ICICI Pru iProtect Smart | 18 years | 65 years | 99 years | INR 50 lakh | 97.82% | Regular, Limited, Single |
| SBI Life – eShield Next | 18 years | 60 years | 100 years | INR 50 lakh | 97.05% | Regular, Limited, Single |
| LIC Tech Term Plan | 18 years | 65 years | 80 years | INR 50 lakh | 98.26% | Regular, Limited, Single |
FAQs on Term Insurance in India
Which Company is Best for Term Insurance in India?
Choosing the best company for term insurance depends on various factors such as claim settlement ratio, customer service, premium rates, and the specific benefits offered by the plans. Based on these factors, HDFC Life, Max Life, ICICI Prudential, SBI Life, and LIC are among the top companies offering reliable term insurance plans in India.
Which Policy is Best in Term?
The best term insurance policy varies based on individual needs. For comprehensive coverage and benefits, HDFC Click 2 Protect Plus and Max Life Smart Secure Plus are excellent choices. If affordability is a key factor, ICICI Pru iProtect Smart Term Plan and SBI Life – eShield Next are highly recommended.
Is LIC Good for Term Insurance?
LIC is a reputable and trusted insurer in India with a high claim settlement ratio. The LIC Tech Term Plan is a popular choice for its affordability and extensive coverage options. It’s a good option for those seeking the reliability and trust associated with LIC.
What is a 5-Year Term Policy?
A 5-year term policy is a short-term insurance plan that provides coverage for five years. It’s suitable for individuals seeking temporary coverage for specific financial obligations.
However, for long-term financial security, longer tenure plans are recommended.
Best Term Insurance Plan for 1 Crore
For a sum assured of INR 1 crore, the HDFC Click 2 Protect Plus, Max Life Smart Secure Plus, and ICICI Pru iProtect Smart Term Plan are top choices. These plans offer comprehensive coverage, affordable premiums, and additional benefits.
Term Insurance Calculator
Using a term insurance calculator helps estimate the premium based on age, sum assured, policy tenure, and other factors. Most insurers, including HDFC Life, Max Life, and ICICI Prudential, provide online calculators to assist in choosing the right plan.
Best Term Insurance Plan with Money Back
Term plans with money-back options, such as the Return of Premium (RoP) feature, return the premiums paid if the policyholder survives the policy term. Max Life Smart Secure Plus and HDFC Click 2 Protect Plus offer RoP options.
HDFC Term Insurance
HDFC Click 2 Protect Plus is one of the best term insurance plans offered by HDFC Life. It provides comprehensive coverage, multiple variants, and flexibility in premium payment options.
Max Life Term Insurance
Max Life Smart Secure Plus is a top-rated plan with unique features such as dual death benefits, terminal illness cover, and premium breaks. It’s ideal for those seeking extensive coverage and additional benefits.
SBI Term Insurance Plan
SBI Life – eShield Next offers cost-effective coverage with whole life options. It’s suitable for individuals looking for affordable premiums and flexibility in coverage.
Conclusion
Choosing the right term insurance plan is a crucial decision to ensure the financial security of your loved ones. The best term insurance plans in India for 2024 offer a range of benefits and coverage options to suit different needs. Whether you prioritize comprehensive coverage, affordability, or additional benefits, there is a plan that fits your requirements. Use the information and comparison provided in this guide to make an informed decision and secure your family’s future.
