Top 10 Best Performing Term Insurance Plans in India

Example: A healthy, non-smoking 30-year-old can secure a term insurance policy of Rs. 1 crore for as little as Rs. 725 per month. This plan guarantees financial stability for the family over the policy term, typically 20 years in this case. In the event of the policyholder's demise, the family can manage daily expenses, meet future goals, and avoid financial strain, even in the absence of the primary breadwinner. 

Benefits of Term Insurance Plan

Mentioned below are some benefits of a term insurance plan:  

1. Whole life coverage 

1. High life coverage at a low premium 

1. Financial protection of family 

1. Multiple death benefit payout options 

1. Additional coverage 

1. Multiple payout option 

1. Return of payment option 

1. Tax saving option 

Why Should You Buy Term Insurance Plan?

A term insurance plan is an essential investment for safeguarding your family's future, offering comprehensive benefits while being cost-effective and flexible. Mentioned below is the  

1. Financial Security for Your Family: Term insurance ensures your family's financial stability in your absence. As a primary breadwinner, it becomes your responsibility to provide for your spouse, parents, and children. A term plan offers a safety net, helping your loved ones manage daily expenses and future goals. 

2. Long-term Coverage: Many term plans offer coverage extending up to 99 or 100 years, allowing you to leave a financial legacy for your family. This flexibility in coverage duration ensures long-term security at an affordable premium. 

3. Cost-effective Life Cover: For instance, a Rs. 1 crore term insurance policy is available for as low as Rs. 485 per month, making it one of the most affordable ways to secure substantial life coverage. This amount can help settle financial liabilities and meet ongoing obligations. 

4. Income Replacement: If your family relies heavily on your income, term plans like the ABSLI Income Suraksha Plan can provide a steady income replacement, ensuring their financial independence even in your absence. 

5. Protection Against Critical Illness: By adding a critical illness rider, you can secure financial assistance for treating severe medical conditions without worrying about hospital expenses. These benefits cover diseases specified in the plan. 

6. Disability Coverage: Accidents leading to temporary or permanent disability can disrupt income flow. With disability riders, term plans provide financial support during such scenarios, helping your family maintain stability. 

7. Survival Benefits: Pure term plans do not offer maturity benefits. However, a Term Return of Premium (TROP) plan refunds the premiums paid upon policy maturity, providing additional financial security. 

8. Flexible Premium Payment Options: Term insurance plans allow you to choose between regular premium payments or limited pay options, catering to your financial preferences. 

9. Tax Benefits: Premiums paid for term insurance qualify for deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. Additionally, the death benefit is tax-exempt under Section 10(10D). 

Who Should Consider Buying a Term Insurance Plan?

Term insurance is a vital financial tool for anyone with financial dependents. This includes parents, couples, self-employed individuals, business owners, young professionals, SIP investors, homemakers, and even retired individuals. With affordable premiums compared to other life insurance types, term plans not only secure the financial future of your loved ones but also offer tax benefits as per prevailing laws in India. 

Types and Benefits of Term Insurance

Steps to Purchase a Term Insurance Plan in India

Step 1: Assess Financial Needs 

Evaluate your family’s financial requirements to determine the right coverage, policy term, and features. 

Step 2: Calculate Premiums 

Use premium calculators to identify the applicable premium and select a plan that aligns with your needs. 

Step 3: Fill Out the Proposal Form 

Complete the form with accurate details to avoid issues during policy issuance or claim processing. 

Step 4: Sign the Agreement 

Submit the form, make the first premium payment, and review the agreement terms before finalizing the policy. 

Step 5: Assign a Nominee 

Nominate a beneficiary who will receive the policy’s payout in your absence. 

This structured approach ensures that you select a suitable term insurance plan that aligns with your financial goals and secures your loved ones' future. 

Factors to Consider Before Selecting a Term Insurance Plan

When selecting a term insurance plan, it's vital to contemplate various factors to ensure it meets your requirements. Here are key points to keep in mind:

1. Varied Plans: Insurance companies offer a range of plans to match your needs, with higher premiums typically leading to greater benefits.

1. Risk Coverage: The core benefit of an insurance policy is the financial protection it offers. In the event of the policyholder's death, the insurer provides monetary compensation to the family, covering the risk faced by the insured's dependents.

1. Health Benefits: Some insurance policies cover hospitalisation expenses and treatment for critical illnesses, providing crucial health benefits.

1. Additional Income: Certain insurance policies guarantee income payouts, with the insured or their nominee receiving the sum assured regularly (monthly or quarterly) during uncertain events.

1. Savings Culture: Some policies include a savings component, allowing policyholders to accumulate wealth while fostering a savings habit for the future.

1. Loan Availability: Select insurance policies offer the option to secure a loan against the policy, providing financial flexibility.

1. Tax Benefit: Purchasing an insurance policy can provide tax benefits under Section 80C of the Income Tax Act, 1961.

Key Features of Term Insurance Plans

Term life insurance stands out as a popular choice for its affordability and flexibility. Below is a breakdown of its essential features: 

These features highlight why term insurance is a reliable and practical solution for comprehensive financial planning. 

Types of Term Insurance Plans in India

Choosing the best term insurance plan depends on aligning your specific needs with the available options. Below is a list of various term insurance plans along with their unique benefits: 

Each of these plans caters to unique needs, making it easier for individuals to select one that aligns with their lifestyle and financial goals. 

How Does a Term Plan Secure Your Family's Future?

A term insurance plan can safeguard your family's financial stability in the following ways: 

These features ensure that your family remains financially protected, reducing potential burdens during challenging times. 

Top 10 Term Insurance Plans in India

ICICI Prudential iProtect Smart

1. Among the best term insurance plans in India, available for online purchase in a simple and hassle-free manner.

1. Provides comprehensive coverage for terminal illness, death, and disability.

1. Offers special premium rates for non-tobacco users.

1.  Flexible premium payment options: single pay, regular pay, or limited pay.

1. Life Assured can choose from three benefit payout options: lump sum, monthly income, or a combination of both.

HDFC Life Click 2 Protect Super

1. Offers financial protection to the family of the life assured in case of any eventualities.

1. Return of Premium option allows you to get back all premiums paid upon maturity.

1. Three different plan options are available, allowing customisation based on individual needs.

1.  Includes Waiver of Premium Benefits for Critical Illness and Total and Permanent Disability.

LIC New Tech Term Plan

1. LIC e-Term insurance is a non-participating, pure life insurance plan.

1. Choose between two benefit options: Level Sum Assured or Increasing Sum Assured.

1. Flexible premium payment options: Regular, Limited, or Single premium.

1. Benefit payout can be received in instalments.

1. The plan offers special rates for women and non-smokers.

1.  Enhance your coverage by adding the Accidental Benefit Rider to your base plan.

Max Life Smart Total Elite Protection Plan

1. Flexible premium payment options.

1. Accelerated benefits on the diagnosis of critical illness with the Accelerated Critical Illness Benefits.

1. Special Exit Value Benefits allow you to receive all premiums back upon early exit.

1. Option to delay premiums for up to 12 months without any late fees or interest.

Kotak e-Term Plan

1. Low-cost insurance policy offering high coverage at an affordable price.

1.  Coverage can be enhanced at special life events through the Step-Up Option.

1. Three payout options and three plan options to choose from.

1. Includes rider benefits for accidental death, total permanent disability, and critical illness.

SBI Life eShield Next

1. Term insurance plans with premium payment options like single pay, regular pay, or limited pay.

1. Offers comprehensive coverage at an affordable premium rate.

1. Three different coverage options to choose from.

1. Customisable plan with Death Benefit Payment Mode and Better Half Benefit Option.

Bajaj Allianz eTouch Online Term Plan

1. One of the best term insurance plans in India, available for online purchase in a hassle-free manner.

1. Provides a guaranteed annual payout to the family for 15 years in case of the insured's demise.

1. Offers two different payout options.
2. The maximum maturity age of the policy is 70 years.

Bandhan Life iTerm Prime

1. Provides life cover with a lump sum payout upon the insured's demise.

1. Option to receive all premiums back if life coverage is no longer needed through the special exit feature.

1. Flexible premium payment modes.

1. Add-ons or riders for Critical Illness or Accidental Death to enhance policy coverage.

1. Tax benefits on premiums paid and payouts received, as per the prevailing laws of the Income Tax Act, 1961.

Aditya Birla Sun Life Insurance Salaried Term Plan

1. Choose from four different plan options tailored to your needs.

1. Select the payout option that best fits your family's requirements.

1. Enjoy in-built terminal illness coverage, with the option to enhance protection through additional riders.

1. Opt for the Return of Premium feature to receive all premiums paid back at maturity.

TATA AIA SRS Promise

1. Choose from four different plan options.

1. Receive 50% of the base sum assured as an accelerated benefit in case of terminal illness diagnosis.

1. Includes FlexiPay and Family Plan benefits.

1. In-built waiver of premium upon terminal illness diagnosis.