Term insurance is a type of life insurance that provides financial protection to the policyholder's family in the event of the policyholder's death. The policyholder pays a premium to the insurance company, and in return, the insurance company pays a death benefit to the policyholder's beneficiaries in the event of the policyholder's death during the term of the policy. Given this, you may be interested to know about the best term insurance policies. We will discuss these in some detail.
Why Term Insurance is Important?
Term insurance is important because it provides financial protection to the policyholder's family in the event of the policyholder's death. In India, where the majority of the population is underinsured or uninsured, term insurance can help bridge the protection gap and ensure that the policyholder's family is financially secure in the event of the policyholder's death.
However, the best term life insurance policies are those that are affordable and easy to understand. The premiums for term insurance are lower compared to other types of life insurance, making it an affordable option for individuals who are looking for financial protection. Additionally, term insurance policies are easy to understand, with no complicated features or investment options. This makes it an ideal choice for individuals who are looking for a simple and straightforward insurance product.
Best Term Insurance Plans in India
Here, we discuss the five most popular term insurance policies in India.
Max Life Online Term Plan Plus
The Max Life Online Term Plan Plus is a popular term insurance plan in India that offers comprehensive coverage at an affordable premium. The plan offers a choice of four death benefit options, including lump sum, monthly income, increasing monthly income, and lump sum plus monthly income. Additionally, the plan offers a choice of three payout options, including lump sum, monthly income, and increasing monthly income. The plan also offers an option to increase the coverage amount at key life events, such as a marriage or the birth of a child.
ICICI Pru iProtect Smart
The ICICI Pru iProtect Smart is another popular term insurance plan in India that offers comprehensive coverage at an affordable premium. The plan offers a choice of four death benefit options, including lump sum, monthly income, increasing monthly income, and lump sum plus monthly income. Additionally, the plan offers a choice of four payout options, including lump sum, monthly income, increasing monthly income, and lump sum plus monthly income. The plan also offers an option to increase the coverage amount at key life events, such as a marriage or the birth of a child.
HDFC Life Click 2 Protect 3D Plus
The HDFC Life Click 2 Protect 3D Plus is a comprehensive term insurance plan that offers coverage for death, disability, and disease. The plan offers a choice of nine death benefit options, including lump sum, monthly income, increasing monthly income, and lump sum plus monthly income. Additionally, the plan offers a choice of four payout options, including lump sum, monthly income, increasing monthly income, and lump sum plus monthly income. The plan also offers an option to increase the coverage amount at key life events, such as a marriage or the birth of a child.
SBI Life eShield
The SBI Life eShield is a popular term insurance plan in India that offers comprehensive coverage at an affordable premium. The plan offers a choice of two death benefit options, including lump sum and monthly income, to suit the policyholder's requirements. The policy can be purchased online, making the buying process quick and easy. The plan also offers a range of rider options, including accidental death benefit and critical illness cover, which can be added to the base policy to enhance coverage.
Tata AIA Life Sampoorna Raksha
The Tata AIA Life Sampoorna Raksha is a term insurance plan that offers comprehensive coverage at affordable premiums. The plan offers flexibility in premium payment options, including a single premium option. The plan also offers a choice of death benefit options, including lump sum and monthly income, to suit the policyholder's requirements. The plan also offers a range of rider options, including accidental death benefit and critical illness cover, which can be added to the base policy to enhance coverage.
Bharti AXA Life Flexi Term Plan
The Bharti AXA Life Flexi Term Plan is a term insurance plan that offers comprehensive coverage at affordable premiums. The plan offers flexibility in premium payment options, including a single premium option. The plan also offers a choice of death benefit options, including lump sum and monthly income, to suit the policyholder's requirements. The plan also offers a range of rider options, including accidental death benefit and critical illness cover, which can be added to the base policy to enhance coverage.
Aegon Life iTerm Insurance Plan
The Aegon Life iTerm Insurance Plan is a term insurance plan that offers comprehensive coverage at affordable premiums. The plan offers flexibility in premium payment options, including a single premium option. The plan also offers a choice of death benefit options, including lump sum and monthly income, to suit the policyholder's requirements. The plan also offers a range of rider options, including accidental death benefit and critical illness cover, which can be added to the base policy to enhance coverage.
Factors to Consider Before Choosing the Best Term Insurance Plan in India
Choosing the best term insurance policies in India can be a challenging task. Here are some factors to consider before selecting a term insurance plan:
Risk Coverage: The primary advantage of an insurance policy is risk coverage. The insurance company provides monetary compensation to the family of the deceased insured to compensate against the premium paid by the insured. This enables covering the risk of the family.
Varied Plans: Insurance companies offer different plans to suit the needs of the insured. A higher premium results in higher benefits. Hence, it is essential to compare different plans and choose the one that best suits your requirements.
Health Benefits: Insurance policies cover expenses of hospitalisation and treatment of critical illness. It is vital to check the coverage offered by the policy before selecting it.
Inculcates Savings Culture: Few insurance policies come with a savings plan. This enables subscribers to accumulate wealth while inculcating a savings culture for the future.
Additional Income: Few insurance policies provide guaranteed income. This means that in case of an uncertain event, the insured or the nominee of the insurance policy is paid the sum assured at every frequency (typically monthly or quarterly). This can provide a much-needed financial cushion to the family in the absence of the breadwinner.
Availing Loan: Some insurance policies provide you with a choice of taking a loan against the policy. However, this facility is available only on selected policies and may come with certain terms and conditions.
Tax Benefit: Availing an insurance policy also enables an individual to get tax benefits under section 80C of the Income Tax Act, 1961. This means that the premium paid towards the insurance policy can be claimed as a deduction from the total taxable income.
Conclusion
Choosing the right term insurance plan is an important decision that requires careful consideration of the policyholder's needs and requirements. The above-listed term insurance plans offer a range of coverage options, premium payment options, and rider options that can be tailored to suit the policyholder's requirements. It is crucial to evaluate various term insurance plans based on their features, premiums, and benefits before making a final decision.
It is important to note that while choosing a term insurance plan, the premium amount should not be the only factor considered. The policyholder must also consider the financial stability and claim settlement ratio of the insurance company. It is recommended to choose a policy from an insurance company with a high claim settlement ratio and a good reputation in the market.