Life is uncertain, and securing your family’s financial future is one of your most responsible decisions. Term insurance is a simple and effective way to provide a safety net for your loved ones in case of unforeseen circumstances. In this article, we’ll explore the top 10 term insurance plans in India based on benefits, premium costs, riders, claim settlement ratio (CSR), and additional features.
What is Term Insurance?
Term insurance is a type of life insurance policy that provides coverage for a specific period (term) and pays a death benefit to the nominee if the policyholder passes away during this term. Unlike traditional life insurance policies, term plans do not offer maturity benefits, making them more affordable and straightforward.
Benefits of Term Insurance
– Financial Security: Provides monetary protection to your dependents.
– High Coverage at Low Premiums: High coverage at minimal premium cost.
– Tax Benefits: Section 80C provides the tax benefit for premiums. Section 10(10D) of the Income Tax Act makes the payment tax-free.
– Customizable Riders: Riders such as critical illness, accidental death, and disability benefits
– Flexibility: Option between lump sum payout, monthly income, or a mix of both
Things to Consider When Choosing a Term Plan
– Claim Settlement Ratio (CSR): The higher the CSR, the more reliable the company is in settling claims.
– Premium Costs: Compare premiums for the same coverage amount.
– Coverage Amount: Take adequate coverage based on your financial needs.
– Riders: Additional benefits include critical illness, accidental death, or income replacement.
– Flexibility: Plans that provide payout options such as lump sum, staggered, or a mix.
Comparison of Key Features
- HDFC Life Click 2 Protect: Best for comprehensive riders.
- ICICI Prudential iProtect: Best for critical illness cover.
- Max Life Smart Secure Plus: Best for high CSR and illness coverage.
- Tata AIA Sampoorna Raksha Supreme: Best for return of premium.
- SBI Life eShield Next: Best for increasing cover benefit.
Top 10 Term Insurance Plans in India (2024-2025)
Here’s a detailed comparison of the top-term insurance plans in India:
| Plan Name | Insurer | Entry Age | Coverage | Premium (₹) | Claim Settlement Ratio (CSR) | Key Features |
|---|---|---|---|---|---|---|
| HDFC Life Click 2 Protect | HDFC Life | 18-65 years | ₹25 lakh – No Limit | Starts at ₹400/month | 98.66% | Comprehensive coverage, top riders |
| ICICI Prudential iProtect | ICICI Prudential | 18-65 years | ₹20 lakh – No Limit | Starts at ₹450/month | 97.82% | Critical illness cover, flexible payouts |
| Max Life Smart Secure Plus | Max Life Insurance | 18-65 years | ₹25 lakh – ₹1 crore+ | Starts at ₹390/month | 99.34% | Covers 64 critical illnesses |
| Tata AIA Life Sampoorna Raksha Supreme | Tata AIA | 18-70 years | ₹50 lakh – No Limit | Starts at ₹470/month | 98.53% | Guaranteed return of premium option |
| SBI Life eShield Next | SBI Life Insurance | 18-65 years | ₹20 lakh – ₹1 crore+ | Starts at ₹420/month | 97.60% | Rising cover benefit for inflation |
| Aditya Birla Sun Life Shield | ABSLI | 18-65 years | ₹30 lakh – No Limit | Starts at ₹440/month | 98.02% | Tailored plans for smokers, women |
| PNB MetLife Mera Term Plan | PNB MetLife | 18-65 years | ₹25 lakh – ₹2 crore | Starts at ₹415/month | 98.30% | Multiple payout options |
| Bajaj Allianz Smart Protect | Bajaj Allianz Life | 18-65 years | ₹20 lakh – ₹1 crore+ | Starts at ₹400/month | 98.48% | Enhanced coverage for non-smokers |
| Kotak Life e-Term Plan | Kotak Mahindra Life | 18-65 years | ₹25 lakh – ₹1 crore+ | Starts at ₹430/month | 97.75% | Critical illness and waiver of premium |
| Reliance Nippon Digi Term | Reliance Nippon Life | 18-60 years | ₹25 lakh – ₹1 crore+ | Starts at ₹390/month | 97.63% | Online discounts, easy application |
Top 10 Term Insurance Plans in India (2024-2025): Detailed Overview
To assist you with making an informed decision, here is a detailed breakdown of the top-term insurance plans available in India. Every plan is analyzed based on features, benefits, and what makes it stand out.
HDFC Life Click 2 Protect
Insurer: HDFC Life
Entry Age: 18-65 years
Coverage: ₹25 lakh to unlimited
Premium: Starts at ₹400/month
Claim Settlement Ratio (CSR): 98.66%
Key Features:
– It offers comprehensive coverage options, such as life coverage, accidental death, and critical illness.
– Flexible payout options: Sum assured, staggered monthly payouts, or a combination.
– It offers an add-on premium waiver in case of critical illness.
– Online application that is instantly approved for customers who qualify.
ICICI Prudential iProtect Smart
Insurer: ICICI Prudential
Entry Age: 18-65 years
Coverage: ₹20 lakh to unlimited
Premium: ₹450/month, starting at
Claim Settlement Ratio (CSR): 97.82%
Key Features:
– It covers critical illness, which includes 34 illnesses like cancer and heart disease.
– Flexible payout structure with fixed monthly income for dependents.
– Accidental death and disability riders are available.
– Available both online and offline.
Max Life Smart Secure Plus Plan
Company: Max Life Insurance
Age at Entry: 18-65 years
Coverage: ₹25 lakh to ₹1 crore+
Premium: ₹390/month
Claim Settlement Ratio (CSR): 99.34%
Key Features:
– Covers 64 critical illnesses. The benefit is one of the best in the industry.
– If a policyholder survives the term, the ROP is applicable.
– Lump-sum, monthly income, and increasing income options exist.
– High CSR is needed to ensure claims are processed on time.
Tata AIA Life Sampoorna Raksha Supreme
Company: Insurer Tata AIA Life Insurance Minimum A
Age entry: 18 years
Maximum Age Entry: 70 years
Coverage Available: ₹50 lakhs to ₹unlimited
Premium: Begins with ₹470/ month
Claim Settlement Ratio: 98.53%
Key Features:
– This also provides the exclusive feature of high return if there is no claim during the policy term.
– Available in riders with critical illness, accidental death, and disability.
– Single pay and limited pay options are available with flexible premium payment terms.
– Smokers and non-smokers have different plans tailored accordingly.
SBI Life eShield Next
Insurer: SBI Life Insurance
Age at Entry: 18-65 years
Cover: ₹20 lakh to ₹1 crore+
Premium: ₹420/month starting
CSR: 97.60%
Key Features:
– Rising Cover Benefit is the cover increase every year to combat inflation.
– Comprehensive riders like accidental death and total disability.
– The best premium for women and non-smokers.
– Provides flexibility in premium payment options.
Aditya Birla Sun Life Shield Plan
Insurer: Aditya Birla Sun Life Insurance
Age at Entry: 18-65 years
Cover: ₹30 lakh to unlimited
Premium: ₹440/month
Claim Settlement Ratio (CSR): 98.02%
Key Features:
– Female and smoker-specific plans.
– Options for payout include staggered income for dependents.
– Critical illness rider is available for 36 illnesses.
– Increased online discounts for direct purchases.
PNB MetLife Mera Term Plan
Insurer: PNB MetLife
Entry Age: 18-65 years
Coverage: ₹25 lakh to ₹2 crore
Premium: Starting at ₹415/month
Claim Settlement Ratio (CSR): 98.30%
Key Features:
– Provides various payout options, including lump sum, monthly income, and hybrid payouts.
– Child education rider offers benefits for your child’s future.
– Affordable premiums with additional discounts for women.
– Easy online application process.
Bajaj Allianz Smart Protect Goal
Insurer: Bajaj Allianz Life Insurance
Entry Age: 18-65 years
Coverage: ₹20 lakh to ₹1 crore+
Premium: ₹400/month onwards
Claim Settlement Ratio (CSR): 98.48%
Key Features:
– Increased coverage options for non-smokers.
– Critical illness and accidental disability riders are available.
– Offers family income benefits to provide regular income to dependents.
– Online application with minimal documentation.
Kotak Life e-Term Plan
Insurer: Kotak Mahindra Life Insurance
Entry Age: 18-65 years
Coverage: ₹25 lakh to ₹1 crore+
Premium: ₹430/month onwards
Claim Settlement Ratio (CSR): 97.75%
Key Features:
– Critical illness rider for 37 illnesses
– Waiver of premium for disability
– Has the return of premium option
– Offers discounts for women and non-smokers
Reliance Nippon Digi Term Plan
Insurance Company: Reliance Nippon Life Insurance
Minimum Entry Age: 18 years; Maximum entry age: 60 years
Maximum Sum Insured: ₹25 lakhs to ₹1 crore
Minimum Premium: ₹390/month
Claim Settlement Ratio (CSR): 97.63%
Easy Application:
– Online discounts cover critical illness with the optional riders
– A flexible payout option is available for dependents.
– Premium for the rider for critical illness or disability waiver.
Conclusion
Choosing the right term insurance plan involves assessing your current and future financial needs. With numerous options, it is essential to focus on plans offering high CSR, customizable riders, and competitive premiums. While policies like HDFC Life Click 2 Protect and Max Life Smart Secure Plus excel in comprehensive coverage, others like Tata AIA Sampoorna Raksha Supreme provide unique features like premium return.
Take your time, compare plans, and make the right decision to secure your family’s future. Term insurance is not just a financial tool-it’s a promise of protection for your loved ones.
FAQs
Q. What is the best coverage amount for term insurance?
A. It should be at least 10-15 times your annual income so your family always has financial support.
Q. Are the premiums fixed for the entire term of the policy?
A. Yes, premiums are generally level unless you add riders later.
Q. Do smokers qualify for term insurance?
A. Yes, but premiums will be higher for smokers than for non-smokers.
Q. What happens if I survive the term?
A. Term insurance does not offer maturity benefits unless you opt for a return of premium (ROP) plan.
Q. Can NRIs buy term insurance in India?
A. Yes, NRIs can buy term insurance in India, though conditions may vary with the insurer.
