10 Best Term Insurance Plan In India for 2016

Best term insurance planBest term insurance plan in India for 2016.

Which company to go after…?

Last updated: 17 May 2016.

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This doubt will always pop up in your head whenever you would want to buy one for yourself. And why would it not as this is your hard earned money so you would always want to choose the best of the best…. But since there are so many companies in the market offering the same product with different features and limitations that it sometimes can be very confusing to pin point one and that to a best one. But before you can choose from many different options, you need to make sure that you are buying the best plan for yourself and this you can do by looking at the features. Thus here is the list of features to look at that will make the most ideal insurance plan in india.

How to choose the best term insurance plan in India…?

Best term insurance plan in india 2016   If you can get all the above given features in a single plan then it can turn out as the best term insurance plan to buy. Let’s understand them in more detail one by one….

Claim settlement ratio:

This is by far the most important factor that you should look for as this defines the probability of a company to pay your claim. Which is the best term insurance planIf the claim settlement ratio of a certain company is 95% then there would be 95% chance that your claim will be entertained and paid. Though the claim settlement ratio talks only about the claims settled in the previous year but still it always makes sense to look at this ratio before you buy your best term insurance plan.

Terms of the policy:

It is the period for which your policy remains active. It usually ranges from minimum of 5 years to maximum of whole life, but it really depends on the company you buy from. Thus make sure to look at your insurer’s terms before you buy one for yourself.

Entry Age required:

It always makes sense to check for the minimum age required as this is how you will become eligible to buy the plan. It usually is around 18 years.

What are the Death Benefits…?

Check out how the family will be paid in-case of an unfortunate event. Whether they will receive the entire sum assured all at once or paid monthly. This can be your most important factor that will help you figure out the best term insurance plan in india. Since death benefit will be the claim amount your family will receive, thus you would want it to be used wisely.

Benefits at maturity:

People pay premium so that their family feel safe even after them. But what about if by God’s grace they survive the policy term. This is where maturity benefit comes in as the insured is paid back his premium on the maturity of the policy. This is something not every company offers. But please make sure that if you want such a benefit to be a part of your policy then you pay a little extra. Simply buy an add-on (Return of premium) and your entire premium will be paid back to you at maturity. To read more on this benefit, check here.

Is critical illness coveredIs critical illness covered:

Check out if your insurer covers any critical illnesses, if not then are there any riders available? The more the facilities provided the better it is.

Affordable:

You as a consumer are at the biggest advantage, as you would always have a chance to shop from different insurers. Since the term insurance in India will more or less be the same even with different insurers, you would always be able to find the best plan. Here is the list of companies offering the most affordable term insurance plans. To find for more tips and tricks on how to find the best term insurance plan in India when tight on budget then read this.

Any tax benefits provided:

Though every company provides tax benefits under section 80C and 10 (10D), it still makes sense to enquire the same. Do you know you can save upto Rs.1.5 lacs from your taxable income just by investing in insurance. Check out the file picture from HDFC. Term plans helps you save tax

How about Riders…?

Things can’t get better if you can find stuff of your choice. Though insurance companies offer standardized term plans, but you can customize them suiting your choice with the help of riders. They can come with lot of benefits if you want that something extra. Thus make sure you check them out instead of only running after cheap term plans.

Are they online…?

This is a must have feature. Today time is money and online convenience can be your biggest time saver. Thus enquire that whether the company you are running after even supports online transactions as this can help you to save that much needed time.

  • Online Term insurance planYou would be able to renew your policy without waiting in long queues.
  • You would be able to check your policy status with a click of a button.
  • Filing for claims and checking progress online can go a long way in releasing stress out of you.
  • You can have flexibility in paying premiums.

Companies provide many options wherein you can pay your premium either:

  • Monthly,
  • Quarterly,
  • Half yearly or,
  • Yearly

Thus check with your company of what flexibility you are provided with. Best term insurance plan in India is the one that caters to your needs. Thus always make it a point to look at every feature listed in the plan as this will help you decide on the company to go with. Once you have checked on the list of features to look at before buying your term plan, it will now be time to decide on the type of term insurance you would want.

Here are its 6 different types:Different types of Term plans

  1. Increasing Term insurance Plan,
  2. Level Term Insurance Plan,
  3. Decreasing Term Insurance Plan,
  4. Joint Term Insurance Plan,
  5. Group Term Insurance Plan, and
  6. Return of Premium Term Insurance Plan.

If you are keen to know, what these term insurance really mean then check out this post. Here you will find not only the various types of term plans but also how term insurance comparison is done. Till then read ahead, to find the best companies in this sector. I have listed them down in the order of their claim settlement ratio so that it becomes easy for you to choose.

Let’s hunt for the best term plan in India…

Reviewing top 10 insurance companies of all times

First on the list is:

1. ICICI Prudential: iProtect

Thing you should know about the company are… It’s a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group based in U.K. ICICI Prudential was amongst the first private sector insurance company to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). They have loads of assets   ICICI Prudential Life’s capital stands at Rs. 48.16 billion as of March 31, 2015 thus you need not to worry about your claims being met as they are the most reputable company today in the financial sector. 

How they can help you…?

You can insure yourself from as minimum as 10 lacs to max of 10 cr. Here are some key features provided:

Policy nameiProtect
Sum Assured Rs. 10 lacs to Rs. 10 cr.
Age criteria Minimum of 20 years to 65 years
Maximum Maturity age70 years
How you pay premium Yearly
Policy term10, 15, 20, 25 and 30 years
Claim Settlement Rate94.1%
  They even provide comprehensive life cover against terrorist attacks and other natural disaster.

Common in all policies

You can cancel your policy within 15 days of receiving the plan documents if you are not satisfied with the terms specified. Moreover you even get a special 30 day grace period from the premium due date if you forget to pay premium on time. Thus you can have a more relaxing life.   If a person named “Mr. A” happens to buy insurance policy from ICICI then this is what he will have to pay if he is 30 year old and married and is a non smoker. Best term insurance plan in india

Plan Term Insurance
CompanyICICI Pru: iProtect
Sum Assured1 cr.
Maximum Tenure65 years
Premium Rs. 15,123
Premium payment frequencyyearly
On death family receives lump sum amount1 cr.
Please note: Premiums are subject to change thus always make sure to consult your insurance agent before you buy one for yourself.

2. HDFC life: Click2Protect Plus – Income Option

The company is a joint venture between Housing Development Finance Corporation Limited (HDFC), which is India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Term Plan It is important to note that majority of the stake is with HDFC Ltd. that holds 72.37%. Thus its our very own Indian company with great foreign connections.

Does this makes them the best term insurance plan in India…?

Let’s check that out:

Can this be your Best Term Insurance Plan in India...?
Sum Assured
25 lac to Maximum of “No limit”
(Thus if you can pay the premium then they have the plan for you)
Age range18years to 65 years
Max maturity age75 years
Premium (pay frequency)They are very flexible offering:
Single, Annually, Half yearly, Quarterly or Monthly payments.
Policy Term10 to 40 years.
Claim Settlement rate94.01%
The unique thing about them is that they provide “Income Option” plan meaning after the death of the policy holder, family will be paid an immediate amount of 10% of the sum assured and rest will be paid monthly.   Thus if “Mr. A” is insured for 1 cr. then upon his death his family will be paid like:

  • Rs. 10 lacs at the time of death (i.e. 10% of 1 cr.) andcool
  • Rs. 50,000 Monthly for 15 years (turns out Rs. 6,00,000 annually for 15 years). Quite a handsome money to support one’s family.
  • Thus this product from HDFC provides a good support as the life goes on.

Here is what “Mr. A” has to pay in premium if he happens to buy term insurance plan from HDFC life.

PlanTerm insurance
CompanyHDFC Life
Sum Assured1 cr.
Maximum Tenure75 years
Premium 7,976
Premium payment frequencyFlexible
On death family receives 10% at the time of death (i.e. 10 lacs) and
Rest paid monthly for 15 years (i.e. 50,000 monthly)

3. Max life Insurance: Term plan – Increasing Income

They are one of the leading life insurers, which is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is also known as the leading multi-business corporate in India. What makes them stand out of the crowd is there:

gurantee100% GUARANTEE” which says:

All death claims will be settled within 10 working days and if we fail to do so we will pay you 6% p.a. of interest on the claim amount”.

They also provide you with a dedicated claim “Relationship manager” that will assist you in settling your claim. In my personal opinion: “It’s a very helpful service that relieves one’s family from all the hassles considering the trauma they face after policy holders death.” Just one phone call and your every query will be answered. Don’t agree with their terms and conditions: I don't like it... No problem, You have 30 days to review the policy from every possible angle. In case of any disagreement you can simply return the policy, stating the reason of disagreement. Their key offerings that can possibly make them the best term insurance plan in India are….

Sum assuredMin. of 25 lacs to 10 cr.
Entry Age18 to 60 years
Age at which the policy expires70 years
Frequency of paying premiumAnnual
Policy term10 to 35 years
Claim settlement rate93.86%

What makes them to be an “Increasing Income plan….?”

Max Insurance “Term plan” is an increasing income plan as they offer: 100% of the Sum assured as lump sum on death + monthly income for 10 years. This income increases every year at 10% simple rate of interest of the first year monthly income. Wondering, how they manage to do so…? They actually do it by charging little extra in your premium. Thus their effective total death benefit including Monthly Income comes out to be 169.6% of Sum Assured. With benefits like such: 100% guarantee and Monthly income for 10 years, they are  surely on the track to provide the best term insurance plan in India. You get more Now, if “Mr. A” buys from Max life then his premium would come out as:

PlanTerm Insurance
CompanyMax life
Sum Assured1 cr.
Maximum Tenure70 years
Premium Rs. 11,514
Premium payment frequencyYearly
On death family receives 1 cr. at the time of death and 40,000 monthly for another 10 years.

4. Bajaj Allianz: iSecure

They are a joint venture between Bajaj Finserv Limited and Allianz SE. They both have a good reputation of expertise, strength and stability. They have earned a good reputation among their clients in a very short time by providing competitive pricing and quick, easy and honest responses. fair business There product features are:

Can this be your Best Term Insurance Plan in India...?
Sum AssuredFrom 20 lacs to No limit for the sum assured
Age Range18 to 60 years
Max Maturity Age70 years
Premium paying flexibilityAnnually, Half yearly, Quarterly, Monthly.
Policy term10, 15, 20, 25 and 30 years
Claim Settlement ratio91.29%
  Bajaj Allianz USP is that they take care of you if you take care of them.

Let's Both benefit

How…?

  • Just choose a higher sum assured and you will get attractive rebates on your premium.
  • They also provide you with an option to include your spouse if you are single at present.
  • If you have recurring expenses than you can meet them with Bajaj iSecure plan by simply opting for payment of benefit in your annual installments.

Let’s come back to our e.g. and find how much “Mr. A” would pay in premium for a sum assured of Rs.1 crore:

PlanTerm Insurance
CompanyBajaj Allianze
Sum Assured1 Cr.
Maximum Tenure70 years
Premium Rs. 12,227
Premium payment frequencyFlexible
On death family receives lump sum amount1 cr. lump sum.
  Fifth on the list is….

5. SBI life insurance: eShield

SBI life insurance is the collaboration of 2 companies, State Bank of India and BNP Paribas Cardif. Of them SBI holds the majority stake while BNP Paribas holds 26% in the business. This life insurance company was rated as the Most Trusted Private Life Insurance Brand in India, for two consecutive years, 2011 and 2012 by the Economic Times – Nielsen’s Most Trusted Brands Survey. trusted Are they the best term insurance plan in India…? Let’s dig into their features:

Sum Assured20 lacs and “No Limit” on the maximum amount
Age limits18 to 65 years
Policy terms5 years to 30 years
When premium is paidYearly
Claim Settlement rate91.06%
  They are affordable, reputed and one of the oldest companies in India in financial sector. Thus if you disclose everything then you need not to worry about your claim being rejected as they are one of the safest companies to work with.

Additional Benefit 

Best term insurance plan in India In their product (eShield) they also provide you “Accidental Death Benefit” which is inbuilt in the plan. Thus in case of death of the policy holder due to an accident, accidental Death Benefit will be paid to the nominee in addition to the effective sum assured. What will happen to “Mr. A’s” premium if he takes SBI route:

PlanTerm Insurance
CompanySBI life insurance
Sum Assured1 Cr.
Maximum Tenure65 years
Premium Rs. 11,595
Premium payment frequencyYearly
On death family receives lump sum amount1 cr. (Lump sum)

6. Aegon Religare life insurance: iTerm

It’s an international life insurance, pension and Investment Company. They are a joint venture between 3 different companies: AegonReligare and Bennett, Coleman & company. With its roots going back to 1844, AEGON now has more than 160 years of experience in this field. With them being so old, now have customers worldwide which are 40 million in number spanning across the globe.. continents What they offer is:

Can this be your Best Term Insurance Plan in India...?
Sum Assured10 lacs to “No limit”
Age limit18 to 65 years
Max maturity age 75 years
Flexibility in paying premiumsSingle and Yearly
Policy term5 to 57 years
Additional benefitAccidental death benefit
Claim settlement ratio90.37%

Some Extra benefits that every term insurance policy should have….

They not only cover your life with the sum assured but also cover your critical illness. 25% of the sum assured is straight away handed over to the policy holder if in case he is diagnosed by any life threatening disease. The policy plan also covers any terrorist attacks and thus helps you in securing your life completely. If you still want any extra cover then you can add them anytime with the help of available riders that comes with the plan. Complete protection Will Mr. A find his best term insurance plan in India that is affordable too, let’s find out…

PlanTerm Insurance
CompanyAegon Religare life insurance
Sum Assured1 cr.
Maximum Tenure75 years
Premium Rs. 7,866
Premium payment frequencySingle and Yearly
On death family receives 1 cr. (One time lump sum)

7. Bharti AXA life: eProtect

The company is a life insurance player that started its operations back in 2006. This joint venture of 2 strong companies brings together the financial expertise of the Paris-headquartered AXA Group, and Bharti Enterprises – one of India’s leading business groups. Today the company offers a range of some of the most innovative products that caters to insurance and wealth management needs of there clients. What there best term insurance plan offer is…..

Can this be your Best Term Insurance Plan in India...?
Sum AssuredRs. 25 lacs to No limit
Entry age18 years of age to 65 years
Maturity age75 years
How many times you payYearly
Policy term10 to 30 years or
60 to 75 years (in multiples of 5)
Claim settlement ratio88.13%
  To settle down your claims (all hassle free) they appoint a personal relationship manager who guides and assists you from time to time. They also provide “Family care benefit” which is inbuilt in the plan. Under eProtect, the nominee is handed over a cheque of Rs.1 lac within 48 hours of the claim submission. This is done to take care of the immediate expense that might arise on an unfortunate event. With benefits like such they surely have a lot to offer… cheque-min So let’s see how much difference this company will bring to “Mr. A’s” premium:
PlanTerm Insurance
CompanyBharti AXA
Sum Assured1 cr.
Maximum Tenure75 years
Premium Rs. 7,866
Premium payment frequencyYearly
On death family receives 1 cr. (Lump sum)

8. Birla Sun Life Insurance: Protect@Ease

Its a joint venture between the Aditya Birla Group and Sun Life Financial Inc., a financial service company based in Canada. The company has a customer base of over two million policy holders and is considered as the 3rd Most Trusted Life Insurance Company in the ‘Most Trusted Brands’ survey 2013 which was conducted by Brand Equity (The Economic Times Group) with Neilsen. There offer includes minimum of 50 lacs as the sum assured with max being 500 cr. They are among the top insurance companies that provide the longest maturity age being at 80 years. This can be an added advantage for someone looking for best term policy in India. There other features include: hospital

Can this be your Best Term Insurance Plan in India...?
Sum AssuredRs. 50 lacs to Rs. 500 cr
Age limit18 to 55 years
Max maturity age80 years
Premium payment flexibilityMonthly and Annually
Claim Settlement ratio87.76%
Since they provide the maximum maturity age thus they charge the highest premium of the lot. Let’s take a look at “Mr. A’s” wallet:
PlanTerm Insurance
CompanyBirla Sun Life
Sum Assured1 cr.
Maximum Tenure80 years
Premium Rs. 19,666
Premium payment frequencyMonthly or Annually
On death family receives 1 cr. (One time)

9. Reliance Life insurance: Online Term

The company is a part of Reliance Capital of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital is India’s leading private sector financial servicing company today. They rank among the top private financial servicing and non-banking companies in terms of its net worth. Reliance life insurance is a joint venture between Reliance Capital and Nippon Life Insurance which is Japan’s largest private life insurer with revenues crossing US $80 Billion and profits of over US $3 billion. There product (Online term) can surely be a good candidate for the hunt of best term insurance plan:

Sum AssuredRs. 25 lacs to “No limit” on the maximum side
Age Range18 to 55 years
Max Maturity age 75 years75 years
Flexibility in Paying premiumYearly
Policy Term 10 to 35 years in multiples of 5
Claim settlement rate81.97%
days The Company guarantees to settle the claim within 12 working days of receiving the required documents. Obviously this guarantee remains active if you adhere by the company’s terms and guidelines. This guarantee alone can come out as the biggest factor that can outshine Reliance competitors. Thus if you are still looking at finding the best term plan than you might want to consider them based on their guarantee. Coming back to “Mr. A” to find how much he will shell out if he goes with Reliance:
PlanTerm Insurance
CompanyReliance Life insurance
Sum Assured1 cr.
Maximum Tenure75 years
Premium Rs. 6,857
Premium payment frequencyYearly
On death family receives 1 cr. (Lump sum)

10. India First life Insurance: Anytime plan

They are one of the youngest life insurance companies in India which is a joint venture between Bank of Baroda, Andhra Bank and Legal & General which is UK’s leading risk, wealth and Investment Company. insurance In just 4 years of their working they have build a good reputation among their clients.  They now have presence in over 1000 cities and towns across the country. Things that they can offer you is:

Can this be your Best Term Insurance Plan in India...?
Sum AssuredRs.10 lacs to Rs.50 cr.
Age limit18 to 60 years
Max maturity age70 years
Premium paying flexibilityMonthly, Half-Yearly, Annual & Single
Policy term 5 to 40 years
  India First life Insurance is surely a good company but what is holding them back is their Claim settlement rate which is way too low and stands at 73.13%. This is not at all good for a company like India First. Such a number is not only holding the company from making progress but is also pulling their potential clients from taking a leap. If we check with “Mr. A” of what he will have to pay to buy the best term insurance plan then:
PlanTerm Insurance
CompanyIndia First life Insurance
Sum Assured1 cr.
Maximum Tenure70 years
Premium Rs. 8,323
Premium payment frequencyFlexible
On death family receives 1 cr. (all one time in Lump sum)
So this covers the list of top 10 insurance companies in India (2016) that has every potential to provide best term plan in India. Hope now you are more informed and can take wise decision in choosing the best insurance plan for yourself. Reap the benefits out of such a plan as it has a lot to offer.

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