Best Term Insurance Plans in India for 2018
Term insurance is one of the keys parameters for financial planning. It provides protection to you and your family in case of any undesirable thing happened in your life. Though it is an insurance product, unlike the traditional insurance policy it differs in terms of the risk cover. It offers a big amount of sum assured to your family in the event of the death of the policyholder. Best term insurance.
If nothing happens to the policyholder during the policy term, nothing is given back to the policyholder. Your money is gone in vain. Upset? you should not be. here is why. Tell me do you own a car? if yes, do you pay insurance premium every year on your car? The answer is yes, and if there is no accident occurred during the year do you get anything back? Big no! So if you are paying for car insurance every year without fail, why not for your life and your family? Does your life is less important than your car?
The premium for term insurance is lower as compared to the traditional policies. It also depends on the various factors like age, the term of the policy, sum assured, your health etc. There are the plethora of the team insurance plans available in the market. More the option more the confusion. For a layman, it becomes very difficult to choose the best term insurance plan out of the huge universe of the plans. Most of the insurance companies are offering almost similar kind of plans or with a little bit of tweak.
Benefits of Term Insurance Plan
Get the lump sum amount in case of sudden death
Adequate money for your family so that they can live a life with pride
Disability or critical illness covered
Income source in case of disability or critical illness
Take care of all your financial liabilities
What is the ideal policy term?
You have to be careful while selecting the best term insurance plan otherwise you will end up buying a wrong one for your self and your family. To help you here is the list of best term insurance plans along with their salient features.
Best Term Insurance Plans in India
ICICI Pru Smart Protect plan is more than a term plan that protects you and your family. It also provides health cover against 34 critical illnesses. It offers to provide accidental death cover up to 2 Cr.
Protection against 34 critical illnesses and accidental death
Special premium rates for non-tobacco users.
Covers female organ cancers such as breast cancer and cervical cancer
Enjoy the tax benefit under the policy
It pays life cover on terminal illness (including AIDS)
Option to ad accidental benefit now or later
Met life insurance
Death due to suicide is also covered under this plan
Looking at the above features of the term plan, I have rated this as one of the best term insurance plans.
This plan covers 3 uncertainties Death, Disability, Disease. that’s why its called 3D plan. Key features of the plan are as below.
Customize plan with 9 available options
Future payments are waived off in case of accidental total permanent disability
Flexibility to choose your policy and premium payment terms
Flexibility to increase your cover every year through top-up option
Special premium rates for female lives
Attractive premium rates for non-tobacco users
Tax benefits as per prevailing law
What comes first to your mind when you talk about insurance in India? LIC right? It is the big brand for ages. It is the most trusted insurance company in India. LIC e-Term plan is an online term insurance plan. Below are the features of the plan.
The plan is available through the online portal only, no agents are involved
It is a pure term plan and does not offer any benefit on the maturity, it provides benefits only in case of the demise of the policyholder
It covers all type of death including accidental death
The loan cannot be given against policy
The plan provides coverage up to 75 years of age
The plan does not offer any riders
Premium amount is slightly higher as compared to other competitors
The plan covers basic life cover with increasing monthly income for your family.
Offers one-time payout to the nominee
It gives an option to increase coverage at important milestones
Maximum coverage up to the age of 85
The plan is also available for NRIs for selected countries
It is one of the best plans in India. This is the only plan which covers up to 100 years. Below are the features.
Enjoy the life cover up to the age of 100 years
Best value with high cover at low premium rates
Increase your life cover to meet the growing needs of your family
Provides 25% of the death benefit on diagnosis of any terminal illness and future premium is waived off
Additional coverage available at the nominal charges
SBI eShield is the pure term plan. Its features are as below.
Farm bureau insurance
Choose between two benefits: Life cover or Increasing cover
Affordable premium, special discount for non-smokers
The plan provides no maturity benefits
Offers grace period of 30 days on yearly and half-yearly premium
Offers 2 years of revival facility
What should you look for while selecting a term policy?
Premium – The first thing you should check is the premium amount charged by the company. Compare various plans of different companies and choose the one which fits your wallet. There are many insurance policy aggregators like Policy bazar Coverfox Bankbazar Here is the list of the companies which offer an online insurance policy. – Online Insurance Policy
Additional Riders – Some of the companies are offering additional riders like maturity benefits, different payout options etc. Compare these features and choose the best one for you which suits you and your family needs.
Claim settlement ratio – To me, this one is the most important parameters to check while selecting the insurance plan. Claim settlement ratio means how many policies claims a company has passed against the total policies. Choose the plan which has the highest claim settlement ratio.
To help you out, I have design below chart of best term insurance plans in India.
Having a term insurance plan is a must. It is the foremost requirement for an individual who has a family and liabilities.