Top 8 Best Term Insurance Plans in India in 2019

 

 

 

Insurance  What happens if the earning member in the family suddenly collapses and dies? What happens if the head of the family who is earning met with an accident and not in this world? While the loss of the family member cannot be replaced with anything, it also impacts the financial status of the family. Such loss can ruin children education, daughter marriage and survival of the spouse. One of the best ways to secure from such sudden negative surprises in life is to take Term Insurance Plan. Term Insurance Plans would come with low cost and high sum assured and secures your family in such loss. How to pick-up best term insurance plan? Which are the Best Term Insurance Plans for 2018-2019? What are the Top 8 Best Term Plans for 2018-2019 that has high claim settlement ratio?

What is Term Insurance Plan?

If you are aware about Term insurance plan, skip this section.

Term insurance Plan is a simple insurance plan where if the individual insured dies, their family / nominee would get the sum assured. There is no maturity amount in the term insurance plan. These are insurance plans that have risk coverage only. One would not get any money back on maturity.

As per guidelines from IRDA, after 3 years from the date of policy, a claim cannot be rejected citing any reason. Hence, claim settlement ratio is no more a major criteria in deciding the best term insurance plan. However it still needs to be considered as one of the point while buying a term insurance plan

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How we filtered Top and Best Term Insurance Plans in India for 2018-2019?.

There are several parameters which can be considered while picking up top and best term insurance plan in India. However, I have considered 4 key parameters while picking the right term insurance plan.
1) Insurance Claim Settlement Ratio (CSR): Though CSR is not the major criteria to be considered, one has to give importance to it. As of 2015-2016, there are 62 insurance companies which are registered in India. However, only 10 companies have declared claim settlement ratio of more than or equal to 95%. CSR is one nothing but settled insurance claims over the total insurance claims received by the insurance company. Lower CSR means, company is rejecting more claims and in future your family could be victim out of that. I have filtered companies that has high claim settlement ratio of 95% to 100%.
2) Insurance Company Reputation: No one can tell you how good is an insurance company. The higher the duration of the insurance company registered, it is better. Hence, we have filtered Insurance companies that have good operating history of more than 10 years.
3) Additional Features in Term insurance plan: What about good insurance company that do not offer much options? No one would really want to opt for that. I have filtered Term insurance plan which are basic features + additional features that would be helpful for individuals who are planning to take term plans.
4) Plans with Low Premium: While Premium is not the only criteria in selecting an insurance plan; we have given preference to term insurance plans which are being offered at low premiums with more features.
One should do term insurance comparison before taking up a term insurance plan. You can buy term insurance online from respective insurance portals.

Top 8 Best Term Insurance Plans in India in 2018-2019

Here are the Top 8 Best Term Insurance Plans for 2018-2019. We are giving major features of these term insurance plans.

1) LIC e-Term Insurance Plan

• LIC is well known and trusted brand in insurance segment in India. One of the best term insurance plans that come from LIC is e-Term Term Insurance Plan. Here are the features of the LIC Term Insurance Plan.
• Minimum Entry age is 18 Years and Maximum entry age is 60 years
• Maximum maturity age is 75 Years.
• Policy tenure is between 10 years and 35 years.
• Minimum Sum Assured is Rs 25 Lakhs. For non-smokers, minimum sum assured is Rs 50 Lakhs.
• Maximum Sum Assured – No limit.
• No Riders available in this plan
• Claim settlement ratio of FY 2016-17 is 98%.
• All kinds of death including accidental deaths are covered under this plan except suicide during first year.
• One can propose on own name only and cannot take on spouse name who is not working.
• Premium is approx. Rs 19,700 per annum (Excl Taxes) for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured. Once premium is computed it would not change during the tenure of the policy.
• If you plan to work abroad or go on vacation, LIC Term insurance plan would still provide insurance coverage.
• LIC e-Term Term Insurance Plan is one of the Top Online term insurance plans in 2018-2019 as it has brand value as well as trusted by Lakhs of people in India.

2) Max Life Term Insurance Plan Plus

Below are the major features of this term insurance plan from Max Life.

• Minimum Entry age is 18 Years and Maximum entry age is 60 years
• Maximum maturity age is 70 Years.
• Policy tenure is between 10 years and 40 years.
• Minimum Sum Assured is Rs 25 Lakhs.
• Maximum Sum Assured – Rs 100 Crores.
• Comprehensive Accident Benefit Rider available in this plan.
• This plan is available in 3 coverage a) Basic Life Cover b) Basic Life Cover+Monthly cover c) Basic Cover + Increasing Monthly Income
• Claim settlement ratio of FY 2016-17 is 97.8% which is highest among all insurance companies.
• Basic Premium is approx. Rs 9,000 per annum (Excl taxes) for a 30 year non smoker for a 30 year policy for 1 Crore sum assured.
• Max Life Term Insurance plan Plus is one of the good term insurance plans for 2018 which has high claim settlement ratio and comes with low premium.

3) HDFC Click 2 Protect Plus Term Insurance Plan

Below are the major features of HDFC Click 2 Protect Plus Term plan.

• Minimum Entry age is 18 Years and Maximum entry age is 65 years
• Maximum maturity age is 70 Years.
• Policy tenure is between 5 years and 40 years.
• Minimum Sum Assured is Rs 10 Lakhs.
• Maximum Sum Assured – No limit.
• There are various options like Life Option, 3D Life Option, Extra Life Option, Return of Premium Option etc. available in this plan.
• Claim settlement ratio of FY 2016-17 is 97.6%.
• Basic Premium is approx. Rs 13,000 (Excl taxes) per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
• This Term plan has several riders which make this as unique term insurance plan for 2018-2019. One can review HDFC Click 2 Protect 3D Plus before considering this insurance plan.

4) Aegon Religare iTerm Insurance Plan

Below are the major features of this plan.

• Minimum Entry age is 20 Years and Maximum entry age is 65 years
• Maximum maturity age is 75 Years.
• Policy tenure is between 5 years and 40 years.
• Minimum Sum Assured is Rs 10 Lakhs.
• Maximum Sum Assured – No limit.
• There are 2 death benefit options available a) Simple death benefit b) 50% death benefit paid + 3% of Sum assured every month for 5 years.
• Claim settlement ratio of FY 2016-17 is 97.1%
• Premium is approx. Rs 6,636 per annum for a 30 year non-smoker for a 30 year policy for a sum assured of Rs 1 Crore.
• More info on Aegon Religare Term plan is available on insurance website at this link.
• This is best term insurance policy which comes with low premiums and good features.

5) ICICI iProtect Smart Term Insurance Plan

Here are the key features of ICICI iProtect Smart Term Plan.

• Minimum Entry age is 18 Years and Maximum entry age is 60 years
• Maximum maturity age is 75 Years.
• Policy tenure is between 5 years and 40 years.
• Minimum Sum Assured – Based on minimum premium of Rs 3,600 per annum.
• Maximum Sum Assured – No limit.
• Optional rider that it pays if diagnosed of any of the 34 Critical Illnesses.
• It comes with 4 levels of protection 1) Life  2) Life Plus 3) Life and Health and 4) All in one.
• Claim settlement ratio of FY 2016-17 is 96.6%
• Premium is approx. Rs 8,279 per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
• I feel ICICI iProtect Term plan is one of the good online term insurance plans as it comes with several benefits and riders which are useful.

6) SBI Life eShield Term Insurance Plan

eShield is the SBI Term Insurance Plan which comes with unique features.

• Minimum Entry age is 18 Years and Maximum entry age is 65 years
• Maximum maturity age is 70 Years.
• Policy tenure is between 5 years and 30 years.
• Minimum Sum Assured is Rs 35 Lakhs.
• Maximum Sum Assured – No limit.
• It comes with two plan options 1) Level Cover Benefit 2) Increasing cover benefit.
• There is inbuilt benefit “Accelerated Terminal Illness Benefit” available.
• There are inbuilt riders available a) Accidental Death Benefit Rider 2) Accidental Total and Permanent Disability Benefit Rider.
• Claim settlement ratio of FY 2016-17 is 96.6%.
• Premium is approx. Rs 12,000 per annum (Excl taxes) for a 30 year non smoker for a 30 year policy for 1 Crore sum assured.
• SBI Life eShield Term Insurance plan is one of the best term insurance plans for 2018 which comes with inbuilt benefits and riders.

7) TATA AIA Life iRaksha Online Term Insurance Plan

There are 4 variants of term insurance plans offered by TATA AIA Life. One of the good plans with TATA AIA Life Insurance iRaksha Online Term insurance plan. Below are the major features of this plan.

• Minimum Entry age is 18 Years and Maximum entry age is 70 years
• Maximum maturity age is 80 Years.
• Policy tenure is between 10 years and 40 years.
• Minimum Sum Assured is Rs 50 Lakhs.
• Maximum Sum Assured – No limit.
• Claim settlement ratio of FY 2016-17 is 96%.
• Rate benefits for customers opting for higher level of protection (Sum Assured of Rs 75 Lacs & above).
• Premium is approx. Rs 11,000 per annum for a 30 year non smoker for a 30 year policy for a sum assured of Rs 1 Crore.

8) Aditya Birla Sun Life Insurance Shield Term Plan

There are several term plans from ABSLI

• Minimum Entry age is 18 Years and Maximum entry age is 65 years
• Maximum maturity age is 80 Years.
• Policy tenure is between 10 years and 50 years.
• Minimum Sum Assured is Rs 25 Lakhs.
• Maximum Sum Assured – No limit.
• There are 4 options available in plan 1) Level Term Assurance 2) Level Term Assurance with Waiver of Premium 3) Increasing Term Insurance 4) Increasing Term Assurance with waiver of premium 5) Decreasing Term Assurance
• Claim settlement ratio of FY 2016-17 is 94.7%.
• Premium is approx. Rs 8,000 per annum for a 30 year non smoker for a 30 year policy for a sum assured of Rs 1 Crore.

Conclusion: There are several good term insurance plans in India. My advice to you would be, to consider term plans among top-5 indicated above. Do term insurance comparison to opt from available ones. You can also split your insurance coverage into 2 plans e.g. Instead of 1 Crore Term plan from single insurance company, you can take Rs 50 Lakhs each from two insurance companies to avoid any rejections in future of say 10 or 20 years. Term Insurance plans are best which comes with low premiums and high risk coverage. This should be your first step in financial planning.

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