Term insurance is a financial cover which will take the financial responsibility of the policy holder in the event of death. This insurance is a must for the breadwinner of the family.

It is always better to buy term insurance online as you can compare from various sites and buying online will save your time and money.

Buying any term insurance plan may not serve the complete purpose as the plan should match your needs and life style.

1) LIC e-Term Plan

LIC's e-Term is a regular premium non-participating "on-line term assurance policy" which provides financial protection to the insured family in case of his/her unfortunate demise.

Major features of the plan:

• Available through Online mode (www.licindia.in)
• Pure term plan.
• Differential premium rates for Smoker/Non-Smoker lives.
• Proposal on own life ONLY will be considered.
• In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.
• On survival to the end of the policy term, nothing shall be payable.
• As per IRDA, the claim settlement ratio is 98.19 per cent for the financial year 2014-15.

2) ICICI Pru iProtect Smart

ICICI Pru iProtect Smart is a term insurance plan that offers multiple options so that you get enhanced protection for yourself and your family at affordable premiums.

Major features of the plan:

• Affordable protection for your family: Large life cover at affordable premium so that your loved ones are always financially secure.
• Complete protection for you: Guaranteed cash payout up to Rs. 1 Crore to you for 34 life threatening illnesses
• Protection against disability: In case of permanent disability due to an accident, the policy continues with no further premiums to be paid
• In case of death due to accident, the nominee will receive double the sum assured
• You can increase your cover amount at key stages of your life - like marriage and birth of your children
• Special premium rates: for women and non-tobacco user.
• As per IRDA Claim settlement ratio is 93.8 per cent for the financial year 2014-15.

3) Max Life Term Plan

Max life term insurance plan is a Non-Participating, Non-Linked, Pure Term Insurance Plan. Means this plan is a pure term that provides only death benefit and no maturity amount.

Major features of the plan:

• Choice of 3 Death Benefit options: Max Life Online Term helps you customize the protection required at affordable prices by offering 3 death benefit options to choose from at the time of purchase.
• Comprehensive protection against Death & Dismemberment by adding Comprehensive Accident Benefit Rider UIN - 104B025V01.
• Hassle free online application process
• AS per IRDA, claim settlement ratio is 96.03 per cent for the financial year 2014-15.

4) HDFC Life Click 2 Protect Plus

HDFC Life Click 2 Protect Plus is an online term insurance plan in India which provides you comprehensive protection at an affordable price and helps you to protect yourself and your loved ones against the uncertainties that life may throw at you.

Major features of the plan

• This online term policy provides you with four cover options:
• Life Option, Extra Life Option (Accidental Death Benefit), Income Option, and Income Plus Option.
• Under Life Stage Protection Feature you have an option to Increase your Insurance Cover on certain key milestones of your Life like Marriage, Child Birth without fresh medical test
• Flexibility to choose your policy term of 10 to 40 years as per the cover required
• Option of Regular , Limited & single Premium Payment Term
• Rewards you for healthy lifestyle with lower premium rates for non-tobacco users
• Option to pay premiums annually, half-yearly, quarterly or monthly for Regular & limited premium paying term policy.
• As per IRDA, claim settlement ration is 90.5 per cent for the financial year 2014-15.

5) SBI Life - eShield

SBI Life - eShield is an Individual, Non Linked, Non Participating pure term plan, with options and benefits specially tailored for those who want the best financial protection at an affordable cost.

Major features of the plan:

• Security for your family at an affordable premium.
• Easy and seamless online process for securing life cover
• Rewards you for maintaining a healthy lifestyle
• Wide variety of plan options, which has level and increasing cover
• additional benefit of Accidental Death Benefit.
• As per IRDA, claim settlement ratio is 89.43 per cent for the year 2014-15.

Claim settlement ratio

In a recent study, IRDA reported highest claim settlement by Life Insurance Corporation of India (LIC). The higher premiums charged by the LIC for insurance plans in comparison to other insurers can be justified with the company providing better claim settlement.

Claim settlement ratio should be one of the main reason while selecting any term plan. The source that can be looked upon for confirming the ratio of claims honoured by different insurers is the IRDA site that releases industry data on a regular basis concerning different parameters of importance in the insurance vertical.

Along with claim settlement ratio individuals should consider objective of the plan, features, benefit and premium among others.

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