5 Best Term Insurance Plans in India 2020

Term life insurance, widely known as the term life insurance scheme, which is the basic form of life insurance plans that are available in the country. Term life insurance policies are guaranteed a high sum assured as compared to other insurance plans in India. The premium of the Term Insurance depends on the age of the individual, term of the policy and the sum assured. In term insurance a fixed sum assured is paid in case of the death of the insurer. One of the best part of the term insurance is that it covers high insurance coverage at a minimum premium rate.

Benefits of Term Insurance

• As compared with other health insurance plans, term insurance has the lowest premiums
• If the policyholder's death occurs during the policy duration then his / her nominee will receive the chosen Amount Assured.
• If the policyholder lasts until the end of the policy span, then no maturity sum will be earned by him/her.
• Pursuant to section 80C of the Income Tax Act, the premium charged for term insurance may be listed as tax exemptions. You can also seek limitations on benefits received from insurance policies under Section 10 (10D).
• Most of the term insurance has additional features for accidental death, critical illness and permanent disability

  

  
  

How to choose the best term insurance in India?

• In choosing a life insurance company CSR is the most important criteria to keep in mind
• As a percentage of total claims collected in a financial year, CSR is the number of claims paid by the life insurance company.
• A higher number suggests that a significant number of claims were settled by the company.

LIC e Term Plan

This plan provides total security to the family with an affordable premium rate. This is an online term insurance plan for which you can apply for the plan more conveniently without any additional charge. The plan provides death benefits to the insurer of the policy in case of death of the insurer during the tenure of the policy.

Benefits of the plan

• One of the widely known and most trusted term insurance plan in India
• The plan can be purchased online with a tenure ranging from 10 years to 35 years
• Provides the benefit of tax exemption u/s 80C of the Income Tax Act.
• The maximum maturity of the plan is 75 years
• Annual premium is Rs 8,998+GST
• Claim settlement ratio of the plan is 98.14%

Aegon Life iTerm Insurance Plan

Aegon's online term insurance policies are the most competitive plans in India. This is an online term insurance plan where you can pay the premium on a monthly, quarterly or yearly basis. The coolest part is that of the plan is that you can increase the cover of the plan in case of any family event like marriage, childbirth or any.

Benefits of the plan

• The term duration starts from 5 years to 62 years
• The maximum maturity of the plan is 100 years
• The minimum sum assured of the plan is Rs 25 lakhs
• Get cover for accidental death
• Annual premium is Rs 4,674+GST
• Claim settlement ratio of the plan is 81%

ICICI Prudential iProtect Smart Term Insurance Plan

ICICI's iProtect Term Plan is among the most popular term insurance policies in India. This provides a unique service under which the insured pays the premium sum if he is diagnosed with any of the 34 serious illnesses listed in the plan. To get such type of claims you have to submit the hospital bills. As other term insurance plans in India, the beneficiary can receive payments in lump sum mode or as monthly payments.

Benefits of the plan

• The term duration starts from 5 years to 85 years
• The maximum maturity of the plan is 75 years
• Get accidental death cover up to Rs.2 crore.
• The minimum sum assured of the plan is Rs 25 lakhs
• The individual can buy this policy under MWP Act
• Annual premium is Rs 5,085+GST
• Claim settlement ratio of the plan is 94.10%

  

SBI Life eShield Term Insurance Plan

The plan comes with two benefits such as you can decrease and increase the cover benefit as per your need. The level cover benefit stays the same throughout the year, while the increasing cove increases by a simple interest rate of 10% at the end of each 5th policy year. SBI life-Accidental death also covers accidental death and permanent disability.

Benefits of the plan

• The term duration starts from 5 years to 30 years
• The maximum maturity of the plan is 70 years
• The minimum sum assured of the plan is Rs 20 lakhs
• Annual premium is Rs 3000+GST
• Claim settlement ratio of the plan is 91.06%

HDFC Standard Life Click 2 Protect Term Insurance Plan

It is one of the best online term insurance plan which provides complete coverage of the family with an affordable premium rate.
The plan comes with 4 types of cover option:

• Life option (beneficiary can claim after the death of the assured)
• Extra life option (offers accidental death benefit)
• Income option (get 10% of the death benefit as a lump sum on the death of assured and the remain 90% will be paid in the form of monthly instalments over a period of 15 years)
• Income plus option (100% of the sum assured is paid on death)

Benefits of the scheme

• The term duration starts from 10 years to 40 years
• The maximum maturity of the plan is 75 years
• The minimum sum assured of the plan is Rs 25 lakhs
• Annual premium is Rs 5,829+GST
• Claim settlement ratio of the plan is 94.01%

About the Author

Vipul Das has done BCA and is writing finance related articles and content for goodreturns from the last 1 year. You can connect with him on Facebook and Twitter.