Top 5 Best Term Insurance Plans In India 2018 – Which Term Life Insurance to Buy?

By | January 31, 2018

We all have planned a lot about our lives. Higher education, beautiful house, well-settled kids and a stress-free retirement life! But life is always full of surprises. You don’t know what is going to happen the next moment. So, it is very much essential that you secure your family’s future with a term life insurance plan. In this article, I will shortlist some of the best online term insurance plans in India for 2018 that will help you to buy term life insurance online.

But before that, let’s understand what is term life insurance, how to compare term life insurance quotes and find your premium with term life insurance calculator. Along with that I will also list out some of the top term insurance plans available in Indian market right now so that you can find them at one place and start your own analysis before buying the first term life insurance policy.

Although I am writing here about the best term life insurance plan, but the fact here is that it is practical to rank a policy in such criteria. But I know that most users are looking for the best financial products before buying and this is actually good to start as you will be able to find some good sources to start getting knowledge about the product. Anyway, any life insurance policy which suits your financial need is definitely the best one for you. But it is not necessary to be the best for another person.

Read: Is It Safe to Buy Term Insurance Online?

How to Choose the Best Term Life Insurance Plan?

You must take the first and most important step of your financial planning wisely. Now, how to decide which term life insurance to buy? But before that you must understand the different types of term plans.

Although I am mentioning here the list of all term plans available online, but still I am also sharing a list of top 5s where I will compare couple of key parameters to decide which insurance company is best as per that criteria. By the way you can keep these factors in mind while choosing term insurance plan.

Here is the list of term insurance plans available in India right now.

  • LIC e term plan
  • ICICI Pru iProtect
  • HDFC Click 2 Protect
  • SBI Life Smart Shield
  • Max Life Online term plan
  • Kotak Life Preferred e Term
  • Bharati Axa eProtect
  • Bajaj Allianz iSecure
  • Canara HSBC eSmart
  • Aviva iLife term plan
  • Reliance life Online Term Plan
  • Tata AIA Life iRaksha
  • Aegon Religare iTerm
  • Birla Sun Life Term Plan
  • IDBI Federal term Plan
  • PNB Met Life Term Plan
  • DHFL Pramerica Term Insurance
  • Edelweiss Tokio Term Insurance
  • Exide Life Term Insurance
  • Future Generali Term Insurance
  • Kotak Mahindra Term Insurance
  • Indiafirst Term Insurance
  • Sahara Term Insurance
  • Shriram Life Term Insurance
  • Star Union Dai-ichi Term Insurance
  • Tata Aia Term Insurance

5 Best Online Term Insurance Plans in India 2018

Let us discuss the 5 best online term insurance plans which you can consider for your financial planning. Well, when we say financial planning, the very first step is to secure your future and for that you have to calculate your insurance need to secure your future financials liabilities & targets.

In that context a typical pure term plan only can give you the necessary cover. Other than that, it will be very difficult with the traditional insurance policies with return on investment. I hope you have understood this difference by now after reading various articles on insurance from my blog.

Here is the criteria according to which I picked them.

  • Off course the claim settlement ratio plays the big role which choosing a term plan. The data always matter and it is the key criteria to judge how good or bad an insurance company is performing. And more importantly when it is insurance, the claim process matters the most as you are actually buying this product for the benefit of your family.
  • The next factor is the company reputation and market reach. We generally consider this factor for almost everything we purchase and the same apply here also.
  • And the last one is the premium rate. When similar features are offering by couple of good companies, then I think better to save some money by choosing the cheapest premium term plan.

Read: Which is the Best 1 Crore Term Plan with Low Premium?

So, here is the list of 5 term plans as per my understanding which will help you to decide your

LIC’s eTerm Plan

This is LIC’s online term insurance policy which has been launched by LIC of India to be available in the market of online term insurance policies. Without any doubt this policy is having the maximum premium for a particular sum assured value compared to other policies. The highlight of this policy is the brand name behind this policy, which is LIC of India.

Read: LIC’s eTerm Plan Review

ICICI Pru iProtect Smart Plan

ICICI iProtect Smart policy provide 360- degree coverage to your life at a very reasonable price. ICICI iProtect Smart term plan offers additional features of accident rider, premium waiver, critical illness and terminal illness benefits. ICICI Pru is doing good in insurance sector in India and they have good claim settlement ratio as well.

HDFC Click2Protect Plus

I have purchased this policy and the simple reason behind that is the various kind of options it provides. Although I have purchased the old Click 2 Protect policy, which I am planning to switch to Click 2 Protect Plus plan with any of the four different options namely Life, Extra Life, Income and Income Plus option. Although it is better to buy pure term plan only, but I will study the options first and then only decide. 🙂

Read: HDFC Life Click2Protect Plus Review

SBI Life eShield term Plan

SBI is another well known brand in India and without any doubt their term plan is backed by their brand name only. Although this policy offer some cool features like additional accidental rider benefit and increasing cover benefit. However, a premium of SBI e-Shield plan is high compared to any other term plan.

Max Life Online Term Plan

Max life term plan offers basic life cover plus monthly Income and Increasing monthly income option with its pure term plan. Max’s online term plan provides optional Accidental Death Benefit rider.

So, these are the few of the term plans which is good to study and choose. You can do complete analysis and share your knowledge here with your reasons to buy the term plan. This will help our readers to understand this topic better. I will try to make this article more worthy in coming days with more information.

List of Best Life Insurance Company in India As Per Claim Settlement Ratio 2016-17

In simple terms, claim settlement ratio is the measurement through which one can understand how many claims were raised and against that how many of them were paid or settled. This ratio is called as claim settlement ratio and without any doubt the more this number means the good the company is, in general perception.

Let’s check out some more data for each term insurance policies with claim settlement ratio and min sum assured value. We will talk about more in our blog about each term insurance plan and also review term plans regularly in all upcoming posts. Keep a track of our website for all future updates.

This data I have collected from policybazaar website and approximately we can see that LIC of India is having a huge market and that’s why the number of policy subscription, number of claims raised and settled is huge compared to any other insurance company.

But that doesn’t force me to buy my first term plan from LIC of India. I am not promoting any of the insurance policy here, but just sharing my personal view only which may or may not match with your opinion. But that’s absolutely fine I think. 🙂

I bought HDFC Click 2 Protect term plan 4 years back and I will share my reasons about why I liked that policy compared to the other online term plans in India in the later part of this article.

Below is the insurance companies list as per claim settlement ratio in 2015-16. You can checkout the 2016-17 list here.

Insurance Provider

Death claims received

Claim settlement ratio

Death Claims Paid

Claims Pending

LIC

7,55,901

98.33%

7,42,243

0.50%

Max Life

9,223

96.95%

8,804

0.10%

Birla Sunlife

8,436

88.45%

8,055

1.70%

Tata AIA Life

3,873

96.80%

3,659

1.00%

Star Union Daichi

1,266

80.73%

1,191

0.30%

ICICI Prulife

12,309

96.20%

11,546

0.80%

PNB MetLife

2,466

85.36%

2,290

1.50%

Bajaj Allianz

20,661

91.30%

18,978

3.00%

Kotak Mahindra Life

2,686

89.09%

2,437

3.20%

HDFC Std

12,189

95.02%

11,031

2.30%

SBI Life

14,876

93.39%

13,303

3.20%

Sahara Life

778

90.30%

700

3.60%

Aegon Life

460

95.31%

413

0.20%

Canara HSBC

576

92.99%

516

3.10%

Exide Life

3,432

89.36%

2,955

1.60%

Reliance Life

18,142

93.82%

15,211

5.80%

Future Generali

2,160

90.26%

1,808

1.80%

Aviva Life

1,690

81.97%

1,396

0.50%

Bharti AXA Life

1,112

80.02%

900

2.90%

IDBI Federal Life

1,017

84.79%

736

4.30%

India First Life

1,655

71.87%

1,195

5.00%

Shriram Life

1,960

60.24%

1,307

11.20%

DHFL Pramerica

953

83.64%

545

6.50%

Edelweiss Tokio

119

85.11%

68

5.00%

**Claim settlement ratio for the year 2015-16   

In simple thumb rule, the company who sells more policies and settle more claims has earn a good reputation. And people also tend to trust that as well. Anyway, let’s explore few more facts.

Best Term Life Insurance Policies with Rider Benefits 

The plain vanilla term insurance plans in market from long time, but they were failed to attract customers as mostly people doesn’t like the concept of not getting back the premium paid in case survival, agents are not interested to sell policies due to less earning potential etc reasons.

Then companies come up with various types of term insurance policies which will give some additional features like term plan with return of premiums, with additional rider benefit etc.

Let’s explore few of such policies in current market and find out what are the additional rider benefit they are offering besides life cover. This data is also covered from policybazaar site.

Term Plan

Entry Age (Min-Max)

Policy Term (Min-Max)

Accidental Death Benefits

Critical Illness Benefit

Waiver of Premium

Terminal Illness

ICICI Prudential iProtect Smart18 – 60 Years5 – 40 yearsPaidN/AFreeFree
HDFC Life click2Protect Plus18-65 years10 – 40 yearsPaidPaidN/AN/A
Max Life Online term Plan Plus18-60 years10 – 40 yearsPaidN/AIncludedN/A
Aegon Life iterm Plan18-65 years5 – 40 years (or upto 80 Years)PaidN/APaidFree
PNB MetLife Mera Term plan18-65 years5 – 40 yearsPaidPaidN/AN/A
Birla Sun Life Protect @Ease Income Lump Sum18-65 Years5-40 yearsPaidPaidN/AFree
Canara HSBC OBC iSelect Lumpsum18-70 Years5 – 40 yearsPaidN/AN/AFree
Edelweiss Tokio Life TotalSecure+18-65 years80 yearsPaidPaidPaidN/A
Future Generali Flexi Online term18-55 years10 – 65 years (non-smoker)- 75 years(smoker)PaidN/AN/AN/A
Aviva iLife Plan18- 55 years10 – 35 yearsN/AN/AN/AN/A
TATA AIA iraksha Supreme18 – 70 years10 – 40 yearsN/AN/AN/AN/A
IDBI Federal iSurance Flexi Lump Sum Plan18 – 60 Years10 – 62 yearsPaidFreeN/AN/A
Bajaj Allianz eTouch Lumpsum18 – 65 years10 – 40 yearsPaidPaidFreeN/A
SBI Life eShield Plan18 – 65 years5 – 30 yearsPaidN/AN/AN/A
LIC E-term Plan18 – 60 years10 – 35 yearsN/AN/AN/AN/A

**Note: The above plans require mandatory medical proofs. 

FAQs Related To Best Online Term Insurance Plans

Question: Is term life insurance a good idea?

Yes, indeed. It is the cheapest form of life insurance that ensures a high lump sum amount to secure your family’s future. If you are talking about insurance to secure your financial goals, then a pure term insurance is the best option.

Question: How much should I pay for term life insurance?

The amount will depend upon how much insurance coverage you wish to take. You can use a term insurance calculator to calculate the amount.

Question: What is a 20 year term life insurance?

As the name suggests, a 20 year term insurance plan provides a life cover for a period of twenty years. The other rules are similar to policies of different terms.

Question: Which is better term insurance or endowment plan?

Term plan provides only life cover, whereas endowment plan provides life cover plus maturity benefit. The insurance coverage is higher in term life. In case of death, both term life insurance and endowment plan promises to offer the assured amount to your family. If you need a high life insurance cover, then go for a term insurance plan. For investment purpose, other options life PPF, mutual fund, stocks (as per your risk taking abililities) are still better.

Question: What happens to term life insurance at the end of the term?

If a person survives the term, only a term life policy with a return of premium rider benefit returns the premiums (rules depend up on specific term plan). The returned money is considered to be a refund of premiums and hence is tax free. However, such type of term policy is not recommended. You may read this article to understand further.

Question: What are the advantages and disadvantages of term life insurance?

This is the simplest and cheapest life insurance plan which gives higher coverage for your premiums.
However, there are some disadvantages of term insurance policies. They provide coverage for a specific period of time. Benefit can be availed only if you die within the term.

Question: Which is better whole life or term life insurance?

Term life provides pure insurance protection for a specific time period. Whereas, a whole life insurance plan offers protection over the insured’s entire lifetime.

A whole life offers protection plus investment. However, term insurance plans are less expensive compared to whole life plans and offers higher insurance coverage.

An insurance is taken to fulfil the goals of your life. If you think your goals will be fulfilled within 20 years, then simply buy a 20 year term life insurance, but you think you need a coverage for your entire lifetime then you may go for a whole life insurance. But I think the first option is valid in most cases.

Question: Which is the best online term plan considering IRDA claim settlement ratio?

As per the claim settlement ratio shared above in the table, LIC E Term is the best term plan.

Question: What is the best online term insurance plan with return of premium/ maturity benefit?

You can check out the Max Life Premium Return Protection Plan, a premium return policy with comprehensive life cover.

Question: Which is the lowest premium term insurance plan in India?

This could be tricky to answer as the premium of a low cost term life insurance will always depend up on various factors like whether you are a smoker or non-smoker, how much sum assured you need and your age. You can use any term insurance calculator online and compare term plans quotes to find out a good yet cheap term life insurance in current time.

Question: Which increasing term insurance plan is best to buy?

You can check out SBI Life’s Smart Shield plan where a 5% increase each year can be possible and also Birla Sun Life’s Protector Plus plan for this kind of term plans.

Question: Which is the best online term insurance plan with income protection?

HDFC Life Click 2 Protect Plus is a good option with various income option facility.

Question: Which term life insurance plan with accident rider should I choose?

You need to ask your insurer whether there is an additional rider facility or not. All top companies like HDFC Life, ICICI Prudential, LIC should have such facilities to add riders. There are similar questions I have found are like best term insurance with permanent disability rider or with critical illness rider etc.

Latest update :  As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 years old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any misrepresentation or misstatement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.

But if you ask me how to decide which term life insurance plan to buy, then I will say that just go for a pure term plan with any additional feature. Because the more feature you will add, the premium amount will increase for the same sum assured value or other way. Just make the purpose of term insurance clean and go for a pure term life policy with only death benefit, even if you don’t get your paid premiums better.

So, this is the list of best online term insurance plans in India 2018. Are you planning to buy term life insurance online? Do you think a pure term plan is not a good option? I would love to hear about your reasons regarding this. Please write a simple comment below to share your feedback or query.

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