Term Insurance 3769 views April 25, 2020

You strive to provide comfort, happiness and security to your family and you would want your family’s future to be secure at all times even when you are not there. When it comes to securing your family’s future, nothing is better than term life insurance in India. Term life insurance gives you the flexibility to design your safety net so that your family faces no financial worries in your absence. Term life insurance is typically the least expensive and affordable way to purchase a substantial death benefit when compared to any other form of financial tool. It is the best choice for most individuals as it leaves money free for other investments.

Term Insurance

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There is no saving component in term insurance as its purpose is to give the benefit to the individuals against the loss of life, hence considered a very basic form of life insurance. In this plan, the policyholder has to pay a very nominal premium charge and can get an adequate amount of life cover in lieu of it. The premiums are based on a person’s health, age and life expectancy as set by the insurer.

Term Life Insurance

Not everyone is aware of the concept of Term insurance. It is a pure life insurance policy that guarantees payment of a stated death during a specified term that may extend to 10, 20, 30 years or even more depending on the extent of the cover the policyholder is looking for. The sum insured or death benefit is predetermined by the insurer and the same is mentioned in the policy contract.

Term insurance is by far the simplest kind of life insurance with reasonable price and very straightforward in nature. It enables you to protect and cover your loved ones when you are not there. Term insurance is the top scorer among all other fiscal tools available as it is hassle-free, much cheaper, and greater life cover at low premium rates.

List of Term Life Insurance Plans in India for Investment

We have listed down the most popular life insurance plans to buy according to your financial needs and used the following methodology to filter out the plans that –

  1. Offer high predictability of the sum insured
  2. Are stable
  3. have highest settlement ratio
  4. And finally, are reasonably priced.

Aegon Life iTerm Insurance Plan

Aegon life was the first company to offer online term insurance in India (Aegon Religare). Aegon’s online term insurance plans are also the most affordable plans available in the market.

  1. CSR – 96.45%
  2. Premium Amount – INR 7970 (lowest amongst all)
  3. Claims Pending for more than 3 months – Nil

You can also choose the option of whether you want the claimed amount in a lump sum or a staggered payment. In staggered payment, the survivors get a certain percentage of the insured amount and the rest amount is paid on a monthly basis over the next 10-15 years wherein the nominee is not able to handle the lump sum in one payment.

This plan also offers you to increase the coverage on significant milestones of your life, like childbirth, marriage, etc.

All in all, Aegon provides a cost effective and easy to understand plans.

ICICI Prudential iProtect Smart Term Insurance Plan

ICICI ‘s Prudential iProtect Smart Term Plan is one of the Top selling plans in India. This plan offers you the option to enhance your coverage against Accidental death and critical illness, hence ensuring you a 360 degree coverage on your life.

It also provides you a unique feature under which you can claim the insured amount if there is a diagnosis for 34 critical illnesses as reported in the plan. One is not required to submit the hospital bills for 30 years in order to get this claim. The nominee can choose the option of getting the payments i.e; in lump sum or on a monthly basis.

  1. CSR – 98.58%
  2. Premium amount – INR 9363
  3. Claims Pending for more than 3 months – 3

You can also buy this policy under MWP (Married Women Property) Act, it ensures the money will go to your wife and children.

SBI Life eShield Term Insurance

SBI Life eShield Plan offers you a number of benefits at an affordable premium. This plan provides you the flexibility of choosing between two benefit structures.

  1. Level Cover Benefit – Under this structure the benefit remains the same throughout the policy term
  2. Increasing Cover Benefit – Under this structure, the sum insured automatically increases by a simple rate of 10% at the end of every 5th year of the policy.

It also offers the facility of availing second medical opinion if the policy is in force.

  1. CSR – 95.03%
  2. Premium amount – INR 10,950
  3. Claims Pending for more than 3 months – 5

HDFC Standard Life Click 2 Protect Term Insurance

This plan offers 4 types of options –

Life Option – It is the most simple cover wherein a nominee gets the claim after the death of the insured.

Extra Life Option – It comes with an extra benefit of accidental death cover.

Income Option – In this, the nominee will get the 10% of the amount as a lump sum on the death of the insured and the rest 90% will be paid in form of monthly payments over a period of 15 years.

Income Plus Option – In this 100% of the amount is paid on the death. In addition to this, the beneficiary will also get 0.5% of the sum assured as monthly income for a period of 10 years.

  1. CSR – 99.04%
  2. Premium amount – INR 11,678
  3. Claims Pending for more than 3 months – 9

This is the only plan that provides tax benefits under section 80C, 80 D, and 10D of the income Tax Act,1961.

Max Life Online Term Plan Plus

Max Life Online Term Plan Plus offers a secure financial future in the form of insurance. It offers 3 options under this plan –

Basic Life cover – This is a pure life insurance plan wherein the claimed amount is paid in lump sum on the death of the insured.

Basic Life Cover + Monthly Income – This plan facilitates you by providing the lump sum on the death of the insured plus the nominee will also get 0.4% of the sum assured on a monthly basis for next 10 years.

Basic Life Term Cover + Monthly Income – Under this plan, Max Life provides a fixed amount in lump sum to the nominee on the death of the insured.

Additionally, the nominee will get 0.4% of the sum assured in each month in the first year as a monthly income. Every year the monthly income will increase by 10% for the remaining payout period.

The monthly income benefit is over and above the sum assured.

  1. CSR – 98.74%
  2. Premium Amount – INR 12,272
  3. Claims Pending for more than 3 months – Nil

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