Term Insurance 326 views February 8, 2021

Want to secure your family’s financial future in your absence? Put your money in a term insurance plan that is best suited to serve this purpose. So in case you die, this term insurance plan ensures that your family’s financial needs are met without any problem. But choosing from a myriad of term insurance plans in the market can become tough for you. The term plan that you choose should come with an adequate sum assured amount that can help manage your family’s future financial expenses in your absence. At the same time, the plan should come at an attractive price i.e. premium. Understanding these concerns, we have come with a list of top 5 term insurance plans that serve the purpose stated above. Just go through these plans carefully and select the one that you feel is the best for your family members.

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Max Life Online Term Plan Plus

It’s a non-linked non-participating individual pure risk premium life insurance plan from MAX LIFE. Under Max Life Online Term Plan Plus, you can customize your death benefit as the company provides you three different death benefit options. You can pay premiums for Max Life Online Term Plan Plus either up to the age of 60 years or for up to 10 years as per your preference. Let’s check out the top benefits of this term plan –

Death Benefit 

If you die during the policy term, your nominee/beneficiary will receive the highest of the following –

  1. 10X the annualized premium + underwriting extra premium, if any.
  2. 105% of the total paid premium + underwriting extra premium + loading for modal premium
  3. The minimum guaranteed sum assured on maturity
  4. Absolute amount assured to be paid in case of death

See how you’ll receive the death benefit payout as per your chosen option –

  1. Option 1 Sum Assured – 100% of the policy sum assured will be payable in lump sum immediately as on the date of death of the life assured
  2. Option 2 Sum Assured + Level Monthly Income – Your 100% of the policy sum assured will be payable in a lump sum and 0.4% of the policy sum assured in monthly installments up to 10 years.
  3. Option 3 Sum Assured + Increasing Monthly Income – In this option, the nominee will receive 100% of the sum assured in a lump sum plus monthly installments for up to 10 years. But the interest rate on monthly installment payouts will increase from 0.40% to 10.00% each year.

Accelerated Critical Illness Payout

You can choose your sum assured for critical illness cover from INR 5 lakh to INR 50 lakh, but it shouldn’t exceed 50% of the sum assured. The critical illness sum assured shall be payable to you on the first occurrence of any of the critical illnesses as specified in the policy bond.

HDFC Life Click 2 Protect Plus

With this top 5 term insurance plan, you can get life cover up to the age of 85 years. And with its flexible options, you can customize HDFC Life Click 2 Protect Plus at your own convenience. The plan options are as follows for this HDFC Life insurance plan –

  1. Life – Death benefit shall be payable to the nominee in case of death of the insured
  2. Extra Life – In case of accidental death of the life assured, an additional sum assured shall be payable
  3. Income – The nominee will receive 10% of the death benefit in lump sum while the rest will come in monthly installments for up to 15 years.
  4. Income Plus – In this option, your nominee will get 100% of the sum assured in a lump sum in case of your death. And your nominee will also receive a monthly installment of 0.5% of the sum assured up to 10 years. You can make the death benefit income either level to 0.5% or on an increasing level at a simple rate of 10.00% per annum.

Death Benefit

In case of your death, your nominee will receive a higher of 125% of the single premium or sum assured if your premium payment frequency is single pay. Otherwise, the highest of the following will be payable –

  1. 10X the annualized premium
  2. 105% of the total premium paid as on the date of death
  3. Sum assured

ICICI Pru iProtect Smart Plan

ICICI Prudential Life provides this non-linked non-participating pure risk premium term insurance plan to you, so your family’s financial future will be secured. You can choose your coverage under ICICI Pru iProtect Smart Plan from the following options –

  1. Life – Death benefit will be payable to your nominee/legal heir either in case of death or terminal illness, whichever is earlier. And if you suffer from permanent disability due to an accident, your future premiums for the policy will be waived.
  2. Life plus – Along with the benefits of the Life option, under Life plus, your nominee/legal heir will get an additional death benefit in case of your accidental death.
  3. Life & Health – You will get Life option benefits plus critical illness cover for up to 34 illnesses.
  4. All in One – In the All in One option, you will get life option benefits, accidental death benefit and critical illness cover

Death Benefit

You can get your death payout using the following option –

  1. Lump sum – Immediate payment of the death benefit in case of death/terminal illness
  2. Income – 10% of the death benefit will be payable in monthly installments for up to 10 years at a rate of 0.8333% of the total death benefit.
  3. Increasing Income – 10% of the death benefit will be payable in monthly installments for up to 10 years. But here, the income will increase by 10% at a simple interest rate.

Note – The nominee/legal heir can convert the monthly installment into lump sum anytime during the payout period. But the lumpsum amount will be calculated at a discount rate of 4.00% per annum.

Tata AIA Life Insurance Maha Raksha Supreme

Among the top 5 term insurance plans, TATA AIA Life Insurance Maha Raksha Supreme is such a non-linked, non-participating, individual plan that will give you an option to enhance your coverage as per the life stage. Under this plan, your nominee will receive any of the following, whichever is the highest, in the event of your death.

  1. Basic sum assured
  2. 10X the annualized premium
  3. 105% of the total paid premiums

In the case of single pay, your death benefit will be higher of the basic sum assured or 125% of single premiums.

Other than the death benefit, you’ll get the following benefits under the TATA AIA Life Insurance Maha Raksha Supreme plan.

  1. Payout accelerator benefit – This will be payable to you if your life expectancy is not more than 6 months due to terminal illness. And the payout accelerator benefit will be 50% of the basic sum assured.
  2. Life stage plus – With this option, you can enhance your policy sum assured at different life stages such as marriage, childbirth and legal adoption.

Note – You can enhance your base sum assured by 10%-50%, subject to a maximum of INR 50 lakh.

Bharti AXA Life POS Saral Jeevan Bima Yojana

Lastly, we come to the Bharti AXA Life POS Saral Jeevan Bima Yojana plan in the list of top 5 term insurance plans. This plan provides financial back-up to your family in case of an unfortunate event. The best part about it is that you don’t have to go through a medical examination for pre-acceptance of the plan. The nominee will be entitled to the highest of the following, in case of death of the life assured, during the policy term.

  1. 11X the annualized premium
  2. 105% of all the premiums paid till the date of death
  3. Absolute amount assured to be paid on death
  4. Sum assured on maturity

In case the death arises due to an accident, 2X the above-mentioned death benefit shall be payable to your nominee.

Note – If the life assured dies during a waiting period of 90 days, only 100% of the premiums paid till the date of death will be payable. Also, if the death of the life assured happens after the expiry of the policy term but within 120 days after the date of the accident (if it happens during the policy term), there will be no alteration in the death benefit.

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