Best Term Insurance Plans in India 2024

Term insurance is a crucial component of financial planning, providing financial security and protection to your loved ones during your untimely demise. With numerous insurance providers offering term insurance plans in India, choosing the best one for your needs can be overwhelming. This comprehensive guide will explore the top-term insurance plans available in India, considering coverage, affordability, claim settlement ratio, and customer satisfaction.

What is Term Insurance?

Term insurance is a type of life insurance that provides coverage for a specified period, known as the policy term. It offers a pure life cover without any investment or savings component. In the event of the policyholder's demise during the policy term, the insurance company pays the nominee/beneficiary a death benefit. Term insurance plans are known for their affordability and high coverage amounts, making them ideal for individuals seeking comprehensive financial protection for their families.

Benefits of Buying Term Insurance Plan in India

A term insurance plan is crucial for an individual to ensure comprehensive financial security for their family. Here are some of the key benefits of buying a term insurance plan in India:

Financial Protection for Your Family: Best term insurance in India ensures that your family has the financial resources they need to maintain their standard of living if you die prematurely.

Peace of mind: Knowing that your family is financially secure can give you peace of mind and allow you to focus on the things that matter most.

Whole Life Cover: The best term insurance company in India offers various term plans that provide whole life cover to the insured, ensuring your family remains secure in the long term. 

Coverage at Affordable Premium: The best term insurance in India provides high coverage against life risk at a very affordable price. Also, the rates are very affordable, especially for young and healthy individuals.

Tax benefits: Premiums paid for term insurance are eligible for tax deductions under section 80C of the Income Tax Act, 1961.

Optional riders: You can add riders to your term insurance plan for additional benefits, such as critical illness cover, accidental death benefit, and waiver of premium. 

Return of Premium: Some of the best term insurance offers a return of premium benefit. Under this option, the policyholder receives the full premium paid back throughout the policy term. 

Online/ Offline: The best term insurance plans are available to purchase online and offline. However, buying term insurance online can bring special deals and offers.

Factors to Consider When Choosing Term Insurance Plans

When selecting the best term insurance plan in India, it's essential to consider several factors to ensure it aligns with your specific requirements. Here are some key factors to consider:

• Coverage Amount: Evaluate the coverage amount offered by the plan. It should be sufficient to meet your family's financial needs in your absence, including liabilities, future expenses, and income replacement.
• Policy Term: Choose a policy term that provides coverage until your financial obligations, such as loans and children's education, are fulfilled. Longer policy terms ensure extended protection.
• Premiums: Compare the premium rates of different plans to find an affordable option. However, remember that the cheapest plan may not always be the best, as other factors like claim settlement ratio and additional benefits are equally important.
• Riders and Additional Benefits: Check for riders and additional benefits the plan offers, such as critical illness cover, accidental death benefit, waiver of premium, and disability cover. These riders can enhance the coverage and provide added protection.
• Claim Settlement Ratio: Consider the claim settlement ratio of the insurance company. A higher ratio indicates a higher probability of your nominee receiving the claim amount without hassles.
• Customer Service and Reviews: Research the insurance company's reputation for customer service, responsiveness, and promptness in claim settlement. Read customer reviews and testimonials to gauge the overall customer experience.

How do you select the best term insurance plan?

In this section, we will get to know how anyone can select the best term insurance plans based on various factors:

• Coverage Amount: Compare the maximum coverage amount each plan offers to ensure it meets your financial needs.
• Policy Term: Evaluate the policy term options provided by each plan and choose the one that aligns with your long-term goals.
• Premiums: Compare the premium rates of different plans and consider your budget while selecting the most affordable option.
• Riders and Additional Benefits: Assess the riders and additional benefits each plan offers and choose the ones that provide the necessary additional coverage.
• Claim Settlement Ratio: Consider the claim settlement ratio of the insurance companies to ensure a higher probability of smooth claim settlements.
• Customer Service and Reviews: Read customer reviews and testimonials to gauge the overall customer experience and satisfaction with each insurance provider.

Benefits of Term Insurance

Term insurance offers many benefits, making it a crucial element of a comprehensive financial plan. Here are some of the key benefits of having a term insurance plan:

• Financial protection for your family: Term insurance ensures that your family has the financial resources they need to maintain their standard of living if you die prematurely.
• Peace of mind: Knowing that your family is financially secure can give you peace of mind and allow you to focus on the things that matter most.
• Affordable: Term insurance is relatively affordable, especially for young and healthy individuals.
• Tax benefits: Premiums paid for term insurance are eligible for tax deductions under section 80C of the Income Tax Act, 1961.
• Optional riders: You can add riders to your term insurance plan for additional benefits, such as critical illness cover, accidental death benefit, and waiver of premium.

Best Term Insurance Plans in India 2024

We have conducted thorough research to find the top 10 best term insurance plans in India. Check the list of the top 10 best term insurance plans in India in a tabular form:

*The Claim Settlement Ratio data has been fetched from IRDAI Annual Report 21-22

Disclaimer: We, D2C Insurance Broking Private Limited (“RenewBuy”), do not endorse any specific insurance company or insurance product offered by any life insurer. This list just illustrates the plan offered by different life insurance companies.

Term Insurance Premium

Consider the coverage that would suit both your personal obligations and financial goals when purchasing a term plan. The term insurance premium you will pay for the selected level of coverage is determined based on your:

Eligibility Criteria to Buy Term Insurance Plan

Having a term insurance plan is the best way to secure your family's future, but you must be eligible to buy one. We have listed down the eligibility criteria for term insurance in India.

How to Buy the Best Term Insurance Plan in India?

You can buy a term insurance plan from the life insurance company’s official website and “RenewBuy.com”. Below are both the buying processes of term insurance plans:

Buy from the official website of the insurance company

• Visit the insurance company’s official website and click the “Term Insurance” tab.
• Select the desired plan.
• Fill in all the required information, such as name, mobile number, annual income, occupation, etc.
• Click on the “Buy Now” button.
• Make payment.
• The insurance company will send the policy documents to your email address.

Buy from “RenewBuy.com”

• Visit the official website of RenewBuy.
• Click on the “Life Insurance” tab.
• Fill out the form that shows on the next page.
• Compare term insurance plans and select your desired plan.
• Click on the “Buy Now” button.
• A pop-up will show you the plan details and the additional rider information.
• Click on the “Proceed to Buy” button.
• Make an online payment, and the policy documents will be sent to your registered email address.

Documentation Required to Purchase the Best Term Insurance Policy in India

Some of the essential documents needed to buy a term insurance policy are listed below:

• Identity Proof
• Age Proof
• Address Proof
• Proof of Income
• Medical Reports
• Recent Photographs

Riders Available with Best Term Insurance Plan in India

Various term insurance in India offers rider benefit to enhance the benefits under the base policy at a very reasonable price. Here’s the list of riders that a policyholder can add to customize the best term plan in India per their suitability:

Waiver of Premium: In case of loss of income/ job under any circumstance, the remaining premiums are waived off.

Critical Illness Rider: If any of the listed critical illnesses are diagnosed, the life assured receive the applicable sum assured to support the treatment expenses. 

Hospicare Benefit: Financial support is provided to take care of the hospital bills and medical costs. 

Accidental Death Benefit Rider: In case of accidental death, the nominee receive an assured sum in addition to the base policy sum assured. 

Accidental Total and Permanent Disability Rider: In case of accidental permanent disability arising due to an accident, a part of sum assured is released.

Terminal Illness Benefit: A portion of sum assured is provided to the life assured in case of diagnosis of a terminal illness.

* Note: The availability of the riders under the best termin plan in India can differ per their terms and conditions. We suggest you to go through the plan before purchase and make an informed decision. 

 

How Do You Raise A Claim Under Your Term Insurance Plan?

The family members, beneficiaries, or nominees must notify the insurance company as soon as possible in the event of the policyholder's untimely death. Delays will only make the claim settlement process more challenging.

• Fill out and Submit the claim form.
• Attach all the relevant documents.
• Once the request for claim settlement is received at the insurer's branch or Claims cell, the claim will be properly registered.
• The life insurance company will verify the documents
• The reward will be paid if everything is in order and the insurer approves your claim.

Term Insurance Plan Renewal

You must pay the premium payments to your insurance provider per the premium payment schedule. Life insurance companies typically give policy buyers a 15 or 30-day grace period to pay the premium without incurring additional interest fees. However, your policy will expire unless the due premium is paid before the grace period expires.

You must pay all outstanding premiums beginning on the date of the first unpaid premium and the applicable interest rate to reinstate a lapsed policy. Additionally, if your policy has been inactive for some time, your insurer may need you to have a medical exam to demonstrate your insurability.

Best Term Insurance Plans in India FAQs

1. What is the difference between Term Insurance and Life Insurance?

Ans. Term insurance provides death benefits only during the policy term. In contrast, life insurance provides either a death benefit or a maturity benefit (if the policyholder survives the policy term).

2. What are the different types of Term Insurance plans in India?

Ans. Below mentioned is the list of term insurance plans available in India:

• Pure Term Insurance: Provides only death benefit.
• Return of Premium Term Insurance: Premiums are returned to the policyholder upon maturity if no claim is made.
• Term Insurance with Riders: Optional riders like critical illness cover, accidental death benefit, and waiver of premium can be added for enhanced protection.

3. What is the claim settlement ratio of a Term Insurance plan?

Ans. It is the percentage of claims settled by the insurance company compared to the total claims received. A higher claim settlement ratio indicates better claim processing efficiency.

4. What are the tax benefits of Term Insurance?

Ans. Premiums paid towards Term Insurance are eligible for tax deductions under section 80C of the Income Tax Act, 1961. The death benefit received by the beneficiaries is also tax-free.

5. How much Term Insurance coverage do I need?

Ans. The ideal sum assured depends on your individual circumstances and financial goals. Consider your income, family needs, debts, and future aspirations to determine the appropriate coverage amount.

6. How does a term plan in India work?

Ans The best term insurance plan works as the financial safeguard for you and your loved ones for a specific time period against any life risk. When the regular premiums are paid under the policy, on untimely death of the life assured during the policy term, nominee receives the sum assured. 

      7. How can we do term insurance comparison?

While comparing the best term insurance in India, you can consider the following key measures: 

• Determine the coverage amount you need and the duration (term) for which you require protection.
• Do your research about the best term insurance company in India, considering their claim settlement ratio, reputation, financial stability, etc.
• Compare and evaluate the coverage options offered by different term insurance company in India.
• Compare the premium rates charged by different insurers for the coverage amount and term at your financial suitability.
• Evaluate the features and benefits of the best term insurance plan.
• Consider the availability of riders or add-on covers offered with the term insurance plans.
• Pay attention to the exclusions and limitations mentioned in the policy documents.
• Evaluate the quality of customer service offered by the best term insurance company in India. 

    8. What is the age limit to buy the best term insurance plan in India?

The age limit for buying the best term insurance plan in India is between 18 to 65 years.

    9. Which is the best term insurance plan in India?

The best term insurance plan in India can be the one providing comprehensive coverage to the family of the life assured when the time comes without any delay.