Best Term Insurance Plans in India

The term insurance plan is a type of life insurance that provides coverage for a definite period of time and if the policyholder dies during the time period of the plan, then the beneficiary or nominee as stated in the document will get the full sum assured amount. Term plans are solely designed to protect your family needs when you are not around to take care of them. It provides a definite amount of coverage for a specific period of time. Now, by buying a term insurance plan customer would be able to get good tax benefits.

Best Term Insurance Plans In India

The main reason for taking life insurance is to provide financial cover to your loved ones,when you are no longer around to take care of them. In that regard, the policy must offer sufficient financial cover so that the family achieve their financial goals or at-least maintain their lifestyle. There are many insurance companies that are offering term plans. But below are the top insurers when it comes to best term plan. LIC, HDFC and ICICI perform the best in this regard.

It is advisable to take decision after checking a few factors like past performance and claim ratio of the company as well. Apart from the age, health and income of the individual are of much importance .

Reason of low premium in Term insurance plan

The premiums for term insurance plans are low as compared to other life insurance plans. This is because, in a term plan, there is no investment element as all the funds go for covering the risk and providing protection. Hence, if the insured dies during the policy term period, then the entire sum assured amount would be handed over to the nominee. You will not get any survival or maturity benefits if the plan expires. However, there are some plans which are offering return payments to the insured if he/she survives.


Important factors of term insurance policy

For choosing the best term insurance policy, you should keep in mind the following factors:

  • Reputation of the insurance company
  • Your requirement
  • Claim settlement ratio
  • Inflation in paying premium and coverage benefits as well
  • Comparing plans of different insurer
  • Buy online as compared to offline
  • Don’t search for a low premium term insurance plan instead, check features properly

Things You Should Know

The difference in premium amounts

The premium of  a term plan varies from one insurer to another . If the tenure of your term insurance plans increases, then the premium for the same will also increase.

What is the eligibility criteria for purchasing the best term insurance policy?

There is an eligibility criterion for buying a term insurance plan. However, it varies according to the insurance companies. The minimum age for buying the plan is 18 years and the maximum is 65 years.

Can Policyholder Surrender The Term Insurance Policy?

Yes, a policyholder can surrender the term insurance policy, meaning exiting from a policy before maturity.  Due to this, a surrender charge would be deducted that varies from plan to plan. No insurer can levy the surrender charges if it is done after five years.

Risks Related To Surrendering  Insurance Plan

You can terminate the insurance plan if you feel that is it not sufficient or as per your requirement. If you surrender the plan early i.e. within three years from its commencement, than the surrender value would be at least 30% of the premiums paid.

Difference Between Participating And Non-Participating Plans

With a participating plan, a policyholder would be able to get benefits of company’s profits where the investment returns depend upon the insurer. Whereas in a non-participating plan, the policyholder can’t  participate in the profits of the company and hence is not paid out bonuses or share in profit.