We answered a reader question about which term plan is better, LIC or Private Insurance companies where we say that going for the cheapest is the best option.
Today, Insurance sector offers you wide range of varieties to cater your insurance needs. Term insurance plans can be chosen on the basis of your need, riders that the policy offers, affordability, claim settlement ratio and many more. In this article, our aim is to list out some of the best term insurance plans based on buyer convenience, affordability, benefits offered and also on companies claim settlement ratio.
List of Top 10 Term Insurance Plans
|Name||Entry Age||Maximum Maturity age||Policy Term||Sum Assured||Yearly Premium(in Rs.)||Claim Settlement Ratio|
|LIC e-term Insurance Plan||18 years||60 years||75 years||10-35 years||25 lac for aggregate investors
50 lac for non-smokers
|Max Life Online Term Plan Plus||18 years||60 years||75 years||10-40 years||25 lac||100 Cr||4000||96.03%|
|ICICI Pru iProtect Smart||18 years||65 years||75 years||5-40 years||Subjected to minimum premium||No Limit||5107||93.80%|
|HDFC Life Click 2 Protect Plus||18 years||65 years||75 years||10-40 years||50 lac||No Limit||5855||90.50%|
|SBI Life eshield||18 years||65 years||70 years||5-30 years||20 lac||No Limit||7389||89.43%|
|Bajaj Allianz isecure||18 years||60 years||70 years||10-30 years||25 lac||No Limit||6785||91.85%|
|Reliance Online Term||18 years||55 years||75 years||10-35 years||25 lac||No Limit||3500||83.84%|
|Aviva Life i-Life||18 years||55 years||70 years||10-35 years||25 lac||No Limit||4745||83.07%|
|Kotak preferred eTerm||18 years||65 years||75 years||10-40 years||25 lac||No Limit||4974||90.73%|
|BSLI Protect @ ease||18 years||55 years||80 years||5-30 years||50 lac||500 Cr||5922||95.30%|
Please note: Premium calculation is made for a person of 30 years of age with a policy term of 30 years for sum assured of Rs. 50 lakh. Premium calculations are for the aggregate category and actual premium may vary basis the underwriting rules of companies and additional riders opted along with the life cover.
Key Points on Listed Plans
- LIC e-term insurance plan: Unlike other products of LIC E-term plan offers competitive price and also its online mode makes it more convenient and affordable for buyers. It’s a pure term plan which provides financial securities to family in case of unfortunate demise of insured during the policy term. It only offers yearly mode of premium payment. Brand value, government backing and the highest claim settlement ratio makes it a worth buy.
- Max Life Online Term Plan Plus: Plan offers maximum coverage at minimum rate of premium. Policy gives an option of customizing your plan and also offers additional riders such as disability rider and accidental covers. Premium payment modes are flexible with an option of yearly, half yearly, quarterly and monthly. Relatively cheaper rate of premium and additional riders along with the highest claim settlement ratio in private sector makes it undoubtedly a best plan.
- ICICI Pru iProtect Smart:It is a comprehensive term plan that includes all the attributes a term plan must have. It provides terminal illness and disability cover along with life cover. Almost 34 types of critical illnesses are covered under critical illness rider. It covers female organ cancers such as breast cancer and cervical cancer and this feature makes it unique.
- HDFC Life Click 2 Protect Plus:It’s a comprehensive protection plan at an affordable price with choice of plan options. Accidental death benefit can be availed by opting for extra life option. Policy aims to provide monthly income to insured’s family by offering a plan choice of income and income plus options. Life stage protection option in the plan allows you to avail increased sum assured on the occurrence of key events in life without any medical test.
- SBI Life e-shield:It’s a pure risk cover plan that comes with four variants to choose the cover. It starts from basic to increasing cover with accidental death benefit rider.
- Bajaj Allianz isecure: This plan allows you to add your spouse into the existing policy. Here, policy holder can opt for single or joint life insurance coverage.
- Reliance Online Term Plan:This particular policy offers pure protection and also accidental death benefit as a rider at lower rate of premium. They also offer discount to female policy holders.
- Aviva Life’s i-Life Term Plan: It offers you life protection at a nominal cost. There is an additional rebate of 5% for female applicants on the tabular premium rates. They come with premium payment mode of yearly and half yearly basis.
- Kotak Life’s Preferred e-Term Plan:Plan allows you to choose between immediate and recurring payout option at an economical price. It offers inbuilt waiver of basic premiums on disability.
- Birla Sun Life Insurance Protect@ EasePlan: plan offers you a choice of four different riders like accidental death and disability rider, critical illness rider, hospital care rider and surgical care rider at affordable cost. The plan offers you two types of options constant and increasing term assurance.
It is an advice to investors to choose the term plans considering companies past performance and claim settlement ratio along with the affordability and convenience factor. Online term insurance plans have added advantage as premiums are cheaper with no intermediary cost involved. Online plans also offer buying convenience as simpler details allow investor to make a quick choice. Apart from these factors, there are other elements like age, income and healthy life style plays vital role which are considered by insurer while deciding the rate and cover. At a general level, the list provided is good enough to make a wise choice.
More importantly, have you taken action on getting an insurance cover instead of just analyzing the options?