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Best Term Insurance Plans in 2022 in India

Best Term Insurance Plans in India - Top Term Plans to opt

Life insurance plans provide financial security for the family in case of the demise of the earning member. There are different types of life insurance policies. However, one among the famous is Term Insurance Plan. There is LIC and several other private insurance companies that offer term insurance plans in India. All these terms plans have their own pros and cons. If you are looking at some of the best term insurance plans in India, you are at right place. This article would provide some of the Best Term Insurance Plans to consider in 2022 in India, their features, positive factors and negative factors.

What is Term Insurance Plan?

Term Plan in simple terms is the life risk coverage provided by the insurance company to the individual.

The term insurance plan is an agreement between individual and an insurance company wherein life insured would agree to pay insurance premiums and in return insurance company would provide life risk coverage to the policyholder.  In case of unfortunate death of the life insured, the insurance company would pay life sum assured to the nominee. Since this is the simple life insurance plan, it has only death benefit.

Benefits of Term Insurance Plans

Now we understood what is the term plan, let us understand the benefits of the term insurance policies.

1) Provides life risk coverage: In case of unfortunate death of the policy holder, the nominee would get the sum assured and policy cease to exit.

2) Critical illness coverage:  Beyond simple term plans, insurance companies is now offering critical illness coverage too.

3) Accidental Death and disability:  Term plans also come with features where in case of demise of life insured due to accident or accident disability, the nominee would get sum assured.

4) Additional Riders:  Many insurance companies are now offering additional riders to the term insurance plan.  Depending on the features, policy holders can opt these riders.

5) Multiple payment options:  Gone are the days where insurance companies asked the policy holders to pay annual premiums for the entire term of the policy. These days insurance companies are providing multiple payment options.

One can pay regular premiums either monthly, quarterly, half yearly or yearly.

One can opt for limited premium payment option i.e. Pay for limited premium, but enjoy term insurance for the entire tenure of the policy.

Single premium option where one can pay at once and have term insurance for the entire policy tenure.

How to choose a good Term Insurance Plan?

Now we understood, term insurance plan briefly and its benefits, let see how to choose a good term insurance plan.

1) Basic Features: Choose a term plan that comes with all basic features.

2) Claim Settlement Ratio:  Insurance company would receive requests for the claims to be processed. However, they might not honor all the requests. They might reject some of them citing various reasons. Claim Settlement Ratio is the total claims honored by the insurance company over the total claims received. E.g. If x insurance company received 100 claims and they paid only 80 and rejected 20. The claim settlement ratio in this case is 80/100=80%. One should opt for a term insurance plan for an insurance company that has a high claim settlement ratio.  This parameter is just to ensure that in future your family should not suffer claim rejections.

3) Term plans with low premiums:  While you would have picked up a plan that has all good features and high claim settlement ratio, however ensure the term plan premium is reasonable. Why should you pay a higher premium when you can get a term policy with lower premium?

4) Company Customer Support:  This is difficult to judge, however reviews on some popular websites could come handy.

Best Term Insurance Plans in 2022 in India

Here is the list of Top term plans to buy in 2022 in India.

#1 – HDFC Life Click 2 Protect 3D Plus

#2 – Max Life Term Plan Plus

#3 – ICICI Pru iProtect Smart Term Plan

#4 – LIC Tech Term Insurance Plan

#5 – Aegon Life term Insurance Plan

Top Term Insurance Plans in India for 2022 – Details by the plan

Now we have the list of top term plans, let us deep dive into these plans with their features, claim settlement ratio etc.

#1 – HDFC Life Click 2 Protect 3D Plus

HDFC Life has launched a few insurance plans and the famous one is Click 2 Protect 3D Plus. This term insurance plan comes with several unique features.

Any individual in the age group of 18 years to 65 years can consider this plan.

Maximum maturity age in this plan is 85 years.

Term Plan Tenure is 5 years to 40 years.

The minimum basic sum assured is Rs 10,000 and with no limit on the maximum sum assured.

This term plan comes with various options:

  • Life Option
  • 3D Plus
  • Extra Life option
  • Income Option
  • Extra Life Income Option
  • Income Replacement Option
  • Lifelong Protection Option
  • 3D Life Long Protection
  • Return of premium option (RPO)

Under 3D Life and 3D Life long option, all future premiums would be waived off in case of diagnosis of critical illness.

Under all the above options, future premiums are waived-off in case of accidental total permanent disability.

Life Stage option helps policyholders to increase the term insurance coverage on certain key milestones and no medical check-up required.

Females and non-smokers have special premium rates.

Latest Claim Settlement Ratio of HDFC Life for FY2020 -21 (IRDA Report of Dec-2021) is 98.01%.

Considering various features and high claim settlement ratio, it is one of the best term insurance plan in India to consider in 2022.

#2 – Max Life Online Term Insurance Plus

Max Life insurance has an Online Term Plan and Online Term Plan Plus.  Let us see the key features of Term insurance plus.

Any individual in the age group of 18 years to 60 years can consider this plan.

Maximum maturity age in this plan is 85 years.

Term Plan Tenure is 10 years to 50 years.

The minimum basic sum assured is Rs 25 Lakhs and maximum sum assured is Rs 100 Crores.

This term plan comes with 3 variants:

  • Basic Life Cover
  • Basic Life Cover + Monthly Cover
  • Basic Life Cover + Monthly Cover + Increasing monthly income

This term plan comes with the regular premium payment option as well as a limited premium payment option. Under the regular premium payment option, one can pay premium either monthly, quarterly, half yearly or yearly. Under limited premium payment plan, one can pay a premium for a limited period, however, would have risk coverage for the entire policy tenure.

There are add-on benefits like accidental death dismemberment, premium waiver benefit and critical illness coverage.

Females and non-smokers have special premium rates.

Latest Claim Settlement Ratio of Max Life for FY2020 -21 (IRDA Report of Dec-2021) is 99.35%.

Considering nice features and high claim settlement ratio, it is one of the best term insurance plan in India to consider in 2022.

#3 – ICICI iProtect Smart Term Plan

ICICI Pru Life too has a few term insurance plans. One among them is iProtect Smart Term Plan Let us see the key features of this term policy.

Any individual in the age group of 18 years to 65 years can consider this plan.

Maximum maturity age in this plan is 99 years.

Term Plan Tenure is 5 years to 81 years. One can take at 18 years of age for a tenure of 81 years i.e. till 99 years of age.

Minimum sum assured would be based on minimum premium of Rs 2,400 per annum. There is no limit on the maximum sum assured.

This term plan comes with 4 different options

  • Life
  • Life Plus
  • Life and Health
  • All in One

There is an optional rider where the sum assured would be paid in case of diagnosis of 34 critical illnesses.

Life Coverage for terminal illnesses

Accidental Death Benefit Rider (optional) is available.

Latest Claim Settlement Ratio of ICICI Pru Life for FY2020 -21 (IRDA Report of Dec-2021) is 97.9%.

Considering key features available in the plan and high claim settlement ratio, it is one of the top term insurance plan for 2022.

#4 – LIC Tech Term Insurance Plan

LIC has been trusted by millions of investors. LIC has come up with few term insurance plans. LIC Tech Term Insurance Plan is a unique plan among them.

Any individual in the age group of 18 years to 65 years can consider this plan.

Maximum maturity age in this plan is 80 years.

Policy tenure is 10 to 40 year period.

Minimum Sum Assured is Rs 50 Lakhs

Maximum Sum Assured – No Limit

Optional Accidental Death Benefit Rider is available, however, comes with additional premium.

Special discounted premium rates for nonsmokers.

One can opt for a single premium or regular premium payment plans.

Latest Claim Settlement Ratio of LIC for FY2020 -21 (IRDA Report of Dec-2021) is 96.7%.

Considering good features and high claim settlement ratio, it is one of the best term insurance plan to buy in 2022.

#5 – Aegon iTerm Insurance Plan

Aegon Life term insurance plan comes with low premium. Here are the key features of this iTerm plan

Any individual in the age group of 18 years to 65 years can consider this plan.

Maximum maturity age in this plan is 75 years.

Policy tenure is 10 to 40 year period.

Minimum Sum Assured is Rs 10 Lakhs

Maximum Sum Assured – No Limit

Accidental Death Benefit Rider is part of the plan.

Special discounted premium rates for non-smokers.

This plan comes with 2 death benefit options:

  • Immediate Lump sum
  • 50% of lump sum would be paid and 3% of the sum assured would be paid per month for next 5 years.

Latest Claim Settlement Ratio of Aegon Life for FY2020 -21 (IRDA Report of Dec-2021) is 99.25%.

Considering its simplicity and high claim settlement ratio, it is one of the top term plan in 2022.

Suresh KP

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