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Top 5 Term Insurance Policies in India

Top Term Insurance Policies in India

There are over 15 life insurance companies in India that are offering term insurance policies. Basic term insurance plans provide life risk coverage. Life insurance companies are offering new age term policies that come with additional features and riders to attract customers. Considering a good term insurance policy based on the need is key in the financial planning. In this article we would list Top 5 Term Insurance Policies in India, eligibility criteria, features/benefits and exclusions.

What is Term Insurance Policy?

Term insurance plan provide life risk coverage to the life insured. In case of unfortunate death of life insured, sum assured is paid to the nominee or family members. Such term policies do not offer maturity benefits or have survival benefits. Since this is simple life insurance policy, it comes with low premiums, but provide high sum risk coverage. Hence these have become famous in India.

Top 5 Term Insurance Policies in India

Here is the list of Top 5 Term Insurance Plans in India, features, eligibility and exclusions.

#1 – LIC Tech Term

Life insurance corporation of India offers 2 term insurance policies (Offline and Online). Out of this, LIC Tech Term plan is famous online term insurance policy.

Eligibility to take LIC Tech Term Policy

Individuals in the age group of 18 years to 65 years are eligible to take this plan. Maximum age of maturity would be 80 years.

Features of LIC Tech Term

  • It is a non-linked and non-participating simple risk coverage plan.
  • LIC Tech Term Policy comes with two benefit options i) Level Sum Assured and ii) Increasing Sum Assured.
  • Minimum sum assured is Rs 50 Lacs with no limit on maximum sum assured.
  • Policy can be taken for 10 to 40 years tenure.
  • This term policy comes with flexible premium payment options i.e. Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • Special premium rates for non-smokers and women.
  • Offers rebate on premiums for high sum assured.
  • Offers optional riders which comes with additional premium
  • Latest claim settlement ratio of LIC is 98.62%.

Exclusions in LIC Tech Term Plan

Death benefit is not paid in case of the following cases:

  • In case of suicide within 12 months
  • Participant in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

LIC is the trusted brand, hence LIC Tech Term is considered as one of the Top Term Insurance Policies in India.

#2 – HDFC Click 2 Protect Life

HDFC Life Insurance have couple of term insurance policies. It has recently come up with updated version of term policy named HDFC Click 2 Protect Life.

Eligibility to take HDFC Click 2 Protect Life

Individuals in the age group of 18 years to 65 years are eligible to take this plan. However, age of entry is restricted to 50 years for specific options in this plan. Maximum age of maturity would be 85 years.

Features of HDFC Click 2 Protect Life

  • It is a non-linked and non-participating simple risk coverage policy.
  • HDFC Click 2 Protect Life Policy comes with 3 options i) Life protect ii) Life and Critical Illness rebalance and iii) Income Plus
  • Minimum sum assured is Rs 20 Lacs with no limit on maximum sum assured.
  • Policy can be taken for 10 to 30 years tenure.
  • This term policy comes with flexible premium payment options i.e. Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • Special premium rates for non-smokers.
  • Latest claim settlement ratio of HDFC Life is 98.01%.

Exclusions in HDFC Click 2 Protect Life

Death benefit is not paid in case of the following cases:

  • In case of suicide within 12 months
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

HDFC Life Insurance has consistent claim ratio of over 95% in the last 5 years. Owing to unique features and high claim ratio, HDC Click 2 Protect Life is considered as one of the Top and Best Term Insurance Plans in India.

#3 – Aegon Life iTerm Plan

Aegon Life offers “iTerm Plan” which is comprehensive term insurance policy.

Eligibility to take Aegon Life iTerm Plan

Individuals in the age group of 18 years to 65 years are eligible to take this plan. Maximum age of maturity would be 100 years.

Features of Aegon Life iTerm Plan

  • It is a non-linked and non-participating simple risk coverage policy.
  • Aegon Life iTerm Policy comes with 3 options i) Life protect ii) Protect Plus and iii) Dual Protect
  • Minimum sum assured is Rs 25 Lacs with no limit on maximum sum assured.
  • Policy can be taken for 5 to 20 years tenure.
  • Premiums can be paid monthly, quarterly or half yearly.
  • Low Premium for female individuals and non-smokers.
  • Latest claim settlement ratio of Aegon Life is 99.25%.

Exclusions in Aegon Life iTerm Plan

Death benefit is not paid in case of the following cases:

  • In case of suicide within 12 months
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

Aegon Life has high claim ratio in the last 5 years and comes with low premiums, hence Aegon Life iTerm plan is considered as one of the Best Term Insurance Policies in India.

#4 – ICICI Pru iSmart Term Plan

ICICI Prudential Life insurance has several term insurance policies. Out of them ICICI Pru iSmart Term Plan is popular one.

Eligibility to take ICICI Pru iSmart Term Plan

Individuals in the age group of 18 years to 65 years are eligible to take this plan. Maximum age of maturity would be 75 years.

Features of ICICI Pru iSmart Term Plan

  • It is a non-linked and non-participating simple risk coverage policy.
  • ICICI Pru iSmart Term Plan comes with 4 benefit options i) Life ii) Life Protect iii) Life and Health iv) All in One.
  • Minimum sum assured is Rs 1 Lac with no limit on maximum sum assured.
  • Policy can be taken for 5 to 40 years tenure.
  • This term policy comes with flexible premium payment options i.e. Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • Low Premium for non-smokers.
  • Special rates for female individuals
  • This plan covers female organ cancers such as cervical cancer and breast cancer under accelerated critical illness benefit.
  • Latest claim settlement ratio of ICICI Prudential Life is 97.9%.

Exclusions in ICICI Pru iSmart Term Plan

Death benefit is not paid in case of the following:

  • In case of suicide within 12 months
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

Considering high claim ratio and unique features, ICICI Pru iSmart Term Plan is considered as Top Insurance Policy in India.

#5 – Tata AIA Life Sampoorna Raksha+ Term Plan

Tata AIA Life insurance has 4 term insurance policies out of which Samporna Raksha+ Term Plan is famous one.

Eligibility to take Tata AIA Life Sampoorna Raksha+ Term Plan

Individuals in the age group of 18 years to 65 years are eligible to take this plan. Maximum age of maturity would be 100 years.

Features of Tata AIA Life Sampoorna Raksha+ Term Plan

  • It is a non-linked and non-participating simple risk coverage policy.
  • Tata AIA Life Sampoorna Raksha+ Plan comes with 2 death benefit options – Option-1 – sum assured is paid in case of unfortunate death of life insured and Option-2 – Sum assured is paid in case of death of life insured + 1% of sum assured is paid every month for 10 years from the date of death.
  • Minimum sum assured is Rs 50 Lacs with no limit on maximum sum assured.
  • Policy can be taken for 5 to 40 years tenure.
  • This term policy comes with flexible premium payment options i.e. Single Premium, Regular Premium (Monthly, Quarterly, Yearly) and Limited Premium Payment.
  • Discounted premium rates for high sum assured.
  • Differential premium rates for females and non-smokers.
  • Return of premium options available.
  • Latest claim settlement ratio of Tata AIA Life is 98.02%.

Exclusions in Tata AIA Life Sampoorna Raksha+ Term Plan

Death benefit is not paid in case of the following:

  • In case of suicide within 12 months
  • In case of participation in any illegal or unlawful act
  • Use of drugs or alcohol etc.
  • Injuries caused by adventurous sports.

Considering high claim ratio of over 95% in the last 5 years, it can be considered as one of the Best Term Insurance Policies in India.

Suresh KP

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