List of 11 Best Term Insurance Plans in India 2025
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Best Term Insurance Plans in India
Shyam is an employee who is working in a private company in Chennai. He bought a term insurance plan for his family. Unfortunately, his health was not well, and he consulted a doctor. The doctor told him that he was suffering from liver problems and needed immediate medical treatment. His family had to incur high medical expenses and costed them all their saved money, but they couldn’t save him. Fortunately, the term insurance he had bought earlier helped their family get financially stable once again.
A term insurance plan has its own pros and cons, it helps to get protection against terminal illness, death, permanent disability and more. While, on the other hand, they don’t provide any maturity benefit to policyholders however the pros outweigh the cons by a huge margin. Several insurance companies offer plans in the markets to satisfy the needs of a policy buyer. However, customers should evaluate them properly, which will help them select a plan accordingly that exactly suits the requirements of a person.
Knowing the Top Term Insurance Plans to Look for in 2025
1. Aditya Birla Sun Life Insurance Life Shield Plan
Aditya Birla is a leading insurance company in the markets that offers a variety of plans for customers. It provides the best term insurance plan with excellent features allowing a person to gain more benefits. For example, Aditya Birla’s Sun Life Insurance Life Shield plan comes with a choice of 5 rider options for getting extra protection. Moreover, it provides the freedom to increase the sum assured amount. In addition, the company offers a premium reduction for females, thereby helping them save more money.
2. Bharti AXA term plan eProtect
Bharti AXA is one of India’s top insurance companies that aims to cater to the needs of a policy buyer. It is an online term plan that offers comprehensive coverage to a family during unforeseen events. Some of the features provided by the plans include life insurance benefits, family care benefits, tax benefits, etc.
3. Edelweiss Tokio Life My term plan +
It is a limited-term plan that provides coverage for family members in case of any eventuality. The plan offers an additional life cover to a spouse under the better half benefit option. Apart from that, the plan provides coverage for critical illnesses and add-on benefits to a policyholder. In addition, the plan offers death benefits in a lump sum or monthly income benefit, or a combination of both. Customers can pick different options when they want to buy a term plan.
4. HDFC Life Click 2 Protect 3D plus
HDFC Life Click 2 Protect 3D plus provides India’s best term insurance plan with several features to ensure maximum protection. It is an online term plan, and one can purchase the same easily. The company provides nine different plan options for customers that suits their requirements. Another thing about the company is that it offers low premium rates for non-smokers and females.
5. ICICI Pru iProtect Smart
ICICI Pru iProtect Smart term plan offers comprehensive coverage to the insured family at affordable rates. Besides that, customers can choose additional riders which best fits their requirements. The plans provide tax benefits to policyholders under income tax section 60 A.
6. Kotak e-Term plan
Kotak e-Term plan is a complete risk cover plan that protects loved ones from various financial stress. It is a low-cost insurance policy that offers high coverage at reasonable prices. The minimum sum assured amount offered by this plan is Rs.25 lakhs and also gives the option to select add-on benefits accordingly.
7. LIC e-term plan
LIC e-term plan is an online plan that provides financial security to the insured’s family. It offers only a death benefit to nominees. The minimum sum assured amount offered by the plan is Rs.25 lakhs and Rs.50 lakhs for non-smokers.
8. PNB Metlife Mera Term plan
PNB Metlife Mera Term plan is one of India’s best term insurance plan that provides ways to increase monthly cover by 12% per annum. It even offers coverage for a spouse that eventually helps on saving money but not compromising on the cover. In addition, the plan provides comprehensive coverage for policyholders to manage difficult situations in life.
9. TATA AIA Maha Raksha Supreme
Tata AIA offers the best term insurance plans for customers in the market at affordable prices. Tata AIA’s Maha Raksha supreme is a non-linked insurance plan that effectively reduces the debts of a policyholder. The primary advantage of this plan is that it allows a person to increase the policy coverage at prospective milestones of life without undergoing medical writing. Exclusive plans are available for females and non-smokers to save more money.
10. SBI Life eShield
SBI life eShield plan offers four plan options for customers, and they can select the right one among them depending on their needs. The plan offers a minimum sum assured amount of Rs.20 lakhs, a free-look period, a surrendering facility, etc. It even offers rewards for those who live a healthy lifestyle and comes with four protection variants.
11. Shriram life Cash Back Term Plan
The Shriram Life Cash Back Term Plan can be considered as one of the best term insurance in India because it offers a lump payout option to nominees when a policyholder passes away. It even offers maturity benefit to a policyholder. A policyholder can enhance the policy cover and make it more secured with rider benefit options.
Best Term Insurance Plans in India
Below are 5 Best Term Plans in India for FY 2020-21:
Aditya Birla Sun Life Insurance (ABSLI) Life Shield Plan
Bajaj Allianz Life Secure
Exide Life Elite Term Insurance Plan
HDFC Life Click2Protect Life Plan
ICICI Pru iProtect Smart
The five types of term insurance are, namely,
Level Term Insurance,
Increasing Term Insurance,
Decreasing Term Insurance,
The Return of Premiums Plans, and
Convertible Term Plans
Yes, a Term Plan is a good investment as it supports a family to meet their daily needs as well as it helps them to achieve many of their long-term goals. So, it is definitely worth it to buy term insurance plans regardless of your age or the term duration. However, as compared to other types of life insurance policies, a term plan is more valuable.
With 99.07% claim settlement ratio in 2019-20, HDFC Life Click 2 Protect Life is regarded as the best term plan in India. So, HDFC bank followed by ICICI and SBI bank are the ones offering good bank term insurance plans.
Term insurance is a life insurance policy with pure protection of life. Term plans offer protection for a specific time period to the policy holder in exchange for a particular premium amount. So, if any unforeseen event takes place to the policyholder during the term of the policy, the insurance company presents a definite amount of payout to the nominee of the policy holder.
Term insurance is a kind of life insurance plan that covers a policyholder for a particular duration of time. If the policyholder dies during the period of the term of the policy, a death benefit is paid to the nominee of the policyholder. Term insurances are affordable and they ensure the financial security of a family if there is an untimely death of the insured or the earning member of the family.
The key difference between term insurance and life insurance is that in term insurance, the policyholder's nominee can receive the monetary aid in the form of death benefit only in case of death of the insured during the policy term period. On the other hand, under life insurance plans, it allows both death and maturity benefits to the insured or his/her nominee.
Below are the benefits received under Term Insurance Policies:
Financial security to the family members of insured. (if the insured dies suddenly during the term of the policy).
Also, the insured can buy optional critical illness coverage and accidental death coverage
Further, under term insurance, you get covered for lengthy term period
And premiums of term plans are affordable
If the term insurance plan expires and the policy holder outlives the plan, he/she may not receive the sum insured. Further, if the policyholder dies after the expiry of the policy, even in that case the sum assured may or may not be paid as per the terms of the policy.
Below are the condition or death that are not covered under term insurance:
Deaths due to Suicide
Death due to self-inflicted injuries
Death due to HIV/AIDS
Death due to intoxication
Homicide, etc.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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