Best Term Insurance Plans in India 2023 from Top Term Insurance Companies
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Term plans are important to offer security to the families of policyholders in the event of an unfortunate incident like the death of the policyholder during the policy period. If you are looking for the best term plans, the priority is to buy them from the best insurer. In this post, let us take a look at the best term insurance plans in India.
What is a Term Insurance Plan and Why do I need one?
A term insurance plan offers financial support to your family in case of your untimely death. It is a pure protection plan that offers wide coverage and several benefits to safeguard the needs of the policyholder’s family.
There are a lot of companies available in the Indian market today that offers the best insurance policies. However, it is important to choose a term insurance plan that suits you well. Online term plan comparison is the best way to do this.
What are the Benefits of a Term Insurance Plan?
The benefits of a term insurance plan are as follows:
1. Return of premium
As a maturity benefit, you can choose to take back all the premiums that you pay.
2. Low premiums, higher coverage
At affordable premiums, you can avail of high coverage as you take a term insurance policy.
3. Payout option
You will come across many term plans that will enable you to choose a payout option for the sum assured. This can serve as regular income.
4. Whole life cover
The majority term insurance policies offer a whole life cover. This means that even during a situation when you are not around anymore, your family will be financially secure.
5. Premium frequency
You get to choose the mode and frequency of paying the premium. Many insurers provide single, regular, or limited payment options.
6. Online/Offline buying options
You can choose to buy term insurance either online or offline. Some insurance companies provide various benefits for buying a term insurance plan online.
How to Choose the Best Term Insurance Plan in India in 2023?
Since several term insurance plans are available in India, it can be a bit confusing to choose a particular term plan. Therefore, here are some factors that you can consider while choosing a term insurance policy.
1. Assess the needs
Every family has certain financial responsibilities that need to be met. And in your absence, things must be carried on without causing any problems for the members of the family. Therefore, you should consider your current income, liabilities, members in the family who are financially dependent, inflation rate, etc., and then go for the sum assured in a term insurance plan.
2. Claim Settlement Ratio of the Insurer
Any policy buyer needs to check the Claim Settlement Ratio (CSR) of the insurance company before buying a term insurance plan. The CSR indicates the number of claims that have been settled by the insurer.
3. Additional riders
If you are getting additional riders, you must buy them. As you choose a term insurance plan, you must enquire about the additional riders that you may get. Some of the common riders include Waiver of Premium, Critical Illness, Accidental Death, Income Benefit, and Permanent and Partial Disability.
How to Buy the Best Term Insurance Plan from PayBima?
Buying a term insurance plan from PayBima is the easiest thing that you can do. Here are the steps that you need to follow:
- Step 1: The first thing that needs to be done is to visit the website of PayBima
- Step 2: Now from the dropdown of Life Insurance, you can click on Term Insurance
- Step 3: At this point, you can find fields that you need to fill out in three steps
- Step 4: The details that you need to provide include your Date of Birth, Gender, Age till when you need coverage, Life cover amount, Primary insured Pincode, Annual income, Education, Occupation, Your name, Mobile number, and Email ID
- Step 5: After completion of entering these details, you will get quotes. Based on the one you prefer, you can buy the term insurance plan.
Best Term Insurance Plans 2023 India- An Overview
Below is the list of best term insurance plans in India for 2023 from the top insurance companies together with their claim settlement ratios, maturity age and sum insured value for fiscal years 2021-22.
| S. No | Insurance Company | Term Insurance Policy | Claim Settlement Ratio (CSR) | Entry Age (Min-Max) | Maturity Age (Min-Max) | Sum Assured (Min-Max) | Critical Illness Rider |
| 1 | Life Insurance Corporation of India | LIC Tech Term | 98.62% | 18 – 65 years | 80 years | 50 Lacs – No limit | NA |
| 2 | HDFC Life Insurance | HDFC Click 2 Protect 3D Plus Term Plan | 98.01% | 18 – 65 years | 75 years | 20 Lacs – No limit | Yes |
| 3 | SBI Life Insurance | SBI Life eShield | 93.09% | 18 – 65 years | 85 years | 50 Lacs – No limit | NA |
| 4 | Max Life Insurance | Max Life Smart Secure Plus Plan | 99.35% | 18 – 65 years | 85 years | 20 Lacs – No limit | Yes |
| 5 | ICICI Prudential Life Insurance | ICICI Prudential iProtect Smart Term Plan | 97.90% | 18 – 65 years | 75 years | 50 Lacs – 10 Cr | Yes |
| 6 | Bajaj Allianz Life Insurance | Bajaj Allianz Smart Protect Goal Term Plan | 98.48% | 18 – 65 years | 99 years | 50 Lacs | NA |
| 7 | Kotak Mahindra Life Insurance | Kotak Mahindra E-Term Plan | 98.50% | 18 – 65 years | 75 years | 25 Lacs – No limit | Yes |
| 8 | PNB Metlife India Insurance | PNB MetLife Mera Term Plan Plus | 98.17% | 18 – 60 years | 99 years | 25 Lacs – No limit | Yes |
8 Best Term Insurance Plans in India 2023 from Top Insurers
Below is the list of best term insurance plans in India 2023 offered by top term life insurance companies:
1. LIC Tech Term
Insurance Company~ Life Insurance Corporation of India
LIC Tech Term Plan is a pure risk premium plan that is available through an online application process only. The plan comes with attractive benefits and additional features and is offered at affordable rates.
Key features:
- Two sum assured options are available to choose from
- Flexible premium payment terms
- Options to choose your policy term
- Special rates available for women
- Attractive rebates applicable on high sum assured
- Rider option available
2. HDFC Click 2 Protect 3D Plus Term Plan
Insurance Company~ HDFC Life Insurance
HDFC Click 2 Protect is one of the best comprehensive term insurance plans available in India. The plan offers several features and benefits to safeguard the needs of the policyholder and his family.
Key features
- Offers 9 plan options to choose from
- Lifelong protection feature available
- Flexible premium payment terms
- Life stage protection feature
- Top-up cover options are available
- Special premium rates for female policyholders
3. SBI Life eShield
Insurance Company~ SBI Life Insurance
SBI Life eShield is a comprehensive pure-term insurance policy that offers several benefits and attractive features to safeguard the financial needs of the policyholder’s family in his absence.
Key features:
- Can be purchased online, very easily
- Offers 3 plan options to choose from
- Flexible payment modes offered
- Terminal illness benefit features available
- Rider options are available.
4. Max Life Smart Secure Plus Plan
Insurance Company~ Max Life Insurance
Max life Smart Secure Plus is a comprehensive term insurance plan that acts as a financial shield for your family in the case of an emergency. The plan offers wide coverage, optional benefits, and additional features.
Key features:
- Flexibility to choose the death benefit according to the needs
- Includes terminal illness cover for the policyholder
- On choosing the return of payment variant, you receive the maturity benefit
- Optional accident cover feature available
- Low premium rates for female policyholders
5. ICICI Prudential iProtect Smart Term Plan
Insurance Company~ ICICI Prudential Life Insurance
ICICI Pru iProtect Smart is a term insurance plan that has been in demand since its launch due to its desirable features. It is a comprehensive plan that offers 360-degree coverage at affordable rates.
Key features:
- Comes with four payout options
- Offers special premium rates for non-smoking individuals
- Flexibility with premium payment modes
- Special premium rates for female policyholders
- Critical illness coverage option available
- Special coverage features are available for female organ cancer( like breast or cervical cancer)
6. Bajaj Allianz Smart Protect Goal Term Plan
Insurance Company~ Bajaj Allianz Life Insurance
Smart Protect Goal is a complete-term insurance plan offered by Bajaj Allianz which is one of the reputed insurance companies in India. The plan comes with multiple variants to suit the needs of all its clients and acts as a financial shield at the time of unfortunate events.
Key features:
- Whole life coverage option available
- Flexibility to choose from 4 variants of the plan
- Additional coverage for child education post the death of the policyholder
- Optional add-on covers are available
- Covers more than 50 critical illnesses
- Return of premium feature available
7. Kotak Mahindra E-Term
Insurance Company~ Kotak Mahindra Life Insurance
Kotak Mahindra E-Term plan is an efficient, comprehensive individual term insurance plan designed in a way to add extra benefits to a protection plan. Kotak Mahindra’s E-Term plan comes with many add-on features and advantages that are offered at affordable rates.
Key features:
- Flexibility to choose between three payout options
- Three variants of the plan are available
- Critical illness benefit feature is included
- Special premium rates for female policyholders and non-smokers
8. PNB MetLife Mera Term Plan Plus
Insurance Company~ PNB Metlife India Insurance
PNB MetLife Mera Term Plan is as unique as its name. It is a comprehensive pure protection plan that takes care of your expenses and needs are always taken care of at every stage of life.
Key features:
- Low premium rates
- Flexibility to choose from four payout modes
- Special premium rates for non-smoking individuals
- Whole life coverage feature available
- Can be bought easily through online mode
Since all of the aforementioned plans have been rated the best in India, in 2023, choosing one of them can be tricky. Once you chalk out your financial goals, an online term plan compared with the guidance of consulting insurance agents can be a good way to do this.
FAQs: Best Term Insurance Plans 2023 from Top Term Insurance Companies in India
Both the insurance policies have their own importance. Term insurance protects the insured for a limited period of time, whereas whole life insurance allows protection for lifelong. However, the cost of life insurance plans are much more as compared to term insurance plans. Again, life insurance allows maturity benefits to the insured, while term plans only offer death benefit minus the maturity.
The pure Term insurance plans do not offer any maturity benefits. It only offers death benefits to the nominee of the policy. However, if you buy a life insurance with return of premium option, you can avail maturity benefit.
A 1 Crore term insurance plan is one where the nominee will receive 1 Crore as death benefit in case the policyholder dies during the term of the plan. Hence, in the 1 Crore term plan, the sum assured is 1 Crore which is paid as death benefit.
Generally term insurance plans are not covered under 80D of income tax. That is because Medical insurance premiums paid by policyholders are mostly covered under 80D. However, these days since term insurance plans allow added coverage as riders, you can buy a critical illness health rider to claim tax deductions under section 80D.
It actually depends from person to person as per the budget and needs. However, as a general rule of thumb, a term plan is expected to cover at least 15 to 20 times the current annual salary or income of a person.
Below are the top 8 term insurance companies you can choose for 2023 -
#1. LIC Term Life Insurance
#2. HDFC Term Life Insurance
#3. SBI Term Life Insurance
#4. Max Term Life Insurance
#5. ICICI Term Life Insurance
#6. Bajaj Allianz Term Life Insurance
#7. Kotak Mahindra Term Life Insurance
#8. PNB MetLife Term Life Insurance
Although it totally depends on the insurance company. Most insurance companies keep the age limit to buy a term insurance plan between 18 and 65 years.
The factors that should be considered while purchasing a term insurance plan in 2023 are your age, financial responsibilities, future financial needs of your family, basic expenses and the lifestyle maintained by your family, loans that you have taken, inflation, etc.
The common documents that you need to buy the best term insurance policy online are ID and address proof, age proof, a recent passport-size photograph, medical reports, etc.
Yes, an individual can have more than one term insurance policy. However, it is advisable to know the risks, benefits, and coverage of the plans.
In the majority of cases, it is possible to change the frequency of term insurance payments. However, it is mostly done on the anniversary date of the policy.
Yes, you can but in that case, you or the nominee of the policy will not get any benefits of premiums back.
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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