Insurance is derived from French word ensure which means to make something certain or safe. Ensureur in turn is driven from assureur. Insurance as financial products has been developed to provide safety against damage, loss or property or life for individuals, assets, businesses etc.
In this post, we will look at Best Term Insurance plans in India.You will get a comparative picture of best term insurance plans available in the market.
Life insurance is a financial product created to protect against untimely loss of life. In a typical life insurance policy the insurance companies insurance specific money in case of premature death of insuree to beneficiaries nominated in the contract, subject to terms and conditions of the policy.
Max online term plan comes with one of the lowest premiums and a fantastic settlement ratio of claims about 96 %.The annual premium for 30-year-old male non-smoker for basic life cover comes to around 8300.
iProtect is the flagship term insurance plan from ICICI prudential. iProtect smart is a pure play term plan with an Accidental death benefit rider as well as critical illness rider. iProtect also offers premium waiver in case of terminal insurance.
Ongoing Regular Income: In this option, you get 10 % benefit amount every year. The payments are made monthly, so if you are insured for 1 crore your beneficiary will get the sum in 120 monthly installments of Rs 83,333.
Increasing ongoing Regular income: In this option, you get 10 % of the benefit every year but the benefit keeps on increasing by 10% every year.
Critical illness benefit is available for 34 critical diseases. You get a lump sum payment irrespective of your expenses on the illness.
Click 2 Protect from HDFC life is one of the most popular term insurance plans in the market. HDFC has a great settlement ratio. Premium for 30-year male non-smoker for the basic plan comes to about.
Like most other plans it also provides accidental death rider benefits and also permanent disability benefits wherein all your future installments will be waived off but the policy will continue to stand.Aegon Religare has one of the lowest premiums in the market.
e-Term plan from LIC is its foray into online term plans. Even though LIC is a late entrant in the online term insurance market.It has steadily built up its presence with an e-Term plan. e-Term plan is cheaper than its offline counterpart Jeevan Amulya but is still one of the costliest plan available in the market.LIC has the best claim settlement ratio of 98.2 %.
As you can see above eTerm plan for LIC comes with a maximum premium of 16790 for 30-year-old male non-smoker for a 30-year term.
Kotak preferred e-term plan is amongst the most economical e-term plans available in the market. The premium for 30-year male non-smoker comes to around 8481 which is amongst the lowest in top term insurance plans.Maximum policy term is for 40 years so you get cover for a longer period as compared to some other policies.
It provides customized payout options you can opt for an immediate payout as well as a recurring payout. In case you opt for a recurring payout your nominee will get 10 % of the sum assured immediately and balance in 15 years through equated monthly or annual payments.You also get a basic waiver on permanent disability in case of permanent disability all your future premiums are waived off while your policy continues as it is.
As with all other top plans e-term plan from Kotak also provide e-accident death benefit rider which pays out lump sum benefit on accidental death of the life insured in addition to Death Benefit under the base plan.
I-secure from bajaj Allianz allows your to secure you and your family including your spouse. You can create an individual plan or create or create a joint plan with your spouse.You can get the benefits in 5 year or 10-years installments.
E-shield is the online term insurance plan from SBI. e-shield has premiums on the higher side and also does not have a great settlement ratio.
The accidental death benefit will be 50 lac or basic sum assured whichever is lower.
While most companies offer some kind of health insurance, Life insurance covers are not that common in most of the companies, so it is important that you buy a separate life insurance cover, also this insurance cover will help much after you have stopped working.
You can get critical illness covers within term insurance this helps you cover for critical illnesses which might not be covered fully by your health insurance. There are a lot of critical diseases which require costly treatments and can be debilitating on your finances and are not covered fully by your health insurance. Critical illness cover bought stand-alone or along with your life insurance cover can come in handy in these scenarios.
Tax benefits: Term insurance plans are eligible for tax deductions under section 80 C. the premium you pay for your term insurance thus can be claimed as tax deductions under section 80 C as per the income tax rules.
Minimum age of 18 years: You would need to be 18 years old to apply for a term insurance policy.
Minimum and Maximum policy term: In general for most companies, minimum policy term is 10 years, though some plans do have 5 years as the maximum plan.Maximum policy term is generally between 30-40 years.
Are there any death reasons not covered by term insurance?
In general, most of the insurance companies do not cover deaths due to terrorism, Deaths occurring due to wars, or caused by natural disaster like earthquakes, floods, tsunamis, cyclones etc.
Will the premium on my policy remain the same throughout the term of my policy?
Yes in general if not specified otherwise in the policy term the premium you pay for your policy remains constant throughout the term of the policy.
What is an ideal term for which I should buy the term insurance plan?