Best Term Insurance Plan in India

By | May 7, 2024

Before buying the best term insurance plan, you need to understand the factors affecting the insurance premium and the things you should consider before choosing the best term insurance in India. I have covered these points in the later sections of the article.

Let’s first check the best term insurance plans in India 

Best Term Insurance Company in India

#1. Max Life Insurance

Max life is known for offering customized policy terms from 10 years to 35 years based on customer needs. You can also add rider plans over your term policy for better life protection.

Max Life insurance has the highest claims ratio of 99.22% for the year 2019-20. A higher claim ratio assures that your family would receive the premium without any hassle.

#2. Bharti Axa Life Insurance

Bharti Axa Flexi Life’s individual death claims paid is 97.4% for FY 2019-20. So you are assure of a hassle-free claim process.

The insurer offers a maximum coverage term of up to 85 years and offers separate covers for heart and cancer and 34 critical illnesses.

#3. LIC of India

LIC of India has a wide network and reach and is the largest insurer in India. You will find LIC offices in your city and even in small towns.

LIC of India Individual Death Claims Paid Ratio is 94.45%. But the application and claim settlement process can be slow.

#4. TATA AIA Life Insurance

TATA AIA term offers whole life coverage of 100 years and various death benefit options to choose from. The insurer offers a discount of up to 25% for a higher sum assured.

TATA AIA individual death claims paid ratio is a bit lower at 94%

#5. SBI Life Insurance

SBI Life has a unique micro insurance term plan for below the poverty line persons for maximum sum assured of Rs. 50,000.

SBI Life insurance individual death claims paid ratio is 92.13%. The unique proposition is the increase in sum assured @10% at the end of every 5 years.

 

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11 Best Term Life Insurance Plans in India for 2023

#1. Max Life Smart Term Insurance Plan

Max life insurance is one of the most preferred companies for term insurance due to its high claim settlement ratio. The company has a 99.22% claim settlement ratio for the year 2019-20.

You would get the option to customized the term plans based on your needs. You can have a term plan cover till the age of 85 years.

Max term insurance charge less premium for term plans as compared to other company plans.

For example, if you are 30 years old, you can get coverage of Rs 1 crore by paying a premium of approximately Rs 1000 per month.

A new addition, COVID-19 Rider – Max offer a COVID rider plan which offers benefit on both diagnoses and death.

For example, you take the rider plan with 10 lakh coverage. You would get a lump sum of Rs 2 lakh in case you diagnosed with COVID, even cured at home. In case of death, up to  10 lakh additional lump sum would be added in the coverage of your base term plan.

You can get the COVID rider plan by paying only Rs 270 per lakh coverage additional to your basic coverage plan. You can get maximum coverage of 10 lakh for the COVID-19 rider plan.

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