Which are the 5 best Term Life Insurance Plans?
If anyone in your life (spouse, parents, children, siblings or anyone else) depends on your income, then you may need to take a life insurance policy.
Life insurance can be bought in many ways, such as ULIP, traditional plan or term insurance plan.
We have seen in an article that Term Life Insurance Plan is the best and cheapest way to buy life insurance .
What is Term Life Insurance Plan (What is Term Insurance)?
Term insurance in the simplest language is an insurance product that provides a sum assured (cover amount) to the family, in case of death of the policyholder. Term plan provides risk coverage for a fixed period of time (policy term/term).
If death occurs during the time period specified in the insurance policy and the policy is active – or in force – then the death benefit is paid.
If the holder does not die during the policy term, then the holder gets nothing at the end of the term.
There is no investment component in a term insurance plan.
Now there is no dearth of term insurance plans in the market. Every insurance company has a term plan.
So which term insurance plan should you buy?
Seriously, you can buy a term plan from any insurance company. There is not much difference.
You can take term insurance from any insurance company with which you are comfortable.
We saw in a previous post that if your plan (life insurance) is three years old, then the insurance company cannot reject your claim.
Which are the Best Term Life Insurance Plans
Although it does not matter much which company you buy from, in this post, I will be discussing some of the best online term insurance plans in India.
All these plans can be bought through online.
Online term insurance plans can be around 30-40% cheaper as compared to offline plans.
The entire process takes place online through the company’s website. Keep in mind that if for some reason the insurance company wants to do your medical check-up, then that check cannot be done online.
You can avoid being manipulated by the agent/advisor during the buying process.
Read Also: Why choose HDFC to buy insurance?
How did I choose these online term insurance policies?
I looked at the premium and claim settlement ratio of the plan to make a choice .
If the premium is less, then it is good.
Claim settlement ratio (Claim Settlement Ratio) shows how many claims the company honors. Obviously, the higher this number is, the more you can trust the insurance company.
Also, I did not pay attention only to the percentage of claims that were paid. I also saw the claim settlement amount wise. It is important to know this because only by looking at it we can know whether the insurance company is rejecting a big claim.
You can read this article (English) to know more about it .
Also I have tried to choose a big insurance company.
Read Also: अपनी कार का बीमा कम करने की तरकीबें
Best Online Term Insurance Plan
- LIC e-Term Plan (LIC E-Term) (This plan will be very expensive for you) ( Read Review )
- ICICI Pru Iprotect ISmart plan ( Read Review )
- Max Life Online Term Plan ( Review / Read Review )
- Aegon Religare iTerm Plan
- Tata AIA IRaksha Supreme
Let us know how much will be the term insurance premium of 50 lakhs in these plans . Also, see that if you want a cover of a higher amount (like a cover of 1 crore ), then how much premium you will have to pay for it.
Note that these premiums are for a policy term of 30 years for a 30 year old healthy individual . Term insurance calculators are available on various websites , you can calculate the premium for yourself by visiting those websites.
Note that this premium amount mentioned is only for the basic term plan. If you want to take some insurance riders along with your plan, then the premium will also increase. To know more about term insurance rider must read this post . Insurance cpc
Term insurance premium increases with your age and policy term
The premium for term insurance remains the same for the entire policy term. The premium is decided at the time of taking the policy and remains the same throughout the term.
Now how much will this premium be, it depends on your age and policy term.
Term insurance premium increases with your age. This means the premium for a person aged 45 should be higher than the premium for a person aged 30.
Also, the premium also increases with the policy term. For example, the term insurance premium for an individual for a term of 15 years will be less than the premium for a term of 30 years.