Term Insurance

Term Insurance is basically a traditional protection plan that offers the needful financial assistance to your family in case of your demise. It is the best way to secure your family against financial crisis.
Term Insurance is a kind of life insurance that covers life risks against any unforeseen situation. It's the best way of securing your family against any kind of financial crisis. With the small Investment, you can have huge Sum Insured. It helps your family by maintaining the dignity they deserve. It will be there to support your family during hard times and can also assist in living an independent life after you. Term insurance plans can cover the risk of death, disease & disability. With the same, family members of insured get desired financial security.
Term insurance plans are much cheaper compared to whole life insurance plans because these plans carry no cash value with a sole aim to provide pure financial protection benefits. This means that if the life insured dies during the policy term, the beneficiary will receive the death benefit, provided all premiums are paid and the policy is in force. If the person survives until the end of the policy term, no benefits are payable to anyone.
In most cases, term insurance plans offer a level premium rate, wherein the policyholder is charged the same premium for the duration of the policy tenure. However, in such cases the premium payable will increase during renewal of the policy based on the concerned individual’s age at the time. While the coverage provided by a term plan is more or less fixed, most life insurance providers offer a number of riders that policy buyers can choose to purchase along with a term policy.
What is Online Term Insurance Plan?
There are a large number of online term insurance plans in India. Premium of such online insurance policies are 60-70% lower in comparison to other term plans, all other benefits being the same. Online term plans can save you a lot of money.

Why Is Term Insurance The Best Investment?

Term Insurance is a plan that offers wider coverage at an affordable price. It's recommended for everyone who is eligible to get it. You can invest a small amount as well.
There are lots of benefits that Term Insurance plans can offer. It will not be wrong to say that Term Insurance is not a luxury. Coming years as Lifespan will reduce, Life risk will increase, then people will understand its relevance even more. Smart people always make the decision before the storm. Before it's too late you must buy the appropriate Term Insurance Plan.
Some of the important benefits it offers are as follows:-

Family Security

One of the most important parts of your life is your family. Have you ever thought what will happen to them if you no longer exist? Best way to exhibit your love towards them is buying them the gift of security. Term Insurance plan is a tool to ensure the security of your family. The cost of Term Insurance is negligible but the benefits are unparallel. First of all, it provide the needful financial assistance to your family in case of need.In case something happens to you, your beneficiary gets all the Sum Insured through which it will be easier for them to maintain their standard of living. You can decide the amount of Sum Insured as per your needs and savings. A term insurance plan does'nt cost high,it is affordable as a cup of coffee.
The cost of the premium also depends on the amount of Sum Insured besides other factors. It's good to take the coverage as per the current lifestyle that you have. This can assure to manage the mundane expenses of your family. Your beneficiary can take the claim in flexible ways as it is suitable. The beneficiary will get the death benefits in lump sum or combine it with equal monthly installment over the years.
There are many insurance plans that you can buy. It is advisable for you to invest in the same, after checking all the features and factors.Each plan carries some unique benefits that can easily go well with the different needs of buyers. You have to buy the one according to your needs.

Achieving Financial Milestone

We all have many goals that we aspire to achieve. These plans are applicable at various thresholds of life. The goals that we set also involves our family in a subtle way. Have you ever thought what will happen to these goals
if you no longer exist to fulfill them? Good news is that you can still achieve your dreams set for your family in your absence. This can be possible with the help of Term plans.

Most of the goals need money to get fulfill, we can earn money to achieve only till we are alive. To secure the funds for our family after our demise Term Insurance is the only option.

You can buy a suitable plan through various platforms. The best part is even if we are alive till the policy term we are entitled for refund or other benefits. However, this facility will completely depend on the kind
of plan we have chosen. We can always select the plan as per our financial aspirations. The Sum Insured should be set based on our financial goals and monthly earnings.

Tax savings as per Section 80C & 80D

Yes, this is an additional benefit of investing in a term insurance plan. On buying a term insurance policy you will be liable to get tax benefits under section 80C. It is a combination of wider coverage and tax benefits. So,
as it comes out with dual benefits, it is always a win win situation to invest in a term insurance policy.

Rider Benefits

Riders are add-on benefits that you get with these policies. They are the top-ups that provide add-on coverage. Riders cover all possible eventualities subject to the Term plans. Presence of various additional riders such as
personal accident, waiver of premium, critical illness, etc will help at different stages of life. It is always advisable to add riders in your term insurance policy to get wider coverage and assistance against many unwanted
contingencies. There is no doubt in saying that hazards often come uninformed, with an effective term insurance and riders, you will be abe to cover almost all possible risk and can also offer finnacial assistance to your
family to live a stable life after you. When it comes to riders, it is important for you to not make any mistake in choosing the appropriate one. Examine your needs first and then choose accordingly. PolicyX.com can easily
help you in the same.

 Maximum gain with small Investment

Term Insurance plans are available at a very nominal amount. It may be as low as some hundreds or thousands per month. As compared to that the Sum Insured can be in lakhs and crores, it is generally 25 to 30 times more than
our salary. In case of any eventuality that leads you towards death, the nominee and beneficiary will be liable to get death benefits. He/she have to inform the insurer and the rest will be taken care by the company itself.
It is always advisable for everyone that before buying any policy, go through terms and conditions of plans so that you will be aware that in which situation the claim will get approval or face rejections. The best thing
about a term insurance is the wider coverage and the presence of additional riders. Moreover, with the presence of a few exclusive term insurance plans that offers returns as well, it become the first choice of investors
for investment. Whatever little amount that you pay as a premium offers much more benefits than it's worth. The returns on Investments is way beyond our investment. In fact, it's that high that investment seems to be negligible.

Lesser Claim Rejection Ratio

Claim Settlement of Term Insurance is usually more than 90%. In very rare circumstances if the policy term is not adhered, the claims get rejected. It is always better to read the policy documents before buying any plan to
avoid rejections. Often people are unaware of some clauses. As a result, there are great chances that their claims may be rejected. At the same time, one thing more that you should take care is that at the time of purchase,
you should not hide anything from the insurer. This can become another reason for the rejection of the claim. By staying aware and honest there is lesser chance of claim rejection.

Survival Benefits

Well, there must be a few policies only that will be able to offer returns or refunds of your premium. Not all term insurance plans are liable for this and those plans who offer such benefits will cost really high as compared
to basic term insurance plans. However, these plans reimburse the entire premium that you have paid.You can avail benefits even if you survive after the policy term. Some Term Plans not only covers the risk of death but
other life risks as well. The deadly disease, accidents, disability are other risks that need coverage as well. You can go for riders to get coverage against the same.

Variations of Term Plans as per our suitability

There are various kinds of Term plans that offers many different kinds of benefits. You must choose the plan as your current need. Many customized plans are easily available. Every person may have different requirements. You can always choose the plan
that is most suitable for us. Variations come in two different ways. People often get confused about these differentials. You have a choice between Insurance companies and Term plans. Before buying and Term Insurance you
can always compare them from online comparison websites.

Claims Benefit

The beneficiary can take the claim either in a lump sum or in monthly installment. The best thing about the term insurance plan is no matters what is the inflation rate, your premium will remain same. When it comes to claim
settlement, it is very easy and simple. You have to inform the insurer about the demise and submit a few essential documents.After verification of documents given by beneficiary, the claim is processed.

Maturity benefits can only be taken after policy tenure. In other cases, it will be applicable as and when an event occurs. Here also it is based on what kind of coverage you have taken. If it's only for life than
claim will be applicable if policyholder expires. But if other additional benefits are chosen than claim will arise in other situation as well. These situations can be either at the time of any critical illness or any disability
as well. You must understand the policy document carefully before taking the claim. These way not only you will get the claims faster but you will be aware how much amount you should be getting.

Types of Term Insurance Plans in India

The following types of term insurance policies are available in India:
  • Renewable:These plans can be renewed at the end of the policy term. The insured may have to provide a proof of good health before renewal.
  • Convertible:It allows customers to exchange their policy for a cash-value plan. However, switching to a traditional plan may increase the premiums.
  • Level:The premiums and sum assured are stable throughout the policy term under this plan.
  • Decreasing:The premiums in such plans remain stable whereas the sum assured decreases at a steady rate over a specific period of time.
  • Increasing:In such plans, the sum assured increases at a steady rate but the premium amount remains constant.
  • Return of Premium:These plans provide a return of the premium if the insured survives the policy period.
Best Term Insurance Plans With Rs.1 Crore Coverage

Plan Name Sum Assured Policy Tenure Age at Entry
ICICI Pru iCare II Term Insurance Plan
  • Minimum Sum Assured: As per policy brochure
  • Maximum Sum Assured: Unlimited
  • Regular Pay Policies: 5/10/15/20/25/30 years
  • One Pay Policies: 5/10 years
18 – 60 years
HDFC Life Click2Protect 3D Plus Plan
  • Minimum Sum Assured: Rs.10 lakh
  • Maximum Sum Assured: No limit
  • Life Long Protection and 3D Life Long Protection variants: Whole life policies
  • Other variants: 5 – 40 years
  • Life Long Protection and 3D Life Long Protection variants: 25 years – 65 years
  • Other variants: 18 years – 65 years
Aviva i-Life Plan
  • Minimum Base Sum Assured: Rs.25 lakh
  • Maximum Base Sum Assured: No Limit
10 – 35 years 18-55 years
Max Life Insurance Online Term Plan Plus
  • Minimum Base Sum Assured: Rs.25 lakh
  • Maximum Base Sum Assured: Rs.100 crore
10-50 years Minimum entry age is 18 years and above
SBI Life – eShield Plan
  • Minimum Sum Assured: Rs.35 lakh
  • Maximum Sum Assured: No limit
  • Minimum Policy Term:
    • For Level Cover: 5 years
    • For Increasing Cover 10 years
  • Maximum Policy Term: 30 years
  • Minimum Age at Entry: 18 years
  • Maximum Age at Entry: 65 years for the Level Cover and 60 years for the Increasing Cover

Best Term Insurance Providers in India with the Highest Claims Settlement Ratios
The claim settlement ratio refers to the total number of death claims that the insurance provider has paid against the total number of death claims received by them in a given financial year. A high claim settlement ratio is desirable since it indicates the insurer’s willingness to settle claims, and will, thus, ensure that your nominee doesn’t have to face any undue hassles during the claim settlement process.
If you are looking to purchase a term plan, it is highly advisable to check the claim settlement ratio of various companies, since it is a good indicator of the insurance firm’s ability to settle received claims. The Insurance Regulatory and Development Authority of India (IRDAI) publishes the claim settlement ratios of various life insurance companies in their annual report. We have listed the claim settlement ratios of various term insurance providers in the table below.
Insurance Provider
Claims Settlement Ratio
Claims Paid
LIC
98.04%
724596
SBI Life
96.76%
18274
ICICI Prudential
97.88%
11216
HDFC Standard
97.80%
12289
Bajaj Allianz
92.04%
13176
Max Life
97.81%
9606
Aditya Birla Sun Life
96.38%
5292
Kotak Mahindra
93.72%
2881
Reliance Nippon
95.17%
8553
IndiaFirst Life
89.83%
1626
PNB MetLife
91.12%
3726
Tata AIA
98.00%
2793
DHFL Pramerica
96.62%
572
Shriram Life
80.23%
560
Star Union Dai-ichi
92.26%
1145
Exide Life
96.81%
3250
IDBI Federal
91.99%
1068
Bharti AXA
96.85%
860
Exide Life
96.81%
3250
Aviva Life Insurance
94.45%
1056
Future Generali
93.11%
1202
Edelweiss Tokio
95.24%
180
Aegon Life
95.67%
530
Sahara Life
80.23%
2524
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