What is Term Insurance Plan?

If you are aware about Term insurance plan, skip this section.Term insurance Plan is a simple insurance plan where if the individual insured dies, their family / nominee would get the sum assured. There is no maturity amount in the term insurance plan. These are insurance plans that have risk coverage only. One would not get any money back on maturity.
As per guidelines from IRDA, after 3 years from the date of policy, a claim cannot be rejected citing any reason. Hence, claim settlement ratio is no more a major criteria in deciding the best term insurance plan. However it still needs to be considered as one of the point while buying a term insurance plan.

How we filtered Top and Best Term Insurance Plans in India

There are several parameters which can be considered while picking up top and best term insurance plan in India. However, I have considered 4 key parameters while picking the right term insurance plan.
1) Insurance Claim Settlement Ratio (CSR): Though CSR is not the major criteria to be considered, one has to give importance to it. As of 2015-2016, there are 62 insurance companies which are registered in India. However, only 10 companies have declared claim settlement ratio of more than or equal to 95%. CSR is one nothing but settled insurance claims over the total insurance claims received by the insurance company. Lower CSR means, company is rejecting more claims and in future your family could be victim out of that. I have filtered companies that has high claim settlement ratio of 95% to 100%.2) Insurance Company Reputation: No one can tell you how good is an insurance company. The higher the duration of the insurance company registered, it is better. Hence, we have filtered Insurance companies that have good operating history of more than 10 years.
3) Additional Features in Term insurance plan: What about good insurance company that do not offer much options? No one would really want to opt for that. I have filtered Term insurance plan which are basic features + additional features that would be helpful for individuals who are planning to take term plans.
4) Plans with Low Premium: While Premium is not the only criteria in selecting an insurance plan; we have given preference to term insurance plans which are being offered at low premiums with more features.One should do term insurance comparison before taking up a term insurance plan. You can buy term insurance online from respective insurance portals.
Here are the Top 8 Best Term Insurance Plans for 2018-2019. We are giving major features of these term insurance plans.

1) LIC e-Term Insurance Plan

• LIC is well known and trusted brand in insurance segment in India. One of the best term insurance plans that come from LIC is e-Term Term Insurance Plan. Here are the features of the LIC Term Insurance Plan.
• Minimum Entry age is 18 Years and Maximum entry age is 60 years
• Maximum maturity age is 75 Years.
• Policy tenure is between 10 years and 35 years.
• Minimum Sum Assured is Rs 25 Lakhs. For non-smokers, minimum sum assured is Rs 50 Lakhs.
• Maximum Sum Assured – No limit.
• No Riders available in this plan
• Claim settlement ratio of FY 2016-17 is 98%.
• All kinds of death including accidental deaths are covered under this plan except suicide during first year.
• One can propose on own name only and cannot take on spouse name who is not working.
• Premium is approx. Rs 19,700 per annum (Excl Taxes) for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured. Once premium is computed it would not change during the tenure of the policy.
• If you plan to work abroad or go on vacation, LIC Term insurance plan would still provide insurance coverage.
• LIC e-Term Term Insurance Plan is one of the Top Online term insurance plans in 2018-2019 as it has brand value as well as trusted by Lakhs of people in India.

The salient features of the scheme:

• Competitive rate of premium for Insurance.
• Payment of Premium for a year for getting the Life Insurance coverage.
• Rate of premium is varying to the mentioned age group.
• Members aged between 21 years to 64 years are eligible to join the Scheme.
• Spouse aged between 18 years to 64 years may join the scheme.
• No Health or Medical Underwriting is required at joining of the scheme.
• Life Insurance Coverage of Rs. 10 Lacs for member of ICAI.
• Life Insurance Coverage of Rs. 5 Lacs for spouse.
• Settlement of claims through ICAI.
• Scheme is renewable on option after 1 year on completion of due period.

2) Max Life Term Insurance Plan Plus

Below are the major features of this term insurance plan from Max Life.

• Minimum Entry age is 18 Years and Maximum entry age is 60 years
• Maximum maturity age is 70 Years.
• Policy tenure is between 10 years and 40 years.
• Minimum Sum Assured is Rs 25 Lakhs.
• Maximum Sum Assured – Rs 100 Crores.
• Comprehensive Accident Benefit Rider available in this plan.
• This plan is available in 3 coverage a) Basic Life Cover b) Basic Life Cover+Monthly cover c) Basic Cover + Increasing Monthly Income
• Claim settlement ratio of FY 2016-17 is 97.8% which is highest among all insurance companies.
• Basic Premium is approx. Rs 9,000 per annum (Excl taxes) for a 30 year non smoker for a 30 year policy for 1 Crore sum assured.
• Max Life Term Insurance plan Plus is one of the good term insurance plans for 2018 which has high claim settlement ratio and comes with low premium.

Term plans offered by Max Life Insurance can be considered as the bedrock of financial planning. These plans keep the family of the insured financially secured in case of misfortune event of his/her demise. One of the core benefits of Max Life term plans is that they offer high coverage to the policyholder at an affordable premium. You can also club these term insurance plans with various riders offered by the insurer, to enjoy additional coverage by paying an additional premium at the time of policy purchase.

Why To Buy Term Insurance Benefits?

Max Life Term Insurance policies provide multiple benefits to its valued customers. Some reasons to purchase it are mentioned below:

• Higher Coverage at Lower Premium: Max Life Term Insurance plans offer significant life cover at affordable rates. The earlier you buy the Max Life Term Insurance plan, the lower premium you will have to pay.
• High Maturity Age: Under Max Life Term Insurance plans, you can choose long term policy cover till the age of 85 years.
• Riders For Additional Benefits: Max Life Term Insurance plans come with riders that you can add to get Additional Benefits in your Max Life Term Insurance Plan. For example, Max Life Term Insurance Waiver of Premium Plus Rider offers the benefit of waiver of all future premiums based on conditions mentioned in the term insurance policy.
• Multiple Premium Payment Options: Under the Max Life Term Insurance plan you get the flexible premium payout options (Regular Pay/Limited Pay Options)
• Tax Benefits: Max Life Term Insurance Plan offers Tax Benefits under Section 80C under The Income Tax Act.

3) HDFC Click 2 Protect Plus Term Insurance Plan

Below are the major features of HDFC Click 2 Protect Plus Term plan.

• Minimum Entry age is 18 Years and Maximum entry age is 65 years
• Maximum maturity age is 70 Years.
• Policy tenure is between 5 years and 40 years.
• Minimum Sum Assured is Rs 10 Lakhs.
• Maximum Sum Assured – No limit.
• There are various options like Life Option, 3D Life Option, Extra Life Option, Return of Premium Option etc. available in this plan.
• Claim settlement ratio of FY 2016-17 is 97.6%.
• Basic Premium is approx. Rs 13,000 (Excl taxes) per annum for a 30 year non smoker for a 30 year policy for Rs 1 Crore sum assured.
• This Term plan has several riders which make this as unique term insurance plan for 2018-2019. One can review HDFC Click 2 Protect 3D Plus before considering this insurance plan.

Why To Buy HDFC Life Term Insurance?

HDFC Life term insurance offers a variety of benefits to its customers. Some of the benefits offered by them are detailed below:

• High Coverage at Low Premium: Terms plans offered by HDFC Life Insurance are quite affordable and provide significant coverage. Moreover, the earlier in life you buy a term insurance plan, the lower premium you are required to pay against the term insurance plan.
• Financial Security: The unfortunate death of the sole bread earner of the family is not just distressing but at the same time it also brings forth various financial liabilities for the family. However, by purchasing a term insurance plan by HDFC Life Insurance, the family members of the policyholder in their absence receive financial assistance in order to meet their daily expenses by the insurance company either in the form of a lump sum or through instalments.
• Flexibility: HDFC Term insurance plans provide the policyholders with a wide variety of coverage options, giving them the freedom to choose term plans according to their specific requirements and budget.
• MWPA (Married Women’s Property Act) Enrolment Benefit: To ensure that the death benefits are secured only for the family members of the policyholder legally, one can enrol in the term insurance plans offered by HDFC Life Insurance under the MWPA (Married Women’s Property Act).
• Tax Benefits: As per section 80C and 10(10D) of the Income Tax Act, a policyholder is eligible to avail tax benefits for the term plans offered by HDFC Life Insurance against the premium paid.
• Add Ons: HDFC Term Insurance Plans can be bought along with multiple add-on covers or riders to obtain additional benefits to enhance the coverage and ensure overall protection. Some of the examples of various add-ons offered by HDFC Life insurance include critical illness cover, an accidental disability rider, etc.