Compare & Get The Best Term Insurance Plans

Choose from 31 plans from 19 companies

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What is Term Insurance?

Term insurance is a type of Life insurance wherein the insured person covers himself for a specific period. If something happens to that person during that period, the cover amount will be paid to the nominee.

What is Term Insurance Premium Calculator?

It is an online tool that helps you to calculate the life insurance cover you will need to financially secure your income and savings. This helps you estimate the life insurance cover amount needed to financially secure your income. Based on this cover amount, you can calculate the premiums to be paid for different policy terms.

Who Should Buy Term Life insurance?

Term Life insurance is a must-buy for a person

who is the bread earner of the family
who has major financial responsibilities such as children's education or wedding expenses to be incurred in the future
who doesn't have sufficient savings or investments but wants to safeguard financial sustenance of his family
who has debts such as a home loan

Eligibility Criteria to buy Term Life Insurance Plan

General eligibility criteria for buying Term Life Insurance are -

Parameter	Remarks
Citizenship	Indian (NRIs & PIOs can also purchase Term Life Insurance plans from various Indian insurers)
Medical Tests	Most insurers require you to undergo certain medical tests.
Tobacco consumption	Both smokers & non-smokers are eligible to buy.
Documents	Buyer must possess basic KYC documents.

Best Term Insurance Plan In India in 2023

These are a few of the best term insurance plans available in India. You can get various Term insurance comparisons on MyInsuranceClub.

Max Life Smart Term Plan

HDFC Life Click 2 Protect

ICICI Prudential iProtect Smart

Sampoorna Raksha Supreme Instaprotect

Smart Protect Goal

Mera Term Plan Plus

Kotak e-Term Plan

DigiShield Plan

What are the types of term insurance plans in India?

Some of the standard types of term insurance are as follows:

Level Term Plan

A Level Term Life insurance policy offers fixed death benefits for the entire policy tenure. Regardless of whether the insured dies on the 5th or the 25th year of his 30-year policy tenure, his beneficiaries will get the same amount.

Increasing Term Plan

The coverage amount chosen by the insured at the commencement of the policy increases every year by a predetermined amount to cope with the inflation.

Decreasing Term Plan

Decreasing term insurance is a type of term life insurance with the cover decreasing over the life of the policy at a predetermined rate. If you want your life insurance to cover a temporary financial liability, you can purchase a decreasing term plan.

TROP - Term with Return of Premium

TROP pays back the total annualized premium excluding taxes at the end of the policy tenure if the insured survives.

Benefits of a term plan

The main benefits of a term insurance plan are as follows

It is a type of pure risk cover plan

High sum assured at lower costs

Cheapest type of Life Insurance

Tax rebates under section 80 C

Can be used to cover a home loan

Replaces income after the demise of the breadwinner

Additional riders are available

Critical illnesses are covered

What are the types of riders for Term Life insurance

The most popular riders are as follows:

Critical Illness Rider

Under critical illness rider a lump sum amount is provided to the family of the life assured in case the life assured is diagnosed with a listed critical illness during the policy tenure.

Waiver of Premium Rider

This rider ensures that benefits of the policy continue even if the policyholder is unable to pay policy premiums due to a critical illness or death. All the future premiums are waived off.

Accidental death and dismemberment Rider

This rider pays the accidental death benefit in case the insured dies an accidental death or faces a dismemberment.

Partial and Permanent Disability Rider

This rider provides an additional benefit equal to the rider sum assured on total & permanent disability due to an accident.

Compare different companies' term plans in tabular format

HDFC Life

₹ 638

ICICI Prudential

₹ 599

Max Life

₹ 521

Aditya Birla Sun Life

₹ 12,981

Bajaj Allianz Life

₹ 483

Kotak Life

₹ 452

India First

₹ 337

PNB Metlife

₹ 491

Tata AIA

₹ 682

Canara HSBC OBC Life

₹ 518

Edelweiss Tokio Life

₹ 423

Bharti Axa

₹ 450

4 Tips for choosing the best term insurance plan for yourself

Check the claim settlement ratio of that particular company.
Check for rider facilities if required.
Cost of premium.
Solvency ratio of your insurer.

Using these 4 tips, you can buy yourself the best term insurance plan.

5 factors you need to consider before buying a term plan

Assess your current life stage & dependants.
Analyze your current lifestyle and standard of living.
Evaluate your assets and liabilities.
Analyze your current income.
Choosing adequate risk cover.

Documents required for Term Life insurance plans

To buy a Term Life insurance plan, one has to submit the following documents:

Plan Proposal Form duly filled in and signed

A passport-sized photograph

A valid Identity Proof and Address Proof

Date of Birth Proof

Income Proof

Medical test reports if needed

Claim settlement ratio of Life Insurance companies

Company Name	2020 - 21
HDFC Life	98.0%
ICICI Prudential	97.9%
Max Life	99.3%
Aditya Birla Sun Life	98.0%
Bajaj Allianz Life	98.4%
Kotak Life	98.5%
LIC	98.6%
PNB Metlife	98.1%
SBI Life	93.0%
AEGON Life	99.2%
Exide Life	98.5%
Canara HSBC	97.1%
Tata AIA Life	98.0%
Edelweiss Tokio	97.0%
Bharti Axa Life	99.0%
Reliance Nippon Life	98.4%
DHFL Pramerica	98.6%
Future Generali Life	93.0%
Aviva Life	98.0%
Sahara Life	97.1%
IDBI Federal Life	95.0%
Star Union Daichi	95.9%
Shriram Life	95.1%
IndiaFirst Life	96.8%

Term insurance plan variants

You have a large number of variants among the term plans on offer. While the base variant offers a life cover, the variants add more benefits in terms of cover and payments. Some of the popular term plan variants are as follows:

Life Cover with one rider, say a Critical Illness Rider
Life Cover with multiple riders taken together, say a Critical Illness Rider and an Accidental Death Benefit Rider
Nominee gets payment in a lump sum or at regular intervals

Terms related to term insurance plan (Glossary)

Sum Assured

A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder's demise.

Policy Term

Policy term refers to the period for which your term insurance policy will remain active. This period is determined at the time of purchasing the insurance plan.

Premium Payment Term

Premium payment term is the total number of years the policyholder has to pay the premium.

Premium Payment Mode

Your mode of premium payment determines the frequency with which payments are made. It could be Annual, Half-yearly, Quarterly or Monthly.

Free Look Period

A free look period is the time period when a new life insurance policyholder can terminate the policy without any penalties.

Claim Settlement Ratio

The claim settlement ratio is a metric used to gauge the percentage of life insurance claims an insurer has settled during a financial year against the number of claims it has received including pending claims.

Nominee

A person who receives the benefit in case of death of the insured person is a nominee.

Tax Benefits

Tax Benefits refer to the insurance premiums amounts which can be deducted from the taxable income for the purpose of calculating your income tax liability.

FAQs related to term insurance plan

Below mentioned are the most Frequently Asked Questions on Term Insurance.

What policy term should I select?

You should choose a policy term till your retirement age or maybe till a few years after retirement. Term policy is taken to cover the risk of loss of income. So ideally take a term policy for a period in which you will be earning money. Beyond that period, the premiums paid by you will become a burden for you.

Why is there so much difference in premiums in online & offline term plans?

The outbreak of Coronavirus (Covid-19) has devastated the healthcare industry. Your health insurance policy will cover the hospitalisation expenses arising from Covid-19 disease. There are also specific health plans for Covid related treatment.

Will I have a problem at the time of claim if I buy an online term insurance plan?

One can make any number of claims in a year. The limit of claims is the cover amount chosen by the policyholder and not the count of claims. You can make as many claims as you want in a policy year, as long as you do not exhaust your cover amount.

Is it secure to buy online term insurance plans?

You get a free look period of 15 days after you buy a health policy. During this period, you can cancel your policy and get a refund. Even after the free look period, If no claims have been made, you can cancel the health insurance policy anytime and get a partial refund depending on the time of cancellation - Know more here.

What is the difference between term and endowment insurance plans?

There are benefits of buying health insurance at any early age. The chances of any pre-existing illnesses are low, so your policy will get issued without an issue. You can also accumulate No-Claim Bonus and enjoy an increased cover amount as chances of claims are lesser when you are young and healthy. Also, the health insurance policies offer lifelong cover - so once accepted, the cover will continue for life as long as you keep renewing on time.

Why is there a vast difference in premiums of various term insurance plans?

Yes, you can transfer your medical insurance policy from one health insurer to another. The process of transferring your policy is known as health insurance portability. You can do the transfer at the time of renewal. You should initiate the process 45 days from the date of renewal of your current policy. Know more about health insurance portability.

How much insurance coverage is required?

A family floater health insurance plan provides coverage to the policyholder, spouse, dependent children and parents. You can take a single cover for your entire family or select a dedicated cover amount for each family member. Plans which have a single cover for all your family members are called Family Floater Health Insurance Plans.

Why choose MyInsuranceClub?

Every Health Insurer has tie-ups with several hospitals where the insured person can avail cashless treatment benefit. Such hospitals are known as Network Hospitals of that insurance company. If you avail treatment at a network hospital of your plan, you can avail cashless treatment. If not, you will have to make the payment to the hospital and the insurer will pay your back through the process of reimbursement claim.

What is the term insurance claim process?

Yes, definitely. You can have more than one health insurance plan. Very often, you end up with a corporate plan provided by your employer and your personal health insurance plan. You can make a claim from any of the health insurance plans which you have.

What are the payout options in term life insurance?

You may have to undergo a medical test before you buy a mediclaim policy if your age is above 45 years or if you have a health condition. The need for medical tests will depend on the underwriting standards of the insurer. Medical tests are conducted to know if there are any pre-existing illnesses and to assess your overall health before issuing the best medical insurance policy.