Know About Best Term Insurance Plans in India 2021

Know About Best Term Insurance Plans in India 2021

Term insurance is a type of life insurance that offers comprehensive financial protection against the uncertainties of life. Depending on the term insurance plan you have purchased;

In case of your untimely death during the policy term, your family will get the Sum Assured.

The money received in your absence will help your family members to face financial difficulties.

Know About Best Term Insurance Plans in India 2021

When you consider buying a term insurance policy, you need to know and understand the meaning of term insurance.

Along with this, it is also important to know which plan will be eligible for your family and you.

For example,
the life cover of the term insurance chosen by you should be sufficient to meet the financial needs of your family for regular expenses, children’s education, and other obligations.

Today I will explain to you a lot of detail about term insurance plan step-wise.

Table of Content

  1. What are the features of a best term insurance plans in India?
  2. How to buy a term insurance policy?
  3. When and why should a medical test be done?
  4. Who should buy a term insurance plan?
  5. Best Online Term insurance Plans in India 2021
  6. Best offline term insurance plan in India 2021
  7. Frequently Ask Questions| FAQ

1-What are the features of a term insurance plan in India?

Now that you have an idea of what term insurance is, you must be aware of the features and benefits of term insurance plans.

The primary benefits and features of term insurance are as follows.

Know About Best Term Insurance Plans in India

1.1- Coverage against possible life events

If you are the sole breadwinner in your family, a term insurance policy can help you to protect your family members against the unfortunate event of your death and protect them against any financial loss,

This policy enables you to provide a worry-free financial future for your family.

You can get a significant life cover under these term insurance plans by paying comparatively small premiums.

For example,

  • If you are a non-smoker (non-smoker) woman of 25 years,
  • So you can buy a term insurance plan with Rs.50 lakh life cover and pay for the next 35 years,
  • Your premium will be around Rs. 3,599 to 7500 per annum (inclusive or excluding taxes).
  • You can use online term insurance premium calculators to see how your premium liability varies as you age.

1.2- Cover for critical illness

In your 20s and 30s, you may feel that you will never have a serious illness like cancer or kidney failure.

However, if this happens, not only does your health deteriorate

You may also lose your hard-earned savings to get the treatment you need.

Even though term insurance plans offer death benefits without any special features, you can increase the coverage with a critical illness rider.

  • As the name suggests, a critical illness rider offers additional benefits when paired with your term insurance.
  • That is, in case of any disease covered under the rider, a lump sum amount is paid to you to cover any financial loss to your family

1.3- Accidental death or disability

  • Accidents can happen anytime and anywhere. Depending on its severity, you may need a significant amount to cover your medical expenses and loss of income.
  • Popular term insurance plans with accidental death or disability riders help you deal with situations like these.

1.4- Multiple payout options

If you feel that your family members do not have the necessary information to handle large sums of money

They may find it difficult to utilize the lump sum amount they receive under your term insurance policy, 

so you can choose from the multiple payout options available with a term insurance plan.

For example,

  • You can opt for a term insurance plan that offers an immediate lump sum amount for your family on death and a fixed amount every month.
  • In this way, your term insurance policy will act as a regular income source for your family.

2- How to buy a best term insurance plans in India 2021?

The importance of buying a term insurance policy, you need to research the term insurance plan in detail.

Buying a term insurance plan online is easy and hassle free. You just need to follow a few simple steps.

Know About Best Term Insurance Plans in India

The stepwise checklist for you to follow to buy a term insurance policy is as follows in the diagram.

2.1. Evaluate Your Financial Needs

  • Before you opt for a term insurance policy, you should fully understand your family and your financial needs and requirements.
  • Whichever policy you choose, it should have enough life cover to take care of your family’s needs in your absence.
  • Start with an analysis of all sources of income, number of dependents, current financial liabilities, and lifestyle expenses of your family.
  • Apart from this, the life goals (life goals) of the spouse and children should also be considered

2.2.Estimate Term Insurance Policy Premium

After assessing your financial needs, the next step is to calculate the term insurance premium for your term insurance policy that you need to pay.

When you search online, you will find that there are many types of term insurance plans available.

These include basic term insurance plans, term insurance with survival benefits (term plans in which premium is returned), and term insurance with various payout options.

  • The premium to be paid under a term insurance policy depends on several factors, such as the life cover chosen, policy term, plan type, age, gender, and smoking habits

2.3. Check Claim Settlement Ratio (CSR)

  • Before proceeding to choose a term insurance policy, you must check the CSR of the insurance company you have chosen.
  • CSR is the ratio of claims settled by the insurer to the number of claims received by the insurer during a financial year.
  • A high CSR indicates that the insurance company does its best to settle the claim filed by your nominee.

2.4. Choose Riders for Extra Coverage

  • Depending on your needs and preferences, you can customize the term insurance policy with add-ons, also known as riders.
  • Term insurance riders are optional features, and you can add to your basic plan to increase your insurance coverage.

2.5. Pay term insurance premium online

Once you reach this stage, you have all the information you need to make a wise decision to buy a term insurance policy.

The last step in this checklist is to pay the premium online.

  • Before choosing an adequate life cover and riders, you need to provide details about your income, profession, current address, and lifestyle habits.
  • You can be redirected to pay the premium online using any of the multiple payment modes.

3- When and why should a medical test be done?

A term insurance plan acts as a financial backup for your family in case of your untimely death.

As a part of buying a term insurance plan, you may ask to undergo medical tests.

While you might think that there is no need for these tests, it is not.

Know About Best Term Insurance Plans in India

4- Who should buy a best term insurance plans in India?

If you start earning, then you should take a term insurance policy.

A term insurance policy is a must if your family members are financially dependent on you.

Whether you are 18 years old or 65 years old, the term plan covers you.

5- Best Online Term insurance Plans in India 2021

Term Plans

Age Limit

Maturity Age

Policy Range

Premium Pay Option

Sum Assured

18 / 60 Years 

70 

10 - 35 years 

Annual 

Rs 25 lakh 

18 / 70 Years 

80 

10-40 years 

Annual, Semi-Annual, Single 

Rs 50 lakh 

18 / 60 Years 

75 

10-35 years 

Annual 

Rs 25 lakh to 50 lakh

18 / 65 Years 

75 

10-40 years 

Monthly & Annual

Rs. 10 lakh 

18 / 65 Years 

75 

10-40 years 

Monthly, Yearly, Single 

Rs 25 lakh 

6- Best offline term insurance plans in India 2021

Term Plans

Age Limit

Maturity Age

Policy Range

Premium Pay Option

Sum Assured

Bajaj Allianz iSecure More 

18 / 60 Years 

70 

10 - 35 years 

Annual 

Rs 25 lakh 

HDFC Life CSC Suraksha Plan 

18 / 70 Years 

80 

10-40 years 

Annual, Semi-Annual, Single 

Rs 50 lakh 

SBI Life - Smart Shield 

18 / 60 Years 

75 

10-35 years 

Annual 

Rs 25 lakh to 50 lakh

SBI Life - Grameen Bima 

18 / 65 Years 

75 

10-40 years 

Monthly & Annual

Rs. 10 lakh 

7- Frequently Ask Questions| FAQ

1- What is a best term life insurance policy?
Term insurance is a type of life insurance that offers comprehensive financial protection against the uncertainties of life. Depending on the term insurance plan you have purchased;

In case of your untimely death during the policy term, your family will get the Sum Assured.

2- What is LIC Term Insurance?
Amulya Jeevan-II: Amulya Jeevan – II is a term insurance plan by LIC, which assures death benefit to the nominee on the death of the policyholder.

E-Term Plan-You can buy online with the help of the official website of the insurer.

3- Is there a difference between life insurance and term insurance?
What are whole life insurance plans: Under the entire life insurance policy, the insured is covered till death or on reaching the age of 100 years

Term Policy-Term life insurance is usually for a term of up to 5, 10, 15, 30, or 75 years and the death benefit is paid only if the death occurs during the term of the policy.

4- Why is a term plan necessary?
A term insurance plan is beneficial for any individual. This ensures that the needs of your family for food, clothing, shelter, etc.

Continue to be met when you are away.
Every earning person saves to achieve your goals. They decide the goal of buying a house.

5- Why take a term best insurance plans in India 2021 for a family?
It is possible to buy family term insurance. In this, joint-life benefit also, in which the spouse has also covered i.e.

insurance of both. Even if one dies, the policy will continue till the death of the other.

Family finances are linked, and if you are buying a term plan will ensure coverage and financial security in case of an emergency.

There is also an option to return the premium on maturity. The premium is slightly higher than pure term policies, but this selection will help meet the family expenses on maturity.

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