Guide To Term Insurance Plans In India.

A term plan provides protection in the form of financial assistance on death but only for a given time period. The time period is decided during the inception of the policy. It applies only to the policyholder and the death benefit is paid to the family. The death benefit is the payout that the policy will provide to your family once you have passed away. 

The most important reason to buy a term insurance policy is to secure your family's future. It will provide financial stability and assistance to your family needs. The payouts will help your family live a comfortable life. Your family can clear all your existing debts. A term plan provides high cover at the cost of an affordable premium. 
 
Below is a list of the comparison of the top term insurance plans in 2021. 

Top 10 List of Term Insurance Plans 

Here's a list of the top 9 term insurance plans in India: 

1. Bajaj Allianz Smart Protect Goal

Your nominees can avail of the benefits in case of your Accidental Death in the form of Accidental Death Benefit if the death was caused within 180 days of the accident. Accidental Total Permanent Disability Benefit can be availed in case of any permanent and total disability suffered due to an accident. Critical Illness Benefit helps you to obtain the sum assured chosen for critical illness benefit on diagnosis of suffering from the critical illness. Waiver of Premium Benefit and Surrender benefits are available under this term plan of 75 lakhs. Tax benefits are available on the premium paid and on the claim amount obtained under the provisions of Section 80C and Section 10(10D) of the Income Tax Act, 1961.

2. Bajaj Allianz eTouch Online Term Plan

It is one of the affordable term plans that can be purchased online in a simple and hassle free way. In case of demise, the policy offers a guaranteed annual payout to the family for 15 years. Tax benefits can be availed under Section 80D and 10 (10D). The plan offers two different options for payouts. The maximum maturity age of the policy is 70 years. The plan offers a free-look period of 15 days. 

3. Aegon Life iTerm Plan

This plan can be purchased online in a simple and easy process. The minimum entry age of the policy is 18 years, whereas the maximum entry age of the policy is 65 years. The maximum maturity age of the policy is 80 years. The insured can avail tax benefits under Section 80D of the Income Tax Act, 1961. In case of the demise of the insured, death benefit is paid to the beneficiary of the policy. The plan offers flexibility on premium payment mode. The plan offers a lower premium rate for non-smokers and female insurers. 

4. Aditya Birla Sun Life Protector Plus Plan

The plan provides complete financial protection at a minimum premium rate. Protects against cost of living with the option of increasing the sum assured. The plan comes with an inbuilt total and permanent disability cover to enhance the coverage of the policy. The beneficiary can receive the death benefit as annual income. Policy rewards are offered for maintaining a healthy lifestyle. The plan offers rider options to enhance the coverage of the policy. The policyholder can save on tax under Section 80D of the Income Tax Act, 1961. 

5. Aditya Birla Capital Digi Shield Plan

The Aditya Birla Capital DigiShield Plan offers complete financial protection at a nominal cost. The minimum age for entry into the policy is 18 years and the maximum age is 65 years. The sum assured is paid to your nominee in case of your sudden demise during the tenure of the policy. You can choose for an increase in the life cover at the occurrence of life events such as marriage, childbirth, etc. You can include riders into your base plan and enhance your coverage by paying an additional premium. Some of the major riders are Critical Illness Rider, Accidental Death and Disability Rider, Hospital Care Rider, Surgical Care Rider, etc. You can even cover your spouse under this same policy which also offers flexibility in the premium payment terms.

6. Aviva Life Insurance iTerm Smart

The Aviva Life Insurance iTerm Smart plan provides life cover at a nominal cost along with the benefit of protecting against critical illnesses and disabilities.The minimum age for entry into the policy is 18 years and the maximum age is 65 years. You can avail of the benefit of life stage protection which would help in enhancing the coverage amount and would need no medical examination for this. You can avail the benefit of enhancing the cover till 80 years of age with a maximum policy term of up to 62 years. The minimum sum assured is Rs. 75 lakh and the maximum sum assured can be up to Rs. 25 crores. Premium payment can be done by monthly, quarterly, half-yearly or by an annual method.

7. LIC Tech Term Insurance Plan

LIC Tech Term Insurance Plan is a non-linked, non-participating online premium plan that offers the required financial protection of the insured's family in case of his/her unfortunate demise. You can avail the plan through an online application process and no intermediaries will be involved. A free-look of 30 days from the policy receipt date is provided by the company. The policyholder can return the policy if he or she is not satisfied with the clause of the policy. NRIs will be covered under this policy even if they are not in the country but should be present in the country for medical tests. 

8. Ageas Federal iSurance Flexi Term Plan

The policyholder can opt for an accidental death benefit rider option to increase the coverage of the policy. The policyholder can save on taxes under Section 80D of the Income Tax Act. The policy offers a rebate on a higher sum assured amount and for the female policy buyers. 

9. Kotak e-Term Plan

The minimum age for entry into the Kotak e-Term plan is 18 years and the maximum age is 65 years. Your nominee would receive the sum assured as Death benefit on your demise during the policy term. Premium payment can be done conveniently by Regular pay, Limited pay or by Single pay method. Critical illness riders can be included in the base plan which helps in paying a lump sum amount on the occurrence of any disease out of the 37 specific critical illnesses.

10. Future Generali Flexi Online Term

The minimum age for entry into the Future Generali Flexi Online Term plan is 18 years whereas the maximum age is 55 years. Your nominee will be paid with the total cover benefit in the form of a lump sum amount in case of your death during the policy tenure. The maximum coverage under the Future Generali Flexi Online term plan is up to the age of 75 years. The premium payment frequency is annually and the premium payment term is equal to the policy tenure for this term plan of 75 lakh. Tax benefits can be availed for the premium paid and the claim amount under the provisions of Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Conclusion

Most people buy a term insurance plan because of its simplicity and affordability. There are a lot of options to choose from. If the purchaser does not read and compare different policies he or she might not find the one which is best suited for them. Hence above given is a comparison of the top term insurance plans in India.

Also read - How Can Term Insurance Be Used As A Retirement Plan?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.