Term insurance is one of the most important types of insurance policies. If you are a family person with a dependent spouse and children, a term insurance coverage policy should be a part of your financial portfolio. With a term plan, your family will get complete financial aid in case something were to happen to you in the near future. In short, a term insurance policy is a protection plan for your family in times of your absence.
At Coverfox, we have a wide range of term insurance plans for you to select, all at a click of a button. Now, you can easily buy, compare, and renew your favorite term cover policy in under 5 minutes.
Why are Term Plans Important?
As mentioned above, a term insurance policy is necessary if you are the sole breadwinner of your family. Accidents are uncertain. You will never know what will happen in the future. One thing is for sure; your family will require a regular source of income after you are gone. You do not want to leave them with outstanding debt. Neither should your family compromise on their standard of living. So buy a term plan today and live a stress-free life. Here are five reasons to buy a term insurance cover:
Here is a list of the most popular term policies in India. Plus, you can get all of these plans mentioned below on Coverfox!
Term Plans offered by the Government of India
eTerm Plans - Online Term Plans are plans that can be purchased online. The entire buying process is paperless, time-saving, hassle-free, and fast.
| Term Insurance Plan | Policy Term | Entry Age | Cover Amount (Min/Max) |
|---|---|---|---|
| SBI Life eShield Plan | 18-65 years | 18-65 years | Rs. 25 lakhs |
| Max Life Online Term Plan Plus | 18-60 years | 18-60 years | Rs. 2 Crores |
| LIC E-Term Plan | 5-75 years | 18-65 years | Rs. 25 lakhs | Rs. 50 lakhs | Rs. 75 lakhs |
| Future Generali Flexi Online Term Plan | 10-65 years | 18-65 years | Rs. 50 lakhs |
| IDBI Federal iSurance Flexi Term Plan | 10-62 years | 18-60 years | Rs. 50 lakhs to Rs. 30 Crores |
| ICICI Prudential iProtect Smart | 18-60 years | 18-60 years | Rs. 50 lakhs to Rs. 1 Crore |
| Canara HSBC iSelect+ Term Plan | 5-62 years | 18-65 years | Rs. 15 lakhs to Rs. 3 Crores |
| Bajaj Allianz eTouch Lumpsum | 18-65 years | 18-65 years | Rs. 50 lakhs minimum |
| Aegon Life iTerm Plan | 18-65 years | 18-65 years | Rs. 35 lakhs to Rs. 50 lakhs |
Disclaimer: The above information has been sourced from the official website of the respective insurance company. (last updated on 26-10-2020)
| Term Insurance Plan | Policy Term | Entry Age | Cover Amount (Min/Max) |
|---|---|---|---|
| Tata AIA Maha Suraksha Supreme | 10-40 years | 18-70 years | Rs. 50 lakhs to Rs. 2 Crores |
| SUD Life Abhay | 15-40 years | 18-65 years | Max. life cover of Rs. 100 Crores |
| Shriram Life Cash Back Term Plan | 10-25 years | 12-50 years | Rs. 2 lakhs - Rs. 20 lakhs |
| SBI Smart Shield | 18-60 years | 18-60 years | Rs. 25 lakhs |
| Sahara Kavach | 15-20 years | 18-50 years | Rs. 5 lakhs minimum |
| PNB MetLife Mera Term Plan | 18-65 years | 18-65 years | Rs. 10 lakhs to Rs. 5 Crores |
| IndiaFirst Anytime Plan | 5-40 years | 18-60 years | Rs. 10 lakhs to Rs. 49 lakhs |
| HDFC Life Click2Protect 3D Plus | 18-65 years | 18-65 years | Rs. 1 Crore |
| Exide Life Smart Term Plan | 10-30 years | 18-65 years | Rs. 5 lakhs to Rs. 10 lakhs |
| Edelweiss Tokio Life My Term+ | 10-85 years | 18-65 years | Rs. 25 lakhs to Rs. 50 lakhs |
| Aviva LifeShield Advantage Plan | 10-30 years | 18-65 years | Rs. 50 lakhs |
| Aditya Birla Sun Life Protector Plus Plan | 5-70 years | 18-65 years | Rs. 30 lakhs minimum |
Disclaimer: The above information has been sourced from the official website of the respective insurance company. (last updated on 26-10-2020)
Here is a comparative list of the top 5 term insurance cover policies in the current insurance market.
| Best Term Insurance Plan | Age at Entry | Sum Assured | Policy Term |
|---|---|---|---|
| ICICI Pru iProtect Smart | 18-65 years | Rs. 10 lakhs min, no such limit on max. amount | 5-40 years |
| Aegon iTerm Plan | 18-65 years | Rs. 25 lakhs min, no such limit on max. amount | 5-40 years |
| HDFC Click 2 Protect Plus | 18-60 years | Rs. 10 lakhs min, no such limit on max. amount | 10-40 years |
| Max Life Term Insurance Plus | 18-60 years | Rs. 25 lakhs min Rs. 100 Cr max | 10-40 years |
| LIC’s e-Term Plan | 18-60 years | Rs. 50 lakhs min, no such limit on max. amount | 10-35 years |
Disclaimer: The above information has been sourced from the official website of the respective insurance company. (last updated on 26-10-2020)
Another aspect that must be looked into is the claim settlement ratio (CSR) of the insurance company. Claim settlement ratio is the ratio of no. of claims settled to the number of claims received, for a single financial year. The higher the claim settlement ratio, the better the financial strength of the insurance company.
Here is a list of insurance companies along with their claim settlement ratios.
Claim Settlement Ratio of all the Life Insurance companies for the financial year 2018 - 2019 as per the data released by the Insurance Regulatory and Development Authority of India (IRDAI)
| Life Insurer | Based on % of Policies | Life Insurer | Based on % of Policies |
|---|---|---|---|
| LIC of India | 97.79% | ICICI Prudential Life | 98.58% |
| Aditya Birla Sun Life | 97.15% | IDBI Federal Life | 95.79% |
| Aegon Life | 96.45% | India First Life | 92.82% |
| Aviva Life | 96.06% | Kotak Mahindra Life | 97.40% |
| Bajaj Allianz Life | 95.01% | Max Life | 98.74% |
| Bharti Axa Life | 97.28% | PNB Met Life | 96.21% |
| Canara HSBC OBC Life | 94.04% | Reliance Nippon Life | 97.71% |
| DHFL Pramerica Life | 96.80% | Sahara Life | 90.16% |
| Edelweiss Tokio Life | 95.82% | SBI Life | 95.03% |
| Future Generali Life | 95.16% | Shriram Life | 85.30% |
| HDFC Standard Life | 99.04% | Star Union Dai-ichi Life | 96.74% |
| Exide Life | 97.03% | Tata AIA Life | 99.07% |
Disclaimer: The claim settlement ratio has been sourced from the official annual report of IRDAI.
In Simple Words,
A term plan is like a backup policy, on behalf of you, for your entire family. It is the best form of protection cover that you can leave your family with. Know more about term plans online, on Coverfox.