A type of life insurance policy, a term insurance plan essentially covers the family of the policyholder in case of his/her untimely death (during the term of the policy). Unlike endowment plans or unit-linked insurance policies that offer the component of maturity benefit to policyholders, term insurance policies offer death benefit only.
This is the reason why term insurance policies are considered to be a highly suitable insurance option as they are cost-effective. The premium rates of term plans are substantially lower than other traditional life insurance policies. Term insurance policies can be purchased by any individual who has financial dependents. Some of its advantages are mentioned below:
- Term plans can be purchased online with just a click of a button.
- Since there is no involvement of a middleman or agent, the cost of the term policy will be significantly cheaper.
- Since you are filling up the form on your own, you are more likely to make fewer mistakes.
- The death benefit offered by term insurance policies will help your family tide over financial losses in case of your untimely death during the term of the policy.
5 Best Term Insurance Policies of 2019:
LIC’s e-Term Plan: It is a non-participating regular premium term plan that can be purchased online only. Through this plan, one can ensure the safety of one’s family members in case of his/her demise during the policy term. The plan does not involve any intermediaries and can be purchased via the online method only. LIC’s e-term plan can be bought on the official website of Life Insurance Corporation of India.
Eligibility Criteria of LIC’s e-Term Plan:
Minimum sum assured amount – Rs.25 lakh for the aggregate category and Rs.50 lakh. for the category of ‘non-smoker’. There are no limits on the maximum sum assured amount.
Minimum age of entry – Policyholder must have completed 18 years.
Maximum age of entry – Policyholder should turn 60 years on the nearest birthday.
Minimum term of the policy – 10 years.
Maximum term of the policy – 35 years. 2
ICICI Pru iProtect Smart: This is more than a term policy that offers extensive protection to the policyholder and his/her family members. ICICI Pru iProtect Smart provides coverage against 34 critical illnesses. Moreover, if the policyholder has been diagnosed with one of the specified 34 illnesses, the claim will be given out upon first diagnosis itself. Additionally, the plan also offers accidental death cover up to the amount of Rs.2 crore. This plan also offers a terminal illness benefit for AIDS in which a life cover is provided to the policyholder (upon diagnosis of AIDS). There are 4 payout options that one can choose from. These are – lump-sum, income, increasing income, and lump-sum plus income option.
SBI Smart Shield: It is a traditional non-participating pure term plan that offers protection to the policyholder and his/her family members. It instills a sense of security with its features and benefits. Through SBI Smart Shield, one can ensure the security of one’s family, enjoy the flexibility to choose from two plan alternatives, and appreciate its affordability through add-on features such as rider benefits available at cost-effective rates.
HDFC Click 2 Protect Plus: This plan offers a wide array of cover options that the policyholder can choose from, depending upon his/her needs and requirements. In case of your absence in the future, your family can take care of their daily needs through the plan’s monthly income feature under the Income and Income Plus option. Through HDFC Life Click 2 Protect Plus, one can not only safeguard the financial stability of one’s family but also help them maintain a certain standard of living in the future in case of their absence.
Max Online Term Plan Plus: It is essentially a pure protection plan that gives out a fixed sum assured amount to the family members of the policyholder. It also safeguards the financial future of the family of the policyholder against risks such as Diseases, Death, and Disability.
Eligibility Criteria of Max Online Term Plan Plus:
- Minimum entry age for the plan – 18 years.
- Maximum entry age for the plan – 60 years.
- The policyholder can choose the option for regular income payout.
- For the payment of premiums, policyholder can choose the limited pay option.
- The policyholder can also add certain other elements to enhance the cover. He/she can choose to add benefits such as accidental death and dismemberment, critical illness cover, and waiver of premium.
- The policy offers a freelook period of one month (30 days). However, this option will be available in case of online purchase only.
- The policyholder can choose to revive his/her policy within a period of two years from the first unpaid premium.
The above-mentioned term insurance policies offer multiple benefits that might or might not be suitable for you. However, the insurance market is currently flooded with insurers providing comprehensive term plans to policyholders. Read through the features and choose a plan that best suits your financial requirements and needs.