Insurance agents, to achieve their targets and earn high commissions, might persuade you to choose insurance plans that they claim to give high returns at the maturity date. But experts say that insurance is not an investment plan. If you choose an insurance policy expecting it to be productive, it will neither give a good financial protection to your family nor high returns. However, it should not be misunderstood that insurance plan is a bad idea. An insurance policy is beneficial if the right plan is chosen that benefits your family after your death.
What is a term insurance plan?
There are different types of insurance plans catering to various needs of the people. Term insurance is a plan that provides financial protection to the family of the policy buyer after his/her demise. It is not repayable if the policyholder survives at the maturity date. It can benefit the buyer’s family only in the event of death.
We have put together 7 best term insurance plans in India based on high claim settlement and features that are offered on the plan.
1. LIC e-Term Insurance Plan
LIC has claim settlement ratio of 98% which is the highest percentage among all the other insurance providers. LIC e-Term insurance plan is a non-participating online term policy which provides a financial protection to the family of the policy buyer. The maximum tenure on the cover is up to 35 years and anyone who is 18 years old and above can take this policy. If the policy holder dies within the 12 months of taking the insurance, only 80% of the premium shall be paid till the date of death.
2. ICICI Pru iProtect Smart
This term insurance plan offered by ICICI bank is the only plan that offers claim payment on diagnosis of 34 critical illness. The claim settlement ratio on this plan is 96.68% during the financial year 2016-17. Under this scheme, you can get cover up to 75 years of age and you can get three types of tax benefits. With 4 pay out options, this term insurance plan is an ideal protection for your family.
3. SBI Smart Shield
It is a pure term insurance plan that offers a complete financial protection to your family in the event of your death or any unfortunate event. This plan comes with three rider options at affordable cost. They are ‘Accidental death benefit rider’, ‘Accidental total and permanent disability benefit rider’ and ‘Criti care 13 Non-linked rider’. The minimum sum assured is INR 25 Lakhs and there is no ceiling is on the upper limit.
4. HDFC Click 2 Protect Plus
This term insurance plan offered by HDFC bank provide protection to your family members against your death, disease and disability. This term insurance is ideal for a person who is the sole breadwinner of the family. The maximum tenure is for up to 40 years and there is no ceiling on the upper limit to be insured. This plan comes with four options such as Life Option, Extra Life Option, Income Option and Income Plus Option. The buyers can choose the right option according to their requirement.
5. Max Online Term Plan Plus
It is a comprehensive term plan that covers your death, disability and disease. You can get cover up to 75 years of age. Max Life insurance has been maintaining greater than 95% of claim settlement ratio for the past 3 years. There are three options available under this scheme namely basic life cover, basic life cover + monthly income and basic life cover + increasing monthly income. Annul premium amount differs for each option with the slight change in the benefits.
Choosing a term insurance plan is a wise financial decision as it would benefit your family members in the event of your death or any unfortunate incidents. Also, keep in mind that insurance policy is not an investment but a safety cover for your family.