5 Best Term Insurance Plans and Their Benefits

Term Life Insurance covers the nominee for the policy’s duration. If the policyholder is alive at the term’s end, the nominee will not get the compensation. Having the best term insurance plans are essential to protect your loved ones. Choosing from the best term insurance is confusing to most. To make the selection of term insurance easy for you, we are going to discuss a few good term insurance plans.

Best Term Insurance Plans 2020

  1. SBI Life Term Insurance Smart Shield plan
  2. LIC e-Term Plan
  3. HDFC Click 2 Protect Plus Plan
  4. ICICI Pru iProtect Smart Plan
  5. Max Online Term Plan Plus

SBI Life Term Insurance Smart Shield Plan

This SBI Term Insurance plan is a basic individual term plan provided by SBI Life Insurance with Riders (optional). SBI Term Insurance plan is designed for Rider’s Accidental Death, Criti Care 13 Non-Linked Rider, and Permanent and Total Rider. This insurance offers two plans. They are level term insurance and increasing term insurance. With level term insurance, the assured amount is fixed. With increasing term insurance, the assured amount increases 5% p.a.

The term plan can be purchased online from the SBI’s life insurance site. There are many variations of the SBI term insurance plan. They are eShield, eIncome Shield, Life Smart Shield, Life Saral Shield, and Life Grameen. Each term plan varies to provide the best coverage. Select the best term insurance plans according to your circumstances.

The features of this SBI term insurance plan are:

  • The age limit for this plan is 18 to 60 years
  • This policy’s term can range from 5 years to 30 years.
  • At the end of this plan, the insured person’s age should not exceed 65 years
  • There are two premium payment options for this SBI term insurance plan; Single or Regular Premiums with Monthly, Quarterly, Bi-annually or Annually

LIC e-Term Plan

This is term insurance by Life Insurance Corporation (LIC) life insurance plan that is purchased online. It is a pure insurance cover that protects the insured person’s dependants. If the policyholder dies during this plan’s period, the nominee will be paid the assured sum. If not, the compensation is not paid to the nominated beneficiary.

The minimum sum assured is INR2,50,000. There is no maximum limit on the secured amount. The term of this policy ranges from 10-35 years with premium paid, annually. This insurance covers the policyholder only if they have a regular income.

The features of Online Life Term Insurance Plan are:

  • This plan is purchased online only
  • The age limit for this plan is 18-60 years.
  • This plan is cheaper than LIC’s offline term plan
  • The policy is eligible for returns within 30 days of purchase
  • Upon the policy holder’s death, the insurance amount paid to the nominee
  • The premiums rates for smokers and non-smokers is different
  • This plan can be bought by NRIs even if they are abroad

HDFC Click 2 Protect Plus Plan

This is one of the best term insurance plans provided by HDFClife. It is a pure term plan that gives the right amount of coverage for low premiums. This term insurance policy has additional options like rider accidental death benefit, to increase coverage for milestones, payouts can be claimed as a whole amount or monthly. The HDFC Click 2 Protect Plus options are Life, Extra Life, and Income Plus Option.

With the life option, the assured amount if paid in a lump sum. With extra life, the amount is paid together at a go. The assured amount is doubled if the death was an accident. The insurance claim is paid as a lump sum or monthly for 15 years. With the income plus option, the insurance amount can be claimed as a lump sum or as a monthly income for a 10-year term. Also, the monthly income can also be claimed increasingly 10% p.a.

The Features of HDFC Click 2 Protect Plus are:

  • With single premiums, the amount assured or 125% of the single premium, the higher amount is paid
  • With regular premiums, the insurance is paid 105% of the total premiums or 10 times the annual premium, and the higher amount is paid
  • This term insurance with life stage protection covers each stage of the insured person’s life.
  • The life stage protection’s add-on features are: increased in amount assured or reduction in the additional cover after the policyholder reaches 45 years of age
  • This term insurance plan premiums are tax-deductible up to INR 1,50,000
  • The insurance claim received is also tax-free

ICICI Pru iProtect Smart Plan

This term insurance is provided by ICICI Pru Life that covers 34 terminal illnesses and pays after the diagnosis. The various options with ICICI Pru iProtect Smart are Life, Life Plus, Life & Health, and All-In-One.

If the insurance holder is disabled in an accident, the insured person is exempt from premiums with the Life Nominee. But the policy will continue to provide the insurance coverage. Life Plus with Life option provides the accidental rider coverage. Life and Health with Life option provide the terminal illness rider coverage.

The features of ICICI Pru iProtect Smart are:

  • This term plan is affordable to most budgets
  • Insurance claim after the diagnosis of 34 terminal illness including AIDS
  • There are four payout options
  • Accident benefit is available for now and later

Max Online Term Plan Plus

Max Life provides this term insurance plan. This plan protects your loved ones financially against disability, disease, and death. The options for Max Online Term Plan Plus are Basic Life Cover, Life Cover + Monthly Income, and Life Cover + Increasing Monthly Income.

With Basic Life Cover, the insurance claim paid remains the same. The amount is paid after the death of the insurance holder.

With Life Cover + Monthly Income, the insurance claim is a fixed amount and paid as a monthly income. The monthly amount is 0.4% of the total predetermined amount for 120 months. This results in 148% of the insurance amount.

With Life Cover + Increasing Monthly Income, the amount paid is fixed, and a fixed amount is payable each month for ten years. Each year the payment increases by 10% to keep up with the rise in the cost of living. Select the best term plans policies and coverage with Max Life.

The features of Max Online Term Plan Plus are:

  • The age limit is from 18 years to 60 years
  • Regular monthly income payout options
  • Additional benefits like terminal illness coverage, accidental death, and premium exempt
  • The premium payment options are annual, bi-annual, quarterly, or monthly
  • Online plans can be returned within 30 days
  • The maximum age of the insured person is 85 years

In conclusion, when browsing the best term insurance plans, the individual should know the purpose of the insurance. Also, the customers should look into the various term plans and with different policies, according to your situation.

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