Which is the best term insurance plan in India?

Term life insurance is a good defensive game plan” – Dave Ramsey.

Many young people and recent graduates believe that work-life balance is the ultimate goal in life, but only a tiny percentage consider savings and return on investment (ROI). This insurance educational blog is not only aimed at the vigilant ones but also those young souls.

They should start thinking about their lives and tackle crises when life meets with unexpected events in the coming decades.

This blog will allow you to reflect on your own life. And contribute to a better structured and crisis-managed existence.

What is Life Insurance? 

In a cliche definition, life insurance is a contract between an insurance policyholder and an insurance company. The insurer promises to pay a set amount of money in return for a premium upon the death of an insured person or after a predetermined period.

In short, life insurance acts like a life jacket that protects you and your loved ones financially in dire times. It ensures that you and your loved ones are financially supported at all times, just like a loyal companion.

Life insurance is roughly grouped into several types, each of which is tailored to a specific set of needs, such as:

  • Term Insurance
  • Unit Linked Insurance Plans 
  • Savings Plan
  • Retirement and Pension Plan 
  • Endowment Plan
  • Group Like Insurance 
  • Child Insurance Plans 
  • Term Insurance with Return of Premium

There are many more on the list of types of life insurance. 

This blog will talk about a term insurance plan and the best term insurance to invest in to reap a profitable return on investment (ROI). 

Don’t you want to weave a strong safety net for yourself and your family during the dire and expected times of your life? If yes, then continue to read. 

What is a Term Insurance Plan?

Term insurance is a type of insurance that covers you for a specific period or the selected number of years. If the insured dies during the term specified in the Policy and is active or in existence, a death benefit will be paid.

Term life insurance is significantly less expensive than permanent life insurance. Term insurance, unlike the majority of other types of insurance, has no monetary value. In other words, the Policy’s guaranteed death payment is the only value.

However, the benefits of a term insurance policy are not limited to death benefits. Some insurance companies cover the policyholder’s permanent or partial disability.

What is the best term insurance plan in India?

When you Google, 

“Which term insurance plan should I buy? or What is the best term insurance plan in India?”

You will get a plethora of term insurance plans. Here we are to ease your googling process and give you the best hand-picked term insurance plans that would suit a wide range of audiences and their pocket as per the economic bars. 

Therefore, the best term insurance plans in India are as follows:

Aditya Birla Sun Life Insurance DigiShield Plan 

ABSLI Digi Shield Plan leads a way to safeguard numerous needs with a single plan. It is a comprehensive plan with 10 plan alternatives to pick from based on your needs.

Benefits:

  • Life insurance is available for one year or until the age of 100 (The minimum admission age is 18 years old).
  • The death benefits are adjustable and can be paid out monthly installments, lump sums, or both.
  • On reaching the age of 60, you have the option of receiving a survival benefit as a monthly income. It is a boon for a stress-free retirement.
  • The maximum maturity age differs based on the selected Option plan. 
  • Survival Benefit: This advantageous feature ensures that a monthly Survival Benefit of 0.12% of the Sum Assured is paid beginning with the first Policy Month Anniversary following the event and continuing for each Policy Month Anniversary until the end of the Policy Term or the death of the Life Insured. Whichever occurs first (changes according to your opted Option plan).
  • Terminal Illness Benefit: If you are diagnosed with a terminal illness during the Policy Term, up to the age of 80, and the Policy is still in force, you will receive a lump-sum payment of 50% of the relevant Payment Assured on Death, up to a maximum of Rs. 2 crores, and all future premiums will be canceled.
  • Death Benefit: In the instance of the Life Insured’s untimely death within the Policy Term, the Death Benefit will be paid to the Nominee (s)/legal heir(s) specified by the Policyholder under the Plan Option.

Are you intrigued? If yes, then read more about ‘Sabka Vala Term Plan’ – ABSLI DigiShield Plan.  

Aditya Birla Sun Life Insurance Life Shield Plan

This term insurance plan comes with a customizable plan Option that allows you to choose from eight different plan alternatives based on your family’s needs, ensuring that they do not have to sacrifice their lifestyle even in your absence.

They offer eight plan options to choose from as per one’s necessities. 

Benefits:

  • Joint Life Protection: This benefit allows you to accompany your wife. Your spouse’s relevant Sum Assured will be equal to half of your applicable Sum Assured.
  • Return of Premium option: This benefit states that if you survive reaching the end of the insurance term, the whole amount of all premiums paid will be reimbursed to you on the policy maturity date (depending on the Option plan you opt for).
  • Inbuilt terminal sickness benefit: If you are diagnosed with a terminal disease during your policy term, you will get 50% of the relevant Sum Assured on Death, up to Rs. 2.5 crore, instantly, and the remaining premiums on your Policy would be waived.
  • Enhanced life stage protection: This advantage enables you to increase your coverage following the occurrence of each of the events (marriage and children) without having to take a medical test.
  • Waiver of Premium: In this benefit, the future premiums will be waived if the life insured suffers from total and permanent disability or severe sickness during the policy period. The death benefit of the policy shall remain unaffected.

Want to get a detailed version? Search about ABSLI Life Shield Plan.

Aviva LifeShield Advantage

Aviva LifeShield offers comprehensive life insurance to individuals to safeguard their family members from financial difficulties following their untimely death. Furthermore, if you live to the end of the Policy Term, the insurance company will reimburse you for all premiums paid. 

  • The plan is reasonably priced and comes in two flavors. Option A is for life protection, while Option B is for life plus disability protection with a premium refund.
  • The entry age range is 18-55 years.
  • The maximum Maturity Age permitted is 65 years.
  • There are two premium payment choices available: recurring or one-time premium payment.
  • It is a term return of a premium plan in which the premium paid for the insurance is refunded if the insured lives through the policy term.

Choose what suits your pocket and needs. 

ICICI Pru Iprotect Smart Plan

The ICICI Pru Iprotect Smart Plan is a competitive insurance product that offers several possibilities for purchasing financial protection for your family.

Features:

  • The ICICI Pru Iprotect Smart Plan comes in three Options: Life Option, Life Plus Option, and Life and Health Option.
  • The minimum age for entrance is 18 years.
  • The maximum age of maturity is 75 years.
  • The plan allows for policy terms ranging from 5 to 40 years.
  • There are three premium payment options available: single pay, regular pay, and restricted pay.

Some people consider life insurance an added stress, but little do they know that their money is not going in vain but is busy building a monetary haven for them and their loved ones when they need economic support the most. 

What are the Types of Term Insurance Plans?

Decreasing Term Plans

Growing term plans are the antithesis of decreasing term plans. As policyholders’ financial goals are attained, their insurance needs shrink over time. As a result, they may reduce the amount covered on an annual basis. It is an excellent choice for a financial goal such as homeownership or any bank loan.

Increasing Term Plans

In this type of term plan, the policyholder can increase the insured on an annual basis. Throughout the duration, the premium for the plan remains unchanged.

Convertible Term Plans 

Only a few insurance companies allow their customers to change policies at any moment throughout the term. Here, if a term insurance policyholder wants to switch to a complete insurance plan within five years, they can.

Riders on Term Plans

Several term insurance policies, as the policy name suggests, offer rider benefits. The insurance provides benefits such as severe sickness coverage, accidental death coverage, and disability coverage. By paying an additional fee, you may have all of these functions in single insurance.

Return of Premium Plans

This type of method has several benefits. If the policy-holder lives to the end of the term, the insurer reimburses the premium as a maturity benefit.

Level Term Plans

It is the most basic type of term insurance, where the money protected by the insurance remains unchanged. All profits are distributed to the policyholder’s beneficiary.

Conclusion

Timely investment for a term insurance plan is needed. The later you get, the more you enter the bubble of financial turbulence in uncertain times. The decision related to life insurance cannot be taken in the blink of an eye; you require time and patience.

Consult a financial advisor if required because term insurance should be one of the things pinned amongst your priorities. 

Author:

Leave a Reply