6 Best Term Insurance Policies for 2023
Created on 19 Nov 2020
Wraps up in 8 Min
Read by 5.5k people
Updated on 16 Nov 2023
Securing your family's future is the best gift for your loved ones in your absence. For this gift, you need a term insurance plan that offers a variety of insurance plans that can be friendly to your pocket and offer you plenty of benefits.
These insurance plans do not just come with a survival offer; they also offer an assured lump sum money for your family after your demise.
As the name suggests, the Term Insurance plan offers a lot of benefits to secure the future of your family after the demise of the insured person, but this policy plan comes for a limited period. To get all these benefits, you need to pay a premium fee that can be calculated based on your age and the chosen term insurance plan.
Suppose Rohit is a married person who has 3 children, and he purchased a term insurance plan of ₹50 Lacs with death benefits. The policy he purchased was applicable for 65 years. If Rohit, unfortunately, dies before the age of 65, then his family will get paid by the insurance company for their financial survival.
That is why a term insurance policy is beneficial. Let's take you through the 6 most important insurance plans in the market and see what they offer.
1. Aditya Birla Sun Life Protector Plus Plan
This plan offers a highly assured protection plan with lower premium rates. This protection plan takes care of the financial future of the family and also takes care of the future liabilities and assures to maintenance of a better lifestyle for the family members after the demise of the insured person.
Here are some key features of the plan that are offered by the insurance company.
Features of the Term Insurance Plan
1. This plan covers the whole financial spending of the family at lower premium rates.
2. This plan also assures the rising cost of living of the family members of the insured person.
3. This plan also covers permanent disability protection.
4. The nominee will receive the amount monthly or annually after the demise of the insured person.
5. This policy plan offers to maintain the standard of living of the insured person's family members.
6. This plan can save tax under section 80C of the Income Tax Act.
2. ICICI Pru iProtect Smart
This insurance plan provided by ICICI is the only term plan that gives claim payment on the diagnosis of 34 serious illnesses. The plan offers complete protection through flexible options that can help ensure financial security for the insured person's family after their death.
Within this plan, the insured person can get a cover-up to seventy-five years of age and can get 3 types of tax advantages.
Benefits of ICICI Pru iProtect Good
1. Life - The nominee can receive the gains only at the death or in case of terminal unwellness of the policyholder. Along with that, in case a client has been diagnosed with permanent disabilities due to an accident, he won't be compelled to pay future premiums. The policy can continue as usual, even with no premium payment from the insured person.
2. Life Plus - Along with the "Life" choice, provides the insured accidental rider profit.
3. Life & Health - Along with the "Life" choice, it provides the insured person with a critical illness rider benefit.
It covers thirty-four major illnesses. The policyholder will get complete benefits regardless of the cost of treatment. This gain can be exercised only one time during the entire policy period.
Features Available in ICICI Pru iProtect
1. It fits into the insured's budget.
2. It covers the insured for a longer period.
3. It pays for the diagnosis of any of the thirty-four listed critical illnesses.
4. It provides four payout choices to select from.
5. It pays for life cover on critical illness (including AIDS).
6. It provides the insured a choice to add accidental benefit currently or later.
3. Max Online Term Plan Plus
Max Life provides an online term insurance plan that offers a financially secure future to your loved ones against the chance of your death, incapacity, and sickness.
Features of Max Online Term Plan Plus
1. The minimum age to get the insurance plan is 18 years.
2. Maximum age to get the duvet will be up to 60 years.
3. Choice of regular income payout options.
4. Option of limited pay for premium payment.
5. Option to add benefits like accidental death, premium waiver, and cover on critical illness on payment of extra premium.
6. The insured has the choice to pay premiums monthly, quarterly, yearly, or annually.
7. Freelook amount of thirty days for online plans.
8. A grace period of fifteen days is obtainable for payment of regular premium under monthly 30 days for alternative modes.
9. the maximum covered age of the person insured can be up to 85 years for term plans.
4. HDFC Click 2 Protect Plus
The HDFC Click 2 Protect Plus plan offers financial protection to your loved ones in your absence after your unfortunate demise. This policy offers a great plan at an affordable price.
In this plan, you can choose different options to cover up the family member's financial requirements and lifestyle. All these plans will be given to you according to your age, gender, and preference. The minimum assured amount will be ₹25,00,000.
Benefits of HDFC Click 2 Protect Plus
1. Death Benefit - In case of the unfortunate death of the insured person while the policy is still ongoing, the nominee can get the following benefits: For single premium policies, 125% of the single premium, or total assured, whichever is higher. For policies other than the single premium ones, ten times the annualized premium, or 105% of all paid premiums until the date of death, or total sum assured, whichever is higher.
2. Life Stage Protection - The Life Stage Protection is available within the life option of the policy and can be availed upon payment of an additional premium. This plan makes sure that the person insured is financially protected at every phase of life as he/she achieves various milestones.
3. Increase Sum Assured - One can increase their insurance coverage.
4. Cut Back the Additional Cover at a Later Stage - This term set-up offers the flexibility to scale back the insured person's extra insurance coverage from the point they reach 45 years of age.
5. Maturity Benefit - There are no maturity benefits once the person insured survives until the end of the policy term.
6. Income Tax Benefit - Life assurance premium paid up to ₹1,50,000 amount of money is allowed as a deduction from the dutiable financial gain each year under section 80C of the Income Tax Act.
The policy conjointly offers other features, such as
1. Choice to increase covered plans on milestones like weddings and the birth of a child.
2. The nominee will get the payout benefits after the death of the insured person.
3. Accidental benefit to the rider.
4. Taking the payout as lump sum + monthly claim settlement.
5. SBI Life EShield
The SBI Life Eshield is a pocket-friendly term insurance for anyone who wishes to secure a stable future for their family in case of their sudden death. This policy covers the family member's need for future living to keep inflation in mind.
Anyone between 18-65 years is eligible for this policy plan. This plan offers various options like life cover, life cover with accidental benefits, increasing cover, and increasing cover with accidental benefits, to choose according to the preferences of the insured person.
Benefits offered by SBI Life eShield
1. Level Term Assurance - This is an easy insurance set-up wherein the nominee gets financially assured in case of the death of the insured person.
2. Increased Term Assurance - This gives an exaggerated and assured payout yearly. This can be a decent choice to take into consideration just in case the insured desires his family to think about inflation and maintain a healthy standard of living.
3. Decreased Term Assurance (Loan Protection) - This policy is for people and agencies that have an equity credit line or consumer loan. This selection cannot be offered to others.
4. Decreased Term Assurance (Family financial gain protection) - Within this plan, the sum assured would be decreased during the policy term and during the death of the person who is insured. The nominee would get either a regular monthly payment or select a payment that is accessible for distribution based on the reduced term assurance policy.
6. LIC e-Term Insurance Policy
The e-term policy plan is a non-participating pure insurance plan which can be purchased individually through the web mode without the involvement of any middlemen. Pure insurance implies that the policyholder's life is roofed/secured. Anyone between 18-60 years is eligible for this policy plan.
In case of the demise of the insured person during the term policy period, the beneficiaries of the insured will be given the sum assured. If the policyholder survives the period of the e-term policy plan, then no additional amount is paid to the policyholder and members of their family or beneficiaries.
A non-participating policy means that the policy doesn't participate within the profit through unit-linked plans, and no dividends are paid on this policy.
Benefits of LIC e-Term Insurance Setup
1. Death Benefit - In case of the death of the insured during the policy term, the registered nominee will get the payouts.
2. Maturity Benefit - If the customer survives the entire policy term, then the insured person and his family won't be able to get any benefits from the policy. Pure-term plans don't pay something on maturity and are ready to charge lower premiums.
3. Tax Benefit - Insurance premium paid up to ₹1,50,000 each year is allowed as a deduction from the subject financial gain every year beneath section 80C of the Income Tax Act.
4. Sum Assured - Minimum Amount of ₹25,00,000 will be paid to the non-smoker insured person, and there is no limit on the maximum amount the insured person can get. Death Benefit quantity paid to the nominee is additionally exempted from tax beneath section 10 (10D).
Features of LIC e-Term Insurance Setup
1. The plan can be purchased online.
2. Different premium rates are charged for smokers and non-smokers.
3. In case of the death of the policyholder, the amount assured will be paid.
4. The client can return the policy within 30 days of purchasing it if he's not convinced by the terms and conditions of the policy.
5. It is less expensive than the offline term set-up of LIC as there is no involvement of a middleman.
The Bottom Line
While choosing a term set-up, an individual should keep in mind the reason why he/she is taking the term insurance plan. At the same time, he ought to analyze all the advantages offered by different term setups and then decide the plan he intends to take. Having prior knowledge of the insurance plans and their benefits can help the individual select the best term insurance plan for himself/herself.
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