Term insurance is a contract with an insurance firm wherein a person agrees on a fixed sum (premium) to be paid at regular intervals of time for a given period. If something terrible befalls the policyholder during this time, his dependants get death benefits to continue with their lives.
Term insurance is not only an insurance product but also a way to invest; just like mutual funds and stock markets but easier to understand and comes with fewer risks. This makes them popular among all age groups.
Like other investment methods, they help save tax too. The earlier a term plan is bought, the more economic as well as beneficial it is. By the time you are done with reading this article, you will know why these plans are popular and you will know which one to invest in.
Which of the Online Term Plans are the Most Popular?
A huge number of plans are available online, but when you want to select a term plan that'll suit you just right, it is also important that you see what other people prefer. So let's take a look at the top 7 popular online term plans in India.
Tata AIA Sampoorna Raksha
- TATA AIA Sampoorna Raksha term insurance plan provides coverage up to 80 years of age.
- Premium values are lower for non-smoking female policyholders.
- The sum assured under this plan is eligible for a discount.
- Free-look Period - The plan has a free-look period of 15 days, that is, if you are not satisfied with it, you may cancel it within 15 days from the date of purchase of the policy.
- Grace Period – Grace period, in terms of insurance, is previously decided duration of time after which policy lapses if the said premium is not paid. Tata AIA Sampoorna Raksha plan provides a grace period of 15 days in case of monthly premium mode and 30 days in case of other premium modes.
- Surrender Benefits – Surrender amount is the value paid by the insurance company to the policyholder if the latter gets out of the contract voluntarily before the completion of the tenure. Under the limited payment option of the plan, if the premiums are paid properly for up to two years, it can be surrendered anytime.
- Tata AIA has one of the highest claim settlement ratios in India right now.
ICICI Pru iProtect Smart Plan
- Covers Critical Illnesses and Accidental Death Situations - In addition to securing your family’s financial wellbeing in the event of your absence, this term insurance plan covers 34 listed critical illnesses and gives an option to get coverage under the circumstances of accidental death.
- Life Stage Option is Available - You can increase life cover at milestones of life such as marriage, childbirth, etc.
- Surrender Benefits –This ICICI term plan offers surrender benefits in single-pay policies.
Max Life Smart Term Plan
- Seven Death Benefit Variants – Max Life Smart Term Plan helps you customize the kind of benefit you want from it. Life cover, income protector, inflation plus income protector, life cover plus income, life cover plus increasing income, increasing cover and reducing cover are the options it offers to you. You can choose depending on what suits you.
- Covers Critical Illnesses and Accidents - This term insurance offers coverage in case of demise of the policyholder as well as protection against 40 critical illnesses including kidney failure, heart attack and cancer.
- Multiple Payment Benefits – If you are opting for Max Life Smart Term Plan, you get to choose from a variety of payment options, for a limited period or through the full policy term, monthly, half-yearly, annually or quarterly.
- Riders and Add ons – Health insurance coverage is offered through riders. Also, at crucial stages of life, you can add on to your life cover.
- Return on Premium – This flexible plan returns the premiums in case you survive the policy period. So, if you are fine, go out, celebrate with your family. It is a good time to be alive.
HDFC Life Click2Protect 3D Plus
- Covers Provisions of Disease and Disability - This term insurance plan guarantees financial security of your family in case of your untimely death as well as in case of disability, disease etc.
- Life Stage Option - Life stage option and top-up option will be available to you if you purchase this plan by HDFC.
- Death benefits can be paid as chosen. You can provide your family with a large lump sum amount or monthly payments or both as suitable.
- This policy gives the option discontinue of future premium amounts on Accidental Total Permanent Disability.
- Return of Premium Option – When you survive the policy term, share the joy with your loved ones with this return of premium option.
- HDFC Life has one of the highest claim settlement ratios in India right now.
Aegon Life iTerm Plus Insurance Plan
- This plan provides life coverage up to 100 years of age so if you purchase this plan, you are almost sure to leave behind a good fortune for your close ones.
- Covers 36 Critical Illnesses - This plan protects against 36 specified critical illnesses. Of late, it considers COVID-19 death claims too.
- Provisions for Accidental Total Permanent Disability - Waiver of premiums in case of permanent disability caused due to an accident is allowed. Therefore, this plan is supposed to benefit you in life as well as the afterlife.
- Choose Death Benefit Payout – Death benefit can be paid to your family as a lump sum or as monthly income or both as required.
- It Pays to Quit Smoking’ Benefit – Smokers are given the option to quit smoking to reduce the policy premium from second year onwards.
- Aegon Life AD Rider – This rider provides more protection to the family of the insured in case of accidental death.
Bharti AXA Life Flexi Term Plan
- This plan covers benefits up to 75 years of age.
- Covers Critical Illnesses – You can either select comprehensive cover (providing against 34 illnesses) or major illness cover (providing against 15 illnesses) depending on what you think is suitable for you. Future payments may also be waived under certain conditions.
- Flexible Benefit Payout Option – You can choose to get death payout as a lump sum, or increasing monthly income, or lump sum plus increasing monthly income.
PNB Metlife Mera Term Plan
- This online term insurance plan offers coverage up to 99 years of age (one of the highest).
- Choice of Death Benefit Payout - In case of your demise during the tenure, your family will get the death benefits in any one of the four ways (lump sum, monthly income, lump sum as well as monthly income etc.).
- Riders - You can add riders like life stage benefit, accidental disability rider, critical illness rider, serious illness rider and joint life cover.
- Life Stage Protection Feature – This provision of PNB Metlife Mera Term Plan allows you to increase cover at crucial stages in life.
Trending Term Plans in India (2020)
Maximum Maturity Age
Claim Settlement Ratios
|Tata AIA Sampoorna Raksha||18-70||10-30||80||99.06%|
|ICICI Pru iProtect Smart||18-65||5-40||75||98.58%|
|Max Life Smart Term Plan||18-60||Up to 50 years||85||99.22%|
|HDFC Life Click2Protect 3D Plus||18-65||5-50||85||99.07%|
|Aegon Life iTerm Plus Insurance Plan||18-65||5-62||100||98.01%|
|Bharti AXA Life Flexi Term Plan||18-65||5-25||75||92.37%|
Mera Term Plan
We live in one of the most crucial times in the history of mankind. This era is characterized by development. However, we must remember that the risk to our health as well as to our well-being has increased over time too. Also, it is really difficult to survive without resources at our disposition; by resources, I mean money. There is compulsion on us to secure our loved ones’ well-being. We need to ensure their happiness in case any eventuality befalls.
It is worth taking time out of our lives to choose the right term insurance plan for them. It is undeniably tiresome but we need to consider certain facts before opting for a term insurance plan. Firstly, you must see that the claim amount assured is at least 15 times of the total premium amount paid. Additional benefits like coverage against accidents, diseases and disabilities must be taken into consideration too. Riders, add ons and return in premiums are bonus. Read, talk to an insurance expert, or compare term plans online, and select the right term plan for yourself. As they say, well insured, well-lived.