Top 10 Best Term Insurance Policies in 2023

Best Term Insurance Policies

Term insurance is a type of life insurance policy that provides financial coverage to your family in the event of your untimely death during the policy term. It is one of the most affordable forms of life insurance and can provide your loved ones with financial security when needed.

Choosing the proper term insurance plan can be confusing with many available options. This comprehensive guide will discuss the ten best term insurance policies in 2023 that provide high coverage at affordable premiums. We will look at key factors like claim settlement ratio, premium rates, policy term options, riders, and more to help you make an informed decision.

What is Term Insurance?

Before we look at the top policies, let’s first understand what term insurance is. It is a pure protection life cover that secures your family financially in case of your unfortunate death during the policy tenure. The insurance company pays your nominee a lump sum (called death benefit), and the policy terminates after the term is completed.

Term plans come at affordable premiums compared to other life insurance plans. The premium will depend on the sum assured, age, gender, smoking habits, medical history, occupation, policy term, and other factors. Term plans are renewable; you can buy them for 5 to 40 years.

10 Best Term Insurance Policies in 2023 List

Here are the ten best term plans offered by life insurance companies in India:

1. Aegon Life iTerm Insurance Plan

Aegon Life iTerm is one of the most competitive term insurance policies regarding premium rates. It offers policy terms of 16 to 40 years and sums assured, ranging from Rs 25 lakhs to Rs 2 crores. The key highlights include:

  • Competitive premium rates
  • Option to choose policy term till age 70 years
  • Guaranteed death benefit payout
  • Option to add riders for extra protection

Aegon Life has claim settlement ratio of 96.32% in FY21-22, which denotes solid financial standing. Overall, it’s an affordable term insurance plan with good features.

2. Aviva Life Shield Plan

The Aviva Life Shield plan comes with three policy term options of 15, 20, and 30 years with a maximum sum assured of up to Rs 2.5 crores. Some key benefits include:

  • Maturity benefit equal to 35% of the sum assured
  • Guaranteed addition of 5% of sum assured from 6th year for regular premium payment
  • Option for limited and regular premium payment

Aviva Life has settled 98.26% of death claims in 2021-22, showcasing its strong claims servicing ability. It’s a good term plan for those wanting maturity benefits.

3. Bajaj Allianz Life Smart Protect Goal

Bajaj Allianz Life Smart Protect Goal offers flexible term lengths between 10 to 40 years. It provides life cover till age 80 years and financial security for your family after you. Some key features include:

  • Get life insurance coverage till the age of 80 years
  • Option to choose increasing death benefit to beat inflation
  • Return of premium if you survive the policy term
  • Riders for critical illness and accidental death/disability

Bajaj Allianz has a claim settlement ratio of 96.8% in FY 2021-22, denoting solid financial backing. Overall, it’s an intelligent term plan with valuable features.

4. Bharti AXA Life Secure Income Plan

Bharti AXA Life Secure Income plan offers regular income to your family after your demise apart from the lump sum payout.

The key benefits include:

  • Policy terms of 15 to 40 years
  • Guaranteed payouts through staggered annual payouts of up to 25 years
  • Return of premium on survival till maturity
  • Life insurance covers till the age of 99 years

The claim settlement ratio of Bharti AXA Life is 95.5% in 2021-22. It’s a good term plan for ensuring regular income for your family.

5. HDFC Life Click 2 Protect 3D Plus

The HDFC Life Click 2 Protect 3D Plus plan provides comprehensive coverage till the age of 80 years. The key features include:

  • Three policy term options of 10, 15, and 20 years
  • Auto increase death benefit by 10% every year
  • Waiver of premium in case of accidental permanent disability
  • Option to receive survival benefit

HDFC Life is known for its high claim settlement ratio of 97.5% in FY21-22. Overall, it’s a good term plan for long-term protection.

6. ICICI Pru iProtect Term Plan

ICICI Pru iProtect Term Plan offers one of the most extended policy terms till the age of 80 years. Some key highlights include:

  • Option to extend life cover till 99 years through Whole Life variant
  • Guaranteed income through Cash Back variant
  • Limited premium payment terms of 5, 7, and 10 years
  • Return of premium on survival till maturity

ICICI Pru Life has settled a claims ratio of 98.1% in 2021-22. It’s a comprehensive term insurance policy for securing your family.

7. Kotak Life e-Term Plan

Kotak Life e-Term Plan is a pure protection online term plan with no riders, bells, or whistles. Key features:

  • An utterly online policy with no medical tests
  • Only clear-cut death benefit payout
  • Policy terms of 10 to 40 years
  • Sum assured up to Rs 1.5 crores

Kotak Life has a claims settlement ratio of 97.85% in 2021-22, making it reliable. Overall, it’s an excellent no-frills term insurance policy.

8. Max Life Online Term Plan Plus

Max Life Online Term Plan Plus can be bought online without any paperwork. The key benefits include:

  • Hassle-free purchase journey
  • Life covers till age 80 years
  • Flexible premium payment terms
  • Riders for critical illness and accidental death
  • Loyalty additions and rebates

Max Life is known for its high claims settlement ratio of 99.35% in 2021-22. It’s one of the best online term plans in 2023.

9. PNB MetLife Mera Term Plan

PNB MetLife Mera Term Plan offers policy terms between 10 to 40 years. Some key features include:

  • Life covers till age 80 years
  • Maturity benefit equal to 100% of the sum assured
  • Option for joint life protection
  • Riders for critical illness and accidental total permanent disability

PNB MetLife has a claims settlement ratio of 97.5% in 2021-22. It’s a good-term policy with helpful riders and benefits.

10. Tata AIA Life Insurance Amrit Kalash Plan

Tata AIA Life Amrit Kalash plan provides comprehensive coverage until 100 years. Key highlights:

  • Extended policy terms of 16 to 40 years
  • Option to extend life cover annually beyond the age of 100 years
  • Return of premium on survival till maturity
  • Riders for critical illness and accidental death

Tata AIA Life has settled 96.8% of claims in 2021-22. It’s one of the best term plans that provide extra-long coverage.

Frequently Asked Questions (FAQs)

Which insurance company offers the cheapest term insurance premiums in 2023?

Aegon Life offers some of the most competitive premium rates on term insurance policies. Their iTerm plan has low premiums across different age groups while providing high coverage.

How is the claim settlement ratio important when buying term insurance?

The claim settlement ratio indicates the percentage of approved claims versus total claims received by the insurer. A higher proportion, like 95% and above, denotes a solid ability to honor claims. Thus, it’s an important metric to check when choosing a term insurance provider.

What are the tax benefits of buying term insurance?

The premium paid for term insurance policies qualifies for tax deductions under Section 80C of the Income Tax Act. This deduction is subject to an overall limit of Rs 1.5 lakhs per financial year for all investments and expenditures eligible under Sec 80C.

Can term insurance be bought for short terms, like 1 or 2 years?

Term insurance is not designed for concise policy terms. The minimum policy term is usually five years, as it takes that long for the insurance company to recover the commission and expenses incurred to provide the coverage. Short-term life covers are generally prohibitively expensive.

Can an existing term insurance policy be renewed for another term after expiry?

Yes, most term insurance policies can be renewed after the expiry of the original term if the insured is below the maximum renewal age set by the insurance provider. However, the premium may be revised based on the attained age at renewal.

Conclusion

A suitable term insurance plan can ensure complete peace of mind for you and your loved ones. While choosing a policy, evaluate factors like claim settlement record, premium rates, policy term, and riders.

We hope this guide clarifies the top term insurance policies in 2023. Do analyze your specific insurance needs and choose a policy that provides adequate coverage at affordable premiums.

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