Purchasing a term insurance plan is the first step toward financial planning. As soon as you start earning money, you should purchase a good-term insurance plan. Term Insurance plan is a low-cost insurance policy that provides risk coverage and financial stability to your family in your absence.
I don’t want to scare you but think of the situation who will fulfill a financial need of your family in your absence. A Term plan gives you, a mental peace that they will get insurance amount on your death. So, as per me, a term plan with sufficient risk cover is a must, if you are the only breadwinner of the family.
Today you will find many insurance companies including LIC is offering online term insurance plan in India. So, it becomes extremely difficult to select which is the best term insurance plan in India. Today l will share details about the Best Online Term Insurance Plan in India. I will also suggest various features and points to consider before buying a term plan.
What is a Term Insurance Plan?
Term Insurance Plan is a pure insurance plan that will provide risk coverage to the policyholder. There is no maturity benefit attached to a term plan. The nominee will get a benefit from this policy only in case of the unfortunate death of the policyholder.
Term Plan Features
Accident Rider Benefit
Accidental Rider Benefit is an optional feature. Normally this feature is required for frequent travelers. In order to avail accident rider benefit, you need to pay an extra premium. Suppose you have taken a term plan of 50 Lac. You can opt for an additional accident rider benefit of an additional amount by paying an extra premium. Suppose you take an additional accidental rider of 10 Lacs. In case of natural death amount payable will be 50 Lac, however, in case of accidental death 60 Lacs will be paid to the nominee.
Premium Waiver Benefit
Premium waiver benefit is associated with partial or full disability. This option provides you with the advantage of a premium waiver in case of partial or full disability due to an accident. All future premiums will be waived but the policy will remain enforced.
Critical Illness Rider
Critical illness benefit riders will pay you money in case you are diagnosed with certain pre-defined listed illnesses. The most common illnesses include heart attack, brain stroke, kidney failure, etc. Critical Illness rider is taken for a specific amount. Suppose you have taken a critical illness rider of 10 Lac and you are diagnosed with a heart attack which is included in the list. You will be paid 10 Lac on the diagnosis.
Also Read – 15 Things to consider before buying Online Term Plan
Top 6 Best Online Term Insurance Plans in India
There are multiple life insurance companies in India like LIC, ICICI, HDFC, Exide Life, Kotak, Aviva, etc. All these insurance companies provide a similar type of term plan to customers, which makes customers confused in selecting the best term plan.
In order to find out the best term plan, we have to adopt a selection methodology based on our preference. I have used the following factors to select the best term plan.
- Policy Premium
- Reputation of the company
- Average Claim settlement ratio
- Financial Background of the Insurance Company
- Additional Features/ Riders provided by the company
- Customer Satisfaction and Service
- Policy Tenure and Maximum Age Coverage
- Average time to settle a claim
- Ease of buying Policy Online
Based on the above selection factors list of the best online term plans in India is given below.
Also Read – Best Health Insurance Plans in India
#1 ICICI iProtect Smart
ICICI iProtect Smart is first in the list of the best online term insurance plans. ICICI iProtect Smart policy provides 360-degree coverage to your life at a very reasonable price. ICICI iProtect Smart term plan offers additional features of accident rider, premium waiver, critical illness, and terminal illness benefits. The claim settlement ratio of ICICI Pru is very good. If you have not purchased a term plan yet you must consider iProtect Smart.
#2 HDFC Click 2 Protect Plus
HDFC Click 2 Protect Plus is one of the best online term plans. HDFC Click 2 Protect Plus provides complete protection at an affordable price. HDFC Click 2 Protect Plus comes with four different options namely Life, Extra Life, Income, and Income Plus option. You can avail of accidental rider and critical illness benefits under this plan. The claim settlement ratio of HDFC life is slightly low.
#3 LIC Tech Term Insurance Plan
LIC (Life Insurance of India) is the most reliable number one insurance company in India. LIC is even best in terms of claim settlement ratio. LIC is offering a pure online term plan called LIC Tech Term Insurance Plan. However, the premium of the LIC Tech Term plan is slightly higher compared to all other plans. Tech Term plan offers a flexible payment option. It also provides accidental rider benefits. If you have not purchased any term plan and if you have hesitation in purchasing a term plan from a private insurance company LIC e-Term is for you.
#4 SBI e-Shield Next
SBI e-Shield Next is next on the list of the best term plans. SBI e-Shield also provides additional accidental rider benefits and increasing cover benefits. However, the premium of the SBI e-Shield plan is high compared to any other term plan. The claim settlement ratio of SBI Life is moderate.
To know more about SBI e-Shield. Kindly go through the details available on SBI site.
#5 Max Life Online Term Plan
Max Life Online Term Plan is one of the most affordable term plans. Max Life Online Term Plan also provides the option of monthly income along with life cover. A Claim settlement ratio of Max Life is the second highest after LIC.
#6 Kotak Preferred E-term
Kotak Preferred E-term Plan is next on the list of the best term plans. Kotak E-term is a unique term plan providing inbuilt premium waiver benefits in case of permanent disability. The e-term plan also provides the option for customizing claim payout. The claim settlement ratio of the Kotak Preferred E-term plan is moderate.
FAQs
Why Online Term Plan is better option?
(1) Easy
It is extremely easy to purchase term plans online. You just need to fill in your details and make payment online.
(2) Low Cost
The online Term plan is available at a lower cost compared to the offline plan. It is low cost as you are not paying extra money to the insurance agent in terms of commission.
(3) Not Derived by any agents
No insurance agent or advisor is involved in the process. It is completely transparent. A decision of buying a policy is entirely on you and not derived by any agents.
How much risk cover I should take?
A risk coverage amount depends upon the individual. You should calculate your exact life insurance need before finalizing the sum assured. Always go for a need-based approach. As a thumb rule, you should purchase life cover equal to a minimum 12 times of your annual income.
Also Read – 10 Mistakes to avoid while buying term insurance plan
What should be the Term of this policy?
You need a term plan up to your retirement age. Once your income stops there is no need for a life insurance coverage. So, while deciding terms of policy keep this in mind.
Do I need to purchase accidental rider and other rider benefits?
The answer to this question depends on individual needs. If you are a frequent traveler, you should opt for accidental rider benefits. If you have a medical history it is advisable to take a plan with critical illness benefit.
Should I purchase a term plan from two different companies?
In order to minimize the risk of claim settlement, you can plan to buy two different term plans from two different companies. However, you need to disclose details about all previous insurance policies taken by both of these companies.
What details I should disclose while buying a term plan?
Life insurance is an agreement on the principal faith. You should disclose all relevant information like health history, existing insurance plan, a habit of tobacco or cigarette, etc while applying for a term plan. Non-disclosure of this information can create problems at a later stage and it may lead to rejection of a claim.
A Medical checkup is mandatory for buying a term plan?
A medical checkup is not mandatory for all term plans. Most life insurance company offers term plans up to 50 Lacs without a medical checkup. However, for a higher sum assured you need to undergo a medical checkup. You may be required to pay additional charges for the medical checkup.
Which documents are required for buying a term plan?
You will need the following documents to buy a term plan.
Address proof – Aadhaar Card, Energy Bill, Telephone Bill, Passport, Bank account statement
Age Proof – Driving License, School / College Certificate, PAN Card, Passport, Birth Certificate
Identity Proof – PAN Card, Driving License, Aadhar Card, Passport, Voter ID card
Income Proof – IT return
Over to You
I have given my unbiased opinion on the best online term insurance plan. Hope it will help you while buying a term plan.
Do you think the online term plan suggested by me is the right fit for your requirements?
