Imagine the following: You put forth a lot of effort each day in order to create a bright future for your family. But what will take place if you are not physically present tomorrow? Purchasing term insurance is one way to ensure that your loved ones are financially secure even if you are no longer around. This is something that no one likes to think about considering. It is one of the most prudent financial choices you can make, regardless of whether you are a student who is just beginning their academic career, a young professional, or an entrepreneur, to determine which term insurance policy is the most suitable for your family.
What is Term Insurance?
Term insurance is a straightforward and uncomplicated form of life insurance. A predetermined premium is paid for a predetermined amount of time (referred to as the “term”), and in the event that something occurs to you during this time, your family will receive a lump sum payout, which is referred to as the sum assured.
In contrast to conventional life insurance, this type of policy does not offer a maturity benefit. Pure protection is what it is.
How does it actually work?
Term insurance is a basic life insurance policy offering a set period of financial protection. Should the policyholder die during the term, the cash promised is paid to the nominee. On the other hand, should the policyholder survive the term, there is no payout—unless the plan provides a return of money.
- Select the term of the policy (for example, 10, 20, or 30 years).
- Your family’s requirements should guide your choice of the sum assured.
- Pay premiums on a consistent basis (monthly, annually, or all at once).
- During the term of the policy, the policyholder is eligible to receive a death benefit.
- In regular policies, there is no maturity bonus provided if the policyholder lives to maturity.
- It is possible to improve coverage with optional riders (for example, critical sickness).
Why You Need the Best Term Insurance for Family
Selecting the best term insurance for family will help to safeguard the financial future of your family should you pass away unexpectedly. Although life is erratic, a strong term plan guarantees that, should something happen to you, your loved ones are free from debt, everyday expenses, or school bills. Its affordable price and excellent coverage provide protection and peace of mind. Your protection will be much enhanced if you also add riders for accidental death or critical illness using the correct strategy.
- Providing your family with financial stability
- It covers significant costs such as student debt, education, and day-to-day necessities.
- With a low price and full coverage
- tranquility in the knowledge that your loved ones are safe and secure
- Riders that can be added for additional protection
Choosing a term plan that is appropriate for your situation is one of the most thoughtful and considerate choices you can make for your family.
Top Term Insurance Plans in India
Some of the most popular term insurance plans in India (2025) are shown here. We selected these plans due to their high claim-settlement percentages, affordable premiums, and significant features.
Tata AIA Sampoorna Raksha Supreme
Combining Tata Sons and AIA Group, Tata AIA Life Insurance offers the Tata AIA Sampoorna Raksha Supreme life insurance plan. With a solid claim settlement ratio (CSR) of roughly 99%, the strategy calls for FY 2023–24. It offers you a choice of many payment and rider options and excellent coverage at a reasonable price.
- Coverage for up to one crore begins at approximately 501 rupees per month.
- It is possible to receive a return of premiums and benefits for catastrophic illness.
- Critical illness, accidental death, and premium waiver are among the available riders.
- Payout options include a lump sum, a monthly income, or a combination of the two.
- The policy term extends up to the age of 100.
- It is accessible through various sites, including tataaia.com, PolicyX, Ditto, and others.
For individuals who are looking for a trustworthy and customizable term plan that has strong backing from the insurer, this is a good choice to consider.
LIC Tech Term Plan
The LIC Tech Term Plan is a purely online term insurance policy offered by the Life Insurance Corporation of India. It provides simple life coverage without a maturity benefit, featuring adaptable, sum assured choices and premium payment terms. It is crafted for digital consumers seeking dependable coverage from a reputable public-sector insurer.
- With no maximum restriction, the minimum sum assured is ₹50 lakh.
- Two ways for receiving a sum assured: level and increasing cover
- The policy term ranges from ten to forty years, and coverage is available until the insured reaches the age of eighty.
- Single, regular, or limited pay makes up the premium payment.
- The death benefit can be paid out in one lump payment or in increments over a period of five, ten, or fifteen years.
- The Accident Benefit Rider is an optional service.
- High cover levels, women, and non-smokers are eligible for premium rebates.
- Sections 80C and 10(10D) provide favorable tax treatment.
- The ratio of claims settled by the LIC for the fiscal year 23–24 was approximately 98%.
Thus, LIC Tech Term Plan is ideal for government-backed, online-purchase term policies with flexible alternatives. It may cost more and take longer to process and serve online than private competitors. Price and speed may benefit from private insurance.
SBI eShield Next
The SBI Life eShield Next plan is a pure term life insurance policy that provides you with dynamic coverage options that are matched to your current stage of life. You can access it online, and it offers a flexible premium payment option, choices for the sum assured, and additional protection through riders.
- Options for the plan include Level Cover, Increasing Cover, and Level Cover with Future-Proofing.
- There is coverage available up until the age of 100.
- For non-smokers who are qualified, the sum promised begins at ₹50 lakh, and there is no higher limit.
- Single payment, restricted installment, or monthly payment are all examples of premium payments.
- The benefit for terminal sickness is included, with a maximum amount of ₹2 crore.
- The following riders are available: The riders available include accident, Death and Permanent Disability coverage.
- Tax breaks are available under Sections 80C and 10(10D) of the Internal Revenue Code.
- The claim settlement ratio for the fiscal year 23–24 was approximately 99.2%.
This option is for those who want future-ready coverage with SBI Life’s confidence.
Max Life Smart Secure Plus
The Max Life Smart Secure Plus plan, offered by Max Life Insurance through Axis Bank channels, is a comprehensive term insurance plan designed to provide families with a flexible and robust level of protection. Optional features such as the return of premiums, joint life, critical illness, and others are included in addition to the usual death cover.
- Two choices for the death benefit: level coverage and increasing coverage
- Availability of the premium choice for survival, which is back.
- Built-in benefit for terminal sickness, with a maximum amount of ₹1 crore
- Critical Illness, Accidental Death, and Waiver of Premium are the categories of riders.
- The policy provides coverage up to the age of 85, and its duration spans from 10 to 67 years.
- Insurance for the spouse’s joint life, if desired
- Whether it be a single, limited, or monthly payment, premium payments
- Option for a yearly increase in coverage with a top-up
- Claim settlement ratio: around 99.65% (FY23–24)
- Sections 80C and 10(10D) provide favorable tax treatment.
It is an ideal choice for people who are searching for flexibility and more benefits, considering the fact that it could be more expensive than more straightforward term plans.
HDFC Click 2 Protect Plus
There are four payment alternatives available for the pure term insurance plan known as HDFC Life Click 2 Protect Plus. This plan is meant to provide flexibility and milestone-linked coverage through a totally online approach. It is supported by HDFC Life’s excellent brand and claim performance, which is around a 99.5% customer satisfaction rate.
- There are four different types of coverage available: life, extra life, income, and income plus.
- The age range for entry is 18–65 years, and the policy term is from 10–40 years.
- ₹25 lakh is the minimum sum promised, and there is no higher limit.
- The life-stage option is to increase coverage at the time of marriage or childbirth.
- There are three types of premium payments: single, limited, and regular.
- Safety concerns for riders include accidental death, critical illness, and disability.
- The death benefit includes payouts based on income or a lump payment.
- There are tax incentives available under Sections 80C and 10(10D).
- Ninety-five percent of claims were settled during the fiscal year 23–24.
Although rider approvals may involve more stringent underwriting, it is a favorablerable choice for individuals who are looking for flexible payouts and relied-upon claim help.
ICICI Pru iProtect Smart
ICICI Pru iProtect Smart is a well-liked term insurance plan that provides various protection options, such as coverage for critical sickness, a reward for accidental death, and the opportunity to return premiums. This is a great option for those seeking a flexible, thorough policy.
- All-in-One, Life, Life Plus, and Life & Health are the four different plan options.
- The minimum sum assured is ₹50 lakh, and there is no higher limit.
- Coverage is available up to the age of 99, with an option to purchase whole life insurance.
- Built-in protection against terminal illness
- Under the Life & Health All-in-One plan, the Critical Illness rider provides coverage for 34 different diseases.
- The Return of Premium (ROP) benefit is optional.
- Whether it be a single, limited, or monthly payment, premium payments
- Claims settlement ratio: around 98.6% (FY23–24)
- Sections 80C and 10(10D) provide favorable tax treatment.
Although the rates can be slightly more if all of the perks are included, it is a powerful plan that offers extensive coverage and great flexibility for riders.
Kotak e‑Term
A pure term insurance plan for protection, the Kotak e-Term Plan provides coverage that may be customized at affordable premiums. To cater to a variety of protection requirements, it offers three different benefit alternatives and a number of various rider choices.
- Existence, Life Plus (with ADB), and Life Secure (with a waiver on disability) are the three available plan options.
- With no maximum limit, the sum promised begins at ₹25 lakh.
- Coverage up to the age of 75 throughout the policy period of 5 to 85 years
- Single, restricted, or recurring form of payment for premiums
- Condition of Critical Illness, Accidental Death, and Permanent Disability Riders
- Choice between receiving the death benefit in a single payment or in installments
- Claim settlement ratio: around 98.82% (FY23–24)
- Sections 80C and 10(10D) provide some tax benefits.
Use a Term Insurance Calculator
How much term insurance do I need?
Depending on your family’s needs and obligations, multiply your annual income by 10–20 times.
- The annual income is multiplied by the number of working years remaining.
- This calculation should include loans, the education of children, and other future expenses.
- Take into account any existing investments or savings.
- The typical coverage ranges from ₹1 to 3 crore for individuals with a middle income.
- Consider inflation and your desired lifestyle when planning your finances.
In the event that you are no longer present, it is in your best interest to select a policy that provides protection for your family’s long-term goals, as well as their living expenses and debt repayment.
Best Free Calculators in India
Here are some of the best free calculators for term insurance available in India.
You can use these online tools to estimate your optimal term cover based on your income, expenses, and goals.
- Using a straightforward user interface, Policybazaar compares a number of different insurance companies.
- Turtlemint provides users with quick estimations and suggestions.
- The same goes for a pristine, spam-free experience with human adviser help.
- Coverfox provides instant quotes along with filters.
- Max Life and HDFC Life are company-specific products that come with extensive sliders.
It is important to consult a financial expert before making any purchases, even though these calculators are helpful for having a general picture of the situation.
Term Insurance vs Life Insurance
A pure protection plan, term insurance provides financial support for your family should you die suddenly. By contrast, frequently offering a maturity reward should you survive the policy period, life insurance mixes protection with a savings or investing element.
Term Insurance
- The Pure protection strategy plan
- It only pays out at death; there is no maturity advantage.
- The coverage amount is high relative to the low premium.
- This is an ideal income replacement option.
Life Insurance
- Life assurance, savings, and investment options are available.
- The payment occurs upon death or maturity.
- More expensive premiums, less coverage
- Suitable for the growth of wealth over the long term.
You should go with term insurance if you want to have inexpensive financial stability, and you should go with life insurance if you want protection in addition to returns.
Frequently Asked Questions (FAQs)
What is term life insurance?
After the policyholder dies, term life insurance compensates their family for a “term”. Term insurance protects dependants without maturity or survivor benefits, unlike whole life and endowment plans. This inexpensive and easy life insurance option is popular with folks who desire large coverage at affordable prices.
Which term insurance is best in india?
Policy, premium, claim settlement ratio, and customer service decide India’s top term insurance. Latest popular brands include LIC Tech Term Plan, HDFC Click 2 Protect Life, ICICI Pru iProtect Smart, Max Life Smart Safe Plus, and Tata AIA Sampoorna Raksha Supreme. Brand confidence makes LIC a popular choice, while ICICI and HDFC are regarded for digital simplicity and adaptability. Age, income, and lifestyle should be considered while choosing a policy online.
How much term insurance do I need?
Based on financial goals and dependents, term insurance coverage should be 10–15 times your annual salary. If your annual income is ₹10 lakhs, consider a ₹1 crore to ₹1.5 crore coverage. Consider past loans, children’s education, daily living expenses, and inflation when estimating the total assured. Calculate the best figure with a term insurance calculator or financial advisor.
How to calculate term insurance cover?
Estimate your current and future financial obligations to determine term insurance. Please calculate your outstanding debts, future expenses (such as children’s schooling or marriage), and your family’s monthly income in your absence. your absence. Subtract your savings and investments. Common formula: Term Cover = (Annual Income × 15) + Loans – Existing Assets. Several internet calculators simplify and improve this process.
How to cancel term insurance policy?
You can cancel term insurance during or after the free-look period. The free-look period (typically 15 to 30 days from insurance receipt) allows you to cancel and get a full refund after stamp duty and medical fees. If you cancel after the free-look period, you must notify the insurance carrier, and pure term policies rarely offer refunds. Call customer care or visit your insurer’s portal for step-by-step instructions.
Conclusion
Buying term insurance is the best way to safeguard your family’s finances in the event of your death. It provides a high level of coverage at a cheap cost, making it an excellent choice for income protection. This type of life insurance comes with a significantly higher cost, although it offers both protection and savings. Purchasing term insurance is the most prudent and time-saving option if your major objective is to provide financial security for your loved ones. Before deciding on the best plan, you should always evaluate your requirements, your liabilities, and your long-term objectives.
