Best term insurances 2021 – Top term insurances in India.
One of the first steps in financial planning is to buy a life insurance policy in the name of the earning family member. However, many ULIPs, investment products and other similar products are mis-sold under the guise of best life insurance policies in India. Consider low cost term insurance if you want to protect your family’s future even when you are not present. What is the best way to choose the best term insurance in India?
What are the best term insurance policies you can consider in 2021? What are the best term insurance policies in 2021 with the highest claims settlement ratio (CSR)?
What is term life insurance and what are its benefits?
If you are already familiar with the concept of term life insurance, you can skip this part.
Term life insurance covers the risk of the insured person. In the event of the insured person’s premature death, the agent receives the sum insured. There is no maturity sum for this plan, as it is a simple risk coverage.
How we selected the best term insurance in 2021.
I would like to share with you some of the features that we considered when selecting the best term insurance plan.
1) High claims settlement ratio (CSR).
One of the elements we looked at when selecting a term insurance company was the claim settlement ratio. While it is not the only criterion, it is one of the most important when it comes to term insurance.
Simply put, the claim settlement ratio refers to the percentage of all claims processed by an insurance company. If an insurance company receives 100 claims but only accepts 95 and rejects 5, the claim settlement ratio is 95 percent (95/100 x 100). The higher the claim settlement ratio, the less likely your family’s claim will be denied in the future.
We have singled out the insurance companies with a high claim settlement ratio above 95%, as reported by IRDA in December 2019.
2) How good is the insurance company:
This is a difficult parameter. How to determine whether an insurance company is reputable or not? We know more about the existence and the positive and negative aspects of the company. Therefore, we have excluded companies with a track record of less than 5 years.
3) Unique or useful features of term insurance:
Can you buy cheap term insurance without useful features? This is not an option anyone would choose. I have filtered out term insurance companies that have both basic and unique features that are beneficial to individuals considering purchasing insurance.
4) Low Premium Term Insurance:
Although price is not the only factor to consider when choosing a life insurance policy, we gave preference to term insurance policies with unique features and affordable rates.
Best Term Insurance Policies for 2021 | Top Term Insurance Policies in India for 2021.
Here is the list of good term insurance policies in India.
HDFC Click 2 Protect Plus Term Insurance Plan
Max Life Term Insurance Plan Plus
ICICI iProtect Smart Term Insurance Plan
LIC Term Insurance Plan
Aegon Life iTerm Insurance Plan
Note: Tata AIA Insurance’s claim settlement ratio is 99.06% and has remained consistently high over the last few years. In turn, Tata AIA has taken the online plan off their website. This means you can no longer buy anything online. I personally contacted them and inquired several times. We have not included Tata Term Insurance in this list because we have not received any feedback and it is not available online. However, for the convenience of our readers, we will be featuring the offline Term Strategy next week.
Best Term Insurance Policies in 2021 | Top Term Insurance Policies in India
Now let us move on to the details of these term insurance plans.
#1 – HDFC Click 2 Protect 3D Plus Term Insurance Plan
Here are the key features of HDFC Click 2 Protect Plus Term Plan.
Minimum age of entry is 18 years and maximum age of entry is 65 years.
Maximum maturity age is 85 years.
Policy term is between 5 and 40 years.
Minimum basic sum assured is Rs 10,000.
Maximum sum assured – no limit.
There are 9 different options like Life Option, 3D Life Option, Extra Life Option, Income Option, Extra Life Income Option, Income Replacement Option, Life Long Protection Option, 3D Life Long Protection, Return of Premium Option in this plan.
The claim settlement ratio for FY 2019-20 (the last one to be announced in February 2021) is 99.07%.
The base premium is approximately Rs 9,717 (including taxes) per annum for a 30-year-old non-smoker for a 30-year policy with a sum assured of Rs 1 crore (life option).
In case of accidental total disability (available on all plans) and diagnosis of critical illness, all future insurance premiums are waived (available on 3D Life and 3D Life Long Protection options).
Life Stage Protection allows you to top up your coverage without a health check. With the Top-up option, you can top up your coverage every year.
Women receive a slice