Term insurance, a sub-type of life insurance, offers coverage to the policy buyer for a specific policy tenure, usually ranging from 5 years to 40 years. Term insurance plans have become an extremely popular choice for policy buyers these days due to their affordable pricing. A key reason for this is that term insurance policies do not acquire a cash value unlike other life insurance products.
Thus, a term insurance policy provides a risk cover against death on the life of the policyholder. If the policyholder meets with an untimely death during the policy tenure, a death benefit will be paid out to the nominee. However, unless the policy buyer has opted for a TROP (Term Insurance with Return of Premium) plan, no maturity benefit will be paid by the insurer. Similarly, term insurance policies also do not offer survival benefits.
That being said, if you are looking for a pure protection-oriented cover, a term insurance policy is your best bet. Listed below are five term insurance policies that are offered by life insurance providers with the highest claim settlement ratios in FY16-17.
1. LIC’s Amulya Jeevan II Plan: The Amulya Jeevan II Plan from LIC is an insurance policy that provides comprehensive coverage to the policyholder at an affordable price. Under this policy, if the policyholder passes away while the policy is still active, a death benefit will be paid to the nominee. No maturity benefit is payable as per this policy.
2. Max Life Super Term Plan: The Super Term Plan from Max Life Insurance is a non-participating, non-linked, term insurance policy. The unique benefit of this policy is that policy buyers can choose between two sum assured options – Level Sum Assured and Increasing Sum Assured. Under the Increasing Sum Assured option, the sum assured that you opt for at the time of purchasing this policy will increase by 5% every policy year till the completion of the policy term, without you having to pay an additional premium. Listed below are the key features of this policy.
3. HDFC Life Click 2 Protect 3D Plus Plan: The Click 2 Protect 3D Plus Plan is an online, non-participating, non-linked, term insurance policy that offers comprehensive protection to the policy buyer at an affordable cost. The unique benefit of this policy is that it comes with 9 plan options. Thus, policy buyers can choose a particular plan option as per their needs. The features of the Click 2 Protect 3D Plus Plan are listed below:
4. Aegon Life iTerm Insurance Plan: The iTerm Insurance Plan offered by Aegon Life Insurance is an online term insurance policy that is extremely cost effective. In the event of the policyholder’s untimely death, the insurer will pay a lump sum amount to the nominee. Further, the nominee will also receive a guaranteed monthly benefit for a total of 100 months.
5. SBI Life – Poorna Suraksha Plan: Poorna Suraksha Plan from SBI Life Insurance provides comprehensive coverage against both death and critical illnesses. Thus, policy buyers can avail coverage against around 36 critical illnesses. The benefits and features of this policy are listed below.
A term insurance policy is a smart choice if you want your dependents to be financially secure, regardless of what may happen in the future. Make sure to do your due research, compare various policies, and opt for a policy that is best suited to your needs.
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