In today’s uncertain world, securing your family’s future is not just a financial decision — it’s an emotional one. A term insurance plan is one of the most affordable and essential ways to ensure your loved ones are financially protected in case something happens to you.
But with so many insurance companies offering various policies, choosing the best term insurance plan in India can feel overwhelming. Choosing from the best term insurance plans in India can be challenging with so many options in 2025.
This comprehensive guide helps you understand what term insurance is, why you need it, and compares the top 5 best term insurance plans in India based on features, claim settlement ratio, premium, riders, and trust.
Contents
- 1 ✅ What Is Term Insurance?
- 2 🔎 Why You Should Buy from the Best Term Insurance Plans in India
- 3 📊 Top 5 Best Term Insurance Plans in India (Comparison Table – 2025)
- 4 🏢 1. LIC Tech Term Plan – Trusted by Generations
- 5 🏢 2. HDFC Life Click 2 Protect Life – Feature-Packed Flexibility
- 6 🏢 3. ICICI Pru iProtect Smart – High Coverage, Low Cost
- 7 🏢 4. Max Life Smart Secure Plus – Great Balance of Features and Price
- 8 🏢 5. SBI Life eShield Next – Strong Govt-Backed Option
- 9 🧠 How to Choose the Best Term Insurance Plans in India for You
- 10 💰 Term Insurance Tax Benefits (Updated for 2025)
- 11 🧾 Documents Required for Buying Term Insurance Online
- 12 📲 How to Buy Term Insurance Plan Online – Step-by-Step
- 13 📚 Related Insurance Guides
- 14 ❓ FAQs – Best Term Insurance Plans in India
- 15 ✅ Conclusion
✅ What Is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specific period (term). If the policyholder passes away during this term, the nominee receives a lump sum death benefit. There’s no maturity value unless a return of premium option is added.
🧾 Key Features of Term Insurance:
| Feature | Details |
|---|---|
| Coverage | ₹50 lakh – ₹5 crore+ |
| Tenure | 5 to 40 years |
| Payout | Lump sum or staggered monthly |
| Premium | Fixed or flexible |
| Riders | Critical illness, accidental death, waiver of premium |
💡 Term insurance is pure protection — it doesn’t offer savings or investment returns.
🔎 Why You Should Buy from the Best Term Insurance Plans in India
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🛡️ Financial security for family
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📉 Lowest premium compared to other life insurance plans
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👨👩👧👦 Ideal for breadwinners with dependents
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🏠 Covers large liabilities like loans or EMIs
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💰 Tax benefits under 80C and 10(10D)
📊 Top 5 Best Term Insurance Plans in India (Comparison Table – 2025)
| Insurance Company | Plan Name | Claim Settlement Ratio (CSR) | Max Age | Premium (₹/year)* | Riders Available |
|---|---|---|---|---|---|
| LIC of India | Tech Term | 98.52% | 80 yrs | ₹17,000 | ADB, Waiver |
| HDFC Life | Click 2 Protect Life | 99.66% | 75 yrs | ₹14,500 | Critical Illness, Accidental Death |
| ICICI Pru Life | iProtect Smart | 97.90% | 75 yrs | ₹13,800 | CI, Disability |
| Max Life Insurance | Smart Secure Plus | 99.34% | 85 yrs | ₹13,200 | CI, Waiver, ADB |
| SBI Life | eShield Next | 97.76% | 75 yrs | ₹13,000 | Level Cover, Increasing Cover |
*Approx premium for 30-year-old non-smoker, ₹1 crore sum assured, 30-year policy. These five insurers offer some of the best term insurance plans in India with high claim settlement ratios, competitive premiums, and flexible riders.
🏢 1. LIC Tech Term Plan – Trusted by Generations
LIC’s Tech Term Plan is a non-participating pure term insurance policy sold online. Though priced higher than private insurers, LIC is favored for its legacy and trust.
Key Highlights:
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✅ High claim settlement ratio (98.52%)
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✅ Flexible premium payment (regular/single)
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✅ Increasing cover option
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✅ Maturity age up to 80 years
🚫 No critical illness rider. LIC’s complete product brochure is available on their Tech Term page for more detailed info.
✅ Best for: Conservative buyers who value brand trust
🏢 2. HDFC Life Click 2 Protect Life – Feature-Packed Flexibility
HDFC Life offers one of the most customizable term plans with coverage till 85 years and multiple riders.
Key Highlights:
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✅ Multiple plan options (Life, Life Plus, Life Goal)
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✅ Accidental death and critical illness cover
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✅ Return of Premium option
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✅ Whole life option available
🚫 Slightly costlier with riders
✅ Best for: Tech-savvy individuals looking for flexibility
🏢 3. ICICI Pru iProtect Smart – High Coverage, Low Cost
One of the most popular online term plans in India, known for transparency and rider options.
Key Highlights:
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✅ High cover with affordable premiums
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✅ Critical Illness + Waiver of Premium Rider
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✅ Coverage till 99 years
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✅ Choice of payout: lump sum or staggered
🚫 Slightly lower CSR
✅ Best for: People seeking maximum coverage on a budget
🏢 4. Max Life Smart Secure Plus – Great Balance of Features and Price
Offers affordability, high age coverage, and multiple add-on options.
Key Highlights:
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✅ High entry age (up to 85 years)
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✅ Critical illness and disability rider
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✅ Return of premium on survival
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✅ Premium break options
🚫 Online interface less intuitive
✅ Best for: Buyers looking for value + longevity
🏢 5. SBI Life eShield Next – Strong Govt-Backed Option
A digital-only term insurance policy offered by SBI Life, a trusted PSU brand.
Key Highlights:
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✅ Choice of level/increasing cover
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✅ Coverage till 75 years
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✅ Competitive premiums
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✅ Available on online channels
🚫 Limited rider options
✅ Best for: Customers preferring PSU-backed companies
🧠 How to Choose the Best Term Insurance Plans in India for You
Here are the key points to consider:
| Factor | Tip |
|---|---|
| Claim Settlement Ratio | Prefer insurers with CSR > 95% |
| Policy Tenure | Match with retirement age or loan timeline |
| Riders | Choose useful ones like critical illness or waiver |
| Flexibility | Ability to increase cover, convert payout |
| Brand & Service | Reputation and digital accessibility |
| Premium Affordability | Balance between premium and benefits |
💰 Term Insurance Tax Benefits (Updated for 2025)
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Section 80C: Premiums up to ₹1.5 lakh/year are tax deductible
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Section 10(10D): Payout to nominee is tax-free
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New Regime: Optional, but may not include 80C benefit
📌 Tip: Premium paid for spouse or children is also tax deductible under 80C.
🧾 Documents Required for Buying Term Insurance Online
| Document | Use |
|---|---|
| Aadhaar Card | Identity proof |
| PAN Card | For income proof |
| Income Proof | Salary slips / ITR |
| Age Proof | School certificate / PAN |
| Recent Photograph | Passport-size photo |
| Medical Reports | For sum assured > ₹50L (sometimes required) |
📲 How to Buy Term Insurance Plan Online – Step-by-Step
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Visit the official insurer website
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Enter basic details: Age, Income, Smoking status
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Choose sum assured, tenure, and riders
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Get premium quote & customize plan
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Fill the proposal form
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Upload documents and make payment
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Schedule medical test if required
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Policy issued after verification
🧾 Soft copy is issued instantly; hard copy mailed in 7–10 days.
📚 Related Insurance Guides
- Insurance in India – Overview
- How to Choose the Right Health Insurance Policy
- Check Insurance Policy Details Online
❓ FAQs – Best Term Insurance Plans in India
Q. Which company offers the best term insurance in India?
HDFC Life and Max Life currently offer highly flexible plans with great CSR and value. LIC is most trusted.
Q. How much term insurance should I buy?
Ideally, 10–15 times your annual income + any liabilities (e.g., ₹1 crore for ₹8–10L salary).
Q. Is term insurance payout taxable?
No. Death benefit is fully exempt under Section 10(10D).
Q. Should I buy term insurance offline or online?
Online is cheaper, faster, and has equal claim legitimacy.
Q. What if I survive the term?
You won’t get any maturity benefit unless you opted for the Return of Premium option.
✅ Conclusion
Choosing the right term insurance policy is one of the smartest financial decisions you can make. It guarantees peace of mind for you — and security for your loved ones. With so many feature-rich options available today, use this guide to compare and choose the best term insurance plan in India based on your needs, budget, and life goals. Use this guide to confidently select from the best term insurance plans in India that match your lifestyle and financial goals. Before finalizing, it’s a good idea to refer to the IRDAI official website for insurer guidelines and claim settlement reports.
🔔 Pro Tip: Review your policy every 5 years or when major life events happen (marriage, child, loan).