What is Term Life Insurance? Why is it necessary?
Term insurance is a type of life insurance that offers protection to your loved ones in the unfortunate event of your passing during the policy term. It is considered the most cost-effective form of life insurance recommended for individuals with dependents relying on them financially, such as a spouse or children.
Typically, term insurance policies provide coverage for a fixed duration like 20, 30, or 40 years. If you were to pass within this period, your beneficiaries would receive a tax-death benefit. This sum can be used to settle debts, cover funeral expenses, or support your loved ones.
One of the advantages of term insurance plans is their affordability when compared to types of life insurance, like whole life insurance. This affordability stems from term policies, not including any savings component; you are solely paying for life insurance coverage.
Furthermore, term insurance plans offer flexibility as they can be tailored to your requirements.
These are some established and reputable insurance companies in India;
1. Life Insurance Corporation of India (LIC)
2. HDFC Life
3. ICICI Prudential Life Insurance
4. Max Life Insurance
5. TATA AIA Life Insurance
6. Bajaj Allianz Life Insurance
7. PNB MetLife India Insurance
8. Canara HSBC OBC Life Insurance
9. Kotak Mahindra Life Insurance
10. Aegon Life Insurance
These companies offer a range of term insurance plans to suit your needs and budget.
When selecting a term insurance company, it’s important to compare the plans companies offer, considering their stability and customer service ratings.
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) is the life insurance company in India, holding over 60% market share.
Jeevan Amar: This plan provides a lump sum payment to beneficiaries upon the insured’s death.
Anmol Jeevan: This plan offers an income to beneficiaries if the insured passes away.
Saral Jeevan Bima: This insurance plan is designed to be straightforward and affordable, making it easy to purchase and understand.
HDFC Life
HDFC Life, a life insurance company in India, provides a range of term insurance plans that cater to different needs;
Click 2 Protect Super: This plan offers comprehensive coverage at a competitive price.
HDFC Life Sanchay Plus: Besides providing a lump sum payment upon the insured’s demise, this plan allows you to invest a portion of your premium for policy growth.
HDFC Life Sampoorn Nivesh: A unit-linked insurance plan (ULIP) that combines life insurance protection with investment opportunities.
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance is another life insurance company operating in India. They offer term insurance plans with features;
iProtect Smart: This comprehensive plan ensures extensive coverage at an affordable cost.
ICICI Pru iProtect Plus: Alongside benefits, this plan includes a premium waiver in case of disability and compensation upon surviving the policy term.
ICICI Pru iProtect Guaranteed Income: Providing guaranteed income to beneficiaries upon the insured’s demise.
Max Life Insurance
Max Life Insurance is one of the life insurance companies in India. They provide a range of term insurance plans, including;
Smart Secure Plus: This plan offers coverage at a price.
Max Life Guaranteed Income Plus: In the event of the insured’s death, this plan ensures a guaranteed monthly income for the beneficiaries.
Max Life Cancer Protect: If the insured is diagnosed with cancer, this plan offers additional coverage.
Max Life Insurance
TATA AIA Life Insurance is a venture between Tata Group and AIA Group. They offer term insurance plans, such as;
Tata AIA iRaksha TROP: This plan provides coverage at a price.
Tata AIA Sampoorna Raksha: In case of the insured’s death, this plan guarantees an income for the beneficiaries.
Tata AIA Cancer Secure: This plan offers coverage if the insured is diagnosed with cancer.
Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance is a venture between Bajaj Finserv and Allianz S.E. They have diverse term insurance plans available, including;
Bajaj Allianz Life eTouch: Offering coverage at a price point.
Bajaj Allianz Life Smart Protect: This plan has added advantages, like a premium waiver in case the insured becomes disabled and a premium refund if the insured survives the policy term.
Bajaj Allianz Life Goal Assure: This plan guarantees a lump sum payment to the beneficiaries in case of the insured’s death.
PNB MetLife India Insurance
PNB MetLife India Insurance is a Punjab National Bank and MetLife Inc. collaboration. They offer term insurance plans, including;
PNB MetLife Mera Term Plan Plus: This plan provides coverage at a competitive price.
PNB MetLife Mera Term. Savings: Along with coverage, this plan also offers a guaranteed return of premium if the insured survives the policy term.
PNB MetLife Mera Term Plan Plus Critical Illness: In addition to coverage, this plan protects in case of critical illness diagnosis for the insured.
Canara HSBC OBC Life Insurance
Canara HSBC OBC Life Insurance is a partnership between Canara Bank, HSBC Insurance, and Oriental Bank of Commerce. They offer term insurance plans, including;
Canara HSBC OBC Life iSelect Term Plan: This comprehensive plan offers coverage at a price.
Canara HSBC OBC Life iSelect Term Plan Furthermore, this plan offers added advantages, including Affordable premiums, Flexible policy terms, High coverage, and Riders.
Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance is one of India’s life insurance companies. They offer a range of term insurance plans, including;
Kotak Life Secure Plus: This particular plan provides coverage at a price.
Kotak Life Guaranteed Income: In the unfortunate event of the insured’s demise, this plan ensures a guaranteed monthly income for their beneficiaries.
Kotak Life Critical Illness Cover: This plan offers coverage if the insured is diagnosed with an illness.
Aegon Life Insurance
Aegon Life Insurance is a subsidiary of Aegon N.V., renowned worldwide as a leading life insurance company. Their term insurance plans include the following;
Aegon Life iTerm Protect: Offering coverage at a cost.
Aegon Life iTerm Plus: Besides benefits, this plan includes a premium waiver in case of disability and a return of premium if the policyholder survives the policy term.
Aegon Life iTerm Critical Illness: This plan extends coverage to illnesses diagnosed in the insured.
Bharti AXA Life Insurance
Bharti AXA Life Insurance is a venture between Bharti Enterprises and AXA Group. They provide a range of term insurance options, which include;
AXA Life Secure. This plan offers coverage at a competitive price.
AXA Life Guaranteed Income Plus: In the event of the insured’s death, this plan ensures a guaranteed income for the beneficiaries.
AXA Life Critical Illness Cover Plus: This plan provides coverage if the insured is diagnosed with an illness.
Some of the top-term insurance plans offered by companies include:
Life Insurance Corporation of India (LIC): Jeevan Amar
HDFC Life: Click 2 Protect Super
ICICI Prudential Life Insurance: iProtect Plus
Max Life Insurance: Smart Secure Plus
TATA AIA Life Insurance: Tata AIA Raksha TROP
Bajaj Allianz Life Insurance: eTouch
PNB MetLife India Insurance: Mera Term Plan Plus Savings
Canara HSBC OBC Life Insurance: iSelect Term Plan Plus
Kotak Mahindra Life Insurance: Secure Plus
Aegon Life Insurance: iTerm Plus
Bharti AXA Life Insurance; Secure Plus
Please note that these are some of the best term insurance plans available. It is important to compare and assess company offerings to find the best suits your needs and budget. Term life insurance is a tool that plays a vital role in safeguarding your loved ones in the unfortunate event of your demise. Selecting a term insurance plan that aligns with your needs and financial circumstances is important. Additionally, comparing the offerings from companies is essential.
The list above highlights ten term insurance companies, each offering a range of plans. When making your selection, there are factors to consider:
Coverage: Determine the type of coverage you require. Are you looking for a plan that provides a lump sum payment to your beneficiaries upon your passing, or would you prefer a plan offering income support?
Price: Assess how much you can comfortably afford to pay in premiums. Generally, term insurance plans are affordable; nevertheless, comparing prices across companies is wise.
Riders: Consider add-ons known as riders, which offer coverage such as protection against critical illness or disability. Evaluate which riders are important to you and opt for a plan that includes them.
Furthermore, it is prudent to consider insurance providers’ stability and customer service ratings when selecting a term insurance plan. You can find this information on the company’s website or by contacting the Insurance Regulatory and Development Authority of India (IRDAI).
** Please note that these descriptions may not include all details, so conducting research is advisable before making any decisions.**
