Top Term Insurance Plans In India comparision

  • ICICI Prudential’s iProtect Term Insurance

  • Future Generali Smart Life

  • AEGON Religare iTerm Plan

  • Kotak Life Insurance e-Preferred


If you are the only bread winner in the family but don’t have too much to spare for insurance policies, then Term Insurance is the place to start with.

So what is Term Insurance?

It is a life insurance plan which provides a pre-stated benefit upon the policyholder’s demise, provided that the death occurs within a certain specified time period (read, policy term).
However, the policy does not provide any returns beyond the stated benefit, unlike certain insurance policies which allow investors to share in returns from the insurance company’s investment portfolio. Therefore, it is an insurance plan that covers only risk.
Put simply, you don’t get any money back if you are alive when the policy matures. But you get substantial coverage by paying a small sum, as low as Rs 2000 /year.
So even if your income is not much you can still get started on protecting yourself.  One should consider taking term life insurance at an early age, since the earlier one takes it, the lower the premiums. Now that you are familiar with the idea of Term Insurance, we detail a few good plans for you:

  

  • ICICI Prudential’s iProtect Term Insurance Plan:

icici prudential iprotect term insurance plan

Unlike conventional “level term” plans , this one is a new age product. One can buy it online, as well as deposit premiums using internet banking facility or credit card facility of the insured. The policy holder does not have to physically visit an insurance agent in this case.

Key Characteristics

Death benefit - ICICI Prudential’s iProtect term insurance plan provides you two options within the same plan, based on the insured person’s protection needs.
•   iProtect Option I : Where the Death Benefit paid out to the nominee is equal to the Sum Assured.
•   iProtect Option II : Where an Additional Death Benefit equals the base Sum Assured or Rs. 5,000,000, whichever is lower, and is payable in the event of the policy owner’s death due to accident.
The above benefits are subject to the policyholder having paid all due regular premiums  and the policy being in force.
So what if you want to insure yourself for Rs 25 lakh? Well, under this plan, you will need to pay Rs 2000 only every year for 25 years. The amount payable is once a year and is tax deductible. 


Instant life insurance cover – In cases where medical examination is not required, the life insurance cover begins immediately upon receipt of premium. However, the insured person will get risk protection only from the date of issuance of policy if he has to undergo a medical check-up.
Maturity benefit – Since this is a term plan, you are not entitled to any maturity benefit.
Surrender benefit – Again, this being a term plan, does not entail any surrender benefits.
The table below provides the indicative annual online premium (excluding service tax and cesses, as applicable) for various combinations of Age and Sum Assured for a healthy male (non-tobacco user), buying a policy term of 25 years.
Age (years) / Sum Assured  (Rs.) iProtect Option 1 iProtect Option 2
25,00,000 50,00,000 1,00,00,000 25,00,000 50,00,000 1,00,00,000
30 Rs. 3,850 Rs. 5,600 Rs. 9,900 Rs. 4,875 Rs. 8,150 Rs. 12,400
40 Rs. 8,175 Rs. 11,000 Rs. 19,500 Rs. 9,200 Rs. 13,200 Rs. 21,700
50 Rs. 15,900 Rs. 26,150 Rs. 46,600 Rs. 17,025 Rs. 28,300 Rs. 48,800

   

 

  • Future Generali Smart Life – Online Term Life Insurance Plan:  

This is a pure term plan that can be purchased online.




future generali term insurance policy
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Yearly Rs 10,00,000 Rs 49,99,999 25 years Eligible for tax benefits under sec 80-C of the IT Act

Key Characteristics of Future Generali Smart Life Online Term Insurance Plan
Benefits
Death Benefit - In case of the demise of the life assured any time during the tenure of an in-force policy, the nominee will receive the Sum Assured and the policy will cease to exist.


Large Sum Assured Rebates - For policyholders buying large Sum Assured levels (in excess of Rs. 225 lakh), a significant discount/rebate is available in the tabular premium as given below.

Future Generali Smart Life Online Term Insurance Plan

Sum Assured (Rs.) Discount (as a percentage of S.A.)
>= 10 lakh ; < 25 lakh Nil
>= 25 lakh ; < 50 lakh 0.02

Maturity benefit – As one would expect from a term insurance plan, the Smart Life policy from Future Generali doesn’t provide any maturity benefit.
Surrender benefit – No surrender benefits as well, since this is a plain, vanilla term insurance policy.
Riders - There are no riders available under the plan

 

  • AEGON Religare iTerm Plan:

term insurance plans in india aegon religare

The iTerm Plan, available through AEGON Religare’s direct sales channels, is another term plan out there in the market.
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Yearly Rs 10,00,000 No limit (Subject to underwriting requirements) 25 years (Also the maximum term in this plan) Eligible for tax benefits under sec 80-C of the IT Act

 

Key Characteristics of AEGON Religare iTerm Plan

Benefits
Death Benefit - In case of your unfortunate demise, your nominee will be entitled to the the Sum Assured. Death benefit, if payable during the grace period, will be paid out after the deduction of the outstanding policy premium.

Maturity Benefit – This being a term insurance plan, there is no maturity benefit payable.
Surrender Benefit – Again, this being a term plan, does not offer any surrender benefits.

 

  • Kotak Life Insurance e-Preferred Term Insurance Plan:

kotak e-preferred term insurance plan in india

Kotak e-Preferred Term is a pure risk cover plan. In case of the death of the policyholder during the policy term, his nominee would receive the Sum Assured as a lump sum.
One can also choose the ‘Step Up Option’ to increase his life cover, as and when certain important events (e.g. marriage, birth of child, etc.) take place in his life, adding to his financial liabilities.
Premium Frequency Minimum Sum Assured Maximum Sum Assured Term Period Tax Benefits
Annual Rs 25,00,000 No limit (Subject to underwriting requirements) 25 years (Also the maximum term in this plan) Eligible for tax benefits under sec 80-C of the IT Act

 

Key Characteristics (Including Tax Benefits and Long Term Benefits)

Low Cost - The Kotak e-Preferred Term policy offers the benefit of high life cover at very economical prices. For example, a 25-year healthy male (non-tobacco user) looking to insure himself with a Sum Assured of Rs. 50 lakh – alongside a Step Up Option – has to shell out an annual premium of Rs.6,688 only.
If you are a woman or if you do not consume tobacco, you will be eligible for the same amount of Sum Assured at a lower premium.
Step Up Option
The policyholder can increase his Sum Assured without having to undergo any additional medical tests. The hike in Sum Assured is subject to any one or more of the following options he wants to exercise, pertaining to certain events.
Events Maximum Increase in Sum Assured
Marriage 50% of original Sum Assured
Purchase of house in India after commencement of the policy (subject to maximum of loan amount)
Birth or legal adoption of a child 25% of original Sum Assured
On the 1st, 3rd and 5th policy anniversary


One can exercise the Step Up option at one or more of the events listed above, as long as his overall revised Sum Assured doesn’t exceed 3 times the original Sum Assured.
The vendor, not surprisingly, will charge an extra  premium in return for providing this enhanced coverage. This additional fee depends on the policy term opted for by the proposer, and will be levied until the policy owner turns 45 or the policy lapses, whichever is earlier.


Step Up Option Fees
Policy Term Up to 15 years Above 15 years
Fees 3% 5%

Step Down Option
Kotak Life Insurance also offers customers a Step Down option, wherein one can reduce his Sum Assured subject to the minimum amount of life cover available under the policy.
Put simply, the policyholder’s premium will be revised downwards based on his new Sum Assured target, as and when he subscribes  for this option. It won’t come for free, of course – for each ‘Step Down’ request, the company will impose a charge of Rs.500.
Plan Conversion Flexibility
You may switch from the Kotak e-Preferred Term to any non-term insurance plan provided by Kotak Life Insurance, without having to undergo any medical examination. The vendor will charge you premiums applicable under the new plan.
This conversion flexibility is available throughout the policy term,  provided there are at least 5 years before the protection plan lapses.
Tax Benefit
Those owning the Kotak e-Preferred Term plan are entitled to tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961.
Death Benefit
The death benefit payable under this term insurance plan is calculated as Sum Assured minus the balance of the premium (if any) payable in the year of death.
Maturity Benefit– None
Surrender Benefit – None
Suicide Exclusion - In case the life insured commits suicide within 12 months of the commencement of the policy or the revival of the plan, the protection cover will cease to exist.
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