Life is unpredictable, and although we cannot see into the future, we can definitely prepare for it. This is particularly true in India, where taking care of one’s financial well-being after they are gone is deeply embedded in the culture. Therefore, selecting an appropriate life insurance policy becomes crucial.
There are many policies available with a variety of features which can be confusing to navigate through all the options at first glance but armed with knowledge and the right guidance one can make informed decisions about safeguarding their family’s future. In this blog post, we will discuss some important factors you should consider while choosing your life cover plan as well as share a few bestsellers among Indian insurers.
Best Life Insurance Policies:
The “Best Life Insurance Policy” may differ from person to person depending upon their needs and preferences; however, there are few companies within India that offer exceptional products when it comes to coverage amount provided under them along with other facilities like customer service etc. Some such providers include;
1)Aditya Birla Sun Life Insurance
Aditya Birla Sun Life offers various types of insurance that ensure financial protection through guaranteed benefits and wealth boosters for life. It also provides a 5% discount on buying online. These plans have long policy terms (up to 100 yrs.), large sum assured coverage and optional add-on riders such as critical illness rider, accidental death rider, surgical care rider, hospital care rider waiver of premium rider etc. They also offer whole life cover up to 100 years.
This company has a high claim settlement ratio i.e., 98.07% for FY 2021-22 end. They provide a joint life cover option too besides providing coverage till the end of the policy term.
Here are some specific plans offered by Aditya Birla Sun Life Insurance:
1) ABSLI Fixed Maturity Plan: It offers life coverage, policy surrender benefit, guaranteed maturity benefit and changeability in investment amount. The minimum annualized premium is INR 12,000 and the minimum sum assured is INR 15,000. NRI customers can also buy this policy.
2) ABSLI Assured Savings Plan: It offers guaranteed maturity benefits, loyalty additions that enhance the maturity corpus & flexibility to enhance coverage from riders like accidental death and critical illness etc. The minimum annualized premium is INR 1 lakh.
3) ABSLI Assured Income Plus: It provides death/maturity/survival benefits with guaranteed returns on investments & option to choose benefit payouts from income-only benefits or income with lump sum benefits.
4) ABSLI Vision Life Income Plus Plan: Offers life coverage up to 100 years along with regular income guaranteed and bonus payouts. The minimum annualized premium is INR 50,000.
5) ABSLI Secure Plus Plan: Provides guaranteed regular income, death/maturity/survival benefits and the option of receiving the discounted value of survival benefits as a lump sum. The minimum sum assured is INR 3,50,000 and the minimum annualized premium is INR 50,000.
2. HDFC Life Click 2 Protect Plus
HDFC Life Click 2 Protect Plus is a widely known term insurance plan provided by HDFC Life Insurance. It provides financial security against three Ds: Death, Disability and Disease. There are nine different plan options under this policy which makes it a comprehensive insurance solution.
Here are some key features of this policy:
- Protection against 3 Ds: This policy gives protection against Death, Disability and Disease.
- 9 Plan Options: It provides 9 different plan options. You can choose anyone based on your requirements.
- Whole Life Cover: You can get whole life cover in the Life long protection and 3D Life Long Protection option.
- Premium Waiver: All future premiums are waived off on Accidental Total Permanent Disability (inbuilt with all 9 options) and on the diagnosis of Critical Illness (available under the 3D Life option and 3D Life long protection option).
- Special Premium Rates: This policy offers special premium rates for female lives and non-tobacco users.
- Life Stage Protection: The feature of increasing insurance cover on certain key milestones (like childbirth) without any medicals.
- Top-Up Options: Flexibility to increase your cover every year through top-up options. This option can be exercised only at the inception of the Policy.
- Tax Benefits: Tax Benefits on premiums paid and pay-outs under Section 80C & Section 10(10D) respectively of the Income Tax Act.
3. SBI Life eShield
SBI Life eShield is a pure-term insurance plan offered by SBI Life Insurance Company Limited. It is a non-linked, non-participating plan that provides financial protection to your family in case of an unfortunate event with you during the policy term. The scheme comes with many benefits such as :
- Death benefit: On the death of the policyholder during the policy term, the sum assured is paid to the nominee.
- Accidental death benefit: An additional payout is made in case of accidental death of the life insured under this optional benefit.
- Increasing cover: This optional feature automatically increases the sum assured over time, to keep pace with inflation and offer a higher protection.
- Tax benefits: Premiums paid towards SBI Life eShield are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Also, the Maturity/Death benefit is exempted from tax under section 10(10D).
SBI Life eShield is an ideal choice if you are looking for an affordable term insurance plan that offers various benefits. The plan can be bought online or through SBI Life agents.
Here are some key features of SBI Life eShield-
- Term: 10 to 40 years
- Sum Assured: Rs.1 lakh to Rs.1 crore
- Policy Term: 10 to 40 years
- Premium Payment Mode: Regular Pay / Limited Pay
SBI Life eShield is a term insurance plan that provides financial protection to your family in case of an unfortunate event with you during the policy period. The scheme offers several advantages including death benefits, accidental death benefits, increasing cover facility and tax benefits. If you’re looking for a cost-effective term insurance plan with multiple benefits then SBI Life eShield should definitely be considered as one among them.
4. Future Generali Care Plus Rural
The Future Generali Care Plus is a traditional pure-term plan with the intent of giving financial protection for individuals and their families in case of an unfortunate event. This insurance is very affordable and it offers rebates on higher amounts assured as well as tax savings.
Some highlights of this policy include:
- Dual Options: There are two options under this scheme – Classic and Premier; each option has different sum-assured levels having decent coverages.
- affordable: The low premium rates protect an individual from financial burden.
- Discounts: Depending on the amount assured, there may be discounts available on premiums paid by clients themselves.
- Flexible Policy Term: People can decide how long they want to be covered for by selecting years between 5 and 30 years as their policy term
- Death Benefit: In the event of death due to any cause during the tenure of the contract, the nominee will receive a certain payout called a death benefit
- Rider Benefit: One can enhance life coverage further with rider benefits such as ‘Future Generali Non-linked Accidental Rider’ which add-on that covers accidental deaths or disability caused because accidents happen anywhere anytime either at work workplace/home etc.
- Rebates On High Sum Assureds: Higher sums insured attract reduced costs chargeable against premiums paid for them under this program.
However, there are some exclusions to this plan which are:
– Policy Loan: No loan can be taken out against it
– Surrender Benefit: None offered hereunder
– Suicide Exclusion: Claims cannot arise within the first year after commencement except if induced by insanity proven beyond a reasonable doubt; i.e., suicide committed within one year from the start date is excluded unless the insanity defence succeeds; This means that someone who takes their own life within 12 months of taking up cover won’t get any payout unless it can be shown legally that they were not in sound mind when doing so After 12 months however all causes including suicidal deaths become payable henceforth without any such proof required.
– Maturity Benefit: No such benefit exists under the current terms of the agreement.
5. Aviva i-Life
Aviva i-Life Insurance is a pure-term insurance plan presented by Aviva India. This policy provides financial protection to your family in case you pass away within the policy period due to any reason.
Given below are some key features of this plan:
Purpose: Provides a payout (death benefit) to the nominee/beneficiary if the policyholder dies during its term.
Type of Insurance: Term life insurance which does not have any maturity value or benefits attached to it.
Benefits:
Death Benefit: If you die while this policy is in force then your nominee will get a lump sum amount equal to the sum assured chosen at inception as a death benefit.
Discounts: Aviva i-Life provides discounts for –
Women: Female lives can avail of lower premium rates under this plan.
Higher Sum Assured: Opting for a larger sum assured could make you eligible for a discount.
Tax Benefits: The premiums paid towards Aviva i-Life may qualify for deduction under section 80C of the Income Tax Act, 1961 and the death benefit received by the nominee is usually exempt from tax as per section 10(10D) of the Income Tax Act, 1961.
Additional Points:
Online Purchase: You can buy this policy directly online without involving an agent or any intermediary.
Flexibility: It offers flexibility in terms of premium payment frequency which can be yearly or half-yearly etc.
Important to Consider:
No Maturity Benefit: Unlike savings or investment-linked plans where some returns are provided if you survive till the end of tenure – there is no such payout available here as it’s a pure protection scheme only covering against untimely death or risk till specified years called term period itself lapses (whichever comes earlier).
Renewability: The renewal option depends on the insurer’s underwriting policy guidelines at that time. However, one may have the option to renew their term coverage up to a certain age but premium rates shall increase with the increase in risk due to age factor over each term period.
Renewal: The plan does not renew itself. However, you may be able to buy a new term life policy at the end of the term, but your premiums will probably be higher because of your increased age.
6. Max Life Online Term Plan Plus Basic Life Cover
Max Life Online Term Plan Plus Basic Life Cover is a product from Max Life Insurance that provides pure term life insurance.
Here’s what it means:
Pure Term Life Insurance: This plan covers only death during the policy period. There is no maturity benefit if you survive the entire duration.
Focus on Basic Life Cover: This version of Max Life Online Term Plan Plus prioritizes giving a death benefit without any extra frills or riders. Riders are optional benefits that can be added to a base term plan for more coverage such as critical illness cover or disability income benefit. By concentrating solely on the death benefit, this policy may be cheaper.
Key Features:
Death Benefit: If the insured person dies while still within his/her policy term then their nominated beneficiary shall receive a lump sum payment (Sum Assured) determined at commencement date.
Flexibility in Coverage Term and Premium Payment: You have the freedom to select how long you wish your coverage last as well as when it should start paying its premiums.
Sum Assured Options: Depending on one’s financial obligations and goals they want securing for their family in case they pass away hence making different sums available for selection under this category.
Tax Benefits: The premium amounts paid towards MaxLifeOnlineTermPlanPlusBasicLifeCover may qualify for deductions under section 80C of ITA61 while proceeds out of it could also attract exemption from tax as per provision contained in section 10(10D) of ITA61.
Advantages:
Potentially Lower Cost: This plan might cost less than other term plans with additional riders since only death benefits are considered here.
Simplicity: A basic scheme can be understood easily without the complexities that come with supplementary covers or riders.
Disadvantages:
Limited Coverage: This plan offers death benefits only. If you need extra protection such as critical illness coverage or disability, then consider adding a rider (which will increase cost) or take up an alternative scheme altogether.
7. PNB MetLife Mera Term Plan
Mera term plan by PNB MetLife is a type of life insurance that covers only for a specified period. It provides financial security to your beneficiaries in the event of death within the term of the policy. Below are its main features:
Type of Insurance: Pure Term Life Insurance (provides coverage but no maturity benefit)
Benefits:
- Death Benefit: In case of death during the policy term, the nominee will receive a Sum Assured as a lump sum payout.
- Coverage Options: Some flexibility is offered under this plan:
- Policy Term: Choose from a range of 10 to 30 years or cover till age 99 and above.
- Payout Option: The death benefit can be given either in a lump sum or monthly instalments.
Optional Riders (Additional Costs): You may add riders such as critical illness or disability benefits which will enhance coverage provided by the base product thereby increasing the premium payable.
Advantages:
- Relatively Low Cost: Generally, these types of policies cost less than others where a savings component is involved.
- Straightforward Coverage: Pure term plans are easy to understand – you pay a premium; if dies within a specified time, the amount assured is paid out else nothing happens after the expiry date mentioned on the contract paper
Disadvantages:
No Maturity Benefit: If survives until the end date then no benefits are received at all ie it does not mature as other endowment assurance products do.
Limited Coverage: Only pays out when the person insured against dies and is therefore unable to provide living benefits while still alive, unlike whole life assurance schemes which offer both- or even money-back plans that give periodic returns on a regular basis irrespective of whether one has passed away or alive but met stipulated conditions set out therein.
Who Should Consider This Plan?
This policy would suit anybody looking for affordable pure protection with emphasis on payout upon the demise of the life assured only.
People who want to ensure their dependents are financially stable after they die should also take up this cover.
Paying for Your Policy
You can pay your premiums once a year, twice a year, every three months or monthly.
Advantages:
Affordability: Term life insurance is usually cheaper than other forms of insurance policies with an investment feature.
The simplicity of the concept: Bharti AXA Life Elite Secure plan is easy to understand – you make premium payments and upon your demise within the term, the insured amount is disbursed to your beneficiary in a lump sum.
Disadvantages:
No Maturity Benefit: If you outlive the policy period there will be no payout.
Who Should Consider This Plan?
People who need flexible options for coverage within their budgets should take advantage of this product. Anyone wishing to protect their loved ones financially after they pass away.
Additional Things To Think About With Bharti AXA Life Elite Secure:
- Compare Rates– Shop around! Get quotes from several different providers so you can compare prices and features side by side before choosing which one will work best for your situation.
- Consider Your Needs– Take into account all financial obligations including dependents as well as figuring out how much money would be needed by family members if something were to happen where you cannot earn an income anymore.
- Policy Wordings Review- Read through the policy carefully making sure that everything is understood such as exclusions or limitations that may apply under certain circumstances otherwise known as fine print.
8. Bharti Axa Life Elite Secure
Bharti AXA Life Elite Secure is a term plan that pays a lump sum benefit to the nominee in case of the death of the insured person during the policy term. Here are a few things that you may want to know about it:
Type of Insurance:
Term Life Insurance: Coverage for a specific period (5 years – 75 years), pays a death benefit if the policyholder dies within this time frame.
Benefits:
- Death Benefit: If the policyholder dies during the policy tenure, then his/her nominee will get the sum assured which is pre-decided at inception. This should help them manage their financial needs when they don’t have you around.
- Flexible Policy Term: You can choose your desired duration between 5 to 25 or even up till attaining an age of 75 years depending upon what you want to achieve through this plan.
- Affordable Premiums: The product has been priced very competitively thereby ensuring that a maximum number of people can afford to buy life cover without putting too much strain on their pockets.
- Tax Benefits: Life insurance premiums paid up to Rs.1.5 lakhs per annum are eligible for tax benefits under section 80C of the Income Tax Act (subject to change). Also, generally, income tax laws do not treat proceeds from such policies as taxable income in the hands receiver i.e., the nominee/beneficiary gets it free from any liability towards payment thereof towards authorities.
Other Key Details:
- Non-Participating Plan: This is one traditional type where the company does not share profits with policyholders by way of declaring bonuses etc..
- Policy Wording: It’s the non-participating type where the sum assured amount determines growth in policy value over time.
- Maturity Benefit: As mentioned earlier since this happens only upon unfortunate demise there cannot be anything like maturity in these plans thus making them pure protection covers for people who need higher covers at lower cost.
- Riders (Optional Add-ons): You can choose riders as per your need like accidental death benefit rider, permanent disability rider etc. However, these add-ons come at an extra cost over above base policy premium amount.
9. LIC’s Jeevan Pragati Plan
LIC’s Jeevan Pragati Plan (Plan No. 838) is a participating non-linked endowment plan that is offered by the Life Insurance Corporation of India (LIC). It provides protection and savings with some features which are given below:
Key Features:
Increasing Sum Assured: This means that, unlike many other such policies, at the time of death benefit under this policy, the sum assured automatically gets increased every five years during the policy term. This feature helps in inflation protection and provides more coverage over time.
Maturity Benefit: On maturity of the policy, the accumulated sum assured along with bonuses declared by LIC will be paid.
Loan Facility: Loan can be availed against surrender value after completion of 3 years premium payment.
Tax Benefits: Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act (subject to change). Maturity proceeds are generally tax-free under Section 10(10D) of the Act.
Death Benefit: On death, the nominee gets the Sum Assured + any accrued bonuses, provided all premiums are paid. The minimum payout is 105% of the total premium paid to date.
Eligibility:
Age: The minimum age at entry is 12 years while the maximum allowed age is 45 years.
Policy Term: Policy term can vary from a minimum of 12 years to a maximum of 20 years.
Sum Assured: The minimum amount that must be assured on one’s life under this plan should be Rs.150000/- and there is no upper limit on it.
Things to Consider
Non-Linked Plan – Returns in this scheme are based on LIC’s declaration of bonuses; hence they do not depend upon stock market performance as in linked plans where part or whole fund value may get invested into equities etc which carry higher risks but also give chances for higher returns at times when markets perform well too…;
Surrender Charges – One should remember about possible financial loss that can occur if the policy is surrendered before its maturity date because there might be some penalties applied by the insurer for early termination of the contract ;
Riders (Optional) – Additional coverage options like accidental death benefit rider disability benefit rider etc can be added to this policy but these will increase premium rates payable under such riders…;
Alternatives to Consider
LIC Jeevan Labh – Another LIC plan that offers increasing sum assured benefit but for a longer term (minimum 16 years);
Term Insurance with Investment Plan – One can also think about combining a term insurance plan for risk protection needs along with a separate investment plan so as to accumulate wealth over a period of time; To sum it up, LIC’s Jeevan Pragati could work well as an endowment assurance scheme for those who need higher life cover coupled with minimum guaranteed returns. However, one must study features in-depth, understand their implications from a risk point of view and align them properly vis-à-vis investment objectives before going ahead. Also, compare similar products available elsewhere in the market before finalizing any decision.
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