Term Insurance is a type of insurance policy that covers the financial settlement of the family of an insured individual in case he/she is dead or not around anymore. Term insurance makes pay off the family all at once or as per settlement installment. Term insurance works for a specific period.

What can one cover under Term Insurance?

  • Full amount in the instance of Death
  • Full coverage in case of a life-threatening illness
  • Semi coverage in case of disability
  • Semi coverage in the instance of accidental death

To build-up to the insurance, premium pay-out is mandatory. Annual, half-yearly, quarterly and monthly payments of premium can be made; this, in turn, will let you purchase the suitable policy as per your need.

Two factors need to be considered before selecting any term insurance plan:


  1. Claim Settlement Ratio: This is basically the ratio which has to be worked out as the tally of claims that have been settled, divided by the received claims tally. For instance, suppose 10 claims are taken by the insurer. In this case, if 5 are settled and 5 are not settled, the claim settlement ratio will stand at 50%.
  2. The premium for the amount assured: One must have an idea about the total claim they are going to make. To decide the best amount, tally the income and the dependents who are likely to get affected if the insured individual is not around. More the number of dependent, the total sum will go higher according.

Here are the 7 best term insurance plans in India based on high claim settlement and their features that are offered on the plan:-


1. LIC’s e-Term: this is an online plan by LIC with low premium payments. Insurance rates are different for smokers and non-smokers. For non-smokers, the minimum amount insured is Rs. 50 lakhs and one must be at least 18 years to have a claim of the insurance money up to the age of 75. The average income of a person to avail this policy is 3 lakhs. As for smokers, the insurance amount is 25 lakhs and the minimum annual premium for both categories is Rs. 2875.

2. ICICI Prudential I-Protect Smart: ICICI Prudential provides insurance against chronic Illness, disability, in case of accidental death and natural calamities. The insurance amount can be withdrawn all at once or in installments and premiums can be paid on an annual basis.

  1. Policy Term: 5 years to 40 years
  2. Minimum Premium: Rs. 2400

3. HDFC Life Click2Protect Plus: HDFC provides insurance against 4 adversities:

  1. Full pay-out in case of death of the insured member.
  2. The additional amount is assured in the instance of death by accident.
  3. Nominees will be paid in monthly instalment for next 15 years.
  4. Permanent coverage for people with a disability or suffering from a life-threatening illness

Policy Term: 40 Years

Premium payment: Annual, Half-yearly, Quarterly or Monthly

Minimum annual premium: Rs.3000

The minimum amount assured: Rs. 25 lakhs

Online Discount: 5.5% on premium

4. SBI Life Smart Shield: SBI life include insurance coverage in case of accidental death, permanent disability profit and life-threatening Illnesses. Total amount promised should be in multiples of twenty-five lakhs and premium to be paid once or regularly all through the policy term. One can opt for an increased sum amount if they are into family planning or a decreased sum amount in case of loans.

  • Policy Term: 30 Years
  • Premium Payment: Annual, Half-yearly, Quarterly or Monthly
  • Single premium: Rs. 1500
  • Online Discount: 5.5% on premium
  • Regular Premium Annually: Rs. 5,000

5. Max Life Online Term Plan: Max Life is a complete accident benefit rider and with a single annual premium payment option. It has a Life Coverage income option with hundred percent amount assurance all at once or a monthly pay-out option that goes on for 10 years.

  • Policy Term: 35 years
  • Premium Payment Option: Annual
  • The minimum amount assured: Rs.25,000