Top 10 Life Insurance Policies and Plans in India 

Looking for the best life insurance policy in India? Read this to know the terms and conditions and other details of life insurance policy in India

This article is related to an affiliate advertising program and The New Indian Express's journalists were not involved in production of this article. 

Abstract

We have seen everything over the past two years that was even beyond our wildest dreams. These trying times have taught us to be ready for the future and to protect our loved ones. Purchasing a term insurance policy can be a start in that direction. You can quickly examine the benefits and drawbacks of each plan and how a plan can help you safeguard the future of your loved ones through an online term plan comparison. You may choose the finest life insurance policy in India by comparing life insurance policy details online.

Introduction     

One of the most crucial choices in this uncertain age is purchasing a life insurance policy in India. Life insurance coverage is advised depending on one's financial situation. This is because the earner's untimely demise may impact the entire family's life.

A life insurance plan is an agreement between a life insurance company and a policyholder stating that the policyholder's beneficiary will receive a predetermined amount of money in the event of the insured's untimely death. If the policyholder lives, they will get a sum assured amount as a maturity benefit in exchange for making premium payments for a predetermined time.

A life insurance policy aids the policyholder in providing for his family's financial stability after his passing. It can be difficult to choose the finest life insurance policy in India because various life insurance providers have many available options.

Types of Life Insurance Policies in India

1. Whole Life Plan - This life insurance policy protects the policyholder's entire lifetime. Because the coverage is whole-life, a claim must be filed to obtain it. Upon the policyholder's passing, the nominee will unquestionably receive a lump sum payment. Whole life insurance plans have high premiums because they offer full-risk coverage.

2. Term Plan - A form plan is among the least expensive or most affordable life insurance policies on the market right now. In a term plan, the life insurance company only pays a lump payment to the policyholder's nominee if the policyholder passes away during the plan's term. In this method, the insurance provider does not provide anything if the policyholder lives through the plan's expiration; in other words, there is no survivor benefit under this plan. Many businesses provide term plans with survivorship benefits as riders; however, the riders come at an additional cost.

3. Money Back Policy - This plan is suitable for those who need family financial security and a small amount of cash to cover personal expenses during the policy's term. In this manner, and in accordance with this contract, the insurance provider pays a lump sum of money at the policyholder's death and a set amount at specific intervals, such as five years and ten years. This plan has a high premium as well.

4. Endowment Plan - This life insurance policy combines savings and protection. When the policy reaches its maturity, or the policyholder passes away, the Ste insurance provider is required by this plan to pay a specified sum. This plan often lasts for 20, 15, or 10 years, and the premiums are expensive. Depending on the policyholder's insurance, the money received under the policy may be without profit or with profit.

5. Unit Linked Plan - A Unit Linked Insurance Plan, or ULIP, is a strategy that offers both insurance and investment opportunities. There are two components to the premium that the policyholder pays to the insurance provider. The insurance company receives the initial portion into a pool to cover policyholder death claims. According to the preferences of the insurance providers, the second portion is invested in the stock market. Each day, the NAV for the investments is calculated.

6. Child Plan - A child plan is a type of policy that works to protect children's futures. This policy offers a lump sum payment for the child's wedding or higher education. This regulation states that if a child reaches a certain age, they are eligible to receive a certain amount of money.

7. Retirement Plan - This plan offers financial assistance in old age or after retirement, as the name would imply. The purpose of the retirement plan is to secure the insured's retirement age. Beginning at an early age or as soon as one begins to earn money, one might start investing in this plan.

10 Best Life Insurance Policy in India

Your insurance policy is a long-term investment choice with guaranteed returns and protection against unforeseen events. While insurance might ensure financial flow under challenging times, it is also true that poorly designed plans may prove useless in emergencies. As a result, create a list of your requirements and compare each insurance offer made by the top insurers. The complete 10 insurance plans provided by some of the top insurance providers in India are listed below:

Plan Name

Entry Age

Policy Term

Sum Assured

Aditya Birla Sun Life Insurance

18 - 65 years

10 - 55 years

Minimum - Rs.25 lakh Maximum - No limit

SBI Life eShield

18 - 65 years

5 - 30 years

Minimum - Rs.20 lakh Maximum - No limit

HDFC Life Click 2 Protect Plus

18 - 65 years

10 - 40 years

Minimum - Rs.25 lakh Maximum - No limit

Aviva i-Life

18 - 55 years

10 - 35 years

Minimum - Rs.25 lakh Maximum - No limit

Future Generali Care Plus

18 - 60 years

5 - 30 years

Minimum - Rs.15 lakh Maximum - Rs. 50 Laks

Birla Sun Life BSLI Protect@Ease Plan

18 - 65 years

5 - 40 years

Minimum - Rs.30 lakh Maximum - No Limit

LIC's Jeevan Pragati Plan

12 - 45 years

12 - 20 years

Minimum - Rs.15 lakh Maximum - No Limit

Max Life Online Term Plan Plus Basic Life Cover

18 - 60 years

10 - 40 years

Minimum - Rs.25 lakh Maximum - 100 Crores

Bharti Axa Life Elite Secure

18 - 75 years

10 - 25 years

Minimum - Rs.25 lakh Maximum - No Limit

PNB MetLife Mera Term Plan

18 - 65 years

10 - 40 Years

Minimum - Rs.10 lakh Maximum - No Limit

Aditya Birla Sun Life Insurance:

Birla, Aditya There are two types of coverage available under the Sun Life Term Insurance Plan: growing sum assured and flat sum secured. Under the level sum promised, the amount is guaranteed to remain constant for the entire year; under the growing sum assured, the amount is guaranteed to increase by 5% or 10% annually.

Minimum age 

18 Years

Maximum age 

65 years

Minimum term period

5 years

Maximum term period

30 years

Minimum sum assured

Rs. 30,00,000

Maximum sum assured

No limit on the maximum sum assured

Premium payment mode

Monthly, quarterly, half-yearly or annually

Premium term

Equal as policy term

SBI Life Shield:

A non-linked internet insurance product called SBI Life eShield offers greater returns on premiums. Basically, it's made to protect your family while you're away and provide for them financially. At maturity, the plan does not provide rewards for surviving. You can just click to apply for the plan without filling out any paperwork or meeting with an adviser.

Cover options 

- Level Cover with Accidental Benefit

- Increasing Cover with Accidental Benefit

Maximum age 

- 65 years for both Level Cover and Level Cover with Accidental Death Benefit

- 60 years for Increasing Cover and Increasing Cover with Accidental Death Benefit

Minimum age 

18 years

Minimum sum assured

Rs. 20,00,000

Maximum sum assured

No limit

Minimum policy term

- 5 years (For Level Cover & Level Cover with Accident Benefit)

- 10 years (For Increasing Cover & Increasing Cover with Accident Benefit)

Premium payment mode

Yearly

Premium term

Same as policy term

Minimum premium amount

Rs. 3,500

Maximum premium amount

No limit

HDFC Life Click 2 Protect Plus:

An extensive level of security for your loved ones against the uncertainties of life is guaranteed by the term insurance plan called Click 2 Protect Plus, which was introduced by HDFC Life. Under the Income and Income Plus Option, even their immediate needs will be met with a monthly income.

Cover options 

- Life option

- Extra life option 

- Income Option

- Income Plus Option

Minimum age 

18 years

Maximum age 

65 years

Minimum sum assured

Rs. 25 lakhs

Maximum sum assured

No limit

Premium payment mode

Yearly, half-yearly, quarterly, or monthly

Premium paying term

Regular, limited, or single

Aviva i-Life:

The term insurance plan known as Aviva i-Life provides your family with complete financial security in the event of your passing. The inexpensive plan serves as an extra safety net when something awful happens to your loved ones. As a protection plan, Aviva i-Life does not provide maturity benefits. For more on Aviva i-Life features see the table below.

Minimum age

18 years

Maximum age

55 years

Maturity age

70 years

Minimum policy term

10 years

Maximum policy term

35 years

Premium payment frequency

Yearly and half-yearly

Premium payment term

Equals the policy term

Riders

None

Tax

Tax benefits under Section 80C will be applicable

Future Generali Care Plus:

Emotional losses are irrevocable, although we can guarantee the lives of our beloved ones and provide them with a smooth living even in our absence. Care Plus is a straightforward life insurance policy that provides high life coverage at an easily reasonable price, ensuring total financial security for your family even in the event of your death. There are two variations of Care Plus: Classical Option and Premier Option.

Features of Future Generali Care Plus (Classic Option):

Minimum age

18 years

Maximum age

60 years

Minimum sum assured

Rs. 10,00,000

Maximum sum assured

Rs. 24,99,999

Minimum policy term

5 years

Maximum policy term

30 years

Maximum coverage age

65 years

Minimum premium

Rs. 2,500 per annum

Premium modes

Yearly, half-yearly, quarterly, and monthly

Features of Future Generali Care Plus (Premier Option):

Minimum age

18 years

Maximum age

60 years

Minimum sum assured

Rs. 25,00,000

Maximum sum assured

No limit

Minimum policy term

5 years

Maximum policy term

30 years

Maximum coverage age

65 years

Minimum premium

Rs. 5,000 per annum

Premium modes

Yearly, half-yearly, quarterly, and monthly

Birla Sun Life BSLI Protect@Ease Plan:

The BSLI Protect@Ease Plan is a term insurance policy that promises your family complete financial security in the case of your passing. The plan has been customised to satisfy every need of a family, thus it offers a variety of coverage alternatives. The BSLI Protect@Ease plan honours policyholders who uphold healthy lifestyle practices. The Income Tax Act's tax benefits are applicable.

Minimum age

18 years

Maximum age

65 years

Plan options

- Level Term Insurance

- Increasing Term Insurance

Minimum policy term

5 years

Maximum policy term

40 years

Premium paying term

- Single payment

- Limited Payment

- Regular Payment

Premium payment mode

Yearly or monthly

Minimum Sum Assured

Rs. 30,00,000

Maximum Sum Assured

No limit 

Riders available

- BSLI Accidental Death & Disability Rider

- BSLI Hospital Care Rider

LIC's Jeevan Pragati Plan:

A blend of life insurance and savings, Jeevan Pragati is a non-linked life insurance plan provided by LIC. Every five years during the term, the plan is eligible for an automatic increase in risk coverage. Under LIC's Jeevan Pragati Plan, policyholders may also use a borrowing facility.

Minimum age

12 years

Maximum age

45 years

Policy term

12 to 20 years

Minimum basic sum assured

Rs. 1,50,000

Maximum basic sum assured

No limit

Maximum age at maturity

65 years

Premium payment modes

Yearly, half-yearly, quarterly, and monthly

Max Life Online Term Plan Plus Basic Life Cover:

The Max Life term plan includes a protection option that safeguards your family's future even when you are not there. The plan provides substantial coverage with optional features like benefit riders and premium waivers. It has no maturity advantages and only pays death benefits.

Minimum age

18 years

Maximum age

60 years

Policy term

10 years to 40 years

Minimum sum assured

Rs. 25 lakhs

Maximum sum assured

Rs. 100 Crores

Premium payment term

Equal to policy term

Premium payment mode

Yearly, half-yearly, quarterly, and monthly

Bharti Axa Life Elite Secure:

It is a cost-effective plan that offers the insured's dependents substantial financial help in the event of an unexpected incidence. The plan comes with an option to cover your life until you are 75 years old and offers low premium rates. Both Section 80C and Section 10(10D) tax benefits apply.

Minimum age

18 years

Maximum age

- 75 years for the policy term of 10, 15, 20, and 25 years

- 65 years for a term period of 5 years

Minimum sum assured

Rs. 25,00,000

Premium payment term

Equals policy term

Premium payment modes

Yearly, half-yearly, quarterly, and monthly

PNB MetLife Mera Term Plan:

As its name suggests, the Mera Term Plan is a specially designed life insurance policy that provides your family with complete security while you are away. The distributions are available as an initial lump sum plus regular monthly income, an initial lump sum plus increasing regular monthly income, and an initial lump sum plus regular monthly income until your kid turns 21.

Minimum age

18 years

Maximum age

65 years

Minimum sum assured

Rs. 10,00,000

Age at maturity

75 years

Policy term

10 years to 40 years

Premium payment term

Equals the policy term

Importance of Life Insurance Plans

Life insurance might be crucial in today's life because our lives are uncertain and dangerous. The entire family is impacted when a horrible occurrence occurs to one of the members. The scenario gets considerably worse if that individual is your only source of money. Due to the fact that it supports the assured family financially in the event of the insured's passing, life insurance is crucial. Family members can protect their lives with the use of life insurance without forgoing their essential necessities and requirements.

Benefits of Life Insurance Plans

Many people are unaware of the advantages of life insurance policies. Along with life insurance, it provides policyholders with a number of other advantages. Some of the advantages that a policyholder can obtain by purchasing a life insurance plan in India are listed below.

  • Financial Security: It guarantees your family's long-term financial security. Plans for life insurance provide a lump sum to your loved ones in the case of your untimely death or disability.
  • Loan option: The possibility to get a cheaper loan utilising the investment element of your life insurance policy is one of the most important benefits of life insurance plans. A cash value builds up over time in guaranteed savings plans, money-back plans, and whole life insurance policies. This monetary worth can be used as collateral for a loan with low interest.
  • Retirement Planning: Your life insurance plan offers you financial assistance even after you have reached independent retirement.
  • Life Stage Planning: A life insurance policy can help you prepare for a variety of life events, including marriage, home ownership, having children, retiring, etc. For instance, term insurance offers protection, child plans fund a child's marriage and education, ULIP plans help grow money, and pension plans guarantee income after retirement.
  • Tax Benefits: In accordance with the provisions of the Income Tax Act of 1961, you are eligible for a tax deduction of up to INR 1.5 lakh per year for life insurance premiums paid. The nominee's life insurance proceeds are also exempt from taxes under Section 10. (10D).

How to Choose the Best Life Insurance Plan in India?

Pocket-Friendly Term Plan: The policyholder's age and health status determine a low-cost term plan. The premium charged would automatically be low for nonsmokers or customers living healthy lifestyles. Therefore, purchasing a term plan early in life is recommended because you can get more coverage for a very low payment.

Buy An Online Plan: Additionally, it is advised to always buy the term plan online rather than through any agency. Online plans are more advantageous than offline ones in that they offer better deals and discounts and have cheaper premium prices.

Inbuilt Policy Benefits: Please review all of the advantages, including the living benefits built into the plan, before buying a term insurance policy. For instance, most insurance policies occasionally come with a free or inexpensive rider for accidental or terminal illness. Checking such information on these benefits and how they will be paid to the nominee or policyholder in the time of need is therefore always beneficial.

Choose Your Policy Term Wisely: Always be sure to enter the policy tenure and amount assured coverage according to your future demands and expectations when purchasing a term plan. If the 10, 20, or 30-year term of your policy expires and you choose to extend it up to a specific age, the cost of doing so could be high because you will be renewing your policy at an older age. It is advisable to keep the policy until you retire in order to avoid paying exorbitant renewal fees.

Claim Settlement Ratio (CSR): The CSR of the insurer, which shows the number of claims settled by the insurer versus the number of actual claims filed by the policyholder or their nominees, should be taken into account when selecting the appropriate term plan. The ideal claim settlement ratio typically has a CSR of more than 80%.

Buying Process of Life Insurance Plans in India

You can purchase your life insurance coverage from RenewBuy because it offers a secure and reputable platform. You can contrast different life insurance plans to get the best one for your needs. The steps to choosing the best life insurance plan are listed below:

  • Check out the official webpage.
  • Click on the "Life" section as you scroll down.
  • Include all necessary details, like DOB, gender, and so forth.
  • On the next page, you can view the life insurance policies offered by different insurers in India.
  • Select one of these, then carry out the payment.
  • You will receive the policy paper at your registered email address once the payment has been completed.

Documents Required to Buy Best Life Insurance Plans in India

The following items must be submitted in order to purchase the top life insurance policies available in India:

  • Voter ID, Driving License, PAN Card, Passport, or Aadhar Card as ID proof
  • 10th or 12th mark sheet, Driving License, Passport, Birth Certificate, Voter ID, etc. as the age proof
  • Telephone Bill, Ration Card, Electricity Bill, Driving License, and Passport as an address proof
  • Form 16, ITR (2-3 years), salary slips for the last 3 to 6 months, etc. as an income proof

Life Insurance Claim Process

The two life insurance claim process categories are the maturity claim procedure and the death claim process. Let's go into further detail about both processes.

Death Claim Process

  • The nominee must inform the life insurance company of all pertinent information, including the deceased's cause of death, date, and location.
  • Send in all necessary paperwork, including the claim form and death certificate.
  • Send the medical examiner's, hospital's, and post-mortem reports.
  • Within 30 days of submitting the necessary paperwork, the insurance company will settle the claim once its investigation is complete.

Maturity Claim Process

The insured is qualified to receive maturity benefits if the policyholder survives the policy period. The procedures for submitting a maturity claim are listed below:

  • The insurance company will send a discharge voucher to the policyholder.
  • The original policy bond and the voucher must be signed by the insured and returned to the insurance provider.
  • The insurance company will pay the claim, and the assignee will receive the claim amount.

Frequently Asked Questions

1. How do I choose the best insurance plan?

You should take the following elements into account while selecting the appropriate insurance plan:

  • Analyze your requirements first.
  • Examine the terms, conditions, and policy features in detail.
  • Look for any riders that are included in the policy.
  • Ask the insurer about their ratio of Claim Settlement.

2. What are the top benefits of buying a life insurance plan?

The main advantages of purchasing a life insurance policy are:

  • High ensured amount for a low premium.
  • Simple and simple to comprehend.
  • There are several ways to pay the death benefit amount.
  • additional benefits for riders.
  • Income Tax advantages.
  • coverage for critical sickness and unintentional death benefits.
  • Premium option is back.

Conclusion

We advise you to thoroughly examine all insurance products and their benefits from the pamphlets accessible on their website before moving further with your search for the best life insurance policy in India. Before investing, you can also seek the counsel of insurance professionals or visit the website to clear up any questions you may have because this one choice could change your family's future in the event you pass away.

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