Term Insurance: Which Plan Should I Buy in India?

Miracles are rare to happen!

If you are not the lucky one and know that life throws trouble to you, then preparing a safety net should be the prime motive in life. Well, not everyone knows how they should move ahead in preparing the safety net. This is why insurance got popular. Life Insurance policies are the major attraction of individuals when people look for security. Among various life insurance types, term insurance policy tops the preference chart.

Ever since the acceptance of term plans has increased, people have chosen this as the medium to save money for financial crises in life. The penetration of term insurance in India is 30%, with a minor increase in policy buying during the pandemic. No matter how much the buying situation and the market share improve, most people are perplexed with the thought of which term insurance I should buy.

Let us look at the best term plans to buy in India, but before that, you must know a lot about a term insurance policy.

What is a Term Insurance Policy?

Term Insurance Policy is one of the most popular life insurance in the market. The term plan is the traditional insurance cover that provides a protection plan to the policyholder’s family. The policy pays the sum assured to the family only after the policyholder’s death.

If you are the family’s sole earning member, buying a term plan is as essential as filling your electricity bills. Imagine your child’s future crippling due to the lack of money and no one to support financially. Term Plan comes to your family’s rescue when they need financial assistance the most.

If a term plan is of much use to you, the next thing you must know is the types of term insurance plan you should buy in India.

Which Term Insurance Plan Should I Buy in India?

You must buy the term insurance plan that provides you with these features to solve the financial requirements:

  • Affordable: The term plans are often reasonable. Make sure you choose the sum assured that meets the family’s requirements. Against the sum assured you choose, your pocket should have the capacity to absorb the premium. Do not push other expenses to buy a term plan.
  • Online Availability: See whether the term plan you want to buy in India is available online or not. If available online, you can easily compare the different policies, read the terms and conditions, ask the industry experts for their advice, and check the premium. Online makes the process paperless and hassle-free.
  • Check the payout option: The payout options under the term plan indicates how the family can receive the death benefit under the term plan. The family can receive the use either a lump sum or regular intervals. You need to check either of these options at the beginning of the policy.
  • The plan that offers more discount: If you check the availability of the term plan online, you must know that the percentage share of agents is not present. It reduces the premium. Check the companies that offer online discounts for you to save money.
  • Premium Paying Term: Choose a term plan that offers you complete flexibility to pay the premium. When you get the convenience of paying the premium quarterly, annually, semi-annually, or monthly, it also suits your pocket and gives peace of mind.

Some of the companies from which you can buy the Term Plan include:

Regular Term Plans:

Best Term Insurance Plan Policy Term Entry Age Cover Amount
Aditya Birla Sun Life Insurance DigiShield Plan 60 years 18 years Option 1 to 10 except 8 No limits starting from Rs.30 lacs.

Option 8, minimum Rs.1 lacs and maximum Rs.20 lacs.

Tata AIA Maha Suraksha Supreme 10-40 years 18-70 years Rs.50 lakhs to Rs.2 crores.
SBI Smart Shield 18-60 years 18-60 years Rs.25 lakhs
HDFC Life Click 2Protect 3D Plus 18-65 years 18-65 years Rs.1 crore
Exide Life Smart Term Plan 10-30 years 18-65 years Rs.5 lakhs to Rs.10 lakhs

What happens after buying a Term Insurance Plan in India?

After buying a Term Insurance Plan in India, you can be benefitted in these manners:

  • Low-cost premium but high security: A Term Insurance Plan is available at a low cost, but the limit of financial protection you receive is high. Buying the policy at an early age helps you save more for yourself at a low price because the premium is less at a young age.
  • Tax Benefit: The premium paid towards the term plan helps you save tax deductions under section 80 C. Apart from this, the maturity benefit taken by the nominee is also eligible for income tax exemption under section 10(10D) of the Income Tax Act, 1961.
  • Financial Cushioning for the family: After buying a term plan, you create a financial cushion for the family, enabling them to manage their expenses in your absence.
  • Facility to expand cover: The term insurance plan can be developed to avail more comprehensive coverage with the rider option. These riders come at an additional cost. Some of the riders that you can pick from include Critical Illness, Accidental Death Benefit, Waiver of Premium, Daily Hospital Cash, Personal Accident Cover, Permanent Disability Cover.

Term insurance is an asset to the family you create after paying the premium for the entire policy term. Depending on your needs and financial requirements, you can purchase any type of term insurance. Let us quickly see the kinds of term insurance.

Types of Term Insurance.

 These are the types of term insurance:

  1. Standard Term Insurance Plan.
  2. Term Return of Premium.
  3. Increasing Term Insurance Plan.
  4. Decreasing Term Insurance Plan.
  5. Life Stage Event Term Insurance Plan.
  6. Convertible Term Insurance Plan.
  7. Joint Life Term Insurance Plan.
  8. Group Term Insurance Plan.

You must read about all these types of term insurance or ask an expert about the conditions.


Depending on your requirement, you can decide the adequate sum assured that you must choose. Term Insurance is the purest form of insurance that arranges funds for your family in case of the unfortunate death of the insured. For more details about the term insurance, you must visit here.

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