Top 5 Best-Term Insurance Plans in India in 2023-2024

In This Post, We Consider the Top 5 Best Term Insurance Plans in India in 2023-2024

What happens if the Head member of the family suffers a sudden collapse and dies? What happens if the whole family dependent met with an accident and not in this world? While the loss of a family member cannot be replaced with anything, it also impacts the financial status of the family. Such loss can ruin the whole family’s children’s education, the daughter’s marriage, and the survival of the spouse. One of the best ways to secure from such sudden negative surprises in life is to take a Term Insurance Plan. Term Insurance Plans would come with low cost and high sum assured and secure your family in such loss. How to pick up the best term insurance plan? Which are the Best Term Insurance Plans for 2023-2024? What are the Top 5 Best Term Plans for 2023-2024 that have a high claim settlement ratio?

What is a Term Insurance Plan?

If you are aware of the Term insurance plan, skip this section.

Term insurance Plan is a simple insurance plan where if the individual insured dies, their family/nominee would get the sum assured. There is no maturity amount in the term insurance plan. These are insurance plans that have risk coverage only. One would not get any money back on maturity.

As per guidelines from IRDA, after 3 years from the date of the policy, a claim cannot be rejected citing any reason. Hence, the claim settlement ratio is no more a major criterion in deciding the best term insurance plan. However, it still needs to be considered as one of the points while buying a term insurance plan.

How we filtered Top and Best Term Insurance Plans in India for 2023-2024?


There are many parameters that can be considered while picking up the top and best term insurance plan in India. However, I have considered 4 key main parameters while picking the right term insurance plan.

1) Insurance Claim Settlement Ratio (CSR): Though CSR is not the major hard to consider, one has to give importance to it. At the end of 2022, there are 67 insurance companies which are registered in India. However, only 10 companies have declared a claim settlement ratio of more than or equal to 95%. CSR is settled insurance claims over the total insurance claims received by the insurance company. Lower CSR means, the company is rejecting more claims and in the future, your family could be a victim of that. I have filtered companies that have a high claim settlement ratio of 95% to 100%.

2) Insurance Company Reputation: No one can tell you how is Bad or good an insurance company. The higher the duration of the insurance company registration, is better. Hence, we have filtered Insurance companies that have a good operating history of more than 10 years.

3) Additional Features in Term Insurance Plan: What about good insurance companies that do not offer many options? No one would really want to choose for that. I have filtered Term insurance plans which are basic features + additional features that would be helpful for individuals who are planning to take term plans.

4) Plans with Low Premium: While Premium is not the only hard in selecting an insurance plan; we have given preference to term insurance plans which are being offered at low premiums with more features.

One should do a term insurance comparison before taking up a term insurance plan. You can buy term insurance on apps like Phonepay, Google Pay, and Paytm, and online from respective insurance portals too.

Top 5 Best Term Insurance Plans in India in 2023-2024

Here are the Top 5 Best Term Insurance Plans for 2023-2024. We are giving major features of these term insurance plans.

1) LIC e-Term Insurance Plan

  • LIC is a well-known and trusted brand in the insurance segment in India. One of the best term insurance plans that come from LIC is the e-Term Insurance Plan. Here are the features of the LIC Term Insurance Plan.
  • The minimum Entry age is 18 Years and the Maximum entry age is 60 years
  • The maximum maturity age is 75 Years.
  • Policy tenure is between 10 years and 35 years.
  • The minimum Sum Assured is Rs 25 Lakhs. For non-smokers, the minimum sum assured is Rs 50 Lakhs.
  • Maximum Sum Assured – No limit.
  • No Riders available in this plan
  • The claim settlement ratio of FY 2021-22 is 98%.
  • All kinds of death including accidental deaths are covered under this plan except suicide during the first year.
  • One can propose on own name only and cannot take on a spouse’s name who is not working.
  • Premium is approx. Rs 13,700 per annum (Excl Taxes) for a 30-year non-smoker for a 30-year policy for Rs 1 Crore sum assured. Once the premium is computed it would not change during the tenure of the policy.
  • If you plan to work abroad or go on vacation, the LIC Term insurance plan would still provide insurance coverage.
  • LIC e-Term Term Insurance Plan is one of the Top Online term insurance plans in 2021-2022 as it has brand value as well as is trusted by Lakhs of people in India.

2) Bajaj Allianz General Insurance

Below are the major features of this term insurance plan from Bajaj Allianz General Insurance.

  • The minimum Entry age is 18 Years and the Maximum entry age is 60 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 10 years and 40 years.
  • The minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – Rs 100 Crores.
  • Comprehensive Accident Benefit Rider is available in this plan.
  • This plan is available in 3 coverages
    • a) Basic Life Cover
    • b) Basic Life Cover+Monthly cover
    • c) Basic Cover + Increasing Monthly Income
  • The claim settlement ratio of FY 2021-22 is 97.8% which is the highest among all insurance companies.
  • Basic Premium is approx. Rs 7,623 per annum (Excl taxes) for a 30-year non-smoker for a 30-year policy for 1 Crore sum assured.
  • Bajaj Allianz General Insurance Plus is one of the good term insurance plans for 2022 which has a high claim settlement ratio and comes with a low premium.

3) Max Life Term Insurance Plan Plus

Below are the major features of this term insurance plan from Max Life.

  • The minimum Entry age is 18 Years and the Maximum entry age is 60 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 10 years and 40 years.
  • The minimum Sum Assured is Rs 25 Lakhs.
  • Maximum Sum Assured – Rs 100 Crores.
  • Comprehensive Accident Benefit Rider was available in this plan.
  • This plan is available in 3 coverages a) Basic Life Cover b) Basic Life Cover+Monthly cover c) Basic Cover + Increasing Monthly Income
  • The claim settlement ratio of FY 2021-22 is 97.8% which is the highest among all insurance companies.
  • Basic Premium is approx. Rs 4775 per annum (Excl taxes) for a 30-year non-smoker for a 30-year policy for 1 Crore sum assured.
  • Max Life Term Insurance Plan Plus is one of the good term insurance plans for 2018 which has a high claim settlement ratio and comes with a low premium.

4) ICICI Lombard

Here are the key features of ICICI iProtect Smart Term Plan.

  • The minimum Entry age is 18 Years and the Maximum entry age is 60 years
  • The maximum maturity age is 75 Years.
  • Policy tenure is between 5 years and 40 years.
  • Minimum Sum Assured – Based on minimum premium of Rs 3,600 per annum.
  • Maximum Sum Assured – No limit.
  • The optional rider that it pays if diagnosed with any of the 34 Critical Illnesses.
  • It comes with 4 levels of protection
    • 1) Life 
    • 2) Life Plus
    • 3) Life and Health
    • 4) All in one.
  • Claim settlement ratio of FY 2021-22 is 96.6%
  • Premium is approx. Rs 9470 per annum for a 30-year non-smoker for a 30-year policy for Rs 1 Crore sum assured.
  • I feel the ICICI iProtect Term plan is one of the good online term insurance plans as it comes with several benefits and riders that are useful.

5) HDFC Life Insurance

Below are the major features of HDFC Click 2 Protect Plus Term plan.

  • The minimum Entry age is 18 Years and the Maximum entry age is 65 years
  • Maximum maturity age is 70 Years.
  • Policy tenure is between 5 years and 40 years.
  • The minimum Sum Assured is Rs 10 Lakhs.
  • Maximum Sum Assured – No limit.
  • There are various options like Life Option, 3D Life Option, Extra Life Option, Return of Premium Option, etc. available in this plan.
  • The claim settlement ratio of FY 2021-22 is 97.6%.
  • Basic Premium is approx. Rs 13,000 (Excl taxes) per annum for a 30-year non-smoker for a 30-year policy for Rs 1 Crore sum assured.
  • This Term plan has several riders which makes this a unique term insurance plan for 2021-2022. One can review HDFC Click 2 Protect 3D Plus before considering this insurance plan.

Conclusion: There are several Better term insurance plans in India. My advice to you would be, to consider term plans among the top-5 indicated above. Do term insurance comparisons to opt from available ones. You can also split your insurance coverage into 2 plans e.g. Instead of a 1 Crore Term plan from a single insurance company, you can take Rs 50 Lakhs each from two insurance companies to avoid any rejections in the future of say 10 or 20 years. Term Insurance plans are best which come with low premiums and high-risk coverage. This should be your first step in financial planning.

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