Life is full of uncertainties, and no one knows what tomorrow holds. While we can’t control the future, we can certainly prepare for it. Term insurance is one of the most reliable ways to ensure that your loved ones remain financially secure even in your absence. It offers high coverage at affordable premiums, making it a must-have financial tool for every earning individual.
With so many options available in the market, selecting the best term insurance plan can be a daunting task. To make things easier, here’s a carefully curated list of the top 10 term insurance plans in India for 2025, based on features, affordability, and claim settlement ratios.
What is Term Insurance and Why It’s Important
Term insurance is a type of life insurance policy that provides financial protection to your family in case of the policyholder’s untimely demise during the policy term. Unlike traditional life insurance policies, term plans are pure protection plans, meaning they don’t provide any maturity benefit unless you choose a return of premium option.
Why you should consider term insurance:
Offers high sum assured at a low premium
Acts as a financial safety net for your family
Provides tax benefits under Section 80C and 10(10D) of the Income Tax Act
Option to add riders like critical illness, accidental death, or disability cover
Ensures peace of mind knowing your loved ones will be financially stable
Top 10 Term Insurance Plans for 2025
Here’s a list of the most trusted and feature-packed term insurance plans available in India:
- HDFC Life Click 2 Protect Super
Why It Stands Out:
HDFC Life is known for its reliable services and high claim settlement ratio. This plan offers flexible coverage and multiple benefit options.
Highlights:
Coverage for terminal illness and accidental death
Option to increase coverage at life milestones such as marriage or childbirth
Simple and hassle-free online process
Claim Settlement Ratio (CSR): 99.6%
Starting Premium: Around ₹4,000 annually
- ICICI Prudential iProtect Smart
Why It Stands Out:
This plan is perfect for individuals seeking comprehensive coverage with added protection for critical illnesses.
Highlights:
Covers terminal illness and permanent disability
Critical illness rider covering 30+ illnesses
Flexible premium payment options (monthly, half-yearly, yearly)
CSR: 98.7%
Starting Premium: Around ₹3,500 annually
- Max Life Smart Secure Plus Plan
Why It Stands Out:
Max Life is known for affordable plans and customer-friendly features.
Highlights:
Multiple payout options for death benefits
Option to get a return of premium on maturity
Affordable premium rates for high coverage
CSR: 99.65%
Starting Premium: Around ₹4,200 annually
- SBI Life eShield Next
Why It Stands Out:
Backed by the trusted name of SBI, this plan is ideal for people looking for strong financial security and a reliable insurer.
Highlights:
Three plan variants to choose from: Level Cover, Increasing Cover, and Level Cover with Future Proofing
Competitive online premium discounts
Long-term protection up to age 85
CSR: 98.2%
Starting Premium: Around ₹5,000 annually
- Tata AIA Sampoorna Raksha Supreme
Why It Stands Out:
Tata AIA is well-known for offering flexible features and lifetime coverage.
Highlights:
Coverage up to 100 years of age
Riders for accidental death and disability
Discounts for women and non-smokers
CSR: 99.01%
Starting Premium: Around ₹4,800 annually
- Bajaj Allianz Life Smart Protect Goal
Why It Stands Out:
This plan is designed for families who want comprehensive financial security, including health benefits.
Highlights:
Option for return of premium on maturity
Coverage for up to 55 critical illnesses
Additional child education benefit option
CSR: 99.0%
Starting Premium: Around ₹4,500 annually
- Kotak e-Term Plan
Why It Stands Out:
Kotak’s plan is perfect for individuals looking for affordable premiums with customizable payout options.
Highlights:
Three payout options: Lump sum, recurring income, or a combination of both
Optional accidental death benefit rider
Tax benefits on premium payments
CSR: 98.5%
Starting Premium: Around ₹3,800 annually
- Aditya Birla Sun Life DigiShield Plan
Why It Stands Out:
A highly flexible plan with 10 different coverage options to suit diverse customer needs.
Highlights:
Increase coverage at important life events
Return of premium feature available
Terminal illness coverage included
CSR: 98.1%
Starting Premium: Around ₹4,100 annually
- PNB MetLife Mera Term Plan Plus
Why It Stands Out:
This plan allows you to cover your spouse under the same policy, making it a great choice for families.
Highlights:
Life cover available up to age 99
Spouse coverage under one plan
Option to provide monthly income for dependents
CSR: 99.65%
Starting Premium: Around ₹4,600 annually
- LIC Tech Term Plan
Why It Stands Out:
LIC is one of the most trusted insurers in India, and this online-only term plan is ideal for individuals seeking a simple yet reliable plan.
Highlights:
Multiple payout options for death benefit
Competitive premiums for salaried individuals
Strong customer support network
CSR: 98.5%
Starting Premium: Around ₹5,000 annually
Tips to Choose the Best Term Insurance Plan
Before finalizing a policy, consider these factors to make the best decision:
- Assess Your Coverage Needs:
Ideally, the sum assured should be 10–15 times your annual income. - Compare Premiums:
Look for plans that offer the right balance between affordability and benefits. - Check Claim Settlement Ratio:
A higher CSR indicates a higher likelihood of your family’s claim being settled. - Add Riders for Extra Protection:
Riders like accidental death and critical illness provide comprehensive coverage. - Understand Policy Terms:
Read the inclusions and exclusions carefully to avoid surprises later.
Final Thoughts
Investing in a term insurance plan is one of the most responsible financial decisions you can make. It ensures that your family will remain financially protected even if life takes an unexpected turn. The plans listed above are among the best in India for 2025, offering a balance of affordability, coverage, and trustworthiness.
The sooner you buy term insurance, the lower your premiums will be, so don’t delay securing your loved ones’ future. Start comparing plans today and make a choice that brings peace of mind.
FAQs
- Which term insurance plan is the best in India?
Plans like HDFC Life Click 2 Protect Super and Max Life Smart Secure Plus are popular due to their benefits and high claim settlement ratios. - At what age should I buy term insurance?
The ideal age is 25–35 years, as premiums are lowest when you are young. - Can I get maturity benefits from term insurance?
Standard term plans don’t offer maturity benefits, but some plans have a return of premium feature. - Is a medical check-up mandatory for buying term insurance?
Yes, most insurers require a health check-up to assess your eligibility. - Are term insurance premiums tax-deductible?
Yes, you can claim tax benefits under Section 80C and Section 10(10D). - Can NRIs buy term insurance in India?
Yes, many Indian insurers allow NRIs to purchase term plans. - What happens if I miss a premium payment?
The policy may lapse if premiums are not paid within the grace period. - How do I calculate the ideal sum assured?
Multiply your annual income by 10–15 times to determine the right coverage amount. - Can I change my coverage later?
Yes, many insurers allow increasing coverage at life milestones like marriage or childbirth. - Which is better: term insurance or whole life insurance?
Term insurance is generally more affordable and offers higher coverage, making it a better choice for most families.
