Best Online Term Plans to Buy in 2020

July 21, 2021
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Term Insurance Plan is the purest form of life insurance and it provides the life cover during the policy term. Buying a term plan ensures financial protection for your family. You need to pay the specified premiums on time and in the event of your death during the term of the policy, the nominee will receive 100% of Sum Assured as a lump sum amount which will serve them as a financial back up without any worries. Some of the best online term plans also offer a percentage of sum assured as monthly payouts that help your family meet their recurring expenses.

Choosing the Right Term Insurance Plan

There are some key points that help you pick the right term insurance plan, so your family can easily fulfill their financial needs when you are not around.

Invest Early

The cost of the term insurance policy increases with age. Buying a term plan at a young age helps you save a lot on the premium amount through the entire policy term that ensures term insurance buying at an affordable rate. It is thus wise to buy term insurance at the earliest and secure the financial future of your family.

Pick Your Life Cover

When it comes to buying a term life insurance plan, it’s quite essential to assess your family’s financial needs accurately. The sum assured under a term plan must be chosen, so it fulfills all of your family’s financial goals such as children’s education, their marriage, buying/building a dream house or any debt/liability that you need to re-pay. Choosing an appropriate sum assured amount will ensure that the financial liabilities will not become a burden for your family.

Choose Riders

Riders add coverage under your policy and you need to pay an additional premium for extended coverage you want to opt-in. As choosing riders increase the cost of the term policy, it’s a prudent move to choose only the required riders.

Assess Inflation Factor

Before choosing the sum assured in a term policy, it is advisable to check the inflation rate and ensure that it does not affect the financial needs of the family when required. You should pick a life cover amount (sum assured) after properly assessing the inflation rate. You must ensure that the financial goals of your family are not compromised at all.

Compare Plans Online

Gone are the days, when people used to rely on salespeople and buyers have limited information to make their buying decision. Online insurance buying has made easier for customers seeking insurance. Online insurance web aggregator portals offer you the option to compare several policies, its benefits, and exclusions applicable. It helps you pick the right term policy with adequate coverage available.

Read the Policy Terms

You might have chosen to buy the right term plan to fulfill your family’s needs, but don’t ever forget to read the conditions specified in the policy. You are advised to go through the policy terms and conditions, so you know all about the plan benefits and coverage, add-on covers, and its inclusions & exclusions. In case, you are not satisfied with the policy you bought, you have the option to return the policy during the free look period.

Top Term Insurance Plans

We have prepared a list of best online term insurance plan. So, why not get a term life cover this year and secure your family financially!

1. Max Life Online Term Plan Plus

Max Life Online Term Plan (OTP) Plus is a pure protection plan that offers secure financial protection to your family, in the event of your death, disease, and disability.

Key Benefits & Features

  • Death Cover: In the event of your demise during the term of the policy, the death benefit is payable as per the option chosen. You may opt for Lumpsum benefit, Lumpsum Benefit + Level Monthly Income and/or Lumpsum Benefit + Increasing Monthly Income.
  • Life Stage Event Benefit: You have the option to increase the sum assured (SA) basis of life stage events like on marriage, childbirth, and home loan. The maximum SA is Rs 50 lac for marriage/house loan and Rs 25 lac for childbirth.
  • CI Benefit: The Inbuilt benefit is payable on the diagnosis of one of the specified 40 critical illnesses.
  • Enhanced protection: Enjoy additional coverage by opting Accident Benefit Rider and Waiver of Premium (WOP) Plus Rider.
  • Tax Benefits: You can get tax benefits u/s 80C of the Income Tax Act for the premiums paid. For paying premiums for the Critical Illness benefit, you can avail tax benefits u/s 80D of the Income Tax Act. The death benefit under the policy is also entitled to receive the tax benefit u/s 10 (10D) of the Income Tax Act, 1961.

2. HDFC Life Click 2 Protect 3D Plus Term Plan

HDFC Life Click 2 Protect 3D Plus Term Plan is a protection plan that offers comprehensive protection at an affordable price. This term plan ensures the safety of your family against financial distress that might occur due to life’s uncertainties such as death, disease, disability & accident.

Key Benefits & Features

  • Death Benefit: Various benefit options available. You can opt from life option, 3D Life Option, Extra Life, Income Option, Extra Life Income, Income Replacement, Return of Premium Option, Life-Long Protection & 3D Life Long Protection Option. You can customize the plan benefits with a choice of varied plan options.
  • Life Stage Protection: You have the option to increase the Sum Assured amount for specific events in the life of the Life Assured. Get enhanced coverage up to Rs 25 lac each on Birth of 1st child/2nd You can also get increased coverage up to a maximum of Rs. 50 lac on 1st marriage.
  • Top-up Option: You may opt for a systematic increase of your cover from 1st policy anniversary onwards.
  • Tax Benefits: You can get tax benefits u/s 80C for the premiums paid towards the policy. The policy proceeds are entitled to tax benefits u/s 10 (10D) of the Income Tax Act.
  • Avail special premium rates for non-tobacco users and female lives.

3. ICICI Pru iProtect Smart

ICICI Pru iProtect Smart is a term insurance plan, which offers robust financial protection to your family. This term plan helps your family get a comfortable life when you are not around. It offers 360° protection for your life.

Key Benefits & Features

  • Death Benefit: Various benefit options available. You can opt from Lumpsum Benefit, Income, Increasing Income, Lumpsum + Income Benefit. You have the option to customize the plan benefits by choosing any one of the payout options.
  • Life Stage Protection: You have the option to increase the life cover amount for specific events in the life of the Life Assured. Get enhanced coverage up to Rs 25 lac each on Birth of 1st child/2nd You can also get increased coverage up to a maximum of Rs. 50 lac on marriage.
  • Riders Available: There are various riders/add-on covers available such as Accidental Death Benefit, Critical Illness (CI) Benefit, and Waiver of Premium Benefit on Permanent Disability.
  • Tax Benefits: You can get tax benefits u/s 80C for the premiums paid towards the policy. The policy proceeds are entitled to tax benefits u/s 10 (10D) of the Income Tax Act.
  • Premium discounts for non-tobacco users and women lives.

4. Bajaj Allianz Life eTouch Online Term

Bajaj Allianz Life eTouch Online Term Plan is the best solution to realize your family’s dreams, in case of an unfortunate event. It is a pure term insurance plan that offers life cover, which ensures financial protection for your family, in case of an eventuality. This term plan takes care of your family’s long term and recurring expenses. Along with life cover, this plan also offers cover for accidental death, accidental total permanent disability & critical illness cover as per the plan variant opted.

Key Benefits & Features

  • Death Benefit: In the event of unfortunate demise during the policy term, the death sum assured is payable to the nominee depending on the plan variant opted. The 4 plan variants are Shield, Shield Plus, Shield Super and Shield Supreme.
  • Waiver of Premium (WOP) Cover: Inbuilt WOP benefit on Accidental total and permanent disability.
  • Multiple Payout Options: You may opt from lump sum option, lump sum and level/increasing monthly income payout options.
  • High Sum Assured Rebate (HSAR): Enjoy HSAR for every additional Rs 1 lac increase in sum assured above the base sum assured.
  • Tax Benefits: You can get tax benefits u/s 80C for the premium paid under the policy. The policy proceeds are entitled to tax benefits u/s 10 (10D) of the Income Tax Act, 1961.

Note: The term plans specified above are not the exhaustive ones. The plan benefits & coverage may vary and it depends on the plan you have opted for.

Final Words

Opting the term life insurance plan ensures the financial security of your family and it comes to rescue against life’s uncertainties. While choosing a term plan, you should assess your family needs properly and pick a term plan that assures you to fulfill your needs. You are also advised to assess all the plan benefits, coverage available, additional cover and check claim settlement ratio as well and then decide accordingly.

Looking to choose a right term plan? You just need to fill a form and we will get back to you.

Go through the Top 10 term insurance plans in India 2020 and choose a right term plan to suit your insurance needs.

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