🛡️ Best Term Insurance Plans in India (2025 Guide)
In today’s uncertain times, term insurance is one of the most important financial tools for securing your family's future. It offers high coverage at low premiums, ensuring that your loved ones are financially protected if something unexpected happens.
But with so many options in India, how do you choose the right term plan?
We’ve researched and shortlisted the Top 7 Best Term Insurance Plans in India for 2025 based on claim settlement ratio, features, affordability, and flexibility.
✅ What is Term Insurance?
Term insurance is a pure life insurance policy that provides financial protection to your nominee in case of your untimely death during the policy term. If the policyholder survives the term, there is no maturity benefit, but premiums are much lower than other life insurance types.
📊 Key Factors to Consider:
Before we jump into the list, here are a few things to check:
| Criteria | Description |
|---|---|
| ✅ Claim Settlement Ratio | Higher = Better trust |
| 🏦 Solvency Ratio | Indicates the insurer’s ability to pay claims |
| 🛡️ Maximum Coverage | Go for minimum 10–15x of annual income |
| 💰 Premium Amount | Choose affordable yearly/monthly premiums |
| 🧾 Riders | Look for add-ons like critical illness or waiver of premium |
🏆 Top 7 Best Term Insurance Plans in India (2025)
1. LIC Tech Term Plan
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Claim Settlement Ratio: 98.52% (FY 2022-23)
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Minimum Sum Assured: ₹50 lakhs
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Policy Term: 10–40 years
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Premium Example: ~₹12,000/year for ₹1 Cr cover (30 yrs old)
Why Choose:
LIC is India’s most trusted brand, and this is its pure online term plan with flexible options.
2. HDFC Life Click 2 Protect Super
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Claim Settlement Ratio: 99.39%
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Minimum Sum Assured: ₹25 lakhs
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Policy Term: 5–85 years of age
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Premium Example: ~₹10,200/year for ₹1 Cr (non-smoker, 30 yrs)
Why Choose:
Comes with advanced options like Life + Critical Illness, Accidental Death Benefit & Income Payouts.
3. Max Life Smart Secure Plus Plan
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Claim Settlement Ratio: 99.51%
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Minimum Sum Assured: ₹50 lakhs
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Policy Term: Up to 85 years
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Premium Example: ~₹9,800/year for ₹1 Cr (30 yrs)
Why Choose:
Affordable + includes premium return option, death benefit choices, and disability riders.
4. Tata AIA Sampoorna Raksha Supreme
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Claim Settlement Ratio: 99.01%
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Minimum Sum Assured: ₹50 lakhs
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Policy Term: 10–100 years
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Premium Example: ₹9,600/year for ₹1 Cr (30 yrs)
Why Choose:
Covers up to 100 years (whole life), has optional riders, and good claim payout history.
5. ICICI Pru iProtect Smart
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Claim Settlement Ratio: 98.6%
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Minimum Sum Assured: ₹25 lakhs
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Policy Term: Up to age 99
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Premium Example: ₹10,500/year for ₹1 Cr (30 yrs)
Why Choose:
Flexible claim payout (lump sum/monthly), and built-in terminal illness benefit.
6. Aditya Birla Sun Life DigiShield Plan
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Claim Settlement Ratio: 98.12%
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Minimum Sum Assured: ₹30 lakhs
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Policy Term: Up to 85 years
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Premium Example: ₹9,300/year for ₹1 Cr (30 yrs)
Why Choose:
Great for salaried users, includes multiple payout options and increasing cover options.
7. Bajaj Allianz Smart Protect Goal
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Claim Settlement Ratio: 98.48%
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Minimum Sum Assured: ₹50 lakhs
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Policy Term: Up to 99 years
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Premium Example: ₹10,200/year for ₹1 Cr (30 yrs)
Why Choose:
Premium waiver on critical illness + child education benefits available.
🧾 Term Insurance Riders (Optional Add-ons)
Make your term plan more powerful with these common riders:
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✅ Accidental Death Benefit Rider
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✅ Critical Illness Cover
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✅ Waiver of Premium on Disability
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✅ Terminal Illness Benefit
💬 Which is the Best Term Insurance for You?
| If you want... | Go for... |
|---|---|
| Trust and legacy | LIC Tech Term |
| All-round features | HDFC Click 2 Protect |
| Affordable with riders | Max Life or Aditya Birla |
| Long-term cover till 100 yrs | Tata AIA or ICICI Pru |
| Return of Premium option | Max Life or Bajaj Allianz |
🔐 Documents Needed to Buy Term Insurance
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✅ PAN card / Aadhaar card
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✅ Income proof (ITR / salary slip)
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✅ Age proof
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✅ Medical reports (in some cases)
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✅ Passport-size photo
📌 Final Thoughts
Term insurance is the most affordable way to protect your family’s financial future. Don’t delay — the earlier you buy, the cheaper the premiums.
Choose a trusted insurer, compare benefits, and add essential riders to maximize your cover.