What is a Life Insurance Policy?
A life insurance policy is a contract between a policyholder and an insurance company, where the insurer commits to paying a predetermined amount of money to the policyholder’s beneficiaries upon the policyholder’s death or after a specified period. In exchange, the policyholder agrees to pay regular premiums to the insurer over a set period, known as the Premium Payment Term. This arrangement ensures financial security for the policyholder’s loved ones by providing a death benefit in the event of the policyholder’s unexpected demise. Additionally, certain life insurance plans offer maturity benefits, which are paid to the policyholder if they survive the policy term. These plans are flexible financial instruments designed to meet individual needs, offering a range of features and benefits.
Top 10 Life Insurance Policies in India
| S.No. | Plan Name | Plan Type |
| 1. | SBI Life eShield | Term |
| 2. | Aditya Birla Sun Life Insurance | Term |
| 3. | HDFC Life Click 2 Protect Plus | Term |
| 4. | Max Life Online Term Plan Plus Basic Life Cover | Term |
| 5. | LIC’s Jeevan Pragati Plan | Endowment |
| 6. | Future Generali Care Plus | Rural |
| 7. | Birla Sun Life BSLI Protect@Ease Plan | Term |
| 8. | PNB MetLife Mera Term Plan | Term |
| 9. | Bharti Axa Life Elite Secure | Term |
| .10 | Aviva i-Life | Term |
1. SBI Life eShield Next
SBI Life eShield is one of the top life insurance plans available in India, offering substantial coverage at an affordable premium. It is a non-linked, non-participating pure-term insurance plan that can be conveniently purchased online via the official company website. Designed to provide comprehensive protection, this plan ensures financial security for the policyholder’s family in the event of unforeseen circumstances, while also offering tax benefits to the insured.
Feature
| Age at Entry | Maximum: 65 years (Level Cover and Level Cover with Accidental Death Benefit) Maximum: 60 years (Increasing Cover and Increasing Cover with Accidental Death Benefit) Minimum: 18 years |
| Sum Assured | Maximum: No limit Minimum: Rs. 20,00,000 |
| Premium Amount | Maximum: No limit Minimum: Rs. 3,500 |
| Premium Payment Mode | Yearly |
Benefits
- Death Benefit: Effective Sum Assured paid to nominee; increases by 10% every fifth year for Increasing Cover.
- Tax Benefits: Deduction up to Rs. 1,50,000 under Section 80C; tax-free maturity proceeds under Section 10(10)D.
- Accidental Death Benefit: Extra coverage up to Rs. 50 lakhs for accidental death.
- Terminal Illness Benefit: Sum Assured payable up to Rs. 2,00,00,000 upon terminal illness diagnosis.
- Grace Period: 30 days for late premium payments.
2. Aditya Birla Sun Life Insurance
Aditya Birla Sun Life Insurance, formed by the Aditya Birla Group and Sun Life Financial Inc., offers a diverse range of plans including protection, wealth management, retirement, and health coverage. Serving over two million policyholders, the company boasts a strong distribution network with 560 branches, 85,000+ advisors, and 140+ corporate partnerships across 500 cities.
Features
| Age at Entry | Maximum: 65 years Minimum: 18 years |
| Sum Assured | Maximum: No limit
Minimum: Rs. 30,00,000 |
| Premium | Maximum: No limit Minimum: Rs. 3,024 |
| Premium Payment Mode | Monthly, Quarterly, Half-yearly, Annually |
Benefits
- Convenient Payment:: Offers an efficient online payment gateway for instant premium payments.
- Tax Benefits: Provides savings on income tax under Section 80C (premiums) and Section 10(10D) (claims) of the Income Tax Act, 1961.
- Claim Assurance: Ensures No claims denied after 3 years of continuous policy coverage.
- Riders: Offers additional benefits such as Accidental Death & Disability, Critical Illness, Hospital Care, Surgical Care, and Waiver of Premium riders, available at an extra cost.
- Coverage Options: Under the Protector Plus plan, customers can choose between level sum assured and increasing sum assured, which increases by 5% or 10% annually.
3. HDFC Life Click 2 Protect Plus
HDFC Life Click 2 Protect Plus is a non-linked, non-participating term insurance plan offering comprehensive coverage at affordable premiums. It provides various cover options to meet your needs and ensures financial security for your family, including monthly income support under the Income & Income Plus options, making it an excellent choice for protection against life’s uncertainties.
Features
| Age at Entry | Minimum: 18 years Maximum: 65 years |
| Sum Assured | Minimum: Rs. 25 lakhs Maximum: No limit |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly |
Benefits
- Death Benefit: For the HDFC Life Click2Protect Plus Term Plan, the death benefit is 125% of the single premium or the sum assured for single premium policies. For regular or limited premiums, it is the higher of 10 times the annualized premium, 105% of premiums paid, or the sum assured.
- Life Stage Protection: Available with additional premium; increases sum assured and may reduce future premiums.
- Tax Benefits: Tax benefits under Section 80C for premiums paid and Section 10(10D) for claims.
- Surrender Benefit: Available only for single premium policies; calculated as 70% of single premium × (unexpired coverage term/original term). Regular and limited premium policies do not have a surrender value.
4. Max Life Online Term Plan Plus Basic Life Cover
Max Life Insurance Company Limited, a joint venture between Max Financial Services Limited and Axis Bank Limited, offers comprehensive protection and long-term savings solutions. Their Max Life Online Term Plan Plus Basic Life Cover, available through the company’s website, provides substantial coverage at affordable premiums.
Features
| Age at Entry | Minimum: 18 years Maximum: 60 years |
| Sum Assured | Minimum: Rs. 25 lakhs Maximum: 100crs |
| Premium Payment Mode | Yearly, half-yearly, quarterly, and monthly |
Benefits
- Comprehensive Death Benefit Variants: Seven death benefit options: Life Cover, Income Protector, Inflation + Income Protector, Life Cover + Income, Life Cover + Increasing Income, Increasing Cover, and Reducing Cover.
- Tax Benefits: Tax savings on premiums under Sections 80C, 80D, and 10(10D) of the Income Tax Act, 1961.
- Life Stage Add-on Sum Assured Option: Increase sum assured based on life events like marriage, childbirth, or a house loan (must be selected at policy inception).
- Health Coverage through Riders/Add-ons: The Max Life Smart Term Plan offers Accelerated Critical Illness (ACI) coverage and the Max Life Waiver of Premium Plus Rider, which waives future premiums for critical illness, dismemberment, or policyholder death.
5. LIC’s Jeevan Pragati Plan
Launched on February 3, 2016, the Life Insurance Corporation of India’s (LIC) Jeevan Pragati Policy is a non-linked endowment plan. It offers an increasing death benefit every five years throughout the policy term. Designed for individuals aged 12 to 45 years, this plan provides insurance coverage with policy terms ranging from 12 to 20 years. Jeevan Pragati is the third policy introduced by LIC in 2016, following Jeevan Shikhar and Jeevan Labh, catering to those seeking both insurance and progressive benefits over time.
Features
| Age at Entry | Minimum: 12 years Maximum: 45 years |
| Sum Assured | Minimum: Rs.1,50,000 Maximum: No limit |
| Premium Payment Mode | Yearly, half-yearly, quarterly, and monthly |
Benefits
- Death Benefit: In the event of the policyholder’s death, the nominee receives the sum assured on death plus Final Additional Bonus (FAB) and vested simple reversionary bonuses, provided all premiums are paid.
- Maturity Benefit: If the policyholder survives the policy term and has paid all premiums, they receive a lump sum comprising the basic sum assured, Final Additional Bonus, and simple reversionary bonuses.
- Optional Rider: An Accidental Death and Disability Rider is available. Note that the rider sum assured cannot exceed the basic sum assured. For details, contact the nearest LIC branch.
6. Future Generali Care Plus
Future Generali Care Plus is a term plan from Future Generali Life Insurance, a collaboration between Future Group, Generali Group, and Industrial Investment Trust Limited. This conventional pure-term plan allows policyholders to customize their coverage and savings according to their premium payment capabilit
Features
| Age at Entry | Minimum: 18 years Maximum: 60 years |
| Sum Assured | Minimum: Rs.10,00,000 Maximum: 24,99,999 |
| Premium Payment Mode | Yearly, half-yearly, quarterly, and monthly |
Benefits
- Tax Benefits: Policyholders can avail of tax benefits under the Income Tax Act, enhancing financial efficiency.
- Death Benefit: In the event of the policyholder’s death, the nominee receives a death benefit equal to the sum assured, providing financial support.
- Additional Riders: Enhance coverage with optional riders, including an accidental death rider and an accelerated critical illness rider, for comprehensive protection.
7. Birla Sun Life BSLI Protect@Ease Plan:
The Birla Sun Life BSLI Protect@Ease Plan offers substantial term insurance coverage with the convenience of online purchase. Designed by Aditya Birla Sun Life Insurance, this plan allows you to secure your family’s future at affordable rates while accommodating various coverage options and durations. It provides a user-friendly, hassle-free experience with the flexibility to tailor the policy to your specific needs, making it a top choice among life insurance plans in India.
Features
| Age at Entry | Minimum: 18 years Maximum: 65 years |
| Sum Assured | Minimum: Rs.30,00,000 Maximum: No limit |
| Premium Payment Mode | Yearly or monthly |
Benefits
- Death Benefit: The BSLI Easy Protect Plan pays the highest of 10 times the annual premium, 105% of premiums paid, or the sum assured at death. Benefits can be received as a lump sum or in staggered payments.
- Tax Benefit: Premiums paid are eligible for tax benefits under Section 80C, and claims received are tax-free under Section 10(10D) of the Income Tax Act.
- Total and Permanent Disability Benefit: Offers 50% of the sum assured upon diagnosis of total and permanent disability.
- Riders Available: The BSLI Easy Protect Plan includes riders such as Hospital Care, Waiver of Premium, Accidental Death and Disability, Critical Illness, and Surgical Care. These riders offer extra protection for medical expenses, disability, and critical illnesses.
8. PNB MetLife Mera Term Plan
The PNB MetLife Mera Term Plan is a comprehensive life insurance solution offering financial security and protection for your loved ones at an affordable cost. It provides flexibility to choose coverage against Death, Critical Illness, Accidental Disability, and Terminal Illness. Additional options include spouse coverage and whole life protection, allowing you to customize your plan according to your needs.
Features
| Age Entry | Minimum: 18 years Maximum: 60 years |
| Sum Assured | Minimum: Rs.10,00,000 Maximum: No limit |
| Premium Payment Mode | Yearly & Monthly (Monthly through ECS) |
Benefits
- Flexible Sum Assured Payouts: Choose from four different sum assured payout options to best support your family in your absence.
- Spouse Coverage: Add your spouse to the plan, eliminating the need for a separate policy and increasing the premium by about 50% on average.
- Extended Coverage: The plan provides coverage until the age of 75 years.
- Affordable Premiums: Enjoy some of the lowest premiums available for online term plans.
9. Bharti AXA Life Elite Secure
Bharti AXA Life Elite Secure Plan, offered by Bharti AXA Life Insurance (a partnership between Bharti Enterprises and AXA Group), provides financial stability and support through guaranteed annual payouts. This plan ensures life insurance coverage and a financial safety net for the policyholder’s family in the event of their death or upon maturity.
Features
| Age Entry | Minimum: 18 years Maximum: 75 years for the policy term of 10, 15, 20, and 25 years. |
| Sum Assured | Minimum: Rs.25,00,000 Maximum: No limit |
| Premium Payment Mode | Yearly, half-yearly, quarterly, and monthly |
Benefits
- Life Insurance Benefit: The nominee receives the sum assured in case of the policyholder’s death.
- Hospi Care Rider: Optional rider providing daily hospitalization benefits and a lump sum for surgeries.
- Guaranteed Benefits: Regular payouts during the maturity period, with flexible options for annual, semi-annual, or quarterly payouts.
- Tax Benefits: Eligible for tax benefits on premiums and payouts under the Income Tax Act of 1961, subject to prevailing tax laws.
10. Aviva i-Life
Aviva i-Life is a pure-term plan from Aviva Life Insurance, offering financial protection to beneficiaries in the event of the policyholder’s premature demise. Conveniently available for purchase online without agent assistance, the plan provides higher Sum Assured amounts and special benefits for female policyholders.
Features
| Age Entry | Minimum: 18 years Maximum: 55 years |
| Sum Assured | Minimum: Rs.10,00,000 Maximum: No limit |
| Premium Payment Mode | Yearly and half-yearly |
Benefits
- Death Benefit: In the event of the policyholder’s demise, the nominee receives the Sum Assured, providing crucial financial support during a difficult time.
- Discounts on Large Sum Assured: Enjoy significant savings with discounts available for higher Sum Assured amounts, making it an economical choice for extensive coverage.
- Female Policyholder Rebate: Female policyholders receive an additional 5% rebate, promoting financial security for women and offering extra savings.
- Tax Benefits: Benefit from tax deductions on premiums paid and the Death Benefit under sections 80(C) and 10(10D) of the Income Tax Act, adding further value to your policy.
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Conclusion
Life insurance is essential for ensuring financial security and peace of mind for you and your loved ones. It offers protection against unforeseen events, providing a safety net to cover expenses and sustain your family’s lifestyle in your absence. Various plans cater to different needs and goals, offering benefits like death coverage, tax advantages, and additional riders. Especially during uncertain times, such as the COVID-19 outbreak, a life insurance policy is crucial for financial stability. Investing in life insurance is a proactive step to safeguard your family’s future and ensure their well-being.
