10 Best Term Insurance Plans In India 2025

In life, there are no warning bells before things start to change course. For most, it’s the real-life triggers that drive them towards their financial planning journey. Whether it is a new family member, a home loan, or aging parents, these events can sharpen an individual’s need for financial protection.

A financial product like term insurance is specially designed for these crossroads of life. An affordable and efficient safety net that ensures life goals stay on track even when life itself doesn’t. Despite it being a great financial instrument, term insurance only accounts for 5% of policy sales in the market today. While many still don’t realise its potential benefits or feel restricted due to emotional barriers, you have made the right call by wanting to learn more about it.

But finding the right cover isn’t just about buying a policy with the highest coverage amount; it’s about finding a plan that fits your life at its current pace, your ongoing financial obligations, and your long-term goals. Specially if you are the primary income earner in your family, there’s a lot that goes into making sure you and your loved ones stay protected during unforeseen circumstances. 

So read this blog till the very end, as we walk you through the benefits, importance, and features of term insurance and list our top 10 picks for term insurance plans available in India in 2025.

What Is Term Insurance?

A term insurance plan is a pure life insurance policy that provides financial cover for a specific period and can be renewed depending on the policyholder’s requirements.

While there are many types of life insurance policies, a term life insurance policy is the most cost-effective way to secure the financial stability of your family. The policy is purchased by the insured individual, who extends the coverage to their chosen nominee. The nominee receives the death benefit if the insured person passes away during the policy period. However, term insurance does not offer maturity benefits, which means if the policyholder survives the policy period, they won’t get the lump sum benefit amount at the end of the policy term.

Despite not offering maturity benefits, term insurance is still a viable financial tool to secure your loved ones. It is particularly effective for sole breadwinners who have dependent family members. Here is a list of attractive benefits that a term insurance plan offers and why you should add it to your financial toolkit:

Also, read: 10 Best Life Insurance Companies in India

A Comparative View of Top 10 Term Insurance Plans in India

*Plan specs like premium, coverage, and benefits may vary depending on factors like age, gender, occupation, health status, etc. For accurate plan details, contact the insurer via the customer care helpline number or website.

10 Best Term Insurance Plans in India

Let’s look at the detailed analysis of our top 10 term insurance plans for 2025…

1. Axis Max Smart Term Plan Plus

This is a non-linked, non-participating, pure-risk life insurance plan offered through a partnership between Axis Bank and Max Life Insurance. The plan offers death benefits only, but policyholders can get enhanced protection through riders and add-ons.

Key Highlights

• Zero Cost Exit option to get the premiums back upon the discontinuation of the policy within the pre-established exit period. This allows better flexibility to policyholders if they wish to no longer be insured.

• The Critical Illness Benefit allows policyholders to receive a prompt payout against 64 critical illnesses. The policyholder can get the payout within 14 days of verification.

• High reliability in terms of claims settlements and compliance. The insurer has one of the highest CSRs of 99.79% and an amount settlement ratio of 95.5% against the industry average of 87%.

Who Should Opt For Axis Max Smart Term Plan Plus?

This term life insurance plan is versatile and ideal for steady and non-linked wealth creation. The plan is highly customisable to fit your evolving needs. Individuals who are just starting in their financial journey and have irregular income then they can benefit from this plan the most. Additionally, the joint life cover option can be suitable for new families too.

2. Tata AIA Sampoorna Raksha Promise

Key Highlights

• The top-up option allows policyholders to increase their life cover through different stages of life.

• Critical illness cover against 40 listed diseases and a 90-day waiting period (shorter than the industry average). Benefit payout is under 30 days of claim confirmation.

• The waiver of premium option is available against critical illness and permanent disability from an accident. This ensures that the policyholder doesn’t lose their coverage in case they are unable to make payments due to accidental disability or illness.

Who Should Opt For Tata AIA Sampoorna Raksha Promise?

Tata AIA Sampoorna Raksha Promise is a good starting point for anyone who is looking for decent coverage at a lower premium. Although the policy does not offer adjustments in coverage amount against inflation, policyholders can customise their coverage with riders to enhance coverage.

Recommended read: Top 10 Health Insurance Companies in India

3. ICICI Prudential iProtect Smart

ICICI Prudential offers some of the most competitive life insurance products. With comprehensive critical illness coverage and exciting first-year discounts for salaried professionals, their iProtect Smart term insurance plan is a well-deserved mention in this list.

Key Highlights

• A claim settlement ratio of 99.17 in 2024, which is well above the industry standard of 97%. And a claim amount settlement ratio of 91.16% against the industry average of 87%.

• Zero Cost Option available for policyholders wishing to exit the policy without losing the premiums paid till the point of exit. To get a full refund of the premium, the zero-cost exit needs to be exercised within the stipulated period.

• Complete payout of the sum assured upon the diagnosis of a terminal illness. iProtect Smart offers coverage against 34 critical illnesses.

Who Should Opt For ICICI Prudential iProtect Smart?

The plan offers exciting discounts for salaried individuals and great customisation for women. The plan can be purchased under the MWP Act (Married Women’s Protection Act), to ensure that the death benefit is only availed by the wife or children and cannot be claimed by any other relative. iProtect Smart does not offer payouts against permanent disability, so professionals working in high-risk environments should not opt for this plan.

4. HDFC Life Click 2 Protect Super

Click2Protect is a non-linked, non-participating, pure-risk term insurance plan with a plethora of coverage options to pick from. With the HDFC brand name, a good track record, and years of smooth operations make HDFC Life’s Click2Protect Super is a great option. The premium is relatively higher, which may be off-putting for some.

Key Highlights

• Option to increase coverage with inflation and plan top-up at different life stages. The plan’s flexibility allows you to generate inflation-adjusted wealth. You can also increase your policy term later if required.

• Critical illness cover is available against 60 diseases, and the policyholder gets a payout on top within 15 days of verification. The plan has a short waiting period for critical illnesses of 90 days.

• HDFC Life scored a claims settlement ratio of 99.5% in 2024 against the industry average of 97%.

Who Should Opt For HDFC Life Click 2 Protect Super?

Despite the premium cost being relatively higher, Click2Protect Super is a good option for people holding debts and people with multiple dependents. The plan offers spousal coverage and extends benefits to parents as well. The limited pay option allows policyholders to choose the number of years they want to pay the premiums for.

Also, read: Top 5 Cashless Health Insurance Plans in India

5. Bajaj Allianz Smart Protect Goal

Bajaj Allianz is not the most popular brand in this domain, but their Smart Protect Goal plan is relatively easy on the pocket and offers comprehensive life cover.  The insurer has a great track record of claims settlement and assistance in the past, making it a reliable option for you to pick from.

Key Highlights

• A claims settlement ratio of 99.23% and a solvency ratio of 432%. Despite being a newer insurer in the market, Bajaj Allianz has covered 3.97 crore lives to date.

• Critical illness cover is available against 55 diseases, and payout is on top of the total term cover, which gets disbursed within 14 days of verification. The waiting period for critical illness in this plan is 180 days.

• Policyholders have the option to automate an increase in coverage against inflation.

Who Should Opt For Bajaj Allianz Smart Protect Goal?

The Smart Protect Goal from Bajaj Allianz offers comprehensive coverage with options to add most commonly available riders. There are multiple variants of this plan to pick from that can be tailored to fit the diverse needs of people. This one is ideal for people who want basic term insurance coverage at a lower premium. The only downside of the plan is that it doesn’t offer a waiver of premiums in case of a critical illness or an accidental disability.

6. Tata AIA Maha Raksha Supreme Select

This is the second Tata AIA plan in this list, and it is a more versatile plan compared to the other one. In fact, Maha Raksha Supreme Select is perhaps the most distinguishable plan in this list, with many attractive features and benefits. It may be priced slightly higher than the other plans, but women can get this term plan at an extra 15% discount on premiums.

Key Highlights

• The FlexiPay benefit allows you to defer premium payment up to 12 months in financially stressful times, and the premium waiver option prevents you from additional financial hassle during an accidental disability or critical illness.

•  Top up, life stage cover, policy extension post maturity are all exciting features that help enhance the Maha Raksha Supreme Select plan

• Add-ons like accidental cover and critical illness cover offer pretty much the same benefit as the Sampoorna Raksha Promise plan

Who Should Opt For Tata AIA Maha Raksha Supreme Select?

Maha Raksha Supreme, by far and large, encompasses all benefits that one can add to their term insurance plan. With the diverse options and multiple plan variants, it is suitable for anyone who can look past the high premium cost.

Suggested read: Top 10 Health Insurance Plans for Family

7. Future Generali Care Plus

The insurance company Future Generali is a joint venture between Future Group and Generali Participations Netherlands N.V. The term insurance product offered by Future Generali is not perhaps the strongest contender in this list, but because of the insurer’s solid customer support and tech-savvy platform, it stands out.

Key Highlights

• The customer-centric insurer offers policyholders the option to set their own policy term and premium payment term. And the flexibility to receive the payout in a lump sum, monthly instalments, or both. 

• The plan comes with a free-look period, a 30-day grace period, and a revival benefit in case the policy lapses.

• The policy comes in two plan variants, where one just offers death benefits and the other offers death benefits and accidental death benefits.

Who Should Opt For Future Generali Care Plus?

The Care Plus term insurance plan from Future Generali is a classic that offers only a death benefit to the nominee of the policyholder. It is simple, cost-effective, and offers tax relief on premiums. The plan is ideal for those who value customer service and want just the basic coverage from their term insurance plan. If you have multiple dependents and liabilities with no other long-term investments, then this plan is not suitable for you.

8. Bharti AXA Life Flexi Term

The Flexi Term Pro plan from Bharti AXA is highly customisable and offers a wide range of riders to pick from. The plan is moderately priced and boasts all essential term insurance features.

Key Highlights

• The Hospi Cash Rider can be availed to cover hospitalisation costs of up to 40 days. The benefit can be availed as a lump sum or on a per-day basis.

• The non-linked complete shielder covers accidental death, accidental total and permanent disability, accidental permanent and partial disability, standard critical illnesses, comprehensive critical illnesses, and cancer care.

• The plan also offers life stage benefit and flexibility in premium payment and policy term.

Who Should Opt For Bharti AXA Life Flexi Term Pro?

The Flexi Term Pro plan is as good as it can get. It is highly customisable and comprehensive, making it an ideal pick for anyone.

Quick read: Top 5 Monthly Health Insurance Plans in India

9. Kotak e-Term Insurance

Kotak e-Term offers a whopping 50% increase in coverage if you get married or buy a house. The insurer is a reliable name and has recorded a decent performance in the past. In terms of coverage and benefits, the plan does not offer any other stand-out features.

Key Highlights

• The plan offers an accidental death benefit and a zero-cost option to exit before maturity with all your premium payments refunded in full.

• e-Term covers 37 critical illnesses and offers payout on top of the death benefit. The waiting period for critical illness cover is only 90 days.

• A waiver of premium option is available in case of a permanent disability caused by an accident.

Who Should Opt For Tata AIA Maha Raksha Supreme Select?

The best feature of the Kotak e-Term plan is the Life stage benefit, which can increase the coverage by 50%. It can be really helpful for people planning to start a family or buy a house. The increased coverage can be used to pay off the mortgage in case of a premature death of the policyholder, and it doesn’t cut into the original sum assured.

10. SBI Life eShield Next

The eShield Next is a non-linked, non-participating, pure-risk term insurance plan. SBI Life is India’s leading insurance company with a diverse product portfolio and a strong distribution network. This is a new age protection plan that covers your existing and evolving needs.

Key Highlights

• Future proofing benefit provides the option to increase cover at different life stages without additional medical underwriting.

• Payouts against critical illness, accidental death, and accidental disability can be availed on top of the sum assured.

• The policy offers a free-look period, a grace period of 30 days, and the option to revive a lapsed policy.

Who Should Opt For SBI Life eShield Next?

The eShield Next plan is a comprehensive and lucrative option. However, it does not provide any other riders apart from accidental death and accidental disability cover. So, people who are looking for a simple term insurance plan with a good insurer reliability, then this is the plan for them.

Also, read: Top 10 Personal Accident Insurance Policies in India

Benefits Of Term Insurance

Whether you have a dual-income household or are the sole breadwinner, your family’s income loss may result in financial hardships. This may affect daily expenses, loans, children’s education, or maintaining the living standard.

Term insurance comes in handy in such situations, as the insurer pays your family (nominee) a lump sum amount (sum assured) that helps them manage their expenses even in your absence. It’s the best kind of protection you can offer to your loved ones.

By paying premiums for your term insurance plan, you can save on income tax, and here are the ways you can do it:

• Under Section 80C of the Income Tax Act of 1961, individuals can reduce their taxable income by Rs. 1.5 lakhs for premiums paid towards term insurance. However, Rs. 1.5 lakh is the overall deductible limit under Section 80C, and it also applies to other investments like Public Provident Funds (PPFs) and tax-saving Fixed Deposits (FDs).

• Under Section 10(10D) of the Income Tax Act, the death benefit received by the nominee will be completely tax-exempt. This means that the amount they will get from the term insurance will be the portion of their earnings that won’t be taxed.

• Under Section 80D of the Income Tax Act, premiums paid towards health insurance are deductible. But if you opt for health-related riders, like critical illness cover, surgical care cover, etc., as part of your term insurance cover, you can also avail deductions under Section 80D.

Relevant read: Section 37 of Income Tax Act

Term insurance plans don’t generally offer maturity benefits or cash value benefits, which is why they are more cost-friendly alternatives to other life insurance plans like endowment plans or unit-linked insurance plans (ULIPs). This is also why insurers can offer a large sum assured despite the low policy premiums. Term insurance is the most economical way to get a bigger life cover.

OPD treatment is generally more cost-effective compared to inpatient care, as it eliminates the various expenses associated with hospitalisation.

In many cases, patients can schedule appointments for OPD treatment in advance, reducing the need to wait for long periods to see a healthcare provider. This helps improve patient satisfaction and allows for more efficient use of time for both patients and healthcare professionals.

Speaking of income replacement, your nominee should have the flexibility of opting for a payout at their convenience. Term insurance offers this kind of flexibility, where the beneficiaries of the policy can opt for either a lump sum payout or a monthly payout.

A lump sum payout can help families meet bigger and more immediate financial obligations like funeral expenses, loan payments, and children’s education. Monthly payouts, on the other hand, can ensure continuity in household income to ensure day-to-day expenses are met.

While term insurance only provides the standard death benefit, policyholders have the option to add benefits or enhance coverage with riders. These add-ons can significantly increase the premium cost, but can also provide better financial support. Depending on the specific needs and requirements, policyholders can opt for the following riders:

• Critical Illness Rider: Policyholders can get extended coverage for specific critical illnesses. A pre-determined sum is assured specifically for critical illnesses like kidney failure, heart attack, cancer, etc. The policyholders can utilise this payout for treatment and timely recovery.

• Accidental Death Benefit Rider: This add-on pays the nominee an additional sum in case of an accidental death. This is in addition to the base sum assured of the term insurance policy. This provides an extra financial cushion for an unprecedented and untimely demise.

• Return of Premium: Term insurance payouts can only be used upon the policyholder’s death during the policy period. However, with the Return of Premium (ROP) options, policyholders can receive the survival benefit (premium paid toward the policy) upon the completion of the policy period.

Also, read: Top 5 Group Medical Insurance for Family

Who Should Buy Term Life Insurance?

1. Working Women

Many term life insurance plans offer great discounts and benefits to women, making it a lucrative investment for the future. Additionally, a term plan offers benefits like a critical illness rider that can protect them against many debilitating illnesses that commonly affect women.

2. Single Parents

Being a single parent can be a handful and financially taxing. A term plan is a cost-effective way to protect your kid’s future, specially if you are a single parent and sole income earner. So that even in your absence, you can shield them from rough patches in life.

3. Sole Breadwinners

If you are the sole earner of your family, then you should definitely get term life insurance. It will protect your loved ones against all financial odds in your absence. Additionally, buying a basic term life insurance with death benefits will not cost you a fortune.

4. People With Big Debts

If you have long-term debt like a home loan or a car loan, then term insurance is a must. In case of an untimely demise, the final payout from the policy can help the beneficiaries pay off any pending debts and reduce their financial burden.

Also, read: Top 5 Group Health Insurance Companies in India

Factors That Affect Term Insurance Premium

1. Age

The reason why age is considered a premium defining factor is that a young individual is less prone to falling ill or passing away prematurely. The insurance framework categorises these young individuals into low-risk group, which implies that this cohort is less likely to make an insurance claim. On the other hand, old people and people with pre-existing conditions are categorised as high-risk and are more likely to make claims against their insurance policy.

That being said, investing in a term plan in your 30s is more rewarding than it is in your late 40s, as it comes with a higher coverage amount (sum assured) at a lower premium cost.

2. Lifestyle and Habits

Poor lifestyle and habits like smoking and drinking have been scientifically proven to reduce life expectancy. Smokers are more likely to contract various critical illnesses like lung cancer and heart disease. The high risk associated with this cohort is proportionate to their premium cost for term insurance.

3. Occupation

The nature of your work can also bear some impact on your term insurance premium. Not all jobs possess the same level of risk, as a construction worker may be at a higher risk exposure than a person working a desk job. If you work in a high-risk job and you want to purchase a term policy, you will notice that your policy premium will be slightly more expensive than it will be for an individual with a low-risk job, and vice versa.

4. Sum Assured

Your premium is also subject to increase in direct proportion to the amount you get insured against. The larger your sum assured is, higher the premium you have to pay. However, if you wish to get a substantial term plan with a low premium, then you should buy it at an early age.

5. Policy Tenure

When it comes to life insurance, the policy term is generally longer. It is obvious that any policy purchase will be made keeping in mind the years one may have ahead of them or the retirement age. Let’s say, if you are buying a term insurance plan at the age of 36, you will at least get coverage for the next 15-20 years. Some may even go for a 30-year tenure. And longer the policy period is, the higher your premium will be.

Regardless of your age, occupation, and health status, term insurance is a worthy investment in yourself and your loved ones. You can get the most out of your policy by carefully aligning your financial needs to your insurance coverage. Fortunately, most of the aforementioned plans offer great customisation and payment flexibility that can easily meet your requirements.

Also, read: Group Term Life Insurance for Employees

How Much Term Life Insurance Cover Is Sufficient?

Most financial experts recommend having a term insurance cover 10 times your annual income. So, if you earn Rs. 12 lakhs a year, then you should at least get a cover of approximately Rs. 1.5 Cr. However, this thumb rule doesn’t account for the inflation and different life stages that you may go through. With these evolving stages, your financial goals may also reset, and therefore, you need a more detailed approach to determining the appropriate sum assured in your term plan.

In which case, you can use the Human Life Value (HLV) method to calculate the required coverage. The HLV method takes into account your family contribution, your earning years, inflation, and liabilities to give you the most reliable estimate. It is always a good practice to consult a financial expert before making a long-term financial investment like a term plan.

When Is The Ideal Time To Get A Term Life Insurance Cover?

With term insurance, it’s never too late. However, the sooner you buy it, the better your coverage will be. You’ll have lower premiums but better benefits. Your 30s are the most financially critical years, as you get a longer runway to plan and secure your and your family’s future. Additionally, everyone has different financial goals, so a one-size-fits-all solution rarely works.

You can, however, consider buying a term plan during these critical stages of life: when you have dependents, when you take out a big debt, or when you are planning to start a family.

Summing It Up

FAQs