Best life insurance policy in India

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Life Insurance is one of the most vital investments an individual can make for their families and loved ones. The purpose of getting a life insurance is to provide monetary support to the beneficiaries in case of an unfortunate death of the policy holder during the policy period.

There are broadly 8 different types of life insurance in India, each offering different benefits to meet an individual’s financial goal: 

SR No. Insurance Types Short Description  Key Benefits
1 Term Plans The beneficiary receives a predetermined sum insured on the death of the policy holder within policy period. Low Premium Cost
2 Whole Life Insurance Plans Policyholders get life cover for 99 years. On survival up to 100 years, they receive matured endowment coverage. Life cover for entire life.
3 ULIPs The premiums paid for the purchase of these plans are divided into two: one portion is used to cover the cost of life insurance cover and the other portion is invested in equity funds, debt funds or other securities. Tax benefits under section 80C and Section 10(10D)
4 Endowment Plans Endowment Plans offer dual benefits of insurance and savings. These types of life insurance policies in India are best suited for individuals who want an insurance coverage along with a sizable savings component. Lump Sum amount received on survival until policy maturity.
5 Money Back Plans The policyholder gets a certain percentage of their total sum insured at regular intervals as a Survival benefit and the remaining sum assured would be given on maturity of the policy. In case, the policyholder dies during the policy period, the beneficiaries of the policy would receive the entire sum insured without any deductions. Part of the sum assured received on survival in pre-stated time intervals.
6 Child Insurance Plans These life insurance plans offer a life cover to the policyholder only for a single financial goal of ensuring financial well-being of their child. Welfare of child in an untimely death of policyholder. 
7 Retirement Plans The policyholder would pay premiums until retirement to create a corpus. And after retirement, the corpus generated by the policyholder over the years would be distributed back to them as a regular income for a predetermined time period. If the policyholder dies during the policy period, the beneficiaries would receive the sum insured. Regular income after retirement.
8 Group Insurance Plans Group life insurance in India is usually taken by corporations for the financial well-being of their employees and clients. Lower Premiums,

 

There is no single life Insurance in India that would offer you all the benefits together in a single policy. However, you can buy multiple life insurance policies but within the Human Life Value (HLV) limit as imposed by Insurance companies. 

HLV limit is generally up to 20 times of annual take-home income. In case you apply for life insurance in India which is greater than the HLV limit, the insurer would reject it. Hence, plan your financial goals before buying insurance.

For example: Certain financial goals like child education, retirement planning, savings plan, etc can even be achieved with other financial products-mutual funds, fixed deposit, PPF, etc.

We have listed below 3 best life insurance policy in India depending on parameters like claim settlement ratio, cost of premiums, additional riders available and average customer reviews:

SR No. Insurance Type Best Insurance Plan 
1 Term Plans
  • Max Life Smart Secure Plus
  • LIC Tech Term Plan
  • Bajaj Allianz Smart Protect Goal Term Plan
2 Whole Life Insurance Plans
  • LIC Jeevan Umang
  • Max Life Whole Life Super
  • HDFC Life Sampoorn Samridhi Plus
3 ULIPs
  • HDFC Click 2 Wealth
  • Bajaj Allianz Future Gain
  • LIC’s New Endowment Plus
4 Endowment Plans
  • LIC’s New Jeevan Anand
  • Aditya Birla SunLife Insurance Secure Plus Plan
  • ICICI Pru Savings Suraksha
5 Money Back Plans
  • HDFC Life Super Income Plan
  • ICICI Pru Cash Advantage
  • Kotak Premier Money Back Plan
6 Child Insurance Plans
  • AEGON Life Rising Star Insurance Plan
  • Bajaj Allianz Young Assurance
  • HDFC SL YoungStar Super Premium
7 Retirement Plans
  • SBI Life Saral Pension Plan
  • Aditya Birla Sunlife Empower Pension Plan
  • Bajaj Life-Long Goal Pension Scheme
8 Group Insurance Plans
  • Bajaj Allianz Life Group Term Life Plan
  • ICICI Pru Group Term Plus
  • SBI Life – Sampoorn Suraksha

 

Consult your insurance advisor for assistance in choosing the best life insurance policy in India based on your insurance needs and requirements.

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