Best Term Insurance Plans in India- A quick comparison


Best Term Insurance Plan

Please see an updated version of the comparison here- IRDA Claim Settlement Ratio for 2015 – Compare best online term insurance plans

As online term plans have gained popularity, almost all the life insurance companies have come up with their online term plans and claims to have the best term insurance plan. We usually view two criteria for comparing the term plans- price and claim settlement ratio.

When it comes to price- you will find many cheap plans from Aegon Religare, Aviva, Reliance, Max Life, Bharti AXA etc. Most of these (barring Max Life) have claim settlement ratios that are below 90%.

When it comes to claim settlement ratio- Most of the good players in the market like LIC, Max Life, HDFC Life, ICICI Pru, Kotak, Bajaj Allianz etc have claim settlement ratios that are closer to 95%

Combining these two criteria , here is our opinion of the best term insurance plans in the market:

Max Life Online Term Plan – Currently the Best Term Insurance Plan in India

    • Not only is it one of the cheapest plans, it scores really well in IRDA claim settlement ratio and complaint resolution.
    • Also Max Life carries a premium brand image in the market. As they were a little late to launch online term plan, they have priced it aggressively when compared to the likes of HDFC Life and SBI Life.

HDFC LIFE Click2Protect– Most consistent when it comes to claim settlement ratios

    • Although this is not the cheapest policy in the market ( about 20-25% expensive), it has maintained high claim settlement ratios for the past several years. You can check the historical claim ratios on
    • Good brand in the market as it has the HDFC pedigree. Also it has wide branch network in the country.

Bharti Axa, Aviva, Aegon, Reliance Term Plans – Cheapest but not the best

    • These plans are cheap but their IRDA claim settlement ratio is below industry average and definitely lower than the rest
    • Most of the claim ratios are in the 80s unlike SBI or LIC or Max Life which are well above 90%.

LIC,SBI Life, Kotak Life, ICICI PrulifeTerm Plans – Good claim settlement ratio but not the cheapest

    • LIC scores very high on claim settlement ratio ( around 97%) but their pricing is double that of something like Max Life. I won’t recommend spending so much on a term plan! The reason for the same is the fact that LIC’s bread and butter is single premium and endowment plans which are sold through agents.
    • SBI Life, Kotak, HDFC Life’s  online term plans are about 30-40% expensive than the cheapest plans in the market. Almost all of them have claim settlement ratios that are in excess of 90%.
    • All these carry good brand image in the market and thats why they try to charge extra for the same.

Compare the premiums and online claim ratios ( along with historical trends) at


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