- Affordable premiums
- Flexible policy tenure
- Choice of sum assured
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Himanshu is a content marketer with 2 years of experience in the life insurance sector. His motto is to make life insurance topics simple and easy to understand yet one level deeper for our readers.
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Naval Goel, the founder of PolicyX is a well-recognised name in the Indian insurance and finance industry. His global overview has revolutionised the way insurance is perceived and bought by commoners in India.
Updated on Feb 24, 2025 19 min read
Best Term Insurance Plans in 2025
People often get confused about what is a term insurance plan. Simply term life insurance is a pure protection plan that provides financial coverage to your loved ones or nominees in case of your uncertain death during the policy tenure. The nominee can use the money received to cover their expenses. You can buy a term insurance plan starting at just Rs 11-/ per day.
We always want the best for our family but when buying term insurance why don’t we do proper research and choose the best term insurance? We know selecting the best term insurance plan is a tricky and time-consuming task. But, we are here to help you choose a term insurance policy to keep your family financially stable even in your absence.
To choose the best term life insurance policy you must consider several important factors. These factors will help you make the right decision.
- CSR (Claim settlement ratio) of the insurance company
- Sum assured
- Market reputation of the insurer
- Additional riders offered with the plan
- Your liabilities
- Coverage
- Customization options available with the plan
- The solvency ratio of the insurance company
- Customer reviews and testimonials
We have provided you with a list of the best term insurance plans in India by considering the above factors that you can choose from.
Best Term Life Insurance in India in 2025
Below is the list of the 10 best-term insurance plans in India that can help you choose the right term insurance policy for you.
We have considered various factors to make this list available for you including:
Brand value of the insurer -The brand value refers to how well-known the insurer is based on its brand recognition and the annual premiums of the company declared by the IRDAI in the 2023-24 annual report.
CSR - Claim Settlement Ratio indicates the percentage of claims the insurer has settled during the financial year against the total number of claims they received.
Affordability - It refers to how budget-friendly the plan is.
Rating indicators:
4.5 to 5 - Best
4 to 4.5 - Good
Below 4 - Average
pert Insights
Keeping your term plan and an investment plan different is one of the best financial decisions you can make to secure your loved ones. Doing so helps you save a considerable amount in premiums.
Term Insurance Eligibility Criteria
Check the eligibility criteria to buy a term life insurance plan in India.
| Eligibility Criteria | Details |
| Entry Age | The minimum age to buy a term insurance plan is 18 years while the maximum age is 65 years but this can vary from insurer to insurer. |
| Citizenship | Indian citizens and Non-Resident Indians (NRIs) can buy a term insurance plan in India |
| Occupation | You can buy a term life insurance policy if you are a self-employed, salaried employee, or a part-time worker. |
| Lifestyle Habits | If you are a smoker or consume alcohol the premiums are higher as compared to a non-smoker. |
| Medical History | Your premiums are higher if you have records of illness or any disease. |
| Coverage Amount | The insurer may check your financial stability to determine whether you are eligible for the chosen sum assured or not. |
Why Should I Buy Term Insurance?
There are various reasons that you should consider to buy a term life insurance plan:
Higher Coverage at Affordable Premiums
A term insurance plan offers a high sum assured at a relatively low premium amount. You can get 1 crore coverage for premiums starting at just Rs 21/- per day.Helps to Cover Your Liabilities
You might have taken out a loan to create assets like a home, car, or any other valuables, etc. A term insurance plan protects your loved ones from debt burden in your absence.To Prepare for Uncertain Times
The major purpose of a term insurance policy is to provide financial help to your loved ones in case something unfortunate happens to you.To Secure the Financial Future of Your Loved Ones
You should buy a term insurance plan to secure the financial future of your family. Your loved ones can use the amount to carry out their expenses.Provides Early Peace of Mind
A term life insurance plan provides early peace of mind as it ensures that your dear ones are financially stable even in your absence.
Benefits of Buying a Best Term Insurance Plan
There are various benefits of term life insurance. Let’s understand these benefits in detail:
Financial security for the family or loved ones
Being an earning member of the family, it’s your responsibility to look after the well-being of your family. Buying term insurance is a wise decision to ensure that your family will be taken care of, even when you are not with them.
Return of Premiums
A term plan with a return of premium pays back the premium paid towards the plan to the policyholder at the end of the tenure if they outlive the policy term.
Joint Life Option
Under the joint-life option, you can add your husband or wife to the same plan. Upon the unfortunate death of one partner, the other will get a lump sum death benefit. However, the death payout can be used to maintain household expenses.
Tax Benefits
You can avail of tax benefits up to ₹1.5 lakhs annually for the premiums paid towards a term plan under Section 80C and Section 10 (10D) of the Income Tax Act, 1961.
Additional Riders to Choose From
With add-on riders, you can enhance your base cover by paying a nominal premium. These add-ons provide additional financial support to the nominee beyond the base policy if an unfortunate event occurs, such as an accidental death, disability, or critical illness diagnosis.
Smart Exit Option
Under this option, you can surrender your plan during a specified period and get back all premiums paid against the death benefit during the policy’s duration. Remember that no additional premiums are payable if you opt for this option.
Premium Breaks
With the premium break option, you can take a break from paying premiums for a specific period without canceling the policy. Throughout the premium break option, the policy remains active, and you can still get coverage benefits.
Voluntary Sum Assured Top-up
With a voluntary sum assured top-up, you can increase your life coverage at any time during the policy term. This benefit is ideal for young investors to upgrade their life cover without repeated documentation or paperwork.
When Should I Buy Term Life Insurance?
The premiums of your term life insurance get fixed for a certain policy tenure. Buying term insurance early can help you save a lot of money in premiums. The earlier you buy, the lower your premiums. To have a better clarity of how premiums increase with your age let’s take a look at the premium illustration table.
| Age of the Policyholder | Monthly Premiums |
| 20 years | Rs 808 |
| 30 years | Rs 1265 |
| 40 years | Rs 2763 |
| 50 years | Rs 7784 |
| 60 years | Rs 18,360 |
The above premiums are for Tata AIA Sampoorna Raksha Promise Plan for a sum assured of Rs 1 crore and a policy tenure of 30 years. From the above illustration table, you can see how premiums for your best term life insurance plan increase with an increase in age.
Factors to Consider When Choosing the Best Term Insurance Plan
You have to consider certain factors when choosing the best term insurance plan. Let’s understand these factors in detail.
CSR (Claim settlement ratio) of the Insurance Company
The claim settlement ratio of an insurer indicates the number of claims settled by them out of the received claims. A high claim settlement ratio is a positive indicator of a good insurance company.
Solvency Ratio of the Insurance Company
The solvency ratio of an insurer indicates the ability of an insurance company to settle the received claims. Every insurance company must maintain a solvency ratio of at least 1.5 as per the IRDAI.
Market reputation of the insurer
Before buying a term plan from an insurer, you should check their trustworthiness and market reputation (number of years in the insurance business, number of branches, customer support quality, etc) to make the right decision.
Additional Riders Offered with the Plan
You should check whether the plan you are opting for is offering additional riders to enhance the coverage of your plan as per your requirements.
Customisation Options Available with the Plan
A good term plan can be customized as per the requirements of the policyholder in terms of policy tenure, premium payment tenure, sum assured, etc.
Customer Reviews and Testimonials
You must check the customer reviews and testimonials of the plan you are thinking of buying. It gives you a brief idea of whether that term plan is right for you or not.
Which Factors Affect Your Term Insurance Premiums?
Various factors affect your term insurance premiums. Let’s understand these factors in detail:
Age
The age of the policyholder is directly proportional to their premium amount. The higher the age, the more will be the premium amount. Buying a term plan at an early stage of life means you’ve to pay less premiums (refer to the premium illustration table under “When Should I Buy Term Life Insurance?”).
Health
The health of an individual directly impacts their premium amount. A healthy individual is likely to pay less premiums as compared to an individual who is suffering from any pre-existing diseases.
Lifestyle habits
Smoking, drinking, or risky activities can lead to expensive premiums due to the health risks. An individual who is involved in such activities is likely to pay high premiums.
Occupation
Your term insurance premiums also depend on the occupation you choose. If you are involved in a hazardous occupation then your premiums are going to be high.
Policy Duration
Your premiums also depend on the policy duration you choose. Longer duration policies have higher premiums as compared to policies with short duration.
Gender
The premium amount also depends on your gender. Generally, insurers offer special premium rates for women.
Why Buy Term Life Insurance Online?
Here are the reasons why you should buy the best term insurance plan in India online:
Easy Comparison
You can compare various term insurance plans online and choose the best term plan based on various factors including premiums, sum assured, policy tenure, etc.Easy Premium Calculation
When buying a term insurance plan online you can easily calculate your premium amount using a term insurance premium calculator. This tool calculates your premiums within a few seconds of providing the required details.Hassle-free Process
Buying a term life insurance plan online is a simple and hassle-free process. You can easily submit the required documents and get the best term plan for you.Eliminate Middlemen Charges
By purchasing a term life insurance online you can avoid the charges of middlemen or insurance brokers. Generally, insurance brokers charge you a commission when you purchase an insurance plan through them.Choice of Premium Payment Mode
You can choose a premium payment mode of your choice like monthly, quarterly, half-yearly, or yearly while buying a term insurance policy online.Option to Choose Additional Riders
You can opt for additional riders of your choice with your term plan like accidental death benefit rider, waiver of premium rider, critical illness rider, etc.
Why Buy the Best Term Plan From PolicyX?
Here, we’ve listed a few reasons why you should buy the best term life insurance plan in India from PolicyX.com.
- Dedicated claim support and guidance to family for free.
- The best prices from top life insurance companies in India.
- Get an extra discount on buying term plans online.
- Online free helpdesk.
- No Spam, No Gimmicks, and Only Expert Insurance Advice
- Free-of-cost policy comparison.
- 100% recorded calls to omit misselling.
Most importantly, we understand and respect the value of human life and the role of insurance in it.
Who Should Buy Term Insurance?
Everyone should consider buying a term insurance plan but the following individuals must buy a term insurance policy:
Parents
Parents are the ones who provide financial and emotional support to their children till they mature. They must invest in a term insurance policy to ensure their children are financially protected in case of any mishap with them.Young Professionals
A young professional who has just started earning must buy a term plan to make sure their loved ones are protected even in their absence. The premiums are very affordable if you buy early.Newly Married
A newly married couple must invest in a term insurance plan to make sure that one partner does not suffer financially in case of any mishap with the other.Women
The participation of women in every field including managing finances and supporting families is increasing. Buying a term plan is necessary for women to make sure their family is financially protected even in their absence.Senior Citizens
Even though the premiums for senior citizens are higher, investing in a term plan is ideal for senior citizens. A term plan makes sure that your spouse can live a financially stable life.Self-employed
Investing in a term plan for self-employed individuals is totally worthwhile as a term plan makes sure that their family is financially stable even if something happens to them.Taxpayers
A taxpayer must invest in a term insurance policy as they can avail of tax deductions up to Rs 1.5 lakhs on the premiums paid under Section 80 (C) and Section 10 (10D) of the Income Tax Act, 1961.
Common Mistakes to Avoid When Buying a Term Insurance Plan
Here are some of the common mistakes that you must avoid when buying a term life insurance plan:
Delaying Premium Payment
You should pay your term insurance premiums timely to avoid penalties and late charges. Moreover, you can set auto debit from your bank account to avoid missing any premium payment.Opting for Inadequate Sum Assured
When buying a term insurance plan you should choose the right sum assured based on your financial goals and requirements. The sum assured varies for every individual based on their specific needs.Choosing Short Policy Tenure
You must avoid choosing the short policy term to save premiums. You must choose an adequate policy tenure based on your future financial goals.Adding Unnecessary Riders
There are many rider options available for you to choose from. But you must choose only the necessary riders as each rider costs you an additional premium. If you add unnecessary riders your premium amount will increase.Hiding Information from the Insurer
At the time of buying the term plan, you must disclose all the required information. Hiding or sharing any misleading information may result in claim rejection in the future.
Term Insurance Terminologies
Insurance company/ Insurer
The insurer or the insurance company is the entity that undertakes risk and promises to pay for the loss that occurred during the policy tenure in exchange for premiums paid by the policyholder.Insured
The person or entity that is covered against risk is called the insured.Policyholder
The person who buys an insurance policy is called a policyholder. A policyholder can or cannot be the insured.Policy tenure/ Policy term
It is the number of years for which the policy remains active if the premiums are paid on time.Sum assured/ Coverage
The fixed amount paid to the beneficiary in case of the policyholder’s uncertain death during the policy tenure.Beneficiary/ Nominee
A person who is entitled to benefits or sum assured in case of the policyholder’s unfortunate death.Premium Payment Tenure
This is the number of years for which the policyholder has to pay the premiums.Maturity Date
It is the date at which the policy ends and the benefits are paid to the insured.Death Benefits
It is the amount paid to the nominee in case of the policyholder’s unfortunate death during the policy tenure.Maturity Benefits
It is the amount paid at the time of policy maturity.Term Insurance Premium Calculator
This is a free online tool that helps you calculate the premiums for your term life insurance plan.NRI Term Insurance
It is a term insurance plan designed for people living outside India. It offers the same benefits as a traditional term plan. You can buy the best term insurance plan in India for NRI​ either from the insurer’s website or PolicyX.com.Senior Citizens Term Insurance
This is a term insurance policy designed for individuals above the age of 60. It helps you protect your loved ones financially in case of your unfortunate death during the policy tenure. There are various best term insurance plans for senior citizens​ available online.
Conclusion: Best Term Insurance Plans in India
Choosing a best term insurance plan is a hectic and time-consuming process. To ease your search we have provided a list of the best term plans in India in 2025 based on several parameters including CSR (Claim Settlement Ratio), solvency ratio, the market reputation of the insurer, customer testimonials and reviews, experience in the insurance industry, etc.
If you are someone who is still confused about which term plan is best for you then you can contact us at PolicyX.com. One of our insurance experts will contact you shortly, understand your requirements, and help you choose a plan that best fits your requirements. We offer No Spam, No Gimmicks and Only Expert Insurance Advice.
Best Term Insurance Plans in India: FAQs
1. Which is the best term plan to buy in 2025?
Axis Max Life Smart Term Plan Plus is considered the best term plan you can consider to buy in 2025 in India.
2. Which term plans based on CSR are best in India?
There are various best-term plans based on CSR in India including the Max Life Smart Term Plan (99.65%), HDFC Click 2 Protect Life (99.39%), PNB MetLife Mera Term Plan Plus (99.06%), Bajaj Allianz Life eTouch Term Plan (99.04%), Bandhan Life iTerm Prime (99.66%), etc.
3. Which company is best for term insurance?
As per claim settlement ratio, solvency ratio, and various other parameters Max Life is considered as the best term insurance company.
4. Are there any term plans that are highly recommended?
Max Life’s Smart Secure Plus plan is one of the best-selling term plans, offering multiple inbuilt benefits, such as a premium break, joint life, and sum assured top-up.
5. How can I find the best term insurance plan for me?
To find the best term plan for yourself, you must consider factors such as claim settlement ratio, solvency ratio, customer reviews, flexible payout options, and multiple benefits.
6. As an NRI, can I buy the best term insurance plan in India?
Yes, NRIs can buy term life insurance plans in India. You can do so through video/telemedial examination from their residential country.
7. What is the age limit for buying the best term insurance plan in India?
The maximum age limit to buy the best term plan is 60, while the minimum age to buy term insurance is 18.
8. How to compare term insurance plans in India 2025?
You can compare term insurance plans in India in 2025 on various parameters including CSR, solvency ratio, customer testimonials, market reputation, etc.
9. How to choose the best term insurance plan in India in 2025?
To choose the best term insurance plan in India in 2025 you must consider certain factors such as claim settlement ratio, solvency ratio, brand reputation, and customer testimonials of insurers.
10. Which term insurance company has the best claim settlement ratio?
Axis Max Life Term has the best claim settlement ratio of 99.65% as per IRDAI Annual Report 2023-24.
11. What is the maximum amount of term insurance?
You can buy term insurance for coverage which is as high as Rs 10 crores.
12. Is term insurance tax-free?
No, term insurance is not tax-free but you can claim tax deductions on the premiums paid under Section 80 (C) and Section 10 (10D) of the Income Tax Act, of 1961.
13. What are the types of term plans available in India in 2025?
There are three basic types of term plans in India 2025 including basic term plan, return of premium, and whole life plan.
14. Do term plans offer maturity benefits?
No, basic term insurance does not offer any maturity benefits. On the other hand, with a Term Return of premium (TROP) option, you can get back all your premium paid once you outlive the policy term.
15. Does term insurance cover accidental death?
Yes, term insurance covers accidental death. You can also avail accidental death benefit rider with your term plan.
16. Can a senior citizen get a term life insurance plan?
Yes, a senior citizen can buy a term life insurance plan from the insurer’s website or PolicyX.com
17. What are the exclusions in term insurance?
There is a suicidal exclusion in term insurance. If the policyholder dies due to suicide within 12 months of purchasing a term plan then no death benefits are paid to their nominee.
18. Do we get money back in term insurance?
A pure term insurance plan does not offer money back but a TROP (term insurance with return of premiums) offers your paid premiums back.
19. How long should be the term insurance policy period?
The term insurance policy period you choose depends on your financial requirements.
20. What is the difference between fixed and term life insurance?
The fixed term life insurance offers protection for the whole life while a term life insurance plan offers coverage for a certain policy tenure.
21. Does term insurance depend on salary?
Yes, the term insurance coverage you opt for also depends on your income or salary.
22. Is medical tests mandatory to buy a term insurance plan?
Yes, it’s mandatory to go through medical tests for a term insurance plan. However, certain plans come without medical examinations.
23. What is the sum assured in term insurance?
The sum assured is the coverage amount that you have opted for when buying a term insurance plan. This amount is paid to your nominee in case of your uncertain demise during the policy tenure.
24. How does a term plan secure your family’s future?
A term plan provides the chosen sum assured to your family that helps to secure their financial future in your absence.
25. What are the documents required to purchase the best term insurance plan?
There are various documents required to purchase a term life insurance plan including, identity proof, address proof, income proof, or any other additional documents asked by the insurer.
26. Can I purchase multiple term insurance policies?
Yes, you can purchase multiple term life insurance policies to secure the financial future of your loved ones.
27. How much life cover should I take with my term insurance policy?
The amount of coverage you choose depends on various factors including your annual income, lifestyle expenses, future financial needs, etc.
28. Can I choose additional riders with my term life insurance plan?
Yes, you can choose additional riders with your term life insurance plan including accidental death benefit rider, waiver of premium rider, critical illness rider, etc.
29. What are the best term insurance plan for 1 crore in India​?
There are various best term plans for 1 crore in India including SBI e-Shield Next, Bandhan i-Term Prime, HDFC Click 2 Protect Super, etc.
30. What is the best term insurance plan?
A best term insurance plan offers financial security to your loved ones in case of your unfortunate death during the policy tenure.
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Written By: Himanshu Kumar
Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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