Top 5 Term Insurance Plans in India – Which One Should You Buy?

Term insurance is one of the most important financial products for securing your family’s future. Unlike traditional life insurance, term plans are pure protection products that offer high coverage at an affordable premium. In 2025, India’s insurance market has several term insurance options, each with unique benefits, add-ons, and flexibility. Choosing the right plan requires understanding your needs, budget, and the features of different policies.

Why Term Insurance is Crucial

The primary purpose of term insurance is to provide financial security to your family in case of an untimely demise. It ensures that your dependents can maintain their lifestyle, repay debts, cover education costs, and meet daily expenses without financial strain.

Unlike endowment or traditional insurance policies, term insurance focuses solely on protection, which keeps premiums lower while offering higher sum insured.

Key Factors to Consider Before Buying

Sum Insured: Your coverage should ideally be 10–15 times your annual income to ensure adequate financial security.
Policy Term: Choose a term that covers you until your financial responsibilities, like children’s education or retirement of the spouse, are fulfilled.
Premium: Compare premiums across insurers for the same sum insured and term. Opt for plans that balance affordability and coverage.
Claim Settlement Ratio: Check the insurer’s claim settlement record. A higher ratio indicates reliability in paying claims.
Add-ons and Riders: Critical illness cover, accidental death benefit, waiver of premium, and disability riders can enhance protection.

Top 5 Term Insurance Plans in India 2025

1. LIC Tech Term Plan

LIC’s term plan offers high coverage with the trust of India’s oldest insurer. It provides options for level or increasing sum insured and allows various riders for added protection. Known for a strong claim settlement history, LIC remains a safe choice for conservative buyers.

2. HDFC Life Click 2 Protect Plus

HDFC Life’s term insurance is flexible and affordable. It provides multiple plan options such as life cover with critical illness or accidental death benefits, making it suitable for those seeking comprehensive protection. The online buying process is quick, and premiums are competitive.

3. ICICI Prudential iProtect Smart

This plan stands out for its critical illness coverage, flexible policy terms, and online convenience. It also offers features like waiver of premium in case of disability, ensuring that your protection continues without extra cost.

4. Max Life Smart Term Plan

Max Life offers a variety of term plan options with flexible sum insured, policy terms, and riders. The plan is especially good for families wanting a combo of life insurance and critical illness coverage in a single policy.

5. SBI Life eShield

SBI Life’s term plan is affordable and provides high coverage for a low premium, making it ideal for first-time insurance buyers. The plan comes with optional riders and is backed by the credibility of India’s largest public sector bank.

How to Choose the Right Term Plan

Assess your financial responsibilities: Children’s education, home loan, and family maintenance.
Compare premiums online for similar coverage and age.
Consider riders only if they align with your risk profile and needs.
Buy early: Premiums are lower when you are young and healthy, and you get higher coverage for the same cost.
Read policy documents carefully to understand exclusions, waiting periods, and claim procedures.

Final Thoughts

In 2025, term insurance remains the most cost-effective way to secure your family’s future. Plans like LIC Tech Term, HDFC Life Click 2 Protect Plus, ICICI Prudential iProtect Smart, Max Life Smart Term, and SBI Life eShield offer a mix of affordability, flexibility, and reliable claim settlement.

The key is to choose a plan that matches your financial goals, lifestyle, and family responsibilities. Buying a term insurance policy today ensures peace of mind, knowing that your loved ones will be financially protected no matter what happens.