Best Term Plan in India – Everything You Need to Know in 2025

In 2025, financial planning is no longer just a luxury—it’s a necessity. And when it comes to safeguarding your family’s future, having the best term plan in India is one of the smartest decisions you can make.

A term insurance plan ensures your loved ones remain financially secure in your absence, giving you peace of mind today and protecting their dreams tomorrow.

But with dozens of providers and countless features, how do you find the right one?

This guide will walk you through everything you need to know about the best term insurance plans in India, from features and benefits to comparisons and FAQs.

🛡️ What Is a Term Plan and Why Do You Need One?

A term insurance plan is a simple life insurance product that offers a high life cover at affordable premiums. If the insured person passes away during the policy term, the nominee receives the sum assured.

Unlike traditional policies, term plans don’t have a maturity value unless you choose a Return of Premium (ROP) option.

✅ Why Term Insurance Matters:

• Ensures financial security for your family

• Covers debts, loans, and education expenses

• Premiums are affordable and tax-deductible

• High sum assured (₹1 crore and above) possible for low premiums

🏆 Best Term Plan in India – Top Picks for 2025

Here’s a curated list of top term insurance policies in India based on affordability, claim settlement ratio, and value-added features.

1. HDFC Life Click 2 Protect Super

• Flexible plan with life, income, and return of premium options

• Coverage till 85 years

• Claim Settlement Ratio (CSR) for 2023–24: 99.6%

2. LIC Tech Term Plan

• Trusted government-backed plan

• Competitive pricing for non-smokers

• LIC term plan benefits include high CSR and optional riders

• CSR: 98.62%

3. Max Life Smart Secure Plus Plan

• Option for critical illness cover

• Income payout option available

• Term insurance premium calculator on website for easy premium estimation

• CSR: 99.51%

4. Tata AIA Sampoorna Raksha Supreme

• High coverage with return of premium

• Coverage up to 100 years

• Multiple riders including terminal illness

• CSR: 99.01%

5. ICICI Pru iProtect Smart

• Includes 34 critical illnesses coverage

• Accelerated death benefit feature

• One of the best term plans with critical illness cover

• CSR: 98.9%

🧮 How to Choose the Best Term Insurance Plan in India

Choosing the best term insurance plan in India depends on your unique financial goals and responsibilities.

👇 Key Factors to Consider:

✅ 1. Claim Settlement Ratio (CSR)

• Higher CSR = Greater trust

• Look for companies with 97%+ CSR (as per IRDAI approved term plans data)

✅ 2. Coverage Amount

• Opt for at least 10–15x your annual income

• For most, a term plan for ₹1 crore coverage is a good starting point

✅ 3. Policy Tenure

• Ideal tenure = Till retirement or financial independence

• 30-year term insurance policy in India is common for younger earners

✅ 4. Add-Ons and Riders

• Critical illness, Accidental death, Waiver of premium—choose wisely based on your needs

✅ 5. Affordability

• Use a term insurance premium calculator to compare plans

• The cheapest term insurance plan in India isn’t always the best—balance cost with benefits

✅ 6. Online Purchase Option

• Buying an online term plan in India often gets you lower premiums and convenience

📊 Term Insurance Comparison India (2025 Snapshot)

📥 How to Buy Term Plan Online in 2025 – Step-by-Step

Buying term insurance online is easier and safer than ever in 2025. Here’s how:

🔹 Step-by-Step Guide:

1. Compare Plans on insurer websites or aggregator portals

2. Use a term insurance premium calculator to estimate costs

3. Select policy tenure, sum assured, and any riders

4. Fill in personal details and complete e-KYC

5. Undergo medical exam if required

6. Pay premium and download your policy document

🧾 Tax Benefits of Term Insurance in 2025

Term plans also come with attractive tax deductions under the Income Tax Act, 1961:

💡 Benefits Include:

• Section 80C: Deduction of up to ₹1.5 lakh on premium paid

• Section 10(10D): Death benefit is fully tax-free for the nominee

👨‍👩‍👧‍👦 Best Term Insurance for Family in India

If your primary goal is to protect your family’s lifestyle, look for:

• High sum assured

• Income replacement option

• Add-ons like critical illness and accidental disability

Plans like Max Life Smart Secure Plus and ICICI Pru iProtect Smart are ideal for family protection due to their comprehensive coverage.

🔄 Best Term Plan with Return of Premium (ROP)

For those who want to recover their premiums if they survive the term:

• Tata AIA Sampoorna Raksha Supreme

• HDFC Click 2 Protect Super

• ROP plans return all premiums paid (excluding taxes) if you outlive the term

Note: Premiums for ROP plans are higher.

❓ FAQs: Everything You Need to Know

1. What is the claim settlement ratio of term insurance companies in India?

The claim settlement ratio reflects how many claims a company honors. As per IRDAI’s 2023–24 data, top companies like Max Life and HDFC Life have CSRs above 99%.

2. Which is the best term plan for ₹1 crore coverage in 2025?

ICICI Pru iProtect Smart and HDFC Life Click 2 Protect Super are among the best for ₹1 crore coverage due to low premiums and strong rider options.

3. What are the LIC term plan benefits in 2025?

LIC offers strong brand trust, high CSR, and competitive premiums. Their Tech Term Plan is fully online with optional add-ons.

4. Who is eligible for term insurance in India?

Most providers cover individuals between 18 and 65 years, subject to medical underwriting. You’ll need ID, address proof, income documents, and sometimes a medical check-up.

5. How can I compare term insurance plans in India?

Use IRDAI’s approved insurer list, third-party comparison websites, or consult certified financial advisors. Always compare CSR, sum assured, riders, and premium before buying.

6. Are there term insurance tax benefits under 80C in 2025?

Yes, premiums paid are deductible under Section 80C up to ₹1.5 lakh per year. The death benefit is tax-free under Section 10(10D).

7. Can NRIs buy term insurance in India?

Yes, many insurers like ICICI Prudential and HDFC Life offer term plans for NRIs. Online KYC and medicals can often be arranged abroad.

🏁 Final Thoughts: Choose the Best Term Plan in India Wisely

When it comes to life insurance, term plans offer maximum protection at minimal cost. The best term plan in India isn’t always the one with the lowest premium—it’s the one that gives your family real peace of mind.

Take time to compare, use online tools, read IRDAI data, and pick a policy that fits your life stage, health, and financial goals.

Because when it comes to protecting your loved ones, there’s no room for compromise.