When it comes to securing your family’s future, term insurance is one of the most affordable and effective tools available. But with dozens of providers in the market, how do you know which plans are trustworthy? That’s where IRDA approved term plans step in.
In this guide, we’ll break down what IRDA approval means, why it matters, and how to choose the best IRDA approved term plans in India. Whether you’re buying life insurance for the first time or comparing providers, this article will give you clarity, confidence, and control over your decision.
What Are IRDA Approved Term Plans?
IRDA stands for the Insurance Regulatory and Development Authority of India—India’s apex body that governs the insurance industry.
A term plan approved by IRDA means it has been thoroughly vetted to meet strict regulatory standards. These plans are not only legally compliant but are also designed to protect policyholders’ interests.
🔎 In short:
✅ The plan is regulated by the life insurance regulatory body in India
✅ Offers full transparency on premiums, terms, and benefits
✅ Ensures the insurance company has met financial solvency norms
Why IRDA Approval Matters in Term Insurance
Choosing an IRDA-approved plan isn’t just about ticking a box—it’s about choosing security over risk.
Here’s why IRDA approval is crucial:
✅ Regulated Benefits
IRDA mandates clear guidelines for what benefits must be offered. Whether it’s accidental death cover, critical illness, or return of premium, you can trust the structure.
✅ Consumer Grievance Redressal
Every IRDAI approved term policy must have a built-in grievance redressal system, so you’re not left alone when you need help.
✅ Transparency
From disclosing commissions to offering free-look periods, IRDA ensures you’re not sold a misleading product.
✅ Claim Settlement Oversight
IRDA monitors claim settlement ratios, helping customers compare IRDA approved term insurance providers with real data.
IRDA Approved Life Insurance Companies in India (2025)
IRDAI regularly updates its list of authorized insurers. As of 2025, here are top IRDA approved insurance providers offering term plans:
| Insurer Name | Claim Settlement Ratio (2023-24) | Popular Term Plan |
|---|---|---|
| LIC of India | 98.62% | LIC Tech Term Plan |
| HDFC Life Insurance | 99.39% | Click 2 Protect Super |
| ICICI Prudential Life Insurance | 98.69% | iProtect Smart |
| Max Life Insurance | 99.51% | Smart Secure Plus |
| SBI Life Insurance | 97.76% | eShield Next |
| Tata AIA Life Insurance | 99.01% | Sampoorna Raksha Supreme |
| Bajaj Allianz Life | 99.04% | Smart Protect Goal |
These companies are all IRDAI listed term insurance companies, meaning their plans are authorized under the IRDA norms for term insurance.
Features of Term Insurance Plans Approved by IRDAI
Not all term plans are equal. Here’s what makes an IRDAI approved term policy a great option:
1. Flexible Coverage Options
You can choose a basic life cover or add-ons like:
Accidental Death Benefit
Waiver of Premium
Terminal Illness Rider
2. Customizable Premium Payments
Choose monthly, quarterly, or yearly payments—or even a one-time premium.
3. Tax Benefits
Under Section 80C and Section 10(10D), premiums and death benefits are tax-free.
4. Policy Transparency
Each IRDA certified insurance plan comes with a detailed policy document. You’re never left in the dark.
5. Free-Look Period
Every IRDA-approved policy must offer at least a 15-day free-look period to return the policy with a full refund (minus admin charges).
How to Compare IRDA Approved Term Insurance Plans
Not sure how to find the best one for your needs? Here’s a simple checklist to compare IRDA approved term insurance:
✅ Coverage Amount
Choose a sum assured that covers your current income × 10–15 years.
✅ Policy Tenure
If you’re 30, go for a term up to age 60–70 to maximize life cover.
✅ Riders & Add-ons
Look for options like critical illness or income benefit riders.
✅ Premium Cost
Use online tools to compare term plan premium in India across providers. Ensure affordability without compromising on coverage.
✅ Claim Settlement Ratio
Higher CSR = better reliability. Anything above 97% is excellent.
Eligibility Criteria for IRDAI Approved Term Policies
While each insurer may differ slightly, the general term insurance eligibility criteria under IRDAI guidelines include:
Age: 18 to 65 years
Income Proof: Salary slips, IT returns, or business documents
KYC: PAN card, Aadhaar card, Address proof
Health Declarations: Some plans require medical check-ups for higher coverage
Real-Life Example: Why IRDA Term Approval Matters
Ravi, a 35-year-old marketing manager, purchased a cheap online term plan from an unregistered insurer that promised low premiums. Sadly, after his unexpected passing, his claim was rejected due to lack of documentation and poor underwriting.
Compare that to Anil, a 33-year-old who purchased an IRDA approved term plan from HDFC Life. His wife received the entire ₹1 crore claim within 14 days, thanks to IRDA-mandated timelines and oversight.
👉 Moral of the story: Don’t fall for the cheapest—buy the safest.
Top 5 Best IRDA Approved Term Plans in India (2025)
Based on benefits, affordability, and customer reviews, here are 2025’s best IRDA approved term plans:
LIC Tech Term Plan – Trusted, extensive coverage
HDFC Click 2 Protect Super – Multiple plan options
ICICI iProtect Smart – Includes terminal illness
Max Life Smart Secure Plus – Covers accidental death and disability
Tata AIA Sampoorna Raksha Supreme – Flexibility & high claim settlement
IRDA Norms for Term Insurance: What You Should Know
IRDA mandates clear benefit disclosure
Policyholders must receive a yearly update
Insurers must maintain a solvency ratio of 1.5
Grievance redressal must be resolved in 15 days
These term insurance policy guidelines are in place to protect your interests.
FAQs: IRDA Approved Term Insurance in India (2025)
1. What is IRDA, and why is it important in term insurance?
IRDA is India’s insurance regulator. It ensures all policies follow standard guidelines and protect consumers. Choosing IRDA approved term plans ensures you’re buying a trustworthy product.
2. How can I check if my insurer is IRDA approved?
Visit the official IRDAI website and check the list of IRDA listed term insurance companies.
3. Are IRDAI approved term policies more expensive?
Not necessarily. In fact, because these plans are regulated, you often get better value for money compared to non-registered schemes.
4. Do IRDA term plans come with tax benefits?
Yes, you get deductions under Section 80C (for premiums paid) and Section 10(10D) (for death benefits).
5. Can NRIs buy IRDA certified insurance plans?
Yes, many IRDA approved companies offer NRI-friendly term insurance. Documentation and payment processes are slightly different but fully allowed.
6. How does IRDA regulate the claim settlement process?
IRDA requires insurers to process claims within 30 days of document submission. Delays beyond this may result in penalties.
7. Which is better: online or offline IRDA approved term plans?
Online plans are cheaper due to low overheads but offer the same IRDA-compliant protection. Just make sure the term plan is IRDAI approved.
Conclusion: Why You Should Always Choose IRDA Approved Term Plans
In 2025, as insurance scams and unregulated providers rise, sticking with IRDA approved term plans is no longer optional—it’s essential.
These plans offer:
✅ Regulatory protection
✅ Guaranteed claims
✅ Tax benefits
✅ Affordable premiums
Whether you’re a salaried professional, self-employed, or a first-time insurance buyer, a term plan approved by the Insurance Regulatory and Development Authority of India gives you the peace of mind you deserve.
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