top 5 Term Insurance Plans in India 2025: The purchase of term insurance proves to be among the best monetary choices available for securing your family’s future. Selecting the most appropriate term plan becomes challenging due to numerous choices in the Indian market.
Don’t worry — we’ve got your back.
The following article provides all crucial information needed for decision-making prior to 2025 term insurance acquisitions. The article presents the Top 5 Term Insurance Plans in India selected based on claim settlement ratio and affordability and benefits and customer reviews.
This article guides you in making the decision which directly ensures protection for your loved ones.
What is Term Insurance?
The term insurance plan provides an insurance coverage duration of a selected time frame which can extend from 10 to 20 or 30 years. Throughout this insurance term the death of the policyholder will result in a large settlement to be received by the designated nominee.
The best part? Insurance coverage under Term insurance plans proves both affordable and provides extensive coverage at affordable premium costs.
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Non-smoking individuals aged 30 can obtain ₹1 crore worth of insurance protection through plans that cost less than ₹500 per month.
Why Do You Need Term Insurance?
Here’s why buying a term plan in 2025 is a no-brainer:
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✅ Financial Protection: It ensures your family’s lifestyle and goals are not compromised in your absence.
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✅ Affordable Premiums: One of the cheapest forms of life insurance.
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✅ Tax Benefits: Get deductions under Section 80C and Section 10(10D).
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✅ Peace of Mind: You can sleep well knowing your family is protected.
Key Features to Consider Before Buying a Term Plan in 2025
Before you hit that “Buy Now” button, keep these things in mind:
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Claim Settlement Ratio (CSR): Choose insurers with CSR above 95%.
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Premium Amount: Compare quotes, but don’t compromise on coverage.
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Add-On Riders: Go for critical illness, accidental death, and waiver of premium riders.
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Policy Term: Ideally, the policy should cover you till at least age 65.
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Premium Payment Options: Choose annual, monthly, or single-pay based on convenience.
Top 5 Term Insurance Plans in India (2025)
Here are the best and most trusted term insurance plans in India this year:
1. LIC Tech Term Plan 2.0
Why it stands out: Backed by LIC’s unmatched trust, this online term plan is pure protection with no frills.
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High claim settlement ratio (98.5% in 2024)
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Flexible policy terms up to 40 years
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Lower premium for non-smokers and women
Premium (Approx): ₹8,000/year for ₹1 crore sum assured (30-year-old, non-smoker)
2. HDFC Life Click 2 Protect Super
Why it stands out: A flexible plan with smart options and add-ons tailored to your needs.
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Return of premium option available
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360-degree protection with rider options
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Enhanced life stage cover without medicals
Premium (Approx): ₹7,800/year for ₹1 crore (non-smoker, 30 years)
3. Max Life Smart Secure Plus Plan
Why it stands out: Loaded with features and a top-rated claim settlement ratio (99.34%).
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Option to choose between Life Cover and Increasing Cover
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Terminal illness benefit
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Option to get income payout instead of lump sum
Premium (Approx): ₹7,500/year for ₹1 crore cover (30-year-old, non-smoker)
4. Tata AIA Sampoorna Raksha Supreme
Why it stands out: One of the most comprehensive term plans with flexible payout and coverage options.
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Life stage and rider benefits
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Monthly income options for nominees
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High CSR of 99.01%
Premium (Approx): ₹7,300/year for ₹1 crore sum assured
5. ICICI Pru iProtect Smart
Why it stands out: Covers death, disease, and disability in a single plan.
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In-built critical illness cover
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Covers 34 serious illnesses
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Affordable premiums with multiple payout options
Premium (Approx): ₹8,200/year for ₹1 crore cover (non-smoker)
How to Choose the Right Term Plan for You
Still confused? Here’s a quick checklist to help you pick the right plan:
| Factor | What to Look For |
|---|---|
| Age | Buy early to lock in lower premiums |
| Family Needs | Estimate how much cover they’ll need |
| Policy Term | Choose a policy that covers your earning years |
| Riders | Add relevant protection based on your lifestyle |
| Insurer Reputation | Choose companies with high claim settlement |
Common Mistakes to Avoid
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❌ Underinsuring yourself – ₹50 lakh might not be enough in the long run.
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❌ Delaying Purchase – Premiums go up with age.
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❌ Skipping Medicals – Always go for full disclosure to avoid claim rejection.
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❌ Ignoring Riders – Add-ons can be lifesavers.
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❌ Buying Without Comparison – Use online tools to compare and save money.
Term Insurance in 2025 – What’s New?
The Indian insurance market has evolved, and here’s what’s trending:
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📱 Online-only plans with instant policy issuance
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👩⚕️ AI-based underwriting reducing the need for medicals
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📈 Dynamic cover that increases with your income
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💼 Custom plans for salaried professionals and entrepreneurs
Final Thoughts
The act of purchasing term insurance provides financial protection for your family in addition to fulfilling your financial goals. The top 2025 term plans in India provide three fundamental benefits which include affordability and flexible options and trusted protection.
The process begins with selecting an ideal product through searching for the right options along with holding a valid insurance policy.
FAQs About Term Insurance Plans
Q1. Which is the best term insurance in India 2025?
A: LIC Tech Term, HDFC Life Click 2 Protect Super, and Max Life Smart Secure Plus are among the top.
Q2. How much term insurance should I take?
A: At least 10-15 times your annual income is recommended.
Q3. Can I buy term insurance online?
A: Yes! Most insurers now offer 100% digital journeys with instant policy issuance.
Q4. Is medical test compulsory for term insurance?
A: Not always. Some online plans waive off medicals for healthy individuals.
Q5. Can I get tax benefits?
A: Yes, under Section 80C and Section 10(10D) of the Income Tax Act.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.