It covers a fixed premium over a certain term for an assured sum that is paid to the beneficiary in case of their demise during the insurance term. People tend to weigh in on options to find the best term plan that fits their budget while maintaining decent coverage. Others advocate the most rewarding plan, which offers a return on premium, i.e., the insured gets all premiums paid back if he survives the term.
In this post, we will examine the three most popular term insurance plans in India, which offer the highest coverage for the lowest premium, and discuss what distinguishes them from other options.
People often look for the best term plan to protect their family. But what makes a term policy so special compared to other saving options? One of the most important factors is that it has no investment component. This means you are not paying extra for wealth-building. It’s purely about giving your family a safety net if you aren’t there. That often translates into lower premiums for higher coverage compared to other investment products. Terms can range from five years to as long as 50 years. Premiums usually remain the same throughout, which is great for long-term planning.
Many term plans also come with a possibility for riders, like an accidental death benefit or waiver of premium if you’re diagnosed with certain illnesses. Some allow a return of premium option, often called TROP (Term Return of Premium), which means that if you survive the policy term, you get back all or most of the premiums paid, excluding taxes and rider charges. This is especially appealing to those who want the best term plan with return of premium since it combines protection with some money-back component.
The following table provides an overview of the top 3 term insurance plans in India for 2025. These are known for offering high coverage at relatively low premiums, though the exact cost can vary based on factors like age, health conditions, and the sum assured. Look through the table to get a basic idea of what each plan offers.
|
Insurance Provider |
Plan Name |
Entry Age |
Maximum Maturity Age |
Sum Assured |
|
Axis Max Life Insurance Company Limited |
Max Life Smart Total Elite Protection |
18-65 yrs |
85 yrs |
Rs. 2 Crore- No limit |
|
Aditya Birla Sun Life Insurance Company Limited |
ABSLI Income Suraksha Plan |
21-55 yrs |
70 yrs |
Rs. 25 Lacs - Rs. 25 Cr |
|
Aviva Life Insurance Company India Limited |
Aviva Signature 3D Term Plan |
18-65 yrs |
80 yrs |
Rs. 5 Lacs - No Limit |
Each plan has its own unique features. Some have certain advantages with optional riders, while others have been basically recognised for their quick claim settlements. You will have to look closely at other factors too, such as whether the plan pays the sum assured all at once or periodically over a month, to know which one suits your family best.
Max Life Smart Total Elite Protection – Best Overall Coverage with Customisation
Offers broad coverage options, including a sum assured above Rs. 2 crore, plus features like terminal illness cover. You can customise the payout structure into a lump sum, monthly income, or a combination. It also highlights a high claim settlement ratio of around 99.65%.
Aditya Birla Sun Life Income Suraksha Plan – Best for Stable Income Replacement
Designed to provide regular income to the nominee in case of the policyholder’s death. This stable income approach helps families manage monthly expenses without handling a large lump sum all at once.
Aviva Signature 3D Term Plan – Best for Critical Illness and Disability Cover
Emphasises broad coverage with no stated upper limit on the sum assured. It includes benefits for a variety of critical illnesses, disabilities, and other conditions. Policyholders can choose from different payout styles.
Now that we’ve gone through the top contenders, how do you pick the one that works best for you? Consider the following -
Each policy we highlighted can be considered the best term plan for a particular group of people. Axis Max Life’s product stands out for its broad coverage and customisable features. Aditya Birla Sun Life’s plan is great for replacing stable monthly income. Aviva’s product offers a wide range of protection, including coverage for multiple illnesses.
In any case, the “best plan” for you is the one that meets your specific needs. If you prefer the best term plan with return of premium, double-check that your chosen insurer has that option or a similar variant. If you have big expenses on the horizon, like a home loan or sending your child abroad for university, a high sum assured is wise.
Term insurance doesn’t have to be confusing. The key is to figure out how much coverage you need, what budget you can handle, and which insurer you trust. With that in place, you’ll have a policy that safeguards your family’s future in a cost-effective way.
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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
