10 Best Term Insurance Plans in India for 2025 [Latest List]

10 Best Term Insurance Plans in India for 2025

Why Term Insurance? 

Life doesn’t come with alerts or warning bells. Most of the time, it’s major life events that nudge us into thinking seriously about our financial future—whether it’s welcoming a new family member, taking out a home loan, or taking care of aging parents. These transitions highlight the importance of protecting what matters most.

That’s where term insurance comes into play. It’s a smart, cost-effective financial product designed to offer security during life’s unpredictable turns. Despite its advantages, term insurance still accounts for only about 5% of overall insurance policy sales in India. Many individuals either overlook its true potential or hesitate due to emotional or financial concerns. But if you’re here, you’re already on the right track.

Choosing the right term insurance plan isn’t just about going for the highest coverage. It’s about selecting a plan that aligns with your current lifestyle, ongoing financial commitments, and future aspirations. If you are the primary earner in your family, this decision becomes even more critical, ensuring your loved ones stay financially secure even in your absence.

In this blog, we’ll guide you through the key benefits, essential features, and reasons to invest in term insurance, followed by our curated list of the 10 best term insurance plans in India for 2025. Read on to make an informed decision that could safeguard your family’s future.

What Is Term Insurance?

Term insurance is one of the simplest and most effective forms of life insurance. It offers financial protection for a fixed duration and can be renewed based on your needs. In case the insured individual passes away during the policy term, the nominated family member receives a lump sum payout known as the death benefit.

Unlike other types of life insurance, term plans do not provide any maturity benefit— meaning if the policyholder survives the term, there’s no payout at the end. However, this is exactly what makes it so affordable and focused—you’re paying only for pure protection.

Term insurance stands out as the most economical way to safeguard your family’s financial future. It is particularly crucial for primary income earners who have dependents relying on them for daily living, education, or future goals.

Even though it doesn’t offer returns like investment-based plans, term insurance is a powerful safety net—and should be a core component of every well-rounded financial plan.

In the next section, let’s look at the key benefits of term insurance and understand why it’s gaining popularity among today’s responsible earners.

10 Best Term Insurance Plans in India

Plan	USP	Provider Claim Settlement Ratio (%)	Basic Monthly Premium Cost (Rs.)
Axis Max Smart Term Plan Plus	Best claim settlement, competitive premium cost	99.79	823
Tata AIA Sampoorna Raksha Promise	Instant payout worth Rs. 3 lakh on claim intimation	99.13	608
ICICI Prudential iProtect Smart	Smart exit benefit (100% or 200% premium return on early exit)	99.17	598
HDFC Life Click 2 Protect Super	Term return of premium and whole life insurance plan variants are available	99.50	798
Bajaj Allianz Smart Protect Goal	Up to 55 critical illnesses covered	99.23	570
Tata AIA Maha Raksha Supreme Select	Can be availed by NRIs as well	99.13	768
Future Generali Care Plus	Plan customisation and flexible premium payment options	96.08	630
Bharti AXA Life Flexi Term	Hospicash rider and premium waiver rider can be availed of	99.05	751
Kotak e-Term Insurance	Flexible payout options; special exit at 60	98.25	654
SBI Life eShield Next	Pocket-friendly premium; seamless claims assistance	98.99	709

Note: The premium amount, coverage, and benefits of term insurance plans can vary based on individual factors such as age, gender, occupation, and health conditions. For the most accurate and personalized details, it’s recommended to reach out to the insurer directly through their official website or customer support helpline.

10 Best Term Insurance Plans in India

1. Axis Max Smart Term Plan Plus

The Axis Max Smart Term Plan Plus is a pure-term life insurance policy — non-linked and non-participating — offered through a strategic collaboration between Axis Bank and Max Life Insurance. This plan is designed purely for protection, providing a death benefit, with optional add-ons for enhanced coverage.

Key Features

• Zero Cost Exit Option: This unique feature allows policyholders to get their premiums refunded if they choose to exit the plan during a pre-defined period. It offers greater flexibility for those who may want to discontinue coverage later.
• Critical Illness Cover: The plan covers 64 critical illnesses, with a fast-track payout process. Once verified, the benefit is disbursed within 14 days, offering financial support when it’s needed most.
• High Claim Settlement Track Record: Max Life Insurance boasts a claim settlement ratio (CSR) of 99.79% and an amount settlement ratio of 95.5%, significantly above the industry average — a strong indicator of trust and reliability

Who Should Consider This Plan?

The Axis Max Smart Term Plan Plus is ideal for individuals at the beginning of their financial journey, especially those with irregular income or freelance work. It’s flexible and can be tailored as your life stage evolves. The joint life option also makes it a great fit for young couples or new families looking to secure their financial future together.

2. Tata AIA Sampoorna Raksha Promise

The Tata AIA Sampoorna Raksha Promise is a comprehensive term life insurance plan offered by Tata AIA Life Insurance — a trusted joint venture between Tata Sons and AIA Group, one of Asia’s leading life insurers. Designed to suit individuals across various income levels, this plan offers strong protection at a competitive premium.

Key Features

• Top-Up Life Cover Option: This feature lets policyholders increase their sum assured over time, offering greater coverage as life responsibilities grow — like marriage, children, or home loans.
• Critical Illness Benefit: Covers 40 critical illnesses, with a 90-day waiting period, which is relatively shorter than many competing plans. Claims are processed quickly, with benefits typically paid out within 30 days of confirmation.
• Premium Waiver Benefit: In case of permanent disability or a critical illness diagnosis, the remaining premiums are waived, ensuring the policy remains active even if you’re unable to pay due to health-related challenges.

Who Should Consider This Plan?

The Sampoorna Raksha Promise is ideal for individuals seeking affordable yet reliable life coverage, especially those at the beginning of their career or with budget constraints. While it doesn’t automatically adjust for inflation, policyholders can enhance their protection with optional riders, making it a flexible choice for evolving needs.

3. ICICI Prudential iProtect Smart

The iProtect Smart plan by ICICI Prudential Life Insurance is a well-rounded term insurance product known for its high claim settlement reliability and flexible features. With attractive discounts for salaried professionals and robust critical illness protection, this plan stands out among the top choices for 2025.

Key Features

• Strong Claim Settlement Record: In 2024, ICICI Prudential achieved a claim settlement ratio of 99.17% and a claim amount settlement ratio of 91.16%, both exceeding industry averages — offering peace of mind to policyholders and their families.

• Zero-Cost Exit Benefit: Policyholders can exit the plan during a defined period and receive a full refund of premiums paid. This provides financial flexibility if the need for coverage changes over time.

• Critical and Terminal Illness Protection: Covers 34 critical illnesses and guarantees 100% payout of the sum assured upon the diagnosis of a terminal illness, offering vital financial support during medical emergencies.

Who Should Consider This Plan?

The iProtect Smart plan is a strong choice for salaried professionals, especially women, thanks to its special premium discounts and customisation options. It can also be bought under the MWP Act (Married Women’s Protection Act), ensuring that only the wife or children can claim the death benefit — safeguarding your family’s financial rights.

However, since the plan does not offer benefits for permanent disability, it may not be ideal for those working in high-risk jobs or physical labor-intensive fields.

4. HDFC Life Click 2 Protect Super

HDFC Life Click 2 Protect Super is a pure term insurance plan — non-linked and non-participating — offering a wide range of customizable options. Backed by the trusted HDFC brand and a consistent performance record, this plan provides flexible protection to meet diverse financial needs. While the premiums may be slightly higher, the benefits and customisation make it a worthy contender.

Key Features

• Inflation-Linked Coverage: Policyholders can increase their sum assured over time to match inflation or opt for life-stage-based top-ups as responsibilities grow. There’s also an option to extend the policy term if your financial needs evolve.

• Robust Critical Illness Protection: Covers 60 critical illnesses, with claim processing typically completed within 15 days of verification. The plan has a short waiting period of just 90 days for critical illness claims.

• Reliable Claim Settlement: HDFC Life posted a claim settlement ratio of 99.5% in 2024, outperforming the industry average and reaffirming the insurer’s commitment to policyholders.

Who Should Consider This Plan?

Click 2 Protect Super is an excellent choice for individuals with outstanding loans, multiple dependents, or those seeking long-term protection for their family, including spouse and parents. The limited pay option is a great advantage, allowing you to finish premium payments in a shorter period while enjoying extended coverage.

Despite the slightly higher premium, the plan’s flexibility and depth of coverage make it a strong pick for financially responsible individuals planning for the long haul.

5. Bajaj Allianz Smart Protect Goal

The Smart Protect Goal term plan by Bajaj Allianz Life Insurance offers an affordable yet comprehensive life cover. While Bajaj Allianz may not be the most widely recognized brand in life insurance, it has steadily built a strong reputation through excellent claim performance and customer service — making this plan a smart, budget-friendly option.

Key Features

• Strong Claim & Solvency Ratios: With a claim settlement ratio of 99.23% and an impressive solvency ratio of 432%, Bajaj Allianz demonstrates strong financial stability and reliability. The insurer has already secured the lives of over 3.97 crore individuals.

• Critical Illness Cover: Covers 55 critical illnesses with a payout processed within 14 days of claim verification. The benefit is paid on top of the base sum assured, though the plan has a 180-day waiting period for critical illness claims.

• Inflation-Proof Cover: The plan allows policyholders to automatically increase life cover over time, helping you keep pace with inflation and changing financial needs.

Who Should Consider This Plan?

Smart Protect Goal is ideal for individuals looking for a basic, cost-effective term plan with the flexibility to add popular riders. It suits those who want value-for-money coverage and a solid brand track record. However, it’s worth noting that the plan does not include premium waivers in case of critical illness or accidental disability — a factor to consider if you’re looking for full-spectrum protection.

6. Tata AIA Maha Raksha Supreme Select

Maha Raksha Supreme Select is a premium term insurance offering from Tata AIA Life Insurance, packed with a wide range of customizable features. While it comes at a slightly higher cost, it’s one of the most flexible and benefit-rich plans on the market. Plus, women enjoy an additional 15% discount on premiums, making it an attractive choice for female policyholders.

Key Features

• FlexiPay Benefit: Policyholders can defer premium payments for up to 12 months during times of financial difficulty — a rare and highly supportive feature.

• Premium Waiver Option: In case of critical illness or accidental permanent disability, future premiums are waived while the coverage continues uninterrupted.

• Highly Customizable Coverage: Includes top-up options, life-stage-based increases, and even the ability to extend the policy term beyond maturity, allowing you to align the plan with your evolving life goals.

• Comprehensive Add-ons: Includes riders for accidental death and critical illness, similar to Tata AIA’s Sampoorna Raksha Promise, but with greater flexibility and more plan variants.

Who Should Consider This Plan?

Tata AIA Maha Raksha Supreme Select is perfect for individuals seeking a feature-rich term insurance plan with long-term flexibility. It is especially suitable for:

• Those expecting changes in financial responsibilities across life stages

• Policyholders who want the option to pause or extend coverage

• Women, due to the added premium discount

If you’re looking for complete control and adaptability in your life insurance plan and are comfortable with a slightly higher premium, this policy is a top-tier choice.

7. Future Generali Care Plus

Future Generali Care Plus is a straightforward and budget-friendly term insurance plan offered by Future Generali India Life Insurance, a joint venture between the Future Group and Generali Netherlands N.V. While it may not offer as many advanced features as some competitors, it stands out for its flexibility, user-friendly experience, and strong customer support.

Key Features

• Flexible Payout Options: Policyholders can choose how the nominee receives the sum assured — as a lump sum, in monthly instalments, or a combination of both.

• Policy Term & Payment Customisation: Offers the freedom to select your policy term and premium payment duration, allowing better alignment with your financial goals.

• Supportive Terms: Includes a free-look period, a 30-day grace period, and a revival option in case your policy lapses.

• Two Plan Variants:

Basic Option: Death benefit only.

Plus Option: Includes accidental death benefit for added protection.

Who Should Consider This Plan?

Care Plus is best suited for individuals looking for a simple, low-cost term insurance plan with the essential benefits and excellent customer support. If you are:

• Just starting your financial planning journey

• Looking for basic death cover and tax benefits

• Comfortable without add-ons like critical illness or premium waiver

Then this plan can be a great fit. However, if you have multiple financial responsibilities or dependents, and need more comprehensive protection, you may want to explore more feature-rich options.

8. Bharti AXA Life Flexi Term Pro

The Bharti AXA Life Flexi Term Pro plan is a versatile and highly customizable term insurance policy designed to adapt to your evolving needs. With its wide range of riders, affordable pricing, and practical benefits, it checks all the key boxes for a dependable term plan.

Key Features

• Hospi Cash Rider: Get coverage for hospitalization costs for up to 40 days, either as a daily payout or lump sum. A great add-on for managing unforeseen medical expenses.

• All-in-One Protection: The plan includes an optional Complete Shielder rider, which provides cover for:

• Accidental Death
• Accidental Total & Permanent Disability
• Accidental Permanent & Partial Disability
• Critical Illness (Standard and Comprehensive)
• Cancer Care

Flexible Terms: Offers life stage benefits, allowing you to increase coverage as your responsibilities grow. You also get to choose the premium payment frequency and policy term that best suits your needs.

Who Should Consider This Plan?

Bharti AXA Flexi Term Pro is ideal for individuals seeking:

• A comprehensive term plan with layered protection

• The freedom to customize riders based on lifestyle and future needs

• Balanced pricing and wide coverage

This plan works well for both new earners and those with growing families. If you’re looking for flexibility without compromising on coverage, this plan is one of the best all-rounders.