Choosing the best term insurance and health insurance plans in India is not about picking the cheapest option. It’s about balancing affordability, strong coverage, and the insurer’s ability to pay claims when your family needs it most.
With dozens of insurers and plans available, focusing on the right metrics—such as Claim Settlement Ratio (CSR), plan features, and insurer reputation—helps you make a confident, long-term decision.
Why Term Insurance and Health Insurance Are Both Essential
Term insurance protects your family’s financial future in case of your untimely death, while health insurance protects your savings from rising medical costs.
Together, they form the foundation of a strong financial safety net:
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Term insurance replaces lost income
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Health insurance manages hospital and treatment expenses
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Both offer tax benefits under the Income Tax Act, 1961
You can verify applicable tax deductions for insurance premiums under Sections 80C and 80D on the official Income Tax portal:
👉 https://www.incometax.gov.in
Ignoring either form of insurance can expose your family to serious financial risk.
How to Identify the Best Term Insurance Plan
There is no single “best” term plan for everyone. The right plan depends on your income, dependents, liabilities, and long-term goals.
Key Factors to Evaluate
When comparing term insurance plans, focus on:
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Claim Settlement Ratio (preferably above 98%)
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Affordable premium for high life cover
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Optional riders (critical illness, accidental death, waiver of premium)
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Flexibility in payout options (lump sum or monthly income)
Claim settlement data published annually by the Insurance Regulatory and Development Authority of India (IRDAI) is one of the most reliable benchmarks:
👉 https://www.irdai.gov.in
Many insurers now offer online term plans with lower premiums due to reduced distribution costs.
Popular Term Insurance Plans in India
Some widely chosen term insurance plans known for features, brand strength, and claims performance include:
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HDFC Life Click 2 Protect Plus – Flexible cover options and multiple riders
👉 https://www.hdfclife.com/term-insurance-plans -
ICICI Prudential iProtect Smart – Strong CSR and customisable benefits
👉 https://www.iciciprulife.com/term-insurance.html -
Tata AIA Sampoorna Raksha Promise – Includes return of premium option
👉 https://www.tataaia.com/life-insurance-plans/term-insurance.html -
Axis Max Life Insurance – Competitive pricing and online discounts
👉 https://www.maxlifeinsurance.com/term-insurance-plans -
SBI Life Insurance – Trusted public sector insurer
👉 https://www.sbilife.co.in
Many insurers advertise ₹1 crore term cover at monthly premiums starting from ₹400–₹600 for young, healthy individuals. These figures vary by age, health profile, and policy term and should always be verified at the time of purchase.
Term Insurance With Return of Premium: Is It Worth It?
Some buyers prefer term plans that return premiums if the policyholder survives the policy term.
For example, PNB MetLife Mera Term Plan Plus offers a return-of-premium option:
👉 https://www.pnbmetlife.com/term-insurance.html
Who Should Consider It
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Risk-averse individuals
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Those comfortable paying higher premiums
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Buyers who value guaranteed returns over pure protection
Pure term plans remain more cost-effective, but return-of-premium plans can appeal psychologically to certain buyers.
Choosing the Best Health Insurance Plan in India
Health insurance is no longer optional. Medical inflation in India is estimated at 10–14% annually, making even short hospital stays expensive.
What to Look for in a Health Plan
Key features to prioritise:
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High sum insured (₹10–20 lakh or more)
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Large cashless hospital network
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No-claim bonus benefits
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Pre- and post-hospitalisation coverage
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Lifelong renewability
You can compare network hospitals and policy features directly on insurer websites or neutral platforms like the IRDAI Health Insurance section:
👉 https://www.irdai.gov.in/health-insurance
Popular Health Insurance Plans to Consider
Some insurers known for comprehensive health coverage include:
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Future Generali Care Plus – Wide coverage and add-ons
👉 https://general.futuregenerali.in/health-insurance -
HDFC ERGO Health Insurance – Large cashless network
👉 https://www.hdfcergo.com/health-insurance -
ICICI Lombard Health Insurance – Strong digital claims process
👉 https://www.icicilombard.com/health-insurance -
Tata AIG Health Insurance – Stable insurer with broad coverage
👉 https://www.tataaig.com/health-insurance
Always compare waiting periods, exclusions, co-payment clauses, and room rent limits before finalising.
Claim Settlement Ratio: Why It Matters
Claim Settlement Ratio (CSR) reflects the percentage of claims settled by an insurer in a financial year.
Why CSR matters:
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Indicates insurer reliability
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Reflects operational efficiency
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Builds trust in long-term policies
You can check verified CSR figures in IRDAI’s annual report:
👉 https://www.irdai.gov.in/annual-report
Along with CSR, also review claim settlement turnaround time and customer grievance data.
How to Balance Affordability and Coverage
Many online plans advertise:
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₹1 crore cover at ₹20/day
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Online discounts of 10–20%
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Flexible premium payment terms
While these offers improve affordability, never compromise on coverage quality or insurer credibility to save a small amount annually.
A slightly higher premium with better features and smoother claims experience is often worth it.
Practical Tips Before Buying Insurance
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Buy term insurance early to lock lower premiums
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Avoid under-insuring to save money
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Disclose medical history honestly
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Review policies every 3–5 years
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Don’t mix insurance with investment goals
Insurance works best when it is simple, sufficient, and transparent.
Final Thoughts
The best term insurance and health insurance plans in India are those that protect your family without straining your budget. Focus on claim settlement ratios, meaningful coverage, and long-term affordability, not flashy discounts alone.
Buy early, buy adequate cover, and review your policies periodically. When chosen wisely, insurance becomes a powerful tool that delivers peace of mind and financial stability for years to come.
