To find out the Best Life Insurance Policy in India for 2018, you need to first understand what are the type of Life Insurance Policies in India and what policy offers which benefit. Some Policies are recommended for single women and some life insurance policies are for couples. To decide which is the best Life Insurance Policy in India 2018, we have taken the data for the last 2 years and cross examined with the Income Tax Provisions. Also read Best Life Insurance Companies in India 2018.
Aviva : Rank #1 Best Life Insurance Policy in India 2018
Before we get into this, first understand what is ‘Term Policy in simple words’. Under Term policy, the person keep paying low premiums for the Insurance period. In case of death, the family gets a lumpsum amount. If not, the person does not get anything.
The Entry age for Aviva i-Life Term Insurance is minimum 18 years and Maximum 55 years. The Minimum Insurance Policy Term is 10 years and the maximum period is 35 years.
Minimum Sum to be assured is Rs.25,00,000.
Important points to note:
- Aviva i-Life Term Insurance policy is available only in few selected cities and purchase can be made only through online mode.
- This is a pure protection life Insurance policy.
Therefore, Aviva i-Life occupies the first place in Best Life Insurance Policy in India 2018.
Bharti Axa Life : Rank #2 Best Life Insurance Policy in India 2018
With this life insurance policy, Income tax benefit is available on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act 1961.
This Insurance Policy offers inbuilt Family Care Benefit where on death of the policyholder and on submission of relevant documents, 1 lakh is paid within 48 hours to the nominee and the balance Sum Assured is settled later.
The Entry age for Bharti Axa Life Insurance Policy is minimum 18 years and Maximum 55 years. Minimum Sum to be assured is Rs.25,00,000.
Therefore, Bharti Axa Life takes the second place in Best Life Insurance Policy in India 2018.
HDFC : Rank #3 Best Life Insurance Policy in India 2018
Under this Insurance Policy, on death, the benefit payable depends on the cover option chosen and the Sum Assured is paid on death.
Under this HDFC Insurance Policy, there is an Extra option called ‘HDFC Click To Protect Plus’, where additional Sum Assured is paid in case of accidental death
Under this Insurance Policy, Income tax deduction on the insurance premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act 1961.
This is one of the most flexible Insurance Policies available in the Market. This makes HDFC Life to the Top 3 in Best Life Insurance Policy in India 2018.
Types of Insurance Policies
Many people assume that there is only one type of Life Insurance policy and that is Term insurance. However, there are many types of Life Insurance Policies, which are explained as below.
Endowment Life Insurance Policy
It is a plan to loot you and take care of Insurance agent. Actually they mix investment and insurance. Insurance is not free.
It is charged as usual. Investment are not transparent.
If you have taken a plan of 5 years of 10k per year. then around 7k goes as commission to the Agent.
For consecutive years 5-10% goes as commission to Agent even if you don’t have any relation with him now and pay online premium.
Unit Linked Insurance Policy (ULIP)
Life insurance company’s ULIP gives you limited life coverage with style of mutual fund investments at very high costs compare to any mutual fund scheme. In this ULIP no liquidity due to lock-in period.
Children Life Insurance Policy
The increasing education cost is causing uneasiness among parents. Therefore, it is best to invest in a good child insurance plan to give secured life to your child even in your absence.
A child life insurance plan offers a lump-sum amount to the beneficiary (i.e. child) on the death of the policyholder.
Here, the policy doesn’t end. In this case, Life Insurance Company exempts all future premiums and pays the money to the child at specified intervals as planned out by the policyholder.
Merits and Demerits of Term Life Insurance Policy
The big advantage with term insurance is that the premium is typically lower than permanent insurance. The premium stays guaranteed for a fixed amount of time, typically 10 to 30 years. If your goal is to keep your cost low for that period, then this is your product.
However, if it is possible you will need coverage passed that time, then a permanent product is more appropriate.
Odds are you will spend less money buying permanent life insurance initially, than buying term, and then purchasing another term product at renewal.
Not only that, you cannot always assume you will be insurable at a reasonable rate later in life. The big disadvantage of term is that if you need coverage after the guarantee period, you may not be able to get it.
Conclusion : Best Life Insurance Policy in India 2018
The decision of awarding the Best Life Insurance Policy in India for 2018 for above was taken on logical level and we do not have any undisclosed commercial interests in the decision.
Different experts may have different opinions on what is the Best Life Insurance Policy in India due to various sides involved in the calculation.
- 1 Aviva : Rank #1 Best Life Insurance Policy in India 2018
- 2 Bharti Axa Life : Rank #2 Best Life Insurance Policy in India 2018
- 3 HDFC : Rank #3 Best Life Insurance Policy in India 2018
- 4 Types of Insurance Policies
- 5 Conclusion : Best Life Insurance Policy in India 2018