Which is the Best Term Insurance Plan in 2021: LIC or ICICI?

When it comes to safeguarding your family's future, choosing the right term insurance plan is crucial. This decision should be based on multiple factors, including the stability of the insurance company, your personal financial situation, and your specific needs. In this article, we will compare two leading providers in India: LIC (Life Insurance Corporation of India) and ICICI.

Necessity and Advancements in Term Insurance

Term insurance is a vital tool for managing unforeseen expenses and ensuring your family's financial security when the unexpected happens. With advancements in digital technology, term insurance can now be accessed online, reducing intermediaries and transaction costs. It is essential to ensure that the term insurance plan you choose offers the best interest rates and does not have hidden terms and conditions.

Choosing the Right Term Insurance Plan

Selecting the right term insurance plan is not a one-size-fits-all decision. It requires a comprehensive evaluation of various factors, including:

Your age Your gender Your self and family health history Your lifestyle Your profession

These factors can significantly influence the premium rate and the coverage amount. Your financial commitments and requirements should also be considered to ensure the plan aligns with your personal circumstances.

LIC (Life Insurance Corporation of India)

LIC is the oldest life insurance company in India, established in 1956. The company has a strong track record of delivering comprehensive financial security to its policyholders. As of March 2020, LIC had achieved a record high of 2.19 crore policies. Below are some key highlights of LIC's performance:

Annual premium: Rs. 178276 crores (2019-2020) Market share: 66% Claim settlement ratio: 96.69% (2019-2020) Solvency ratio: 1.55 No. of branches: 2048

LIC Jeevan Saral is one of the standout term insurance plans offered by LIC. Some of its key features are as follows:

Flexibility in premium payment and sum assured Partial surrender from the 4th year onwards Flexible term for premium payment Maturity benefit: Maturity sum assured plus loyalty additions if any Partial surrender after the 3rd policy year Extended risk cover for one year after 3 years of premium payment Optional higher cover through Term Rider and Accidental Death and Disability Benefit Freedom to surrender at any time without any surrender penalty or loss after 5 years Loyalty Addition from the 10th policy year onwards

ICICI (ICICI Prudential Life Insurance)

ICICI is another prominent player in the Indian insurance market. They offer a range of term insurance plans that can cater to different needs and preferences. Here are some of the term insurance plans provided by ICICI:

ICICI Pru iProtect Smart – Suitable for those looking for comprehensive coverage at an affordable cost. ICICI Pru Saral Jeevan Bima – Simple features that are ideal for first-time term insurance buyers. ICICI Pru iCare II – Offers a lump sum death benefit to protect family members. ICICI Pru Precious Life – For individuals with existing health issues or undergoing critical surgeries. ICICI Pru Life Raksha – Pure term insurance with a lump sum death benefit. ICICI Pru POS iProtect Smart – Ideal for customers who seek flexibility in their insurance plans.

These plans offer a range of features, from affordable premiums to comprehensive coverage, making them suitable for different life stages and needs.

Conclusion

The best term insurance plan for you depends on your unique circumstances, financial goals, and requirements. Both LIC and ICICI offer excellent term insurance plans, with unique features that cater to different needs. It is important to carefully review and compare the features, premiums, and benefits of the plans offered by these companies to make the most informed decision.