India's best life insurance plans
Mutual Fund Insight|March 2023
Unsung heroes rarely get the attention they deserve. They do their job better, are the lifeblood of any ecosystem, but remain criminally hidden in plain sight. The good-old life term plans are one such example. If someone received secondary treatment, it was them. But that's all. about to change now.
- Ashish Menon, Omkar Vasudev Bhat, Sahiba Kaur Arora & Ravi Banagere. Inputs from Maushami Singh.
India's best life insurance plans

Thanks to this year's Union Budget, the government will impose a tax on proceeds of life-insurance plans with a premium value of over ₹5 lakh. With one blow, the government has broken the back of the insurance industry's popular (though inferior) vehicle - moneyback/ endowment plans. 

Unit-linked insurance plans (ULIPS) the third wheel of the life-insurance industry escaped the hammer this time, as the provision to tax returns from ULIPS with a premium of more than ₹2.5 lakh has already been introduced in 2021. ULIPS are structurally flawed and offer poor returns to investors. Bluntly speaking, they are useless. That's another reason why term plans should be your go-to option. Although poorly promoted by insurers and distributors due to slim commissions, their merits far outweigh those of ULIPS and endowment plans. Term plans help you get a large cover at a low cost. Thankfully, the turf war is on the verge of getting settled and the cream of term plans is finally rising to the top.

How we decided on the best

Since there are 24 life insurers, we thought we would make your life easy by distilling the best term plans for you. We restricted our research to only pure term plans which offer sufficient flexibility in (a) sum assured and (b) policy tenure, and (c) which provided the regular premium-payment option. We also ensured the insurance company had an adequate track record. Finally, to ensure their premiums can be compared easily, we limited ourselves to only those insurers that offer online term plans.

A total of 19 plans across 15 insurers made the cut. We eliminated them based on the first and second criteria below and ranked them on the basis of the third:

1. Claim-settlement ratio and benefit amount were important metrics to decide an insurer's track record of honouring claims in a timely fashion.

この蚘事は Mutual Fund Insight の March 2023 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Mutual Fund Insight の March 2023 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

MUTUAL FUND INSIGHTのその他の蚘事すべお衚瀺
International Mutual Funds Find Flavour But Lose Favour
Mutual Fund Insight

International Mutual Funds Find Flavour But Lose Favour

Despite stellar performance, these funds are cold-shouldered by investors

time-read
3 分  |
September 2023
The Dose Makes The Poison
Mutual Fund Insight

The Dose Makes The Poison

Are your fund investments diversified? Or are they diworsified? Here’s the solution

time-read
5 分  |
September 2023
'Since Sahi Hai drive launch, industry has grown over twofold'
Mutual Fund Insight

'Since Sahi Hai drive launch, industry has grown over twofold'

The AMC’s marketing and corporate communication head also lauds MFCentral and MF Utility

time-read
3 分  |
September 2023
'Earlier, not many knew of mutual funds; now SIP is a verb'
Mutual Fund Insight

'Earlier, not many knew of mutual funds; now SIP is a verb'

The CMO also explains how 4G, fintechs have elevated mutual funds’ reach

time-read
4 分  |
September 2023
'MFCentral is the most impressive of online platforms'
Mutual Fund Insight

'MFCentral is the most impressive of online platforms'

Shah says though passive funds are growing, there’s a long road ahead

time-read
3 分  |
September 2023
'Fintechs are driving mass financial inclusion'
Mutual Fund Insight

'Fintechs are driving mass financial inclusion'

Shah also lauds the pace at which distributors have embraced technology

time-read
2 分  |
September 2023
'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'
Mutual Fund Insight

'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'

Interaction with Edelweiss’s senior VP and head of products and marketing

time-read
3 分  |
September 2023
'More distributors will come to MFCentral, MF Utility'
Mutual Fund Insight

'More distributors will come to MFCentral, MF Utility'

Goyal feels they can grow their business five times, 10 times with tech

time-read
3 分  |
September 2023
'The size of passive funds has grown 36 per cent in a year'
Mutual Fund Insight

'The size of passive funds has grown 36 per cent in a year'

Parija explains how mutual funds have gained traction

time-read
5 分  |
September 2023
Tomorrow, and tomorrow, and tomorrow...
Mutual Fund Insight

Tomorrow, and tomorrow, and tomorrow...

There are a total of about 1.1 lakh crores of rupees invested in India’s mutual funds and the number of investors is now about 12 crore

time-read
4 分  |
September 2023