10 Cheapest & Best Term Life Insurance Plans with the Minimum Sum Insured You Can opt in 2024


11 min read

Updated on Dec 22, 2023

Want to buy cheap term life insurance to secure your family’s financial future? Here’s a list of 10 cheapest term insurance plans with the minimum sum insured to suit your budget.

Every person has a moral responsibility towards their family, and when you’re married, this responsibility increases two-fold. With the coming in of kids, it becomes absolutely essential that you take care of their every need not just in the present but also guarantee that they would be equally comfortable in the future. This is where term insurance helps.

What is a Term Insurance Plan?

Term insurance is slightly different from other insurance products in the market. While the other insurance plans may generate some returns on premium in the future, term life insurance is exclusively meant to secure the future of your loved ones in your absence. In other words, in the unfortunate event of your death, your family’s financial needs and goals can still be achieved in the future with the help of a term life insurance policy that you purchase in your present.

In this sense it can be said that term insurance is basically a pure life insurance product, meaning that one cannot expect returns from it. However, that said, it is also worth noting here that some insurance companies might offer term insurance plans that do generate premium returns; however, these plans definitely come at a higher cost than usual.

To make term insurance affordable to everyone, there are some budget-friendly options available which serve your purpose at the best price. These are the basic term insurance products that help secure your family’s financial future without any premium returns.

Here we list out at least 10 of the cheapest term insurance plans that offer the minimum sum insured to the policyholder, but definitely serve their purpose.

Types of low-cost Term Insurance

There are 7 types of low-cost term insurance policies. They are:

  • Regular term plan – Here, the family/nominee receives only the death benefit in case of unexpected death of the policyholder. There is no bonus paid in this case even if the insured survives the plan.
  • Level term plan – Here, the sum insured remains constant and the nominee of the policy receives the death benefit after the death of the policyholder.
  • Return of premium term plan – Like in regular term plans, here also the nominee receives the death benefit in case of death of the policyholder. However, if the insured outlives the plan, they can receive the full repayment of the premium paid under the plan minus the applicable charges. Hence, this policy is costlier than the regular and level-term plan.
  • Increasing term plan – Here, the policyholder has the option to increase the sum insured at the same premium and hence this plan is also costlier than the first two term plans mentioned above.
  • Decreasing term plan – Here, the policyholder can lower the sum insured as per their present requirements. The premium remains the same throughout the policy term.
  • Convertible term plan – The policyholder can switch from one policy to another in this type of term plan. So, the policyholder can move to other lucrative plans after a few years on this policy.
  • Term plans with riders – This plan allows the insured to avail of riders like critical illness riders, accidental death riders, etc. The insured has to pay an additional premium to avail of the rider.

What is the difference between low-cost term plans and other term plans? 

The low-cost traditional term plans are reasonably priced policies. Here, the policyholder pays a particular premium across the policy term to keep the policy active. In case of sudden demise of the policyholder, the nominee receives the death benefit. On the other hand, the return of premium policies is the one in which the policyholder can receive the paid premium amount back if he/she survives the policy. However, the premium under this policy is higher than the regular term plans.

10 Cheapest and Best Term Insurance Plans with the Minimum Sum Insured

If you are wondering which is the cheapest term insurance plan in India? Below are some cheapest term insurance plans with basic details:

  1. Max Life Smart Secure Plus
  2. Bajaj Allianz eTouch
  3. Kotak Life Kotak e-Term Plan
  4. HDFC Life Click 2 Protect Super
  5. TATA AIA Sampoorna Raksha Supreme
  6. PNB Metlife Mera Term Plan Plus
  7. Aditya Birla Capital DigiShield Plan
  8. ICICI Prudential iProtect Smart
  9. SBI Life eShield Next
  10. India First e-Term Plus Plan

To beat the competition, there are a number of options available today in the insurance sector, all offering cheap and easily affordable term insurance plans. To help you make an educated choice, we present here the top 10 cheap term life insurance policies that would suit any budget.

Cheapest Term Insurance Plans with Sum Insured, Monthly Premium, and Insurance Company Claim Ratio

Term Insurance Plan Sum Insured Cost of the Plan Claim Settlement Ratio (CSR)
Max Life Smart Secure Plus Rs. 1 crore Rs. 671 per month 99.34%
Bajaj Allianz eTouch Rs. 1 crore Rs. 428 per month 99.02%
Kotak Life Kotak e-Term Plan Rs. 1 crore Rs. 727 per month 98.82%
HDFC Life Click 2 Protect Super Rs. 1 crore Rs. 755 per month 98.66%
TATA AIA Sampoorna Raksha Supreme Rs. 1 crore Rs. 552 per month 98.53%
PNB Metlife Mera Term Plan Plus Rs. 1 crore Rs. 627 per month 98.17%
Aditya Birla Capital DigiShield Plan Rs. 1 crore Rs. 663 per month 98.08%
ICICI Prudential iProtect Smart Rs. 1 crore Rs. 700 per month 97.90%
SBI Life eShield Next Rs. 1 crore Rs. 726 per month 97.05%
India First e-Term Plus Plan Rs. 1 crore Rs. 449 per month 96.92%

Best Term Insurance Plans in India: An Overview of Features and Benefits

1. Max Life Smart Secure Plus Plan

Features of Max Life Smart Secure Plus Plan:

Features  Details 
Minimum age of purchase 18 years
Maximum age of purchase 60 years
Payout option Available
Add-on benefit Available (accidental death, premium waiver, and critical illness
Premium payment option Monthly, quarterly, half-yearly and yearly
Freelook period 30 days
Grace period 15-30 days

Benefits of Max Life Smart Secure Plus Plan:

  • The policy comes with an affordable premium price and is easily available online
  • A policyholder can pay the premium as single pay, limited pay, or regular pay
  • The policy secures the lives of the family members of the insured in the event of adversity with death coverage

2. ICICI Prudential iProtect Smart

Features of ICICI Prudential iProtect Smart:

Features  Details 
Premium Reasonable
Coverage 99 years
Critical illnesses covered 34 diseases
Payout option Available
Premium payment option Monthly, quarterly, half-yearly and yearly
Rider facility Available

Benefits of ICICI Prudential iProtect Smart:

  • This is one of the best term policies that can be purchased online in a hassle-free manner
  • The term plan covers the insured against death, disability as well as terminal illness
  • Non-tobacco users can avoid special premium rates
  • A policyholder can pay the premium as single pay, limited pay, or regular pay
  • Payout benefits available under this plan are monthly pay, lump sum pay, or a combination

3. SBI Life eShield Next

Features of SBI Life eShield Next:

Features  Details 
Minimum age of purchase 18 years
Maximum age of purchase 60 years
Maximum maturity age 65 years
Insurance options available 4 types of insurance options available
Payout available Regular monthly payment or lump sum pay

 Benefits of SBI Life eShield Next: 

  • The plan offers comprehensive coverage at cost-effective premium rates
  • The plan offers three separate coverage options
  • Payout benefits available under this plan are monthly pay, lump sum pay, or a combination
  • The plan is available to be customized as per the death benefit or better half benefit option

4. HDFC Life Click 2 Protect Super

Features of HDFC Life Click 2 Protect Super:

 Features  Details 
Payout option Lump sum and monthly pay options are available
Rider facility Available (Accidental rider)
Coverage increase option Available on important life milestones like marriage and childbirth

 Benefits of HDFC Life Click 2 Protect Super:

  • The policy can be purchased easily online at a reasonable rate of premium
  • The plan comes with a waiver of premium benefits against critical illness, disability (total and partial)
  • There are three different variants to choose from

5. Bajaj Allianz eTouch

Features of Bajaj Allianz eTouch:

Features  Details 
Minimum age of purchase 18 years
Maximum age of purchase 65 years
Maturity age 70 years
Payout option Available (two options)
Freelook period 15 days

 Benefits of Bajaj Allianz eTouch:

  • The plan covers death and terminal illness as well as total permanent disability
  • The plan offers the flexibility of payment to the insured
  • The term plan also comes with early exit value and tax benefits

How to Buy the Best Term Insurance Plan on a Budget?

When it comes to securing the future of your loved ones, there’s absolutely no compromise. Yes, you do want to keep things within budget but you’d also want the best, right? This is why we share here some of the top things to bear in mind when buying term insurance on a budget so that you get the cheapest but also the best policy in hand.

  1. Make sure that the premium payable is the lowest in that category. This would require some research from you. Look up other term insurance plans offered by all other companies in this segment, compare and review the premium rate and prices of all, and then make an informed decision. When you want to buy cheap, the rate of premium should ideally be the lowest so that it doesn’t hurt paying regularly.
  2. Ensure that the plan comes with the add-on riders option. This would help extend the coverage of your term insurance policy and also save you a considerable amount in the future spending extra on buying additional policies to cover your needs as they grow. For instance, you may feel the need to buy critical illness health cover for you and your family as you age. However, instead of spending extra bucks on purchasing that cover separately, it’d be wiser (and also cheaper) to get an add-on rider attached to your base policy at just some extra premium.
  3. Make sure that the plan provides coverage to your spouse as well. After all, this is the primary goal of buying term insurance in the first place. You wouldn’t want your partner to feel lost in your absence in the future. Ensuring that there is sufficient coverage provided in the policy for your spouse and that the death benefit would be paid out to him/her after your death is really important when buying term insurance.

Read More: Types of Whole Life Insurance Policy and Their Advantages

Features of low-cost Term Plans

  • These plans can be canceled within the free-look period
  • Some of these policies may return the premium in case of early termination of the policy
  • As per the policyholder’s requirement, they can choose to stay covered for life by paying regular premiums
  • Most of the term plans are available at a reasonable premium
  • You can choose to opt for a regular term plan or a return of premium policy

What are the Benefits of Buying the Best Term Insurance Plan in India?

Term insurance is a cost-effective insurance policy that can be availed of to secure the family members of the insured financially in the event of an unfortunate demise of the insured. A term plan comes with numerous benefits as mentioned below:

  1. Low premium price – The best and most important benefit of term insurance is that it is cost-effective and comes with a lower premium price. So, a term plan is an investment that allows the insured to avail of higher coverage at a lower rate of interest.
  2. Flexible payout option – Depending on your need and the policy terms and conditions, a policyholder can select the payout option of the coverage amount. So, in case of the sudden death of the policyholder, the nominee can receive the payout as mentioned at the time of policy buying.
  3. Lifetime coverage – Term plans also come with lifetime coverage to cover your family in the long run.
  4. Add-on riders – Term insurance comes with several riders in India. You may choose any of the available riders as per your requirements.
  5. Available online as well as offline – Term insurance plans are available online as well as offline. However, some insurers may offer special discounts for purchasing term plans online.
  6. Tax benefits – Policyholders of term insurance plans can avail of the benefits of tax deductions, which is another significant benefit of term insurance.

Who Should Purchase a Reasonably Priced Term Insurance Plan?

Cheap-term insurance plans are popular types of plans available in India. These plans are best suitable for people who want pure protection at a low price to cover their families monetarily after they are gone. So, if the policyholder dies during the term of the plan, the nominee can receive the sum insured. However, no benefit is received by the policyholder in case he/she outlives the plan. Being low in premium and high in coverage, these plans are perfect for many people looking for low-cost investment options to secure their families.

People who can buy low-cost term plans include:

  • Young people at the start of their career
  • Newly married couples
  • People working under risky conditions
  • Single parents
  • Start-up owners

Documents needed to Apply for a Low-cost Term Plan

Here are the documents required:

  • Income proof
  • Identity proof
  • Medical report (if the applicant is above 45 years)
  • Address proof

Factors that Determine Premium of Term Life Insurance Policies

  • Age of policyholder – Buying a term plan at a young age will allow the insured to avail of it at a low and attractive price as compared to buying it at an old age
  • Health condition of the policyholder – Health conditions and PEDs like BP, Sugar, weight, and cholesterol also influence the premium of a term plan
  • Occupation of policyholder – People working in risky working conditions and hazardous surroundings might have to pay more premiums than others for a term plan. Employees with low-risk jobs can, on the other hand, avail of low premiums
  • Hobbies and lifestyle of policyholders – Consumption of alcohol, smoking, and history of using drugs can also increase your term plan premium. If you are involved in risky hobbies like motor racing and skydiving, you may have to pay more premium
  • Sum insured and policy term of the plan chosen – The policy term and the sum insured chosen are other important factors that determine your term insurance rates

In a Nutshell

Buying term insurance for your loved ones is one of the wisest decisions to make in this lifetime. It is important to secure their future while you still have your present. However, since you’d be required to pay the premium on the policy regularly for a lifetime in order to enjoy the benefits of the plan (death payout) when required, it helps to take care of the cost factor too. This is why there are a number of cheap life insurance plan options available today. However, it’s important to do your own research before buying them. Also, go through the policy document carefully before buying any insurance plan from any insurance company.

Also Read:

Found this post informational?

Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.

Try Mahindra PayBima Calculators –

Also, Check out the Mahindra PayBima Guide and Glossary section –

Other Term Insurance Products

Oct 19, 2022
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back