What are the Best Affordable Term Life Insurance Plans in 2025?

Term life insurance is a fundamental financial tool designed to provide financial protection to your family in the unfortunate event of the policyholder's demise. It offers a predetermined cover amount to your beneficiaries and ensures that your loved ones can maintain their current standard of living. You can use it to cover daily expenses and meet long-term financial goals such as education and loan repayments without worrying about finances significantly.

The significance of a term life insurance plan lies in its ability to offer substantial coverage at relatively affordable premiums. This makes it an affordable yet comprehensive option if you’re seeking to safeguard your family's financial future. But the question remains – Are term insurance plans truly affordable?

Friendly reminder: It’s easy to get lost comparing policies and premiums. Instead of spending hours on it, why not get personalised insurance advice from Ditto? We offer free consultations with zero spam! Just 30 minutes to clarify all your doubts. Book a call now!

Best Affordable Term Insurance Plans in 2025

Are term insurance plans affordable?

Term insurance plans are generally considered the most cost-effective form of life insurance. Unlike whole-life or endowment policies, term plans provide pure risk coverage without an investment component, which keeps the premiums lower. For instance, if you’re a healthy individual in your early 20s, you might get a ₹1 crore life cover for a premium as low as ₹10-15k per annum. This allows you to obtain high cover amounts that can adequately support your family's financial needs in your absence well into the future. 

However, it's important to note that premiums can vary based on factors such as age, health status, lifestyle habits, and the chosen policy term. Therefore, while term insurance is generally affordable, individual circumstances will influence the exact premium rates.

If you want to find out the exact premium rates for yourself, you can always feel free to book a call or text an advisor at Ditto. We give you honest insurance advice with no spam.

What are the top affordable term-life insurance plans in India for 2025?

1. Axis Max Life Insurance Smart Term Plan Plus: The Axis Max Life Smart Term Plan Plus is a flexible term insurance plan with seven options to choose from. For most people, the "Regular (Level Cover)" and "Smart Cover" variants stand out. The Regular option is a simple, no-frills term plan, while the Smart Cover gives you 1.5X coverage for the first 15 years—perfect if you want extra protection early on. It also includes all the must-have add-ons you’d expect from a great term plan, plus some thoughtful perks for women, like Lifeline Plus and Maternity Cover. Overall, it’s a well-rounded, customisable plan that can fit a variety of needs.
2. Bajaj Allianz Life Insurance Company E-Touch II: The e-Touch plan from Bajaj Allianz Life Insurance is one of the most popular term plans from this stable. The insurer offers the following features in this plan:

• Extremely affordable premiums, especially for women and non-smokers (one of the lowest in the industry),
• Extensive coverage options starting from 50Lakhs and attractive discounts for salaried folks 
• 3 variants - Life Shield, Life Shield Plus, and Life Shield Return of Premium
• Various combinations of features and riders - Critical Illness, Terminal illness, Waiver of Premium, Accidental Death Benefit Rider, and Return of Premiums - based on your chosen variant.

3. TATA AIA Sampoorna Raksha Promise: If you are looking for a highly customisable term policy, priced reasonably well, the TATA AIA Sampoorna Raksha Promise plan can turn out to be a great option. The Accidental Total and Permanent Disability Rider and Hospicare benefits are unique to the policy. Moreover, this plan provides substantial coverage even for individuals with lower annual incomes. The only consideration is the absence of a zero-cost option in its Non-Return of Premium variant, which is not a major deal breaker. Overall, a good pick.
4. ICICI Prudential iProtect Smart: ICICI Prudential iProtect Smart is a competitively priced term insurance policy for most profiles, providing attractive benefits, including a life stage benefit that allows you to increase your coverage upon reaching significant life milestones. Following recent changes in IRDAI regulations, it is one of the few plans in the market that offers comprehensive critical illness coverage for an extended period. Additionally, it features appealing first-year discounts for salaried individuals.

How do you choose the best affordable term insurance plans?

Choosing the right term insurance plan is quite a herculean task. You need to sift through various policy papers to ensure that the policy aligns with your financial goals and provides comprehensive protection for your family. But not everyone has the energy to do that. So, we created a checklist for you to go through with some of the most important parts. Here are some factors you need to consider:

1. Cover Amount: It's important not to compromise on the cover amount just for the sake of lower premiums. The coverage should be sufficient to meet your family's future financial requirements, including daily living expenses, outstanding debts, children's education, and other long-term goals. 
   A common rule of thumb is to opt for a cover amount that is at least 10 to 15 times your annual income, but we feel this is not accurate. Here’s a term insurance calculator that will help you get a more accurate estimate of how much cover amount you need.
2. Policy Tenure: The duration of the policy should align with your financial obligations and life goals. Ideally, the term should cover the period until your primary financial responsibilities – such as paying off a home loan or funding your children's education – are fulfilled. Choosing an appropriate tenure ensures that your loved ones remain protected during the most important years, AND your premium remains relatively low.
3. Insurer's Reliability: Assessing the insurer's credibility is another important task. Look for companies with a high Claim Settlement Ratio (CSR). This indicates the percentage of claims the insurer settled against the total number of claims they received in a given year. A higher CSR indicated that the insurer is reliable in honouring claims. Apart from this, you should consider the company's complaint volume to ensure a hassle-free experience. Naturally, the lower the complaint volume, the better. Here are some other factors you can check to assess whether an insurer is good.
4. Premium Rates: While affordability is important, opting for the cheapest policy may not always be the best option, as it can result in inadequate coverage or may even exclude certain benefits. We advise you to compare premiums across different insurers and consider the policy’s features, benefits and drawbacks to find an affordable term insurance plan that doesn't compromise the coverage you need.
5. Riders: After choosing a good term insurance policy, you can further enhance your policy with riders that provide additional protection. A very common and useful rider is the Critical Illness Cover, which lets you claim a lump-sum amount upon diagnosis of certain critical illnesses such as a heart attack or cancer. Another useful rider is the Accidental Death Benefit rider, which provides an extra payout in case of death due to an accident. While these add-ons may increase the premium, they offer valuable benefits that we feel are worth the additional amount.

Tips to ensure that your term insurance plan stays affordable

Here are some points you could follow to keep your term insurance plan more affordable:

1. Purchase Early: Buying a term insurance policy at a younger age can lock in lower premium rates, as premiums usually increase with age and the onset of preexisting health conditions. Purchasing your term insurance plan not only ensures it is affordable but also provides financial protection during the early stages of your life when financial responsibilities begin to accumulate.
2. Maintain a Healthy Lifestyle: Insurers often offer better premium rates to non-smokers, drinkers, and people who maintain healthy habits. Regular exercise, a balanced diet, and avoiding tobacco can lead to more favourable underwriting outcomes, which can result in lower premiums.
3. Opt for at least Annual Premium Payments: Choosing to pay premiums annually rather than monthly or quarterly can be more affordable, as many insurers offer discounts for annual payments. This can reduce the overall cost of the policy and simplify payments for you by consolidating it into a single annual transaction.
4. Compare Policies Online: Utilize online platforms, such as Ditto Insurance’s free Policy Comparison Tool, to compare various term insurance plans. These tools allow you to assess different policies based on coverage, premiums, riders, and insurer reliability, helping you make an informed decision that balances affordability with comprehensive coverage.

Why Talk to Ditto for Your Health Insurance?

At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Tanmay below love us:

✅No-Spam & No Salesmen

✅Rated 4.9/5 on Google Reviews by 10,000+ happy customers

✅Backed by Zerodha

✅100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call now!

Conclusion

Choosing a term life insurance plan that balances both affordability and comprehensive coverage is essential to ensure your family's financial stability in your absence. In order to select a good term life insurance plan, you should go through factors such as the cover amount, policy tenure, insurer reliability, and, most importantly, the premium rates. Remember, the objective is not merely to find the cheapest plan but to secure adequate coverage that meets your family's future financial needs.