Introduction
Are you looking for the best term insurance plan in India under ₹500 per month? You’re not alone. With rising awareness about financial protection, many Indians are now buying affordable term life insurance plans online. But finding a high coverage plan at a low premium can be confusing.
In this article, we will compare the top 5 best term insurance plans under ₹500/month, their features, claim settlement ratios, benefits, and why you should invest in one today.
Why Choose Term Insurance?
- High Sum Assured at Low Premium – Get ₹1 Crore cover for less than ₹500/month.
- Tax Benefits – Under Section 80C and 10(10D).
- Financial Security – Protect your family against income loss.
- Optional Riders – Critical illness, accidental death benefits.
Eligibility for ₹500/month Plans
Most insurers offer affordable plans for:
- Age: 18 to 40 years
- Non-smokers
- Healthy individuals
- Online purchase discounts available
Top 5 Term Insurance Plans Under ₹500/Month in India (2025)
1. ICICI Prudential iProtect Smart
- Premium: Starts from ₹480/month
- Coverage: ₹1 Crore for 30 years
- Claim Settlement Ratio: 97.90%
- Key Features:
- Multiple payout options
- Critical illness cover available
- Tax benefits under 80C & 10(10D)
2. HDFC Life Click 2 Protect Life
- Premium: ₹490/month (approx.)
- Coverage: ₹1 Crore, up to 40 years of cover
- Claim Settlement Ratio: 98.01%
- Benefits:
- Whole life option up to 99 years
- Income + Lump Sum payout
- Accidental death rider
3. Max Life Smart Secure Plus
- Premium: ₹485/month
- Coverage: ₹1 Crore, flexible options
- Claim Settlement Ratio: 99.51%
- Highlights:
- Terminal illness benefit
- Premium back option
- Additional cover for accidents
4. Tata AIA Sampoorna Raksha Supreme
- Premium: ₹495/month
- Coverage: ₹1 Crore
- Claim Ratio: 99.01%
- Advantages:
- 3 benefit options (Life, Extra Life, Income)
- Policy term up to 85 years
- Top-up sum insured feature
5. Bajaj Allianz Life Smart Protect Goal
- Premium: ₹470/month
- Coverage: ₹1 Crore
- Claim Ratio: 98.48%
- Special Features:
- Critical illness rider
- Child education benefit
- Waiver of premium on disability
Comparison Table: Best Term Insurance Under ₹500
| Company | Plan Name | Monthly Premium | Coverage | Claim Ratio |
|---|---|---|---|---|
| ICICI Prudential | iProtect Smart | ₹480 | ₹1 Cr | 97.90% |
| HDFC Life | Click 2 Protect Life | ₹490 | ₹1 Cr | 98.01% |
| Max Life | Smart Secure Plus | ₹485 | ₹1 Cr | 99.51% |
| Tata AIA | Sampoorna Raksha | ₹495 | ₹1 Cr | 99.01% |
| Bajaj Allianz | Smart Protect Goal | ₹470 | ₹1 Cr | 98.48% |
How to Buy Online?
- Compare plans on Policybazaar, Coverfox, or directly on insurer’s website.
- Enter details: Age, income, lifestyle.
- Select add-ons like Critical Illness, Accidental Death Rider.
- Pay premium online, policy issued instantly.
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FAQs
Q1. Which is the best term insurance plan under ₹500?
A: ICICI iProtect Smart and HDFC Click 2 Protect Life are top choices.
Q2. Can I get ₹1 Crore coverage under ₹500?
A: Yes, if you are under 35 years, healthy, and a non-smoker.
Q3. Do these plans cover COVID-19?
A: Yes, all term insurance plans in India cover COVID-19 deaths.
Final Verdict
If you are under 40, you can easily buy ₹1 Crore term insurance at less than ₹500 per month. Among all, Max Life and HDFC Life offer excellent claim settlement and features, while ICICI iProtect Smart provides flexibility.